DouJS4n En%lwe ID.. 35A61C8WFA44E82-8832.55BC9DADM7A Company Registrion Numb•r: 00883234 (England & Wales) Registered Charity Number in England & Wale$: 305992 D&AD (A Company Limited by Guarantee) REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2019 111 A9CDXF2J
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COMPANIES SE
Dowsign eThWope ID." 35A68C8WFA44E624832-wC9DA7A CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2019 Page Report of the Trustees Legal and Administrative InforMatn Structure. Govemance, Manaent Objectives and ACtive$ Achievements and P&fomiar*e Financial Review Plan for future peric Rewi of tho Indep8ndant AL110(S Conscdidaled Statement of Financi Activities 14 Balan¢9 Shg8ts- Group and Charrty 15 Consolated Cash Flow Statement 16 Notes to the Financial Statements 17
tlwjsign ID. 35A68C8WFAHE82-8832-558CgONDAA7A D&AD REPORT OF THE TRUSTEES The Trustees. wtho 8ffj also directtys of the tharity Iho purposes of the Companies Act 2006. present Iheif report wth Ihe finarla1 statements of tho charity for ihe year ended 31 August 2019. The Trtjstees have adopted the provisions ol the Statemenl of ReCommded pract applicable to charit5 prepanng their acCJntS in accordance wth the Financial Repth'ng Standard appluble in the UK and Republic of IreIar issued in July 2014 {The FRS102 chare5 SORPI. 1. Legal and Adthini$trattv¢ Intormation Twstee5. Membern and Directorn Ms Lucy-Anne Ronayne Ms Alexandra Taylor Mr Bruno Maag Mr Graham Shearsby Ms Katherine Tudbal Mr Steve Spence Ms Nicky Bu118rd Mr Paco Conde Resigned on 18th September 2019 Resigned on 18th Seplember 2019 Resigned on 181h Seplember 2019 Resigned on 18th Seplember 2019 Resigned on 18th Seplember 2019 Resigned on 18YI September 2019 Resignèd on 18th September 2019 Appointed on 18th September 2018 and resigned on 181h Seplember 2019 Apprw)tecl President on 18th Seplember 2019 Appointed on 18th September 2019 Appointed on 18th September 2019 Appointy on 181h September 2019 Appointed on 18th September 2019 Appointed on 18th September 2019 Appointed on 18* September 2019 Apptynled on 18th September 2019 Appointed on 18th September 2019 Appointed on 18th September 2019 Mrs Kate Stanner5 Mf Ben Terrett Mr Patrick Burgyone Mf Richard Brim Mr Nargsh Ram¢handani Mrs Fura Johannesdottir Mrs Rebecca Wright Mr Kai Hsuing Mrs Cheyne Rotsnson Mr Jack Renwi¢k Chief Executive Mr Timothy LiTrJ5ay Company Secfetary Dara Lynch Key Manag•m•nt P•rsonnel The sen¢or staff mnbe[S lo wth(¥n the day to day management of the Charity is ddegate¢l are listed balow Dara Lynch Amanda Moorby Dion Joy Paul Drake Donal Keenan Mike Mc Evoy Laura Kdly Chaifman Chief Opwating Olffcer Partnerstsps Team Dffedc "gital Direck FouThlalion Dir8Ct Awards Direct hnarKe Dtireck Markebng DrKlcr ck Pobve
Dor¥JSiw En%*knpe1Tr. 35A68CB>FFA44E82-8B32.558C9tMDM7A D&AD REPORT OF THE TRUSTEES Registered oifKe D&AD Ltd. 64 Cheshire Sl. London. E2 fjEH. Auditor Moore Kingsion Smith LLP. Chartered Accounlanls Devonshire House 60 Goswell Road London EC1M 7AD Solicitors Lewis Silkin 5 Chan¢ery Lane. Clifford's Inn. London. EC4A 1BL Mthael Simkins Lyntan House, 7- 12 Tawstcck Square. London. WC1H 9LT 8ankers The Royal Bank of SCO8nd pt¢ London Drummonds. 49 Charing Cross, Admiralty Arch, London, 5W1A 20X
DoSJn Envelope10'. 35A6BCB>FFA44E824832.&SBC?A D&AD REPORT OF THE TRusfEES 2. Structure. Governance arKI IlJafMgemeTht Background The charity was formed as a MpanY limiifjd by guarantee in 1962. The company r8gistratKyn number is )883234. Tho Charity Commission registration numbw is 305992. Objects The Charity's objects are specffi¢any restricted to the folloMing.' To advance the edub"oft of the MMunity by encouragirrfJ the undwstanding, applicatic and commissic of gocQ dèsign and advertising in communuticns media of all kinds by providing. presenting, organising and managing exhibitions, pUblicatiS. twrs of variws BrilLsh and 19n crties. dasses, lecturers, seminars, tutorials and other ethJCat1aI aclNilies. Appointm•nt of trustees Any person who is willing to a¢t as a TNsteo who is pemiitted by law to do so, and who is elKJible to become a Trustee in accordance with any ruth cff by-laws made in ac¢ordan¢è with the ArtleS of Assockgtion adopted by special resoluti in 2017, may be appointed to be a truee by a resdution of ihe Trustees. Powws The Boafd of Tfustees has overall responsibility flx the slr3teg* leadership. g0Vwnan and appropriate management contrd of D&AD. 11 has three primary lunetions.. To ensure the organisation stays f(Sed on its m4$% and strate9y. To make policy dec¢sKJns. To provide support and constwctive ¢haIlge to the management team. in partUlar the Chief Operating Officer and Chief Executive. Members of the Board of TrLtsle8s are also DirlorS of the charity for the purposes of company law. Each year vacancies lor new members of the Board of Tfustees arise as existing members reb're. These vacancies are available lo creabve practiiioners in adverbsing ¢ompanies, dewgn companie5, other creative companies, business, museums and galleries, and freelance respectively. The candtdates who stand for the Va¢8nl positsons wll reprèsent one of these industries. Successful candKJales who fill the vacancies for each Industry Sect are elected to sefve as trustees on the charily'5 8oar(J of %wih effect from the cnnclu5ion of the September meeting of the Truslees and hold office f(Y three years lor four years in the case of a Tw51ee who has held the position of Deputy Pregdenl in the third year of office). The ArtKles of Asso¢r4tion also provide that the trustees may apwnl a monb¢r, who has not been elecled in Ihe pre5cribe<l manner. to fill vacancy Ihat has arison on th8 Board ol Trustees. The cwlinualion of such an akwointment must be appfoved by the members at the September meth.ng of the Tnjstees. The chaiity's Pres¢dent and Deputy President are appointed from the seNice Truslees and take office for a pericrtj of one year from the conclusion of the September meeting of the Trusiees. The office of President artem8tes between the gx field5 of ¢xeativty describetl above and delwmined by the seThing Trustees. Truste• Inductlon and Training New Trustees undefgo an orientation session to bfief Ihem on decIS making prose$, the business plan and recent finanaal perfofmances of the charity. During the induclion session Ihey meel key employee5 and other Trustees. On-going training needs are identthed a5 appropriate and addressed through a variety of means. including 8oard paper5. lea¢J•Jship days aThJ seminars. R•mun¢ralion policy for K•y Manag•ffl•nt Personnel Tnjsteès and the senior managemenl teairi comprise Ihe key managem1 personnel of the Charity in charge of running and operating the (Kganisathin m a day-ttrday basis. Details of 811 TrLJs18e expen and latetl paty transacti($ are disclosed in note 17 and note 30 to the a(tounls.
Oowsign En10 ID.. 35A68C83-FFA44E824132-558C9DADAA7 D&AD REPORT OF THE TRUSTEES In order to Tecruil and relain the besl slaff to saleguard the services provided lo our b•n8ficiaries, the Trustee5 consider that it Is important lo offer a COMlts"¥e salary package, as benchmathed with similar zed charitable txganisall$. The salary and otlw rewards (annual leave and pension contribulionl of Chief Executive are ben¢hmarke¢J and approved by the Trustees on appAtment aN1 We reviewed annually by the Trustees in 8¢¢0rtJan¢e with the contract of eMployTht. l other staff roles, induding the senior management team. are evaluated against a number of criteria. including re5PM5itslitie5, skills expwli5e rwuired. These detemiine on wthich band each lies wilhin the pay scales. Normally, members of the Sen management team are recruited to their assigned Salary band. Occasionally, the Trustees wll detennine if the rate of pay needs lo be amer to tak• account of signifi¢ant exlefnal fa¢tors affe¢bry re¢rurtmenl to a spear role. Staff receive a fange of enhanced benefits e.g. &ck pay, matemitylpatemiiy pay as well as annual leave and pslon contributions. Organisation During the year the charity operntsd from its re¢enlly ¢on$tru¢ted offices knCat wihin Shor&Jitch. The Executive Commitiee develops all of the ¢harits objeth'ves. Stralegs to delNer the objectives are developed by the charitys Chief ExecutNe and Management Team. IMpmentation lies wrth the Team Directors and their colleagues.. Avrdrds, Education and ProfessKx)al Devek)pment, Partnerships and Members. Digital and 1nlormab.on Systems an¢J Finan¢e and Operab"rffis. A non•executNe Chairman also provides admce and assistan to both the Trustees and the ChatI5 Management. The Executive Committee meets up to eh1 bmes a year. Subsidiary Companies The chafity has two wholly owned subsidiaries". D&AD Trading Limitad, thè objeth.vtt of whreh are to administer the non-charitable activities of the gfOUP. Its profits are donated to the charity undu Gift Aid. The School of Communication Arts Limited. a domiant. Th-trading CnpanY. USA INC. a nthy formed Irading ccynpany. D&AD Hong Kong Ltd, a newfy formed trading ¢LNnpany. Risk managm•nt As part of its business FAanning and reviLW wocedures the trustees have implemented a ri8k m8nagemenl strategy, which comprises.. An annual review of Ihè major risks. their Irn. and the Iikelih¢X of OCCUTrenrE whth the charity may face,. and The establishment of the systems the charity uses to mth3at8 thè risks which have been idenlffied and lo minmnise the pthb.al impo¢t on the ¢hanty ShOd any of those risks materialise. Key risks identif*d indude". loss of key staff thrcyjgh resIgnatn. the charity lacks directKm. strategy and forward planning, Board of Trustees dominaled by one or two in¢Jividuals. Truslees are benefiting from charlty {e.g. remvneralionl. competilion. e¥t c8ncdlalb)n. budgelary control & finanaal planning. fraud and error and the loss of revenu8 due to Covid-19.
Doojsign Envelope ID.. 35A68CB>FFA44E824l32-55BC7A D&AD REPORT OF THE TRUSTEES Covid-19 As a result of the worf¢h"de Covid-19 and kxkd frlwn March 2020. events have been cancelled wlh resulting 105s of VenUe and Rlated direct costs. The Board have revised their plans for the rest of 2020 and 2021 and expect to run a glfiCanty reduced programme. Advantsge has been taken of the governmwtts job retwtion scheme bLrt at the same twne a restruLuring plan being implemented that will lead lo a reduction of headcnI. Revised fOr8Sts have been prep¥ed through lo 2021 that confirm that the actions taken together wth the reserves available will ensure that the Charity remains a going concem and wll COnte to be able to settle it5 debts as they tsll dw. The level 01 rtsk to the chavW$ In¢oming r¢s¢wrces The trustees recognise that the chanty's inGome sources a heavily dependent on funding from the creative industries, Ihe media 5eclors an¢J the business ccthmunity and that the levds of incA>me frcKn these sources are hi9hly.sens11iv8 lo global and natial economic and wlitical conditions. ConSeqn11y. th8 trusiees are of the opinion that reseThes shojld be generated to a suffici1 level to prote¢1 the charrty adverse economic CondnS and any consequential material de¢line in inctyne. Unrestricted funds are needed To provi¢Je fvnds to cover the costs of rts charitable activities To cover administrab"¢)n. fundraising and support Costs 1)j1 whth the charity could n¢X function To provide funds to cover the cost of its obligations to its mwnbers and supporters To cover the shortlall in the funding of educatbJnal projects othemse financed by 5ponscff5hip5 or donations To develop new actiwtses in accordance with the charits objeclive5 To provide funds for an adequate infraslructure to enable the charity to operate efflentlY R•swves policy The trustees have considered Ihe possible eff of adVerse.orKniC CWLditions on the activities of the charity and at this time are of the opinion that the charity should aim to accumulate unrestrKted reserves equal to a level of six months, wunning ¢osts lo ensure that the charity can continue to run effi¢ienUy in Ihe event of such ¢ondthons. Six m¢Mths running costs equate to approximaldy £1.0.0. Free unrestricted seThes tolol £2.163.845. {2018.. £1.451.318).
Oocu&'gn EnveloFe1Tr. 35A68C8>FFA44E82-8832-SSBCgDADM7A D&AD REPORT OF THE TRUSTEES 3. Obj•etivo. a¢tivili¢s and publi¢ b¢n•fft stal¢m•nt Summary of the objectives of the charity The main objective of thè charty is to advance the education of the communty by encouraging the understanding. apprecaation and Commiss of gc(J design and advwtising in communic31ions media of all kinds by providing, presentsng. uganising aTrJ managing exhIbrtns, pUblAllonS. tours of varicws British and foreign ¢ilies, classes. lect{Jr$, seminars, lulorials ano other educational activitEs. The charity's mission is.. To champion excellence in creativity by setting inthjslry stsndards. To educate and inspio the next 9&nerats"on, To prfynole the ¢ontnbulion of ¢reali¥rty. ideas and YTrn¢y¥abon to business SuSs. The charity's strategic aims a to.. Develop the Televance of the athib.es to rts benefi¢iaries. To conlinue lo raise the profile of the charity. To increase the number of parti¢ipanls and benefileS of the charity's aims and objective5, To develop new activitses in accordance Mth the chanty's objeth"ves, To create synif¢cant surpluses through commercial aclivilies in ordtr to fur#J tre D&AD Foundallon and advance the cause ol creative education. Obj•ctl¥•s for th• y•ar In 2018119 the charity's principal objectives for the year were.. To continue t(> build re5eFves lo levels detemiined by the charitYs ServeS policy. To develop a fully inlegraled brand communKatW5 and marketing strategy across programmes. To reposit)n the education model by creating the D&AD Foundation 10 5UPPOrt D&AD'5 mission to cekbrate. award arKI promote excelknce tn busine55 communicalvJn and dewgn. To conlinve to raise the charity's sxofile. To inve51 in the digilal strategy to deltver online conlenl to DaAD's stakeholders. To raise the appeal of taking up membership of the charity. strategies for achieving objectives and significart activities The charity encourages regional and lntematial part¢cipation its 8ctiv6ties by communicaticffj %wth the Creative community in those areas through 115 varKYJS programmes. exhibrti(s and pUblat$. The chafity searCheS, reviews and assesses its aCtivitS and ensures that it is developiTrJ and delivering relevant prcJrammes by way of its knuwledge managemeni System and vthing with its part1panIS and beneficiaries. Public Bon•f Stat•m•nl The ¢harily'$ benefrts are a$ in acrdanCe with ils aims.. The provisKJn of educat to that section of the public Ihal has an interest in wative excellence in desn, advert15ing and any other C(xnmunts"ons media. The promot11 of the apweciatson of that Thb"ve frdnce. Th* benefits are delivtved in the fOlknng ways.. A series of publ lectures IhrOughjt the yew h05teLI by senior armj infvential speakers in their particular subiecl. Courses available to the publi¢ that spe¢ialise in partt¢ular aspects of ueativity through the charity'$ Workout progTrmm$. Provision of educatKJnal relationships tmth top creatives for Ih)se in higher education through the University NefvKsrk progfamme. Running an awards scheme for undergraduates reading bJects asswaled with the chariiy's aims and objectives and whth attracts some 3,000 entries eath year. The entry fee is at a nominal msL
00Sign Erwelwe10." &SA6WFFA44E824832WBC90ADM7A D&AD REPORT OF THE TRUSTEES Membership of the charity is open to anyCe who is interested in its arms and obieclNe5. Lower fees are payable for student5 and peoFAe who have recently stsrted their creative ¢areer. PrOw$n of a free entry expowlion of grathJate creative work thal atlracls s(xne 7.1)00 visitors and students. Provision of free Intemet a¢¢ess to nnIng wryk fmm latest wofessional and slLKlent awards whh aChve$ sCe 4 millKsn ywS per annum. Prows¢on of an affofdabfe bwk that catalogues the wnning work on a completely rwlY written website which will eventualy cover all wryk wrbce the inception of the tharity over 50 year5 ago. During the year the charity conlinued the inrtiatives kun¢hed in 2011 aimed to benefrt grauate employrnent and involve the public in the creative pr0cV and the best in creative work: The Graduate Academy- this iniliative teaches graduates how to bring thwr education-based skill$ into thè vL)rk anvirment in they could contribute as a member of a team. During tha year Ihe charity cwb.nued Ihe inrtrative to involve and engage thg public in the creativg process and th¢ best in creative work. The Impact Project- this project focuse5 on creative tdeas that thange the wortd for the better, galvanising the crealive cornmunrty aroun¢J the glcijal is5ue5 that affect us all. Achievements made by the prcNision of the benefits: Development of best pfactice in the creative fiehj that wll have effect in Improv design and marketing in the buyness sÈctor and consequefttly improved suecess for commèree as a whole. Setting ideas and nChMarkS to deknp higher educatsonal leaching in the creative field thus giving graduates improved skills wth whth to enter the Irkf(L. Sb"mulation of the appreryal1l of excellence of creabvity in desi9n, adv8.n9 and communications by way of debate. free web acCS, exhibiticS events. The public benefit stalemenl has been prepared in accordan ith the Charity Commi8sNJn's guidelines. 4. Achievements and p•rfornianc• D&sprte an adverse e¢onomi¢ Climale, the charity strengthened rts financial surity and successfully delivered on its educational programmes wth increased interest and attendance at all its initsats'ves an events. Global awareness of the charity was increased and devdopment of the D&AD archive and t1igitsl content. which will be a major scrtjrce of mtive f¥ence. c¢rt#iued to evofve. The charity's perf0rnan against ils ot¥"ects"ves overthe pasl year is as folkm". Ob"ective in 201&19 To continue to buikl reserve5 to levels detemiined by the chanty's reserves polic To develop a fully integrated brand comrnunicalions and marketing strategy a¢ros$ programmes. Achi•vements Sn 201&19 The group rel1 reserves of £3.602.381 12018 £3.341,248} 01 vkni¢h ftse unrestricte(I reserves are £2,163.84512018 £1,451.318). This exceeds Ihe lar981 levd of £1.9m. Increas&J intematK>nal invc4vemenl wth the charity especially with inueased interest from Ihe Japanese market in the awards Scheme and from the Mithjle East in the professith)al development pro ramme. The focus of thg O&AD Foundation is to support creative education by astIng crnab.ves as they make the transth.on from education into 1P+k th•"r earfy careers. The funds raised for the Foundab"on 111 support D&AD's Education programme and third- party Educational programm8s. Launched D&AD Shift. To reposition ihe educath?n m¢)dd by crealing the D&4D FountJath)n to support D&AD'5 mission to celebrate, award aml promote excellence in tr¥Jsiness communi¢alion and des Contsnue to raise the charitys profile To invest in the th. Continued to achve ldwle verage and appointed international representatives in Japan. Australia. India and Brazil. The Next Difector & Next Phot rapher pro ecls. MOOC. collateral ilal strategy lo
D¢¢uSiun EnlOpe ID.. 35A6BC8>FFA44E82-8B32.55OC9tMDAA7A D&AD REpoKf OF THE TRUSTEES deliver online content to D8AD' stakehoklers To raise the appeal of takg up membership ol the charity cwjr Sponsors supwting CFE & New Bl¢yxl wnnws were prinupal addrtions lo online conlenl durTrn the ar. Increasing the appeal ol membership using Onli contenl such as 'inspired by new work, exdusNely for members and credrt arttde 'members since.. . visibly promoting mejnbers to our social media audiences. tnIent led newsletter5, and redesigning conversion pages on the website to S1KM¢ members only content. In addibon, steps have been tsken to ¢(SIStenI1Y restrici specific categories of content such as Pre&dents Lectures, Greativty Wtrks nd scxne features and Opinion from the CEO. Truslees and other 5. Financlal rnvi•w A standard Pfogram of inccqne generalKJn regjted in incoming sourceS being £799,954 abovè the previous t¥bdve-month period induding Professional Awards entrie5 irreaSe of £307.000, Professional Awards Festival ticket revenue increase of £176.000. Partnerships revenue increased by £253.000 and 8 t1ecrease in Foreign exchange gains serving to irnpact the overall increase in revenLte5."Siand8rd fowast activity resvf(ed in direct cost5 increasing by £269.000 from the same peric4J pr year. Diie¢l overhead costs increased by £349,000 on the prevKJUS t¥8 month5 to 315t August 2018. The effect of this was a group net funds inflo4W of £259.59)1£149.165 infknw the twelve months ended 31# Augusl 2018 PrSncipal funding sources Entry income fGY the professional awards s¢heme was up by £307,000 compared tr) the previous year, mainly as a result of an in¢reased numbw ol entries fr(xn the larger networks. SpOnSShip income was up by £253,000 across New Blood Awards, PTofessKJn81 AaS Festival and Shfft sponsorship. Funds Group ftjnds at 31 August 2019 amounted to £3.602.381 (2018.. £3.341.2481 of whth £495,822 was restricted {2018.' £561,277). There was a surplus of unrèstrictèd lunds of £3,106.559 12018.. £2.781.5561. The charity 11 continue its PToJramme of cosl Contr and income enhancement in order lo incTe85e the unreslricle11 lun¢J balance. It is anlicipaled Ihat this programme wll deliver material surpluses in futur& yeafs due to investment in streamlined systems and autonomy.
Otsw&9Tr Env4ope ID". 35A68CBWFA4-4EO2a325P9DM?A D&AD REPORT OF ThE TRUSTEES Future plans and subsequent events The charity's key strategic policies as sLited in these 5talements remain a5 relevant for 2018119. In addition, the maintenance of unrestricted funds to a levd Cstent %ith the chartl5 reserve policy w411 continue as a major obie¢lNe. D&AD is exploring Op)rtUnieS lo transfomi the buyness by Ung digital le¢hndogies that add vèkja lo Trts existing ¢ustomer base and create ne4¥ markets to explcfe. A 4-year prcoram of rterative transformatIn has been agreed upon lo launch ft1 inrtovat and redevelop e$ting le¢hndogy and funcbonalty lo transfonn the business going forward. e¢tfve for 2019r20 and be ond" . -" . . To maintain reseryes at elS continuan of thè financkal review and identrfication of costs determined by the charity's sawngs and nv•4 income streams enhanced by more effective reserves olic mana enl of exislin rammes. To cc¢tinue to develcy a fully Development of a dear and coherenl voice across all integrate(1 bran¢J communrAlion5 communication plaffoms and ¢onlinuing to ra15e the company and mart(ètin9 strategy across proAe. UK and Intemalna1Iy. rammes. To continue lo invest in the dNJital slratsgy lo deliver an onk.ne offer lo D&AD stakeholders, thereby buildin D&AD'$ ¢ommuni To review and extend markets and audience beyond UK and Europe post Brexit. To continue lo build D&AD archive. ¢y)ntent management sy5tem$ and suppo"ng IT infrastrLthre. To continue to reach divefse audiences who represent Ihe breadth of commercial creative community. Fu5 on segments which we can penttratÈ effecbvdy.. likdy to bÈ design & producton agencies. in-house ¢reatNe & design teams and consultsncies. To continue to reach larger audiences out&de London and the UK. Focus on rowth cities which can nelrale most effectiv To conb"nually feview str3te9y to ensure it is relevant to the needs ol the present and future by developing ihe model into a comprehensive, lechnrally flavoured senes of training mJUleS targeting both the creatNg and cliwt ¢ommunib"es th tho ullimate obJectNe ol the ¢wtion of an E-Leaming $8rioS to scale the enterwse and enhance the development of careers in creative fdds thrryjgh Continuous Professional Developmènt (CPDI scheme. Senior managernent of the charity has and will continue to visit appropriate I("0n$ and meet wlh key conts¢ls lo develop this objective. Apwintrnenls of inlemational rep5 a in tyace across ke Ictations in India. Australia, Brazil. USA, China & Ja anin2019 To utili5e Ihe space to enhance and build relations wlhin the widef community and seThe the creab.ve communty. Evenis are now happening more regulady saving on extemal coslsthire and eneratin small revenue stream. To continually devek)p the fedefined profes&onal deveioFhment strategy_ To ¢tInUe lo build intemalional awareness in key ckn'es. To fully utili5e D&AD head office in ShedItCh.
DotyJ5ign EnYdope10. 35A68CB>FFA44E82-8832-558CgDADM7A D&AD REPORT OF THE TRUSTEES Statement of Tw$teeJ' Responslbllities The truslees {who are the directors of the charity for the purp$ of c(Ynpany lawl. are responsible for preparing the Report of the Trustees and the ffinancial statements in accordance with applicable law and United Kingdom Accounting Standards (United KiThJdom Genwally Accepted A¢cwnting Praclicel including FRS102 "Th8 Financial Reportyng Standard applicable in the UK and Republic of IreLand.' Company law requires Ihe trustees to prepare finarrial stslement5 for eath finan¢ial year. Under company law the Iruslees musl not approve the financial stalemen15 unless they are sab"sfied that they give a true and fair view of the slate ol affairs of the charitsble ¢wpany and the group. and of the incomiThJ resoLJr¢es and appltion of resour¢es, including the incomè and expenditure, of the charitable group for th8t pén"CN4. In Pfeparing those financial stsements. the tmstees are required to: Select suilabk accounting pdi¢ie5 and then appty thÈm consislentty.. Slate ether applicab a¢¢ounts"ng StandaS. including FRS 102. have been followety subject lo any material departures disclos8d and explained in the financral statemeni$- Observe the methods and principles in StateMt of Recommended Plac• chankn.es ISORPI. Make judgements and ests'mates thal are reasonable and prudent: Prepare the financial slalements on a gryng corK¢m basis unl8ss it is inappropriate to presume that the charitable company will Gonlinue in bus"ness. The trustees are respSIble lor keeping proper aCting records that discknse with reasonable accuracy at any lime the financial [S)n of the ¢harilable company and to enable them to ensure Ihat Ihe financial statèmènts compty vnth the CoMpanS 2006. They are also responsible I( safeguardng the assets of the Charitab company and hence for tsking rea5able steps the pwenb'on and detectK)n ol fraud •MI other irregularities. In so far as the trusteos are avmre.. There is no relevant audit infomalK)n of the ¢hariiabk CoMpanS auditor 15 unaware", and The trustees have taken all the steps that they ought to have taken to make Ihern58lve$ aware of any relevant audil information and lo establish that the audrtry is aware of thal infomation. Small C¢)mpani¢s Ex4mption This report has been prepare(1 in aCc0ftlar wilh the special prlIS1OnS rdating lo small ¢ompaniès 7Mthin part 15 01 the Companies Act 2(XJ6. The ITUStees of the Charity approve the Trustees. *MnL1 RepLVt. Auditors Moore TrQngslon Smith LLP has dted their v4ilingnes5 to continue In office for ihe ensuing year. 812512020 Signed on behaw of the Trustees on ........................ Docusiqned by.. Oo-, I 399EG Dara Lynch Secretary 10
DocuS9n En¥¢pe ID". 35A68CBWFA44E824832.55BCgOAt)A47A IMOEPE14DENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF D&AD LIMITED Opinion We have audited the financial Statements of D&AD Limrted for the Jear ended 31 August 2019 which comprise the Group Statement of Financial kt4vities. the Group and Parent Charitable Company Balance Sheets. the Group Cash Flow Statement and notes to the finardI statements. induding a summary of significant accounting policies. The finanoal reporting framework that has been applied in IheiT preparation i8 applicable law and United Kingdom Accounts"ng Standards. induding FRS 102 'The Financsal Reporting Standard Applicable in the UK and Ireland. (United Kngdom Generally Accepted Aecounling Practice). In our cfrfnion the finanrAal stalements: give a true and fair Mew of the stale of the group's and the parent chafitabk companys affairs as at 31 August 2019 and of the group's incoming resources arKJ aFfJI1b.¢?n of resources. including its irome and expenditure. for Ihe year then tnded", have bew property prepared in accordance with Unit&J Kingdcth Genwdly Accepled Aunt¥ Pract.. and have been ppare(l in aCwda1e with the requinnen15 of the Companies Acl 2006 and the Charities Act 2011. Bas1$ for oplnk•n We ¢ondu¢ted 1r audit in a¢cordance th Inlemational Starards on Audiling IUKI IISA4UK)l and applicable law. Cr responsibilities under those standards ao fvrthor described in the Auditorfs Responbih'tTeS for the audii of finarla1 5talements seclK)n of cwr fewt. We are independent of the charrtable company in accoft1ance wth the ethical requirernenls that a olevanl lo our audrt of the financial statements inithe UK. including the FRC'S Elhical Standard. and have fulfilled our other ethical spcffjsibilities in a¢¢ordan¢e with these requements. We believe that the aLKlit evidence we have oblained is sufficaent and appropriate to prowde a bas.s for cwr ow"nion. Coficlu$ions r•lating to going eoncorn We have nothing to report in res of the fdlowing matt•Js in rel8tYJn to Ihe ISAS (UK) require us to report to you where= the trustees. use of the gc¥ng concern basi$ of a¢counb"ng li the prepar*ion of the financkql statements is not appropriate", tha trustees have not disclosed in the finanri81 ststements any K1entified material uncertainties that may cast significant doubt al>out the grvup'5 and parent charitatle company's ability lo continue lo adopt the going concem basis of accounting for a Feftoj of at least twelve months fr¢ Ihe dale when the financial slalemenls a aUlhiS& for issue. Othw infomiation The other infomiation comwses the infcffmatw Iud Ai the annual report. other than thè financial statements and our auditorfs report thereon. The twstees are responsible for the other infomiabon. Our opinion on the financral statements dces not cover the other infomiation and. except to the exient otherwise expliciuy stated in our report, W do not express any fom of asgjrance condusicffl Ihereon. In Connecti our audit of the financaal statements. (r re5KK)nsibilily is to fead the other information and, in doing so. consmdei vthether the other infomatrrt) is materially Inc¢SIStent with the financial statements or our kn¢edge obtained in the aLtdrt or t)therwise appears to be materially misstated. If we idÈnkn"fy such material inconsistencies or appanI material misstatements. we a required to determine whether there is a material misstatement in Ihe financial slalemerts or a material misstal8menl of the other informairon. If, based on the %rk we have performed, V•P conclude Ihal there a malerial misstatement of thi5 other infOatiC, W are required to that fad. We have nolhry to report in this ragard.
DO$19n en¥dope ID.. j5C8>FFA4E8248Y2.s58¢soADAA7A INDEPENOENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF D&AD LIMITED Opinion$ on oth•r matt•rs prescribed by the CompaniM Act 2006 In our opinion, based on the work undertaken in the course of Ihe audit.. the infoimab.on given in the tnjstees, annual report for the fmancial year for whith the financial statements are prepared is consistent wth the financial siatements" and the trustees. annual rep(xl have been prepared in Vthtth apF4icable legal requirements. Matters on which we ar• requir to r•port by •xc•ption In the light of the knledge and understsrKling of the group and parent charitable company arKI ils environment obtsined in the owrse of the audit. we have not idenb"W matsn.al misstatements in the trustees, annual report. We have nothing to raport in respect of the matters vthere the Companies Act 2006 and the Charities Act 2011 require us to report to you il. in our cqjinion.. Ihe parent tharitsble coMY has not kept adequate and suff"enl accounting records. or returns adequate for our audit have not been re¥ed from brwches not Vi5tted by us: or the parent chantsble company's financial ststements are not in agreement wilh the aOUnting records and returns,. or Certain di5c105ures of trustees, remunerab.oft specfftd bif law a nol made.. or we have not received all the infonnan and explanations we require foy our audit,. or Ihe trustees not ¢nliUed to.prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exempts.on in preparing the Tfustees, Annual Report aThJ from preparing a strategic rewt. R¢spon$ibilili¢s of ¢N$teos As explained more fully in the trustees. responsibilibes statement set out on page 11. the trustees I0 a 81s0 the diwlors of the charitatrje company fly the purpos8s of clpanY lawl are responsible for the preparation of the financial statements and for being satisfied that they gtve a true and fair view. and for such intern81 Control as the trustees delemiine 15 necessary to enable Ihe preparat of fwian¢r41 statements that are free from material missiatement. Y*thether due to fraud or error. In preparing the finan¢01 ststemenls. the trustees are reSp$bre for assessing the group and parent charitable company's abilty to continue as a going concem. disdosng, as applicable. matters related to gving concem and using Ihe gn9 CrM ba515 Qf acwunts.ng unless the tfusteos either inlend lo liquidate the group or parent charitatAe crynpany or to cease operations. (Y have no realistic alternati¥e bul to do so. Auditorfs responsibilities for the audit of th• financial slat•m•nts We have been appointed as auditor under the Companie5 Act 2006 and section 151 of the Charities Act 2011 and report in a¢¢ordan¢e wrth those Acts. Our obje¢lives are to obtain rea$able assurance ab¢MJt whether the finanoal stslements as a Who are free from material mi$$tstement. vthether due lo fraud or error. and to issue an auditorfs report that includes Jr opinion. Reasonable assurance is a high levd of assurance, but is not a guarantee that an audit OrUcted in accordance wth ISA5 IUKI wll a>% detect a material misstat8menl when it exists. Misstatements can arise from fraud or error and a consmlered material if. indrvidually or in aggregate. they could reasonably be expected lo inlluence the econ¢)mi¢ deus1$ of users takén on the basis of these financial statements. As part of an audtt in a¢¢ordance wth ISA5 (UK) we exerose professK)nal judgent and maintain professicmal scepticism throughout the audit. We also: 12
DocuSvJn En%loFe10.' 35A68CB>FFA44E82•83Z-558CWDAA7 INDEPENDENT AUDITOR'S REPORT TO THE MEPA8ERS AND TRUSTEES OF D&AD LIMITED Identify and asse5S the risks of material misstatement of Ihe finarKtal statements. whether due to fraud or efrGY. design and perfom) a111 wOcedUS responsive to those risks. and obtain audil evidence that is suffioent and appropriate to provide a bass for our opini. The risk of not detecting material misstatement resulting from fraud is higher than for one resulling from error, as fraud may involve collusion. foryery. tntenlional (xnissffis. misrepreseniations, or the override of inlemal. trd. Obtain an understanding of intemal conlrol relevant to the audii in order lo desgn audit procedures that are appropriate in the arcumstances. bul not lor ihe purposes of expresng an opinion on the effeclNeness of the group and parent charitable company's irfemal ¢ontrol. Evaluate the appropriateness of accounting poltaes used and the reasonableness of accounting estimates and related disclosures made by the trustees. Conclude on the appropriene55 of the trv51ees' use of the going concem basis of accounting and. based on the audit eVidCe obtained, vthether a material uncertainty exists rekited to event5 or condrtions that rnay cast signfficanl doubt on the group and parenl charrtable Company's ability to continue as a going concem. If we conclude that a malerial uncertainly exists. we are required lo draw attention in our audrtorfs report to the lated disclosures in the financial statements or, if Such disclosures are inadequate, lo modfy our opinion. Our c(ClusIOnS are based on the audit eviden obtained up to the date of our audit15 report. Ho%tver. fvtyre events or condrtions may cause the gr(WP LV parenl ¢haritable company lo cease to continue as a wng con¢em. Evaluate the cwerall presentation, stnJctu and ¢ontent of the financial statements, including the dis¢losures. an¢J whether the financial statements represent the Lsndertwng transacb.ons and events in a manner that achieves fair presentation. Obtain suffKienl approprote aut1it 8vid8nce regarding the finanoal infiymab"M of the entitie$ or business aclivities within the group lo Èxpress an opinK)n C the consolidaled financial stslements. We are responyble for the dirs¢tion. supeNisK>n and performance of the group audÉt. We remain solely responble for audit report. We clMnale those ¢harggJ with governan regarding. arnog other matters. the plamed scope and timing of the audit and signthcanl a111 firklmigs, irduding any 9gnifunt deficiencie5 in intemal ¢(trol that identify during our audit. Use of our report This report is made solely to the charitable compan*s members. as a l>ody, in accordance with Chapter 3 of Part 16 of the Companie5 Act 2006 and. in sPect of the consolidated finar1 statements. ID the ¢harity's trustees. as a body. in accordance wth Chapter 3 of Part 8 of the Charibes Ad 2011. Our audrt work has been undertaken 50 that we rnht state to the ¢haritsble ¢ompany's members and trustees those matters whi¢h we a required to stste to them in an auditorfs report and for no other wrpose. To the fvIKgSt extent pemitted by law. we do not accept or assume Tesp)nsibility to any party othw than the charitable COTnpany, the chantatAe company's member5. as a bo¢Yy, and Ihe charity's trustees. as a body. for our audit work, for this port, or lor Ihe opinKJn we have fLYmed. Andrew SiKkland (seni Ststulory Auditor) f¢y and bghalf of Mcore Kingston Smith LLP. StatUtY Auditor DtVOn5hire House 60 Goswell Road ECIM 7AD Date." 27 Augu 2020 MO0 Kingston Smith LLP is eligible to act as auditty in temis of sect 1212 of the Ccffnpanies Act 2008. 13
D5J En¥etry10". 35A68CB>FFAHE824832.s5BC7A D&AD CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENOED 31 AUGUST 2019 Unrestricted Funds 2019 RtrICted Funds 2019 Total Funds 2019 Total Funds 2018 Not• Incom? from Donations Trading income from s*Jbsithary Investment income Interest Charitablè ath"vib"ès 16.DOD 195,599 2,497 6.533.347 238.320 6.790.631 5140110 7 305 631 Total incom• 7.032.397 5141)00 7 547 397 6.747 443 Exp•ndltur• on Raising funds Charitable a¢bvities Trading subsidiary $ts 1.132.299 5.502.285 74,435 1.132.299 082,738 74.435 942.554 5,578.033 77.691 10 Total expenditure 6.709.019 580.453 7.289.472 6,598.278 Net income l (expendilure) 257.926 149.165 N•t mov•m•nt in funds 323.378 (65.4531 257.926 149.165 Total fund5 broughl ltrward 23. 26 2,781.556 561.277 3.342,833 3.193.668 T¢)tal funds caNied forward 25. 26 49&8T2 3 600.756 The Chanty ha5 no recognised gan5 or105595 f(Y the year othw than as detailed a)ve. The net movements in the Charity's funds for the year arise frc¥n the ChariW$ conb"nuing activities. The Note5 on page5 17 10 32 fcffji part of Ihese a¢unts. 14
Ooojsign EnvdL¥Je ID". 3&ahac8>FFAHE824632.558Cg)ADM7A D&AD BALANCE SHEETS- GROUP AND CHARITY AS AT 31 AUGUST 2019 Grnup 2019 Group 2018 Charlty 2019 Charity 2018 Note Fixed •$$ets Intsngible 8ssets Tangible assets Investments 18 19 148.078 797.883 219.870 1.108.783 148.078 797.883 1.001 219.870 1,108,783 1,001 945.962 1,328,654 946,962 1.329,654 Currnnt ass•ts Debtors Cash at bank arKI in hand 962.408 2.269.315 2,408 2,259.055 644.462 1,962.095 1,971.259 3.231.723 2.615.721 3.221.463 2.606,557 Liabiliti Creditors falling due wrthin 23 (576.8681 {503.9081 (735.457) (617,615) Met current assets 2.654.854 2.111.813 2.486.006 1.988,942 Totsl ets le$$ Current IlabllltiOS 3,600.816 3.440.487 3.432.967 3.318,596 Liabiliti•s Creditors falling due after mo than one year 24 (601 (97.635) 160) (97.635) Not 0$sets 3.600.756 1342,832 1432.907 3,220,961 Accumulated funds Reslricted funds 25, 26 495.822 561.277 495.822 581.277 Unrestricted funds 25. 26 3.104,934 2.781,555 2.937.085 2.659.684 Total accumulated funds 3.600.756 3.342.832 3.432.907 3.220.961 As permitted by s408 Companies Act 2006, the company has not presented ils ovm statement of financial aCtlI1e5 and relate(I notes. The charty's sulUS for Ihe year wa$ £211.94612018 £56,037) 8126/2020 The financial statements on pages 17 to 32 were approved by tt trustees on ....................... . .. signed on their behaw by". and Kale Stsnners Trustee Company ogistrab.on num fy)883234 15
D¢yoJSvdn Envdape ID." &SAW83-FFA44E824832-SSBCgC)ADM7A CONSOUDATED STATEMENT OF CASH FLOWS AS AT 31 AUGUST 2019 2019 2018 Cash fl(wl{outll(M) from operating aclivities Net cash luse(l iny by operatsry activibgs 371.598 5,344 Cash fl¢>w$ fr¢Mn investing a¢tivit Investment iome thd interest receiveil Proceeds from disposal of fixed assels Payments to acquire tangible and Inlanglb fixed assets 2.497 176,9881 (544.4331 Net Cash provided byl (used irt) invesb.ng a¢b"vrties 76.988 541.936 Net In¢reas• In ¢a$h and cash equivalents Cash and cash eqUNaIts al begnning of 298.056 1.971,258 1541.763) 2.513.021 Cash and cash equivalents at •rtd of yur 2.269,315 1.971.258 Reconciliation of net irKomel (expenditure) to net cash fl¢Jw from 0rating aetiviti•s 2019 2018 N•t Incom• for th• r•porting p•rlod 257,926 147.580 Adjustm•nts for. Depreciatmin charges Net Igainsy losses on investments {Profitl l Loss on disposal of fixed assets Inveslrnent income Decreasel (increase} in debtors Inmsel Idecreasel in crediltys 459.679 383.958 {3.4461 1317,9461 (24.6131 12.497} (172.554) (351.143} Net cash {used Iny wovided by operat•ng activitses 371.598 5.344 Analysls of cash and cash equivalents Cash in hand Notice deposiis {less than 3 Mth$) 2.268,851 1.971.258 Totsl ¢•sh and tssh ewiv•l•nts 2.268.851 1.971.258 16
Dowsign Envdopelo.. 35468CB>FFA44E824832.55BCgOALIiA7A NOTES TO THE FIP4ANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2019 1. ACCOUNTING POUCIES al Basls of preparation The financial staiements c¢ynprise the charity arhj its wlY)IIy-owned subsidiary D&AD Trading Limited on a line-by-line basi5. fran5actirx5 and balances b¢tween the charitable company its Libsidiary have been eliminated from Ihe Consolidated finanaal statements. Balan behveen the two Ct)mpanies are disclosed in the notes of the charitable company's balance sheet. A separate statement of financial activities, or income and expenditure account. for the charitable company itself is not presented because the charilable company has taken advantage of the exemptions afforded by section 408 ofthe Companies ¢t 20. These financial statemts we prepar•J on a going c(YKem basis, under the historical cost convention. The financial statements are prepared stsding which is the functional currency of the charitable group. The financial stalemenls have been prepared in accordance 7Mth the Financial Reporting Stsndard applKable in the UK and Republ of Ireland {FRS 1021. The Charitable Company and tts subsidiaiies arè a publie benefit group for the purposes of FRS 102 aTrJ therefore the Charity also ppad sts financial statements in accordan with the Ststement of Recommended Pfactice applicable to chafitses preparing thwr accounts in accordance wth the Financial R8p(xting Standard applicable in the UK and Republ of Ireland (The FRS 102 charib.es SORP) published in July 2014. ihe Companies Act 2006 and the Chanties kl 2011. The trustees have assessed vthether the use of the wng ¢cKem bags ts apwopriate and have considered possible events ty conditions thal rnjht $1 signifKant doubt on the ability of the Charitable group lo continue as a going concem induding the impact ol Cowd-19. As a result of the lockdown. planned events have been cancelled with a consequent redudw in rvenug and associated cosls. The charity has lakw advantage of the govemments job retenlion scheme and implemenled a festructuring programme k) reduce costs. The trustees havè constdered forecasts for a period of at least one year from the tjate of approval of the financial statements taking these steps in to 8¢counl. On the basis of thesè projections and reserves available to Ihe challty. the Iruslees have concluded that there is a reasortable expectabon that the charitable grp has adequate resources to continue in operational exislence for the foreseeatye futurè. The chari¢able group therefore continue5 lo adopt the going con¢em basis in preparing its financial statements. The principal aCCnting po&ci8s adopled x) Ihe preparation of the financial statements are set out below. b) Incoming rnsour¢•s Al in)me is recognisetl in Ihe ststement faTral actwities when thwe is enliuemenl lo the funds. the Telpt is probabte and the amcyjnt can be measured reliably. Where a daim for repayment of inwne lax has ly wll be made. such income is grossed up for the tsx recoverablè. Gift aid dedarations are accounted for on the due date of paent urnler the d8¢laration. cl Allocatlon of Costs The charity's operats.ng cosls include stsff costs. rent and other related costs. Sud) c0515 are alhxaled belween the charity's edu¢atronal programmes. a¢tivrties for generating funds. and management and administfaih?n. Staff costs are allocated according to the costs of staff working directty in the levant teams or on the approwiate proiects. Where cosls are not directly attn'bLrt8ble lo any yoject or team. they have been apPth"O accordirKJ to the total of all other costs reiatng to eath team c project. 17
DIKv&9n En%t%)pe ID." 35AIICB>FFA44E824J32.WC90AW7A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2019 dl Costs of raising funds The costs of raising furKls represent expenditure in relation to staff memb5 and consultants who are directly engaged in fvndraising and publi¢ty, and the Lated ¢ost$ of th8 fundraising and publicity department. el Ch#rit•ble expendrture Charitable expenditure indudes all expditre drectty related to the objects of the charity and comprises the lollowing.. Costs of actNities in lurtherance of the chwrty's objects - ccrfnprising Ihe costs of the educational and professional awards programmes uertaken by the Charrty and is ac&nts for Wh payable. Support costs representing the staffing and assoaated costs of suppcffiing. mentoring and evaluation the operats)nal programmes for whh the charity is responsble_ Goveman¢e ¢osls - whith are part of svpp(Yt costs representing exnditre on governance infrastructure that allows the ¢hanty to operate and to nerate the inlomiaiion required for public accounlability. They indude the Strateg annIng prctesses that contribLrte to fvture development of the charty. fj Fund accounting The charity mainlamis various e$ offvnds as fdlows.. RgStrict8d funds- represenb.ng grants. donations and skxmsorship receIV which are stipulated to be applied for Specif prc¥ects by either the nalure of the tuThJraising appeal or Ihe granVspon50rship agreement. Unrestrided funds - represenb.ng funds that are expendab at Ihe dis¢reknfm of the truslges in Ihe furtherance of Ihe objects of th thity. Such funds may b• heid in order to financ£ both working capital and capital inveslment. g) Ponsion costs The charty operates a defined CMtsibubon 5¢heme that is open lo all employees. The charity'$ tr¢bulions to the scheme are charged to the slatement rrf fmancial activit n the year to which they relate. h} Intsnglblo flx¢d ass•ts Intangible fixed assets are staled al c05t less amortisalion. Amortisalion on intangible fixed assets is provided at rale5 to vnite off ihe cost or valuabon. les5 estimated residual valtle, of each asset on a straighl line basis ovor ib ewled useful lrfe as follows.. Softsvare and website over 3 years straight line l) Tangibl¢ Ilx•d as$•ts Tangible fixed assets are slated at cost bess depreciation. Oepreciation on tangible fixed assets is provided at rates to write off the cost or valuation. estimat residu81 value. of each asset on straight line basis over its ewled useful lrfe as folk)ws: Leasehold improvements Computer equipment Office equipment over 5 years straight line over 3 years slraighl line over 4 yews straight line 18
Dowsign Envd£ye ID." 35A68CB>FFA44E82-8832-55BC9DADA47A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2019 Al the gnd of each porting period. the residual values and useful lives of assets are reviewed and adjusted rf necessary. In addition. rf events or change in rircumslan(%s indule that the carying value may not be recoverable then the Carng values of tsngible and intangible fixed assets are reviewed for impairment. jl Financial instruments 1. Cash and cash equiydlents Cash aNJ ¢ash equivalents CILKI¢ cash at banks and in harKI and shcyt term dep05it5 a maturity date of three rnonths or less. 2. Finan¢ial assets liabilth.és Basic Financral Instruments. as deffin by FRS102. are reco3nise¢J initially at their transaclion price and subsequently al settlement value. Finawal assets and liabilities that are re¢ei¥ablo or payabk in more than one year and not subject to a marthet rate of interest are measured at the present value of the expe fvture receipts Of Paent discc¥Jnted at a market rate of intere51. kl Leas Assets obtained undor hire purchase contracts or finance lease5 are caprtalised in the balanc8 sheet. Those hdd undei hire purchase traCt5 are depreciated over th&r estimated useful lives. Those held under finance leases ao depreciated over their ests"mated useful It¥es or the lease tem, whi¢hever is the shortw. The interest element of these obltqalions is charged lo Ihe Statement of Ftnan¢ial ktivilies over the relevant period. The caimlal element of the fulwe payrnw)ts is treated as a liability. Rtal$ of assets hekl under 0ratir SeS are charged to the statement of financial actrvitkgs in 8qual amounts over the lease temi. l) Irrecoverable VAT Irrecoverable VAT is charged againsl the leg of resources expended for it was incurrgd. m) Foreign Exchange Transa¢li¢x)s in cuffencw other than p(xJnds steding are rec4Nded at the rates of exchange prevailing at the dates of the trallsaclK)ns. At each repothng end date. monelary assets and liabilrties that are denominated in flywgn currencies are retranslated al the rates prevailing on the reporting end date. Gains and losses arisTrng on translation are induded in the statement of financial activities f¢y Ihg period. n) Critieal a¢¢ounting estimatos and arus of judgement In preparing finanoal ststeMlS il is necessary to make certain judgements. estlmates and assumptions that affect the amounts recognised in Ihe financial statements. The follwng judgements and astimates are considerad by the Irustees to have most significant eff1 on amounts recogni5ed in the finanoal slalements. Tangible and inlangible assets 19
Oocu&gn Envelope10." 35A68C83-FFA14E82-8832-55BC9DADM7A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2019 The annual deat1( and amortIsat chanJe for fixed assets is sensitNe to thanges in the estimated useful economic INe5 and residual values of the assets. The usefLJI economic lives and residual values aro re-assessed annually. Tfw are amen¢Jed when necessary to reflect current estimates, based on technd091 advancement. fU1u investments. economic ufilisalion and the physical condilion of the assels. See nole 19 and 20 the carrying amount of the property, plant and equipment and intangible assets. LEGAL STATUS OF THE CHARrrY The Cha¢ity is a ¢¢panY limited by guarantee has no sh8ffj capital. membefs of the charity are the trustees listed on page 1. In actsydan¢e vAlh Ihe Mwnorandum of Assooats"on, every Member is liable lo witribule a sum of £25 in the event of the ¢harity being wound up. Al 31 August 2019 there were 1355 membws {2018: 1.462) FINANCIAL ACTMTIES OF THE CHARITY The financral aclbVitie5 shty•ffl in the solidated statemenl includes those of the D&AD and ts wholfy owned trading subsidiary D&AD Trading Limrted. The subsidiary donate5 all of rts profits to Ihe charity und8r Gift .. A summary of the trading r8suks of the sub&diary is shown at Note 21. DONATIONS RestrifA•d 2019 Rtrithd 2018 CLvporale Gift arKI donatrJns 16,000 16.000 TRADING SUBSIDIARY INCOME Urwestricied 2019 Unrestricted 2018 Irme generated in O&AD Tradin9 Ltd 238.320 195,599 Total 238.320 195,599 INVESTMENT 114COME AND INTEREST Unr•strict•d 2019 Unr•strlet•d 2018 Bank deposit inttresl 3.446 2,497 2,497
Docusign Envelope10.. 35A68C8>FFA44E82-883245BCgDADM7A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2019 INCOME FROM CHARITABLE ACTMTIES Y•ar to 31 August 2019 Restricted 2019 Totsl 2019 2019 Members subscriptions Universty & College Neh¥ork subscriptions and student awaids scheme Educational publications Public Jectures, seminars. exhibition5 and creative awane$S projects. OperatiM of D&AD Global Awards Programme 81,201 270.141 81.201 635,141 67,604 324.302 67.604 474,302 150.0 6.047,383 6.047,383 6.790,631 515,000 7 305.631 Year to 31 Au9U$t 2018 R•stri¢t•d 2018 2018 2018 hAembers subscriptions University & College NetrAork subscripknon5 arKI student awards scheme EducalK)nal publicatic5 Public le¢tures. seminars, exh*)thns and creative awareness projects. Operaiion ol D&AD Gkjbal Awards PrograThYne 110.546 269.550 110.546 555,550 286,000 66.737 241. 66,737 391,595 150.oc 5.408.918 5.408.918 6.097,347 436,000 6.533.347 COST OF RAISING FUNDS Unrnstricted 2019 UnrestrScted 2018 Fund raising costs 1.132,299 942,554 1.132,299 942.554 21
Ooojsigt) En¥dope ID.. 35A68CB>FFA44E82-8B32.55BCA[14A7A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2019 COSTS OF ACTMTIES IN FURTHERANCE OF THE CHARirrs OBJECTS Year to 31 August 2019 Unrg5trirtsd 2019 Restr•ct?d 2019 Totsl 2019 College and student trainKtg programm8s Educational publicab'ons and material Lectures. seminar$, exhibitityts and ereatrwa awafeness projècts Costs relating to the O&AD Global ArdS scheme 358.326 1.614.384 309,257 667,583 1,614.384 480.294 271.196 3.320.477 3.320.477 5.YJ2.285 580,453 6.082,738 Year to 31 August 2018 Unrestri¢¢ed 2018 R•strict•d 2018 Total 2018 College and student training programme5 Educational publication5 and material Lectures. seminars. exhibiti1$ arn1 ueative awareness projects Costs rdating to the O&AD Gbal Awards 306.213 1.601.682 163.853 313.67S 619,888 1,601,682 373,195 209.342 2.983.268 2,983,268 5055.016 523.017 5,578,033 10. TRADING SU8SIDIARY C¢)STS Unr•strict•d 2019 Unrestricted 2018 Costs incurred by D&AD Trading Ltd 74.435 77,691 Total 74.435 77,691 22
Do$3 Enlope ID.. )&468CWFA44E824832.55BC9DADAA7A NOTES TO THE FINANCIAL STATEhlENTS FOR THE YEAR ENDED 31 AUGUST 2019 11.ANALYSIS OF TOTAL RESOURCES EXPENDED Yoar to 31 August 2019 Oth•r Gov•mance direct & support Totsl 2019 Costs of activ•ties in furtherance of the charity's objectives Educatsonal publicatM)ns and material Lectures. seminars. exh1"tIOnS and cwbve arenesS {lectS Cdlege and student Iraining pryrammes Costs rdating lo Ihe D&AD Gk)bal Avrards scheme 330.349 113,031 1,171.004 1.614.384 209.098 358.326 820,785 271,196 3J9.257 2.499.692 480,294 667,583 3.320,477 1.718.558 3.193.176 1.171,004 6.082.738 Other expenditijre Costs of r8ising funds Trading c0515 627.617 S)4.683 74,435 1.132.299 74,435 627.617 579.118 1.206.734 Total 2.346.175 3.772.294 1.171.004 7.289.472 Yearlo 31 August 2018 Direct Other Govem•n¢e dir¢rt & support Costs Total 2018 Cts of adNitiés in fvrfh•rnn of the ¢harity'$ objectives Edu¢alional publi(tIonS and material Lectures. seminars, exhibilions and rnthve awareness projects College and sludenl training prtrjrammes Costs relating lo the D&AD Global Avrdrds scheme 240.349 146.883 1.214.4) 1,601.682 163.853 J6213 695.406 209.342 313.675 2.287.863 373.195 619,888 2.983.269 1AOS.821 2.957.763 1.214,450 5,578,034 Other expenditure Costs of raising funds Trading c0515 572.069 370,485 77.691 942,554 77.691 571069 448.176 1.020.245 Total 1.977.890 3.40&939 1.214,450 6.598.279 23
DooJSkJn Envdte ID. 35A68C8>FFA14EB2483245BC9DADA47A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2019 12. SUPPORT COSTS Year to 31 August 2019 UnstrICted 2019 R•strict•d 2019 Total 2019 Support Staff and related co$1$ Depreciation Other supwrt costs Total support costs 510.522 311.415 -29.422 792.515 510,522 311,415 -29.422 792.515 Governance Salaries and alatiOn of operating costs Audit fee5 Other legal and wofeswonal fees Total govemance costs 326.302 20.535 31.652 378.489 32e.302 20.535 378,489 1.171.004 lo 31 August 2018 Vnrestri¢tsd 2018 R•stricted 2018 Total 2018 Support Stsff and related costs Depreciabon Other support cost5 Total support ¢osts 476,800 239,479 41.443 757.722 476,800 239,479 41,443 757,722 Governance SaL3ries and of operating costs Audit fees Other le9al and wofessional fees Totsl governan costs 382.276 23.696 50,755 456.727 382,276 23.696 50,755 456,727 1,214.449 1.214,449 13. NET OUTGOING RESOURCES Net ojlgoing resr for the year are stated after char&4ng: Group 2019 Charity 2019 Group 2018 Char 2018 Auditors. remunerab.on Inleresl payabb ¢Jn finarKe leases and hTe twrchase .535 10.075 20,535 10.075 25.156 18.741, 23,696 18.741 Depreciationl amOrbsat.' li} Ced assets (tangib and intangible) lill Leased assets Renlals under opèratsng leases". {1} Land and buildin9S 459.680 459.680 383.958 383,9S8 222.917 222.917 222.917 222.917 24
OouJSlgn EnOpe10." 35A68CB>FFA44EBZ-8832-WC9DAtW47A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2019 14. ANALYSIS OF STAFF COSTS Staff ¢osts ¢omprls•: 2019 2018 Wage5 and $8]aries (ir¢luding t•npcTrry sPth-tèm ccmtr&t staffl 181 security costs Pensil Costs ReLrurtment and training Rdunt1ary and lwm1natn pafits 2.576,407 256,036 112.077 236.630 10,000 2,246,953 242.987 85,881 ' 180.718 77.702 3.191.19) 2.834.241 The number of 8mplosws whose em0ments (salaries aTrJ b8rbefils in kindl exn9 pensions fell thI) the folkJ¥ing bands was: 2019 2018 £60.001- £70,OCKI £70.001 - £80,000 £80.001 - £90.000 £110,IX)1 - £120,000 £120.C4]1- £130.000 £140.C111- £150.000 £1 so,j1 - £1.000 Where no emptyee falLs into a salary banding at*Jve. thi5 barmling has been exduded. The number of employees eaming more than £60.000 f¢y wthom p8nsion Contribun5 have been paid in the year is 8 12018". 81. The total pengon contn"butions paid by the ¢harity during the year for an employee eaming m¢ye than £60.000 was £46.633 {2018.. £36.0481 15. STAFF NUMBERS The average number of emplow induding temwary and short-term contract stsff analysed by function was". 2019 number 2018 number Charitable activities Income generalK Administration arhj 5UPPOrt 12 12 67 25
0$19n En¥tknpe10. 35A68C8>FFAHW-8832.55BCgDAOM7A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2019 16. TRUSTEES ANO KEY MANAGEMENT PERSOhlNEL During the year £NII was paKJ to Iruslees in reSpt of expenses incuffed behaw of the charily12018.. £Nil was paid). The charity purchased Iruslee irKlemnity insurance costing £1.781 12018: £1,781) lo protect the ¢harity from loss arising from neglect or default of rts trustees and empkJyee5. The amount shown above in wages and salaries indudes rernunuat¥Jn of £25.000 {2018.. £25.0001 paid to the non-executive Chairman who is nol a trustee of Ihe charity. Key managèm8nt ptrs(mnd Ude the Trustees. Chief Exècub"¥e land senicff staff portIng direclly to the ch Executive). The totsl wnployee benefits of the ¢harity'$ key management persomel were £646,998. (2018.. £765,589}. 17. TAXATION The company is a rggistered ¢harrty and no provision is con&dered necessary for taxation as the charity 15 exempt frcKn tax on rts chairtable income to Ihe exient that il is applied lo charitable purposes. 18. INTANGIBLE FIXED ASSETS- GROUP ANO CHARITY Website and softwaro Cost or valuation As at 1 Septemter 2018 Additions Disposals 1.842.275 33,108 1.535,325 As al 31 August 2019 340.058 Amortisation As at 1 Seplwnber 2018 Charge for the year Eliminate<l on disposal 1.622,405 104.900 1.535,325 As at 31 August 2019 191.980 Net book value As at 31 August 2019 148.078 As al 31 August 2018 219,870 26
Ooojsion Envdw10.' 3WaCB>FFA44E82-8B37.558C9DALX4A7A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2019 19. TANG18LE FIXED ASSETS- GROUP AND CHARITY L•as•hold Improvements Equipment Total Cost or valualion As at 1 September 2018 Additions Oisposals. 1.312.070 939.002 43,880 11&9.14fl) {475,134} 2.251.072 43,880 1664,4901 A5 al 31 August 2019 1.122,715 7.748 1.630.464 Depreciation As al 1 September 2018 Charge for the year Eliminatgd disposal 460.387 224,828 1189.356) 681.903 129,952 1475,134> 1,142.290 354.780 1664.4901 As at 31 Augusl 2019 495.859 336.722 832.581 Net book valu• As at 31 August 2019 626,856 171.027 797.883 As at 31 August 2018 851,684 257.099 1,108.783 20.INVESTMENTS IN SU8SIDIARIES The charity has an investment in the fc4lowry subsidtary undertaking5". R•gl¥l¢red Offiw Prfnclpal activity % On•rshlp The Schwl of Communi¢atiM Lnrted. 64 Cheslira St. London E2 6EH Non.trad9 O&AD TradiNJ Limited. 64 Cheshire St, London E2 6EH Trading O&AD Ltd. Suiie 1201. Tth¥er 2. The Gateway, 25 Canton Road. Tymshatsui. Kowltr)n. Hong Kong Non-trading DIAD USA INC. Frankfurt Kumil Klwn & Selz. P.C. 488 Madison Avenue. NY 10022 Non4ra¢Jin9 100% 100% 100% 100% 2019 2018 Cost al begrting ar end of year 1,001 1,001 The School ol Communicaticn Arts Limited has been excluded frchm consolidakn.on for Ihe reason that it has never traded since inc¢yporation and has Th) matefial effect on the surplus or net assets of the group. The financial adivities thown in the consolidated slatement includes Ih05e of the DUO and ils ¥tholly owned trading subsidiary D&AO Trading Limrted. The c(Mnpany donates all of its profits to the charity under Gift AKI as a divend. A summary ofthe trading results is shom be1tr4V. 2019 2018 Profit & Loss A¢¢ounl Turnover Cost of sal8S 238,320 {72,8101 195,599 {76,1061 Gross wofit Adminis1ri oxpgnses 165.510 11,6251 119,493 (1,5851 Profft cn ordinary activitS 163.885 117,908 27
DouJ&"gn En¥tlope ID.. 35A68CB>FFA44E82.8832.558C9DADM7A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2019 INVESTMENTS IN SUBSIDIARIES {CONTINUEDI 2019 2018 Balance sheet Current assets Creditors.. amounts faling due wthin ¢me ar 170.349 {1,500} 124.333 (1,461) Tdal nel assets 168.849 122.872 Call&J up share pital Retained profil 1,000 167,849 1,OC(I 121,872 shaders, funds 168.849 122.872 21. FINANCIAL INSTRUME1s Group 2019 Group 2018 Charity 2019 Charity 2018 Carrying •mount of financ1 ¥s$ets Debt instruments measured at amorti5ed ¢c6t 861.028 441.359 861.028 441.359 861.028 441.359 861,028 441.359 Carrying amount of financial liabiliti09 Measured at amortised c¢)St 505.294 537.766 505.294 536.306 505,294 537.766 505.294 536,306 DEBTORS Group 2019 Group 2018 Charlty 2019 Charity 2018 Trade debtors Other debtors Owe(1 from subsi(Jiary undertakings Prepayynents arml accrued income 659.581 129,388 317.451 170.882 659,581 129.388 317,451 170,882 173.439 156.129 173,439 156,129 2.408 644.462 962.408 644,462 28
DocvSv4n EnYdow10". 35A68C8>FFAHE82-8832458C90ADAA7A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2019 23. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group 2019 Group 2018 Charity 2019 Charlty 2018 Trade creditors uther credrtofs Taxation and social Urity Accfued expenses Deferred income <Jved lo subgdt8ry undertakn"n9S 127.248 126.500 71.694 251.426 54.985 1,22? 66,845 221,855 127.248 126.5C 71,694 249.926 54.985 1fin.222 66.845 221,979 160.089 113.584 576,868 503.907 735.457 617,615 The ¢harity has a debenture in respect of the Royal Bank of Scotland PLC, whi¢h is se¢urod by a fixed and noatin9 eharge over Ihe charity and its assets. presenl and futu. CREDITORS.. AMOUNTS FALUNG DUE ER IAORE THAN OP4E YEAR Group 2019 Group 2018 Charity 2019 Charity 2018 Net obligations under hire purchase ccffltracts 97.635 97.635 97.635 97.635 Net obligations undev hire purchase contracts Group 2019 Group 2018 Charity 2019 Charity 2018 Repayable leefi fv40 and five years Included in liabilth.es fallbn9 due one year 97.635 144.703 97.635 144,703 97.726 97.726. 97.786 242,338 97.786 242,338 29
DocuSb9n Enwel)pe D.. 35A68C8>FFA44E824832-55BCgDAW47A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2019 25. ANALYSIS OF CHARITABLE FUNDS Anatysis of unrestrlcted fund movem•nts Exp¢nditur•. gains and losses 8aknnce 31 Augu$t 2019 1 S•ptomber 2018 Incom• General fund 2.781.556 7.032.397 (6.709.019) 3.104,934 Balance 1 September 2017 Expenditure. gain5 and 10s$0s 8alanc• 31 Augu$t 2018 In¢om• Genera fund 2.561.374 6.295.443 (6,07S.261) 2.781.556 Unrestricted funds realised by the subsidiwy company and induded in the above am¢)unts". £nil (2018.. £Nill Analysis of restricled fund movements Restricled inccme ccmnprises donalitMS. supwrt atyj 9ranl fKeived for. and althated to. specific purposes." Balance 1 S•pt•mb•r 2018 Balance 31 Augu$t 2019 In¢ome Expènditurn College and student educatal kvf•3rammes Public education and creative avrdreness programmes Awards programme 284.193 1309,2571 339,936 1125.7121 402.794 1 .000 {271.1961 (246.9081 402,794 561.275 515.000 {580.4531 495.822 Balance 1 Septemb•r 2017 Balancé 31 August 2018 In¢om¢ Expendlture College and student edUcatial programmes Public educalion and creative awareness programmes Awards programme 295.868 W2.000 1313,6751 284.193 166.370) 402.794 19).1100 (209,3421 1125.7121 402,794 632,292 452.oc) {523.0171 $61,275
DouJSwn En¥dcy8 ID.. 3S468CB>FFA44E824832.558C9DADM7A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2019 25. ANALYSIS OF CHARITABLE FUNDS (CONTINUED) The restrid fun05 have been alltxaled fty wards wemony. Whsle Pencil programme, student awards projramme. graduate academy woject. show and tell projecl. and educab'on council. Income for the funds origfrnales from spOnSship ol, oc donation$ to. 8 particular project or event and arè expensed as required wth unspent funds carried forward to be used against fijture expenditurè. 26. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS As at 31 Au9USt 2019 Unre$tfKted Funds R•strlct•d Funds 2019 Total Fixed assels Intangible assets Tangible assets f(K Use by the tharity Investment in subsidiary Cuffent assets Debtors Cash al bank and in hand Current liablllties Long Temi Llabilllles 148.078 797.883 148.078 797.883 962,408 1.773,493 {576.868> (601 962.408 2,269.315 {576.8681 1601 495,822 3,104,934 495,822 3,600,756 As at 31 August 2018 Unr•strlct•d Funds R•stricted Fund$ 2018 Total Fixed assets Intangible assets Tangible assets for use by the chwity Investment in subgdiary Current assets Debtor5 Cash al bank and in hand CuTr•ni liabilities Long Term Liabilities 219,870 1.108.783 219,870 1,108.783 600.462 1.453.982 (So3.8) 197,635) 644,462 1.971.259 {503.9081 197.6351 517,277 2,781,556 561,277 3.342,833 31
DooJSv4n Envelcye ID.. 35A6BC8>FFA44e824632.558CgDADAA7A NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2019 OPERATING LEASE COMMITMENTS At the pOrting end dale, group had ¢NJtslandTrng ctynmilmgnts for futurn minimum lease payments under nOn-canCelb1e operating leaw, which fall due as Idlows.. Charity and Charity and Group Group 2019 2018 Within one year Between two and five yea with 5+ years 249.833 80,500 249,833 325,398 330,333 575,231 28. PENSIONS AND OTHER POST-RETIREMENT BENEFtT COMMITMENTS The Charitable Group operates a defined tributIon schwne whh is administer independently of the Group. The cost lo the Group for the ar was £112.07712018: £85.881 }. At the Balance Sheel date, Ihe amount dug 10 thg pension administrators was £28.77312018'. £15.5181. The expected cos110 the charity in Ihe coming year. if all slaff take up their pewon opts'on, is approximately £181.44712018.' £135.6621. 29. RELATED PARTY TRANSACTIONS During the year the following felated party transactions were carried wt. £4,750 was paid to Aexandra Taylor pret9 training seS. AexarKlra Taor was Director of D&AD12018: £5.708). Sale5 of £3.682 were made lo Superunion. where Kalherine Tudball. a diroth of D&AD: {2018'. £1.9981. Sales of £11,590 12018.. £Nil) were made to Saatchi & Saatchi Group Ltd where K8te Slanners FS a director. Sales of £19.531{2018". £Nill %btre made lo 8800 Ltd, a company where Stephen SFence is a director. Sales of £72,935 12018.. £77.6911 and purchase5 of £238.320 {2018". £195.599) were made to D&AO Trading Limited. a wholly ovmed sUbslry of D&AD. At the balance sheet date there was an amount owe(11o Ihe subsidiary of £3.961 {2018". £4.583). At the balance sheet date, no amounts were (Krtstsnding in reSk)e¢t of these tranSaCt)nS. No amounts have been wrritten off or provided for in rdakn. to these baiancas durTrng the year. 30. ULTlhlATE C014TROLUNG PARTY The charitable company 15 under the conlTc4 of its membets. No one member has sufficient voting rights to control the charitable company. 32