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2021-03-31-accounts

Company number: 10551265 Charity number: 1178655

The Malala Fund UK

Report and financial statements

For the year ended 31 March 2021

The Malala Fund UK

Contents

For the year ended 31 March 2021
Reference and administrative information 1
Trustees’ annual report 2
Independent auditor’s report 13
Statement of financial activities (incorporating an income and expenditure account) 17
Balance sheet 18
Statement of cash flows 19
Notes to the financial statements 20

The Malala Fund UK

Reference and administrative information

For the year ended 31 March 2021

Company number 10551265 Country of incorporation United Kingdom Charity number 1178655 Country of registration England and Wales Registered office and operational address 3 Waterhouse Square 138 Holborn London, EC1N 2SW

Trustees Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows: Akhter Mateen Director and Board Chair Susan McCaw Director Fayeeza Naqvi Director Malala Yousafzai Director Key Management Suzanne Ehlers, CEO Bankers Citibank Canada Square Canary Wharf LONDON E14 5LB Solicitors Bates Wells 10 Queen Street Place LONDON EC4R 1BE Auditor Sayer Vincent LLP Chartered Accountants and Statutory Auditor Invicta House 108-114 Golden Lane LONDON EC1Y 0TL

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The Malala Fund UK

Trustees’ annual report

For the year ended 31 March 2021

The trustees present their report and the audited financial statements for the year ended 31 March 2021.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association, the requirements of a directors’ report as required under company law, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Purposes, aims and objectives

Together with the Malala Fund US, the Malala Fund UK is working toward a world where every girl can choose her own future. Co-founded by Malala Yousafzai and her father Ziauddin Yousafzai, The Malala Fund began as a United States registered organisation in early 2013 in response to a swell of public support following the 2012 attack on Malala’s life. Since then, Malala has become the movement leader for girls’ education and her continued activism has built momentum for girls’ education and equality around the world.

As stated in the Malala Fund UK’s Articles of Association, the objects of the charity are to promote education worldwide, particularly (but not limited to) secondary school age girls in the developing world denied education due to poverty, violence, discrimination or tradition.

Since incorporation in 2017 and registration as a public charity in England and Wales in 2018, the Malala Fund UK has worked alongside the Malala Fund US to support programmes that improve access to high-quality education in Afghanistan, Brazil, Ethiopia, India, Lebanon, Nigeria, Pakistan and Turkey. The charity also advocates for the resources and policy changes needed to give all girls a secondary education – informing policy makers and the general public in the United Kingdom and elsewhere about the importance and benefits of education globally.

Throughout the year, the trustees of the Malala Fund UK review the aims, objectives and activities of the charity. This report looks at what the Malala Fund UK has achieved and the outcomes of its work against its charitable objectives during the reporting period. Regular reviews and the process of putting together this annual report help the trustees ensure the charity's aims, objectives and activities remain focused on its stated purposes.

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.

People served, activities and progress to date

The Malala Fund UK works to support change in the lives of the nearly 130 million girls who are out of school globally and the millions more who are not receiving a quality education. To the Malala Fund, a “quality” education means not just that children are retaining knowledge, but also

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The Malala Fund UK

Trustees’ annual report

For the year ended 31 March 2021

that what they learn translates into a wider set of personal, social and developmental benefits. Two aspects of education quality particularly pertinent for girls are the relevance of education to their lives and aspirations, and the extent to which education is gender responsive so that girls are supported in pursuing their goals.

Specifically, the charity (along with the Malala Fund US) engages in three overarching activities:

  1. Advocating to hold leaders accountable: The charity advocates — at local, national and international levels — for resources and policy changes needed to give all girls a secondary education.

  2. Investing in local education activists: Through its Education Champion Network (formerly the “Gulmakai Network” programme) the Malala Fund US awards grants to local educators and advocates — the people who best understand girls in their communities — in regions where the most girls are missing out on secondary school. The Malala Fund UK supports these grantees through capacity building, advocacy support, networking opportunities and programme monitoring, evaluation and learning (MEL).

  3. Amplifying girls’ voices: The charity believes that girls should speak for themselves and tell leaders what they need to learn and achieve their potential. To this end, the charity amplifies girls’ voices and shares their stories through Assembly, its digital publication and newsletter. In 2020, the organisation also launched a new portfolio of grants (through its new “Girl Activist Programme”) to support organisations informing girls of their rights and working directly with them to build advocacy skills.

All of the Malala Fund UK’s charitable activities focus on getting more girls into school and learning and are undertaken to further the charity’s mission and to serve a public benefit. Specifics on the charity’s activities and progress towards its objectives are provided below.

Advocacy work and victories

In FY2020-2021, the Malala Fund UK and the Malala Fund US encouraged leaders to address the impact of the COVID-19 global pandemic on girls’ education and successfully advocated for more aid. Highlights of these efforts included:

2020 United Nations General Assembly: The Malala Fund US and UK used 2020’s virtual UN General Assembly in September to urge world leaders to focus on girls’ education in their rebuilding plans. After publishing an op-ed in The Guardian titled After COVID-19, millions of girls may not return to the classroom. We can help them , Co-founder Malala Yousafzai spoke at the inaugural SDG Moment event to urge participants to lead the way in creating a sustainable, healthy, educated and equitable world.

Building back equal guide: In August 2020, along with Plan International, UNICEF, UNESCO and UNGEI, the Malala Fund US and UK developed the Building back equal: Girls back to school guide , which recommends how policymakers can reopen schools in a way that is safe, gender-responsive and child-friendly, and meets the needs of the most marginalised girls.

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The Malala Fund UK

Trustees’ annual report

For the year ended 31 March 2021

Germany COVID-19 response: Following Malala Fund’s advocacy, the German Bundestag voted to provide 25 million euros to the Global Partnership for Education (GPE)’s COVID-19 response, in addition to its annual contribution of 50 million euros.

National advocacy: In Ethiopia, India, Nigeria and Pakistan, the Malala Fund US and UK worked with Malala Fund Education Champions to lead campaigns calling on national governments to allocate sufficient funding towards education and implement gender-responsive back-to-school plans. A highlight from the campaign in Nigeria was a high-level virtual roundtable on girls’ education and COVID-19 co-hosted by Malala Fund Co-founder Ziauddin Yousafzai and the Governor of Kaduna state. The event provided a platform for our Education Champions to present findings from our research to state governors and education commissioners across northern Nigeria and discuss the challenges girls in their communities faced during the COVID-19 crisis.

Supporting a network of local educators and activists

By the close of FY2020-2021, the Malala Fund US had supported 61 local educators and advocates in eight Global South countries with $15.9 million (USD) in grants to their organisations, capacity building and networking opportunities. While the Malala Fund UK does not engage in direct grantmaking, its staff do support grantee capacity building, advocacy, networking opportunities and programme monitoring, evaluation and learning (MEL).

Together, the Malala Fund US and the Malala Fund UK are working to cultivate a network of education champions around the world who can pursue joint advocacy strategies, share innovative models for increasing access to quality education and learn from each other’s work. Specifically, the Malala Fund UK has undertaken the following activities in support of this effort:

Examples of Champion successes during FY2020-2021 included:

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The Malala Fund UK

Trustees’ annual report

For the year ended 31 March 2021

result, eight groups have started to revise their bylaws to condemn child marriage and other harmful traditional practices and require community members to send their daughters to secondary and tertiary schools.

COVID-19 support: In response to the COVID-19 pandemic, $3.2 million USD in FY2020-2021 grants awarded by the Malala Fund US and supported by the Malala Fund UK were focused on ensuring that girls could continue their education during COVID-19 school closures and were positioned to go back to school as soon as safely possible. These COVID-19 response grants were distributed to existing Malala Fund Education Network Champions as well as other organisations addressing the impact of COVID-19 on girls’ education and their communities.

Youth activism and awareness raising

In recent years, the Malala Fund UK and the Malala Fund US have developed a large, diverse and active supporter base of young people around the world (the majority of the charity’s 275,000+ online supporters in the United Kingdom are between the ages 18 and 34). The charity’s young audience positions it well to lead regional, national and global efforts on girls’ education. Young followers are often the first to take action online and share the Malala Fund’s campaigns, giving more visibility to the activists and girls the charity supports.

The Malala Fund believes that listening to the experiences of girls and young women, amplifying their voices and building their advocacy skills to create their own movements is fundamental to achieving lasting, positive improvements in girls’ education. In 2020, the Malala Fund US and UK launched the “Girl Activist Programme”, which offers fellowships for girls and grants to organisations working to give girls the tools they need to advocate for education. The launch year included 10 Girl Activist Programme grants to organisations that are creating safe safes for girls, educating girls about their rights and providing resources for youth-led advocacy.

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The Malala Fund UK

Trustees’ annual report

For the year ended 31 March 2021

Finally, on Assembly, the Malala Fund’s digital publication and newsletter, girls have the opportunity to share their stories — and to discover ideas and inspiration from their peers around the world. Led by Malala Yousafzai’s example, the charity encourages and cultivates young people to create change for girls’ education on a global scale.

Plans for the future

The Malala Fund UK and the Malala Fund US have shared ambitions for the coming years. Building on lessons learned, the charity’s future work will focus on encouraging governmental provision of more funding for education and on special campaigns to change social norms that deny girls’ potential. The charity will also focus efforts on promoting quality education that prepares young women to shape the world around them.

In terms of investments, the Malala Fund US intends to grow its grant-making portfolio over the coming years – expanding its Education Champion network to up to 17 countries total by 2025. At the same time, the organisation plans to launch new programmes to partner with state / provincial governments in three targeted geographies (India, Nigeria and Pakistan) and to support girls’ training and movement building around education advocacy.

While the Malala Fund UK does not plan to engage in direct grant-making for the foreseeable future, its staff will continue to support grantees of the Malala Fund US Specifically, staff of the Malala Fund UK will develop and refine programmatic approaches benefitting both the Malala Fund UK and the Malala Fund US Staff of the charity will also work with Malala Fund US’ grantees to produce a joint advocacy agenda for every country where the Malala Fund US invests grant funding. Staff of the Malala Fund UK will also oversee and evaluate overall programme process, monitoring, evaluation and learning (MEL). Staff of the Malala Fund UK will also engage in education research and awareness raising efforts to benefit audiences in the UK and globally.

COVID-19 impact and response: In response to the COVID-19 global pandemic beginning in 2020, the Malala Fund made several strategic changes to its advocacy and grant-making approaches, which are expected to continue well into 2021 and beyond. By mid-2020, at the time of this report’s writing, Malala Fund had initiated multiple actions in response to the pandemic. In April 2020 the organisation released a research report on the impacts of COVID-19 on education, which found that approximately 20 million secondary school age girls are unlikely to ever return to classrooms as a result of the pandemic. This research sparked the development of Malala Fund’s COVID-19 Response Framework, which entails the following through special advocacy campaigns and grant-making to local organisations in six Global South countries: 1) Respond to the immediate needs of girls displaced from in-person learning in the near-term; 2) Help ensure that countries have clear plans to assist girls returning to school as part of national recovery in the medium-term; and 3) Work with partners and governments around education resiliency in the longer-term, building on lessons learned from the pandemic.

Impact of the Unfolding Crisis in Afghanistan: At the time of finalising this report, Malala Fund is responding to the unfolding humanitarian and girls’ education crisis in Afghanistan. This is following the Taliban’s takeover of Kabul on 15 August 2021, after the conclusion of the budget year covered in this report. At the time of writing, Afghanistan is the only country in the world

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The Malala Fund UK

Trustees’ annual report

For the year ended 31 March 2021

where girls are effectively banned from attending secondary school. Malala Fund has supported girls’ education partners in Afghanistan since 2016 and work in recent months has focused on ensuring the safety of Afghan partners, communicating the importance of girls’ education in all Afghanistan-related advocacy and communications and identifying new ways to support educationrelated programming within Afghanistan and for Afghans who are displaced internationally. This work has significantly impacted budgeting and planning for FY2021-2022 and for years to come.

Diversity, Equity and Inclusion (DEI): In 2020, the charity, including its Board of Trustees, placed great focus on ensuring that all aspects of the organisation’s work reflected commitments to be decolonial, inclusive, feminist, free of abuse and promote the well-being of our staff and grantees. Critical steps taken in in FY 2020-2021 included:

Financial review

Per the Malala Fund UK’s FY2020-2021 financial statements, total expenditures for the period were £1,582,464, against £1,202,678 in net revenue (and £79,944 in in-kind contributions). The Malala Fund UK continues to be almost completely funded by a grant from its sole member, the Malala Fund US.

During the course of the financial year, the Malala Fund US transferred US board-approved disbursements to cover operational costs as needed, with limited carry-over balances from month to month. All operational costs for the Malala Fund UK were in alignment with the annual budget independently approved by its trustees.

At the close of the Malala Fund UK’s financial year, on 31 March 2021, the charity reported £50,507 in funds carried forward. In accordance with the standing inter-company cooperation agreement between the Malala Fund US and the Malala Fund UK, the US entity will continue to financially support the operations of the UK until the time that the UK entity becomes selfsustaining. For this reason, FY2020-2021’s carry-over balance at the close of the financial year is not cause for concern.

Principal risks and uncertainties

In early 2020, the Malala Fund UK finalised a formal risk register and risk management policy, which necessitates review of all risks by the CEO and the organisation's Audit and Risk Committee at least bi-annually and a review of select, key risks by the full board at least annually. All identified risks are rated based on probability and severity of impact. In each area, the charity is taking critical steps to mitigate risk, including significant investments in a robust due diligence

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The Malala Fund UK

Trustees’ annual report

For the year ended 31 March 2021

process for vendors, staff and other partners, safeguarding measures for children and at-risk adults and guidance and support from security experts.

Organisational risks identified by the Malala Fund UK are categorised as follows:

- Impact of COVID 19

Beginning in early 2020, the near and likely longer-term impacts of COVID-19 presented additional and significant organisational risks. By the close of FY2019-2020, the global pandemic rendered most international, national and even local travel unfeasible. This has in turn impacted Malala Fund’s ability, albeit temporarily, to conduct some meetings, advocacy events and training, when digital alternatives are not possible. The organisation has also had to shift its approach to some of its MEL work, relying more heavily on in-country expertise and stakeholder interviews over video versus in-person site visit reports from visiting staff and third-party evaluators.

However, while the Malala Fund’s approach to work has changed during the pandemic, its ultimate objectives and five-year goals are expected to remain constant. For the foreseeable future, the Malala Fund US is confident in its ability to fundraise at a level that fulfils all existing commitments, including to its staff, grantees and to the Malala Fund UK, while also fuelling programmatic expansion. The financial health of the organisation is due in large part to the consistency of funding from several well-established institutional funders giving at the multi-year level as well as steps taken by organisational leadership to cut expected spending by approximately 15% in FY2020-2021.

Reserves policy

Given the Malala Fund UK’s status as a fairly new charity and its modest financial activity during FY2020-2021 (relative to the financial activity of its nearly exclusive funding source for the period, the Malala Fund US), the charity does not have a reserves policy yet. The charity will establish such a policy once it has scaled up independent fundraising in the United Kingdom.

Per the inter-company cooperation agreement between the Malala Fund UK and the entity in the US, in event of a revenue shortfall, the US entity is prepared to cover any payment and other

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The Malala Fund UK

Trustees’ annual report

For the year ended 31 March 2021

resources to cover the Malala Fund UK’s contractual obligations in accordance with annual budgets or as approved in writing by the boards of the two entities, utilising US reserve funds or other sources. At the end of the year the Malala Fund UK had free reserves (defined as unrestricted funds excluding fixed assets) of £50,507.

Fundraising

The Malala Fund UK did not engage in any significant, solicited fundraising efforts during FY20202021, its third year as registered charity. Approximately 98% of the charity’s £1,202,678 in net revenue for FY2020-2021 arrived in the form of a grant from the Malala Fund US, in alignment with the inter-company cooperation agreement between the two entities to support a shared mission. In addition, the Malala Fund US also provided the charity with £79,944 in in-kind contributions to support the newer charity. While a portion of the CEO salary was allocated to fundraising, no fundraising-specific staff were employed by the Malala Fund UK during FY2020-2021. The charity did not employ professional fundraisers and it received no complaints.

Structure, governance and management

The organisation is a charitable company limited by guarantee, incorporated on 6 January 2017 and registered as a charity on 5 June 2018. The company was established under a memorandum of association which established the objects and powers of the charitable company and is governed under its articles of association.

Trustees of the Malala Fund UK are recruited and retained based on their talents and ability to add significant value in some or all of the following areas: 1) Subject matter expertise on global (girls’) education, with an understanding of the constituencies the Malala Fund serves; 2) Core business experience in advocacy, grant-making, operational programming, etc.; 3) Innovative, strategic communications experience; and 4) Board governance experience and experience in organisational management, particularly in the charity sector.

As a matter of formal vote, the trustees of the Malala Fund UK may appoint new board members as they deem beneficial. The Malala Fund UK’s sole member, the Malala Fund US, may also appoint trustees, as was the case at the time of the Malala Fund UK’s initial establishment. All trustees give their time voluntarily and receive no benefits from the charity.

In terms of trustee induction, key trustee documents are provided to all new trustees, including a detailed overview of trustee roles, responsibilities and expectations. Induction for new trustees includes a handover of key documents and a series of weekly meetings with individual departments covering topics such as organisational history, key programmatic priorities, fundraising plans and financial health and planning.

Governance activities of the Malala Fund UK’s trustees include the following:

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The Malala Fund UK

Trustees’ annual report

For the year ended 31 March 2021

The Malala Fund UK’s CEO (a shared employee with The Malala Fund US) is authorised to make decisions relating to office expansion, staff changes, major campaigns, employee policies and security or reputational concerns, but in all of these cases must first consult with the trustees. The CEO is also responsible for day-to-day management and decision-making for the charity and implementation of trustee-approved strategic plans. They are supported by an Executive Leadership Team composed of two senior department heads who are employees of the Malala Fund UK and three senior department heads employed by the Malala Fund in the US

The trustees of the Malala Fund UK conducted two formal meetings in FY2020-2021 (both virtual), in September 2020 and February 2021, with all trustees present. Most trustees were also present as observers during three additional board calls of the Malala Fund US’s board of directors during the same financial year.

Related parties and relationships with other organisations

During the entirety of FY2020-2021, the sole member of the charity was the Malala Fund (US), a registered not-for-profit United States 501(c)(3) charitable organisation. By April 2021, the two entities were joined by a third member, The Malala Fund Nigeria LTD, a Nigerian company limited by guarantee with a charitable purpose. While the three organisations are independent entities, they do cooperate around a shared mission in service to the same beneficiaries.

Remuneration policy for key management personnel

The Malala Fund UK maintains a shared policy with the Malala Fund US for determining the compensation level of the charity’s CEO. Under the policy, the trustees set the salary level for the CEO and in doing so must rely on comparability data that demonstrates the reasonableness of the proposed CEO compensation. For example, when setting compensation, the trustees must secure data that documents compensation levels paid by similarly situated organisations for functionally comparable positions.

The compensation levels for all other staff of the Malala Fund UK are authorised by the charity’s CEO. The salary levels of the charity are based on comparability data sourced by the charity’s operations and human resources staff.

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The Malala Fund UK

Trustees’ annual report

For the year ended 31 March 2021

Statement of responsibilities of the trustees

The trustees (who are also directors of the Malala Fund UK for the purposes of company law) are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and 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 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.

In so far as the trustees are aware:

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

The sole member of the charity, The Malala Fund guarantees to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The trustees have no beneficial interest in the charity.

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The Malala Fund UK

Trustees’ annual report

For the year ended 31 March 2021

Auditor

Sayer Vincent LLP was appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.

The trustees’ annual report has been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

The trustees’ annual report has been approved by the trustees on 10 December 2021 and signed on their behalf by:

Akhter Mateen Chair, Board of Trustees The Malala Fund UK

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Independent auditor’s report

To the members of

The Malala Fund UK

Independent auditor’s report to the members of The Malala Fund UK

Opinion

We have audited the financial statements of The Malala Fund UK (the ‘charitable company’) for the year ended 31 March 2021 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

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Independent auditor’s report

To the members of

The Malala Fund UK

Other Information

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine

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Independent auditor’s report

To the members of

The Malala Fund UK

is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in 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 are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

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Independent auditor’s report

To the members of

The Malala Fund UK

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Noelia Serrano (Senior statutory auditor) 17 December 2021

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

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The Malala Fund UK

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2021

Note
Income from:
2
3a
3a
4
Reconciliation of funds:
Total income
Expenditure on:
Raising funds
Charitable activities
Donations and legacies
Net (expenditure) / income for the year
Total expenditure
Total funds brought forward
Total funds carried forward		 Unrestricted
£
1,275,383		 Restricted
£
7,239		 2021
Total
£
1,282,622
1,282,622
22,516
1,559,948
1,582,464
(299,842)
350,349
50,507		 2020
Total
£
1,184,581
1,275,383 - 1,184,581
22,516
1,552,709		 -
7,239		 16,120
888,611
1,575,225 7,239 904,732
(299,842)
350,349		 -
-		 279,849
70,500
50,507 - 350,349

All activities in 2020 were unrestricted.

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above.

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The Malala Fund UK

Balance sheet

Balance sheet Balance sheet
As at 31 March 2021 Company no. 10551265
Note
£
Current assets:
9
87,134
54,642
141,776
Liabilities:
10
(91,269)
Creditors: amounts falling due within one year
Total net current assets and total net assets
Cash and cash equivalents
Debtors
Total charity funds
General unrestricted funds
The funds of the charity:
Restricted funds		 2021
£
50,507		 £
69,549
332,943		 2020
£
350,349
141,776
(91,269)		 402,492
(52,143)
-
50,507		 -
350,349
50,507 350,349

Approved by the trustees on 10 December 2021 and signed on their behalf by

Akhter Mateen Chair, Board of Trustees

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The Malala Fund UK

Statement of cash flows

For the year ended 31 March 2021

Note
£
£
(299,842)
(17,585)
39,126
Net cash provided by operating activities
(278,301)
(278,301)
332,943
a
54,642
Analysis of cash and cash equivalents and of net debt
At 1 April
2020
Cash flows
£
£
Cash at bank and in hand
332,943
(278,301)
Total cash and cash equivalents
332,943
(278,301)
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
2021
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Net (expenditure) / income for the reporting period
(as per the statement of financial activities)
Cash and cash equivalents at the beginning of the year		 Note
£
£
(299,842)
(17,585)
39,126
Net cash provided by operating activities
(278,301)
(278,301)
332,943
a
54,642
Analysis of cash and cash equivalents and of net debt
At 1 April
2020
Cash flows
£
£
Cash at bank and in hand
332,943
(278,301)
Total cash and cash equivalents
332,943
(278,301)
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
2021
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Net (expenditure) / income for the reporting period
(as per the statement of financial activities)
Cash and cash equivalents at the beginning of the year		 Note
£
£
(299,842)
(17,585)
39,126
Net cash provided by operating activities
(278,301)
(278,301)
332,943
a
54,642
Analysis of cash and cash equivalents and of net debt
At 1 April
2020
Cash flows
£
£
Cash at bank and in hand
332,943
(278,301)
Total cash and cash equivalents
332,943
(278,301)
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
2021
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Net (expenditure) / income for the reporting period
(as per the statement of financial activities)
Cash and cash equivalents at the beginning of the year		 £
£
279,849
26,619
(2,933)
303,536
303,536
29,407
332,943
Other non-
cash
changes
At 31 March
2021
£
£
-
54,642
-
54,642
2020		 £
£
279,849
26,619
(2,933)
303,536
303,536
29,407
332,943
Other non-
cash
changes
At 31 March
2021
£
£
-
54,642
-
54,642
2020
(278,301) 303,536
(278,301)
332,943		 303,536
29,407
54,642 332,943
Cash flows
£
(278,301)		 At 31 March
2021
£
54,642
332,943 (278,301) - 54,642

19

The Malala Fund UK

Notes to the financial statements

For the year ended 31 March 2021

a) Statutory information

The Malala Fund UK is a charitable company limited by guarantee and is incorporated in the United Kingdom.

The registered office address and principal place of business is 138 Holborn, London, EC1N 2SW.

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

c) Public benefit entity

The charity meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees have not made any key judgements that have a significant effect on the accounts.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Income

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

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

f) Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.

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

20

The Malala Fund UK

Notes to the financial statements

For the year ended 31 March 2021

g) Interest receivable

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.

h) Fund accounting

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

i) Expenditure and irrecoverable VAT

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

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

j) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity.

Support and governance costs are re-allocated to each of the activities on the following basis which is an estimate, based on direct costs incurred, of the amount attributable to each activity:

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

k) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

l) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £3,500 ($5,000). Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

m) Debtors

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

n) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

21

The Malala Fund UK

Notes to the financial statements

For the year ended 31 March 2021

1 Accounting policies (continued)

o) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

p) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

q) Pensions

The charity operates a defined contribution pension scheme with Royal London. Employer contributions of 9% are charged to the statement of financial activities for the period to which they relate. The company has no liability under the scheme other than payments of these contributions.

2 Income from donations and legacies

General donations
Individual donations
Gift Aid
Donated services		 Unrestricted
£
1,175,338
19,828
273
79,944		 Restricted
£
-
7,239
-
-		 2021
Total
£
1,175,338
27,067
273
79,944		 2020
Total
£
1,042,080
42,921
5,088
94,492
1,275,383 7,239 1,282,622 1,184,581

All income received in 2020 was unrestricted income.

22

The Malala Fund UK

Notes to the financial statements

For the year ended 31 March 2021

3a Analysis of expenditure (current year)

Staff costs (Note 5)
Staff training
Fundraising costs
Bank fees
Insurance
Professional services
Travel
Occupancy
Communications
Office expenses
Honorariums
Loss on foreign exchange
Support costs
Governance costs
Total expenditure 2021
Total expenditure 2020		 Raising funds
£
2,020
-
18
-
-
-
-
-
-
-
-
-
2,038
19,084
1,395
22,516
16,120		 Charitable activities
Programmes and
advocacy
£
1,145,962
-
-
-
-
-
4,280
160,733
-
-
-
-
1,310,975
232,017
16,956
1,559,948
888,611		 Support
costs
£
137,281
3,466
-
2,728
16,546
57,033
-
15,009
8,500
9,657
-
880
251,101
(251,101)
-
-
-		 Governance
costs
£
-
-
-
-
-
18,351
-
-
-
-
-
-
18,351
-
(18,351)
-
-		 2021
2020
Total
Total
£
£
1,285,263
648,005
3,466
5,398
18
-
2,728
1,901
16,546
10,403
75,384
64,049
4,280
-
175,742
163,241
8,500
-
9,657
8,116
-
2,087
880
1,532
1,582,464
904,732
-
-
-
-
1,582,464
904,732

23

The Malala Fund UK

Notes to the financial statements

For the year ended 31 March 2021

3b Analysis of expenditure (prior year)

Staff costs (Note 5)
Staff training
Bank fees
Insurance
Professional services
Travel
Occupancy
Communications
Office expenses
Honorariums
Meetings and events
Loss on foreign exchange
Support costs
Governance costs
Total expenditure 2020		 Raising funds
£
3,514
-
-
-
-
-
-
-
-
-
-
-
3,514
11,968
638
16,120		 Charitable activities
Programmes and
advocacy
£
560,270
-
-
-
26,500
-
146,488
-
-
2,087
-
-
735,345
145,505
7,762
888,611		 Support
costs
£
84,221
5,398
1,901
10,403
29,149
-
16,753
-
8,116
-
-
1,532
157,473
(157,473)
-
-		 2020
Governance
costs
Total
£
£
-
648,005
-
5,398
-
1,901
-
10,403
8,400
64,049
-
-
-
163,241
-
-
-
8,116
-
2,087
-
-
-
1,532
8,400
904,731
-
-
(8,400)
-
-
904,731

24

The Malala Fund UK

Notes to the financial statements

For the year ended 31 March 2021

4 Net income for the year before foreign exchange losses

This is stated after charging:

This is stated after charging:
2021 2020
£ £
Auditor's remuneration (excluding VAT):
Audit 7,150 7,000
Other services 1,350 1,300
Foreign exchange losses 880 1,532

Staff costs were as follows:

Staff costs were as follows:
Employer’s contribution to defined contribution pension schemes
Other forms of employee benefits:
Salaries and wages
Other benefits - working from home allowance
Life and ADD insurance
Social security costs
Redundancy and termination costs		 2021
£
1,053,896
30,000
109,315
85,261
2,632
4,160		 2020
£
549,774
-
54,866
42,729
636
-
1,285,264 648,005

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:


employer's national insurance) during the year between:
2021 2020
No. No.
£60,000 - £69,999 4 2
£80,000 - £89,999 1 -
£90,000 - £99,999 1 -
£100,000 - £109,999 - 1
£110,000 - £119,999 - 1
£120,000 - £129,999 1 1

The total employee benefits (including pension contributions and employer's social security) of the key management personnel were £8,355 (2020: £17,735). The CEO's salaries and benefits are paid by The Malala Fund USA and so only a proportion has been allocated to The Malala Fund UK, in line with the staff time spent on The Malala Fund UK work.

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).

Trustees' expenses in the year were nil (2020: £nil).

25

The Malala Fund UK

Notes to the financial statements

For the year ended 31 March 2021

6 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 19 (2020: 11).

Staff are split across the activities of the charity as follows:

Staff are split across the activities of the charity as follows:
Support
Raising funds
Programmes & advocacy		 2021
No.
15.3
0.2
3.5		 2020
No.
7.8
0.2
3.0
19.0 11.0

Average head count is based on the number of staff working for The Malala Fund UK each month. The figure includes 4 staff employed by The Malala Fund US for the months where a portion of the cost of their employment has been allocated to The Malala Fund UK. A portion of the CEO, COO and Controller's time has been allocated to Raising Funds.

7 Related party transactions

The Malala Fund, the parent charity of The Malala Fund UK, funded the costs of salaries and rental costs in the year totalling £1,175,338 (2020: £1,042,080). In addition it provided in kind support totalling £79,994 (2020: £94,492). This is recognised as income in the accounts.

There were no donations from trustees or senior management in the year (2020: £nil).

8 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

9 Debtors

Debtors
Other debtors - funds held on behalf of The Malala Fund UK
Prepayments
Trade debtors
Other debtors - We Work deposit		 2021
£
2,864
21,000
60,236
3,034		 2020
£
-
25,500
42,458
1,591
87,134 69,549

26

The Malala Fund UK

Notes to the financial statements

For the year ended 31 March 2021

10 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Taxation and social security
Accruals
Other creditors
Trade creditors		 2021
£
2,050
32,978
12,675
43,566		 2020
£
-
27,857
9,526
14,760
91,269 52,143

11a Analysis of net assets between funds (current year)

11b
12a
At 1 April
2020
£
Restricted fund - Pakistan
-
350,349
350,349
Total funds
Unrestricted general funds
Net assets at 31 March 2020
Movements in funds (current year)
Net assets at 31 March 2021
Analysis of net assets between funds (prior year)
Net current assets
Net current assets		 11b
12a
At 1 April
2020
£
Restricted fund - Pakistan
-
350,349
350,349
Total funds
Unrestricted general funds
Net assets at 31 March 2020
Movements in funds (current year)
Net assets at 31 March 2021
Analysis of net assets between funds (prior year)
Net current assets
Net current assets		 Income &
gains
£
7,239		 General
unrestricted
£
50,507		 Restricted
£
-		 Total funds
£
50,507
50,507 - 50,507
General
unrestricted
£
350,349		 Restricted
£
-		 Total funds
£
350,349
350,349 - 350,349
Expenditure
& losses
£
(7,239)		 Transfers
£
-		 At 31 March
2021
£
-
350,349 1,275,383 (1,575,225) - 50,507
350,349 1,282,622 (1,582,464) - 50,507

The narrative to explain the purpose of each fund is given at the foot of the note below.

27

The Malala Fund UK

Notes to the financial statements

For the year ended 31 March 2021

Restricted funds
Unrestricted general funds
Total funds		 At 1 April
2019
£
-		 Income &
gains
£
-		 Expenditure
& losses
£
-		 Transfers
£
-		 At 31 March
2020
£
-
70,500 1,184,581 (904,732) - 350,349
70,500 1,184,581 (904,732) - 350,349

Purposes of restricted fund - Pakistan

The funds received were restricted to support local educators and activists in Pakistan.

13 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of the sole member, The Malala Fund, in the event of winding up is limited to £1.

14 Ultimate controlling party

The company's ultimate parent undertaking and controlling party is The Malala Fund, a Section 501©(3) charitable corporation incorporated in the State of Delaware, U.S.A.

28