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2021-03-31-accounts

ODI Annual Report and Financial Statements For the year ended 31 March 2021

ODI annual report 202012021

ODI annual report 2020/2021

Contents

Contents Contents
Statement from the Chair ............................................................................... 5
Summary ....................................................................................................... 6
Our strategic priorities ................................................................................ 6
Our activities in 2020/2021 ......................................................................... 7
Achievements and performance: a strategic overview ................................... 8
1 Take urgent action to tackle the climate emergency ............................ 8
Transboundary adaptation ...................................................................... 8
Ending public support for fossil fuels ....................................................... 9
2 Build a fair and sustainable future for all ............................................ 10
The socio-economic impact and policy responses to the Covid-19 crisis
............................................................................................................. 10
Financing the response to the Covid-19 crisis ...................................... 10
Migrant key workers ............................................................................. 11
3 Redefine the social contract .............................................................. 12
Gender norms ...................................................................................... 13
Tackling inequality ................................................................................ 13
4 Promote human rights and peace ..................................................... 14
Promoting peace and tackling conflict ................................................... 14
Humanitarian leadership and coordination in a complex crisis .............. 14
5 Promote digital governance and rights .............................................. 15
6 Reshape global leadership and inspire new coalitions ...................... 16
Supporting a more locally led aid model ............................................... 16
Adaptive leadership .............................................................................. 16
The Mayors Dialogue............................................................................ 17
Maintaining our external visibility .......................................................... 17
ODI Fellowship Scheme ....................................................................... 19
ODI’s presence in Europe ..................................................................... 19
Our staff and values ............................................................................. 20
Financial and operational performance ........................................................ 21
Reserves policy ........................................................................................ 22
Investment policy ..................................................................................... 23
Approach to fundraising ........................................................................... 23
Principal risks and uncertainties ............................................................... 23
Future plans ................................................................................................ 26
ODI strategy 2021–2025 .......................................................................... 26
Context ................................................................................................. 26
A global, diverse organisation ............................................................... 27
Our long-term direction ......................................................................... 27
Our five-year objectives ........................................................................ 28

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Our priorities for FY 2021–2022 ............................................................ 30 Structure, governance and management .................................................... 31 Group constitution .................................................................................... 31 The Board of Trustees ............................................................................. 31 Trustee recruitment and training............................................................... 31 Organisational structure and reporting ..................................................... 31 Setting remuneration ................................................................................ 32 Disabled employees ................................................................................. 33 Employee involvement ............................................................................. 33 Public benefit ........................................................................................... 33 Members’ liability ..................................................................................... 33 Statement of Trustees’ responsibilities ..................................................... 33 Reference and administration details ........................................................... 35 Independent auditors’ report to the members of Overseas Development Institute ........................................................................................................ 37 Consolidated Statement of Financial Activities (including income and expenditure account) – for year ended 31 March 2021 ............................ 41 Balance Sheet – at 31 March 2021 .......................................................... 42 Consolidated cash flow statement – for year ended 31 March 2021 ......... 43 Notes to the financial statements – for year ended 31 March 2021 .......... 44

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Statement from the Chair

This has been a uniquely challenging year, for ODI as an organisation, for the sector and for the world. The Covid-19 pandemic has killed millions, devastated economies and prompted severe restrictions on daily life. Closer to home, changes within the UK government and deep cuts in government support have radically changed the funding landscape.

In the face of these challenges, ODI has proved remarkably resilient and adaptable, shifting seamlessly to remote working and convening; adapting its business model to reflect the new funding reality; and adopting innovative research methods drawing on local expertise and knowledge. To mark its sixtieth anniversary, the organisation launched a thorough rebrand, a new website and a new five-year strategy reflecting its ambitions as a genuinely global, multi-disciplinary think tank, while maintaining its position as a key source of research, ideas and analysis to inform development and humanitarian action on behalf of the world’s poorest and most vulnerable people.

In his nine years as Chair of the Board, James Cameron has been instrumental in driving ODI’s continued success. As I take over as Chair I look forward to continuing that work, helping to ensure that ODI remains as relevant and vital today as it was at its foundation 60 years ago.

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Summary

Our strategic priorities

The year 2020/2021 saw ODI transition from the previous strategy, launched in 2018, to the finalisation and launch of a new strategy in March 2021, to coincide with ODI’s 60[th] anniversary.

The 2018 strategy was framed around four thematic areas:

Two cross-cutting themes focused on the approaches needed to enable progress and address the risks associated with making change happen:

The new five-year strategy was developed against the backdrop of significant changes in the external context, including the Covid-19 pandemic and Brexit. We also reconsidered ODI’s role and relevance as a global think tank focusing on the most important challenges facing the world.

In this context, and on the occasion of ODI’s 60[th] anniversary, we invited global, community and youth leaders, activists, businesses, academics and experts to explore and share ideas to build a better world. Through the #GlobalReset dialogue we asked:

ODI argued at the outset of the pandemic that we cannot go back to normal, because normal was the problem. We must seize this opportunity to reset before old habits reestablish themselves.

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The conclusions of the Global Reset dialogue are at the heart of our new five-year strategy and are summarised in the next section, which highlights some of our key impacts.

Our activities in 2020/2021

ODI works across a wide range of sectors and issues with a direct impact on the wellbeing of the world’s poorest people. We have nine core programmes, a public affairs and communications department and a shared services team ensuring the successful delivery of programmes and operation of the Institute. While each programme focuses on its specific area of expertise, larger pieces of work span programmes and draw multidisciplinary teams together.

ODI hosts important networks and consortia, including the Humanitarian Practice Network (HPN) and the Active Learning Network for Accountability and Performance in Humanitarian Action (ALNAP). We also host long-term multi-partner research initiatives, such as the Secure Livelihoods Research Consortium (SLRC), Gender and Adolescence: Global Evidence (GAGE) and the Global Property Rights Index (Prindex). We run a Fellowship Scheme that places graduate economists and statisticians in public policy institutions around the world. ODI also publishes two academic journals, Development Policy Review and Disasters.

The Covid-19 pandemic was a dominating aspect of the global operating context throughout 2020/2021, creating enormous challenges for societies, economies and institutions across the world. ODI shifted almost all of its work online, we increased our

research and advisory work through in-country partners, and established new ways of convening events online. Through ODI’s Global Reset and other work, we pivoted the focus of much of our work to be relevant in the Covid-19 context. While ODI successfully adapted to the Covid-19 context overall, it was a challenging year; we had to evacuate many ODI Fellows from their operating locations, stopped most staff travel, worked almost entirely remotely and faced financial challenges as some work needed to be delayed and some funders reduced their contributions. We managed the situation carefully, undertook contingency planning and adjusted our work and operations as needed during the year to ensure future sustainability. ODI’s annual results were positive overall and we continue to plan and adjust during what we expect will be another challenging year in 2021/2022.

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Achievements and performance: a strategic overview

Over the course of 2020/2021, ODI produced influential work across all areas of its current strategy. ODI also adapted to be relevant to the Covid-19 context and to different ways of working. ODI’s website provides comprehensive coverage of the range and depth of our work across each strategic area through high-quality research, country-based activities and world-class public affairs and communications. In light of the transition to ODI’s new strategy, the following examples of our impact are organised within the conclusions of the Global Reset exercise completed during the year.

1 Take urgent action to tackle the climate emergency

2020 was tied for the hottest year on record, alongside 2016. Although the year will primarily be remembered for Covid-19, many countries were also devastated by climate-related disasters, from the bushfires that swept Australia to super-cyclone Amphan devastating the Bay of Bengal and locust swarms plaguing the Horn of Africa. As average global temperatures continue to rise, the frequency and intensity of such disasters will increase. ODI has focused on generating new evidence and supporting policy-makers to secure a green, climate-resilient economic recovery from the pandemic.

Transboundary adaptation

ODI is a founding member of Adaptation Without Borders (AWB), which works to strengthen both systemic resilience to the cross-border impacts of climate change and adaptation action. We are pushing thought leaders and policy-makers to recognise the cross-border nature of climate risks, and encouraging governments to adopt a transboundary approach to adaptation.

We participated in a number of technical and political dialogues focusing on transboundary adaptation in the run-up to COP26, including delivering a keynote speech at a webinar on climate action in the Hindu Kush Himalaya region. ODI co-led, with Mott MacDonald, a virtual series of high-level UK–Bangladesh Climate Partnership Forum events on adaptation and resilience on behalf of the UK FCDO and the British High Commission Dhaka. AWB plans to work with the UK COP26 Presidency to champion regional transboundary adaptation and resilience planning. As part of this, we called for the creation of a ‘Glasgow Agenda on Transboundary

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Climate Risk Management’ to increase visibility around the assessment and management of transboundary risks.

These events have helped open a dialogue with key stakeholders and decisionmakers, including Anne-Marie Trevelyan MP, UK International Champion on Adaptation and Resilience for the COP26 Presidency. We have had positive early signals about progress, including from the UNFCCC Adaptation Committee. Following written input from AWB, transboundary climate risk is now considered in efforts to make operational the Global Goal on Adaptation introduced in the Paris Agreement. AWB will propose ways of measuring progress in reducing transboundary climate risks, which can then be used in the 2023 UNFCCC Global Stocktake for adaptation.

ODI is continuing to promote nature-based solutions (NBS) as a climate change mitigation and adaptation measure. We published a report on Scoping opportunities, barriers and enablers of nature-based solutions in Russia, which makes recommendations for future UK–Russia collaboration, on accelerating and scaling up implementation of NBS to realise environmental benefits, including restoring and safeguarding biodiversity. We chaired a British Embassy Moscow event focusing on the vital role of NBS in tackling climate change and their potential in Russia. Participants included the UK Minister for Pacific and the Environment, the UK Ambassador to Russia, and the Russia directors of UNIDO, UNEP, IUCN and WWF. This research and convening is helping to promote understanding and exchanges on shared challenges despite the sensitive diplomatic context.

Ending public support for fossil fuels

ODI continued to push governments to end financial support to fossil fuels, working closely with a network of leading research and advocacy organisations. In FY20/21, we released three signature pieces:

Our research was featured in over 1,000 media stories in more than 50 countries (including Forbes, The New York Times and The Guardian) and cited by numerous influential figures including the UN Secretary-General, António Guterres. Our

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evidence base contributed to the work of UNEP, the Green Climate Fund, the World Bank and the OECD, and we were invited to provide evidence to the UK Parliament.

Most importantly, our research has helped to create a sense of urgency around ending public support for fossil fuels. In December 2020, the French and UK governments and the European Investment Banks made ground-breaking commitments to end fossil fuel financing overseas. The G7 followed in 2021, with a commitment to end international support for coal-fired power plants.

2 Build a fair and sustainable future for all

The Covid-19 pandemic exposed the gross inequalities of the current economic and social order, fuelling demands for a fairer economic and political system. Now is the time to challenge power structures and dynamics that sustain inequality, and to create a fairer, more inclusive global economic system. ODI focuses on rethinking the economic framework and investing for sustainable development, encompassing employment and climate objectives, and investing to close the gap between rich and poor.

The socio-economic impact and policy responses to the Covid-19 crisis

As early as February 2020, ODI was analysing the potential impacts of the coronavirus crisis. By April 2020, ODI mobilised its extensive network of ODI Fellows to analyse the economic impact and policy responses in more than 30 countries.

Our analysis suggesting a large impact on poorer countries and demonstrating a large difference in the fiscal responses between low-income and G20 countries was widely cited in the media as the crisis emerged more fully.

We continued working with Southern think tanks, including Southern Voice and others, to analyse the impact of the crisis from a Southern perspective, influencing the G20 and macro-economic policy responses in five countries. We are also exploring the role of the African Continental Free Trade Area in a resilient recovery from the crisis, working with the African Union (AU) and UNECA.

Financing the response to the Covid-19 crisis

In April 2020, ODI set out a series of options for how international organisations could help to cushion the impacts of the crisis. Unfortunately, the national interest has often seemed to trump collective international responses. As such, the publication of the updated Principled Aid Index was timely, and was once again widely picked up in the media. The Index, developed in recognition of growing aid nationalism in Western donor countries, seeks to distinguish progressive aid allocations that serve a country’s long-run national interests in a safer, more prosperous and more sustainable world, from those that express parochial desires to service short-term commercial or geopolitical interests.

Throughout the year, we have tracked the response of multilateral development banks and how they can support economic recovery post-Covid. In April, we made the case (again) for multilateral development banks to deploy their capital more aggressively. Italy, as chair of the G20, is also looking closely at our proposal for an external review of the capital adequacy of banks.

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ODI work has also brought Africa’s national development banks into the spotlight. National development banks have huge potential to support their country’s development efforts. However, international financial institutions are still reluctant to work with them. Our research on the governance and financial performance of these banks has helped credit rating agencies move beyond intuition and instead draw upon actual evidence.

ODI has worked in partnership with the Institute of Fiscal Studies to produce a range of materials aimed at helping governments navigate the fiscal challenges of the crisis. This has included suggestions on how initial relief efforts could be supported, opportunities to mobilise revenue and potential approaches to invest to support recovery. ODI also launched a new series of working papers looking at how public finances can strengthen service delivery as the crisis recedes.

Through our long-term partnerships with African finance ministries, we have provided direct support to governments trying to deal with the fiscal challenges posed by the crisis. In Liberia, we have supported the Finance Ministry in navigating a new IMF programme. In Uganda, we have supported the government to access $200 million in concessional financing from the World Bank and €30 million in financing from the EU to support grants to basic services. Our UKAid-funded TaxDev programme has worked with civil servants in Rwanda and Uganda to analyse how the crisis is affecting businesses, and how the tax system can protect revenues and provide relief. We are also starting a new partnership with Sudan’s Finance Ministry as it embarks on a series of political and economic reforms.

At the regional level, ODI has worked with the Global Fund to support the AU in convening African finance and health ministers as they sought to navigate some of the challenging fiscal choices exacerbated by the pandemic. In partnership with the Collaborative African Budget Reform Initiative, we have facilitated dialogues with finance ministries on how to manage rising debt.

Migrant key workers

Migrant essential workers have been on the frontline of the Covid response. ODI has been a leading voice in policy debates around the role and value of these workers in our societies, exploring a range of policy areas, including the national regularisation programmes in Portugal, Italy, France and Colombia, and the role of migrant scientists in the development of the Pfizer vaccine.

In March 2020 we highlighted the essential role of migrant workers in key sectors of the Covid emergency. As the pandemic unfolded, we collected real-time examples of their contributions in healthcare, agriculture, food supply chains and beyond, and proposed reforms to facilitate migrant labour. Our work has featured on the Brookings blog, and in national newspapers such as El Pais, Corriere della Sera and elsewhere.

In a rapidly evolving and noisy policy landscape, we created an innovative data visualisation tool on migration to cut through and reach new audiences. It has so far received over 22,000 page views and sparked debate on the role of design in supporting social change, opening up a new sphere of influence for ODI. ‘Now accepting contactless’ was exhibited at the V&A Design Museum showcasing design and Covid. It was also covered by Wallpaper magazine and featured in a design masterclass at Palazzo Grassi in Venice.

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ODI has extended its audience base to the art and culture sectors and established new creative relationships. We reflected on the role of data and design in influencing policy during an online event co-hosted with V&A Dundee, which had over 300 participants from 37 countries. In the transition from emergency response to Covid-19 recovery, ODI’s work continues to raise awareness and inform debate on migrant key workers.

3 Redefine the social contract

Political and societal leaders should take action to make progressive and just policies central to the post-pandemic recovery. We must establish an economic system anchored in rights and dignity for all, founded on values of equality, solidarity, justice and human rights. ODI is contributing to redefining the social contract by pushing for transformative and sustainable change that explicitly seeks to rebuild the social fabric while addressing injustice, as well as a focus on strengthened social protection for the long term.

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Gender norms

Work on gender norms goes from strength to strength despite Covid-19 curtailing what was to be a highly significant year, given the 25th anniversary of Beijing ’95, from which much progress on gender equality is measured.

Analysis of gender power and progress in norm change over 25 years showcased how norms have changed, but with stagnation and backlash along the way. The debate at ODI’s global policy forum in December 2020 brought experienced and youth voices together to discuss progress on norm change and promote engagement in this critical area. In the context of recent spikes in violence against women in politics, an ODI event in May 2020 sought to align actors from multiple sectors to tackle this surge, complementing our successful recruitment of multiple partners to understand the drivers of violence in the workplace. One partner, YUWA, is focusing on solutions to gender-based violence as experienced by members of the House of Representatives in Nepal. Others are focusing on violence in the healthcare, manufacturing and agriculture sectors.

With the impacts of Covid-19 globally significantly affecting women and girls, our work to address backsliding on women’s rights is ever-more critical. In 2020, women’s care work increased exponentially, domestic violence surged and educational gains, particularly for girls, eroded. Sexual and reproductive health and rights (SRHR) services and policy have been neglected. Our work in Homa Bay, Kenya, on adolescent pregnancies, and in the Philippines and Zimbabwe, on unpaid care work, is helping to shift local and national government dialogue and policy. Our analysis of the mental health impacts of Covid-19 in Vietnam and Tanzania and health system responses, including from less well-known contexts such as Cuba, is informing responses to current health emergencies, and underscoring the importance of shifting gender norms for sustainable change.

Tackling inequality

Persistent poverty and rising inequality in recent years have led to growing calls to put equity and sustainability considerations at the centre of policy-making. These trends have also contributed to the resurgence of lively debates on the social contract and the role of public policy and redistribution in building a society that works for all. The Covid-19 crisis has further exposed inequities and risks exacerbating them.

ODI contributed to global- and local-level policy debate and decision-making through original analysis, technical advisory work and convening. This included a major report on Universal Child Benefits, which was debated at a high-level event, covered extensively in the media and cited as a key resource in policy reforms adopted in Italy. We published analysis on achieving Universal Health Coverage, hosted a webinar debate and explored the opportunity presented by the pandemic to expand health coverage.

In January 2021 ODI convened a high-level conference on Inequality and a new social contract, as part of the Global Reset series. This brought together key stakeholders from across government, academia and civil society to discuss how to place tackling inequality through a new social contract at the front and centre of recovery efforts. The event was covered in the media (e.g. here), and has led to continued exchanges with government officials, researchers and advocacy leads.

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4 Promote human rights and peace

Seventy-five years after the UN was established, the promise of the Universal Declaration of Human Rights remains largely unfulfilled. Human rights and a rulesbased order are fundamental to building peaceful, just and inclusive societies. ODI focuses research and policy advice on governance and systems that uphold human rights and international humanitarian law, promote peace and ensure justice for all.

Promoting peace and tackling conflict

ODI hosts an initiative sponsored by the Australian Department for Foreign Affairs and Trade (DFAT) called Lessons for Peace: Afghanistan (L4P). Through its advisory work, L4P has helped introduce a sharper political lens to the planning and prioritisation of major aid instruments. This includes the World Bank’s Afghanistan Reconstruction Trust Fund (ARTF), through which 75% of international funding to the country is channelled. L4P also produced a range of analytical products in advance of a major pledging conference in November 2020. As part of this work, the project produced analysis of the pressures on non-governmental and civil society organisations and recommendations for the creation of a new consultative forum with government. These recommendations have since been taken up by the United Nations Assistance Mission in Afghanistan (UNAMA), with further L4P support and convening assistance.

Our experts brought critical insights to important debates about the need to rethink fragility, including providing reflections on the latest OECD States of Fragility report and the new US Fragility Strategy, both of which generated debate and facilitated direct engagement with OECD stakeholders, notably on digitalisation, young people and fragility. We also shaped policy debates on the regulation of digital platforms and business in conflict-affected/fragile situations, through publications (It takes two to tango) and facilitation of public events as part of ODI’s Global Reset dialogues around youth, mis/disinformation and violence in the digital age.

In June 2020, ODI established the Centre for the Study of Armed Groups. Through original research and policy analysis, the Centre is engaging policy-makers and operational actors on real-world issues and on-the-ground dilemmas posed by engagement with armed groups. The Centre convened events and policy dialogues on armed group responses to the Covid-19 pandemic and insurgent justice. Publications include a briefing note on how to include non-state actors in humanitarian norm development processes and a working paper on Taliban attitudes and policies towards education. Our analysis has been regularly cited by media outlets internationally, including Foreign Policy, The Washington Post, The Economist, Reuters, NBC News and The Guardian.

Humanitarian leadership and coordination in a complex crisis

The tenth Ebola outbreak in the Democratic Republic of Congo lasted almost two years – much longer than assumed at the start – and became the second-largest outbreak in the world, killing over 2,000 people. ODI’s independent analysis – The Democratic Republic of Congo’s 10[th] Ebola response: lessons on international leadership and coordination – was commissioned at the end of the outbreak to investigate the effectiveness of international leadership and coordination, and why it took so long for the outbreak to be brought under control. The study, conducted in partnership with a local research organisation, Research Initiatives for Social Development (RISD), built

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on ODI’s previous work on the 2014–2016 Ebola outbreak in West Africa, which found similar blockages to an effective response.

The partnership approach with RISD, a reference group of key stakeholders and a high-level roundtable with representatives from donors and the IASC strengthened engagement and buy-in for our recommendations. This helped to promote an earlier understanding of the need for a holistic, multi-sectoral approach to Ebola responses, which was implemented from the outset in subsequent outbreaks.

A key approach to the dissemination of this work was ensuring greater access and inclusivity. The report was published in French and English and accompanied by blogs (here, here and here) and short videos (here, here, here and here) to expand the audience and engage the public. We also held a public webinar with RISD, which included live interpretation in French and English, and a fifth of the audience at the webinar was from the DRC.

5 Promote digital governance and rights

ODI’s digital societies work aims to contribute to the development of frameworks that balance governance of online content and behaviours, while upholding freedoms and ensuring transparency, accountability and compliance.

As part of our Global Reset programme, ODI helped shape the debate around the complex links between digital rights and human rights, particularly in regions where rising inequality, weak digital governance and low levels of trust in institutions have created ideal conditions for populism.

We put the positive role that digitalisation plays in young people’s peacebuilding firmly on the map with our event on digital youth peacebuilding: why it matters – highlighting the considerable problems human rights defenders face from online intimidation and developing suggestions for what can be done about it. Our roundtable on mis- and disinformation laid the groundwork for our well-received infographic on 10 things to know about misinformation and disinformation.

Building on ODI’s Global Reset Dialogue: Future Voices project, we launched a digital campaign to unearth young people’s views on the skills they need to access jobs and improve their businesses. This helped shape debates during the AU’s African Youth Month in November 2020.

Our global consultation on how youth are using digital technologies and our research on youth and tech highlighted the double disadvantage faced by young people: unequal or inadequate digital infrastructure, and the affordability of digital technologies. Our approach of supporting young people to engage with decision-makers has directly influenced discussions within national youth engagement groups in Ghana and Uganda.

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6 Reshape global leadership and inspire new coalitions

Recovery from the pandemic offers an opportunity to advance a long-overdue overhaul of global cooperation structures and ways of working. Instances of multilateral innovation have invariably emerged from systemic crises. Global cooperation needs reshaping from the ground up, bringing together new coalitions to bridge global and local, digital and analogue, state and non-state, and including activists and political actors. ODI focuses on rethinking multilateral mechanisms and linking local, national and global leadership in support of a fair and sustainable future for all.

Supporting a more locally led aid model

ODI’s Humanitarian Policy Group (HPG) has built up a wealth of evidence and understanding on promoting local humanitarian action and local leadership in humanitarian crises. This includes the report From the ground up and policy work on rethinking how humanitarian capacity is understood to support more complementarity between international and local actors.

Through this long-standing investment in research and strategic convening, and strong relationships with key donors and stakeholders, we have established ODI as a centre of knowledge and expertise on locally led aid models. This has enabled us to engage directly with influential bilateral donors and international NGOs, offer an honest assessment of progress and put forward recommendations for moving forward. Our experts are working on initiatives to encourage donors to work collectively on strategies to enable more local humanitarian action. This includes providing new incentives for international NGOs and UN agencies to reshape their partnerships and collaboration with local and national actors in humanitarian crises. This policy engagement is underpinned by research, including work with the Humanitarian Advisory Group, supported by the Dutch government.

During the Covid-19 pandemic, international travel and access restrictions led to expectations that the role of local humanitarian actors would advance significantly, including through greater funding. With support from the Global Futures Council on the New Agenda for Fragility and Resilience at the World Economic Forum, HPG set up an innovative online mapping tool to track the contributions of local actors during the pandemic and monitor movement towards a more local aid model. The study concluded that, while Covid-19 did not provide the required shock to shift practice in the humanitarian system, there is some evidence of incremental change on this longterm, political agenda.

Adaptive leadership

ODI’s work on adaptive management and Thinking and Working Politically has been instrumental in increasing interest in and support for Adaptive Leadership, particularly in the Covid-19 response, beyond the development policy and practice community. As part of this work we convened a high-level panel including WHO’s special envoy on Covid-19, attended by over 350 people from 35 countries. This was followed by a Harvard Business Review article setting out five principles to guide adaptive leadership.

ODI produced a paper analysing how the FCDO’s governance programme in Nigeria has pivoted to respond to the pandemic. Our work with CARE, KPSRL and Oxfam focused on the need to understand the governance dimensions of the Covid crisis and

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its impact on the quality of democracy and the underlying social contract. This highlighted important lessons to inform future governance programming, including avoiding linear assumptions about how change happens and the need to understand much more fully how power and political dynamics shape prospects for potential transformation.

We have also continued to encourage politically smart and adaptive ways of working within donor organisations. Through the LearnAdapt project, we have developed guidance for FCDO staff on how to design and manage adaptive programmes, alongside advisory work with the New Zealand Ministry of Foreign Affairs and IrishAid.

The Mayors Dialogue

Within a year of establishing The Mayors Dialogue on Growth and Solidarity: reimagining human mobility in Africa and Europe, ODI has brought together 20 cities and mayors in Africa and Europe, highlighted fresh perspectives and catalysed new partnerships on Africa–Europe relations. This includes developing innovative city-tocity partnerships in the fashion and textile sectors, infrastructure and transport and waste management.

ODI has used its expertise in strategic convening and policy influencing to support the Mayors and the objectives of the dialogue. We raised the Mayors’ public profiles in a World Economic Forum op-ed and a panel discussion co-hosted with LSE, covered by Rai News. With our support, Giuseppe Sala, the Mayor of Milan, and Freetown Mayor Yvonne Aki Sawyerr spoke at high-level events, including the Green Talks organised by the Portuguese Presidency of the EU and the European Investment Bank. We are particularly pleased to have used the dialogue to elevate the crucial role that cities play in a more equitable Africa–Europe partnership within global policy agendas ahead of the AU/EU summit next year.

Maintaining our external visibility

In ODI’s 60th anniversary year we set out to challenge decision-makers and thought leaders to reflect differently about global challenges. The Covid-19 pandemic has accelerated the need for systemic change and radical yet realistic measures to recalibrate social values and provide more sustainable and equitable pathways for the future.

Through our #GlobalReset dialogues we convened a series of virtual conversations to interrogate global challenges and chart the practical steps required to create more resilient, equal societies and reimagine a world beyond the pandemic. Highlights included interventions from leading voices, such as Melinda Gates, Malala Yousafzai, Kristalina Georgieva, Laurence Tubiana, Mary Robinson, Joseph Stiglitz, Shirin Ebadi and Muhammad Yunus, as well as young thought leaders and activists. The #Global Reset dialogues had nearly 100,000 visits over the year, with the long-form conclusions showcasing the most compelling debates using illustrations and multimedia. The social campaign in March attracted over 105,000 impressions and resulted in new followers and acquisitions for the website.

Our #GlobalReset dialogues showed that the challenges we aim to address will not be solved through a narrow focus on development and humanitarian action. So, in March

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2021, we refreshed our brand in line with our ambition to establish ODI as a global affairs think tank with a unique and international perspective.

As part of the rebrand, ODI chose to consciously move away from using its full name, to distance itself from its post-colonial origins and reflect its international presence and multidisciplinary approach. This will enable ODI to build on the robust reputation it has earned and adapt and respond to global challenges.

Along with the brand refresh, we also launched a new website, featuring a clean, minimalist design, enabling us to showcase our research and elevate our ideas. Centred around usability and engagement, the launch set the foundations for a more user-friendly and accessible experience.

Over the year we secured over 4,220 media hits, up 41% from the previous year. Coverage included commentary on the DFID-FCO merger, the humanitarian response to Covid, political developments in Afghanistan, China’s distant water fishing fleet and the G20’s progress in phasing out fossil fuels.

During the pandemic, ODI’s digital platforms were vital channels to engage audiences around the world, disseminating evidence and expert commentary in response to global events. We attracted over 1.3 million visitors to odi.org (up 13% from the previous year) and 190,000 views of ODI blogs published in 2020–2021, which featured 148 pieces of commentary from ODI experts and partners. Views of all blogs on the website increased by 68%.

Our top performing piece of commentary, Covid-19: we won’t get back to normal because normal was the problem, by Sara Pantuliano, garnered over 17,000 views (almost 10,000 more than the previous year’s most read commentary) and was widely quoted online and in the media.

Our social media channels attracted over 180,000 followers, with new strategies resulting in a growth in engagement. LinkedIn was our best performing channel, acquiring over 15,000 new followers on the previous year.

ODI continued to experiment with new digital formats. Our data visualisation illustrating the contribution to the Covid-19 response was shared widely and was recognised in an exhibition by the V&A exploring the power of design. The updated Principled Aid Index data visualisation and animation received over 11,000 visits and was widely covered in the media. The animation received nearly 1,400 views, an increase of 15%.

ODI’s convening shifted entirely online during the last year, a move which saw us attract larger, more global audiences than ever before. We hosted 98 events, attended by over 14,000 people from more than 100 different countries. Notable speakers included Anne-Marie Trevelyan, UK Minister of State for Business, Energy and Clean Growth; Carlos Lopes, African Union High Representative for Partnerships with Europe; David Nabarro, WHO Special Envoy on Coronavirus Response; Inger Andersen, Executive Director, United Nations Environment Programme; Razia Khan, Chief Economist Africa at Standard Chartered; Helen Clark, former Prime Minister of New Zealand and former UNDP Administrator; and Simon Coveney, Ireland’s Minister for Foreign Affairs and Trade.

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We produced almost 250 research publications sharing new evidence and ideas on a range of global issues. There were over 37,000 downloads of ODI publications, with research responding to the Covid-19 pandemic attracting the most readers.

Despite the challenges of the pandemic, ODI has engaged in a number of high-level events over the past year. Our Chief Executive represented ODI at the first online Davos conference in January, where she joined a televised panel on Resetting digital currencies and spoke at a session on Building inclusive, sustainable, and job-creating growth in Africa, with President Nana Addo Dankwa Akufo-Addo of Ghana. Sara also represented ODI at the World Humanitarian Forum on a panel on Redefining the humanitarian system and system change, and was asked to help launch the Freedom Fund report on modern slavery at a high-level roundtable.

ODI has continued to engage in discussions around the future of UK development and ‘Global Britain’. We brought together Commonwealth governments to share experiences following the creation of the Foreign, Commonwealth and Development Office. Experts also contributed to the debate in the UK parliament, media and civil society around the government’s decision to spend less than 0.7% of GNI on ODA.

ODI Fellowship Scheme

The ODI Fellowship Scheme gives postgraduate economists and statisticians the opportunity to work in national public sectors as civil servants. Due to the Covid-19 pandemic, only two new Fellows were posted this year (to Sudan), and many of the 2018–2020 and 2019–2021 cohorts had to be evacuated to their home countries for at least a few months. Fellows demonstrated remarkable resilience, navigating the year’s extraordinary challenges while continuing to support their host governments, including through remote working.

In August 2020, an independent external evaluation of the Fellowship Scheme, commissioned by the UK Foreign, Commonwealth and Development Office, highlighted evidence of Fellows achieving significant impacts – from reducing teacher strikes in Guinea-Bissau to helping to avoid over-investment in power generation in Rwanda – and clearly recommended continuation and further investment in the Scheme. The evaluation included detailed case studies of four countries: GuineaBissau, Myanmar, Nigeria and Rwanda, selected to cover the very different environments in which Fellows work, and presented findings from online interviews with all former Fellows and their supervisors going back to the 2013–2015 cohort. The report recognised that a key driver in strengthening capacity and implementation knowhow was the embedded nature of Fellows. A very distinguished former Finance Minister with extensive experience with ODI Fellows commented:

‘The beauty is that Fellows are embedded. It is not Technical Assistance (TA), bringing in external experts. ODI people are embedded in the system and help the system to develop from inside it. It is different from a classic TA approach.’

ODI’s presence in Europe

Following our commitment to expand our presence in Europe following Brexit, and with approval from ODI’s Board in 2020, in February 2021 we officially registered ODI Europe as an International Non Profit Association in Brussels. This marks the beginning of an extensive engagement in Europe and its neighbourhood, with a specific focus on Africa in the lead-up to the AU/EU Summit next year.

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ODI annual report 2020/2021

Our staff and values

ODI began its journey 60 years ago. The Cold War, decolonisation, the birth of development banks and agencies, the green revolution – all created an acute need for evidence and engagement about what was and wasn’t working in development. Throughout its growth and evolution, ODI has stood as a key partner to actors and institutions seeking progress and an end to poverty and conflict. To deliver on ODI’s ambitions, we will continue to evolve to ensure we are a valuable partner for the future. These changes, guided by the values embedded in our strategy, cover:

Our people are our greatest asset and our success is testament to their hard work, entrepreneurial spirit, skill and dedication. We aim to:

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ODI annual report 2020/2021

Financial and operational performance

Amid uncertainties related to Covid-19, and with a £436k investment gain, we achieved a modest unrestricted surplus of £63k (2020: £1,008k). Despite the challenging funding and operating environment in 2020, ODI secured income of £35.0 million, slightly down from £35.9m in 2019. Without a matching reduction in costs (see below), ODI’s surplus fell broadly in line with the fall in income. Management has responded by embarking on a programme of workstream optimisation and consolidation, as well as cost reduction measures; the impact of these measures will be seen in 2021 and later years.. Overall research income decreased by £789k, although we continue to see growth in activity in ODI’s trading subsidiary, ODI Sales, with more research awarded through tender and competition, and growth in our advisory services. ODI Sales is scheduled to gift aid £2.0m to ODI this year (2020: £1.4m). Due to travel restriction and other measures surrounding the pandemic, we also saw venue hire and event income decrease by £191k. The shortfall was offset by an investment gain of £436k.

On costs to deliver research projects, there was a significant reduction in travel costs due to Covid-19 travel restrictions. More work was delivered by subcontractors and research associates, and hence there was an increase in subcontracting costs. That said, overall programme operating expenditure decreased compared to last year. Overall support costs meanwhile increased significantly, from £5.8m to £7.6m, due to professional services staff increases, investments and one-off expenses. During the year, Public Affairs and Communications and Project Management hired additional staff resulting in a £400k increase in staff costs. We invested £167k in our new website, and spent £38k on journal subscriptions and management training. As we successfully renegotiated with the landlord to surrender part of our lease on our office premises, we incurred additional legal fees and recognised the full dilapidation of £310k. Considering the external funding environment, we also wrote off old outstanding debts and increased our bad debt provision of £256k.

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ODI annual report 2020/2021

We have seen a slight increase in the fund balance within restricted funds. This is partly due to the timing of our funders releasing funding, and partly due to programmes having not spent down accumulated restricted reserves to deliver projects, as a result of the disruption caused by the pandemic. As the future external funding environment remains more challenging, we are reviewing our income generation, including developing a commercial strategy, costs and cost recovery, and have started taking appropriate action to ensure our ongoing financial resilience.

Reserves policy

The Trustees have established a General Reserves Policy which aims to protect our work from risk of disruption, while ensuring that we are using our funds for strategic purposes in a timely manner. The Trustees regularly evaluate the level of reserves, using Charity Commission guidance. The Policy also provides parameters for future strategic plans and contributes towards decision-making. It determines an appropriate target level for general reserves, taking into account the following factors:

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ODI annual report 2020/2021

and

Based on these factors, our current target range for general reserves is £4.0m–£7m, representing 3–6 months of unrestricted expenditures. The basis of determining the target reserve level was reviewed by the Trustees’ Finance, Audit and Risk Committee in November 2020, and will be adjusted as perceptions of risk and other factors change.

Investment policy

ODI’s investments are managed by Veritas Investment Limited. The funds are held in a variety of market investments and are being managed in accordance with the risk, liquidity and ethical requirements of ODI. As at 31 March 2021 the investment portfolio was valued at £2.3m (2020: £1.8m). Investment performance is regularly reviewed by the Trustees against a benchmark of CPI +3%. Further details of the investments can be found in note 13 to the financial statements.

Approach to fundraising

The charity is aware of the Charities (Protection and Social Investment) Act 2016 and the Trustees support the aims of this legislation. The majority of the charity’s income comes from other charitable and statutory bodies. The charity undertakes very little direct fundraising activity involving individual donors. The charity considers the origin of unsolicited donations and legacies. The charity does not share with or purchase any donor data from third parties. In 2020/21 the charity did not engage with independent professional fundraisers and did not receive any complaints in relation to fundraising or raise any matter with regulators.

Principal risks and uncertainties

As the year 2019/20 ended, the pandemic had forced the closure of our office and staff had to work from home. There was also a risk to our delivery model of not being able to engage in international travel to support research and policy engagement activities. We mitigated the risk by shifting the delivery schedule and adopting different delivery mechanisms. The other major risk we encounter is UK aid budget cuts and potential bilateral aid budget reductions due to the contraction of high-income country economies. We mitigated UK aid budget cuts by reprogramming our deliveries and diversifying our funding streams, including through strategic partnerships.

The Trustees undertake a full risk assessment on an annual basis and monitor progress quarterly. This process is supported by the Finance, Audit and Risk Committee of the Board, which assesses risk in detail at its quarterly meetings. The aim is to identify the major risks to the charity and to ensure that measures are taken to mitigate the impact of these risks as far as is practical. Internal risk-management processes are integrated into the annual business planning and reporting cycle, which has enabled improved decision-making by the Board. The key risks identified by the Board during 2020/21 were:

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ODI annual report 2020/2021

difficult for ODI to deliver its mission as the international development sector comes under increasing pressure. We continue to mitigate this risk by seeking out new audiences and partnerships.

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ODI annual report 2020/2021

we have implemented tighter security measures, including multi-factor authentication for almost all staff. Cyber security development is reported to the Finance Audit and Risk Committee on a regular basis.

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ODI annual report 2020/2021

Future plans

ODI strategy 2021–2025

ODI launched its new strategy in March 2021. This was developed building on the strategy refresh undertaken the previous year, the changing context following the Covid-19 pandemic, as well as ODI’s Global Reset dialogue during 2020–2021. The new strategy is intended to guide ODI’s work for the next five years, subject to annual reviews.

Context

We are at a moment of deep socio-political uncertainty, marked by rapidly changing norms, technologies and power structures, affecting everything from consensus on the future of our planet to how people consume food, energy and information. Many of the challenges we face – climate change, violent extremism, polarisation, nationalism and populism, authoritarianism, financial instability, inequalities, pandemics, the future of work, a backlash against human rights, especially women’s rights, and racial injustice – affect both rich and poor countries alike, and the relationships between them. These challenges require creative and comprehensive approaches that acknowledge their deeply political nature, linked to vested interests resistant to change.

As a global organisation that seeks positive change in the world, ODI must understand, reflect on and respond to this new reality. Global challenges will not be addressed through a narrow focus on development and humanitarian action. The alignment of national interests, international diplomacy and development assistance is becoming increasingly explicit. Therefore, ODI needs to move beyond the current development aid paradigm. We need to build new partnerships, strengthen our inter-disciplinary capacity, embrace new disciplines and expand into new areas of research to achieve our objectives. And we need to utilise innovative and cutting-edge public affairs and communications to strengthen the influence and intellectual leadership we have built up over the past six decades.

The stage will have to be global even as ODI continues to engage deeply at the country and grassroots levels. But our footprint, staffing and areas of activity must truly reflect this global engagement. We cannot be confined to thinking about, and working in, poor countries from a metropolitan capital.

ODI’s guiding long-term direction is:

A dynamic, global think tank that inspires people to act on injustice and inequality through collaborative research and ideas that matter for people and the planet

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ODI annual report 2020/2021

A global, diverse organisation

Looking ahead, ODI will evolve to make the focus on equity, inclusive growth, social justice and sustainability even more central to what we do. To achieve this, we will need to become a truly global and diverse organisation, with presence and networks in Europe, the US and key emerging economies and markets. We will put greater emphasis on economic, foreign, security, social and other policies affecting marginalised and vulnerable populations.

The key elements of this strategy are:

Our long-term direction

ODI will lead new thinking and future agendas to deliver transformational change and bring back a global sense of resilient, just and equitable prosperity. We will focus on four overarching global challenges and priorities.

Shaping the future of global cooperation

The pandemic has put the crisis of multilateralism into stark relief. At the same time, it has shown that multilateralism is essential if we are to overcome systemic threats. Multilateral cooperation must be revitalised and reset with human rights and justice at the centre, paying as much attention to community-level organisations and locally

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elected leaders including mayors as to the large global bodies. There is an urgent need to advance long-overdue reform of global cooperation structures, to which ODI can contribute through its research, global networks and convening power.

Tackling the climate, environment and biodiversity crisis

We must stay within planetary boundaries to ensure prosperous, inclusive and resilient societies. More resource-efficient economic and human development will allow people to live healthier, more productive lives, while protecting the planet for generations to come. But the required transformation will be disruptive: some will lose in the short term, while environmental disasters continue to erode development gains. Widespread support for more climate-conscious and biodiversity-friendly development will only succeed if founded in a new social contract that is genuinely inclusive and empowering for all sections of society. ODI can engage in this arena by helping navigate competing visions of a green future to achieve equitable, risk-informed and environmentally sustainable development.

Fostering a more equitable and sustainable global economic order

The problem of equity amid unprecedented global prosperity has acquired an immediate urgency during the pandemic. There is renewed attention to tackling the structural determinants of inequality while harnessing the opportunities presented by the future of work, finance, fiscal and social policy (taxation and social protection) and trade reform. Ideas for a just globalisation must now be the centrepiece of inquiry. ODI can promote and facilitate interdisciplinary engagement and evidence-based debates to advance a broad consensus on what constitutes a more equitable economic system that works for people and the planet, while acknowledging that there can be no blueprint prescription for what this might look like across geographies.

Advancing human rights, addressing conflict and promoting peace

Human rights and a rules-based order are fundamental to building peaceful, just and inclusive societies. Human rights battles are first and foremost political, and understanding how rights are acquired and withheld is key to expanding their reach. ODI will bring political economy perspectives to aid understanding of conflict and fragility, propose policies and actions to advance human rights, social justice and peace, and support humanitarian action and political change, particularly in conflictaffected and violent settings.

Digitalisation cuts across these global challenges. The power to gather, process and disseminate information through digital technology and systems can be a huge force for good. But it can also be misused, and its benefits are neither automatic nor evenly spread. The poorest and most vulnerable are least likely to benefit from the digital transition, raising the risk that it simply deepens marginalisation and entrenches inequality. Digitalisation can also be misused, to misinform, to create conflict, to engage in acts of cyber attrition, to deny identities and to restrict privacy and liberty. We will explore how technology can be harnessed for the greater good, and identify ways to monitor and reduce its potential to damage the positive outcomes – justice, equality and inclusion – that we seek.

Our five-year objectives

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ODI annual report 2020/2021

If we are to fulfil the long-term direction set out above, we must aim to meet the following medium-term objectives by 2025:

  1. ODI delivers high-quality, internationally recognised research, informs policy design and convenes leadership across the five global challenges identified above. We will:

  2. b Ensure that all ODI programmes focus on building resilient, just and inclusive economies and societies. We will engage in policy debates, open new conversations and strengthen global networks and partnerships in these areas, making a powerful contribution to our longterm direction.

  3. c Organise our programmatic work, advisory services and convening capabilities to deliver on our global priorities, with digital transition as a cross-cutting theme.

  4. d Broaden our remit beyond development, and reflect this in our work programme, partnerships and alliances. We will convene and publish non-ODI voices from countries less represented on the global stage and cultivate a wider, more geographically diverse pool of partners and collaborators from a variety of disciplines and backgrounds. We will engage funders actively to explore different ways of working and develop new forms of partnership.

ODI is a global think tank with a global footprint. We will:

ODI is a financially sustainable and resilient organisation. We will:

ODI is a more effective, sustainable, diverse and inclusive organisation. We will:

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ODI annual report 2020/2021

Our priorities for FY 2021–2022

Considering the new strategy and its five-year action plan, as well as reviewing the current operating context, ODI senior management have identified the following priorities for the next year, which are organised under the four objectives of the strategy.

Objective 1: ODI delivers internationally recognised research, policy design and convening leadership across the five global challenges

Objective 2: ODI is a global think tank with a discernible global footprint

Objective 3: ODI is a financially sustainable and resilient organisation

Objective 4: ODI is a more effective, sustainable, diverse and inclusive organisation internally

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Structure, governance and management

Group constitution

ODI was founded in 1960 and is a charitable company limited by guarantee. The Charity has a wholly owned trading subsidiary, ODI Sales Limited, which provides an alternative corporate mechanism to further the charitable objectives of ODI. ODI Sales Limited has a Board of three Directors, who are also Trustees for the Charity. Both the Charity and the trading subsidiary have a Memorandum and Articles of Association as their governing documents.

The Board of Trustees

ODI is governed by a Board of up to 12 Trustees. The terms of reference for the Board are to maintain the values of the organisation and set the overall strategy and direction. The Board monitors the performance of the Institute and its management and appoints the Chief Executive. On 1 October 2020, there was a change of Board Chair from James Cameron to Sir Suma Chakrabarti.

Trustee recruitment and training

Trustees can serve for up to three terms of three years on the Board. ODI aims to maintain a balance among the Trustees to include research, academic, business and political expertise and knowledge, as well as diversity. Trustees are both Charity Trustees and Directors under company law. In order to maintain an effective Board with the appropriate skills and experience, the Trustees strengthened the approach to skills evaluation this year. During the year the Board appointed an independent Trustee to the ODI Sales Board and created two committees to review and support ODI’s capacity and capability in research and building human capital. At present the Board has 11 Trustees.

The Board has committed to compliance with the Charity Governance Code. Following a self-assessment in 2019 against the 7 principles of the code, the Board agreed a number of changes to its recruitment processes, and ways of working. The Board conducted a further self assessment of Board effectiveness in 2020

Organisational structure and reporting

The Board meets formally four times a year and is responsible for strategy, reviewing progress against business and strategic plans, financial results versus the budget, final income and expenditure for the year, new or amended policies, risk management and other applicable current projects. Its role is to direct and guide management. It also

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meets informally at least once each year to review strategic priorities and deepen the understanding of specific research and advisory projects.

The Board has the following sub-committees:

Management is responsible for the day-to-day running of ODI, the implementation of policy and ensuring that goals and objectives are attained. The Chief Executive is supported by a Senior Leadership Team (SLT). The role of SLT is to provide strategic leadership of the Institute. This involves:

During the year, ODI appointed an internal auditor to provide independent assurance that our risk management, governance and internal control processes are operating effectively. The internal auditor reports to FARC directly and attends FARC meetings.

The Directors of Programmes and Heads of Department are an important component of the organisation’s management framework. They are at the forefront of ODI’s mission and business and are responsible for much of the organisation’s direct fundraising, research and advisory support and line management of research staff.

Setting remuneration

Our staff drive ODI’s success. In order to ensure that ODI remains competitive within the marketplace we undertake regular benchmarking against comparable organisations. This exercise covers all staff, including executive remuneration, and is undertaken by the Hay group. The results of the benchmarking are analysed alongside our internal operational performance to understand the remuneration options available. These form the basis of recommendations that are discussed by SLT and the Board. Salaries for senior staff are then discussed at the Reward and Remuneration Committee. Full details of staff costs for the year are shown in note 9 to

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the financial statements. During the year, ODI did not give an organisation-wide pay increase.

Disabled employees

Full and fair consideration is given to the employment of people with disabilities, having regard to their aptitudes and abilities. Wherever possible continuing employment is provided for employees who become disabled, with appropriate arrangements for retraining where necessary. Disabled employees have representation on the staff Diversity Forum.

Employee involvement

ODI places significant emphasis on its employees’ involvement in the business at all levels. All employees are kept informed of issues affecting the Institute through formal and informal meetings. Regular staff meetings are held to discuss matters of current interest and concern with employees. The reform process launched last year, ODI Futures, was strongly centred on the engagement of staff and consultation with stakeholders in the process through small workstream teams, broader consultation through surveys, interviews and focus meetings, and regular progress discussions with staff. To improve inclusion and diversity a Diversity Forum has been established to develop, oversee and monitor the newly created Inclusion and Diversity action plan.

Public benefit

In setting objectives and planning ODI’s activities, the Trustees have given careful consideration to the Charity Commission’s general guidance on public benefit.

Members’ liability

The Members of the charitable company comprise the Trustees and in the event of the Charity being wound up, the current Trustees, and those who have left the Board in the previous year, are required to contribute an amount not exceeding £1.

Statement of Trustees’ responsibilities

The Trustees are responsible for preparing the Trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards. Company law requires the Trustees to prepare financial statements for each financial year that give a true and fair view of the affairs of the group; the incoming resources and their application, including the income and expenditure of the group. In preparing these financial statements, the Trustees have:

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The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity and the Group and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the Trustees confirms that: so far as they are aware, there is no relevant audit information of which the Charity’s auditor is unaware, and that they have taken all the steps that they ought to have taken as a Trustee in order to make themselves aware of any relevant audit information and to establish that the Charity’s auditor is aware of that information. This confirmation should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

The Trustees are also responsible for the maintenance and integrity of the Charity and financial information included on the ODI website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Trustees’ report has given a comprehensive account of how ODI used high quality applied research, practical policy advice and policy-focussed discussion and debate to promote poverty reduction, the alleviation of suffering and the achievement of sustainable livelihoods, in line with ODI’s 2018-21 strategy.

The Trustees’ Report was approved by the Trustees on 19 July 2021 and signed on their behalf by:

S. Chakrabarti

Sir Suma Chakrabarti, Chair

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Reference and administration details

ODI Charity Board of Sir Suma Chakrabarti - Chair (appointed Chair on 25 June
Trustees 2020)
James Cameron (resigned as Chair 7 December 2020)
Martin Tyler (retired 7 December 2020)
Elizabeth Ondaatje (retired 7 December 2020)
Yves Daccord
Dianna Melrose
Sam Sharpe
Fiona Thompson
Shantayanan Devarajan
Dominic McVey
Irene Khan
Hannah Meadley-Roberts (Appointed 5 October 2020)
Frannie Leautier (Appointed 7 December 2020)
ODI Sales Ltd (Trading Dominic McVey – Chair (appointed as Chair 7 December
Subsidiary) Board of 2020)
Directors Martin Tyler (retired 7 December 2020)
Sam Sharpe
Fiona Thompson
Marc Berryman – Independent Director (appointed 7
December 2020)
Chief Executive Sara Pantuliano
Senior Leadership Ashley Wang (Finance Director)
Team Christopher Williams (Director of Professional Services)
Jon Mitchell (Managing Director – Programmes &
Management)
Rathin Roy (Managing Director – Research & Policy,
appointed 1 September 2020)
Company Secretary Nengi Ofo (maternity cover appointed 12 March 2020 until
16 June 2020)
Teja Zbikowska (appointed 16 June 2020)
Register and principal 203 Blackfriars Road
office London
SE1 8NJ

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ODI annual report 2020/2021

Telephone 020 7922 0300
Facsimile 020 7922 0399
Website www.odi.org
Email odi@odi.org
Charityregistration 661818(England and Wales)
Charityregistration 228248
ODI Sales Ltd 7157505 (England and Wales)
Companyregistration
Haysmacintyre LLP
Auditor 10 Queen Street Place
London
EC4R 1AG
National Westminster Bank plc
Bankers Commercial Banking
3rdFloor
Cavell House
2a Charing Cross Road
London
WC2H 0NN
Veritas Investment Management LLP
Investment managers Riverside House
2a Southwark Bridge Road
London
SE1 9HA
Blake Lapthorn
Solicitors New Kings Court
Tollgate
Chandler’s Ford
Eastleigh
SO53 3LG

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ODI annual report 2020/2021

Independent auditors’ report to the members of Overseas Development Institute

Opinion

We have audited the financial statements of Overseas Development Institute for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, the Group and Charity Balance Sheets, the Consolidated Cash Flow Statements and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group 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.

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Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group'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.

Other information

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

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

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 group charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees (which incorporates the strategic report and the directors’ 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 for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on pages 33 and 34 , 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

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

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

Auditor’s responsibilities for the audit of the financial statements

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 is detailed below:

Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to charity and company law applicable in England and Wales, 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 preparation of the financial statements such as the Companies Act 2006 and the Charities Act 2011, and consider other factors such as payroll tax.

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 the improper recognition of revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at:

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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.

Steven Harper (Senior Statutory Auditor) 10 Queen Street Place For and on behalf of Haysmacintyre LLP, Statutory Auditor London EC4R 1AG

Date 30 July 2021

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ODI annual report 2020/2021

Consolidated Statement of Financial Activities (including income and expenditure account) – for year ended 31 March 2021

Unrestricted
Restricted
Total
funds
funds
2021
Notes
£'000
£'000
£'000
Income from
Charitable activities - Research and
Fellowship scheme
3
1,086
23,610
24,696
Investments
41
-
41
Other trading activities
4
10,197
-
10,197
Other income
24
-
24
Total income
11,348
23,610
34,958
diff N18 23,610 f N18 23,610
Expenditure on
Charitable activities - Research and
Fellowship scheme
5
3,394
22,706
26,100
Other trading activities
8
8,267
-
8,267
Total expenditure before pension
deficit revaluation
11,661
22,706
34,367
Movement in provisions
17
60
-
60
Total expenditure
11,721
22,706
34,427
~~diff N18 by 22,706 18 by 22,706~~
Net income before transfers and
investment gains / losses
(373)
904
531
Net realised and unrealised gains/(losses)
on revaluation and disposal of
investments
13
436
-
436
Net movement in funds
63
904
967
Total funds brought forward at 1 April
3,480
7,480
10,960
~~ok~~
Total funds carried forward at 31
March
3,543
8,384
11,927
~~okf~~f~~N18 8384~~
~~ok~~		 Unrestricted
Restricted
Total
funds
funds
2021
Notes
£'000
£'000
£'000
Income from
Charitable activities - Research and
Fellowship scheme
3
1,086
23,610
24,696
Investments
41
-
41
Other trading activities
4
10,197
-
10,197
Other income
24
-
24
Total income
11,348
23,610
34,958
diff N18 23,610 f N18 23,610
Expenditure on
Charitable activities - Research and
Fellowship scheme
5
3,394
22,706
26,100
Other trading activities
8
8,267
-
8,267
Total expenditure before pension
deficit revaluation
11,661
22,706
34,367
Movement in provisions
17
60
-
60
Total expenditure
11,721
22,706
34,427
~~diff N18 by 22,706 18 by 22,706~~
Net income before transfers and
investment gains / losses
(373)
904
531
Net realised and unrealised gains/(losses)
on revaluation and disposal of
investments
13
436
-
436
Net movement in funds
63
904
967
Total funds brought forward at 1 April
3,480
7,480
10,960
~~ok~~
Total funds carried forward at 31
March
3,543
8,384
11,927
~~okf~~f~~N18 8384~~
~~ok~~		 Restricted
funds
£'000
23,610
-
-
-		 Total
2021
£'000
24,696
41
10,197
24		 Unrestricted
funds
£'000
4,604
47
7,019
215		 Restricted
Total
funds
2020
£'000
£'000
24,059
28,663
-
47
-
7,019
-
215
11,348 23,610 34,958 11,885 24,059
35,944
5,395
5,585		 diff N18 -8,907
25,497
30,892
-
5,585
11,661
60		 22,706
-		 34,367
60		 10,980
(178)		 25,497
36,477
-
(178)
11,721
 22,706
 34,427
 10,802 25,497
36,299
~~diff N1~~
(373)
436		 ~~8 by 22,706 ~~
904
-		 ~~8 by 22,706~~
531
436		 1,083
(75)		 ~~diff N18 by -6,073~~
(1,438)
(355)
-
(75)
63
3,480		 904
7,480		 967
10,960
~~k~~		 1,008
2,472		 (1,438)
(430)
8,918
11,390
~~k~~
3,543
~~okf~~		 8,384
~~N18 8384~~		 ~~o~~
11,927
~~ok~~		 3,480 ~~o~~
7,480
10,960
~~ok~~

A separate statement of financial activities is not prepared by the Charity itself, following the exemption afforded by section 408 of the Companies Act 2006. In the year under review, the Charity made an unrestricted surplus of £63k (2019: £1,008k). All of the results in the consolidated statement of financial activities are derived from continuing activities. The Statement of Financial Activities includes all gains or losses recognised during the year. The notes on pages 44 to 68 form part of these financial statements.

41

ODI annual report 2020/2021

Balance Sheet – at 31 March 2021

Notes
Fixed assets
Tangible assets
12
Investments
13
Current assets
Debtors
14
Short-term deposits
Cash at bank and in hand
Creditors
amounts falling due within one year
15
Net current assets
Amounts falling due in more than one year
Pension liability
17
Total net assets
Diff
Represented by:
Unrestricted funds
Designated funds
18
General funds
Restricted funds
18
Diff		 Charity
2021
£'000
618
2,273
2,891
9,033
4,381
932
14,346
(3,764)
ok
10,582
(1,546)
ok
11,927
~~to BalSheet 1,930~~
618
2,925
3,543
8,384
11,927
t~~BlSht 1930~~		 Group
2021
£'000
618
ok
2,273
ok
2,891
7,453
-1
4,381
4,648
16,482
(5,900)
ok
10,582
(1,546)
11,927
618
o
2,925
o
3,543
o
d
8,384
o
11,927
~~Diff t BlSht 0~~		 Company number: 661818
Charity
Group
2020
2020
£'000
£'000
890
890
1,818
1,818
2,708
2,708
10,629
12,161
3,398
3,398
203
852
14,230
16,411
(4,491)
ok
(6,672)
9,739
9,739
(1,487)
ok
(1,487)
10,960
10,960
k
890
890
k
2,590
2,590
k
3,480
3,480
iff N18 by 8,384
k
7,480
7,480
10,960
10,960
~~k~~
~~k~~

The notes on pages 44 to 68 form part of these financial statements. Approved by the Board of Trustee on 19 July 2021 and signed on their behalf by:

S. Chakrabarti

Sir Suma Chakrabarti, Chair

42

ODI annual report 2020/2021

Consolidated cash flow statement – for year ended 31 March 2021

Notes
Cash flows from operating activities:
Net cash provided by / (used in) operating activities
A
Cash flows from investing activities:
Dividends and interest from investments
Purchase of property, plant and equipment
Proceeds from sale of investments
Purchase of investments
Net cash provided by / (used in) investing activities
Change in cash and cash equivalents in the reporting period
B
Notes to consolidated cash flow statement
A.
Net income / (expenditure) for the reporting period, adjusted for:
Depreciation
Dividends and Interest receivable
Investment management fees
Increase / (decrease) in debtors
Increase / (decrease) in creditors
Net cash provided by / (used in) operating activities
At
31 Mar
2021
B. Analysis of changes in cash and cash equivalents
£'000
Short-term deposits (less than three months)
4,381
Cash at bank and in hand
4,648
Total cash and cash equivalents
9,029
Reconciliation of net income / (expenditure) to net cash flow from
operating activities
Net cash provided by/(used in) operating activities		 2021
£'000
4,861
(42)
-
-
(40)
(82)
4,779
531
272
41
21
4,707
(711)
4,861
Changes
in Year
983
3,796
4,779		 2020
£'000
(1,681)
(46)
(176)
-
(36)
(258)
(1,939)
(355)
221
46
21
(3,661)
2,047
(1,681)
At
31 Mar
2020
£'000
3,398
852
4,250

43

ODI annual report 2020/2021

Notes to the financial statements – for year ended 31 March 2021

1. Principal accounting policies

44

ODI annual report 2020/2021

1. Principal accounting policies (continued)

Depreciation is provided using the straight-line method over the following estimated useful lives: 

  - Leasehold improvements – over the remaining life of the lease

  - `o` Furniture, fixtures and fittings – 5 years

  - Computer equipment – 3 years

  - Computer software – 3 years

45

ODI annual report 2020/2021

1. Principal accounting policies (continued)

2 Significant judgements and estimates

Preparation of the financial statements requires management to make significant judgements and estimates. Judgements and estimates have been made for the following items:

46

ODI annual report 2020/2021

2 Significant judgements and estimates (continued)

3. Income from research activities and the Fellowship scheme

Income for the year is broken down as follows:

Research grants & project finance
Fellowship scheme
Group research grants and project finance receivable
ODI Sales Limited research grants and project finance receivable (note 4)
Charity research grants and project finance receivable		 2021
2020
£'000
£'000
32,092
31,765
2,802
3,898
34,894
35,663
(10,197)
(7,000)
24,697
28,663

47

ODI annual report 2020/2021

3. Income from research activities and the Fellowship scheme (continued)

The following funders requested that their research grants be noted in the accounts. The amount may not be the same as recognised in the Statements of Financial Activities due to timing differences.

2021 2020
£ £
Abt Associates pvt Ltd Invest in Women: Peer Review - 1,464
Agence Francaise de Manage AlgOpeNSO - 258,746
Development (AFD)
Australian Department of Active Learning Network for 261,712 277,016
Foreign Affairs and Trade Accountability and Performance
(DFAT) (ALNAP)
Australian Department of Humanitarian Policy Group (HPG) 162,520 256,126
Foreign Affairs and Trade Integrated Programme
(DFAT)
Australian Department of L4P / Supporting Peace in Afghanistan / 527,775 450,000
Foreign Affairs and Trade Lessons for Peace: Afghanistan
(DFAT)
Australian Department of ODI support to GoV 2018 onwards 41,234 146,481
Foreign Affairs and Trade
(DFAT)
Australian Department of ReliefWatch: Prototyping alternative 350 16,456
Foreign Affairs and Trade approaches to accountability in aid
(DFAT)
British Red Cross Humanitarian Policy Group (HPG) 5,000 5,000
Integrated Programme
Canadian Department of Active Learning Network for 58,280 57,170
Foreign Affairs, Trade and
Accountability and Performance
Development (DFATD) (ALNAP)
Canadian Department of CIFSRF End Phase 2 - 288,928
Foreign Affairs, Trade and
Development (DFATD)
Canadian Department of GAC: ALIGN 90,692 116,561
Foreign Affairs, Trade and
Development (DFATD)
Canadian Department of GAC: Cuba Pathways to Gender - 23,312
Foreign Affairs, Trade and
Equality
Development (DFATD)
Canadian Department of Humanitarian Policy Group (HPG) 154,598 143,207
Foreign Affairs, Trade and
Integrated Programme
Development (DFATD)
Danish International Active Learning Network for 30,305 28,539
Development Agency Accountability and Performance
(DANIDA) (ALNAP)
Deutsche Gesellschaft für GIZ - Evaluation - 25,279
Internationale
Zusammenarbeit (GIZ)

48

ODI annual report 2020/2021

3. Income from research activities and the Fellowship scheme (continued)

2021 2020
£ £
Deutsche Gesellschaft für Literature review - the interplay between - 22,384
Internationale employment promotion and migration
Zusammenarbeit (GIZ)
Deutsche Gesellschaft für Sectoral Agricultural Policy and food - 33,733
Internationale security
Zusammenarbeit (GIZ)
European Bank for Fellowship Albania (II) 81,332 20,234
Reconstruction and
Development (EBRD)
UK Foreign, AG - Innovation and Adaptation 110,105 271,592
Commonwealth and
Development Office
(FCDO)
UK Foreign, Assessing and managing opportunities 174,812 -
Commonwealth and and risks from the Belt and Road
Development Office Initiative and China’s International
(FCDO) Economic Response to COVID-19
UK Foreign, Data Driven Response to the Covid-19, 158,783 -
Commonwealth and Climate Change and Food Security
Development Office Nexus
(FCDO)
UK Foreign, Fellowship Scheme 2015-2021 2,370,923 3,346,892
Commonwealth and
Development Office
(FCDO)
UK Foreign, Gender and Adolescence: Global 2,173,889 3,398,159
Commonwealth and Evidence
Development Office
(FCDO)
UK Foreign, Global Learning for Adaptive 302,426 602,013
Commonwealth and Management (GLAM)
Development Office
(FCDO)
UK Foreign, Learning Evidencing and Advocacy 1,940,632 1,128,107
Commonwealth and Programme (LEAP)
Development Office
(FCDO)
UK Foreign, Learning lessons from the International - 87,341
Commonwealth and Water Stewardship Programme (IWaSP)
Development Office
(FCDO)
UK Foreign, Migration for Development 51,339 48,867
Commonwealth and
Development Office
(FCDO)
UK Foreign, ODI/ATPC partnership 514,709 283,373
Commonwealth and
Development Office
(FCDO)

49

ODI annual report 2020/2021

3. Income from research activities and the Fellowship scheme (continued)

2021 2020
£ £
UK Foreign, ODI-DFID Economic Transformation 56,840 191,866
Commonwealth and
Development Office
(FCDO)
UK Foreign, PRINDEX - Securing Citizens' Property 113,435 777,091
Commonwealth and Rights around the World
Development Office
(FCDO)
UK Foreign, Quantifying Tenure Risk - The Business 78,241 39,657
Commonwealth and Case for Responsible Investment on
Development Office Tenure
(FCDO)
UK Foreign, REACT – UK-Russia Exchange on 145,589 -
Commonwealth and Climate Change Transition: Moscow,
Development Office Meshchera Lowlands
(FCDO)
UK Foreign, Research and Innovation and Hub on 4,178,163 1,348,891
Commonwealth and Technology for Education (EdTech)
Development Office
(FCDO)
FCDO Rwanda Poverty Dynamics in Rwanda - 224,823
FCDO Uganda Supporting Reforms to the Financing of 268,740 1,252,364
Local Service Delivery in Uganda
FCDO Zambia Poverty Dynamics in Zambia 252,994 168,663
FCDO Zimbabwe Poverty Dynamics in Zimbabwe 85,394 -
Federal Foreign office Active Learning Network for 255,654 155,247
Germany Accountability and Performance
(ALNAP)
Fiji Ministry of Industry, Support to MITT Fiji - 6,930
Trade and Tourism
Fijian Competition and FCCC - ODI Fellowship Scheme 275 6,930
Consumer Commission
Fondation Botnar Addressing the mental health needs of 174,755 -
adolescents in schools, in the community
and at institutional level in Tanzania and
Vietnam through the co-creation of
digital technologies
Humanity Inclusion Humanity Inclusion - 3,000
IKEA Foundation Enabling the CRRF implementation in - 329,974
Ethiopia, Kenya, Rwanda and Uganda
IKEA Foundation Humanitarian Policy Group (HPG) 221,239 327,812
Integrated Programme
IKEA Foundation Public Narratives Phase 2 14,850
International Fund for IFAD_Finance for rural development - 312,193
Agricultural Development
(IFAD)

50

ODI annual report 2020/2021

3. Income from research activities and the Fellowship scheme (continued)

2021 2020
£ £
IRC PAPAU NEW ODI Fellow to IRC - 7,300
GUINEA
Ireland Department of		 ODI Strategic Patrnership 153,440 -
Foreign Affairs
Ireland Department of GCRF South-South Migration, Inequality 60,000 60,000
Foreign Affairs and Trade and Development Hub
Ireland Department of Humanitarian Policy Group (HPG) 134,554 129,156
Foreign Affairs and Trade Integrated Programme
MacFadden and Active Learning Network for - 16,037
Associates Inc Accountability and Performance
(ALNAP)
Ministry of Education, Support to Ministry of Education TL 41,505 20,432
Youth and Sport Timor
Leste
Ministry of Finance, Timor ODI Fellow to MoF 2018-2020 87,512 176,248
Leste
Ministry of Finance, Timor ODI Fellows in Ministry of Finance TL 41,425 81,122
Leste
Namibia Nature NNF - ODI Fellowship Scheme 15,249 30,430
Foundation
New Zealand Aid Active Learning Network for - 2,640
Programme Accountability and Performance
(ALNAP)
Omidyar Network PRINDEX - Securing Citizens' Property - 773,048
Rights around the World
Open Society Institute OSF: Mayors Dialogue 128,792 39,805
Oxfam UK Humanitarian Policy Group (HPG) - 15,000
Integrated Programme
Particip GMBH Evaluation of Danish Funding for Climate 60,400 -
Change Mitigation in Developing
Countries
Peace Research Institute Aligning Migration Management and the 132,883 90,438
Oslo Migration-Development Nexus
(MIGNEX)
Secretary Of State For ODI Fleming Fund 238,761 100,000
Health & Social Care
SOS Sahel Humanitarian Policy Group (HPG) 3,000 -
Integrated Programme
Swedish International Active Learning Network for 215,091 213,971
Development Cooperation Accountability and Performance
Agency (Sida) (ALNAP)
Swedish International Budget Strengthening Initiative (BSI) 436,834 394,232
Development Cooperation Liberia
Agency (Sida)
Swedish International Humanitarian Policy Group (HPG) 172,073 171,177
Development Cooperation Integrated Programme
Agency (Sida)

51

ODI annual report 2020/2021

3. Income from research activities and the Fellowship scheme (continued)

2021 2020
£ £
Swedish International Inclusive, Sustainable Economic 437,660 -
Development Cooperation Transformation: Creating an ODI Nexus
Agency (Sida)
Swiss Agency for Active Learning Network for 20,000 25,000
Development and Accountability and Performance
Cooperation (SDC) (ALNAP)
Swiss Federal Department Humanitarian Policy Group (HPG) 266,000 266,000
of Foreign Affairs Integrated Programme
The Bill and Melinda Gates
Country finance: Enabling better learning		 993,457 -
Foundation across three public finance issues
The Bill and Melinda Gates
Delivering effective development against		 268,740 1,185,453
Foundation multidimensional poverty
The Bill and Melinda Gates
International finance: To provide thought		 835,301 -
Foundation leadership and evidence on international
development finance
The Bill and Melinda Gates
Research and Innovation and Hub on		 399,370 231,915
Foundation Technology for Education (EdTech)
The Ministry of Foreign Active Learning Network for 45,551 44,808
Affairs Belgium Accountability and Performance
(ALNAP)
The Ministry of Foreign Humanitarian Policy Group (HPG) 145,804 144,007
Affairs Denmark Integrated Programme
The Ministry of Foreign Active Learning Network for 50,000 50,000
Affairs Netherlands Accountability and Performance
(ALNAP)
The Ministry of Foreign Humanitarian Policy Group (HPG) 183,734 -
Affairs Norway Integrated Programme
Trade Mark East Africa TMEA-ODI research partnership for a 36,325 -
period of 2020-2023
UN Refugee Agency Active Learning Network for 11,244 11,244
(UNHCR) Accountability and Performance
(ALNAP)
UN Women Regional Platform on Gender and - 126,688
Prevention of Violent Extremism
United Nations Children’s Active Learning Network for 7,087 7,087
Fund (UNICEF) Accountability and Performance
(ALNAP)
United Nations Yemen Economic Tracking Initiative 34,753 -
Development Programme -
Yemen
United Nations Office for Agricultural Technology Disruptors in 17,229 60,988
Project Services East African Value Chains
United States Agency for Active Learning Network for 582,154 592,031
International Development Accountability and Performance
(ALNAP)

52

ODI annual report 2020/2021

3. Income from research activities and the Fellowship scheme (continued)

2021 2020
£ £
United States Agency for Case study of the Response to the 198,546 -
International Development Democratic Republic of Congo Ebola
Virus Disease Outbreak
United States Office of Humanitarian Policy Group (HPG) 313,807 429,102
Foreign Disaster Integrated Programme
Assistance
University of Manchester African Cities Research Commission 71,068 -
University of Manchester Covid-19 Social Science Research 13,865 -
Evidence Platform
Wellspring Philanthropic Humanitarian Policy Group (HPG) 154,441 162,633
Fund Integrated Programme
Wellspring Philanthropic PRINDEX - Securing Citizens' Property 92,766
Fund Rights around the World
World Food Programme Active Learning Network for 10,247 10,247
Accountability and Performance
(ALNAP)
World Vision International Humanitarian Policy Group (HPG) 8,113 8,215
Integrated Programme

4. Income from trading subsidiary

The Charity has a wholly owned subsidiary, ODI Sales Limited, which is incorporated in the UK. It engages in activity that furthers the mission and objects of the Charity. A summary of the full trading result of the company is shown in note 8 to the accounts but a breakdown of the research income of ODI Sales Limited is provided below:

Publications and other income
Total Income from Trading Subsidiary
Research grants and project finance		 2021
2020
£'000
£'000
10,194
7,000
3
19
10,197
7,019

53

ODI annual report 2020/2021

5. Expenditure

5. Expenditure
2021 2020
a) Research and dissemination £'000 £'000
Direct project costs
Staff costs (note 9) diff N9 by 0 8,699 8,556
Temporary staff 67 145
Research fees payable to consultants and related costs
 12,198 10,163
Knowledge exchange and dissemination 2,613 4,369
Travel 869 3,375
Other costs 83 390
24,529 26,998
Support costs allocation (note 7) 7,417 5,772
Group research and Fellowship costs 31,946 32,770
ODI Sales Limited research costs (8,260) (5,580)
Charity research and dissemination of information costs
 23,686 27,190
b) Fellowship activities and services
Supplementation award costs 1,620 2,711
Staff costs (note 9) 238 259
Support costs allocation (note 7) 145 118
Other costs 411 614
2,414 3,702
Total charitable expenditure 26,100
~~diff to SOFA 0~~		 30,892
~~ok~~
6. Governance costs
Auditors' remuneration 39 34
Legal fees 76 30
Other costs 2 5
117 69
7. Support costs
Staff costs (note 9) 3,553 2,847
Staff overheads 640 548
Premises 1,564 1,378
Depreciation diff FA note 12 0
 272 221
Governance (note 6) ok
 117 69
Other costs 1,416 827
7,562
~~ok~~		 5,890
~~ok~~
The above support costs are apportioned to charitable activities on the basis of the
number of staff members employed by each activity as follows:
Support costs allocation:
Research and dissemination of information 7,417
5,772
Fellowship activities and services 145
118
7,562
5,890
~~ok~~ ~~ok~~

The above support costs are apportioned to charitable activities on the basis of the number of staff members employed by each activity as follows:

54

ODI annual report 2020/2021

8. ODI Sales Limited

The Overseas Development Institute owns the entire called up share capital of ODI Sales Limited, a trading company registered in England and Wales, Company Registration Number 7157505, incorporated on 15 February 2010. A summary of the trading results of ODI Sales Limited for the year ended 31 March 2020 are given below. All taxable profits each year are distributed to the Charity.

9. Staff costs and Trustees’ remuneration
2021
2020
£'000
£'000
Income
10,197
7,019
Cost of sales
( 8,260)
( 5,580)
Gross profit
1,937
1,439
Administrative expenses
( 7)
( 5)
Operating profit
diff Sales 673
1,930
1,434
Gift Aid donation to parent undertaking
( 1,930)
( 1,434)
Surplus / Deficit for the financial year
ok
-
-
a) Staff costs during the year were as follows:
Wages and salaries
9,593
9,082
Redundancy and termination payments
8
120
Social security costs
1,071
1,027
Pension costs
1,818
1,433
12,490
11,662
Temporary and other staff costs
300
235
12,790
11,897
b) Staff costs by function (excluding temporary staff) was as follows:
£'000
£'000
Research and Fellowship scheme
8,937
8,815
Support
3,553
2,847
12,490
11,662
~~ok~~
~~ok~~
c)
2021
2020
£60,001 - £70,000
14
12
£70,001 - £80,000
12
13
£80,001 - £90,000
4
3
£90,001 - £100,000
4
3
£100,001 - £110,000
1
4
£110,001 - £120,000
1
-
£120,001 - £130,000
-
-
£130,001 - £140,000
-
-
The number of employees who earned £60,000 per annum or more (including taxable
benefits but excluding employer pension contributions) during the year was as follows:		 2021
£'000
10,197
( 8,260)
1,937
( 7)
1,930
( 1,930)
-
9,593
8
1,071
1,818		 2020
£'000
7,019
( 5,580)
1,439
( 5)
1,434
( 1,434)
-
9,082
120
1,027
1,433
11,662
235
11,897
£'000
8,815
2,847
12,490
300
12,790
£'000
8,937
3,553
12,490
 11,662

9. Staff costs and Trustees’ remuneration

Pension costs include an additional contribution in respect of the pension deficit of £59,741 (2020: £178,218 offset) as outlined in note 17. The total amount paid to pension providers was £1,295,592 (2020: £1,209,820).

Employee benefits to senior management personnel for the year (including payments to the pension schemes) totalled £756,123 (2020: £614,011).

55

ODI annual report 2020/2021

9. Staff costs and Trustees’ remuneration (continued)

Research and Fellowship scheme
Support		 2021
2020
£'000
£'000
190
204
69
65
259
269
e) The average number of employees during the year, analysed by function, was as follows: The average number of employees during the year, analysed by function, was as follows:
Research and Fellowship scheme 162 159
Support 57 49
219 208

During the year no expenses were reimbursed (2020: £626) for attending board and committee meetings.

No other payments were made to any Trustees in the year ended 31 March 2021.

The Trustees have taken out Trustee indemnity insurance to cover the liability of the Trustees which by virtue of any rule of law would otherwise attach to them in respect of any negligence, default, breach of trust or breach of duty of which they may be guilty in relation to ODI.

10. Net movement in funds

This is stated after charging:
Auditors' remuneration:
- Current year statutory audit services – ODI
- Current year statutory audit services – ODI Sales Limited
- Other audit and accounting services
Depreciation
Operating lease rentals:
- Premises
- Equipment		 2021
2020
£'000
£'000
32
29
7
5
36
22
75
56
1,005
960
8
8

11. Taxation

The charitable activities, as it falls within the various exemptions available to registered charities.

The subsidiary, ODI Sales Limited, distributes its taxable profits, if any, to ODI each year.

56

ODI annual report 2020/2021

12. Tangible fixed assets

12. Tangible fixed assets ets
13. Investments
Leasehold
Furniture
Group and Charity
Improvements
& Fittings
£'000
£'000
Cost
At 1 April 2020
1,216
637
Additions
-
-
Disposals
-
-
At 31 March 2021
1,216
637
Depreciation
At 1 April 2020
717
632
Charge for year
97
2
Disposals
-
-
At 31 March 2021
814
634
Net book values
At 31 March 2021
402
3
At 31 March 2020
499
5
Group and Charity
Listed investments:
Market value at the start of the year
Cost of new investments
Investment management fees paid from the portfolio
Unrealised gain on investments
Disposal in year
Market value at the end of the year
Historical cost of listed investments at 31 March		 Leasehold
Improvements
£'000
1,216
-
-		 Furniture
& Fittings
£'000
637
-
-		 Computer
Equipment
£'000
679
-
-		 Computer
Software
£'000
527
-
-		 Total
£'000
3,059
-
-
1,216 637 679 527 3,059
717
97
-		 632
2
-		 676
1
-		 144
172
-		 2,169
272
-
814 634 677 316 2,441
402 3 2 211 Diff to BS
618
499 5 3 383 890
2021
£'000
1,818
39
(21)
436
-		 2020
£'000
1,878
39
(24)
(75)
-
2,272 1,818
1,328 1,310

13. Investments

The listed investments are held with a fund manager, who has authority to buy and sell shares and bonds subject to the restrictions as noted in the organisation's investment policy. The market value of the portfolio held by the investment manager on behalf of the organisation was £2,272,532

At 31 March 2020 the Charity owned 10 £1 shares, being the entire called up share capital, of ODI Sales Limited, which is incorporated in the UK. As this is the total value of the Unlisted Investments, it does not affect the consolidated figures. ODI Sales engages in activity that furthers the mission and objects of the Charity. A summary of the financial results of the company is shown in note 8.

14. Debtors

14. Debtors
Grants receivable and accrued income
Other debtors
Prepayments
Amount due from subsidiary		 Charity
2021
£'000
4,309
7
389
4,328		 Group
2021
£'000
7,032
32
390
-		 Charity
Group
2020
2020
£'000
£'000
6,153
11,493
170
170
495
499
3,811
-
10,629
12,162
9,033 7,454

57

ODI annual report 2020/2021

15. Creditors

15. Creditors
Trade creditors
Social security and other taxes
Deferred income
Accruals and other creditors		 Charity
2021
£'000
2,074
288
-
1,402		 Group
2021
£'000
3,285
528
557
1,530		 Charity
2020
£'000
2,211
286
-
1,994		 Group
2020
£'000
3,571
703
265
2,133
3,764 5,900 4,491 6,672

16. Deferred income

Deferred income arises when the organisation receives funds which do not meet the conditions required for them to be recognised as income within the period. Where such funds are received they are recognised as cash with a corresponding liability within creditors. As the recognition criteria are met the funds are released to income.

Deferred income as at 1 April
Release during the year
Income deferred in the year
Deferred income as at 31 March		 -
-
-		 265
(1,224)
1,516		 -
-
-
-
-
265
-
265
- 557

17. Provisions and liabilities

As a result of adopting FRS 102, the organisation is required to recognise a liability relating to the deficits within the USS pension scheme of which it is a member. The value of the provision is calculated based upon the present value of the organisation's future contributions towards the deficit recovery plans: These contributions are set by the scheme administrators and are included within the annual contributions payable, as follows:

The deficit recovery plan, based on the latest actuarial valuation, is to run until 2031. Of the employer contribution of 21%, 2.1% goes towards reducing the deficit. The liability is calculated based on salary growth of 2% a year and a discount rate of 4%.

Opening pension provision at 1 April
Provision utilised during the year and unwinding of discount factor
Pension provision as at 31 March		 Charity
Charity
2021
2020
£'000
£'000
1,487
1,665
59
( 178)
1,546
1,487

18. Funds

Unrestricted funds
Designated
Tangible fixed assets fund
General
Income and expenditure account		 At 31 March
2020
Income
Expenditure
Unrealised
gains/(losses)
Transfers
At 31 March
2021
£'000
£'000
£'000
£'000
£'000
£'000
890
(272)
618
2,590
11,348
(11,721)
436
272
2,925
3,480
11,348
(11,721)
436
-
3,543

58

18 Funds (continued)

18 Funds (continued)
At 1 April At 31 March Unrealised At 31 March
Restricted funds 2019 Income Expenditure 2020 Income Expenditure gains/(losses) Transfers 2021
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Advancing Learning and Innovation on Gender Norms Project - (117) - 117 169 (91) - - 195
AFD-ODI partnership 2018-2020 (32) (16) - 48 - (48) - - -
AG - Innovation and Adaptation - (275) 272 3 111 (110) - - 4
Agricultural Policy Research in Africa (10) (14) 24 - 35 (35) - - -
Agricultural Technology Disruptors in East African Value Chains (57) (61) 107 11 17 (28) - - -
Aligning Migration Management and the Migration-Development Nexus (294) (90) 115 269 - (133) - - 136
Active Learning Network for Accountability and Performance (multi-
funder) (960) (1,367) 1,989 337 1,661 (1,487) - - 512
Asia-Pacific Workplan (1) (14) 1 14 (14) - - - -
Assessing the potential of civil organisations within regions acffect be
organised crime (12) (28) 40 - - - - - -
Beyond Neoliberalism (117) (71) 120 69 1 (36) - - 34
BMG Effective Financing (1,207) (471) 484 1,194 269 (1,463) - - -
BMG Leave No One Behind - (299) 299 - - - - - -
BMGF 3.0: Country finance - - - - 993 (104) - - 889
BMGF 3.0: International finance - - - - 835 (82) - - 754
Break Out States and Ladejinsky project (97) - 80 17 121 (29) - - 110
BSI Liberia (848) (394) 908 334 437 (615) - - 156
BSI Mali- Inception Phase (207) - 204 3 - (3) - - -
Cash - Preliminary Market Consultation (10) - 10 - - - - - -
CBi Flagship Product on Complex Emergencies and Manmade Disaste (7) - 7 - - - - - -
China's Secret Fishing Fleet (48) - 47 2 - (2) - - -
Corporate Water Stewardship (6) - 6 - - - - - -
Deepening Democracy Programme (2) (15) 17 - - - - - -
DEGRP Phase 2 (156) (398) 307 247 265 (406) - - 106
Disaster risk financing 0 (46) 46 - - - - - -
Education in Emergencies (14) (24) 37 - - - - - -
Eliminating fossil fuel subsidies (102) (151) 224 29 30 (59) - - -
EOY Learning Partnership (38) (2,043) 873 1,209 - (879) - - 329
Extremes and Disasters Programme (BRACED) (335) (2,587) 2,921 - - - - - -
EU Sudan - - - - 866 (62) - - 804
EU Uganda - - - - 727 (326) - - 401
FCDO: Migration for Development - (49) 18 31 22 (51) - - 2
Fellowship (Bill and Melinda Gates Foundation) (89) - 11 78 - (7) - - 72
Fellowship Scheme 2015-2021 (96) (3,941) 3,877 160 2,761 (2,702) - - 219
Fellowship - Timor Leste - (38) 38 - - - - - -

ODI annual report 2020/2021

18 Funds (continued)

18 Funds (continued)
At 1 April At 31 March Unrealised At 31 March
Restricted funds 2019 Income Expenditure 2020 Income Expenditure gains/(losses) Transfers 2021
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Fondation Botnar : Addressing the mental health needs of adolescents in - - - - 383 (175) - - 209
Ford Foundation: ALIGN microgrants funding - - - - 78 (32) - - 46
Future of Fragile States (2) - 2 - - - - - -
GCRF South-South Migration, Inequality and Development Hub (59) (160) 219 - 353 (353) - - -
Gender and Adolescence (GAGE) (805) (2,924) 3,368 361 2,041 (2,170) - - 232
Grand Bargain 2021 (Charity) - - - - 85 (42) - - 43
HelpAge (4) - 4 - - - - - -
HIV, SRH, child marriage mapping in Ethiopia (12) - 12 - - - - - -
HPG Integrated Programme (432) (571) - 1,003 1,925 (1,797) - - 1,131
IDRC- Shaping macro-economy - - - - 214 (106) - - 108
IFAD Finance for rural development - (312) 58 254 40 (294) - - -
IKEA: Public Narratives Phase 2 - - - - 148 (15) - - 133
IRIN - SIDA (12) - 12 - - - - - -
LBT Economic Empowerement in the Philippines (17) (77) 94 - - - - - -
Inclusive Financial Development and Growth - (5) 4 1 8 (8) - - 1
Initiative on public narratives on refugees and migrants (140) - 65 75 - (75) - - -
Irish Aid strategic partnership 2021 - - - - 314 (19) - - 295
Long-term responses to the Rohingya refugee crisis: Refugee rights,
voices, and the role of regional - (19) 9 10 (10) - - - -
Met Office Forecast-based Early Action - (119) 117 2 - (2) - - -
Managing ODA graduation (31) (102) 133 - - - - - -
NERC KE Fellowship - (70) 70 - 33 (33) - - -
ODI/ATPC partnership - (283) 276 7 515 (515) - - 7
ODI-DFAT Insititutional partnership (121) 13 - 108 - (32) - - 76
ODI-DFAT Diagnostic Tool (3) - 3 - - - - - -
Oil, gas and poverty roundtable (5) - 5 - - - - - -
Pathways to Gender Equality and Poverty Reduction for Women and
Girls (33) (23) 56 - - - - - -
Phasing out plastics production and use (132) - 106 26 - (26) - - -
Poverty Dynamics in Zambia - (169) 154 15 253 (181) - - 87
PRINDEX - Securing Citizens' Property Rights around the World (48) (1,643) 1,337 355 405 (364) - - 395
Prindex India - Integrating Land Governa - - - - 29 (1) - - 28
Provision of Professional Services for Leveraging Social Assistance
and Delivering Energy Access (14) (128) 142 - - - - - -

60

ODI annual report 2020/2021

18. Funds (continued)

Restricted funds
RBS: Supporting the Mayors Dialogue
Reducing Root Causes of Conflict
ReliefWatch
Research and assistance partnership
Research on Adolescent Girls in Refugee Settings
Research on the gender dynamics of trafficking in the Greater Mekong
Subregion
Senior-Level Course on Conflict and Humanitarian Response
Shock responsive social security cash
SIDA Nexus
Social norms and adolescent girls: evidence and tools platform
Star Ghana Programme
Strengthening the knowledge base - ECW
Supporting Reforms to the Financing of Local Service Delivery in
Uganda
Taliban policymaking
TaxDev II
Technical Assistance on Taxation and Tax Auditing in West Africa
Thanzi la Onse - WORK PACKAGE 2
The Global Compact on Refugees and Cox’s Bazar
University of California: Discover
UNOSSC_architechture of South-South Coop
UNWomen - Regional Platform on Gender
Urban Energy Transitions Research Programme
When disasters and conflict collide
Wilton Park - Transboundary Risk
Women in the Gig Economy
Women on the Bench: The Role of Female Judges in Fragile States
Women Win: Goal Programme Impact Study
Other research projects
Total restricted funds		 At 1 April
2019
Income
Expenditure
At 31 March
2020
Income
Expenditure
Unrealised
gains/(losses)
Transfers
At 31 March
2021
£'000
£'000
£'000
£'000
£'000
£'000
£'000
-
-
-
-
290
(165)
-
-
126
(9)
(36)
45
-
2
-
-
-
2
(125)
(16)
141
-
-
-
-
-
-
(10)
(52)
62
-
-
-
-
-
-
-
(57)
25
32
58
(26)
-
-
63
(64)
-
64
-
-
-
-
-
-
-
(37)
34
4
1
(4)
-
-
-
(4)
-
4
-
-
-
-
-
-
-
-
-
-
438
(71)
-
-
367
(666)
-
429
236
-
(236)
-
-
-
(5)
(53)
43
14
4
(18)
-
-
-
-
(170)
151
19
-
(19)
-
-
-
-
(1,262)
1,262
-
446
(446)
-
-
-
-
-
-
-
94
(17)
-
-
77
-
(507)
507
-
511
(511)
-
-
-
(537)
0
403
135
174
(308)
-
-
-
-
(23)
23
-
-
-
-
-
-
-
(49)
49
-
-
-
-
-
-
-
(3)
3
-
-
-
-
-
-
-
(18)
17
1
4
(5)
-
-
-
(27)
(63)
90
-
-
-
-
-
-
(85)
(76)
80
81
7
(87)
-
-
-
(216)
(150)
366
-
-
-
-
-
-
(13)
-
13
-
-
-
-
-
-
(28)
-
28
-
-
-
-
-
-
(5)
(31)
31
6
32
(38)
-
-
-
(8)
(44)
52
-
-
-
-
-
-
(503)
(2,308)
2,249
562
5,434
(5,761)
-
-
236
(8,918)
(24,059)
25,497
7,480
23,610
(22,706)
-
-
8,384
10,960
34,958
(34,427)
436
-
11,927

61

18 Funds (continued)

Analysis of net assets between funds at 31 March 2021
Tangible fixed assets
Fixed asset investments
Net current assets
Provisions
Total net assets
Analysis of net assets between funds at 31 March 2020
Tangible fixed assets
Fixed asset investments
Net current assets
Provisions
Total net assets		 Unrestricted Designated Restricted Total Funds
£'000
£'000
£'000
£'000
-
618
-
618
2,273
2,273
2,199
-
8,384
10,583
(1,547)
(1,547)
2,925
618
8,384
11,927
890
890
1,818
1,818
2,259
7,480
9,739
(1,487)
(1,487)
2,590
890
7,480
10,960

Unrestricted Funds

Designated fund

Designated funds represent monies that have been set aside by the Trustees for specific purposes.

Tangible fixed assets fund

The tangible fixed assets fund represents the net book value of the tangible fixed assets owned by the Charity. These assets are of fundamental importance to the Charity in carrying out its objectives. As such, a decision was made to separate this fund from general funds in order to demonstrate that the value does not comprise assets that can be realised with ease in order to meet ongoing expenditure.

Restricted Funds

Restricted funds are to be used for specified purposes laid down by the donor. Expenditure for those purposes is charged to the relevant fund.

Advancing Learning and Innovation on Gender Norms Project

The purpose of the Project is to support the ODI's Advancing Learning and Innovation on Gender Norms (ALIGN) online platform to curate, generate, and disseminate new research. resources, tools, and outreach activities related to harmful and discriminatory gender norms.

AG – Innovation and Adaptation

LearnAdapt is a collaboration between FCDO, ODI and Brink, to explore how to manage adaptive development programmes better.

Agricultural Technology Disruptors in East African Value Chains

Phase Two of a project to determine the implications for regional integration and inequality within the Enhanced Integrated Framework, the only multilateral partnership dedicated to assisting Least Developed Countries use trade as an engine for growth, sustainable development and poverty reduction.

Aligning Migration Management and the Migration-Development Nexus

Funded by the Peace Research Institute Oslo, to contribute to more effective and coherent migration management through evidence-based understanding of the linkages between development and migration.

Active Learning Network for Accountability and Performance (in Humanitarian Action) (multi-funders)

This fund represents restricted grants from a range of funders to support ODI's ALNAP Programme. Included within the balance carried forward are the payments which were made in advance for the 2021-22 financial year.

ODI annual report 2020/2021

18 Funds (continued)

Beyond Neoliberalism

A research project to bring developing country perspectives into the "beyond neoliberalism" debate.

BMG Effective Financing

This subcomponent of the larger Bill & Melinda Gates Foundation-funded project “Delivering Effective Development” examined development cooperation agencies and the delivery of effective financing, providing analysis and advice on how bilateral and multilateral donors and agencies can become better equipped to deal with new global challenges and the evolving development landscape.

BMGF Grant – Supporting public finance through better service delivery, digital & fiscal equity

This grant funds research and convening that aims to support public finance through better service delivery, digital & fiscal equity. The grant is divided into three bodies of work:

BMGF Grant – Financing an inclusive and sustainable global recovery

This grant funds research and convening on how to finance an inclusive and sustainable global recovery. The grant is divided into four bodies of work:

Break Out States and Ladejinsky project

Educational research on African economic growth in the context of land policy and agrarian investments, looking in particular at profiling and benchmarking break-out states in Africa. The project will also highlight the work of Wolf Ladijinsky, key architect of this model of economic development.

BSI Liberia

This fund represents contributions from a variety of donors towards ODI's Budget Strengthening Initiative Programme which is part of the Centre for Public Expenditure Programme.

BSI Mali – Inception Phase

Fund for an inception phase aimed at laying the groundwork of a longer-term Budget Strengthening Initiative in Mali, looking at budget transparency, public financial management and decentralisation, among other things.

DEGRP Phase 2

Second phase of the FCDO-ESRC Growth Research Programme (DEGRP) which funds research on inclusive economic growth in low-income countries.

63

ODI annual report 2020/2021

18 Funds (continued)

Eliminating fossil fuel subsidies

This fund represents a restricted grant from the KR Foundation in Denmark to support ODI's Climate and Energy Programme's work on the international campaign to eliminate subsidies to fossil fuel production.

EOY Learning Partnership

Economic Opportunities for Youth (EOY) aims to improve the capacity of young people to access and maximise the opportunities available to them.

EU Sudan

This grant supports ODI to provide technical advisory support to the Sudanese Ministry of Finance and Economic Planning. ODI support is focussed on MOFEP´s institutional capacity to undertake PFM reforms and coordinate aid delivery; creating a reform roadmap to improve capacities in public finance management; and stabilising the financial sector through asset reviews and a reform strategy. This project complements our work with the British Council in Sudan.

EU Uganda

This grant support ODI to provide technical advisory support to the Government of Uganda that aims to improve local investment and service delivery to citizens by: (i) restoring the adequacy and equity in the discretionary financing of Local Governments (LGs) for investment and service delivery; (ii) strengthening Ministry of Local Government and other Ministry, Department and Agency’s capacity to oversee and support LG investment management and service delivery; and (iii) improve LG management of investment and service delivery.

Fellowship Core Funding

This fund represents a restricted grant from DFID to fund ODI's Fellowship Programme.

Fellowship (Bill and Melinda Gates Foundation)

A restricted grant from the Bill and Melinda Gates Foundation to support ODI's Fellowship Programme.

NERC KE Fellowship

A restricted grant from the Natural Environment Research Council (NERC) Knowledge Exchange to enable the sharing and flow of knowledge and expertise between NERC funded researchers and their stakeholders, partners and user communities.

Foundation Botnar: Addressing the mental health needs of adolescents in schools, in the community and at institutional level in Tanzania and Vietnam through the cocreation of digital technologies

The project aims to identify drivers of mental health ill for adolescents in Tanzania and Vietnam and co-create, test and evaluate digital technology solutions to use in the classrooms, communities and local government to improve mental health of young people.

Ford Foundation: ALIGN microgrants funding

One year project building on the ALIGN programme of work around gender norms to fund the award of micro grants to local civil society organisations to support innovative research, convening and policy-oriented products in local context. The outputs are then disseminated globally via the ALIGN digital platform

GCRF South-South Migration, Inequality and Development Hub

This UKRI grant funds research into the relationships between migration and inequality in the context of the Global South.

64

ODI annual report 2020/2021

18 Funds (continued)

Gender and Adolescence (GAGE)

This fund represents a restricted grant from DFID to fund a multi year project to support ODI's Gender and Adolescence Global Evidence Research Programme.

Grand Bargain 2021

A restricted grant from The Ministry of Foreign Affairs Norway to support the fifth Annual Independent Review of the Grand Bargain.

HPG Integrated Programme

This fund represents restricted grants from a range of funders to support ODI's HPG Integrated Programme. Of the £266,000 recognised from the Swiss Federal Department of Foreign Affairs, only £236,000 was received in FY 20/21.

IDRC – Shaping macro-economy

Shaping the macro-economy in response to COVID-19: responsible economic stimuli.

IKEA: Public Narratives

This grant builds on initial funding from the Ikea Foundation for the development of a data visualization of migrant key workers contributions to the Covid-19 response and to conduct research to create profiles of country-level attitudes to migration. This grant will support further country-level research in Europe and Africa.

Irish Aid strategic partnership 2021

This project is a strategic partnership between ODI and Irish Aid focused on key emerging challenges and issues in development cooperation.

ODI/ATPC partnership

An accountable grant to support a research and assistance partnership between the African Trade Policy Centre (ATPC) of the United Nations Economic Commission for Africa (ECA) and ODI.

Poverty Dynamics in Zambia

Mixed methods research into poverty dynamics in the context of Covid-19 in Zimbabwe, focusing on vulnerability and resilience. Research products delivered by this project will contribute to evidence-based decision-making, and pro-poor programming and policy development.

PRINDEX – Securing Citizens' Property Rights around the World

The Global Property Rights Index is an initiative of ODI and Land Alliance supported by Omidyar Network, DFID and other donors. It aims to fill the gap in information about individual perception of tenure security by creating a baseline global dataset to support the achievement of secure property rights around the world.

RBS: Supporting the Mayors Dialogue

This is a multi-donor grant which funds the creation of a platform between African and European cities to address issues on migration and social issues in an urban context, specifically in the context of Africa-Europe relations.

Reducing Root Causes of Conflict

Reducing root causes of conflict, instability, and irregular migration.

Research on Adolescent Girls in Refugee Settings

Exploring the economic empowerment for refugee adolescents and youth in the MENA region. With the support of Global Affairs Canada, our research aims to fill gaps and contribute to efforts seeking to support refugee adolescents and youth realise their potential and become active agents of positive change and participate in the development of their communities and host countries.

65

ODI annual report 2020/2021

18 Funds (continued)

SIDA Nexus

Research & outreach work to explore the connections between (i) inclusion and poverty eradication, (ii) economic transformation and (iii) environmentally sustainable development, in the rapidly evolving context of the global pandemic Covid19.

Social norms and adolescent girls: evidence and tools platform

Multi-year funding provided by the Bill and Melinda Gates Foundation, exploring social norms and adolescent girls.

Supporting Reforms to the Financing of Local Service Delivery in Uganda Support received to support Inter-Governmental Fiscal Transfer Reforms in Uganda to strengthen budgetary decentralisation processes for improved service delivery.

Taliban policy-making

This project aims to improve understanding of Taliban policies on education. A grant from the Norwegian Ministry of Foreign Affairs to carry out research titled "Taliban Policymaking: Understanding the current processes and future challenges".

Technical Assistance on Taxation and Tax Auditing in West Africa

A project within the framework of the GIZ programme “Regional Resource Governance in West Africa” which seeks to strengthen the ability of GIZ’s partner countries Côte d’Ivoire, Guinea, Liberia, and Sierra Leone to better manage their natural resource sectors to the benefit of their populations.

19. Lease commitments

Group and charity
Land and buildings
Operating leases payments which are due:
- after 5 years
- between 2 and 5 years
- within 1 year
Equipment
Operating leases payments which are due:
- after 5 years
- between 2 and 5 years
- within 1 year		 2021
2020
£'000
£'000
150
270
1,905
4,326
1,040
1,082
-
-
1
9
8
8

At 31 March 2020 the Charity had total commitments under a non-cancellable operating leases set out below:

With regard to the lease for land and buildings, the actual payment by the Charity in the year to 31 March 2021 will differ from the charge to the statement of financial activities for the year shown above as a consequence of the lease containing a provision for an initial rent-free period.

20. Pensions

Retirement benefits for employees are provided by two independently administered schemes (SAUL and USS), which are funded by contributions from employers and employees. Contributions to the schemes are charged to the statement of financial activities so as to spread the cost of the pensions over the employees’ working lives.

66

ODI annual report 2020/2021

20. Pensions (continued)

Under the definitions set out in Financial Reporting Standard 102 Retirement Benefits, the Directors are satisfied that both schemes are classed as multiemployer pension schemes. Accordingly, we have taken advantage of the exemption in FRS 102 and have accounted for the contributions to the schemes as if they were defined contribution schemes. The latest information available for each scheme is set out below.

A multi-employer scheme is a scheme for entities not under common control and represents, typically, an industry-wide scheme such as that provided by both SAUL and USS. The accounting for a multi-employer scheme where the employer has entered into an agreement with the scheme that determines how the employer will fund a deficit results in the recognition of a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit), and the resulting expense is recognised in the statement of financial activities.

Because of the mutual nature of both schemes, the schemes' assets are not hypothecated to individual institutions and a scheme-wide contribution rate is set. ODI is therefore exposed to actuarial risks associated with other institutions’ employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis and therefore, as required by Section 28 of FRS 102 “Employee benefits”, accounts for the scheme as if it were a defined contribution scheme. As a result, the amount charged to the income and expenditure account represents the contributions payable to the schemes in respect of the accounting period.

The Universities Superannuation Scheme (USS)

ODI participates in the Universities Superannuation Scheme (the scheme). The scheme was a defined benefit only pension scheme until 31 March 2016 which was contracted out of the State Second Pension (S2P). The assets of the scheme are held in a separate trustee-administered fund.

The Directors are satisfied that the scheme provided by USS meets the definition of a multi-employer scheme and has therefore recognised the discounted fair value of the contractual contributions under the funding plan in existence at the date of approving the financial statements.

Since ODI has entered into an agreement (the Recovery Plan) that determines how each employer within the scheme will fund the overall deficit, ODI recognises a liability for the contributions payable that arise from the agreement to the extent that they relate to the deficit and the resulting expense in the income and expenditure account.

The latest available full actuarial valuation of the scheme was at 31 March 2017 (“the valuation date”), which was carried out using the projected unit method. Since ODI cannot identify its share of scheme assets and liabilities, the following disclosures reflect those relevant for the scheme as a whole.

The 2017 valuation was the fourth valuation for USS under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to adopt a statutory funding objective, which is to have sufficient and appropriate assets to cover their technical provisions. At the valuation date, the value of the assets of the scheme was £60.0 billion and the value of the scheme’s technical provisions was £67.5 billion, indicating a shortfall of £7.5 billion. The assets therefore were sufficient to cover 89% of the benefits which had accrued to members after allowing for expected future increases in earnings. Full details of the valuation are available on the USS website: https://www.uss.co.uk/how-ussis-run/running-uss/funding-uss/actuarial-valuation

2017
2016
Scheme assets £60.0bn
£49.8bn
Total scheme liabilities £67.5bn
£58.3bn
FRS 102 total scheme deficit £7.5bn
£8.5bn
FRS 102 Total funding level 89%
85%

67

ODI annual report 2020/2021

20. Pensions (continued)

Superannuation arrangements of the University of London (SAUL)

The Charity also participates in the Superannuation Arrangements of the University of London “(SAUL”), which is a centralised defined benefit scheme and is contracted-out of the Second State Pension (prior to April 2016). SAUL is an independently managed pension scheme for non-academic staff of over 50 colleges and institutions with links to higher education. Pension benefits for all active members are based on each member's Career Average Revalued Earnings (CARE).

The Charity is not expected to be liable to SAUL for any other current participating employer's obligations under the rules of SAUL, but in the event of an insolvency event of any participating employer within SAUL, an amount of any pension shortfall (which cannot otherwise be recovered) in respect of that employer, may be spread across the remaining participating employers and reflected in the next actuarial valuation.

SAUL's statutory funding objective is to have sufficient and appropriate assets to meet the costs incurred by the Trustee in paying SAUL's benefits as they fall due ("Technical Provisions"). The Trustee adopts the assumptions which, taken as a whole, are intended to be sufficiently prudent for pensions and benefits already in payment and continue to be paid and for commitments which arise from members’ accrued pension rights to be met.

The Technical Provisions assumptions include appropriate margins to allow for the possibility of events turning out worse than expected. However, the funding method and assumptions do not completely remove the risk that the Technical Provisions could be insufficient to provide benefits in future.

A formal actuarial valuation of SAUL is carried out every three years by a professionally qualified and independent actuary. The last actuarial valuation was carried out with an effective date of 31 March 2017. Informal reviews of SAUL's position, reflecting changing in the market conditions, cash flow information and new accrual of benefits are being carried out between formal valuations.

The funding principles were agreed in June 2018 and are due to be reviewed at SAUL's next formal valuation in 2020.

As at the last valuation SAUL was fully funded on its technical Provisions basis so no deficit contributions were required. The scheme Trustee and the Employers have agreed that the ongoing Employers' contributions will continue at a rate of 16% of CARE salaries.

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