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2020-08-31-accounts

Charity Number: 1153946 Company Number: 08658508

ASOS FOUNDATION

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

ASOS FOUNDATION CONTENTS FOR THE YEAR ENDED 31 AUGUST 2020

Contents Page
Company Information 1
Annual Report 2
Independent Auditors’ report to the members of ASOS Foundation
 12
Statement of Financial Activities (including income and expenditure account) 16
Balance Sheet 17
Statement of Cash Flows 18
Notes to the Financial Statements 19

ASOS FOUNDATION COMPANY INFORMATION FOR THE YEAR ENDED 31 AUGUST 2020

Reference and Administrative Information

ASOS Foundation

Charity Name: ASOS Foundation Charity registration number: 1153946 Company registration number: 08658508 Registered Office and Greater London House Operational address: Hampstead Road London NW1 7FB

Board of Trustees

Nick Robertson (Chairman) Jane Banks Nick Beighton Louise McCabe Fiona Stubbs

Company Secretary

Anna Suchopar

Independent Auditors

PricewaterhouseCoopers LLP 40 Clarendon Road Watford Hertfordshire WD17 1JJ

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ASOS FOUNDATION ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2020

The Board of Trustees (“the Board”) submit their Annual Report and the Audited Financial Statements of the ASOS Foundation for the year ended 31 August 2020.

Company Information

The organisation is a charitable company, registered in England and Wales, limited by guarantee and incorporated on 21 August 2013. It registered as a charity on 25 September 2013.

Purposes and aims

“We open doors, we remove barriers. We help young people change their lives for the better.”

ASOS Foundation creates opportunities that enable disadvantaged young people to reach their potential. The ASOS Foundation provides inspiration, education, support, infrastructure and training to enable socially or economically disadvantaged young people to overcome barriers and progress towards economic independence.

The outcome the ASOS Foundation seeks is that a young person is enabled to move from one life stage to the next. For example, from unemployment to training, from training to an apprenticeship, from homelessness to a home, or in rural Kenya to be freed from the daily need to carry water across long distances and to be able to engage in economic or personal development activities.

Ensuring our work delivers our aims

Our work is focussed in three geographical areas: The UK, India and Kenya. Our priority is to enable young adults to overcome social and economic disadvantage. The interventions we provide to achieve this vary between the three geographic areas in focus.

The ASOS Foundation works in collaboration with long-term trusted partners who are based in the regions where our projects are located. Our programmes are developed in consultation with these partners who help us ensure that funding is used appropriately, effectively, and sustainably. Trustees visit ASOS Foundation funded projects and meet with our partners, community stakeholders and young people affected by the programmes. We also engage directly with young people at a grass roots level and maximise the benefits of sharing skills and expertise from our corporate funder, ASOS.com Ltd (company number: 03584121).

We review our aims, objectives and activities each year and agree key projects for the coming twelve months. Throughout the year progress is monitored at regular Board meetings. This helps us ensure our aims, objectives and activities remain focused on our stated purposes.

We have referred to the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. The Board of Trustees consider how planned activities will contribute to the aims and objectives that they have set.

The activities of the ASOS Foundation

This section of the Report details the activities of the ASOS Foundation by geographical location.

In the UK the groups we work with are unemployed or homeless young people; young people who are underachieving in education or who have underachieved in education; young people leaving care, young offenders and ex-offenders.

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ASOS FOUNDATION ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2020

In India our partner charity Udayan Care provides homes and education for children aged six and upwards, who are homeless due to being orphaned, abused or abandoned.

In Kenya we work with two charitable trusts on community projects to relieve poverty, improve health and wellbeing and provide education. To ensure infrastructure and social projects are relevant and sustainable, consultations are held with elected groups of community representatives before any work begins.

Prior to formation of the ASOS Foundation as a registered charity (2013), the charitable activities were carried out as a charitable trust known as ‘ASOS Foundation’ under the umbrella of the Charities Aid Foundation (charity registered in England and Wales number 268369).

1. United Kingdom partnerships – Prince’s Trust, Centrepoint and OnSide Youth Zones

Prince’s Trust

This year we celebrated 10 years in partnership with The Prince’s Trust. To date we have helped over 650 young people who have taken part in our partnership programmes, and engaged with almost 50,000 young people through our digital content. On top of this raising over £1.1million to achieve even more for young people. At a time when young people are now 4.6 times more likely to face unemployment than the rest of the working age population, our partnership remains as relevant as ever.

The Prince’s Trust supports young people from 11 to 30 years old who are unemployed, and those struggling at school and at risk of exclusion. Many of the young people helped by The Prince’s Trust are in or leaving care, facing issues such as homelessness or mental health problems, or have been in trouble with the law.

The Prince’s Trust programmes funded by the ASOS Foundation give young people the practical and financial support they need to stabilise their lives. This includes helping to develop key skills, confidence and motivation, and enabling young people to move into work, education or training.

In partnership with The Prince’s Trust, the ASOS Foundation creates opportunities for young people in customer care and web design/technology. Our volunteer-led “Get Started with Web Design” course ran in Birmingham, supported 12 young people to build their confidence and skills. Due to the COVID-19 pandemic, our “Get Started in Customer Care” course was delivered by volunteers virtually, to 10 young people.

This year, in addition to providing practical skills training with The Prince’s Trust, we continued to support The Prince’s Trust online platform which provides career and soft skill resources to young people who are unable to access their courses in person.

Centrepoint

Centrepoint is the UK’s leading youth homelessness charity focussed on improving the lives of homeless young people, with a mission to prevent and eradicate youth homelessness altogether. Youth homelessness continues to be an area of concern in the UK. Centrepoint’s research highlights that over 110,000 young people seek help with homelessness in the UK every year.

The ASOS Foundation began working with Centrepoint in March 2016 as the trustees recognised that homelessness is a significant barrier for young people in the UK. We had

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ASOS FOUNDATION ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2020

become aware that many of the young people participating in The Prince’s Trust programmes were experiencing difficulties with family or housing or were already homeless. In developing a partnership with Centrepoint, we agreed that our priority was to find interventions aimed at preventing homelessness before it occurs.

The partnership developed throughout 2017 and 2018, with the ASOS Foundation enabling Centrepoint to establish its first National Youth Homelessness Helpline. The Helpline launched in March 2017, providing vulnerable young people with the information and support they need to prevent them from becoming homeless. Since inception the Helpline team has since moved into a custom built, soundproofed area within Centrepoint’s head office. This has been gamechanging in terms of impact on young people. For example, the Helpline support team can now focus on helping vulnerable young people without the distractions of background noise. It has also raised the visibility of the Helpline within Centrepoint and promoted cross-team working with the policy and media teams. This then has the additional benefit of increasing the effectiveness of Centrepoint’s advocacy work. The new facility also facilitates future expansion of the Helpline service.

In July 2019, the Centrepoint Helpline supported its 10,000th young person since opening in 2017. In the last year the helpline supported 5,431 young people, and since lockdown began earlier in 2020, the number of young people contacting the helpline who were sleeping rough had doubled.

Youth homelessness is not just a housing problem. There are many reasons why young people become homeless, including family breakdown, domestic violence and unmet mental health needs. Unless individuals are supported to overcome their personal challenges, many of which have been exasperated by the COVID-19 pandemic, the cycle of homelessness continues.

For this reason, ASOS Foundation also supports Centrepoint’s mental health and wellbeing programmes, funding key roles in delivering services to young homeless people in London and Barnsley, including a national Clinical Lead, Psychotherapy, a volunteering officer, and a skills trainer.

This year the Therapy & Healthy Relationship Services based in Barnsley has worked with 92 young people with 1:1 support, 78% of which achieved a clinical change and reduction of their symptoms.

Since September 2019, 32 young people have been supported through workshops run specifically for those that identify as LGBTQI+.

The Functional Skills and Employment Trainer has provided 32 young people with robust information, advice and guidance support covering education and employment. A further 28 young people who were NEET, were supported to achieve accredited qualifications.

Finally, the volunteer officer has helped facilitate 429 hours of volunteer service.

OnSide Youth Zones

OnSide is a UK charity with a belief that opportunities in life should be available to all young people regardless of background, ability, or location. The charity’s aim is to provide every young person across the UK with a safe and inspiring place to spend their leisure time, along with access to employability, health and sporting initiatives, which together make a huge contribution to young people’s emotional and physical wellbeing.

ASOS Foundation will be working in partnership with OnSide and Barnsley Metropolitan Borough Council with the aim of building a state-of-the-art facility in Barnsley, South Yorkshire,

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ASOS FOUNDATION ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2020

a region with significant economic and social challenges. This four-year funding programme for £1.2m was due to commence in 2019/20. Unfortunately, due to COVID-19, Barnsley Council have delayed decisions pertaining to this construction project. As a result, we are hoping to move forward with this partnership in 2020/21, pending local council approval.

2. New Delhi, India – partnership with Udayan Care

The mission of Udayan Care is ‘ a nurturing home for every orphaned child, an opportunity for higher education for every girl and for every adult, the dignity of self-reliance and the desire to give back to society.’

Udayan Ghars (homes) were set up to nurture orphaned and abandoned children in small groups, give them a loving home, family bonding and a sense of belonging, ensuring they all have opportunities to develop as capable, responsible individuals. To date Udayan care has nurtured over 25,000 young people.

For the past six years, ASOS Foundation has been raising funds to build or procure Udayan Ghars in Noida, Kurukshetra and Gurugram. The purpose-built Noida home was completed in early 2016. ASOS Foundation trustees, along with ASOS.com volunteers, and trustees from Udayan Care, attended an opening ceremony in celebration. In 2018 work was completed on a second home in Kurukshetra, which was also launched in the presence of ASOS Foundation trustees, and now provides a home for 10 girls and caregivers, as well as selfcontained aftercare apartments for 18-year olds, a computer training centre for the community and an event space for mentoring programmes. ASOS Foundation also provided funds for the homes in Noida and Kurukshetra to install solar panels.

In 2019, ASOS Foundation purchased a third Udayan Ghar in the Gurugram area of Delhi. This home was renovated and 11 girls have moved in. Trustees were present to review the project and attend the launch ceremony.

In previous years ASOS.com has further supported this partnership by giving volunteers from the UK, Berlin, Paris and New York offices the opportunity to spend a week at a Udayan home in Delhi. Unfortunately, this has not been possible this year due to COVID-19.

In 2020, ASOS Foundation funding has been directed at supporting the running costs of five homes that are looked after by Udayan Care. During the course of the financial year, these homes have been home to 51 girls and 10 boys.

3: Kenya: Partnership with SOKO Community Trust

During 2019/20 SOKO completed the final stages of the move of all the SOKO factory employees from one region of Kenya to another and the subsequent setting up of the new factory, recruitment of new employees and a needs assessment of the new region (Kikambala) by the SOKO Community Trust (SCT). It also saw the end to the charity’s community engagement in Maungu (Kasigau region). This was followed in the last part of Q1 2020 by the impact of COVID-19, which has caused disruption across all regions of Kenya.

Some of the SCT activities were inevitably halted because of the pandemic, yet they were also able to pivot to the emerging needs of the community, manufacturing masks and hygiene kits thus providing much needed personal protection and sanitation equipment whilst ensuring the team were gainfully employed and continued to deepen their skills.

Stitching Academy Project

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ASOS FOUNDATION ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2020

In June 2014 in partnership with the SCT, the ASOS Foundation launched Stitching Academy Kenya; a two-month course teaching advanced, export-standard tailoring skills. The aim of the Stitching Academy is to equip young people with the training and skills needed to enable them to set up their own businesses or take up employment with SOKO or other local manufacturers operating within the government run Export Processing Zones (“EPZs”).

Due to the specialist nature of industrial electric sewing machines, this training is very difficult for people to obtain elsewhere and the courses are in high demand. The initiative is therefore seen as a significant economic development by government and local authority representatives.

Since opening its doors in 2014, the Stitching Academy has trained 185 students. In 2019/20, the ASOS Foundation provided 30 students with the opportunity to spend four months at the Academy. Unfortunately, the course had to be temporarily paused halfway through because of the pandemic.

Stitching Academy Hub

Following the success of the Stitching Academy, ASOS Foundation provided funding for the SCT to set up a business hub sited next to the Stitching Academy, offering graduates low-cost space and equipment to rent along with mentoring and support This enabled graduates to set up their own enterprises, or to use their skills to make garments for family members.

In Quarter 1, 18 graduates from the Stitching Academy joined the Hub. In the same month six of these graduates gained employment in a variety of different clothing and textile industries around the country.

Unfortunately, at the start of Quarter 3, due to COVID-19 restrictions, the hub was forced to close. Following engagement with the local authorities by Quarter 4 it was permitted to open, but only for a maximum of 13 members.

The Impact of the Stitching Academy Hub

The average student debt prior to joining was £115 but this dropped to £15, six months after graduation. Moreover, the average wage after graduation was £81 a month, up £54 from an average £27 a month (which is £8 a month below Kenya’s poverty line) before undertaking the course.

The survey also revealed wider employment outcomes. To date, of the 185 graduates, 15% are employed at the SOKO Factory (this number continues to grow as orders in the factory increase), 14% have joined other factories, 24% are self-employed and 7% are working from the Stitching Academy Hub. Unfortunately, a number remain unemployed and 12% have lost their jobs due to COVID-19 issues in Kenya.

Water Sanitation and Hygiene (WASH) Projects

ASOS Foundation funding also enabled various WASH projects to be completed in SCT local communities. Three ventilated improved pit latrines were constructed as well as renovations on gutters and rainwater tanks in a further eight schools, providing much needed rainwater collection. These WASH projects enable girls to have privacy and sanitation options during their period.

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ASOS FOUNDATION ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2020

Kujuwa Initiative

The Kujuwa Initiative supports access to education for young women and girls. The initiative (which translates to The Knowledge Initiative) provides health education and practical support for girls who regularly miss school due to a lack of affordable sanitary protection.

The SCT worked with the ASOS Foundation to develop washable, reusable and comfortable sanitary pad designs. The pads were developed following extensive consultation with local women and tested by SOKO employees. They are now made by members of the Stitching Academy Hub, using scraps of waste fabrics from ASOS.com Made in Kenya garment production. Each washable pad comes with removable liners and lasts for up to three years. They have a discreet, portable, attractive design and the removable liners unfold to a simple square, allowing for discretion when washing and drying.

Girls are provided with KIT (Keep It Together) bags, containing two pairs of cotton briefs, two sanitary pads with removable liners, a bar of soap and a waterproof wash bag.

Over the course of the last two years there has been an increased rate of girls transitioning from primary to secondary school. Through continued engagement with the 1250 girls that received training, it was clear that they were continuing to face challenges in their community. We therefore expanded the scope of the education programme to include schoolboys, educators and parents. Nearly 700 boys went through training and received a health kit. Furthermore, the programme also raised awareness amongst 265 parents (203 women and 63 men).

As part of the project, a more intensive three day residential camps were provided which were focused on breaking down taboos. Two camps were completed, one for girls and one for boys with over 40 in each camp. As a result, the young people left with a deeper knowledge and understanding about their bodies and those of the opposite sex and received encouragement and guidance as to how to make informed healthy life choices.

COVID-19 Response

In light of widescale closures due to COVID-19 in Q2/Q3 2020 the SCT Team focussed their attention on responding to the immediate needs of the local Kikambala community. The team, working closely with the Red Cross, distributed 3,500 hygiene packs over a 5 month period. Not only did this provide a vital service during difficult times, it raised awareness of the SCT, ASOS Foundation and its mission and values.

How our activities deliver public benefit

The ASOS Foundation works with trusted registered charities to deliver programmes and infrastructure to support socially or economically disadvantaged young people. Our charitable purposes therefore come under the categories of prevention and relief of poverty, education and training, overseas aid, community development, children and young people.

Financial review

For the year ended 31 August 2020 the ASOS Foundation recorded a net increase in funds of £213,137 (2019: Increase of £240,939).

Principal funding sources

The ASOS Foundation’s principal funding source during the financial year ended 31 August 2020 was its corporate funder ASOS.com Limited which donated £579,459 (2019: £720,809).

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ASOS FOUNDATION ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2020

The ASOS Foundation has also received sample sale donations run by ASOS.com Limited of £142,074 (2019: £268,734) and donations of £52,829 (2019: £63,004) from customers and employees. Other smaller funding sources include supplier donations (see note 2).

Going concern

The Board believes that preparing Financial Statements on a going concern basis is appropriate due to the continued financial support of ASOS.com Limited. The Board has received confirmation that ASOS.com Limited intend to support the ASOS Foundation for at least 12 months from the date these Financial Statements are approved.

Plans for future periods

ASOS.com Limited resumed its corporate donation in August 2020 which will help fund future projects. Funding will also be generated from ASOS.com Sample Sales and via ASOS.com and supplier supported fundraising events. Our plans for 2020/21 and beyond have taken this into account, and the Board is confident that the plans below are fully funded. The Board intends to continue to work with all existing partners, including new partner OnSide Youth Zones.

UK To fund a transformational state-of-the-art youth facility in Barnsley in partnership with OnSide Youth Zones and Barnsley Metropolitan Borough Council.

To continue our partnership with Centrepoint, funding the national homelessness helpline, a Clinical Lead post and mental health practitioner roles in Barnsley.

To continue our partnership with The Prince’s Trust, with a focus on providing increased access to careers in technology and customer care.

India To continue annual funding of the support costs for children in five Udayan Ghars in Greater Noida, Mayor Vihar, Noida, Gurugram and Kurukshetra. (indicates homes which were built with ASOS Foundation funding).

Kenya To support the Stitching Academy at Kikambala,

To work closely with SOKO Community Trust as they work to help community members build sustainable livelihoods and lift themselves out of poverty.

To continue to support the WASH (water and hygiene programme) for schools.

To continue to fund the Kujuwa Initiative, supporting girls’ menstrual health and education, and increasing awareness of sexual and menstrual health amongst and boys and men.

To continue to offer Stitching Academy graduates the opportunity to use SOKO Community Trust facilities to run small enterprises.

Funding To establish a 3 year funding plan between the ASOS Foundation and ASOS.com Ltd.

To further develop communications and fundraising activities, including external events, and promotion of payroll giving, and further engaging the employees and customers of ASOS.com Limited.

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ASOS FOUNDATION ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2020

Brexit Implications

A trade agreement was reached between the EU and UK on 24 December 2020. In light of this, it is important that consideration is taken to how and if this will impact ASOS Foundation going forward. It is likely that impact to ASOS Foundation will be limited but the Trustees will continue to monitor the situation.

Structure, Governance and Management

Governing Document

The ASOS Foundation is a charitable company limited by guarantee governed by its Articles of Association. It is registered as a charity with the Charity Commission. In the event of the company being wound up members are limited to a liability of £1.

Appointment of Trustees

The Board are also charity trustees for the purposes of Charity law. The term of appointment for the Trustees has not been specified; therefore, Trustees remain in office until they cease to hold office in accordance with Article 26 of the Articles of Association (Disqualification and Removal of Trustees). In line with the Charity Governance Code, it has been agreed by the Trustees that if a Trustee has served for more than nine years, their reappointment should be subject to a rigorous review and explained in the financial statements of the ASOS Foundation.

Current Trustee Tenure as at 31 August 2020:

Trustee Date of Appointment Tenure
Nick Robertson 21 August 2013 7 years, 1 month
Jane Banks 18 November 2013 6 years, 10 months
Nick Beighton 21 August 2013 7 years, 1 month
Louise McCabe 21 August 2013 7 years, 1 month
Fiona Stubbs 5 December 2013 6 years, 9 months

All Trustees give their time voluntarily and receive no benefits from the charity.

Trustee Induction and Training

New Trustees undergo orientation briefings regarding their legal obligations. They also receive information on the Board of Trustees, decision-making processes and the business plan. During the induction period they meet key personnel and other Trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

Organisation

The Trustees administer the charity and usually meet quarterly. To facilitate effective operations and the day to day running of the Foundation, the Trustees have delegated authority, within the terms of delegation approved by the Trustees, to the ASOS.com Limited Corporate Responsibility team and the ASOS.com Limited Finance team who provide regular management accounts. The delegated powers include managing the charity by implementing the policy and strategy within the budget approved by the Trustees and advising the Trustees in relation to such policy, strategy, and budget. The Trustees ensure that appropriate financial

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ASOS FOUNDATION ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2020

and operating controls are in place to ensure that the Charity’s purpose is followed by setting authority levels for operating expenditure and funding grants.

Trustees’ Responsibilities in relation to Financial Statements

The Trustees (who are also directors of ASOS Foundation for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulation.

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have prepared the financial statements in accordance with United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law (United Kingdom Generally Accepted Accounting Practice). 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 the affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The Trustees are responsible for keeping adequate 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.

The Trustees are responsible for the maintenance and integrity of 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.

Statement of Disclosure to our Independent Auditors

The Board of Trustees, who served during the year and up to the date of this Report are set out on page 1. The Trustees are also Directors. In so far as the Trustees are aware at the time of approving the Annual Report:

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ASOS FOUNDATION ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2020

On behalf of the Board of Trustees

Nick Beighton Trustee

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ASOS FOUNDATION INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF ASOS FOUNDATION FOR THE YEAR ENDED 31 AUGUST 2020

Independent auditors’ report to the members of ASOS Foundation

Report on the audit of the financial statements

Opinion

In our opinion, ASOS Foundation’s financial statements (the “financial statements”):

We have audited the financial statements, included within the Annual Report and Financial Statements (the “Annual Report”), which comprise: the balance sheet as at 31 August 2020; statement of financial activities, statement of cash flows for the year then ended; the accounting policies; and the notes to 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 ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

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

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which ISAs (UK) require us to report to you when:

However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the charitable company’s ability to continue as a going concern.

Reporting on other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.

Based on the responsibilities described above and our work undertaken in the course of the audit, ISAs (UK) require us also to report certain opinions and matters as described below.

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ASOS FOUNDATION INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF ASOS FOUNDATION FOR THE YEAR ENDED 31 AUGUST 2020

Report of the Board of Trustees

In our opinion, based on the work undertaken in the course of the audit the information given in the Report of the Board of Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and the Report of the Board of Trustees has been prepared in accordance with applicable legal requirements.

In addition, in light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we are required to report if we have identified any material misstatements in the Report of the Board of Trustees. We have nothing to report in this respect.

Responsibilities for the financial statements and the audit

Responsibilities of the trustees for the financial statements

As explained more fully in the Trustees’ Responsibilities in relation to Financial Statements set out on page 10, 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 in accordance with the applicable framework and for being satisfied that they give a true and fair view. The trustees are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In 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.

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

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

Use of this report

This report, including the opinions, has been prepared for and only for the charity’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

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ASOS FOUNDATION INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF ASOS FOUNDATION FOR THE YEAR ENDED 31 AUGUST 2020

Other required reporting

Companies Act 2006 exception reporting

Under the Companies Act 2006 we are required to report to you if, in our opinion:

We have no exceptions to report arising from this responsibility.

Entitlement to exemptions

Under the Companies Act 2006 we are required to report to you if, in our opinion, the Trustees were not entitled to: prepare financial statements in accordance with the small companies’ regime; and take advantage of the small companies exemption from preparing a Strategic Report. We have no exceptions to report arising from this responsibility.

Andrew Latham (Senior Statutory Auditor) for and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors London January 2021

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ASOS FOUNDATION STATEMENT OF FINANCIAL ACTIVITES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2020

Note
Income:
Donations
2
Other trading activities
Total income
Expenditure:
Cost of raising funds
Charitable activities
3
Other Costs
Staff Costs
4
Total expenditure
Net income
Net gain/(loss) on investment
5
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
Year ended
31-Aug-20
£
789,345
179,340

968,685
(21,460)
(670,576)
(21,545)
(61,289)

(774,870)
193,815
19,322
213,137
879,728
1,092,865		 Unrestricted Funds
Year ended
31-Aug-19


£
1,119,958
218,988
1,338,946
(117,953)
(850,315)
(29,402)
(71,809)
(1,069,479)
269,467
(28,528)
240,939
638,789
879,728

All income and expenditure are derived from continuing activities.

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ASOS FOUNDATION BALANCE SHEET AS AT 31 AUGUST 2020

Note
Non-Current Assets
Investments
5
Current Assets
Cash at bank and in hand
Prepayments
6
Accrued Income
7
Current Liabilities
Accruals
8
Payables
9
Net Assets
The funds of the charity:
Unrestricted funds
Total charity funds		 As at
31-Aug-20
£
37,505
1,068,540
29,700
25,450

(59,000)
(9,330)
1,092,865
1,092,865
1,092,865		 As at
31-Aug-19
£
18,183
850,369
31,460
26,571
(46,855)
-
879,728
879,728
879,728

Notes 1 to 13 on pages 19 to 24 form part of the Financial Statements.

The Trustees have prepared the Financial Statements in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These financial statements are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the Annual Financial Statements required by the Companies Act 2006 and are for circulation to members of the company

The Financial Statements of the ASOS Foundation, registered number 08658508 on pages 16 to 24, were approved by the Board of Trustees and authorised for issue on 25 January 2021 and were signed on its behalf by:

Nick Beighton Trustee

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ASOS FOUNDATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2020

Note
Net cash provided by operating
activities
13
Cash and cash equivalents at the
beginning of the year
Increase in cash and cash equivalents in
the year
Total cash and cash equivalents at
the end of the year		 Year ended
31-Aug-20


£
218,171
850,369
218,171
1,068,540		 Year ended
31-Aug-19
£
383,797
466,572
383,797
850,369

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ASOS FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING CONVENTION AND POLICIES

The following principal accounting policies have been applied consistently in dealing with items which are considered material to the Charity’s Financial Statements:

Accounting convention

The Financial Statements for the year ended 31 August 2020 have been prepared under the historical cost convention and are in accordance with the Companies Act 2006 applicable United Kingdom law and accounting standards.

The charity has opted to prepare its Financial Statements using the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102) and follow the Charities SORP.

As a charity registered in England and Wales, the charitable company also reports in accordance with the Charity Commission for England and Wales’ guidance on public benefit and the Charities Act 2011.

The Financial Statements are presented in sterling and all values are rounded to the nearest pound except where otherwise indicated.

The Financial Statements have been prepared on a going concern basis as explained in the Annual Report on page 9.

Accounting policies

a) Income

Donations are included in the Statement of Financial Activities when the ASOS Foundation is legally entitled to the income, receipt is probable and its amount can be measured reliably.

Income from Other Trading activities relates to income from fundraising events held by the ASOS Foundation and is recognised in the period when the event takes place.

b) Expenditure

Expenditure is accounted for on an accruals basis and is classified as relating to fundraising or charitable activities, as appropriate.

c) Fund accounting

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.

d) Investments

Investments are initially recognised at cost and subsequently revalued at fair value. The gain/loss arising on the revaluation of shares is recognised in both the Statement of Financial Activities and the Balance Sheet.

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ASOS FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. ACCOUNTING CONVENTION AND POLICIES (continued)

e) Debtors

Debtors include prepayments and accrued income. Debtors are non-interest bearing and are initially recognised at fair value. Subsequently they are measured at amortised cost using the effective interest rate method less provision for impairment. A provision for impairment of receivables is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivable.

f) Creditors

Creditors include accruals. Creditors are non-interest bearing and are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

2. DONATIONS

2. DONATIONS
ASOS.com Limited Donations
Supplier Donations
Employee Donations
Sample Sale Donations
Engage Income
Active Income
Other Income
Total		 Year ended
Year ended
31-Aug-20
31-Aug-19
Unrestricted
Unrestricted
Funds
Funds
£
£
579,459
720,809
2,000
1,053
52,829
63,004
142,074
268,734
-
7,618
12,983
38,250
-
20,490
789,345
1,119,958

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ASOS FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

3. CHARITABLE ACTIVITIES

Unrestricted funds raised by the ASOS Foundation were donated to the following charities:

UK: The Prince’s Trust
UK: Centrepoint
India: Udayan care
Kenya: Project pipeline
Total		 Year ended
Year ended
31-Aug-20
31-Aug-19
Unrestricted
Unrestricted
Funds
Funds
£
£
56,000
130,000
341,200
318,990
97,625
77,525
175,751
323,800
670,576
850,315

4. STAFF COSTS

As at year ended 31 August 2020, there were 6 staff members (2019: 8 staff members) who work for ASOS.com but had contributed their time to the Foundation. The estimated value of this time is below:

Wages and salaries
Social security costs
Pension costs
Total		 Year ended
Year ended
31-Aug-20
31-Aug-19
£
£
51,931
59,959
6,323
7,469
3,035
4,381
61,289
71,809

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ASOS FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

5. INVESTMENTS

At 31 August 2019 and at 31 August 2020, ASOS Foundation held an interest in the following company:

Name of
company		 Country of
registration		 Proportion of
ordinary shares heldNature of business		 Proportion of
ordinary shares heldNature of business
Global fashion retailer Group
ASOS Plc United Kingdom 0.001% company

The value per share as at 31 August 2020 was £49.09 (31 August 2019: £23.80), resulting in an investment value of £37,505 (2019: £18,183).

6. PREPAYMENTS

Prepayments represent amounts paid in advance for future events. At 31 August 2020 £29,700 was paid in advance of the ASOS Foundation Charity Gala to be hosted in 2021.

ASOS Foundation Charity Gala
Total		 As at
As at
31-Aug-20
31-Aug-19
£
£
29,700
31,460
29,700
31,460

7. ACCRUED INCOME

Accrued income represents donations receivable but not yet received in cash. At 31 August 2020 this was made up of a donation from ASOS.com relating to Christmas Jumper sales, fundraising events income and one-month of sample sale donations which had not yet been received in cash.

Christmas jumper donation
Fundraising events income
Sample sale donations
Gift Aid
Total		 As at
As at
31-Aug-20
31-Aug-19
£
£
18,170
-
7,000
-
280
25,391
-
1,180
25,450
26,571

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ASOS FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

8. ACCRUALS

Accruals represent amounts due but not yet paid.

Udayan care instalment
Audit fee accrual
Total		 As at
As at
31-Aug-20
31-Aug-19
£
£
45,000
37,525
14,000
9,330
59,000
46,855

9. PAYABLES

Payables represent the FY19 audit fee which was paid on behalf of ASOS Foundation by ASOS.com.

Audit fee payable to ASOS.com
Total		 As at
As at
31-Aug-20
31-Aug-19
£
£
9,330
-
9,330
-

10. GRANT CREDITORS AND COMMITMENTS

During the year, £nil of non-binding commitments were made (2019: £1.2m).

Amounts due for payment in the year to 31 August

Creditors Total
£’000
2021
£’000
2022
£’000
2023
£’000
2024
£’000
1,200
300
300
300
300

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ASOS FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

11. TRUSTEES’ REMUNERATION & RELATED PARTY TRANSACTIONS

No members of the Board received any remuneration during the year (2019: None).

No trustee or other person related to the charity had any personal interest in any contract or transaction entered by the charity during the year ended 31 August 2020 (2019: None).

Nick Beighton, a Trustee of the Foundation, is also a Director at ASOS.com Limited. During the Financial year, ASOS.com Limited donated £579,459 (2019: £720,809) to the Foundation.

Nick Robertson donated £50,976 to the Foundation during the year ended 31 August 2020 (2019: £61,055).

12. TAXATION

ASOS Foundation is a registered charity and as such is potentially exempt from taxation of its income and gains, to the extent that they fall within the charity exemptions in the Corporation Tax Act 2010 or Section 256 Taxation of Chargeable Gains Act 1992. No tax charge has arisen in the year.

13. RECONCILIATION OF NET MOVEMENT IN FUNDS FOR THE YEAR TO NET CASH PROVIDED BY OPERATING ACTIVITIES

Net movement in funds for the year
Adjusted for:
(Gain)/Loss on Investments
Decrease in Prepayments
Decrease in Accrued Income
Increase in Payables
Increase in Accruals
Net cash provided by operating
activities		 Year ended
Year ended
31-Aug-20
31-Aug-19
Unrestricted
Funds
Unrestricted
Funds
£
£
213,137
240,939
(19,322)
28,528
1,760
86,244
1,121
27,231
9,330
-
12,145
855
218,171
383,797

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