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2021-03-31-accounts

THE EDUCATION ENDOWMENT FOUNDATION

(A company limited by guarantee)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED

31 MARCH 2021

Registered Charity Number: 1142111 Registered Company Number: 07587909 (England and Wales)

THE EDUCATION ENDOWMENT FOUNDATION

CONTENTS

Page
Legal and Administrative Information 1
Trustees' Report 3 - 19
Independent Auditors' Report 20 - 23
Statement of Financial Activities 24
Balance Sheet 25
Statement of Cash Flows 26
Notes to the Financial Statements 27 - 39

THE EDUCATION ENDOWMENT FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Sir Peter Lampl, Chairman () David Hall CBE, Vice Chairman() Naomi Eisenstadt Louis Elson (*) Sir Peter Gershon Lucy Heller

Sir Kevan Collins (appointed 3 December 2020, resigned 25 February 2021 and re-appointed 11 October 2021) Nat Sloane CBE (*)

Hanneke Smits

Company Registration Number: 07587909 Charity Registration Number: 1142111

Registered Office

5th Floor Millbank Tower 21-24 Millbank London SW1P 4QP

Auditor

Moore Kingston Smith LLP Devonshire House 60 Goswell Road London EC1M 7AD

Bankers

CAF Bank Limited 25 Kings Hill Ave Kings Hill West Malling Kent ME19 4TA

Solicitors

Freshfields Bruckhaus Deringer 65 Fleet Street London EC4Y 1HS

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TRUSTEES’ REPORT (INCLUDING DIRECTOR’S REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2021

Solicitors (continued)

Macfarlanes 20 Cursitor Street London EC4A 1LT

Key Management Personnel

Prof. Becky Francis (Chief Executive) Stephen Fraser (Deputy Chief Executive until June 2021) Emily Yeomans (Director of Research since July 2021) Chris Paterson (Director of Impact since September 2021) Anne-Laure Bedouet (Director of Finance and Operations) Stephen Tall (Development and Communications Director until August 2021)

EEF Team

Please refer to the EEF website at https://educationendowmentfoundation.org.uk/about-us/our-people

Education Advisory Board

Sir Michael Wilshaw (Chairman) Kate Atkins Peter Goldsbrough Sir Mark Grundy David Hall CBE Hang Ho Russell Hobby Prof Li Wei Prof Steve Higgins Sir Frank Mcloughlin CBE Ann Mroz MBE Professor Dame Alison Peacock

Investment advisors

Goldman Sachs Asset Management International Christchurch Court 10-15 Newgate Street London EC1A 7HD

Bank of New York Mellon 48th Floor, One Canada Square London E14 5AL

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THE EDUCATION ENDOWMENT FOUNDATION

TRUSTEES’ REPORT (INCLUDING DIRECTOR’S REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2021

The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of The Education Endowment Foundation (the charitable company) for the year ended 31 March 2021. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Structure, governance and management

Constitution

The Education Endowment Foundation ('EEF') is a registered charity (number 1142111) whose principal object is the advancement of education for the benefit of the public, in particular, but not exclusively, by a) making grants to schools, local authorities, charities, social enterprises and other voluntary and community sector organisations to fund projects which seek to address low educational attainment; and b) supporting and disseminating the results of research into ways to mitigate the factors that cause or contribute to, and successful strategies for dealing with, low educational attainment. Within its charitable objects, the EEF particularly focuses on improving outcomes for disadvantaged children and young people. The EEF was set up by The Sutton Trust as the lead charity in partnership with Impetus Trust (now Impetus) and was initially funded by a £125m grant from The Department for Education.

The organisation is a company limited by guarantee, incorporated on 1 April 2011 and registered as a charity on 25 May 2011. The charitable company is controlled by its Memorandum and Articles of Association, dated 31 May 2011, and constitutes a company limited by guarantee, as defined by the Companies Act 2006.

Appointment of Trustees

The appointment of Trustees is governed by the governing document of the charity. EEF Trustees are appointed for a term not exceeding five years. Any Trustee may be re-appointed on the expiry of his/her initial or any subsequent term of office. The Sponsors’ Agreement between The Sutton Trust and Impetus - The Private Equity Foundation (now Impetus) specifies that four of the seven Trustees are to be nominated by Impetus and five to be nominated by The Sutton Trust. Impetus nominated Louis Elson, Lucy Heller, Nat Sloane and Hanneke Smits. The Sutton Trust nominated Sir Peter Lampl, Naomi Eisenstadt, Sir Peter Gershon, David Hall, and Sir Kevan Collins (appointed 3 December 2020, resigned 25 February 2021 and re-appointed 11 October 2021). The members of the EEF have duly appointed these individuals as the EEF Trustees. The Sponsors’ Agreement provides that the Chairman of the EEF is Sir Peter Lampl, who is also the Chairman of The Sutton Trust.

Development since year end:

In October 2021, the Sutton Trust, as sole member, agreed with the Board of Trustees of the EEF that EEF would be permitted full control over its governance. As a result, it was agreed that the Trustees of EEF have the authority to appoint EEF's Trustees, and that the Member's right to appoint Trustees would cease. In addition, The Sutton Trust has stepped down as the sole Member of EEF, and EEF's Trustees are the charity's only Members going forward. The articles of EEF were amended accordingly on 22 October 2021. The Sponsors’ agreement between The Sutton Trust and Impetus – The Private Equity Foundation has been terminated and neither organisation have any rights in respect of the governance of EEF. It is the intention of the Founder Trustees that they shall resign on a staggered basis, that new trustees be appointed for a term not exceeding four years and that trustees may be reappointed for a maximum of one additional term.

Organisational structure and how decisions are made

The EEF Board has the ultimate responsibility for directing the affairs of the EEF, ensuring that it is financially sound, well run, and delivering the charitable outcomes for which it has been set up. The Board comprises the directors of the company who are also the charity Trustees.

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The EEF Trustees meet at least four times a year to discuss overall strategy and to determine how best to direct the EEF’s resources to meet its objectives. The EEF has a Chief Executive, who reports to the Chairman and other Trustees, and is supported by an Executive team. The Chief Executive and Executive team oversee a team of full and part time posts as referred to on the Legal and Administrative pages. The Trustees have also established three committees to support the effective governance of the EEF’s operations:

These committees comprise Trustees of the EEF, with relevant members of the executive team attending each committee. The committees may also co-opt expert members beyond the EEF Trustees from time to time to supplement the expertise of the committees. At present, Robert Coe Director of Research and Evaluation at Evidence Based Education sits on the EEF Grants Committee. The Department for Education also normally have a representative on this committee. Rory Gribbell, previously Schools Policy Adviser at the Department for Education, has stepped down from this position and the EEF is seeking a replacement with DfE. Richard Lamplough, partner with Lancaster Investment sits on the Finance and Fundraising Committee.

The EEF also has an Evaluation Advisory Group (EAG), which offers the executive team advice and guidance on research and evaluation methodologies.

Induction and training of Trustees

Trustees are made aware of their legal obligations under Charity Law and Company Law, the decision making processes at the EEF and its strategic aims. They are also provided with relevant documentation, including a budget, planned grants expenditure, a current list of research and practical projects and copies of recent publications and press releases. New trustees have an induction session with EEF team members and are invited to visit projects.

Trustees and members of the executive team are encouraged to attend training events where these will assist with their role.

Relationships with wider interests and related parties

Transactions with related parties are disclosed in note 25 to the financial statements.

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Objectives and Activities

Objectives

The object of the EEF is the advancement of education for the benefit of the public, in particular, but not exclusively, by:

The EEF fulfils its charitable objectives by undertaking work to raise the attainment of 3-18 year-olds, particularly those facing disadvantage; develop their essential life skills; and prepare young people for the world of work and further study. The EEF aims to have a direct impact on those young people involved in its projects and also an indirect benefit by building the evidence of ‘what works’ and influencing the decisions of schools, policymakers and others.

Grant making policy

The EEF’s grant-making principally focuses on supporting and evaluating projects that are likely to improve the educational outcomes of young people, particularly pupils eligible for free school meals in the most challenging schools. The EEF's aim is to fund, develop and evaluate cost effective and scalable projects that have a measurable positive impact on educational attainment or related outcomes, as well as promoting the use of evidence in the decision making of schools, early years settings, post-16 settings, and by other commissioners and policymakers. All EEF-funded projects are rigorously evaluated by independent experts in educational research, and the charity has to date commissioned 212 projects, 154 of which use randomised controlled trials (RCTs), involving over 60% of English schools. The EEF also aims to influence the decisionmaking and spending of the wider education sector, for example by scaling up and building the delivery capacity of projects which are determined to be effective and replicable, and by communicating and disseminating what works, through various channels such as the EEF’s Research School Network, campaigns and policy work.

The EEF usually runs two grants rounds per school year. Applications are submitted online via the EEF's website and reviewed by the team of Programmes Managers, drawing on external advice as needed. The most promising applications are developed by a Programmes Manager in collaboration with the applicant, before being put forward to the Grants Committee in a two-stage process. The Trustees make the final decision on funding the applications recommended by the Grants Committee over £1m and on scale up grants. Following approval, all grant awards made are subject to: i) the recipient entering into a written, legally binding agreement, and ii) a project review at each milestone as set out in the grant agreement. Under the terms of its agreements with grant recipients, the EEF can withdraw its future funding commitment for a number of specified reasons, including failure to meet agreed milestones. This process was significantly impacted by the partial school closures due to the COVID-19 pandemic. More detail on grant making, evaluation and dissemination activities in the period under review can be found under the Strategic report section.

Main activities undertaken to further the charity's purposes for the public benefit

The EEF works for the public benefit by addressing educational disadvantage, by granting funds to projects aimed at alleviating such disadvantage, by finding out what works to increase attainment and other outcomes, and by disseminating this evidence. All EEF resources are provided to schools free of charge. The Trustees and staff are mindful of the Charity Commission's guidance on public benefit when planning future activities and are confident that the Charity’s plans meet these requirements.

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STRATEGIC REPORT

Going concern

Despite COVID-19, after making appropriate enquiries, the Trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. For this reason the Trustees continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies section of the financial statements.

Activities, achievements and performance

The EEF’s activities have been significantly impacted by COVID-19 and the associated school closures. As schools closed, the EEF focused on catch up activities with funding from the Department for Education for the National Tutoring Programme (NTP) and the scale up of Nuffield Early Language Intervention (NELI), on recalibrating its existing projects to ensure programmes were adapted to school closures, and on supporting schools by publishing evidence-based resources for use in this extraordinary context. The large catch-up programmes lead to recruitment of a new team in Summer 2020 with the onboarding of 20 new roles. Following this, the EEF underwent a light-touch restructure with the appointment of new Director roles (see Pay policy for senior staff in this report). The results for the year are set out on page 24.

Grant making, evaluation and dissemination activities

Last year the EEF set itself a number of objectives aligned to the three main aspects of its work: evidence generation (grants and evaluation), synthesis (toolkit and guidance reports) and mobilisation / scale up (including research schools and campaigns).

COVID-19 impact on EEF’s activities in the year and response by EEF

At the very end of the last financial year as a result of the COVID-19 crisis, schools closed for most pupils. The EEF continued its role of evidence synthesis, generation and mobilisation in this new context.

The EEF conducted a rapid evidence assessment to examine the potential impact of school closures on the attainment gap. The review found that school closures were likely to reverse progress made to narrow the gap in the last decade, supporting effective remote learning would mitigate the extent to which the gap widens and that sustained support would be needed to help disadvantaged pupils to catch up.

The EEF supported the Department’s policy response by providing advice on the promising approaches to support children to catch-up on their return to school, most notably related to tutoring with the National Tutoring Programme (NTP) and with the scale up of the Nuffield Early Language Intervention (NELI).

In response to school closures, the EEF conducted a rapid evidence assessment on the best practice in remote learning. An internal team at the EEF reviewed the evidence from a wide range of remote learning approaches and summarised them in an accessible report and poster for school leaders. This report was widely used and accessed over 20,000 times.

The Programmes and Evaluation teams have been working with all funded projects to develop contingency plans in response to school closures. For example, some projects needed to delay recruitment for a year, others needed to extend delivery or testing. Detailed plans have been submitted to the Grants Committee in April and June, and changes in funding have been approved. The vast majority of projects have been able to continue with some changes, and we expect them to produce useful findings. A small number of projects have

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been cancelled early leading to savings. The total change in budgets was £1.1m, which was lower than originally anticipated.

The EEF supported the Department’s policy response by providing advice on the promising approaches to support children to catch-up on their return to school, most notably related to tutoring with the National Tutoring Programme (NTP) and with the scale up of the Nuffield Early Language Intervention (NELI).

As part of supporting schools to respond to the partial closures and lockdown, the EEF produced a range of resources for schools. These included a set of resources designed to be used by schools in helping parents/carers to support home learning, drawing on the evidence-based recommendations across a number of guidance reports. These have proved popular with schools with around 60,000 views and approaches to the use by other organisations and other countries (e.g. Jordan). In addition the EEF have supported schools with their planning through a “Schools planning guide” and update which helped school leaders navigate the evidence and put it in practice – with more than 30,000 downloads in the academic year.

The EEF was able to support the Research Schools Network, and other organisations, in adapting their training and professional development approaches to remote delivery in a number of ways, including the Rapid Evidence Assessment on Remote Professional Development published in Sept 2020.

EVIDENCE GENERATION

To continue to make grants to support the development and evaluation of a wide range of approaches to raising the attainment of 3-18 year-olds, particularly those facing disadvantage; developing their essential life skills; and preparing young people for the world of work and further study.

We have delayed general round funding due to the impact of school closures, however we have continued to fund re-grants and research into the impact of school closures. The research continued including:

Details of grants expenditure are included in Note 9 of these financial statements.

We also have an annual report (different from the Trustees’ annual report), which gives much more of a - - flavour of projects and activities - see: https://educationendowmentfoundation.org.uk/about us/annual reports

To continue to publish robust evaluation reports of funded projects

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The EEF has continued its commitment to publishing evaluation reports on all completed projects and 18 evaluation reports were published in the period covered by this report.

The team at Durham University continues to analyse the data archive, to replicate results, inform methodological improvements and track the impact of EEF-funded projects longitudinally. The EEF is now hosting the data archive in partnership with the Office for National Statistics. This will enable wider access to the archive for the purpose of research with public benefit.

EVIDENCE SYNTHESIS

To develop its core resources available on the website, including the Teaching and Learning Toolkit and Guidance Reports

This year the EEF has entered the final year of the project to update the EEF’s Teaching and Learning Toolkit, which recent polling showed was being used by 70% of secondary headteachers. The team of researchers at Durham University have been analysing the data from the individual academic studies included in the original Toolkit to provide more information in an updated version of the EEF toolkit, which will launch in 2021. The website development for the new Toolkit has begun, which will display outcomes by subject and by age where the evidence is sufficiently robust to do so.

The EEF agreed future development work on the Teaching and Learning Toolkit with the team at Durham. The next contract includes development to make the resource sustainable into the future, through automating the update process. There is a commitment from the Durham team to support the building of internal evidence synthesis capacity at the EEF to ensure that evidence synthesis work can be completed cost effectively by a small team based at the EEF.

The EEF also commissioned and published a number of evidence synthesis products:

EVIDENCE MOBILISATION AND SCALE-UP

To focus more resources on scaling up and disseminating successful approaches through a variety of models

The EEF strategy includes a number of models for both mobilising evidence and scaling up its work. The EEF has continued to pursue a range of approaches this year, aiming to widen the engagement and direct impact of the work, and add to the evidence base about disseminate best bets.

A key aspect of this work is the regional strategy agreed by the board. This was somewhat affected by the pandemic, in terms of the capacity of schools and partners to engage with the EEF’s work, despite continued enthusiasm and appetite for doing so. In Autumn the board decided to extend the strategy into a fourth year (within the same financial envelope) and so this will now run until August 2023.

In light of the pandemic context there was significant work in supporting the Research Schools Network to change the delivery model away from in-person training and professional development to more remote and occasionally blended delivery- whilst still being informed by the evidence. This helped enable continued engagement and development of new partnerships between EEF and a range of organisations and schools to

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work together to support the use of evidence in tackling joint priorities. This means that the EEF is on course to support training to be delivered to over 1000 schools by the end of the second year of the strategy (summer 2021). The regional strategy is particularly aimed at reaching and supporting schools with higher than average numbers of disadvantaged pupils and lower than average attainment for those pupils, and following the progress in this year at least 40% of those 2,400 schools are expected to be engaged by the end of the academic year. There was a significant increase in interest for future partnerships as the 6 Regional Delivery Leads have continued to broker new relationships.

The EEF’s network of 40 Research Schools remains an important component of the strategy and development and support for the network remains strong. Increasingly their capacity and capability is recognised by others in the system and it enabled the EEF to provide support for a number of DfE initiatives by working closely with the Research Schools, for example, the early roll out of Teaching School Hubs and the EdTech Demonstrator programme.

Content specialists who were recruited to support the regional strategy have been invaluable through the year at providing the capacity for EEF to be responsive to school need in responding to partial school closures and other pandemic related challenges. Having close involvement of practitioners in the development of the EEF’s communications, contents and school facing resources has been had a significant positive impact on ensuring messaging in a challenging year was adapted to schools’ context. Another cohort of content specialists have been recruited to support the work from September 21. The integration of practice and practitioner perspectives into the EEF’s work over the coming year will continue to be developed.

Much of the development and publication of practitioner focused guidance has tackled the pandemic response, however, significant development and preparatory work on the future guidance reports is under way to publish in the next year including Feedback and Professional Development.

The North East Primary Literacy Campaign, funded in partnership with Northern Rock Foundation, ran into its fifth year in 2020/21. During the year the work continued on the campaign’s key elements:

To develop the EEF’s digital presence

The EEF’s key audiences are the leaders and key decision-makers in schools, early years and post-16 settings, together with classroom teachers and practitioners, as well as other influencers, such as policy-makers, governors and parents. The EEF’s digital strategy aims to improve the reach and engagement of its work – in particular, evidence-based resources with clear and actionable recommendations – to these groups.

In the past 12 months, the EEF website has seen a 38% increase in users, to c.1,3M. The EEF email newsletter has over 38,000 subscribers, an increase of 17% on last year. On social media, the EEF Twitter following has increased to 83,000 (up 36%), Facebook ‘likes’ are 28,000 (up 11%), and EEF LinkedIn following has significantly increased to 37,000 (up 63%). The design of the EEF website has recently been refreshed, ensuring it is attractive, accessible and engaging, and with all content up to date.

To scale up tutoring with the National Tutoring Programme as part of the recovery effort

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The EEF’s recommendation of tutoring as the catch-up strategy with the strongest supporting evidence was accepted by the Department for Education and the EEF worked closely with the Sutton Trust, Impetus, Nesta and DfE officials to develop a proposal to increase the availability of tutoring for disadvantaged children. On 19th June 2020, the Secretary of State for Education and Prime Minister announced £350 million to create “a National Tutoring Programme, to increase access to high-quality tuition for the most disadvantaged young people”.

The National Tutoring Programme was designed to comprise two pillars:

The pillars build on an evidence base the EEF has helped develop over 10 years, including through evaluations of the Tutor Trust and Graduate Coaches Programme. The DfE invited the EEF to vary its Grant Funding Agreement by £76.2 million to establish the NTP Tuition Partners pillar for one year. This variation was signed at the end of July 2020, establishing that the EEF would be responsible for encouraging high-quality tutoring organisations to apply for funding, awarding grants to tutoring providers, subsidising provision of tutoring to schools, working with approved tutoring organisations to expand provision and conducting monitoring and evaluation of tutoring. Subsequently the value was increased by a further £4m (in late October 2020) to provide the EEF team with head room when setting up contracts with Tuition Partners. A new sub-committee was formed to ensure effective governance of this additional area of activity.

The delivery of the programme started in schools in November 2020 after a first phase of preparation and selection of 33 approved Tuition Partners to provide subsidised tutoring to 250,000 pupils in the academic year 2020/21. Take up and interest from schools was strong from the launch, but delivery was significantly disrupted by the partial school closures in January, February and March 2021. Tuition Partners continued delivery through lockdown including by offering at home online delivery. Following the reopening of schools to all pupils on 8 March, school demand for face-to-face tutoring increased sharply and by end March 2021, 86,280 pupils had received some tuition and 5,326 schools were onboarded. The total income recognised for NTP at end March 2021 was calculated using the number of pupils reached at year end over the total target of 250,000 pupils, or 34.5% of the total £80.2m agreed with the DfE, or £27.7m.

The Department of Education opened a tender for the delivery of Year 2 of the National Tutoring Programme for the 2021/22 academic year. EEF, Sutton Trust, Impetus and Nesta with support from Bain & Company prepared a response to the tender and established the National Tutoring Foundation as at 1 April 2021.

The new National Tutoring Foundation supported by EEF and its partners did not win the tender for Year 2 of delivery, which was awarded by the Department of Education to Randstad. See more detail on page 14.

To scale up the Nuffield Early Language Intervention as part of the recovery effort

The Department for Education announced in August 2020 their funding to work with the EEF to scale up the Nuffield Early Language Intervention (NELI). The Department awarded a significant grant extension (£8m) to the EEF to fund and manage the delivery partners (Oxford University, OxEd and Assessment, OUP, Elklan, Future Learn).

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The Department took the lead on recruitment which concluded at the end of Autumn term 2020 with 6,666 schools registered to receive NELI. This was 39% of all eligible schools which surpassed the original target of 25%. Crucially the targeting during recruitment appears to have been successful as the programme has been taken up more frequently by schools with a higher prevalence of pupils eligible for free school meals (FSM) (see table below). 60% of the schools listed on EEF’s priority school list have registered for NELI. The round of school closures in Jan-March 2021 inevitably and unfortunately impacted delivery of the programme to pupils. However, when pupils fully returned, delivery could commence, and the EEF responded by providing schools with an extended delivery plan to ensure they could complete the full 20-week programme with pupils.

After competitive tender RAND Europe were awarded the grant to evaluate the scale up of NELI with the design amended to take account of the additional round of school closures.

To continue to engage constructively with the Department for Education on its school improvement and social mobility agendas

Over the course of the year, the EEF has supported and encouraged the use of evidence in a number of aspects of the Department for Education’s work. Notably, the EEF has continued to support the development of the Early Career Framework, which creates an entitlement for every Newly Qualified Teacher in England to receive high-quality, evidence-informed mentoring and training.

In addition, the EEF has supported the DfE to improve the quality of training provided to teachers through the development of a new suite of National Professional Qualifications. More broadly during the year, EEF colleagues have participated in a number of Department for Education-led discussions and reviews on topics such as Special Educational Needs, the pupil premium and further education.

The EEF have provided direct support to the pupil premium policy team of the DfE. Collaborating on research into how pupil premium is currently spent and working with the team on guidance around high quality pupil premium spend.

The EEF has continued to be an active participant in the What Works Network.

Fundraising activity

The EEF actively seeks to partner with other funders – whether trusts and foundations, corporates, individuals, charities or public bodies – to help extend the reach of the charity’s work. To date, the EEF has successfully developed partnerships with 43 organisations, which have contributed a total of c.£36.8m funding towards EEF-approved programmes. The EEF’s funding partnerships totalled £2.7 million in this financial year and fell into one of three categories:

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Direct donations and pro bono donations are both recorded in the financial statements, whereas shared funding is not; this goes directly to the EEF-funded programme rather than to the EEF itself.

Grants from the Department for Education and contributions to projects from schools are all excluded from these figures.

The Trustees acknowledge their grateful thanks to all those organisations contributing to the EEF’s programme of work.

The charity is registered with the Fundraising Regulator. The Fundraising Regulator is an independent regulator of charitable fundraising who, using the cross-party review of fundraising self-regulation (2015), strengthen the system of charity regulation and restore public trust in fundraising. No complaints have been received in the year in relation to the charities fundraising activities.

International activity

The EEF started to work with overseas partners who share the charity's commitment to generating and using robust research in improving educational outcomes particularly for the most disadvantaged. This work provides clear benefits to English practitioners by collecting evidence and developing research worldwide. In June 2018, the charity entered into a partnership with BHP Foundation for £9.9 million to support the expansion of the EEF international work over the next five years and to broaden its reach and income sources.

Thanks to the partnership with the BHP Foundation, EEF has supported a network of organisations across four continents in countries that are keen to further integrate evidence into their education systems. Alongside existing Toolkit licencing agreements with Social Ventures Australia (Evidence for Learning) and SUMMA in Latin America and the Caribbean, a partnerships with Effective Basic Services Africa (eBASE) based in Cameroon has been established, working across The Lake Chad Basin, Queen Rania Foundation (QRF) in Jordan and “la Caixa” in Spain, with further partnerships emerging across the globe.

The BHP Foundation grant has enabled us to set up EEF’s first ever Global Trials Fund (GTF) which supports existing partners to commission trials in their own jurisdictions. To date, over £3 million has been committed towards eight pilots or trials and a potential further four trials The GTF projects have been subject to delays due to the COVID-19 school closures.

This year the EEF funded a further three global fellows through the BHP Global Fellowship Programme which, to date, has supported a total of six global fellows. Fellows from the QRF and “la Caixa” Foundation have completed work to translate and recontextualise the Toolkit using additional local content, with QRF publishing their Arabic version of the Toolkit this year. The eBASE fellow continues their work on the recontextualised version of the Toolkit for Cameroon which will be translated into French.

The EEF has continued to work on a project funded by the Centre for Development Impact and Learning (CEDIL) in collaboration with eBASE and Durham to add topics to the Toolkit that are relevant for low and middle-income countries. The new Toolkit will be launched in October 2021. The EEF also received £13,500 funding from EdTech Hub to re-contextualise the rapid evidence assessment on remote learning for low- and middle-income countries.

Investment performance

The portfolio’s value at year end of £74.1 million compared to £73.6 million in the previous year with an additional £28.5m held in a liquid reserve fund. The net increase in value is due to a significant revaluation gain of £8.7m partly offset by withdrawals of £8 million made during the year to fund grants and evaluations as well

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_______________

as operating expenses Income received from the investments after management costs was £0.1 million and investment management costs were £0.3m in the year.

The investment portfolio experienced a very positive year, after a significant loss in the 3 months to 31 March 2020 due the COVID crisis. The portfolio had regained this loss within 2 months after year end as central banks around the world responded to the crisis with strong and broad monetary and fiscal policies. During Summer 2020, the economic recovery continued with the restart of activities after lockdowns and markets gained value despite the COVID-19 related uncertainty. At the end of 2020, the markets (bond and equities) experienced a vaccine driven recovery and growth was supported by ongoing significant policy support, high savings rates and extensive inventory rebuild. The performance at the beginning of 2021 was mixed with the equities part of the portfolio performing well and the fixed income element being overall stable in Q1 despite increased volatility.

The overall return on the portfolio since inception in June 2011 has been 34%, an annualised rate of 3% per annum. The portfolio risks were reviewed throughout the year with the portfolio managers including inflation risk, credit risk and currency risks. They were all assessed as appropriate for the EEF and its long-term objectives.

Financial review

In the financial year under review, income including donations and legacies, income from trading activities and from investments was £42.7 million (2020: £8.9 million). This included grants from the Department for Education relating to the COVID-19 crisis relating to the National Tutoring Programme for £27.7m and for the Nuffield Early Language Intervention for £8m. Total expenditure for the year was £35.4 million (2020: £21.2 million). Total funds, were £75.7 million as at 31 March 2021 (31 March 2020: £59.7 million), with £56.5m unrestricted and £19.2m restricted (31 March 2020: £58.2m and £1.5m respectively).

Pay policy for senior staff

The key management personnel of the EEF are considered to be the Chief Executive, Deputy Chief Executive, Head of Finance and Operations and Director of Development and Communications. Following the Deputy Chief Executive and Director of Development and Communications departure in Summer 2021, the key management personnel will be the Chief Executive, the Director of Research, the Director of Impact and the Director of Finance and Operations. Pay packages are set through benchmarking with equivalent posts in organisations of a similar size and complexity (often with the advice of a specialist executive recruitment firm) and in order to aid the retention of key personnel. The remuneration of all staff, including key management personnel, is reviewed annually as part of the budgeting process of the charity. The Chairman and Vice Chairman are involved in reviewing the salary of the Chief Executive; the Chief Executive and Executive team lead the review of other pay packages.

Reserves policy

In accordance with the policy adopted since the establishment of the EEF, the initial endowment grant of £125 million from the Department for Education is treated as an unrestricted reserve. The unrestricted fund reserves as at the year end were £56.5 million. The Trustees treat the unrestricted funding as available for activities which forward the EEF’s charitable objectives, including grant making, and for funding the requirements for support costs and governance costs. Additionally, the Trustees review on a regular basis the investment strategy and performance of the funding pool along with projections in terms of future grant and operating expense commitments. Accordingly, the Trustees consider that the current level of free reserves (general unrestricted funds less fixed assets) of £56.1 million forms a pool available for supporting EEF activities to April 2026 – as stipulated in the terms of the initial grant – and believe this pool is sufficient to meet the planned expenditure requirements of the organisation for the foreseeable future.

13

THE EDUCATION ENDOWMENT FOUNDATION

TRUSTEES’ REPORT (INCLUDING DIRECTOR’S REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2021

The funding for the National Tutoring Programme and for the Nuffield Early Intervention that has not yet been disbursed of £16 million and £1 million respectively has been classified as restricted as the funds will be disbursed in accordance with the activities for these two programmes that are aligned to the 2020/21 academic year. The funds are expected to be disbursed by the end of Summer 2021 when these two programmes end. The restricted fund reserves as at the year end were £19.2 million (see detail in Note 22).

Investment policy

1. Introduction

The Trustees have a wide power of investment conferred on them including the power to delegate the management of investments to any firm authorised by the Financial Conduct Authority to give investment advice. The Trustees have avoided direct investment in securities issued by organisations primarily engaged in the supply of: arms, gaming and gambling, pornography, and tobacco products and services. For those investments held within the collective or pooled investment funds, the Trustees have instructed fund managers to monitor the extent, if any, to which the funds selected are invested in securities issued by businesses primarily engaged in the activities listed above and to report the position to the Trustees on a semiannual basis.

As noted above, the EEF’s assets were intended to support work to April 2026 to schools, teachers, local authorities, charities and other approved parties, and the EEF’s operating costs.

The Trustees have developed a cash flow profile and spending schedule which they will keep under review and revise from time to time as appropriate. This schedule forms the basis of the EEF’s investment policy.

2. Investment objectives

The EEF’s investment objectives aim to support its plans for making grants. The objectives will therefore evolve in congruence with the development of the EEF’s grant strategy.

At the date of this document, the investment objectives are:

The matching of cash flows will be inexact because the profile of the spending schedule will evolve. The Trustees therefore oversee adjustment of the spending schedule and regularly review the schedule with the investment managers to ensure matching of assets to liabilities within reasonable margins of tolerance.

3. Contributions, distributions and income

It is possible that additional contributions may be added to the portfolio if assets raised through fundraising activities exceed the spending rate.

Distributions will be made regularly out of both income and capital. There is no specific “income” requirement for the portfolio.

  1. Investment management

14

THE EDUCATION ENDOWMENT FOUNDATION

TRUSTEES’ REPORT (INCLUDING DIRECTOR’S REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2021

In March 2019, Goldman Sachs Asset Management was appointed as the single portfolio manager.

The Trustees have appointed BNY Mellon as custodians of the Goldman Sachs portfolio.

The managers have entered into an agreement with the EEF. This agreement includes investment guidelines and parameters (“the mandate”) within which the manager will operate with full discretion (ie without requiring prior approval from the Trustees).

The Trustees review the manager and their mandate periodically in line with their responsibilities. The managers are expected to reconcile their records with those of the custodian.

5. Reporting

The Trustees have established regular and appropriate reporting arrangements with the managers and custodian. There are currently monthly reports from, and quarterly meetings with, the managers and custodian.

The Trustees can convene ad hoc meetings as and when required.

6. Review of investment policy statement

The Trustees intend formally to review this Investment Policy Statement annually or more frequently if the circumstances or objectives of the EEF or any other factors so warrant.

Plans for future periods

The EEF will continue with its three main areas of activity: building and summarising the evidence base of what works and scaling that evidence so that it changes behaviour in schools and benefits more young people, particularly those from poorer backgrounds. The balance of the EEF work shifted significantly to scale up work in the year attention to scale up is expected to be maintained for the upcoming year. Specifically:

15

THE EDUCATION ENDOWMENT FOUNDATION

TRUSTEES’ REPORT (INCLUDING DIRECTOR’S REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2021

developing the pipeline, scaling programmes with promise, capability building, to help projects that are scaling to do this while maintaining quality and the evaluation of each workstream and of the programme overall.

16

THE EDUCATION ENDOWMENT FOUNDATION

TRUSTEES’ REPORT (INCLUDING DIRECTOR’S REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2021

National Tutoring Programme (NTP) update since year-end and post balance sheet event

Risk management

The Trustees have a risk management strategy which comprises:

The top four risks during the financial year 2020-2021 were:

  1. Research does not meet expected standards to forward the objectives (eg trials fail or are late, results are insecure, schools lose confidence in the work).

Mitigation: robust selection and monitoring processes, focus on lessons learned from previous trials, developing clear Quality Assurance standards and processes and involving external experts as needed.

17

THE EDUCATION ENDOWMENT FOUNDATION

TRUSTEES’ REPORT (INCLUDING DIRECTOR’S REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2021

Ensuring the EEF research agenda is mission aligned and focused on key leverage points for disadvantaged pupils.

  1. Scale-up: messages from research and promising programmes fail to influence the education system.

Mitigation: a detailed regional delivery plan has been implemented since September 2019 targeting priority schools in all regions and aiming to change practices in schools that need it the most based on the best evidence available. Teacher and school choices work translate into more direct EEF involvement in the system.

  1. Overreliance on third parties to deliver.

Mitigation: Application and monitoring processes in place, diversification of partner base, policy of not reappointing after poor performance.

  1. Internal effectiveness: the EEF team fails to adapt to changes in leadership and a more dynamic external environment, leading to a risk that it does not deliver on its plan effectively.

Mitigation: despite changes at manager levels, the EEF retains key staff at different levels and has recruited a strong team in 20/21 that allows the development of key relationships with a broadened base of schools, key academics and advisors.

Statement of Trustees’ Responsibilities

The Trustees (who are also directors of The Education Endowment 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 and charity law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company 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 adequate and proper accounting records that are sufficient to show and explain the charitable company’s transactions and 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

18

THE EDUCATION ENDOWMENT FOUNDATION

TRUSTEES’ REPORT (INCLUDING DIRECTOR’S REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 MARCH 2021

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 preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Disclosure of information to auditor

In so far as the Trustees are aware:

Auditors

As part of the regular review of governance, the charity conducted a competitive tender process for the appointment of auditors. Following this process, Moore Kingston Smith LLP were appointed as auditors for the period under review and have indicated their willingness to continue in office.

This report, including the strategic report was approved and signed on behalf of the board by:

Chairman (Dec 15, 2021, 8:06pm) Sir Peter Lampl, Chairman

Date:

15 Dec 2021

19

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE EDUCATION ENDOWMENT FOUNDATION

Opinion

We have audited the financial statements of The Education Endowment Foundation (‘the company’ for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 financial statements section of our report. We are independent of the Corporation in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

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

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

We have nothing to report in this regard.

20

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE EDUCATION ENDOWMENT FOUNDATION

Opinions on 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 18, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the 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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the

21

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE EDUCATION ENDOWMENT FOUNDATION

audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

To address the risk of fraud through management override of controls, we carried out the following work:

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

22

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE EDUCATION ENDOWMENT FOUNDATION

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the 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 any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

James Saunders (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Devonshire House 60 Goswell Road London EC1M 7AD

Date: 16 December 2021

23

The Education Endowment Foundation Statement of Financial Activities for the year ended 31 March 2021

Note
Income from:
Donations and legacies
3
Trading activities
4
Investments
5
Total Income
Expenditure on:
Raising funds
Fundraising expenditure
6
Trading costs
6
Investment management
6
Charitable activities
7
Total Expenditure
Net gains/(losses) on investments
Transfers between funds
Net movement in funds
Reconciliation of funds
23
Balances at 1 April 2020
Balances at 31 March 2021		 Unrestricted
fund
£
1,112,647
245,613
56,195		 Restricted
fund
£
41,258,065
-
-		 2021
total
£
42,370,712
245,613
56,195		 2020
total
£
8,380,674
163,387
405,006
1,414,455 41,258,065 42,672,520 8,949,067
257,501
-
269,781		 8,942
-
-		 266,443
-
269,781		 225,474
-
348,183
527,282
11,237,477		 8,942
23,580,633		 536,224
34,818,110		 573,657
20,544,212
11,764,759 23,589,575 35,354,334 21,117,869
8,703,834
-		 -
-		 8,703,834
-		 (809,054)
-
(1,646,470)
58,182,405		 17,668,490
1,545,891		 16,022,020
59,728,296		 (12,977,856)
72,706,152
56,535,935 19,214,381 75,750,316 59,728,296

The notes on pages 27 to 39 form part of these financial statements.

24

The Education Endowment Foundation Balance Sheet as at 31 March 2021

Fixed assets
Tangible Fixed Assets
14
Investments
15
Current assets
Debtors falling due after one year
17
Debtors falling due within one year
17
Cash at bank and in hand
Creditors: amounts falling due within one year
18
Net current assets/(liabilities)
Creditors: amounts falling due over one year
18
Net assets
Funds
Restricted funds
23
Unrestricted funds
23		 £
£
356,437
102,557,684
102,914,121
131,313
41,716,222
8,308,490
50,156,025
(73,987,698)
(23,831,673)
(3,332,132)
75,750,316
19,214,381
56,535,935
75,750,316
2021		 £
£
345,471
73,567,904
73,913,375
1,569,851
6,951,311
3,132,812
11,653,974
(19,851,141)
(8,197,167)
(5,987,912)
59,728,296
1,545,891
58,182,405
59,728,296
2020		 £
£
345,471
73,567,904
73,913,375
1,569,851
6,951,311
3,132,812
11,653,974
(19,851,141)
(8,197,167)
(5,987,912)
59,728,296
1,545,891
58,182,405
59,728,296
2020
59,728,296
1,545,891
58,182,405
59,728,296

The financial statements were approved by the Board and authorised for issue, on and signed on their behalf by:15 Nov 2021

Chairman (Dec 15, 2021, 8:06pm)

Sir Peter Lampl, Chairman Trustee

Date

15 Dec 2021

Company registration number: 07587909

25

The Education Endowment Foundation Statement of Cash Flows for the year ended 31 March 2021

Net cash provided by operating activities
Cash flows from investing activities:
Purchase of tangible fixed assets
Purchase of investments
Proceeds on disposal of investments
Interest received
Net cash (provided by)/used in investing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at end of year
Cash generated from operations
Surplus/(Deficit) for the year
Adjustment for:
Investment income recognised in statement of financial activities
Loss on disposal of tangible fixed assets
Fair value gains and losses on investments
Depreciation and impairment of tnagible fixed assets
Movement in working capital:
(Increase)/decrease in debtors
(decrease)/increase in creditors
Increase in provision
Increase/(decrease) in deferred income
Net cash provided by operating activities
Analysis of cash and cash equivalents
Cash at bank and in hand
Total cash and cash equivalents
Analysis of changes in net debt
Cash at bank and in hand
Total		 Note
As at 1 April
2020
£
3,132,812
3,132,812		 2021
£
25,599,583
(194,154)
(40,710,564)
20,424,618
56,195		 2020
£
(15,649,812)
(174,122)
(53,303,735)
67,232,420
405,006
(20,423,905)
5,175,678
3,132,812		 14,159,569
(1,490,243)
4,623,055
8,308,490 3,132,812
2021
£
16,022,020
(56,195)
-
(8,703,834)
183,188
(33,326,373)
963,190
-
50,517,587		 2020
£
(12,977,856)
(405,006)
11,629
809,054
188,817
(3,593,028)
(529,642)
-
846,220
25,599,583 (15,649,812)
2021
£
8,308,490		 2020
£
3,132,812
8,308,490 3,132,812
Cash-flows As at 31 March
2021
£
5,175,678		 £
8,308,490
5,175,678 8,308,490

26

The Education Endowment Foundation Notes to the financial statements for the year ended 31 March 2021

Accounting Policies

1 Charity Information

The Education Endowment Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is 5th Floor, Millbank Tower, 21-24 Millbank, London, SW1P 4QP.

In the event of the charitable company being wound up each of the members have agreed to contribute up to £1 each towards:

•payment of those debts and liabilities of the charity incurred;

•payment of the costs, charges and expenses of winding up; and

2 Accounting convention

Basis of preparation

These financial statements are prepared on a going concern basis, under the historical cost convention, as modified by the revaluation of investments being measured at fair value through income and expenditure within the Statement of Financial Activities.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these financial statements. The financial statements have been prepared in accordance with the 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 (FRS102) including Update Bulletin 2, (Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Additional information has been provided where this increases understanding of the figures.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound.

The company has taken advantage of the exemption under section 402 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the subsidiary's results are immaterial to the results of the group.

The following accounting policies have been applied consistently during the current and previous year except as defined below:

Going concern

The Trustees have assessed whether the use of going concern is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the group to continue as a going concern. The Trustees have given due consideration to the impact of the Covid-19 pandemic, which has remained an issue in the period between the year end and the signing of the financial statements. The charity’s income continues to be largely sheltered from the impact of Covid-19 due to a number fo long term grants and its loyal supporter base, who have continued to support the charity in the current global pandemic. The trustees have prepared a budget and cash flow forecast covering a period of at least twelve months from the date of approval of these financial statements, which incorporates confirmed income and consideration has been given how expenditure could be managed if further grants were not Having reviewed forecasts prepared by management the Trustees are confident that the charity will continue to meet its obligations as they fall due and that therefore the going concern basis continues to be appropriate.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charitable company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

27

The Education Endowment Foundation Notes to the financial statements for the year ended 31 March 2021

Accounting policies (continued)

Income

All income is recognised in the Statement of Financial Activities once The Education Endowment Foundation has entitlement to the resources and is probable that the resources will be received within The Education Endowment Foundation or on its behalf and the monetary value of the incoming resources can be measured with sufficient reliability.

Voluntary income is received by way of grants, donations and gifts and is included in full in the Statement of Financial Activities when receivable. Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.

Grant income is deferred when the grants are received in advance and specified by the donor as relating to specific accounting periods; or alternatively which are subject to conditions which are still to be met and which are outside the control of the charity; or when it is uncertain whether the conditions can or will be met. These are deferred to the period to which they relate and released to incoming resources.

Investment income and associated tax recoverable is accounted for on a receivable basis.

Donated services and facilities are recognised as income and expenditure in the financial statements when companies and individuals offer their professional expertise pro bono. The value of these donated services and facilities to The Education Endowment Foundation is considered to be equal to market value which is based upon the valuation the professional or organisation places upon the time, services and facilities they have provided to The Education Endowment Foundation. All of these amounts are treated as unrestricted donations.

Trading Income

Trading income comprises revenue recognised by the charitable company in respect of licensing of The Education Endowment Foundation resources, exclusive of Value Added Tax and trade discounts.

Licensing income is recognised on the accruals basis based on the contracted terms and substance of the relevant arrangements.

Interest Receivable

Interest on funds held on deposit is inciuded when receivable and the amount can be measured reliably by the charitable company; this is normally upon notification of the interest paid or payable by the Bank.

Expenditure

Expenditure is accounted for on an accruals basis as a liability is incurred, which is when there is a legal or constructive obligation committing The Education Endowment Foundation to the expenditure. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.

Raising funds comprise the direct staff costs and other support costs associated with attracting voluntary income.

Investment management costs include the costs of:

(b) Obtaining Investment advice

Costs associated with acquiring and disposing of investments would normally form part of the acquisition cost of the investment or reduce the return on disposals. These costs are therefore not part of the investment management costs.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both the direct costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees, statutory reporting, legal costs and Trustee expenses linked to the strategic management of the charity.

Overhead and support costs have been allocated first between the cost of generating voluntary income, charitable activity and governance. Where overhead and support costs relating to costs of generating voluntary income and charitable activities cannot be directly allocated, these have been apportioned based on the head count for each activity.

28

The Education Endowment Foundation Notes to the financial statements for the year ended 31 March 2021

Accounting policies (continued)

Expenditure

Grants are recognised as expenditure in the year when the charity creates a legal or constructive obligation.

Following approval by the Board of Trustees, all grant awards made are subject to: (i) the recipient entering into a written, legally binding agreement, and (ii) a project review at each milestone as set out in the grant agreement. Under the terms of its agreements with grant recipients, which are considered to be performance related, The Education Endowment Foundation retains the discretion to withdraw its future funding commitment for a number of specified reasons, including failure to meet agreed performance milestones.

An obligation arises, and expenditure is recognised in the financial statements, when a funding agreement has been signed by both parties and evaluations by the charity confirm the milestones set out in the agreement and any other terms and conditions of funding have been satisfactorily met.

Grants payable but unpaid at the balance sheet date are recognised as grant commitments under creditors.

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. All assets costing more than £250 are capitalised.

Computer equipment 25-33% straight line Fixtures and fittings 20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

Unlisted investments comprise investments in subsidiaries which are measured at cost less impairment.

Impairment of fixed assets

At each reporting end date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

Financial instruments

The Education Endowment Foundation only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Taxation

The Education Endowment Foundation is a registered company, number 07587909 and is exempt from corporation tax under the provisions of Sections 466-493 of the Corporation Taxes Act 2010.

Leases

Operating lease costs are charged to the Statement of Financial Activities as incurred, on a straight line basis over the term of the lease.

29

The Education Endowment Foundation Notes to the financial statements for the year ended 31 March 2021

Accounting policies (continued)

Employee benefits

The costs of short term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entiUement is recognised in the period in which the employee's services are received.

Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense to the Statement of Financial Activities as they fall due.

Deferred taxation

Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.

Critical accounting estimates and judgements

In the application of the charitable company's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

(i) Location of investment assets

The charity makes an estimate to calculate the level of investment assets held in the UK or overseas. Most asset held as investments are global assets and it requires an element of judgement to determine where the asset is held.

(ii) Useful economic life of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic life and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on future economic utilisation and the physical condition of the assets. See note 14 for the carrying value of tangible fixed assets and the accounting policies for the useful economic lives for each class of asset.

(iii) Gifts in kind

Gifts in kinds are recognised within incoming resources and expenditure at an estimate of the value to the charity of the donated services or goods. Where possible the value of services/goods are confirmed directly with the supplier however in some instances this information is not available and a best estimated is made of the expected cost of such goods based on what the charity would be willing to pay for similar services or goods at a market rate.

(iv) Performance related grant recognition

The National Tutoring Partnership Grant funding agreement contains performance related conditions that specify the services to be performed. Income is recognised to the extent that the charity has provided the specified goods or services as entitlement to the grant has occurred as performance-related conditions are met. The degree to which the performance related conditions have been met have been estimated based upon the underlying data avilable to the charity.

(v) Capitalisation of website costs

Based on historic understanding and relationship with website developers, the development costs are split into two categories: maintenance costs for 30% and capitalised development costs adding significant capabilities and functionalities for 70%.

30

The Education Endowment Foundation Notes to the financial statements for the year ended 31 March 2021

3
Donations and legacies
Donations and gifts
Grants
Donated services
Donation from subsidiary
For the year ended 31 March 2020
Grants
Department for Education
BHP Foundation
KPMG
Kusuma Trust
JP Morgan Foundation
Paul Hamlyn Foundation
ICG
Wellcome Trust
For the year ended 31 March 2020
Donated services
Macfarlanes
Freshfields
BCG
Bain & Co
For the year ended 31 March 2020
4
Income from other trading activities
Licensing of Teaching and Learning Toolkit
Commissioned research		 Unrestricted
fund
£
-
-
1,112,647
1,112,647
46,848
Unrestricted
fund
£
-
-
-
-
-
-
-
-
-
-
Unrestricted
fund
£
29,446
170,431
350,000
562,770
1,112,647
46,778		 Restricted
funds
£
367,596
40,890,469
-		 2021
total
£
367,596
40,890,469
1,112,647
42,370,712
2021
total
£
37,939,768
1,389,616
500,000
-
-
100,000
500,000
461,085
40,890,469
2021
total
£
29,446
170,431
350,000
562,770
1,112,647
2021
£
100,250
145,363
245,613		 2020
total
£
1,097,958
7,235,938
46,778
41,258,065 8,380,674
8,333,826 8,380,674
Restricted
funds
£
37,939,768
1,389,616
500,000
-
-
100,000
500,000
461,085		 2020
total
£
4,294,658
1,655,409
25,000
40,160
33,335
-
500,000
687,376
40,890,469 7,235,938
7,235,938 7,235,938
Restricted
funds
£
-
-
-
-		 2020
total
£
25,843
20,935
-
- 46,778
- 46,778
2020
£
163,387
-
163,387

Licensing of Teaching and Learning Toolkit

Income from trading activities has arisen from the development and licencing of The Education Endowment Foundation resources to Social Ventures Australia, to La Caixa Foundation and to Queen Rania Foundation, all of which arose within the rest of the world. Commissioned research

All of this income arose within the UK.

5 Investments

Income from listed investments
Interest receivable
Raising funds
Fundraisinq expenditure
Audit, accountancy and other finance costs
Office administration
Premises costs
Advertising
Staff costs
Other staff costs
Depreciation and impairment		 Unrestricted
fund
£
110
8,967
11,553
21,123
202,226
2,836
10,686
257,501		 Restricted
funds
£
4
310
401
734
7,023
99
371		 2021
£
55,727
468
56,195
2021
total
£
114
9,277
11,954
21,857
209,249
2,935
11,057
266,443		 2020
£
237,138
167,868
405,006
2020
total
£
32
7,288
13,065
8,988
169,060
13,808
13,233
8,942 225,474

6 Raising funds

31

The Education Endowment Foundation Notes to the financial statements for the year ended 31 March 2021

6 Raising funds (continued)

7
8
9		 Investment management
For the year ended 31 March 2020
Fundraising expenditure
Investment management
Charitable activities
Staff costs
Other staff costs
Donated services
Grant funding of activities (see note 8)
Share of support costs (see note 10)
Share of governance costs (see note 10)
Analysis by fund
Unrestricted funds
Restricted funds
Grants payable
Grants to institutions: See note 9
Grants to institutions
Achievement for All
Action for Children
Action for Children and Oxford University
Ambition Institute
Ark UK Programmes
Bangor University
Blackpool Council
Communicate SLT
Chartered College of Teaching
Childrens University
Kingsbridge Academy
Midlands Academy Trust
My Tutor
NASAN
National Children's Bureau
National Day Nurseries
National Literacy Trust
NFER
Oxford Trust
SSAT
St Mary Catholic Academy Blackpool
SUMMA (Chile)
Tutor Trust		 Unrestricted
Restricted
fund
funds
£
£
269,781
-
527,282
8,942
211,204
14,270
348,183
-
559,387
14,270
Achieving Early
Early Years Toolbox
Early Round Teaching
English Mastery
Headsprout Early Reading
Sunday Times appeal grant
Hanen Leaming Language and Loving It
Earty Round Teaching
Regrant
A self-testing Toolkit
Corrective Mathematics
Schools Programme
SEND review
Maths Champions
IPEELPifot
Thinking Doing Talking Science
Sunday times appeal grant
Tutor Trust Scale Up
Early years Foundation Stage Profit
Raising Early Achievement in Literacy
Teachers in Disadvantaged Schools
Embedding Formative Assessment
Scale Up
Global Trial Fund - Conecta Ideas		 Restricted
funds
£
-		 2021
total
£
269,781
536,224
2021
£
3,171,614
44,495
1,112,647
4,328,756
29,360,442
986,846
142,066
34,818,110
23,580,633
11,237,477
34,818,110
2021
£
29,360,442
2021
£
(832,933)
-
-
(4,500)
-
65,035
-
-
(3,000)
82,875
-
-
23,267
116,472
-
52,531
-
-
52,632
95,804
-
-
500,000		 2020
total
£
348,183
8,942 573,657
14,270
-		 225,474
348,183
14,270 573,657
2020
£
2,173,965
177,558
46,778
2,398,301
17,412,621
597,135
136,155
20,544,212
13,130,654
7,413,558
20,544,212
2020
£
17,412,621
2020
£
855,933
(7,181)
(3,686)
382,785
(14,923)
400,231
32,750
183,544
432,600
570,798
(27,781)
10,815
372,000
559,810
(71,770)
478,284
31,082
(340,000)
839,256
257,819
30,300
616,972
50,000

32

The Education Endowment Foundation Notes to the financial statements for the year ended 31 March 2021

9 Grants to institutions (continued)

UCL
Direct Mapping
University of Hertfordshire
Primary Science Quality Mark
University of Lincoln
ASCENTS mentoring
University of Manchester
PACT
University of York
TEEM UP
White Rose
Early Years Jigsaw
Behavioural Insights Team
Stop and Think
University of Oxford
Improving Working Memory
University of Oxford
Nuffield Early Language Third Trial
University of Oxford
Nuffield Early Language Fourth Trial
Zenex Foundation
Global Trial Fund
Oxford University Press
Nuffield Early Language
Grants awarded to 33 Tuition Partners
National Tutoring Programme
Grants made to 5 regions and schools
Sunday Times appeal grant
Various international organisations
Global Fellowships
Adjustments to grants awarded in previous year
Scale up expenditure (research schools, advoc acy and guidance reports)
Evaluation and research funding
Total grants, scale up activty and evaluation		 2021
£
(38,550)
-
-
-
170,682
74,408
506,007
919,046
399,927
3,117,610
445,000
4,265,175
9,382,842
865,370
213,627
20,469,327
(425,083)
2,338,117
6,978,081
29,360,442		 2020
£
399,438
15,819
50,000
98,446
999,792
429,399
-
-
-
-
-
-
-
-
-
7,632,532
154,261
2,364,970
7,260,858
17,412,621

10 Support costs

Staff costs
Other staff costs
Depreciation
Legal and professional
Other finance costs
Office administration
Premises costs
Marketing and public relations
Audit fees
Accountancy		 Support
Costs
£
-
-
172,131
141,157
-
144,301
186,099
340,270
-
2,888
986,846		 Governance
costs
£
74,041
13,100
-
-
-
-
-
-
14,855
40,070		 2021
total
£
74,041
13,100
172,131
141,157
-
144,301
186,099
340,270
14,855
42,958
1,128,912		 2020
total
£
69,207
5,652
175,584
17,787
36,814
110,707
173,354
119,281
14,800
10,104
142,066 733,290

11 Auditor's remuneration

Audit of the charity's annual accounts
Other audit- related assurance services
Regularity report
Non- Audit services
Taxation compliance services
All other non-audit services
Total Non Audit fees		 2021
£
10,750
2,850
-
2,950
2,950		 2020
£
12,000
2,800
5,000
8,300
13,300

12 Trustees

None of the trustees or any persons connected with them received any remuneration from the charitable company during the year (2020: £nil).

There were no trustee expenses (2020: £239 travel expenses for one trustee).

33

The Education Endowment Foundation Notes to the financial statements for the year ended 31 March 2021

13
Employees
Average monthly number of employees during the year:
Chief Executive Officer
Grant making, evaluation and dissemination staff
Fundraising staff
Administration staff		 2021
number
1
39
1
7
48		 2020
number
1
32
1
5
39

The key management personnel of the charity are considered to be the Chief Executive, Deputy Chief Executive, Director of Development and Communications and the Board of Trustees.

The remuneration and employee benefits of key management personnel, amounted to £488,184 in the year under review (2020: £416,379).

Staff costs comprise:
Salaries & wages
Social security costs
Other pension costs
The number of employees whose annual remuneration was £60,000 or more were:
£60,001 - £70,000
£80,001 - £90,000
£90,001 - £100,000
£100,001 - £110,000
£110,001 - £120,000
£180,001 - £190,000		 2021
£
3,072,647
262,594
131,261
3,466,502
2021
number
2
2
-
1
1
1		 2020
£
2,117,019
196,806
98,407
2,412,232
2020
number
3
-
1
1
1
-

14 Tangible fixed assets

Cost
At 1 April 2020
Additions
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Depreciation charged in the year
Eliminated on disposals
Carrying amount
At 31 March 2021
At 31 March 2020		 Fixtures and
fittings
£
125,076
-
-
125,076
109,448
15,378
-
124,826
250
15,628		 Computers and
IT Equipment
£
1,677,608
194,154
-
1,871,762
1,347,765
167,810
-
1,515,575
356,187
329,843		 Total
£
1,802,684
194,154
-
1,996,838
1,457,213
183,188
-
1,640,401
356,437
345,471

34

The Education Endowment Foundation Notes to the financial statements for the year ended 31 March 2021

15 Fixed Asset investments

Cost or valuation at 1 April 2020
Additions
Revaluation changes
Disposals
At 31 March 2021
Carrying amount
At 31 March 2021
At 31 March 2020
Historical cost
Material Investmetns
Fixed interest securities
Equities
Cash held within investment portfolio
Other		 Listed
investments
£
45,170,593
54,993
8,703,834
(10,924,593)
Unlisted
investments
£
100
-
-
-
Cash in
portfolio
£
28,397,211
40,655,571
-
(9,500,025)
59,552,757
59,552,757
28,397,211
59,552,757
2021
£
29,674,589
10,160,603
59,552,757
3,169,634
102,557,584		 Total
£
73,567,904
40,710,564
8,703,834
(20,424,618)
43,004,827 100 102,557,684
43,004,827 100 102,557,684
45,170,593 100 73,567,904
24,387,805 100 83,940,662
2020
£
30,162,741
10,299,506
28,397,211
4,708,346
73,567,804

The Trustees do not consider any individual investment within these amounts to be material

The Trustees do not consider any individual investment within these amounts to be material
Investments at fair value comprise:
Investments held in the UK
Investments held overseas		 2021
£
59,197,284
43,360,300
102,557,585		 2020
£
28,765,050
44,802,754
73,567,804

Fixed asset investments revalued

The above funds are invested in sterling denominated securities.

The Trustee appointed investment custodians are charged with safeguarding the investment assets of The Education Endowment Foundation. Their responsibilities include overseeing the reconciliation of the investment managers' records within their own.

16 Subsidiaries

These financial statements are separate charitable company financial statements for EEF Services Limited.

Details of the charitable company's subsidiaries at 31 March 2021 are as follows:

Registered Nature of Class of shares
Name of undertaking office business held % Held Direct Indirect
EEF Services Limited 5th Floor Dormant Ordinary 100.00
Millbank Tower,
21-24 Millbank,
London
SW1P 4QP

17 Debtors

Amounts falling due within one year:
Other debtors
Grants receivable
Prepayments and accrued income
Amounts falling due after more than one year:
Grants receivable
Total debtors		 2021
£
21,020
41,633,358
61,844
41,716,222
131,313
41,847,535		 2020
£
16,126
6,883,557
51,628
6,951,311
1,569,851
8,521,162

35

The Education Endowment Foundation Notes to the financial statements for the year ended 31 March 2021

18
Creditors: amounts falling due within one year
Notes
Trade creditors
Amounts due to subsidiary undertakings
Other taxation and social security
Deferred income
20
Grants accrued
Other creditors
Accruals
19
Creditors greater than 1 year
Deferred income
20
Grants accrued
20
Deferred income
Other deferred income
Current liabilities
Non current liabilities
Deferred income brought forward
Grants received in the year
Grants recognised in the year
Deferred income carried forward
Deferred income is included in the financial statements as follows:		 2021
£
169,663
-
87,114
54,354,769
9,451,662
22,008
9,902,482		 2020
£
757,379
-
56,980
2,672,066
8,330,737
528,951
7,505,028
73,987,698 19,851,141
2021
£
114,833
3,217,299		 2020
£
1,279,949
4,707,963
3,332,132 5,987,912
2021
£
54,469,602		 2020
£
3,952,015
2021
£
54,354,769
114,833		 2020
£
2,672,066
1,279,949
54,469,602 3,952,015
2021
£
3,952,015
(41,062,469)
91,580,056		 2020
£
3,105,795
(6,389,719)
7,235,939
54,469,602 3,952,015

Deferred income represents grants received in advance. The income is deferred when the grant agreements are subject to conditions which are still to be met and which are outside the control of the charity or when grants or income are received in advance and specified by the donor or other party as relating to specific accounting periods.

36

The Education Endowment Foundation Notes to the financial statements for the year ended 31 March 2021

21 Retirement benefit schemes

Defined contribution schemes

The charitable company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.

The charge to the Statement of Financial Activities in respect of defined contribution schemes was £131,369 (2020: £89,407).

Contributions totalling £25,812 (2020: £17,064) were payable to the fund at the balance sheet date and are included in other creditors.

22 Restricted funds

The income funds of the charity indude restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

ICG
Northern Rock Foundation
Sunday Times Appeal
National Tutoring Programme (DfE)
Nuffield Early Languange Intervention (DfE)
Early Years Professional Development (DfE)
Evidence Guardianship (DfE)
BHP Billiton Foundation
KPMG National Tutoring Programme
Paul Hamlyn Foundation
Suffolk County Council
Wellcome Trust
Lincolnshire Associated Research School		 Balance at 1
April 2020
250,000
261,061
1,034,830
-
-
-
-
-
-
-
-
-
-
1,545,891		 Income
500,000
-
245,596
27,652,808
8,054,465
232,495
2,000,000
1,389,616
500,000
100,000
100,000
461,085
22,000
41,258,065
Movement		 Expenditure
(750,000)
(261,061)
(865,370)
(11,630,262)
(7,038,402)
(232,495)
(361,284)
(1,389,616)
(500,000)
(100,000)
-
(461,085)
-
(23,589,575)
in funds		 Balance at 31
March 2021
-
-
415,056
16,022,546
1,016,063
-
1,638,716
-
-
-
100,000
-
22,000
19,214,381

Details of restricted funds

ICG fund is restricted to funding two of the EEF's promising projects, Tutor Trust and Nuffield Early Language intervention.

Northern Rock Foundation fund is restricted to funding a five-year North East Literacy Campaign focused on primary-age children in the region.

Sunday Times Appeal fund is restricted to supporting schools in disadvantaged communities.

The DfE funding is restricted to four different streams of work: the National Tutoring Programme, the Nuffield Early Language Intervention, the Early Years Professional Development and the Evidence Guardianship.

The BHP Billiton Foundation fund is restricted funding to fund global trials with the EEF's international partners.

KPMG fund is restricted to funding the National Tutoring Programme.

Paul Hamlyn Foundation fund is restricted to funding the EEF's response to COVID-19 related schools closures.

Suffolk County Council fund is restricted to funding Regional delivery activity in Suffolk.

Wellcome Trust fund is restricted to funding collaborations between educators and neuroscientists to develop and evaluate the effectiveness of neuroscience-based educational interventions in the classroom designed to increase the attainment of pupils, particularly those from low-income families, to fund Science and Education trials and Science Teacher retention trials.

A donation from an individual donor to support funding the Lincolnshire Associated Research School.

37

The Education Endowment Foundation Notes to the financial statements for the year ended 31 March 2021

22 Restricted funds (continued)

Restricted funds (prior year)

The income funds of the charity indude restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Home Leaming Environment (DfE)
Early Years Foundation Stage Profile Pilot (DfE)
Early Years Professional Development (DfE)
BHP Billiton Foundation
ICG
KPMG Manor Park Talks
JP Morgan Foundation (Post-16)
Kusuma Trust
Northern Rock Foundation
Sunday Times Appeal
Wellcome Trust		 Balance at 1
April 2019
-
-
-
-
-
-
33,329
54,940
551,624
-
-
639,893		 Income
Expenditure
2,569,288
(2,569,288)
168,089
(168,089)
1,557,281
(1,557,281)
1,655,409
(1,655,409)
500,000
(250,000)
25,000
(25,000)
33,335
(66,664)
40,160
(95,100)
-
(290,563)
1,097,888
(63,058)
687,376
(687,376)
8,333,826
(7,427,828)
Movement in funds		 Balance at 31
March 2020
-
-
-
-
250,000
-
-
-
261,061
1,034,830
-
1,545,891

The DfE Funding is restricted to three different themed rounds on Home Learning Environment, on an early Years Foundation Stage Profile Pilot and on Early Years Professional Development.

The BHP Billiton Foundation fund is restricted funding to fund global trials with the EEF's international partners.

ICG fund is restricted to funding two of the EEF's promising projects, Tutor Trust and Nuffield Early Language intervention.

KPMG fund is restricted to funding the Manor Park Talks project, a course of training for early years staff which helps them to identify and support children with early language development.

JP Morgan Foundation (Post-16) is restricted to funding post-16 trials.

Kusuma Trust fund is restricted to funding to scale up evidence for impact in mathematics and science in up to 220 schools in regions across the UK.

Northern Rock Foundation fund is restricted to funding a five-year North East Literacy Campaign focused on primary-age children in the region.

Sunday Times Appeal fund is restricted to supporting schools in disadvantaged communities.

Wellcome Trust fund is restricted to funding collaborations between educators and neuroscientists to develop and evaluate the effectiveness of neuroscience-based educational interventions in the classroom designed to increase the attainment of pupils, particularly those from low-income families, to fund Science and Education trials and Science Teacher retention trials.

23
Analysis of net assets between funds
Fund balances at 31 March 2021 are represented by:
Tangible assets
Investments
Current assets/(liabilities)
Long term liabilities		 Unrestricted
funds
£
356,437
68,653,178
(10,305,360)
(2,218,902)
56,485,353		 Restricted
funds
£
-
33,904,506
(13,576,895)
(1,113,230)
19,214,381		 Total
£
356,437
102,557,684
(23,882,255)
(3,332,132)
75,699,734

Included within unrestricted funds is a reserve of £8,703,834 (2020: £12,177,588) relating to unrealised gains on investment assets.

38

The Education Endowment Foundation Notes to the financial statements for the year ended 31 March 2021

23 Analysis of net assets between funds (continued)

Fund balances at 31 March 2020 are represented by:
Tangible assets
Investments
Current assets/(liabilities)
Long term liabilities		 Unrestricted
funds
£
345,471
73,567,904
(11,023,007)
(4,707,963)
58,182,405		 Restricted
funds
£
-
-
2,825,840
(1,279,949)
1,545,891		 Total
£
345,471
73,567,904
(8,197,167)
(5,987,912)
59,728,296

Included within unrestricted funds is an unrealised reserve of £12,177,588 (2019: £12,986,642) relating to gains on investment assets.

24 Commitments under operating leases

The charity has the following future minimum lease payments under non-cancellable operating leases:

Land and buildings
Within 1 year
Between 2 - 5 years		 2021
£
97,315
-
97,315		 2020
£
97,315
-
97,315

25 Related party transactions

Sir Peter Lampl, the Chairman of The Education Endowment Foundation is also the Chairman of the Sutton Trust. Sir Peter Gershon is a Trustee of the Sutton Trust. During the year the charity made payments of £52,919 (2020: £29,384) to the Sutton Trust for the use of office premises and related office administration expenses and reimbursed the Sutton Trust the sum of £44,400 (2020: £29,206) for payments made on behalf of The Education Endowment Foundation for staff costs, staff travel expenditure and sundry purchases.

At the year end the Sutton Trust owed £21,134 (2020: were owed £18,727 by) The Education Endowment Foundation. This amount is included in other creditors.

Lucy Heller, a Trustee of the Education Endowment Foundation, is also the Chief Executive of Ark, an organisation the Education Endowment Foundation granted £nil in the year (2020: £nil). The Education Endowment Foundation owed Ark £224,363 at the year end (2020:£532,655).

Hanneke Smits, Louis Elson, and Nat Sloane, Trustees of the Education Endowment Foundation, are also Trustees of Impetus - The Private Equity Foundation, an organisation the Education Endowment Foundation granted £196,933 in the year (2020: £nil), of which £98,466 was recognised as grant expenditure in 2021. (2020: £nil). Staff were seconded from Impetus to deliver the National Tutoring Programme and costs recognised during the year are £44,835 (2020: £nil).

At the year end Impetus PEF were owed £49,233 (2020: £nil) by the Education Endowment Foundation for its grant expenditure, this is included in Grant Accruals. At the year end Impetus PEF were owed £23,406 (2020: £nil) by the Education Endowment Foundation with regards to seconded staff costs, this is included in Accruals.

26 Post balance sheet events

After the year end, the charity re-tendered for the National Tutoring Programme Year 2, which they had run for the period 01/08/2020 - 31/07/2021, however the tender was unsucessful and this was transferred to another provided from 31/08/2021. The project costs were less than budgeted in the period of the programme, due to the reasons outlined in the trustee report, which has resulted in a significant underspend at the finalisation of the project. This represents a total underspend of £29.2 million which will be returned to the Department for Education in the following financial year.

39

Issuer

EEF

Document generated Wed, 15th Dec 2021 17:17:07 UTC

Document fingerprint d28ee79c95185c9037f90e955d728653

Parties involved with this document

Document processed

Party + Fingerprint

Wed, 15th Dec 2021 17:32:29 UTC Wed, 15th Dec 2021 20:06:15 UTC Wed, 15th Dec 2021 20:06:15 UTC

Anne-Laure Bedouet - Signer (6552227004b32783a9ec4cfd44a0d5a0) Chairman - Signer (3be7b725a8291a4113a28726d7b1bacf) Anne-Laure Bedouet - Copied In (482a3ae18e24870a4044945f7fee7b19)

Audit history log

Date

Action

Wed, 15th Dec 2021 20:06:15 UTC Wed, 15th Dec 2021 20:06:15 UTC

Wed, 15th Dec 2021 20:06:15 UTC Wed, 15th Dec 2021 20:03:43 UTC Wed, 15th Dec 2021 17:49:57 UTC Wed, 15th Dec 2021 17:32:30 UTC Wed, 15th Dec 2021 17:32:29 UTC

Wed, 15th Dec 2021 17:32:29 UTC Wed, 15th Dec 2021 17:30:03 UTC Wed, 15th Dec 2021 17:29:27 UTC

Wed, 15th Dec 2021 17:29:26 UTC

Wed, 15th Dec 2021 17:23:32 UTC Wed, 15th Dec 2021 17:23:32 UTC Wed, 15th Dec 2021 17:23:32 UTC Wed, 15th Dec 2021 17:19:03 UTC

The envelope has been signed by all parties. (88.109.215.24) Sent a copy of the envelope to Anne-Laure Bedouet (anne-laure.bedouet@eefoundation.org.uk). (88.109.215.24) Chairman signed the envelope. (88.109.215.24) Chairman viewed the envelope. (88.109.215.24) Chairman viewed the envelope. (88.109.215.24) Document emailed to peter.lampl@suttontrust.com (13.40.173.101) Sent the envelope to Chairman (peter.lampl@suttontrust.com) for signing. (78.145.73.209)

Anne-Laure Bedouet signed the envelope. (78.145.73.209) Anne-Laure Bedouet viewed the envelope. (78.145.73.209) Document emailed to anne-laure.bedouet@eefoundation.org.uk (18.134.177.197)

Sent the envelope to Anne-Laure Bedouet (anne-laure.bedouet@eefoundation.org.uk) for signing. (78.145.73.209) Anne-Laure Bedouet has been assigned to this envelope (78.145.73.209) Chairman has been assigned to this envelope (78.145.73.209) Anne-Laure Bedouet has been assigned to this envelope (78.145.73.209) Document generated with fingerprint

d28ee79c95185c9037f90e955d728653 (78.145.73.209)

Wed, 15th Dec 2021 17:18:02 UTC Document generated with fingerprint ade6d2b9461a6070dca07bbfeb6958cd (78.145.73.209) Wed, 15th Dec 2021 17:17:07 UTC Envelope generated by Anne-Laure Bedouet (78.145.73.209)