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Company registration number: 08908420 Charity registration number: 1155954
## The OVO Charitable Foundation
(A company limited by guarantee)
Annual Report and Financial Statements
for the Year Ended 31 December 2021
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## **The OVO Charitable Foundation**
## **Contents**
||**Page(s)**|
|---|---|
|Reference and Administrative Details|1|
|Trustees' Report|2 to 19|
|Statement of Trustees' Responsibilities|20|
|Independent Auditors' Report|21 to 23|
|Statement of Financial Activities|24|
|Balance Sheet|25|
|Cash Flow Statement|26|
|Notes to the Financial Statements|27 to 30|
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## **The OVO Charitable Foundation**
## **Reference and Administrative Details**
**Trustees / Directors** Samuel Kasumu (resigned 2 May 2021) Gina Cicerone Katherine Goldsmith Phillip Kerry Raman Bhatia (resigned 22 April 2022) Oluwakemi Akindele (appointed 7 December 2021) Thomas Wilson (appointed 7 December 2021) Charlotte Eaton (appointed 22 April 2022) **Principal and Registered Office** 1 Rivergate Temple Quay Bristol United Kingdom BS1 6ED **Company Registration Number in** 08908420 **England Charity Registration Number in** 1155954 **England Independent Auditors** PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors 2 Glass Wharf Bristol BS2 0FR
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## **The OVO Charitable Foundation**
## **Trustees' Report**
The trustees (who are also the charitable company’s directors for the purposes of company law) present their Trustees' report together with the audited financial statements of the charitable company for the year ended 31 December 2021. These financial statements have been prepared under FRS 102 and the Charity SORP (FRS102).
The trustees' report also contains information required in a directors’ report as required by company law.
## **A note from our Chair**
In 2020, Covid created an incredibly uncertain and disruptive year. This carried on into 2021, however we, and all of our charity partners, carried on adapting to our new way of working and were able to achieve a significant amount in 2021.
We are delighted to announce that over 2021, we benefited 183,510 children and adults across 340 communities in the UK and Kenya. We are also pleased to share details of the impact we had on the environment. Particular highlights include: planting 6,000 trees to create 10 Tiny Forests in less advantaged parts of the UK, reducing electricity consumption by 10% in 226 UK schools as part of our Energy Sparks partnership, and avoiding 10.3 tonnes of carbon emissions through Project Jua’s installation of solar panels in Kenyan schools and health clinics. These achievements reflect our renewed commitment to empower and educate children and young people to take action on the climate crisis.
We pivoted our strategy to take urgent action on the climate crisis. As such, we ended our early years programme, “When I Grow Up”. We are incredibly proud of the work the three charities did over our two-year partnership, and in particular want to highlight how successfully they adapted their delivery models to continue reaching young children and families during the pandemic. The Sutton Trust and the Institute for Employment Studies concluded their evaluation of “When I Grow Up” with practical recommendations for how the early years sector can build on the new online resources and skills that projects developed, and we hope these will be incorporated throughout the wider system. We also ended our OVO Gives Back programme and instead replaced it with a nationwide partnership with The Wildlife Trusts. Although we are delighted to have supported tens of local charities over the past five years - providing £100,000s in small grants and enabling thousands of volunteering hours - we made the switch to a single partner given the urgency of the climate crisis and need for immediate action.
I’d like to thank Samuel Kasumu, who stepped down from the board, for his long standing service to and support of the Foundation, and also welcome our two new trustees, Tom Wilson and Kemi Akindele. Tom and Kemi bring diverse lived experience and expertise in youth voice, campaigning and communications to the board. They are brilliantly placed to support the Foundation to deliver on its vision to give all children and young people a greener, fairer future - and also make sure we are communicating our vision, purpose and impact in the best way possible. This presents a real opportunity for the OVO Foundation in 2022, and we’ll be developing our strategy further to ensure our resources can best meet the challenges that people and the planet face. We look forward to the journey ahead.
Gina Cicerone
Chair of Trustees
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## **The OVO Charitable Foundation**
## **Trustees' Report**
## **Introducing The OVO Charitable Foundation**
## Our Theory of Change
The OVO Charitable Foundation is OVO group’s charitable arm and is funded by OVO group customers as well as OVO Energy Ltd. It was created in 2014 with a mission to support inspiring organisations with smart ideas that give young people a better future. We undertook a strategic review in 2019 and agreed on a revised vision which launched in 2020. This vision seeks to ensure that all children and young people have equitable access to a sustainable future and complements the work OVO Energy Ltd is doing through Plan Zero, its 10-year vision to drive progress towards zero-carbon living.
At the beginning of 2021, we worked closely with our partners to capture the anticipated positive change from our programmes in a Theory of Change:
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## **The OVO Charitable Foundation**
## **Trustees' Report**
We have also revised the monitoring and evaluation frameworks for each of our programme areas to better capture data to track our progress, including our two long-term outcomes:
• Equip disadvantaged children and young people with improved skills, knowledge and confidence to take action on sustainability issues and contribute to building sustainable communities.
• Ensure disadvantaged children and young people live in a sustainable community with increased access to green spaces and opportunities in education, employment and health.
## Our learning
We have improved our monitoring and evaluation to ensure that we are capturing reliable data which helps us to track achievements and challenges, including in the practical delivery of the programmes that we fund. We remain committed to also sharing our learnings to help funders, charities and others in our network become more effective in their own grantmaking and delivery. The backdrop of the pandemic throughout 2021 made it more crucial than ever to capture useful findings as our partners adapted their implementation to meet immediate needs of those they serve, as well as navigate longer term changes. We took this into account when collaborating with a number of organisations who helped us to conduct and publish research with practical recommendations across themes of energy access, youth homelessness and educational inequality, details of which are included in this report.
We will continue refining our monitoring and evaluation, including our organisational Theory of Change, as our strategy develops in 2022.
## Our 2021 achievements
In addition to the progress of the programmes that we fund, our key achievements for 2021 include:
• Investing over £790,000 in our projects.
• Reaching over 78,000 beneficiaries in the UK and Kenya.
• Reporting for the first time on our progress against the Funder Commitment on Climate Change, which we signed in 2020, including how we are committing resources to accelerate work that addresses the causes and impacts of climate change.
• Beginning a new partnership with the Wildlife Trust to protect the natural environment in our local communities.
• Supporting activity at COP26 through the funding of our Climate Changers programme, including planting a Tiny Forest in Glasgow and supporting young people to present ideas for their own environmental projects. • Publishing a report on Project Jua with Imperial College London to help inform the system sizing of other energy access programmes.
• Collaborating with End Youth Homelessness to publish an impact report on our Future Builders programme, which told the stories of young people who had benefited and how they have been supported during the pandemic in particular.
• Publishing a report on our ‘When I Grow Up’ programme in collaboration with The Sutton Trust and the Institute for Employment Studies (IES), which shared our learning on educational inequality ahead of our funding coming to an end.
• Working with the Carbon Trust to measure the carbon emissions avoided through Project Jua.
• Completing a governance review using the Charity Governance Code as a framework and updating all of our policies.
• Appointing two new Trustees - Kemi Akindele and Tom Wilson - to our Board.
• Launching a forecast Social Return on Investment analysis for The OVO Charitable Foundation and each of our programmes endorsed by Social Value UK (results to be published in 2022).
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## **The OVO Charitable Foundation**
## **Trustees' Report**
## **Programmes, activities and performance**
As shown in our Theory of Change, The OVO Charitable Foundation has thematic areas of focus which all contribute to giving children and young people equitable access to a sustainable future. The OVO Charitable Foundation’s board of trustees is responsible for approving the funding of our programmes, and all have regard to the Charity Commission’s guidance on public benefit.
In 2021, the activities of our programmes centred around:
## **(1) Delivering early years interventions in less advantaged communities to narrow the educational inequality gap**
- When I Grow Up Overview and objectives
Following research which identified that the attainment gap begins in the early years (0-5), we designed a programme in 2019 called When I Grow Up. Not only is it at this early stage where the gap for less advantaged children begins but it is also where the biggest gains can be made once addressed.
We ended the programme in 2021, but prior to that the objectives were to:
• Close the disadvantage gap in early years for children from less advantaged families in deprived areas of the UK;
• Develop children’s communication, language and early literacy behaviours to reduce the word gap; and
• Engage and involve parents in positive behaviours to create a strong and effective home learning environment.
We selected three organisations to work with to deliver the programme and approved funding of £240,000 for the two-year period (2019-2021):
## **1) Doorstep Library**
Doorstep Library works with the hardest to reach families and uses volunteers to provide a weekly reading and library service directly to family homes in targeted and deprived areas.
## **2) Parental Engagement Network (PEN)**
PEN trains early years staff to build effective working relationships with parents in order to support and provide opportunities for early literacy and children’s school readiness.
## **3) Tales Toolkit**
Tales Toolkit works with staff in early years settings to deliver play-based storytelling to develop language, literacy and socioemotional skills.
We also provided additional capacity building support to the three partners by allocating additional funding to The Sutton Trust and IES to support with monitoring and evaluation.
The funding for this programme ran until July 2021 and, in line with The OVO Charitable Foundation’s revised strategy and focus on tackling the climate crisis, we did not allocate further funding to this programme.
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## **The OVO Charitable Foundation**
## **Trustees' Report**
## - When I Grow Up Activity in 2021
## **Adapting to disruption from Covid-19**
As we had seen in 2020, the pandemic continued to disrupt delivery of the When I Grow Up projects. Closure of educational settings such as schools and nurseries for the majority of children in the first three months of 2021 meant practitioners could not operate in the usual way. While the project teams were able to revert to approaches they had developed during closures in 2020, such as providing resources directly to children’s homes, it inevitably impacted on their ability to engage children and their families in the project activity.
## **Capturing learnings from Covid-19 disruption**
The pandemic further exposed educational inequality, such as the gap between children with access to the internet at home and those who were unable to use the internet to support their learning. It therefore became even more important to document the ways in which projects had adapted to support less advantaged children. Our original plans for working with IES and the Sutton Trust on the projects’ monitoring and evaluation were adapted to meet this emerging need and provide practical recommendations to continue addressing the attainment gap in future.
## - When I Grow Up 2021 performance
Our partners have demonstrated great responsiveness and flexibility throughout the pandemic, as was seen in 2020. The projects not only continued as much as possible to support children’s learning but also provided familiarity and consistency to families. We are extremely appreciative of what the teams have been able to achieve during this very challenging time.
## **Doorstep Library**
Doorstep Library used the grant from The OVO Charitable Foundation to focus more on under 5s, including developing new training for volunteers to better engage this age group. Unfortunately their volunteer-led sessions, which provide books and encourage parents and carers to read at home, were forced to stop during the pandemic. However, they were able to instead offer virtual interactive story sessions, weekly newsletters and an updated website with guides for parents and carers on how to support children’s reading at home. When possible, they sent books to children’s homes, held reading sessions on doorsteps and began new read and play sessions for under five year olds.
Our funding to IES and the Sutton Trust helped Doorstep Library create a Theory of Change with a focus on early years, which they can continue to use in the future to monitor and evaluate their work. Initial plans to survey parents were replaced with interviews with Doorstep Library, the results of which are recorded in our final report and note the rapid changes made to their activities during the pandemic. During the grant, Doorstep Library reached 676 children under the age of 12, through over 4,300 home-based reading sessions. They were introduced to books, supported in their communication skills and encouraged to develop a love of reading for pleasure outside of the school environment. In total, 200 early years packs (with information for parents and carers to use in the home learning environment) were shared with families to support the learning of children under 5. Doorstep Library reported in their impact report in July 2020 that 95% of participating parents saw an increase in their child’s enjoyment of reading and books.
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## **The OVO Charitable Foundation**
## **Trustees' Report**
## **Parental Engagement Network (PEN)**
PEN had been working with The OVO Charitable Foundation previously in Liverpool so this grant meant they were able to expand their activities into new communities in the North West of England. They moved meetings and training with practitioners online during the pandemic and, recognising that many families they work with don’t have access to technology, they took resources direct to homes where possible. The soft toy mouse given to children to be used in sessions continued to help connect practitioners to parents, carers and children even through remote learning. PEN reported that practitioners also continued to gain the knowledge, skills and confidence to improve their interactions with less-engaged parents and carers.
During the grant PEN also refined their existing Theory of Change with support from IES and the Sutton Trust. Further work on their evaluation was planned to analyse data on children’s outcomes but this was replaced with an interview with the delivery team, two parent interviews and seven interviews with school staff. More families engaged with the project than PEN had initially expected; by the end of the first year over 1,500 children had participated in the Mouse Club literacy sessions and they reached over 2,000 children by the end of the grant. Though data collection was disrupted when project delivery moved online, PEN engaged over 600 parents and carers in literacy sessions and 83% reported feeling more confident in supporting their children's literacy activities after joining the programme. In addition, 57 early years practitioners were trained by PEN and, following their participation, 100% reported feeling confident in supporting hard to reach families to engage in their children’s learning. PEN also reported that 100% of the schools and settings they work with planned to make systemic change to sustain the programme beyond PEN’s involvement.
## **Tales Toolkit**
The grant from The OVO Charitable Foundation helped Tales Toolkit to focus on directly involving parents and carers in their activities via resources and training for practitioners on how to engage families. The team used their focus on storytelling to create illustrations which helped children to express their emotions during the pandemic. They also ensured that objects from around the home could be used in their resources which supported families without access to electronic devices.
The Sutton Trust and IES worked with Tales Toolkit to turn existing draft Theory of Change models into one model encompassing practitioners, parents and carers. They held interviews with the delivery team, parents and practitioners to capture how their delivery had responded to Covid-19 instead of the original plan to focus on children’s language and communication outcomes. Training developed by our grant will be available for free to all Tales Toolkit schools as part of their training package at no additional cost. This will reach at least 273 settings and more than 8,190 families per year. The team developed the home learning area of their website which has also extended their reach and parents reported that the continuity for children who had used the Tales Toolkit storytelling framework in class really helped during lockdown as they were already familiar with the resources and excited to be using them at home.
## **The Sutton Trust and IES**
The final report from The Sutton Trust and IES was published in February 2021 (available here: https://www.ovofoundation.org.uk/early-years-projects-feb-2021/). We shared the findings on our website as well as with key contacts who are working in this field to help inform future early years projects. As well as the report documenting the projects’ impressive response to the pandemic, project teams have commented on how helpful the initial sessions with The Sutton Trust and IES also were in developing their monitoring and evaluation frameworks.
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## **The OVO Charitable Foundation**
## **Trustees' Report**
## A final note on When I Grow Up
Although we no longer focus on early childhood education, we are incredibly proud of the impact we’ve had in our two years of partnerships, and most importantly with the sheer determination and resilience our partners have faced in the midst of Covid-19. They remain totally committed to improving communication and language skills in early years and we wish them the very best of luck with future programmes.
## **(2) Supporting young people at risk of homelessness to access housing and education, employment and training (EET)**
## Future Builders - Overview and objectives
Our Future Builders programme was developed in 2016 in collaboration with a local youth homelessness charity in Bristol. Its aim was to break the cycle of homelessness for young people aged 16-25 and help them to pursue independent lives; originally by engaging them in construction training and experience but since broadening to access any education, employment or training (EET). The programme is currently running in Bristol, Norfolk, Sheffield and Perth.
Through Future Builders, young people can support the refurbishment of semi-derelict properties - owned by local councils and housing authorities - to help create new homes. They can then live in safe and high-quality homes at a significantly reduced rate, which means they can save up money to support them in their pathway to independent living while also being supported in EET.
The anticipated outcomes of the programme, which we collect data on, are for young people to:
- Make progress with their identified needs;
- Achieve qualifications;
- Gain professional experience;
- Maintain tenancy;
- Save money;
- Sustain employment; and
- Move on to positive accommodation pathway, and ultimately live independently.
There is also an assumption that progress on the above will help young people to grow and sustain their wellbeing, though we don’t collect and analyse data on this specifically.
Another important element of the programme is creating sustainable housing. By refurbishing semi-derelict properties we are bringing them back into use, not only when they are leased to our charity partners for the Future Builders programme but also for years in the future.
## Future Builders - Activity in 2021
## **Adapting to disruption from Covid-19**
The pandemic continued to disrupt the delivery of Future Builders during 2021, such as preventing support workers from meeting up with the young people and delaying refurbishment of properties as contractors were unable to visit sites. Meanwhile, an increased number of young people faced unemployment and mental health challenges and required more support from our partners. Young people were provided with additional budgeting, wellbeing and employability support from partners as required, though their support could only go some way to address the scale of challenge for young people during this extremely difficult period.
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## **The OVO Charitable Foundation**
## **Trustees' Report**
## **Collaborating with other organisations**
In 2021 we continued our work with End Youth Homeslessness (EYH) who helped to oversee the delivery of Future Builders across its four locations. Together we produced an impact report which captured the achievements of the programme during 2020 and 2021, and particularly the challenges of this period during the pandemic for young people. It also told the positive stories of young people being supported by Future Builders to find EET. For example, Jake from Bristol lived in a Future Builders home while studying. Alongside support to pursue his ambitions, Future Builders provided Jake with a stable and affordable home. He felt more settled and was able to pass his exams, securing his place to study Business at university. Before he left Bristol, he spoke at our charity partner's conference, inspiring everyone with his story and sharing how Future Builders had allowed him to get to where he wanted to be. The report was posted with a blog on our website (available here: https://www.ovofoundation.org.uk/future-builders-supporting-young-homeless-people-during-coronavirus/) and shared with our peer organisations also working in this space, such as other charities, foundations and local authorities.
We continued our collaboration with the Andrew’s Charitable Trust (ACT) in 2021 following their purchase of a semi-derelict property in Bristol. We introduced ACT to the Centre for Sustainable Energy (CSE) who conducted a retrofit assessment on the property to consider the steps required in order to make the property more sustainable and the order in which to implement them. ACT took these measures into account during their refurbishment and the property is now supported by staff who work on Future Builders in Bristol.
We have also started to work with CSE in 2021 to better align Future Builders with our new strategy of helping children and young people access a sustainable future. They will be conducting retrofit assessments on the six Future Builders properties in Bristol and provide guidance on the measures that could be put in place for each property. We will have the results of this work in 2022.
## **Improved reporting**
During a workshop in 2020 with the partners who deliver Future Builders, we created the programme’s Theory of Change and an improved reporting template. During 2021 we were able to embed this reporting into each partner’s day to day activities so that it’s also a useful tool to help them track young people’s progress. As a result we have more reliable data on the outcomes for young people who take part in Future Builders. We were able to use this data in the aforementioned impact report to showcase the programme to charities, funders and other prospective partners, and have also been made aware of charity partners drawing on the data to use in funding applications.
Future Builders - 2021 performance
During 2021, 94 young people were supported by the Future Builders programme. Of these young people,:
- 61 (65%) lived in a Future Builders home and 56 (92%) of these young people maintained their tenancy
- 87 (93%) made progress with their identified needs
- 71 (76%) achieved qualifications
- 84 (89%) gained professional experience
- 63 (67%) saved money
- 41 young people had moved on from the Future Builders programme and 23 (56%) of those young people had sustained employment 3 months after the programme
• 35 (83%) have moved on to a positive accommodation pathway (accommodation that is considered a sustainable and positive step for them, which could include moving back in with family for example. Recognising that what is considered 'positive' will differ per young person).
In addition, we brought a further three properties back into use in 2021. Since 2016, Future Builders has refurbished 17 properties, creating 40 homes for young people.
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## **The OVO Charitable Foundation**
## **Trustees' Report**
## **(3) Installing solar energy in remote schools and health clinics across rural areas of Kenya**
## - Project Jua Overview and objectives
We have worked with Energy 4 Impact since 2017 to bring power to rural areas of Kenya through Project Jua. Starting with a small pilot in 20 sites, during which we gained valuable information to inform our scale up, we have now installed solar panels and remote monitoring systems in 320 schools and health clinics across five counties. We know that polluting generators come at a cost for people and the planet. By providing a clean, reliable and affordable source of energy we help communities to leapfrog the grid. In addition, we gain data on public institutions’ energy needs to address a critical knowledge gap in the sector. This means we can pave the way for energy as a key component of education and health programmes, while cutting carbon.
## In particular, the objectives of the programme are to:
• Provide reliable power for lighting, technology and life-saving medical equipment to benefit 100,000s of people and improve their health and education outcomes;
• Bypass the need for grid connection, helping avoid CO2 emissions for years to come; and
• Gather data and insight on energy production and consumption in schools and health clinics to help shape future off-grid solar projects.
The installation phase was completed in 2020 so we have since begun our monitoring and evaluation to measure the social and environmental outcomes of the project, and work with the institutions and county governments to ensure long term sustainability of the project through mentoring and relationship building. We’re ensuring that our progress is also aligned with the Sustainable Development Goals (SDGs). Project Jua provides affordable, clean energy (SDG7) to rural Kenyan communities. The number of births occurring at Project Jua clinics has doubled since the installation of solar panels, while the referral rate on to larger hospitals for treatment has reduced by 55%. The availability of reliable power, and the range of services offered as a result, supports good health and wellbeing (SDG3) through life-saving equipment and increased provision, particularly for women and newborns. In Project Jua schools, children can study longer and access technology which supports quality education (SDG4). Following school closures during Covid-19, this is more crucial than ever. A midline survey was conducted in 2021 which gave us greater insight to progress against these SDGs.
## - Project Jua Activity in 2021
## **Working with Imperial College London**
Project Jua’s focus on energy data in public institutions sets it apart from other projects. We designed the project to address a gap in the sector’s understanding - and accurate calculation - of energy needs, especially in schools and health clinics. We committed to installing remote monitoring systems, which are similar to smart meters, alongside the solar panels in each of the 20 pilot phase sites as well as a further 300 schools and health clinics when the project expanded in 2019. This scale is unique and enables us to share useful and reliable data with others to improve energy access elsewhere.
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## **The OVO Charitable Foundation**
## **Trustees' Report**
One of the ways we use and share the data has been for a Sustainable Energy Futures MSc thesis with Imperial College London. A Masters student used the data for one of their research projects; the research explored appropriate system sizing for off-grid projects, which is key as oversizing could create unnecessary costs and undersizing could result in power being unavailable. Unfortunately original plans were somewhat disrupted by the pandemic yet, despite limited data, the results conclude the ample potential to apply knowledge from Project Jua to other projects electrifying schools and health clinics in Kenya and elsewhere. An executive summary was published in April 2021 (available here: https://www.ovofoundation.org.uk/project-jua-on-stage-at-imperial -college-london/).
We continue to collaborate with Imperial College London to analyse the programme's valuable data, with a site visit and further published research due in 2022. Potential topics to explore include Project Jua’s financial and environmental sustainability.
## **Long term sustainability phase**
Following the installation of the systems, we turned our focus to working with stakeholders in each site as well as county governments to plan Project Jua’s long-term sustainability. A significant activity was a stakeholder engagement exercise to gather information from key contacts at institution and county level on the most suitable approaches to support sustainability technically and financially. It was important to have this discussion with the people who are affected by the decisions made and/ or can influence the implementation of those decisions, and to also recognise the specific needs of each county. Technical working groups were formed consisting of representatives from the Department of Health, Education, Energy and Public Works at county level, and meetings were held with high-level officials in the various departments.
We have generated helpful insight from stakeholders which has allowed us to better understand the current situation at county and institutional level regarding their unique electrification goals and objectives, funding structure and ability to support Project Jua’s sustainability technically and financially. One of the key findings from this exercise was the difference in departmental structures and objectives in the counties which affects the kind of sustainability approaches that can be applied. Similarly, schools and clinics are managed and funded differently. Therefore, a combination of sustainability models will need to be applied. In doing so, we hope to minimise the risk of system failure due while enhancing the capacity of county government and the institutions to sustain the systems on their own.
## **Monitoring and Evaluation**
A midline survey was held in 2021 to collect data against the indicators set out in the programme’s logframe. This is the first time we have collected data from those who work in schools and health clinics since the baseline survey in 2019, prior to the installation of the systems. The results can be found below and will be followed up with further data collection in 2022. During 2021 we also worked with Energy 4 Impact and the Carbon Trust to develop a methodology to calculate the carbon emissions avoided through Project Jua. A system for recording this data is now in use.
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## **The OVO Charitable Foundation**
## **Trustees' Report**
## - Project Jua 2021 performance
In addition to the pilot’s initial 20 sites, solar and remote monitoring systems were installed in a further 300 schools and health clinics between 2019 and 2020. Our latest results show:
• Each day, over 55,000 people access the 320 health facilities and schools where we have installed solar panels. • The number of schools saving costs on energy has increased. Prior to installation of the system, the majority of the schools mentioned spending above Ksh 5,000/month on energy. This has since reduced to an average of Ksh 2,600/month.
• Schools are now able to use electronic equipment to support children’s learning. For example, 90 schools have acquired laptops that they are now able to power.
• As a result of power availability from Project Jua, 91 schools can now offer community outreach related activities such as hosting community and church meetings, youth groups and football matches.
• In addition, seven schools provide printing and photocopying services as well as phone charging to the community at a fee, allowing them to generate additional income. These schools average a monthly income of between Ksh 290 - Ksh 7,900 from the provision of these services.
• Prior to installation of the solar systems, vaccine wastage in clinics was high at an average 752 vials/month. This can be partly attributed to lack of electricity or unreliability of the electricity available to power the vaccine fridges. However, since the availability of reliable power from the systems, the wastage had significantly reduced to an average of 80 vials/month.
• The number of births occurring at the clinics, both during the day and at night has doubled since the installation of the system. The availability of reliable power, especially at night, has significantly contributed towards this increase.
• The Jua system has made it possible for an additional 40 clinics to offer emergency services previously unavailable due to lack of power, especially at night.
• From January to December 2021, 10.3 tonnes of CO2 was avoided thanks to the installations.
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## **The OVO Charitable Foundation**
## **Trustees' Report**
**(4) Provide training to educators on reducing carbon footprint, protecting physical environment and limit impact on the planet**
## Overview and objectives
Climate Changers is our newest funding area and launched in 2020 to give children and young people the skills and knowledge to tackle the climate crisis. Our £1m of funding has been committed to three projects over three years:
## **Tiny Forests**
We’re working with Earthwatch Europe to plant 12 tennis court-sized urban forests formed of 600 trees. The Tiny Forests absorb carbon, improve local air quality, and provide an urban oasis for biodiversity. A key part of the programme is to work with local schools in less advantaged areas and provide outdoor classrooms for children and young people who may not otherwise have access to nature.
## **Energy Sparks**
The OVO Charitable Foundation is supporting children from 350 schools across the country to help them become more energy efficient. Energy Sparks has developed an online, school-specific energy analysis tool and education programme which can reduce schools’ carbon emissions and bills. This will help schools to reduce their environmental impact and save money on their energy bills.
## **WildEd**
Action for Conservation inspires and empowers young people to become the next generation of environmental leaders. The OVO Charitable Foundation is supporting their WildED Programme, which consists of a series of tailored workshops and student-led activities for students in Key Stages 3, 4 and 5. Students gain the skills and knowledge to lead their own environmental action projects that will have a positive impact on their local area.
The objectives of Climate Changers is to:
• Educate children and young people about the climate crisis via training and resources for educators; • Empower children and young people to take action, including providing them with the skills to help tackle environmental issues; and
• Increase access to green and sustainable spaces to ensure all children and young people have access to nature.
- Climate Changers Activity in 2021
## **Responding to disruption from Covid-19**
All three of the Climate Changers projects are delivered in and around schools and run in line with the academic year. The first year from September 2020 to July 2021 was therefore significantly disrupted by the impact of Covid-19 and subsequent lockdowns. The partners used experience from the initial lockdown in spring 2020 to quickly move their engagement with schools online when needed. In addition, the planting season for trees runs from November to March and so Earthwatch Europe had to revise plans for planting days by limiting the number of people attending a Tiny Forest, maintaining social distancing and ensuring all local and national guidelines were adhered to. Despite the challenges, the projects still made great progress in delivering their projects during 2021.
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## **The OVO Charitable Foundation**
## **Trustees' Report**
## Climate Changers -2021 Performance
## **Tiny Forests**
Earthwatch Europe planted 10 Tiny Forests with our grant between January 2021 and December 2021, equating to 6,000 trees. These forests are in Oxford, Bristol, Glasgow, Leicester, Birmingham, Wolverhampton, Wirral, Edinburgh, Nottingham and Kirklees, with a further two forests in London and Blackpool planned for 2022. The Tiny Forest in Glasgow is one of several planted around the city to become a living legacy of COP26. During 2021, 794 students attended the planting days and school events, as well as 133 community members - particularly during lockdowns when some schools were unable to engage in the planting days. Earthwatch Europe also trained and provided resources to 334 teachers during 2021, to reach a further 9,226 students.
## **Energy Sparks**
Energy Sparks replaced their school visits with online delivery when required during 2021, however they have been able to sign up more schools than anticipated. During 2021 they worked with 226 schools with an estimated 2,200 students leading Energy Sparks’ work through their own eco-teams. It is thought that a further 96,000 students will have benefited from the adoption of Energy Sparks in their school and the behaviour change being led by their peers in eco-teams. Unfortunately the need for increased ventilation in schools during the pandemic has led to an increase in gas consumption in some schools compared to before Covid-19. However, the participating schools have seen a 10% reduction in their electricity consumption thanks to the work of Energy Sparks.
## **WildEd**
Action for Conservation found that the move to an online ‘WildEd climate series’ and their supporting ‘WildWeb’ programme has enabled them to work with schools in some new areas. During 2021, 31 schools participated in the programme with 62 teachers receiving resources and support from the Action for Conservation team. In total, 1,309 students took part in WildEd from those schools and led 387 environmental projects or campaigns in their local area. Ten student projects were showcased at regional ‘Dragons Den style’ final events and, in celebration of COP26 this year, WildED students were also invited to present at the Transform our World Youth Summit alongside the global gathering of world leaders in Glasgow. The campaigns focused on organic vegetable growing, sustainable transport initiatives, litter, air pollution and climate policy to a huge in-person audience, as well as virtual, at the Summit, and took questions from the audience about their project plans for the future.
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## **The OVO Charitable Foundation**
## **Trustees' Report**
## **(5) Creating value in local communities**
## Overview and objectives
In 2021 we launched a new partnership with The Wildlife Trusts, a federation of 46 grassroot charities each embedded in their local community covering the whole of the UK. The Wildlife Trusts believes that restoring nature is vital for wellbeing and prosperity and they manage over 2,300 nature reserves covering over 98,500 hectares. OVO group employees will support their local Wildlife Trusts by working in teams to enhance and protect the natural environment, which is fundamental to individual and societal wellbeing, environmental resilience and to economic prosperity. From tree planting to clean ups to restoring habitats - we’ll be helping to restore nature and create sustainable communities in the places we live and work. In 2021, we saw 502 OVO group employees take part in volunteering days.
The objectives of the programme are to:
• Connect our people to local environmental initiatives;
• Support local initiatives that are helping to improve the environment and green spaces in the areas we live and work; and
• Empower OVO group employees to feel connected to each other and their local communities by coming together to create positive change.
From 2022, the partnership with The Wildlife Trusts will be transferred from The OVO Charitable Foundation to OVO Energy Ltd.
## OVO Gives Back activity in 2021
Prior to our partnership with The Wildlife Trusts, OVO Gives Back was the name for our funding area which helped to create sustainable communities in the places we live and work by providing volunteering hours and grants. In 2020, we adapted OVO Gives Back to increase funding in response to the coronavirus pandemic and select organisations who were supporting those most impacted. In keeping with supporting charities close to our main offices, we expanded OVO Gives Back to Selkirk and Dunfermline in Scotland for the first time, as well as continuing to work in London and Bristol.
## 2021 performance
We donated £120,000 to a selection of charities working across issues such as food poverty, homelessness and isolation. They were:
• **Beam (London):** crowdfunded immediate support for vulnerable young people to help them find secure, stable employment.
- **Caring in Bristol:** supported isolated young homeless individuals in Bristol through developing their youth
- homelessness services to include early intervention-support.
- **Dunfermline Foodbank:** distributed food and essential items to local vulnerable groups.
- **Greenspace Scotland:** worked with youth groups on a project that looked at how local actions can help reach
- net zero targets.
- **Rowlands (Selkirk):** helped young people connect in the Scottish borders, by starting ‘Radio Rowlands.’ The
- station also gives them great work experience.
- **Square Food Foundation (Bristol):** reduced inequality and improved people’s health through free cookery
- workshops and meal kits - helping families to create nutritious meals.
- **The Matthew Tree Project (Bristol):** fitted a kitchen in their building, so they could turn food that would
- otherwise go to waste into nutritious, healthy meals for people who need them.
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## **The OVO Charitable Foundation**
## **Trustees' Report**
## **(6) Other updates**
## Change of trustees
In 2021, we were delighted to announce the appointment of two new trustees who will play an instrumental role in developing and delivering The OVO Charitable Foundation’s future strategy. Kemi Akindele and Tom Wilson were appointed by the board in December 2021 and both bring a depth and breadth of experience that will help The OVO Charitable Foundation deliver on its vision to give all children and young people a greener, fairer future.
Kemi is a senior communications professional focusing on building and protecting corporate reputation and developing purpose-driven campaigns. Her experience of working with clients on social purpose means she is perfectly placed to help The OVO Charitable Foundation tell its story and bring together different audiences who share a common goal of empowering children and young people to take action on the climate crisis.
As a young campaigner with over 10 years’ experience in climate change campaigning, Tom is passionate about helping to ensure young people are at the centre of key decision-making systems. He will offer a new perspective on our current and future work and will be pivotal in working with the board to ensure that young people feel empowered, supported and valued in order to work towards a future they care about.
Samuel Kasumu stepped down from the board in 2021 and we thank Samuel for his valuable contributions over the past five years.
## External governance review
In early 2021 we worked with a governance consultant to review our procedures, processes and policies and ensure we have a strong and complete governance framework. The Charity Governance Code was used as a framework to assess The OVO Charitable Foundation and indicated that our strengths were in integrity and decision-making, risk and control while we needed to better document our approach to diversity, leadership and board effectiveness. We addressed the feedback by revising the existing governance structures and protocols set out in our policies and, where relevant, defining our approach in new documents, such as our social responsibility policy. We will continue to work on our governance during 2022, particularly as we aim to better capture the impact of our funding.
## Funder Commitment on Climate Change
In 2021, we reported for the first time on our progress against the Funder Commitment on Climate Change, which we signed in 2020. It commits charitable foundations to:
- Educate and learn about the key causes and solutions of climate change;
- Commit resources to accelerate work that addresses the causes and impact of climate change;
- Integrate adaptation to climate change impacts within existing programmes, priorities and processes;
- Steward investments for a post-carbon future;
- Decarbonise operations; and
- Report on progress against the five points listed above.
Highlights from our reporting were included in the Association of Charitable Foundation’s Year 1 report on the Commitment (available here: https://www.acf.org.uk/acf/ACF/Connect_collaborate/ Funder-Commitment-on-Climate-Change.aspx?hkey=7939fc6d-bf68-47dd-9d1d-c6d11663d89b), including a lunchtime session delivered by The OVO Charitable Foundation for OVO group employees which showcased our Climate Changers funding area.
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## **The OVO Charitable Foundation**
## **Trustees' Report**
## **The OVO Charitable Foundation’s plans for 2022**
## **(1) Social Return on Investment study**
At the end of 2021 we began a Social Return on Investment (SROI) study with an external consultant, The Social Investment Consultancy, and our charity partners. The SROI study will enable us to strategically review the impact of our grants by hearing directly from the charities we fund as well as the people they serve, as involving stakeholders in defining the outcomes is crucial for SROI. We are appreciative of the rare opportunity to hear feedback at this level of detail, and grateful that the strong relationships The OVO Charitable Foundation has with its partners also facilitates stakeholder involvement in the process, from defining outcomes of our programmes to validating the results.
The SROI study will be endorsed by Social Value UK, a national network for those working in social impact which supports members to increase the accounting, measuring and maximising of social value from the perspective of those affected by an organisation’s activities. The results will be published in 2022 and help us to reflect on our grantmaking.
## **(2) Funding strategy**
As some of our grants came to a close in 2021 and others end in 2022, we will look to revise our funding strategy. This process will include a workshop with our Board of Trustees to reflect on our approach to grantmaking to date and the themes in which we might be best placed to fund in future. Decisions on the projects we fund, and the processes we follow to identify and provide funding, will then be made by the Board. This will likely also lead to a revised organisational Theory of Change.
## **(3) Communications**
We will reflect our revised funding strategy in 2022 in our communications, ensuring that we meet the needs of our key audiences. A detailed communications plan will be created to reflect the key messages of our funding approach and setting out opportunities for content creation throughout the year. We will also ensure we communicate across multiple channels yet develop a consistent narrative which brings in the voice of children and young people who we support through our programmes.
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## **The OVO Charitable Foundation**
## **Trustees' Report**
## **Financial review**
## **(1) 2021 financial review**
The total income for The OVO Charitable Foundation at the end of 2021 was £999,717 (2020: £1,114,709). Of this, £302,744 (2020: £376,963) came from OVO Energy Ltd customer donations. OVO Energy Ltd donated the same amount to The OVO Charitable Foundation as part of its commitment to match all customer donations. OVO Energy Ltd has committed to ensuring that The OVO Charitable Foundation has had cash donations of at least £1 million which means for the year ended 2021, OVO Energy Ltd donated an additional £394,511 as a 'top-up' payment amount. The rest of the income in the year consists of £50 of bank interest. Our income in 2021 is marginally less than our income in 2020 due to a one-off grant from another organisation, LandAid, in the previous financial year. Of the cash received from OVO Energy and OVO Energy customers in 2021, £166,000 related to prior year income. As this income was recognised in 2020, this has been reversed in 2021 bringing the total income for the year to £999,717.
The OVO Charitable Foundation’s expenditure for the year was £799,222 (2020: £1,014,962). Please see note 5 of the financial statements for a full breakdown.
## **(2) Number and value of customer donations**
OVO Energy Ltd gives all customers on a pay monthly (PAYM) tariff the opportunity to donate to The OVO Charitable Foundation. The amount that the customer chooses to donate is matched by OVO Energy Ltd - doubling customers’ donation power - and is added to their monthly statement.
At the end of 2021, 45,106 customers donated to the The OVO Charitable Foundation. This represents a marginal decrease from the previous year where 49,776 customers donated each month. This decrease is likely to be attributed to a legacy issue of the donation option being removed from parts of the customer journey, and the cost of living/energy crisis in the UK making it challenging to request charity donations from customers. The value of customer donations however continued to increase from an average annual donation of £7.03 at the end of 2020 to £8.15 at the end of 2021.
As all overheads are covered by OVO Energy Ltd, 100% of donations go to The OVO Charitable Foundation’s projects and partners. In addition, OVO Energy Ltd has committed to ensuring The OVO Charitable Foundation has an income of £1m each year so will ‘top-up’ any variance resulting from a decrease in customer donations.
## **(3) Policy on reserves**
The OVO Charitable Foundation’s policy on reserves, put in place in 2015, remained the same in 2021. This policy maintains that:
_“The reserves should provide the charity with adequate financial stability and the means for the charity to meet its charitable objectives for the foreseeable future._
_The trustees will maintain the charity’s reserves at a level that is equivalent to at least six month’s operational and programmatic obligated expenditure. The level of reserves has been set at this amount in light of the charity’s manner of operations and the known future income streams._
_The trustees will regularly review the reserves policy to ensure such reserves sufficiently cover the charity’s continuing obligations.”_
This policy will be reviewed in 2022 as part of The OVO Charitable Foundation’s annual policy review.
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## **The OVO Charitable Foundation**
## **Trustees' Report**
## **(4) Principal risks**
The OVO Charitable Foundation has a risk policy and risk register which is reviewed and updated by The OVO Charitable Foundation staff each quarter, and reviewed and discussed by the board of trustees where relevant. Principal risks to The OVO Charitable Foundation in 2021 include:
## Future funding of The OVO Charitable Foundation
The OVO Charitable Foundation is currently part-funded by customer donations and part-funded by OVO Energy Ltd. OVO Energy Ltd matches all customer donations and provides a top-up to ensure The OVO Charitable Foundation has an annual income of £1m/year. OVO Energy Ltd also covers The OVO Charitable Foundation’s non-project costs and payroll - equating to £200k/year. The agreement between OVO Energy Ltd and The OVO Charitable Foundation is due to end in October 2022.
The 2020 acquisition of SSE by OVO Energy Ltd presents a new opportunity for The OVO Charitable Foundation to engage SSE customers with The OVO Charitable Foundation and welcome new customer donations, however, the ongoing living/energy crisis in the UK means that the timing for 2022 may not be right for encouraging new customer donations.
Importantly, we have a reserves policy in place which states that we’ll maintain the charity’s reserves at a level that is equivalent to at least six month’s programmatic obligated expenditure.
## The continued impact of coronavirus and economic challenges
The coronavirus pandemic and continuing economic challenges are likely to continue to have a significant impact on our partners and their ability to implement and deliver funded programmes, as well as some of the expected outcomes from the projects. We will increase the monitoring conversations that we have with all of our partners so that we are aware of the implications on the projects we support as the situation develops, and will provide additional support and flexibility to all our partners as they deal with any market repercussions. We will also continue to review our funding areas with the flexibility to support our partners responding to increased need to support children and young people in the medium and longer term.
9/9/2022 | 03:44 PDT
The annual report was approved by the trustees of the charity on .................... and signed on its behalf by:
......................................... Gina Cicerone Trustee
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## **The OVO Charitable Foundation**
## **Statement of Trustees' Responsibilities**
The trustees (who are also directors of The OVO Charitable 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 (United Kingdom Generally Accepted Accounting Practice), comprising FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and applicable law. 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 the group 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:
- select suitable accounting policies and apply them consistently;
- observe the methods and principles in the Statement of Recommended Practice: Accounting and Reporting by Charities (effective 1 January 2019);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable United Kingdom Accounting Standards, comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
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.
9/9/2022 | 03:44 PDT Approved by the trustees of the charity on .................... and signed on its behalf by:
......................................... Gina Cicerone Trustee
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**The OVO Charitable Foundation**
## _**Independent auditors’ report to the members of The OVO Charitable Foundation**_
## **Report on the audit of the financial statements**
## **Opinion**
In our opinion, The OVO Charitable Foundation’s financial statements (the “financial statements”):
- give a true and fair view of the state of the charitable company’s affairs as at 31 December 2021 and of its incoming resources and application of resources, including its income and expenditure, and cash flows, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law); and
- have been prepared in accordance with the requirements of the Companies Act 2006.
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 December 2021; the statement of financial activities (incorporating an income and expenditure statement), and cash flow statement for the year then ended and the notes to the financial statements, which include a description of significant accounting policies.
## **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**
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 charitable company’s ability to continue as a going concern for a period of at least twelve months from the date on which the financial statements are authorised for issue.
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.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the charitable company’s ability to continue as a going concern.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Reporting on other information**
The other information comprises all of the information in the Annual Report 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 our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and matters as described below.
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**The OVO Charitable Foundation**
## _**Independent auditors’ report to the members of The OVO Charitable Foundation**_
## _Trustees’ Report_
In our opinion, based on the work undertaken in the course of the audit the information given in the Trustees’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and the Trustees’ Report 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 Trustees’ Report. 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 Statement of Trustees' Responsibilities, 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the charitable company, we identified that the principal risks of non-compliance with laws and regulations related to UK tax legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006 and the Charities Act 2011 and Regulation 8 of The Charities (Accounts and Reports) Regulations 2008. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to fraudulent transactions designed to overstate the financial performance and position of the charity. Audit procedures performed included:
- Reviewing Board minutes and holding discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;
- Using computer based audit techniques to identify and test higher risk manual journals, in particular those having unusual account combinations;
- Challenging the assumptions used by the charity when considering its ability to continue as a going concern; and
- Obtaining third party confirmations of the charity’s banking and financing arrangements.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’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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**The OVO Charitable Foundation**
## _**Independent auditors’ report to the members of The OVO Charitable Foundation**_
## **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 not obtained all the information and explanations we require for our audit; or
- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- the financial statements are not in agreement with the accounting records and returns.
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.
Katharine Finn (Senior Statutory Auditor) for and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Bristol 12 September 2022
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DocuSign Envelope ID: E404B6E3-C0BA-4BE1-A0C1-83BE8C2D80BD
## **The OVO Charitable Foundation**
## **Statement of Financial Activities for the Year Ended 31 December 2021 (Including Income and Expenditure Account)**
|**Note**
**Incoming resources**
**_Incoming resources from generated funds_**
Donations and legacies
2
Investment income
3
**Resources expended**
**_Costs of generating funds_**
Investment management costs
4
**_Charitable activities_**
5
**Total expenditure**
Net income / Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
**Note**
**Incoming resources**
**_Incoming resources from generated funds_**
Donations and legacies
2
Investment income
3
**Resources expended**
**_Costs of generating funds_**
Investment Management Costs
4
**_Charitable activities_**
5
**Total expenditure**
Net expense / Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward||**Total**
**2021**
**£**
999,667
50|
|---|---|---|
|||999,717|
|||(120)
(799,102)|
|||(799,222)|
|||200,495
1,565,452|
|||1,765,947|
|||**Total**
**2020**
**£**
1,112,436
2,273|
|||1,114,709|
|||(34)
(1,014,928)|
|||(1,014,962)|
|||99,747
1,465,705|
|||1,565,452|
All of the charity's activities derive from continuing operations during the year and all funds are unrestricted. There are no recognised gains or losses other than those included in the Statement of Financial Activities above.
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## **The OVO Charitable Foundation**
## **(Registration number: 08908420) Balance Sheet as at 31 December 2021**
|**Note**
**Current assets**
Debtors
10
Cash at bank and in hand
**Creditors: Amounts falling due within one year**
**Net assets**
**Funds of the charity:**
**Unrestricted income funds**
Unrestricted funds
**Total funds**|**2021**
**£**
3,546
1,785,337
1,788,883
(22,936)
1,765,947
(1,765,947)
(1,765,947)|**2020**
**£**
170,213
1,395,239|
|---|---|---|
|||1,565,452
-|
|||1,565,452|
|||(1,565,452)|
|||(1,565,452)|
The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
These financial statements on pages 24 to 30 were approved by the trustees, and authorised for issue on 9/9/2022 | 03:44 PDT .................... and signed on their behalf by:
......................................... Gina Cicerone Trustee
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DocuSign Envelope ID: E404B6E3-C0BA-4BE1-A0C1-83BE8C2D80BD
## **The OVO Charitable Foundation**
## **Cash Flow Statement for the Year Ended 31 December 2021**
|**Note**
**Cash flows from operating activities**
Net movement in funds
**Reconciling items to operating cash flows**
Interest income
3
Interest payable
4
**Working capital adjustments**
Decrease in debtors
10
Increase in creditors
Net cash flows from operating activities
**Cash flows from investing activities**
Interest receivable and similar income
3
**Cash flows from financing activities**
Interest payable and similar expenses
Net increase in cash at bank and in hand
Cash at bank and in hand at 1 January
Cash at bank and in hand at 31 December|**2021**
**£**
200,495
(50)
120
200,565
166,667
22,936
390,168
50
(120)
390,098
1,395,239
1,785,337|**2020**
**£**
99,747
(2,273)
34|
|---|---|---|
|||97,508
83,335
-|
|||180,843
2,273
(34)|
|||183,082
1,212,157|
|||1,395,239|
All of the cash flows are derived from continuing operations during the year.
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DocuSign Envelope ID: E404B6E3-C0BA-4BE1-A0C1-83BE8C2D80BD
## **The OVO Charitable Foundation**
## **Notes to the Financial Statements for the Year Ended 31 December 2021**
## **1 Accounting policies**
**Summary of significant accounting policies and key accounting estimates** The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
## **Statement of compliance**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
## **Basis of preparation**
The OVO Charitable Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
## **Going concern**
These financial statements have been prepared on the going concern basis. The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
## **Income and endowments**
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the funds, certainty of receipt and the amount can be measured with sufficient reliability.
## **Donations and legacies**
Donations and legacies are recognised on a receivable basis where there is certainty of receipt and the amount can be reliably measured. For customer donations, this is when the cash is received.
## **Investment income**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
## **Trade debtors**
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors 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 receivables.
## **Cash at bank and in hand**
Cash at bank and in hand comprises cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
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DocuSign Envelope ID: E404B6E3-C0BA-4BE1-A0C1-83BE8C2D80BD
## **The OVO Charitable Foundation**
## **Notes to the Financial Statements for the Year Ended 31 December 2021**
## **Trade creditors**
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
## **2 Donations and legacies**
|Donations and legacies;
Donations from companies, trusts and
similar proceeds|**2021**
**General**
**£**
999,667|**Total**
**2021**
**£**
999,667|**2020**
**General**
**£**
1,112,436|**Total**
**2020**
**£**
1,112,436|
|---|---|---|---|---|
Donations from Ovo Energy Ltd in the current year were £729,974 (2020: £648,039).
## **3 Investment income**
|Interest receivable and similar income;
Interest receivable on bank deposits
**4**
**Investment Management Costs**
Investment management costs
**5**
**Charitable activities**
Grant funding of activities|**Unrestricted**
**funds**
**2021**
**General**
**£**
50
**Unrestricted**
**funds**
**2021**
**General**
**£**
799,102|**Unrestricted**
**funds**
**Total**
**2021**
**£**
**2020**
**General**
**£**
50
2,273
**2021**
**£**
120
120
**Unrestricted**
**funds**
**Total**
**2021**
**£**
**2020**
**General**
**£**
799,102
1,014,928|**Total**
**2020**
**£**
2,273|
|---|---|---|---|
||||**2020**
**£**
34|
||||34|
||||**Total**
**2020**
**£**
1,014,928|
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DocuSign Envelope ID: E404B6E3-C0BA-4BE1-A0C1-83BE8C2D80BD
## **The OVO Charitable Foundation**
## **Notes to the Financial Statements for the Year Ended 31 December 2021**
## **Charitable activities continued**
## **Analysis of charitable expenditures**
The charity undertakes its charitable activities through donations to a number of institutions in furtherance of its charitable activities. £799,102 (2020 - £1,014,928) of the below expenditure was attributable to unrestricted funds and £Nil (2020 - £Nil) to restricted funds.
|1625 Independent People
Action for Conservation
Beam
Caring in Bristol
Centrepoint
Doorstep Library
Dunfermline Foodbank
Earthwatch Europe
End Youth Homelessness
Energy 4 Impact
Energy Sparks
FareShare
Greenspace Scotland
IES and The Sutton Trust
Other grants
Parental Engagement Network
Rock Trust
Roundabout Limited
Rowlands
Square Food Foundation
Tales Toolkit
The Benjamin Foundation
The Institute for Employment Studies
The Matthew Tree Project
The Wildlife Trusts
YoungMinds|**Unrestricted**
**funds**
**2021**
**General**
**£**
**Total**
**2021**
**£**
**Total**
**2020**
**£**
73,394
73,394
190,082
55,000
55,000
27,500
-
-
20,463
-
-
20,463
-
-
8,333
3,011
3,011
40,000
-
-
10,463
100,867
100,867
121,349
20,610
20,610
19,408
202,590
202,590
47,035
114,172
114,172
107,013
8,333
8,333
-
-
-
20,463
18,182
18,182
-
11,188
11,188
8,694
-
-
40,000
71,109
71,109
78,451
35,942
35,942
33,857
-
-
10,463
-
-
20,463
-
-
80,000
36,704
36,704
60,439
-
-
21,193
-
-
20,463
48,000
48,000
-
-
-
8,333|
|---|---|
||799,102
799,102
1,014,928|
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DocuSign Envelope ID: E404B6E3-C0BA-4BE1-A0C1-83BE8C2D80BD
## **The OVO Charitable Foundation**
## **Notes to the Financial Statements for the Year Ended 31 December 2021**
## **6 Trustees remuneration and expenses**
No trustees, nor any persons connected with them, have received any remuneration and any other benefits from the charity during the year (2020: same). No trustees have received any reimbursed expenses from the charity during the year (2020: same).
## **7 Charity status**
The charity is a charity limited by guarantee and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £Nil (2020: £Nil) towards the assets of the charity in the event of liquidation.
## **8 Auditors' remuneration**
The auditors' remuneration constituted an audit fee of £6,000 (2020: £5,900). The audit fee is borne by OVO Energy Ltd.
## **9 Taxation**
The charity is a registered charity and is therefore exempt from taxation.
## **10 Debtors**
|Debtor from OVO Energy Ltd|**2021**
**£**
3,546
3,546|**2020**
**£**
170,213|
|---|---|---|
|||170,213|
Debtors include £Nil (2020: £Nil) receivable after more than one year.
## **11 Related party transactions**
There were no related party transactions that were required to be disclosed in the year (2020: none).
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