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2021-12-31-accounts

Our annual report Girlguiding’s annual report and financial statements For the year ended 31 December 2021

Girlguiding is the leading charity for girls and young women in the UK. Our remarkable volunteers give girls a space where they can be themselves, have fun, build brilliant friendships, gain valuable life skills and make a positive difference to their lives and communities. Our volunteers inspire and support girls to share their voice, grow in confidence and reach their full potential.

Thank you to every volunteer who helped support girls and young women through the difficult days of the Covid-19 lockdowns, in both 2020 and 2021. Thank you to girls for the determination shown to get back to face-to-face guiding. We were proud to overcome the challenges of 2021 and to continue offering opportunities and experiences for Rainbows, Brownies, Guides and Rangers throughout the year.

Thank you for being part of it.

Contents

1

‘ So glad to be back together, it’s much harder to toast a marshmallow over Zoom!’

Girl aged 10-14

Introduction

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The trustees of Girlguiding are pleased to present their report for 2021

While not without uncertainties, it’s been a year of hope and positivity, as we have seen our girls enjoying activities face-to-face once again.

2021 not only took us into the second year of the global pandemic, but also into the second year of our new strategy, which has continued to serve us through this time of crisis. Our focus in 2021 has been to get girls back to guiding. We are pleased to say we were able to do that, thanks to our incredible volunteers, members and staff. Seeing the return of local in-person events and celebrations across the country has been wonderful. While digital engagement continues to be a helpful option, guiding face-to-face is always the goal, in order to provide the best opportunities for girls.

Of course, it has not been an easy time. Like many others, we have felt the continued impact of the pandemic and restrictions. Yet the fact that we are on the road to recovery and our membership has grown in the past 12 months shows the resilience of the guiding movement. I am proud of the dedication of each volunteer and as a community we have shown strength even through uncertain times.

We are always talking and listening to girls and young women and continue to invest in gathering the views of both our members and girls outside of Girlguiding. Regrettably, our research into girls’ happiness, the impact of lockdown, body image and sexual harassment has one stark message: girls continue to live in an unequal world. It is clear that girls and young women need Girlguiding now more than ever. We will not stand still in our mission to make society a more equal place.

We want to be there for all girls. To do that, we recognise we need to look honestly at ourselves as an organisation. In May 2021 we published the findings and recommendations of our diversity and inclusion audit. We talked to more than 200 people from all areas of guiding, including girls, volunteers, parents, carers, staff and trustees. What we found was concerning. While many shared positive experiences, it was clear that we do not yet have a consistently inclusive culture. This is not good enough.

To tackle this, we launched our diversity and inclusion strategic plan. We are already seeing progress towards our vision of equality. In the first half of 2021, we continued to increase diversity across our board of trustees and organisation. We also recruited volunteer inclusion advisors and rolled out training to staff and volunteers. We want Girlguiding to be a place where everyone is free to be themselves and has a sense of belonging. I am proud to be involved in an organisation that has put so much into this important area. We stand firm in our commitment to make Girlguiding a place where everyone feels welcome.

We want to make our volunteers’ experience fulfilling and rewarding. In turn, they’ll be equipped to offer the best experiences for girls. In 2021, we worked on modernising our volunteer systems, investing in volunteers’ personal and professional development, and supporting local recruitment campaigns.

Introduction

3

‘Lockdown without our Girlguiding adventures at home would have been a very dull place. The badges are still underway and keeping us all focused.’

Parent

Without volunteers, there would be no Girlguiding. We are grateful for their continued support and dedication.

The safeguarding and wellbeing of our members has and will always be at the heart of everything we do. In 2021 we continued to update necessary procedures in line with government Covid-19 guidelines and the law so we could continue to provide a safe, fun space for girls.

A huge thank you to all who have raised funds for us this year at such a vital time for Girlguiding. We are grateful to players of People’s Postcode Lottery and to the Department for Digital, Culture, Media & Sport (DCMS). Your support makes a real difference to the experiences we can offer girls and young women. A special thanks to partners Zoom and Lifebuoy, who helped us continue online guiding this year and supplied some units with hand sanitiser.

We are becoming more agile for future generations, with our focus always on what girls need and want from us. We are here to provide a safe space for girls to be themselves - to have fun, grow in confidence and make friendships for life. Whatever the future holds, alongside our incredible community, we’ll be here to give girls exceptional experiences today, tomorrow, together.

Catherine Irwin MBE Chair of the Board of Trustees

2021: Our achievements

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As the Covid-19 pandemic continued and life remained challenging for many, we worked hard to give girls and young women opportunities indoors, outdoors and online, supporting our members through the restrictions.

We stayed focused on the three priorities we outlined in our strategy: creating exceptional experiences for girls, developing a rewarding volunteer experience and being inclusive and impactful.

Here is what we achieved during the year.

‘ We are very grateful to everyone who has been involved and kept Girlguiding going – my daughter has really benefited.’

Parent of girl aged 7-10

2021: Our achievements

5

Creating exceptional experiences for girls

Great opportunities despite restrictions

The start of 2021 was an uncertain time. With lockdown back in place, we focused on making sure girls felt safe and well. Thanks to our incredible volunteers, girls and young women continued to enjoy guiding in person and online, with at least two-thirds of units meeting face-to-face by the end of the year.

While restrictions were in place, we added almost 1,000 pieces of content to our Adventures at home online programme. We adapted other activities to make them accessible virtually.

This included events with over 8,000 members, who took part in our online festivals. Our Spring social, a day of creative wellbeing activities, had 4,000 views on YouTube. All this helped members stay connected and have fun.

We were grateful too for hybrid offers from local guiding units, including delivering activities to members’ homes.

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‘ She camped alone in
our garden for 9 nights
– it was amazing.’
Parent
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2021: Our achievements

The return of adventures

As restrictions lifted, we knew it was important for young members to get outside and enjoy adventures again. We launched our new online adventurous activity finder to make it easy for leaders to find exciting activities to do with girls, such as axe-throwing and auto-belay climbing.

Girls enjoyed the summer months at our activity centres and joined Fearless Fun, our first large-scale, in-person event since the pandemic began. Over a weekend, they took on high ropes and raced in canoes, helping them grow in confidence and learn new skills. Our Generation

Green campaign, funded by the government’s Green Recovery Challenge Fund, also encouraged young people to connect with the outdoors. Over 5,000 girls camped at our sites as a result.

We supported over 350 girls to complete the Duke of Edinburgh’s Award by delivering expedition packs to units, including those working with disadvantaged young people. Another 55 girls completed the Queen’s Guide Award this year – the highest award in Girlguiding, which helps girls develop personal skills and community involvement.

Extending our reach

We were delighted to welcome almost 113,000 new young members in 2021. We launched our first nationally coordinated campaign to recruit Rainbows and Brownies, developed in partnership with country and region teams. The campaign used social media adverts to target parents in areas with available places and led to over 8,000 enquiries – helping us reach more girls and young women across the UK.

For more than 30 years, Rainbow units in Ulster have taken in four-year-olds, while elsewhere in the UK they start age five. We held a consultation in 2021 which led to over a thousand Rainbow leaders in England, Scotland and Wales signing up to take four-year-olds as part of a pilot scheme. By the end of November, we had welcomed almost 1,600 new four-year-old members. All units will be open to four-year-olds by the end of 2022.

Empowering girls and young women

We want girls to be empowered and ready to make a difference in all sorts of areas.

This year, we added 75 new activities to the Girlguiding programme. These included debating skills for Parliament Week and coding and technology challenges created by Google. For Rangers, we released an activity in partnership with CoppaFeel!, with information about breast cancer and how to check themselves.

We supported almost 9,000 young women to become young leaders, empowering them to take on an active role at their unit. We also ran almost 200 virtual peer education sessions, training girls to teach others about important topics such as safety.

‘ My best adventure was abseiling and bushcraft because I overcame my fear of heights and learnt different ways to light a fire.’

Girl aged 10-14

2021: Our achievements

7

Developing a rewarding volunteer experience

Investing in our volunteers

Without our 80,000 volunteers, there would be no Girlguiding. They are the very core of giving young members amazing opportunities to have fun, learn new skills and reach their full potential.

We know how crucial it is to support our volunteers, personally and professionally. We want to offer rewarding, flexible roles and accessible, quality training. We want our volunteers to feel appreciated and motivated, so in turn they can give girls the best possible experiences. In 2021 we worked on a new learning platform to offer a more digital and accessible experience. This will eventually bring together all local and UK led training.

We provide learning and development for volunteers on a range of mandatory and non-mandatory topics. Most training is delivered locally by our 600 brilliant volunteer trainers.

In 2021 we delivered new e-learning content and held almost 300 training webinars. Topics included risk assessment, mentoring and virtual guiding. We also offered outdoor residential training to volunteers so they could lead exciting activities as part of our Generation Green project.

We revised and relaunched our safeguarding training in 2021 and 27,500 e-learnings and training sessions were completed across the year. To support our younger volunteers, we developed a new safeguarding e-learning programme specifically for 14- to 17-year-old volunteers, which is launching in 2022. Safety is at the heart of everything we do and this training ensures a safe, fun space for girls.

‘I have been told that I’m more confident and my questioning and listening skills have improved.’

Volunteer

2021: Our achievements

8

Communicating well

With Covid-19 restrictions changing throughout 2021, making sure our volunteers had the right information to hand was crucial. We continued to send regular communications to keep volunteers and parents up to date, including guidance and ‘how to’ videos. We also distributed more than 2,200 recovery grants to help units manage any changes they needed because of the pandemic. The grants were made possible thanks to the DCMS, Pears Foundation and Children in Need.

We offered volunteers more opportunities to come together online too. We held regular online calls for commissioners and volunteers, which were a great way to stay connected and gather feedback. For example, more than 700 commissioners attended a virtual introduction to our new learning platform. This provided an opportunity for commissioners to ask questions and be informed and confident to support other volunteers in their areas.

Improving what we offer volunteers

After listening to feedback, in 2021 we focused on improving the roles we offer volunteers and how we recruit them. This will ease pressure on our current volunteers and reduce waiting lists. We ran an advertising campaign to recruit volunteers from April to June which generated more than 1,000 enquiries. In total, we were delighted that 5,700 new volunteers joined us in 2021.

‘ Loved the chance to network with other leaders throughout the country whilst sitting at home!’

In 2021 we were pleased to receive £500,000 of a three-year £1.2 million funding package from Pears Foundation, in partnership with Scouts. We are developing an onboarding programme, to welcome new volunteers and give them the knowledge and skills they need to thrive.

In 2021 we set up a new consultation process, allowing more volunteers than ever before to contribute their thoughts on our policies and procedures. As ever, safeguarding has been a key focus and we reviewed our digital safeguarding policy around online meetings and Covid-19 risk assessments. We also launched improved training and a new toolkit to help commissioners investigate any concerns.

Volunteer

2021: Our achievements

9

Being inclusive and impactful

Launching our diversity and inclusion strategic plan

At Girlguiding we want to build an equal world where all girls can make a positive difference, be happy, safe and fulfil their potential.

In 2020 we carried out a diversity and inclusion audit. We asked 200 staff and members, including marginalised groups who haven’t been fully represented or heard in the past, about their experiences in Girlguiding. Regrettably, the audit showed that we’re not where we need to be in terms of making everyone feel welcome.

It became our urgent priority to change this. In May 2021 we published our new diversity and inclusion strategic plan, outlining what we will do to change our culture and become more inclusive. We want marginalised groups represented at all levels and to build strong connections with underrepresented communities.

We thought it was important to be open about our audit findings and publicised our plan, sharing it with members, parents, staff and the media. We’re proud of taking this bold step towards where we need to be – and are already making strides forward.

In 2021, we began to put our plan into action. We recruited nine specialists from within our membership to support volunteers and promote an inclusive environment. We launched staff networks for people in eight marginalised groups, giving employees forums to support each other. We invested in the education we offer, rolling out race equity training for senior staff and volunteers, and e-learnings on disability inclusion. We developed activities for girls about diversity and inclusion and introduced a volunteer role for adults with support needs. We are also looking at tracking our membership demographic data, to help reach all girls.

We were grateful to receive funding from the Garfield Weston Foundation to expand our work on diversity and inclusion. This will be an innovative project in 2022, looking at new ways of guiding in marginalised areas.

‘Guiding has distracted her from her job as a young carer and made her feel she can accomplish things.’

Parent of girl

2021: Our achievements

10

Advocating and influencing

Championing the voices of girls on topics they care about is a crucial part of Girlguiding’s work.

In 2021 our advocates attended two party conferences and spoke about public sexual harassment, while our British Youth Council delegates passed motions for making it a criminal offence. Climate justice is another key issue for girls and young women, so members from the World Association of Girl Guides and Girl Scouts (WAGGGS) and Girlguiding Scotland attended COP26. Attending such high profile events gives our girls the platform to discuss things that matter to them and their peers.

We responded to 13 government consultations and evidence submissions, including the Violence

Against Women and Girls’ Strategy, the Online Safety Bill, and DCMS’s Youth Review. We were also referenced in the Women and Equalities Select Committee body image inquiry report. Doing this allows us to show what life is like for girls in the UK and influence government policies.

We published five reports, including research revealing girls felt lonelier and more anxious in early 2021 than in the previous lockdown. In September our 13th Girls’ Attitudes Survey – which consults over 2,000 girls across the UK – showed a dramatic decline in girls’ happiness. These findings highlight the importance of communities such as guiding for girls’ wellbeing.

Increasing our presence

In 2021 Girlguiding was mentioned nearly 3,500 times in the media. This helps us make girls’ voices heard and to influence a better society for them.

we are continuing to grow Girlguiding’s external presence as a relevant girls’ space for a diverse range of girls, parents, volunteers and partners.

Through our research, advocating and influencing,

Thank you to funders

We are extremely grateful for the continued support of our funders and valued partners, including the Postcode Children Trust, the Royal Navy and Google.

This year we received two one-off grant pledges: £2.6 million from the Postcode Children Trust and £2.9 million from DCMS’s Youth Covid-19

‘ I liked everything!’

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Girl aged 10-14
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Support Fund. Pears Foundation also awarded us an additional £100,000 to extend the Community Match Challenge grants programme in England to the other three nations.

Thank you all for helping us to increase our impact and make a positive difference to our young members during another tough year.

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Making Girlguiding sustainable for the future

We want to continue providing experiences that will benefit girls today as well as future generations. We want our volunteers to know their time is valued and appreciated – and for them to enjoy and find fulfilment in being part of Girlguiding.

Growing our membership

Our main priority for 2021 was to get girls back to guiding. We are thrilled that most units are back to meeting face-to-face. Now we want to continue to increase our membership eventually back to pre-pandemic levels, reach more girls and support volunteers to grow Girlguiding in their local areas.

and grow our income. Our new diversity and inclusion strategic plan will help us reach new audiences. We also want to improve how we welcome and train new volunteers, to make sure they feel supported and continue giving their time to guiding.

To be sustainable for the future, we are continually looking at new ways to recruit and keep members

Being financially sustainable

In 2021 we were still dealing with the challenges of the pandemic. However, we worked hard to put plans in place to ensure that we recover and rebuild as society does. We are happy to be moving towards that recovery, as sales of Girlguiding merchandise bounced back strongly in the second half of the year.

Our main source of recurring income is subscriptions from members. We have increased the level of these subscriptions, as an important way to sustain Girlguiding and make sure we’re still able to help girls and young women in the future. We now set our subscriptions amounts for the UK level on a rolling two-year basis, to help members plan ahead.

We are working creatively to diversify our income to help make us more financially sustainable. In 2021 this included developing the opportunity for people to regularly donate to Girlguiding, exploring higher value partnerships and extending our membership ages.

‘ This has been a thoroughly positive experience and I have gained so much – both in guiding and personally.’

Volunteer

12

Transforming our organisation

We launched a programme in 2021 to transform our culture, become more digital-focused and improve our processes to make Girlguiding sustainable for the future.

This programme is funded by the Postcode Children Trust. Changes will include a new digital learning platform, new HR and finance systems and improvements to our membership database to help us reshape how we work together. Digital

changes within the organisation are not without their challenges, such as accessibility or technical issues. These are things we are always working on solutions for, in order to best support our members. The long-term positive impact of these projects will be huge, improving the membership experience for girls and volunteers, how guiding is delivered and how we work to be a more sustainable organisation.

Looking forward

There’s no doubt it has been a difficult two years, but we are looking to the future with optimism and excitement. By the end of 2022 we aim to increase girls’ and young women’s voices and leadership both inside and outside of Girlguiding. We are hoping to welcome many volunteers on board, in order to ease capacity issues and to be able to provide girls with exceptional experiences. We want volunteers to know their time is valued and to be fulfilled in their roles.

We are looking forward to holding in-person celebration events once again, as well as international trips. We will continue to work on

reaching more girls and young women and ensuring Girlguiding is diverse and inclusive at all levels.

We are aware of the challenges of the external environment that we are operating in, for our members and staff. We will make positive changes in the ways we work, embracing the digital opportunities that have come with hybrid working and listening to staff and volunteers. Whatever the future holds, Girlguiding will work together as one team across the UK to give girls and young women brilliant experiences and opportunities for adventure.

Moving into 2022 will be a step towards the world’s ‘new normal’. While it’s not clear what that will be, we are confident that Girlguiding’s strategy, values and plans will support girls and young women through it. By the end of 2022 we want girls to be experiencing the best of guiding, we want to reach more young people than ever, and we want our volunteers to be thriving in their roles.

‘She was so thrilled and so proud to get her first badge!’

Parent of girl aged 4-7

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Structural information

Governing document and constitution

The Guide Association is incorporated by Royal Charter and is registered as a charity (charity registration number 306016, OSCR registration number SC038436) with its headquarters at 17-19 Buckingham Palace Road, London SW1W 0PT. A board of trustees manages and regulates the Association’s affairs. The constitution of Girlguiding’s council and the board of trustees, and the exercise of powers by the council and trustees, are set out in the byelaws to the Royal Charter.

The board of trustees has the following sub-committees: audit and risk, finance, nominations and governance, crisis and remuneration. Terms of reference for each group clarify their roles and responsibilities, their decision-making and consultation remit, and the requirements for them to exercise scrutiny and make recommendations to the board. The decision-making framework for both the sub-committees and the CEO and senior staff is laid down in the scheme of delegated authority, which the board of trustees reviews annually. In 2020 the board established a crisis committee with terms of reference to manage the impact and implications of Covid-19 for the organisation, and with authority for taking urgent decisions within agreed delegations. This remained in existence in 2021 although it met less frequently.

Organisation structure

Girlguiding within the UK is composed of charities and unincorporated associations and organised into geographical areas to provide support, lines of two-way communication and opportunities for young members, leaders and commissioners to make decisions and take responsibility. Each of the six regions of England and the three countries of Scotland, Ulster and Cymru has a voluntary position of chief commissioner, appointed by the chief guide. Each chief commissioner is normally chair of a board of trustees who is appointed according to the country or region constitution and is responsible for the administration of guiding in that country or region.

In addition to the UK, Girlguiding has a number of branch associations in UK overseas territories, and British Girlguiding Overseas also oversees units based in many other parts of the world.

Appointment and induction of trustees

The members of the board of trustees are appointed pursuant to the Royal Charter and byelaws. The chief guide and deputy chief guide are appointed in accordance with regulations proposed by the board and approved by Council. The chair and other trustees are appointed by the board and serve for a maximum of two terms of three years. A schedule of reviews is conducted for new and continuing trustees, and reappointment is subject to completion of a satisfactory review.

In all appointments the nominations and governance committee is involved in the process to ensure a breadth of professional background and experience suitable to direct the affairs of the charity. Trustees were appointed in 2020 and 2021 with consideration given to succession planning and a required balance of skills, knowledge and diversity, consistent with Girlguiding’s strategy.

There are established procedures for the induction of each trustee to ensure that they are aware of the responsibilities of a trustee and the ways of working within the charity. There is a rolling programme of training and development for trustees and the board. All trustees are required to take part in regular group trustee training sessions. Trustees are also invited, where required, to attend specialist one-off training sessions on aspects of their role offered by sector training organisations.

The board of trustees of the charity

(who served during the financial year and/or in the period up to the approval of the report and accounts)

Chair of the Board of Trustees Catherine Irwin MBE

Chief Guide Amanda Medler MBE

Deputy Chief Guide Julie Bell

Chair of the Finance Committee Elizabeth Dymond CBE

Alison Hampton Della Salway (until 31 January 2022) Hannah Moran Helen Shreeve (until 30 June 2021) Jaki Booth (until 31 January 2021) Kirtbir Chahal Selina Armitt Su Hassall (until 31 January 2021) Supriya Sobti

From 1 February 2021: Deborah O’Neill Jill McLaughlin Mary Agbesanwa Sue Parker-Tantush

From 1 February 2022: Amrita Aurora

The Guide Association’s key management personnel Chief Executive Angela Salt OBE

Finance and Commercial Director Richard Antcliffe

Marketing, Communications and Fundraising Director Amanda Azeez

Operations/Membership Services Director Jonathan Whitehead (until 31 December 2021) Rachael Bayley (from 17 January 2022) Interim – Emily Hughes (until 31 January 2022)

Operations Director Jonathan Whitehead (until 31 December 2021)

Resources, People and Technology Director Joanne Smithson

Strategy and Transformation Director Berenice Levenez

Professional advisors and consultants

The professional advisors and consultants have been as follows:

Bankers

National Westminster Bank Plc, 169 Victoria Street, London SWE1 5BT

Fund managers CCLA, Senator House, 85 Queen Victoria Street, London EC4V 4ET

Newton Investment Management Limited, BNY Mellon Centre, 160 Queen Victoria Street, London EC4V 4LA

Auditors

Moore Kingston Smith, 6th Floor, 9 Appold Street, London EC2A 2AP

Legal consultants

Bates Wells, 10 Queen Street Place, London EC4R 1BE

Principal place of business 17-19 Buckingham Palace Road London SW1W 0PT

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Statement of the trustees’ responsibilities

The trustees are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Charity law requires the board of trustees to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the group and parent charity and of the incoming resources and application of resources of the group and parent charity for the year.

In preparing those financial statements the trustees are required to:

The board of trustees is responsible for keeping proper accounting records that are sufficient. These must show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent charity. They enable them to ensure that the financial statements comply with the Charities Act 2011 and the Charities and Trustee Investment (Scotland) Act 2005, regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and the regulations made thereunder. They are

also responsible for safeguarding the assets of the group and parent charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The board of trustees is responsible for the maintenance and integrity of the financial information included on the charity’s website. Legislation in the UK governing the preparation and dissemination of the financial statements and other information included in annual reports may differ from legislation in other jurisdictions.

Notes

The Guide Association and public benefit

‘Girlguiding’ is an operating name of The Guide Association which is incorporated/governed by Royal Charter, and is a registered charity in both England and Wales (number 306016) and Scotland (OSCR SC038436).

The charity’s trustees have a duty to report on the charity’s public benefit in the annual report. The benefit that the charity brings to girls and young women, their community and the wider world is explicit in our charitable purpose.

Our charitable purpose

To promote the education of girls and young women to help them develop emotionally, mentally, physically and spiritually so they can make a positive contribution to their community and the wider world.

It is also reflected clearly in Girlguiding’s vision and mission, which are a fresh expression of the charity’s purpose and direction.

Our vision

An equal world where all girls can make a positive difference, be happy, safe and fulfil their potential.

Our mission

Through fun, friendship, challenge and adventure we empower girls to find their voice, inspiring them to discover the best in themselves and to make a positive difference in their community.

Our Promise

Central to Girlguiding is the Promise: the words that every girl and young woman joining the charity uses to express their undertaking to be the best that they can be through guiding, and to give back to their community through their involvement in the movement. This is in itself a truly grassroots expression of the charity’s public benefit at work.

I promise that I will do my best: To be true to myself and develop my beliefs, To serve the Queen and my community, To help other people and To keep the (Brownie) Guide Law.

Public benefit in 2021

The pages of this report detail the framework that the trustees have adopted to maximise benefit to Girlguiding’s members, their communities and the world beyond. We have referred to the Charity Commission’s general guidance on public benefit in setting our strategic plan. Following the adoption of Girlguiding’s strategy in 2019, the trustees consider

how planned activities contribute to the aims and objectives against the following strategic priorities:

We have also done further scoping and planning on how we can improve our sustainability and efficiency.

2021 was the first implementation year of our strategy, as 2020 was envisaged as a transition year marking the start of a new planning and development cycle to implement the strategy approved in September 2019.

The Covid-19 crisis had a significant impact on our social and economic environment and in turn on girls (members and non-members), Girlguiding volunteers and staff, partners and funders at a national and local level. To ensure we continued to deliver public benefit, Girlguiding responded to the crisis by providing an immediate and urgent response, adapting and building short-term resilience, planning and supporting the return to face-to-face guiding where possible and providing a blended offer of guiding which included online meetings. 2021 has seen the start of our Covid-19 recovery.

15

Notes

Environmental statement

Girlguiding seeks to create a culture in which environmental considerations are integrated into all policy decisions and business activities across the Association. Girlguiding is taking steps to reduce any negative impact of our activities on the environment. This includes initiatives to increase recycling; use sustainable packaging and alternatives to single-use plastic; and increase our energy efficiency. Through our programme and advocacy we offer girls opportunities to better understand environmental issues and make positive decisions to live more sustainably.

Risk statement

Girlguiding has implemented a robust risk management framework to ensure that significant risks that may impact on the strategic objectives or the business plan are identified and mitigated. Risks are reviewed quarterly by risk owners to ensure they reflect the current risk environment and new and planned mitigations are identified. We have agreed risk appetite statements which are reviewed on an annual basis by the audit and risk committee and board of trustees. The board has delegated the responsibility for managing risks to the audit and risk committee, although they remain ultimately responsible for oversight of the identification and management of risk. The executive risk management board is responsible for ensuring risks are managed in line with Girlguiding’s agreed methodology.

The trustees consider that the principal risks the organisation faces are:

Serious incidents

Serious incidents are notified through a framework for reporting. Incidents are logged, scrutinised and assessed by senior staff and the audit and risk committee for meeting the threshold for reporting to the Charity Commission. We have policies on safeguarding and whistleblowing (the latter covering a broad area including

fraud and misconduct; anti-bullying and harassment; health, safety and welfare; and digital safeguarding).

Behind the reporting of incidents lies a series of policies, frameworks and processes for notifying and managing incidents, depending on their nature. This includes having in place dedicated teams for managing safeguarding, compliance and complaints; mandatory training on key areas to include safeguarding; a case management system for all safeguarding incidents supported by the safeguarding team (and a safeguarding panel of experts to bring further scrutiny and advice to complex cases); a process for receiving disclosures, allegations and concerns; and a code of conduct for volunteers and staff.

Organisational structure and decision-making

The board of trustees has overall responsibility for the decisions of the Association and has delegated its authority in specific areas to the chief executive and her senior managers, and to the following sub-committees of the board, under an approved scheme of delegated authority and committee terms of reference:

The board set up a crisis committee in 2020 to manage the impact and implications of Covid-19 on Girlguiding which continued in existence through 2021. There is also an operational board, comprising senior volunteers who address key operational issues; lead and direct the delivery of guiding within countries and regions; and feed into the work of the sub-committees and board.

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Notes

Charity Governance Code

The board of trustees is committed to good governance and to its own and the charity’s continuous improvement in delivering its purpose most effectively for the public benefit. It is clear about the charity’s aims and seeks to ensure that these are being delivered effectively and sustainably, keeping under review the Code’s recommended practice and seven principles of organisational purpose: leadership; integrity; decision-making; risk and control; board effectiveness; equality, diversity and inclusion; and openness and accountability.

The board strives for best practice in accordance with the Charity Governance Code, which was refreshed in 2020. Many of the measures it takes in achieving this are addressed in this report (for example board effectiveness, including performance review, is addressed in the section on appointment, induction and review of trustees; decision-making, risk and control in the risk section; and diversity and inclusion in the next section). As part of a revised board performance review process implemented in 2020, a board review is conducted annually, with a triennial external review to include a fresh self-assessment against the Code. The board undertook a triennial review in 2021, recommendations from which will inform the board’s annual workplan. The board is committed to ongoing review against the Code principles.

Board diversity

The board of trustees recognises its responsibility to champion diversity and inclusion throughout Girlguiding as part of our goal to be an inclusive and impactful organisation. The board’s diversity and inclusivity statement, which is published on our website, sets out how it seeks to fulfil this responsibility by:

During 2021 trustees participated in a series of externally facilitated workshops as part of the consultative approach to developing Girlguiding’s diversity and inclusion strategic plan, and also as part of the board development programme to

explore their understanding of inclusion and diversity. All trustees take part in mandatory inclusion and diversity training as part of their induction.

The Girlguiding diversity and inclusion strategic plan was launched in 2021. The board statement and objectives will be reviewed in line with the approved plan and with the 2020 update to the Charity Governance Code’s Equality, Diversity and Inclusion Principle.

In line with its commitment to build a more diverse board, the trustee recruitment process was modified to attract and recruit a more diverse pool of candidates including young people, people of colour, LGBT+ people and people of minority faiths or no faith. Four new trustees were appointed in February 2021, and one appointed in February 2022, bringing a range of skills, experience and diversity to the board.

Volunteers

The Association is grateful for the dedication and support of our volunteers across the countries and regions in which Girlguiding operates, who give their time and energy to help our young members achieve their potential, make a difference and be their best.

Setting pay at Girlguiding

As a good employer, every three years Girlguiding undertakes a comprehensive and holistic review of its salary and benefits package, evaluating all jobs – including that of the chief executive – and benchmarking with charity sector salary and benefits data. The results of our 2019/20 review, with oversight from our trustee remuneration committee, were implemented in Q1 2021. Our new policy and salary structure means we no longer negotiate salaries, so pay is equal and transparent across our organisation. Additionally, we annually review charity sector salary data and revise our pay scales accordingly, to maximise the potential of our package to attract and retain staff with the right skills and experience. We do this with due regard to budget, transparency and equity.

Girlguiding is passionate about helping to build a society where all girls have equal opportunities to fulfil their potential. We believe tackling differences in pay between people of different ethnicities (the ‘ethnicity pay gap’) is an important step towards this.

With this in mind, we were pleased to publish our second ethnicity pay gap. While ethnicity pay gap reporting is not yet a legal requirement for UK employers, we see it as a key part of our commitment to diversity and inclusion. We can report that overall Girlguiding has a small ethnicity pay gap in favour of white employees. The difference of 31 pence hourly pay at the mean average is because 14.3% of the roles held by ethnic minority staff, compared with 22% of the roles held by white staff, attract an on-call allowance. Attraction of an on-call allowance is determined by the requirements of the individual role. It is applied before we advertise a role - it has nothing to do with the person in the role. We also have a small gap at the median in favour of ethnic minority employees of 54 pence hourly pay difference.

We were also pleased to share our annual gender pay gap – which shows that Girlguiding has a very small gender pay gap at the mean of 4.8% in favour of men employees, £1.02 hourly pay difference. This figure is significantly below the average gender pay gap in the UK of 15.4% for the same period, as reported by the Office for National Statistics. A key reason for this small gap is that among Girlguiding’s top quarter of earners, 58% of the roles held by men currently attract a market premium. We are obliged to pay a premium to make sure the salary attracts candidates with the right skills and experience for specialist roles. In comparison, 16.7% of Girlguiding’s roles currently held by women in the top quartile attract a market premium. The decision to offer a market premium happens before we advertise a role - it has nothing to do with the person in the role. The vast majority of our top 25% of earners are women (42 women compared to 12 men).

17

Notes

Fundraising statement

At Girlguiding we want to help more girls to learn new skills, make friends, have adventures and grow in confidence. We simply wouldn’t be able to do this without the commitment of our valued supporters. When you give to Girlguiding you’re making a big difference to the lives of girls and young women.

We are committed to responsible fundraising practices. We follow the Fundraising Code of Practice, we are registered with the Fundraising Regulator and we have signed up to the Fundraising Promise, which means our fundraising activity will always be legal, open, honest and respectful.

At Girlguiding we endeavour to make all reasonable efforts to ensure the ongoing compliance of third parties with the Fundraising Code of Practice and the law. The work we undertake with commercial participators is governed by a contract which sets out the obligations of the parties involved. Similarly, all work with agencies that process responses to campaigns, print campaigns and mail out campaigns on our behalf is governed by a contract. We do not currently conduct any work with professional fundraisers or carry out door-to-door, street or telephone fundraising.

We take our responsibility towards our donors very seriously. We aim to provide a positive experience and deliver meaningful and personalised communication to them. We strongly believe that no one should ever feel pressured into giving, and we take steps to ensure that the vulnerable are protected. We will not contact anyone unless they have requested or consented to receiving fundraising communications. Donors can opt out of receiving fundraising or any other communications at any time. We will never sell, swap or share their data.

It is our aim for all those donating to Girlguiding to have an extremely positive experience. However, we recognise that there may be times when supporters are not happy with their experience. In 2021 we received zero complaints. However, when we do receive them, we are committed to investigating complaints and resolving them swiftly. If anyone is unsatisfied with their experience, we would like to hear about it. Feedback enables us to improve our fundraising service.

Girlguiding would like to thank the following partners for their generous support in 2021:

We would also like to thank the following supporters:

18

Review of financial position

The financial statements annexed to this report are those of the Association’s headquarters and reflect the activities it undertakes on behalf of the Association as a whole. Countries and regions, counties, divisions, districts and units are separate organisations and are responsible for their own finances.

The statement of financial activities

Incoming and outgoing resources for the year are detailed in the statement of financial activities, together with net gains or losses on investments. These are shown separately for the Association’s unrestricted funds, which may be used at the discretion of the board of trustees, and the Association’s restricted funds, which must be spent in accordance with the donors’ wishes.

Overview of 2021

Covid-19 continued to impact on our income and expenditure during the course of 2021.

Net movement in funds for the year amounted to a surplus of £1.4 million (2020: £3.9 million deficit). This includes gains on investments of £1.9 million (2020: losses of £3.7 million). Postcode Children Trust made a grant of £2.6m (2020: £2.5 million lottery income).

Total funds carried forward at 31 December 2021 amounted to £52.5 million (2020: £51.1 million), of which the vast majority are tied up in fixed assets and property, and are being used either operationally to enable charitable activity, or are deriving an income that helps to keep the subscription levy as low as possible.

Income and expenditure

Income

Total income amounted to £24.8 million (2020: £19.5 million): an increase of 27%.

The income increased by £5.3 million in the year. The main contributors were the £3.7 million increase in grants and donations in kind, the key element of which was the £2.9m grant from the DCMS’s youth covid-19 fund. The income from our trading activities increased by £2.9 million and our activity centre income saw an improvement of £1.1 million compared to 2020. These increases helped to absorb the reduction across subscription, investment and other income.

Expenditure

Total expenditure was £25.2 million (2020: £19.7 million): an increase of 28%.

Cost of raising funds was £6.6 million (2020: £4.5 million) with the increase resulting primarily from the increased level of throughput in our trading activities.

Charitable expenditure increased significantly to £18.6 million (2020: £15.2 million). The increase of £3.4 million was on projects, Covid-19 recovery grants and gifts in kind from restricted and designated funds.

Balance sheet

Investment movements

A net gain on investments of £1.9 million was generated in 2021 (2020: loss of £3.7 million). This was mainly due to the gain on revaluation of investment property.

Investment policy

Girlguiding holds two different types of investments: investment property and financial investments.

The Guide Association seeks to select investment managers who demonstrate a proactive environmental, social and governance (ESG) approach with particular emphasis on governance, supporting gender diversity and promoting development of women in leadership roles. The Guide Association will regularly review the overarching ethical approaches of fund managers of pooled funds to ensure they support or at least do not undermine the above proactive ESG approach.

Girlguiding’s investment objective is to preserve capital, in real terms, while providing liquidity for most eventualities and a source of capital for future growth opportunities. While equities are volatile year on year, over a five-year period they typically outperform inflation. Performance is benchmarked against (a) movements in the FTSE 100 index and (b) the fund’s own weighted combined benchmark.

While Girlguiding seeks to produce an acceptable level of financial return, this is always contained within an accepted pre-identified risk appetite. The key risk to long-term reserves is inflation, so assets are invested to mitigate its effects over the longer term. Capital volatility in the short term is a feature of such investments, to be offset by greater average returns over the medium term, and is therefore accepted.

The conversion of part of the headquarters building to an investment property in 2015 provides rental income which helps to fund day-to-day running costs and to fund strategically important revenue and capital projects in the future. The investment property has been revalued to £29.6 million.

19

Review of financial position (continued)

The Association also holds financial investments as an important part of our reserves. Professional fund managers are used to manage the funds and their performance is reviewed regularly by the finance committee. Performance is benchmarked against appropriate performance indices. Total unrestricted financial investments were valued at £4.8 million on 31 December 2021 (2020: £4.2 million).

Tangible fixed assets

The Association holds various tangible fixed assets to support its activities. These are the headquarters building, the trading service premises and the activity centres. A total of £0.1 million was spent on fixed assets in the year.

Designated funds

The Association holds a number of designated funds, totaling £39.8 million (2020: £41.6 million). The specific uses of the funds and how they will meet our needs are detailed in note 20.

Financial statements for 2021

The annual financial statements for 2021 are annexed to this report and include a report by the Association’s auditors, Moore Kingston Smith LLP. The financial statements comply with current statutory requirements and with the requirements of the Association’s Royal Charter, and were approved by the board of trustees at its meeting on 7 June 2022. They are to be submitted to the Association’s annual general meeting for adoption.

Reserves

Free reserves represent the working capital of the Association, available to support short- and medium-term objectives and to safeguard against unexpected decreases in income. Charity Commission guidance defines free reserves as ‘income which becomes available to the charity and is to be expended at trustees’ discretion in furtherance of any of the charity’s objectives, but is not yet spent, committed or designated’. They exclude assets not freely available to spend on the charity’s purposes – its tangible and intangible fixed assets and the investment property, an asset let on a lease for long-term financial return.

The finance committee has examined the needs and challenges faced by the Association in both the short and the medium term along with relevant financial forecasts and has formulated a policy to meet those needs. This policy was recently reviewed, updated and approved by the board of trustees and requires target free reserves to be maintained at between £6 million and £12 million, which is indicative of c.3 and c.6 months’ total expenditure, of which around half (ie between £3 million and £6 million) should be held in cash and deposits. The level of free reserves at the balance sheet date was £10.5 million: within the policy requirement (2020: £7.2 million and within the policy requirement).

Approval of the annual report and the financial statements

This report was approved by the board of trustees at its meeting on 7 June 2022 and the chair of the board of trustees was authorised to sign the report. The chair of the board of trustees and the chair of the finance committee were authorised to sign the annual financial statements on its behalf.

Chair of the Board of Trustees 7 June 2022

Girlguiding continues to face financial challenge and uncertainty as it recovers from the impact of the pandemic.

20

Independent auditor’s report to the trustees and members of The Guide Association

Opinion

We have audited the financial statements of The Guide Association for the year ended 31 December 2021 which comprise the Group and Charity Statement of Financial Activities, the Group and Parent Charity Balance Sheets, the Group Cash Flow Statement 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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charity and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the trustees’ annual report.

We have nothing to report in respect of the following matters where the Charities Act 2011 or the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 14, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine 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 and parent charity’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 parent charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

21

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group and parent charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or parent charity to cease to continue as a going concern.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charity.

Our approach was as follows:

known instances of non-compliance or suspected non-compliance with laws and regulations.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation. or through collusion.

Use of our report

This report is made solely to the charity’s members, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011 and to the charity’s trustees, as a body, in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the charity’s members and trustees those matters which we are required to state to them in an auditor’s report addressed to them and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charity and charity’s members as a body, and the charity’s trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Stickland (Senior Statutory Auditor)

Date: 7 June 2022

6th floor, 9 Appold Street, London EC2A 2AP

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

22

Consolidated statement of financial activities

For the year ended 31 December 2021

General Designated Restricted Total General Designated Restricted Total
funds funds funds 2021 funds funds funds 2020
Notes
£’000		 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Income from:
Donations, legacies 2
5,803		 257 2,962 9,022 1,427 2,572 1,287 5,286
and grants
Charitable activities:
Subscriptions 5,439 - - 5,439 7,021 - - 7,021
Training & activity 1,595 - - 1,595 487 - - 487
centres
Events 3
83		 - - 83 195 - - 195
Publications - - - - 6 - - 6
Trading activities 4
6,590		 - - 6,590 3,699 - - 3,699
Investments 5
1,571		 - 20 1,591 1,829 - 19 1,848
Other 6
455		 - - 455 944 - - 944
Total income 21,536 257 2,982 24,775 15,608 2,572 1,306 19,486
Expenditure on:
Raising funds 7
6,587		 17 - 6,604 4,483 - - 4,483
Charitable activities 8
12,251		 3,218 3,119 18,588 12,734 1,654 808 15,196
Total expenditure 18,838 3,235 3,119 25,192 17,217 1,654 808 19,679
Sub-total
2,698		 (2,978) (137) (417) (1,609) 918 498 (193)
Net gains/(losses) 13
561		 1,200 102 1,863 338 (4,100) 44 (3,718)
on investments
Net income/ 3,259 (1,778) (35) 1,446
(1,271)		 (3,182) 542 (3,911)
(expenditure)
Transfers between funds 21/22
(29)		 29 - - (39,981) 39,981 - -
Net movement in funds 3,230 (1,749) (35) 1,446
(41,252)		 36,799 542 (3,911)
Reconciliation
of funds:
Total funds 7,231 41,582 2,253 51,066 48,483 4,783 1,711 54,977
brought forward
at 1 January 2021
Total funds 10,461 39,833 2,218 52,512
7,231		 41,582 2,253 51,066
carried forward
at 31 December 2021

All gains and losses recognised in the year are included in the statement of financial activities.

All amounts arise from continuing activities.

The notes to the financial statements form part of these accounts.

23

Charity statement of financial activities

For the year ended 31 December 2021

General Designated Restricted Total General Designated Restricted Total
funds funds funds 2021 funds funds funds 2020
Notes
£’000		 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Income from:
Donations, legacies 2
5,766		 257 2,962 8,985 1,420 2,572 1,287 5,279
and grants
Charitable activities:
Subscriptions 5,439 - - 5,439 7,021 - - 7,021
Training & activity 1,595 - - 1,595 487 - - 487
centres
Events 3
83		 - - 83 195 - - 195
Publications - - - - 6 - - 6
Investments 5
1,571		 - 20 1,591 1,829 - 19 1,848
Other 6
125		 - - 125 423 - - 423
Donation from 2,034 - - 2,034 1,029 - - 1,029
subsidiary
Total income 16,613 257 2,982 19,852 12,410 2,572 1,306 16,288
Expenditure on:
Raising funds 7
1,646		 17 - 1,663 1,201 - - 1,201
Charitable activities 8
12,269		 3,218 3,119 18,606 12,818 1,654 808 15,280
Total expenditure 13,915 3,235 3,119 20,269 14,019 1,654 808 16,481
Sub-total
2,698		 (2,978) (137) (417) (1,609) 918 498 (193)
Net gains/(losses) 13
561		 1,200 102 1,863 338 (4,100) 44 (3,718)
on investments
Net income/ 3,259 (1,778) (35) 1,446 (1,271) (3,182) 542 (3,911)
(expenditure)
Transfers between
funds		 (29) 29 - - (39,981) 39,981 - -
Net movement 3,230 (1,749) (35) 1,446 (41,252) 36,799 542 (3,911)
in funds
Reconciliation
of funds:
Total funds 7,231 41,582 2,253 51,066 48,483 4,783 1,711 54,977
brought forward
at 1 January 2021
Total funds 10,461 39,833 2,218 52,512 7,231 41,582 2,253 51,066
carried forward
at 31 December 2021

All gains and losses recognised in the year are included in the statement of financial activities.

All amounts arise from continuing activities.

The notes to the financial statements form part of these accounts.

24

Consolidated balance sheet

As at 31 December 2021

2021 2020
Notes £’000
£’000		 £’000 £’000
Fixed assets
Intangible fxed assets 11 601 929
Tangible fxed assets 12 6,920 7,124
Investments - property 13a 29,600 28,400
Investments - listed 13b 5,665 5,002
Current assets 42,786 41,455
Stocks 14 1,480 2,308
Debtors 15 1,276 588
Short-term bank deposits 16 12,110 10,766
Cash at bank and in hand 317 223
Current liabilities 15,183 13,885
Creditors due within one year 17 (3,078) (3,028)
Net current assets/(liabilities) 12,105 10,857
Long-term liabilities
Creditors due after one year 18 (2,150) (958)
Provisions for liabilities and charges 19 (229) (288)
Net assets 52,512 51,066
Unrestricted funds 20
Designated funds 39,833 41,582
General funds 10,461 7,231
50,294 48,813
Restricted funds 21 2,218 2,253
Total funds 22 52,512 51,066

Approved and authorised by the Board of Trustees on 7 June 2022 and signed on their behalf by:

Catherine Irwin Chair of the Board of Trustees

Elizabeth Dymond Chair of Finance Committee

The notes to the financial statements form part of these accounts.

25

Charity balance sheet

As at 31 December 2021

2021 2020
Notes £’000
£’000		 £’000 £’000
Fixed assets
Intangible fxed assets 11 601 929
Tangible fxed assets 12 6,920 7,124
Investments - property 13a 29,600 28,400
Investments - listed 13b 5,665 5,002
Investments - subsidiary 13c 150 150
Current assets 42,936 41,605
Stocks 14 77 58
Debtors 15 3,233 1,833
Short-term bank deposits 16 8,625 10,126
Cash at bank and in hand 272 198
Current liabilities 12,207 12,215
Creditors due within one year 17 (2,402) (2,466)
Net current assets/(liabilities) 9,805 9,749
Long-term liabilities
Provisions for liabilities and charges 19 (229) (288)
Net assets 52,512 51,066
Unrestricted funds 20
Designated funds 39,833 41,582
General funds 10,461 7,231
50,294 48,813
Restricted funds 21 2,218 2,253
Total funds 22 52,512 51,066

Approved and authorised by the Board of Trustees on 7 June 2022, and signed on their behalf by:

Catherine Irwin Chair of the Board of Trustees

Elizabeth Dymond Chair of Finance Committee

The notes to the financial statements form part of these accounts.

26

Consolidated statement of cash flow

For the year ended 31 December 2021

2021 2020
£’000 £’000 £’000 £’000
Cash fows from operating activities:
Net cash provided by/(used in) operating activities (1.) (1,415) (1,586)
Cash fows from investing activities:
Investment income and interest received 1,591 1,848
Payments to acquire intangible fxed assets (114) (101)
Payments to acquire tangible fxed assets (74) (90)
Sale/(purchase) of fxed asset investments - 3,702
Cash fows from fnancing activities: 1,403 5,359
CBILS loan receipt 1,450 1,000
1,450 1,000
Change in cash and cash equivalents in the year (2.) 1,438 4,773
Notes to the statement of cash fow
1. Reconciliation of net income/expenditure to net
cash fow from operating activities		 2021
£’000		 2020
£’000
Net movement in funds for the year (as per the SOFA) 1,446 (3,911)
Adjustments for:
(Gains)/losses on investments (1,863) 3,718
Investment income (1,591) (1,848)
Donated tangible assets (231) _- _
Amortisation charges 396 365
Depreciation charges 554 532
(Increase)/decrease in stocks 828 (921)
(Increase)/decrease in debtors (688) 896
Increase/(decrease) in creditors and provisions (266) (417)
(2,861) 2,325
Net cash provided by/(used in) operating activities (1,415) (1,586)
Change Change
2. Analysis of the balances of cash as shown 2021 in year 2020 in year 2019
in the balance sheet £’000 £’000 £’000 £’000 £’000
Cash at bank and in hand 317 **94 ** 223 (109) 332
Current investments (less than three months) 12,110 1,344 10,766 4,882 5,884
Total cash and cash equivalents 12,427 1,438 10,989 4,773 6,216

27

Consolidated statement of cash flow

For the year ended 31 December 2021

At 1 January
2021		 Cashfows Other non-cash
changes		 At 31 December
2021
3. Net debt £’000 £’000 £’000 £’000
Cash and cash equivalents
Cash at bank and in hand 223 94 - 317
Current investments 10,766 1,344 - 12,110
Fixed asset listed investments 5,002 - 663 5,665
15,991 1,438 663 18,092
Less: Borrowings
Debt due within one year - (150) (150) (300)
Debt due after one year (958) (1,300) 108 (2,150)
15,033 (12) 621 15,642

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Notes to the financial statements

For the year ended 31 December 2021

1. Accounting policies

These are the financial statements of the Association’s central organisation and reflect the activities it undertakes on behalf of the Association as a whole. Countries and regions, counties, divisions, districts and units are responsible as separate charities for their own finances. The principal accounting policies applied in the preparation of the financial statements are as follows:

(a) Basis of accounting

These financial statements have been prepared in accordance with ‘Accounting and Reporting by Charities’: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Charities Act 2011.

The financial statements are prepared in accordance with the historical cost convention except for the revaluation of certain fixed asset investments.

The Association constitutes a public benefit entity as defined by FRS102.

The financial statements are prepared in sterling which is the functional currency of the charity. Monetary amounts are rounded to the nearest whole £1,000, except where otherwise stated.

Going Concern

The trustees assess whether the use of going concern is appropriate ie whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.

(i) Unit meetings have now resumed face-to-face.

(ii) The Association’s Activity Centres have reopened and are offering their full range of activities.

(iii) The Association’s Trading company is now fully operational and the sales volumes have increased with the return to face to face Guiding.

(iv) We obtained further emergency finance for our Trading company from the Government’s Coronavirus Business Interruption Loan Scheme.

In making this assessment the trustees have considered the ongoing impact of Covid-19 and the charitable group’s revised forecasts and projections for income and expenditure, as well as long-term cash flow. These continue to be regularly monitored by directors and trustees. The Association holds significant reserves and has liquid assets in the form of investments which are readily available to convert into cash.

Based on the above, the trustees have concluded that there is a reasonable expectation that the charitable group has adequate resources to continue in operational existence for the foreseeable future. The charitable group therefore continues to adopt the going concern basis in preparing its financial statements.

(b) Basis of consolidation

The consolidated financial statements include the results of the Association and its subsidiary, The Guide Association Trading Service Ltd. All activities are consolidated on a line-by-line basis in the Statement of Financial Activities (SOFA). Accordingly, the Consolidated statement of financial activities reflects the incoming resources and resources expended of the Group and not the Association as an individual entity.

(c) Fund accounting – unrestricted funds

The Association’s unrestricted funds consist of funds which may be used for its purposes at its discretion. These comprise the general fund and various designated funds. The specific uses and needs to be met by the designated funds are detailed separately in note 20 to the financial statements.

(d) Fund accounting – restricted funds

The Association’s restricted funds consist of a number of different funds where the donor has imposed restrictions on their use which are legally binding. The accounting records separate those restricted funds from the unrestricted funds of the Association. A schedule of the movements on the various funds during the year is set out in note 21.

(e) Income

Income is recognised when there is evidence of entitlement, receipt is probable and the amount can be measured reliably. In particular:

(f) Basis of allocation or apportionment of expenditure

Expenditure during the year is analysed into the categories required by the SORP:

Note 8 to the financial statements provides an analysis of activities in furtherance of the Association’s objects according to function. Support costs reflect the Association’s overall establishment and communication costs allocated on an activity based apportionment. Governance costs are also allocated on an activity based apportionment. Cost of raising funds includes expenditure incurred on behalf of the Association in relation to investment manager fees, sponsorship and fundraising costs together with the operational costs of the trading subsidiary.

29

Notes to the financial statements

For the year ended 31 December 2021

(g) Investments

Investments are valued initially at cost and subsequently at market value within the financial statements. Realised and unrealised gains or losses on investments are accounted for in full within the particular fund to which the investment forms a part. The holdings of investments of certain restricted funds are merged and managed in an investment pool. The funds hold units in the investment pool which represent their share of the capital value of the investments plus any un-invested cash or debtors which exist at the year end. Investment properties are measured initially at cost and subsequently at fair value at the reporting date.

(h) Depreciation and amortisation

Depreciation and amortisation is provided on all tangible and intangible fixed assets (except land) on a straight-line basis to write off the cost of those assets over their estimated useful lives. No amortisation is provided on investment properties. The principal rates of depreciation are:

Tangible fixed assets

Intangible fixed assets

(i) Stocks

Stocks are valued at the lower of cost and net realisable value.

(j) Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with maturities of three months or less. Bank overdrafts are shown within borrowings in current liabilities.

(k) Debtors

Debtors are measured at their recoverable amounts.

(l) Creditors

Amounts due to creditors are measured at their settlement amount. Deferred income is recognised as the amount receivable as an advanced payment for goods or services that must be provided.

(m) Self-insured claims provision

Provision is made for the self-insured element of notified insurance claims on the basis of advice from the Association’s insurance brokers, and is measured at the best estimate of the settlement amount.

(n) Pensions

The Association operates a defined contribution pension scheme on behalf of its employees. The scheme is operated by Scottish Widows. The amount charged to the SOFA in respect of pension costs and other post-retirement benefits is the contributions payable in the period. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

(o) Employee benefits

The costs of any short term employee benefits are recognised as a liability and an expense. The costs of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the Association is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

(p) Operating leases

Rentals applicable to operating leases are charged to the SOFA over the period in which the costs are incurred.

(q) Heritage assets

The Association holds a vast written and photographic archive of the history of the Association, the value of which is in the information it contains for Association members and the public’s research. It is not possible to place a monetary value on this archive, therefore the asset is not recognised in the balance sheet of the Association. The Association has procedures in place to ensure that the asset is adequately preserved and maintained.

The archive was placed into storage during construction of the investment property and refurbishment of the office accommodation at the Association’s headquarters. A project is in progress to give consideration to accessibility of the

Archive and how this can be achieved, including relocating within the Girlguiding estate. The project team, including external consultants, are evaluating the condition of the archive and documenting options for further consideration as well as external funding opportunities.

(r) Critical accounting judgements and estimation uncertainty

In preparing the financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. The judgements and estimates considered by the trustees to have the most significant effect on amounts recognised in the financial statements relate to:

(i) whether the going concern basis appropriate, which is discussed in section (a) above;

(ii) the provision of self-insured claims, which is made on the basis of advice from the Association’s insurance brokers and is measured at the best estimate of the settlement amount;

(iii) the fair value of financial and property investments, which is made on the basis of advice from our investment managers and our external chartered surveyor and would be consistent with redeemed value if the asset were to be sold and;

(iv) the stock valuation and the need for the write down of slow moving stock.

The trustees do not consider there are any further critical judgements or key sources of estimation uncertainty requiring disclosure other then those already described within note 1.

30

Notes to the financial statements

For the year ended 31 December 2021

2. Donations, legacies General
funds		 Designated
funds		 Restricted
funds		 Total
2021		 General
funds		 Designated
funds		 Restricted
funds		 Total
2020
and grants £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Consolidated
Individual donations 41 - 65 107 49 - 95 144
Legacies and in memorial donations 15 26 80 121 237 - 27 264
Lottery income - - - - - 2,572 - 2,572
Grants 2,674 - 2,817 5,491 12 - 1,165 1,177
Government grants 3,073 - - 3,073 1,129 - - 1,129
Donated assets - 231 - 231 - - - -
5,803 257 2,962 9,022 1,427 2,572 1,287 5,286
Charity
Individual donations 41 - 65 107 49 - 95 144
Legacies and in memorial donations 15 26 80 121 237 - 27 264
Lottery income - - - - - 2,572 - 2,572
Grants 2,674 - 2,817 5,491 12 - 1,165 1,177
Government grants 3,036 - - 3,036 1,122 - - 1,122
Donated assets - 231 - 231 - - - -
5,766 257 2,962 8,985 1,420 2,572 1,287 5,279

In 2020, the government grants included furlough income and business support grants. In 2021, the income also includes the one off grant from the DCMS’s Youth Covid-19 Fund. No lotteries took place in 2021, however, the Postcode Children Trust made a one off award which is recorded within grant income.

In 2020, the Association received the net proceeds of lotteries held in line with note 1 (e), the income accounting policy. People’s Postcode Lottery was acting as the principal, and only net proceeds are recognised in the statement of financial activities. The net proceeds received are analysed as follows:

General Designated Restricted Total General Designated Restricted Total
funds funds funds 2021 funds funds funds 2020
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Consolidated and charity
Lottery Income
Ticket value - - - - - 8,038 - 8,038
Prize fund - - - - - (3,215) - (3,215)
Management fee - - - - - (2,251) - (2,251)
Net Lottery income - - - - - 2,572 - 2,572
General Designated Restricted Total General Designated Restricted Total
funds funds funds 2021 funds funds funds 2020
3. Events income £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Consolidated and charity
Community events 75 - - 75 194 - - 194
Other charity events 8 - - 8 1 - - 1
83 - - 83 195 - - 195

31

Notes to the financial statements

For the year ended 31 December 2021

General Designated Restricted Total General Designated Restricted Total
4. Trading income funds
£’000		 funds
£’000		 funds
£’000		 2021
£’000		 funds
£’000		 funds
£’000		 funds
£’000		 2020
£’000
Consolidated
Trading Service 6,356 - - 6,356 3,583 - - 3,583
Licence fees and royalties 234 - - 234 116 - - 116
6,590 - - 6,590 3,699 - - 3,699
General Designated Restricted Total General Designated Restricted Total
5. Investment income funds
£’000		 funds
£’000		 funds
£’000		 2021
£’000		 funds
£’000		 funds
£’000		 funds
£’000		 2020
£’000
Consolidated and charity
Distributions from listed investments 103 - 20 123 170 - 19 189
Interest on cash deposits 1 - - 1 15 - - 15
104 - 20 124 185 - 19 204
Investment property:
Rental Income 1,467 - - 1,467 1,644 - - 1,644
1,571 - 20 1,591 1,829 - 19 1,848

32

Notes to the financial statements

For the year ended 31 December 2021

General Designated Restricted Total General Designated Restricted Total
6. Other income funds
£’000		 funds
£’000		 funds
£’000		 2021
£’000		 funds
£’000		 funds
£’000		 funds
£’000		 2020
£’000
Consolidated
Corporate sponsorship 444 - - 444 521 - - 521
International trips sponsorship 11 - - 11 - - - -
Other - - - - 423 - - 423
455 - - 455 944 - - 944
Charity
Corporate sponsorship 15 - - 15 15 - - 15
International trips sponsorship 11 - - 11 - - - -
Other 100 - - 100 408 - - 408
125 - - 125 423 - - 423
Other Other
7. Cost of raising funds Staff
costs		 direct
costs		 Support
costs		 Total
2021		 Staff
costs		 direct
costs		 Support
costs		 Total
2020
(all unrestricted funds) £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Consolidated
Seeking donations, grants and legacies 326 24 104 454 370 19 - 389
Operating costs of trading company 1,077 3,328 536 4,941 1,022 1,840 420 3,282
Investment management costs - 8 - 8 - 8 - 8
Other - 1,201 - 1,201 - 804 - 804
1,403 4,561 640 6,604 1,392 2,671 420 4,483
Charity
Seeking donations, grants and legacies 326 24 104 454 370 19 - 389
Investment management costs - 8 - 8 - 8 - 8
Other - 1,201 - 1,201 - 804 - 804
326 1,233 104 1,663 370 831 - 1,201

33

Notes to the financial statements

For the year ended 31 December 2021

Other Other
Staff direct Support Total Staff direct Support Total
costs costs costs 2021 costs costs costs 2020
8. Charitable expenditure £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Consolidated
Charitable activities 9,581 5,680 3,327 18,588 8,651 3,004 3,541 15,196
9,581 5,680 3,327 18,588 8,651 3,004 3,541 15,196

In 2021, the expenditure on charitable activities was £18,588,000 of which £3,218,000 was from designated funds and £3,119,000 was from restricted funds. (2020: £15,196,000 of which £1,654,000 was from designated and £808,000 was from restricted funds).

With the onset of the pandemic at the time of the strategy launch, the progress on the new strategy was limited. In the early part of 2020 the work on the previous strategy was being completed.

On this basis, the analysis of expenditure on charitable activities would not have been useful and all costs were shown under one heading.

For 2021, the expenditure has been allocated across the four strands of the new strategy as follows:

Staff
costs
£’000
Other
direct
costs
£’000
Support
costs
£’000
Total
2021
£’000
Consolidated
Creating exceptional experiences for girls 4,310
3,810
1,852
9,972
Developing a rewarding volunteer experience 2,151
824
667
3,642
Being inclusive and impactful 1,336
468
356
2,160
Sustainable and effcient organisation 1,784
578
452
2,814
Total charitable expenditure - 2021 9,581
5,680
3,327 18,588
Total charitable expenditure - 2020 8,651
3,004
3,541 15,196

34

Notes to the financial statements

For the year ended 31 December 2021

9. Analysis of
support costs		 Charitable
expenditure
£’000		 Raising
funds
£’000		 Trading
operation
£’000		 Total
2021
£’000		 Charitable
expenditure
£’000		 Raising
funds
£’000		 Trading
operation
£’000		 Total
2020
£’000
Consolidated
Governance 31 1 17 49 79 - 19 98
Finance & legal 1,477 47 59 1,582 1,413 - 47 1,460
Insurance 388 12 18 419 554 - 26 580
Property management 361 11 116 488 245 - 106 351
Catalogues - - 190 190 - - 110 110
Information technology 742 23 135 901 985 - 112 1,097
Human resources 328 10 - 338 265 - - 265
3,327 104 536 3,967 3,541 - 420 3,961
Charity
Governance 31 1 - 32 79 - - 79
Finance & legal 1,477 47 - 1,524 1,413 - - 1,413
Insurance 388 12 - 400 554 - - 554
Property management 361 11 - 372 245 - - 245
Information technology 742 23 - 766 985 - - 985
Human resources 328 10 - 338 265 - - 265
3,327 104 - 3,431 3,541 - - 3,541
Auditor’s remuneration Total Total
Charity 19 22
Trading 15 14
Prior year under/(over) accrual (5) 7
Accountancy, tax and other services 17 13
46 56

Governance costs include £27,600 of auditor’s remuneration for the charity (2020: £48,500) of which costs of £14,845 are in respect of audit services (2020: £31,732). Further costs of £12,755 (2020: £8,375) are included in finance costs for non-audited services.

35

Notes to the financial statements

For the year ended 31 December 2021

Total 2021 Total 2020
10. Staff Numbers and Remuneration staff costs
£’000		 staff costs
£’000
Gross salaries and wages 8,961 8,338
Redundancy costs - 77
Employer's national insurance 901 860
Employer's pension contribution 607 578
10,469 9,853
2021 2020
The average number of employees in the year, calculated on a headcount basis, was: No. No.
275 280

Temporary staff engaged through employment agencies are not included in the above analysis.

For 2021, the headcount has been allocated across the four strands of the new strategy and fundraising as follows :

2021
No.
Creating exceptional experiences for girls 128
Developing a rewarding volunteer experience 46
Being inclusive and impactful 25
Sustainable and effcient organisation 31
Raising funds 45
Total 275
2021 2020
The number of employees whose emoluments exceeded £60,000 in the year were: No. No.
£60,001 - £70,000 10 6
£70,001 - £80,000 2 4
£80,001 - £90,000 5 -
£110,001 - £120,000 - 1
£120,001 - £130,000 1 -

The total remuneration for the year, including employer’s national insurance but excluding pensions, for the chief executive, were £138,000 (2020: £130,000).

Remuneration for key management personnel including the chief executive of the Association (as shown of page 13 of the report) totalled £660,000 (2020: £598,000).

Members of the board of trustees are not remunerated. Expenses reimbursed in the year for travel and out-of-pocket expenses amounted to £1,199 for 3 members (2020: £3,041 to 5 members).

The Association owns a long-leasehold let, which is available for the use of the chief guide team during their term of office. The Association pays the service and utility costs of the flat, which totalled £4,993 in the year (2020: £8,293).

36

Notes to the financial statements

For the year ended 31 December 2021

Assets under
11. Intangible fxed assets Software
£’000		 construction
£’000		 Total
£’000
Consolidated and charity
Cost
At 1 January 2021
Additions
Disposals
Transfer to tangible assets
Transfer between categories		 2,269
29
(110)
(46)
40		 44
85
-
-
(40)		 2,313
114
(110)
(46)
-
At 31 December 2021
Accumulated amortisation
At 1 January 2021
Provision for the year
Disposals		 2,182
1,384
396
(110)		 89
-
-
-		 2,271
1,384
396
(110)
At 31 December 2021 1,670 - 1,670
Net book value at 31 December 2021 512 89 601
Net book value at 31 December 2020 885 44 929

All assets are used for direct charitable purposes.

The transfer of assets to tangible corrects an error from 2020 where some tangible assets under construction were included in the intangible assets under construction category.

There is no impact on the depreciation or amortisation charges as these assets were brought into use in 2021.

Freehold land & Leasehold Fittings & Equipment
12. Tangible fxed assets buildings
£’000		 property
£’000		 vehicles
£’000		 Total
£’000
Consolidated and charity
Cost
At 1 January 2021 9,433 149 3,824 13,406
Additions 12 - 61 73
Donated assets 231 - - 231
Disposals - - (142) (142)
Transfer from intangible assets - - 46 46
Transfer between categories - - 16 16
At 31 December 2021 9,676 149 3,805 13,630
Accumulated depreciation
At 1 January 2021 3,893 80 2,309 6,282
Provision for the year 254 4 296 554
Disposals - - (142) (142)
Transfer between categories - - 16 16
At 31 December 2021 4,147 84 2,479 6,710
Net book value at 31 December 2021 5,529 65 1,326 6,920
Net book value at 31 December 2020 5,540 69 1,515 7,124

All assets are used for direct charitable purposes.

Prior to 2021, the Association’s activity centre at Glenbrook was leased to one of the counties. It ran the activity centre and was responsible for all repairs and fixed asset additions.

During 2021, the lease ended by mutual agreement and the additions made over the years were donated to the Association. The net book value of the assets donated has been shown as their cost to the Association.

The donation in kind is recognised as income within designated funds.

The transfer of assets from intangible assets corrects an error from 2020 where some tangible assets under construction were included in the intangible assets under construction category.

There is no impact on the depreciation or amortisation charges as these assets were brought into use in 2021.

The transfer between categories corrects an error from prior years between cost and depreciation.

37

Notes to the financial statements

For the year ended 31 December 2021

General Designated Restricted Total General Designated Restricted Total
13a. Investments - property funds
£’000		 funds
£’000		 funds
£’000		 2021
£’000		 funds
£’000		 funds
£’000		 funds
£’000		 2020
£’000
Consolidated and charity
Market value at 1 January - 28,400 - 28,400 32,500 - - 32,500
Transfer in the year (32,500) 32,500 - -
Net gain / (loss) on revaluation of - 1,200 - 1,200 - (4,100) - (4,100)
investment property
Market value at 31 December - 29,600 - 29,600 - 28,400 - 28,400

The freehold investment property comprising a hotel was valued at 31 December 2021 by an external valuer, Gerald Eve LLP, a regulated firm of chartered surveyors. The valuations were prepared in accordance with the requirements of the RICS valuation - global standards 2022, the national standards and guidance set out in the UK national supplement 2018 and the financial reporting standard applicable to the UK and Republic of Ireland (FRS102). The valuation of the property was on the basis of fair value, equated to market value, on the assumption of an investment. It was principally derived using the profits and investment methods valuation.

Following the easing of lockdowns and the increased availability of trading performance data and market evidence, the valuation for the year ended 31 December 2021 does not include the “material valuation uncertainty” as set out in VPS3 and CPGA 10 of the RICS Valuation - Global Standards which was included in their report for the year ended 31 December 2020.

Girlguiding has applied the revised standard in SORP (FRS102) that allows charities that rent property to group companies to report the property as fixed assets rather than an investment property. In the charity accounts, this applies to Broadheath which is rented to The Guide Association Trading Service Limited. It ceased to be treated as an investment property in 2018 when it had a carrying value of £1,500,000 comprising a cost of £200,000 and a revaluation gain of £1,300,000. To align with the group accounts it was transferred to tangible fixed assets as a fully depreciated asset with a cost of £200,000 and net book value of £nil.

General Designated Restricted Total General Designated Restricted Total
13b. Investments - listed funds
£’000		 funds
£’000		 funds
£’000		 2021
£’000		 funds
£’000		 funds
£’000		 funds
£’000		 2020
£’000
Consolidated and charity
Listed investments:
Market value at 1 January 4,203 - 765 4,968 7,567 - 721 8,288
Acquisitions at cost - - - - - - - -
Disposal proceeds - - - - (3,702) - - (3,702)
Net gain on revaluation of investments 561 - 102 663 56 - 44 100
Realised gain on redemption - - - - 282 - - 282
Market value at 31 December 4,764 - 867 5,631 4,203 - 765 4,968
Cash held for investment - - 34 34 - - 34 34
Portfolio value at 31 December 4,764 - 901 5,665 4,203 - 799 5,002
Historical cost at 31 December 3,707 - 673 4,380 3,707 - 673 4,380

The table below shows the asset allocation structure of the total investment portfolio.

General Designated Restricted Total General Designated Restricted Total
funds funds funds 2021 funds funds funds 2020
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
UK bonds and cash - - 34 34 - - 34 34
Pooled funds 4,764 - 867 5,631 4,203 - 765 4,968
Total 4,764 - 901 5,665 4,203 - 799 5,002

38

Notes to the financial statements

For the year ended 31 December 2021

13c. Investments - General Designated Restricted Total General Designated Restricted Total
subsidiary funds
£’000		 funds
£’000		 funds
£’000		 2021
£’000		 funds
£’000		 funds
£’000		 funds
£’000		 2020
£’000
Charity only
Investment in subsidiary		 150 - - 150 150 - - 150
Total value of Investments 150 - - 150 150 - - 150
General Designated Restricted Total General Designated Restricted Total
14. Stocks funds
£’000		 funds
£’000		 funds
£’000		 2021
£’000		 funds
£’000		 funds
£’000		 funds
£’000		 2020
£’000
Consolidated
Stocks for resale		 1,450 - - 1,450 2,295 - - 2,295
Consumable stocks 30 - - 30 13 - - 13
Market value at 31 December 1,480 - - 1,480 2,308 - - 2,308
Charity
Stocks for resale		 47 - - 47 45 - - 45
Consumable stocks 30 - - 30 13 - - 13
77 - - 77 58 - 58
15. Debtors due within General Designated Restricted Total General Designated Restricted Total
one year funds
£’000		 funds
£’000		 funds
£’000		 2021
£’000		 funds
£’000		 funds
£’000		 funds
£’000		 2020
£’000
Consolidated
Trade debtors		 644 - - 644 397 - - 397
Other debtors 12 - 17 29 3 - - 3
Prepayments and accrued income 2,510 - - 2,510 1,006 - 31 1,037
VAT 114 - - 114 - - - -
Bad debt provision (2,021) - - (2,021) (849) - - (849)
1,259 - 17 1,276 557 - 31 588
Charity
Trade debtors		 334 - - 334 302 - - 302
Amounts due from subsidiary 2,282 - - 2,282 1,336 - - 1,336
Other debtors 12 - 17 29 3 - - 3
Prepayments and accrued income 2,476 - - 2,476 965 - 31 996
VAT 114 - - 114 - - - -
Bad debt provision (2,002) - - (2,002) (804) - - (804)
3,216 - 17 3,233 1,802 - 31 1,833

Amounts due from the wholly owned subsidiary represent the balances on the donation for the year and the inter-company management charges.

management charges.
General Designated Restricted Total General Designated Restricted Total
16. Short-term bank deposits funds
£’000		 funds
£’000		 funds
£’000		 2021
£’000		 funds
£’000		 funds
£’000		 funds
£’000		 2020
£’000
Consolidated
Call accounts 8,203 2,749 1,158 12,110 9,366 - 1,400 10,766
8,203 2,749 1,158 12,110 9,366 - 1,400 10,766
Charity
Call accounts 4,718 2,749 1,158 8,625 8,726 - 1,400 10,126
4,718 2,749 1,158 8,625 8,726 - 1,400 10,126

39

Notes to the financial statements

For the year ended 31 December 2021

17. Creditors due within General Designated Restricted Total General Designated Restricted Total
one year funds
£’000		 funds
£’000		 funds
£’000		 2021
£’000		 funds
£’000		 funds
£’000		 funds
£’000		 2020
£’000
Consolidated
Trade creditors 1,096 - - 1,096 998 - - 998
Deferred income (see note 17a) 480 - - 480 305 - - 305
Bank loans 300 - - 300 - - - -
Accruals and other creditors 913 38 5 956 1,432 - - 1,432
Income tax and national insurance 246 - - 246 218 - - 218
VAT - - - - 75 - - 75
3,035 38 5 3,078 3,028 - - 3,028
Charity
Trade creditors 923 - - 923 817 - - 817
Deferred income (see note 17a) 383 - - 383 305 - - 305
Accruals and other creditors 807 38 5 850 1,051 - - 1,051
Income tax and national insurance 246 - - 246 218 - - 218
VAT - - - - 75 - - 75
2,359 38 5 2,402 2,466 - - 2,466
Balance Income Income Balance
17a. Analysis of movement
in deferred income		 1 January
2021
£’000		 released in
current year
£’000		 deferred in
current year
£’000		 31 December
2021
£’000
Consolidated
Deferred Income 305 (67) 242 480

Deferred income relates to hotel rent invoiced in advance at the end of the year and income received for Girlguiding events which take place in the following year.

Balance Income Income Balance
1 January released in deferred in 31 December
2021 current year current year 2021
£’000 £’000 £’000 £’000
Charity
Deferred Income 305 (67) 145 383

Deferred income relates to income received for Girlguiding events which take place in the following year.

18. Creditors due after General Designated Restricted Total General Designated Restricted Total
more than one year funds
£’000		 funds
£’000		 funds
£’000		 2021
£’000		 funds
£’000		 funds
£’000		 funds
£’000		 2020
£’000
Consolidated only
Later than 1 year and not later 1,950 - - 1,950 792 - - 792
than 5 years
Later than 5 years 200 - - 200 166 - - 166
2,150 - - 2,150 958 - - 958

During the year the wholly owned subsidiary applied for a loan of £1.5 million under the government backed Coronavirus Business Interruption Loan Scheme. The loan was drawn down on 9 August 2021. The final repayment is due six years after the loan was drawn and the interest rate is 3.0% over the Bank of England base rate.

During 2020 the wholly owned subsidiary applied for a loan of £1 million under the government backed Coronavirus Business Interruption Loan Scheme. The loan was drawn down on 1 September 2020. The final repayment is due six years after the loan was drawn and the interest rate is 2.78% over the Bank of England base rate.

40

Notes to the financial statements

For the year ended 31 December 2021

Balance Paid
Provision
Provision		 Balance
19. Provisions for liabilities and 1 January
2021		 during
the year
in the
year		 31 December
2021
charges (all unrestricted) £’000 £’000 £’000 £’000
Consolidated and charity
Self-insured claims provision		 288 (66) 7 229
Balance Net income/ Balance
20. Movement in
unrestricted funds		 1 January
2021
£’000

Income
£’000		 Expenditure
£’000		 investment
gains
£’000		 Transfers
£’000		 31 December
2021
£’000
Consolidated
General fund 7,231
21,536		 (18,838) 561 (29) 10,461
Total 7,231
21,536		 (18,838) 561 (29) 10,461
Designated funds
Investment property 28,400
-		 - 1,200 - 29,600
Intangible fxed assets 929
-		 (396) - 68 601
Tangible fxed assets 7,124
231		 (554) - 119 6,920
Buildings & equipment fund 1,175
-		 (84) - 127 1,219
Transformation fund 3,754
-		 (2,201) - (286) 1,267
Diversity, equality & inclusion fund 200
26		 - - - 226
Total 41,582
257		 (3,235) 1,200 29 39,833
48,813
21,793		 (22,072) 1,761 - 50,294

The balance on the general fund is equivalent to the free reserves following the transfer of the fixed assets into designated funds at the end of 2020. The trustees believe this improves the user’s understanding of the accounts.

The main uses of the designated funds are:

Investment property

This fund represents the current market value of the hotel owned by the Association.

Intangible and tangible fixed assets

These funds represent the current net book value of all intangible and tangible fixed assets owned by the Association.

All amortisation and depreciation is charged against these funds.

Buildings and equipment fund

This fund was created to ensure there are adequate funds available for renewal and replacement of the Association’s fixed assets. The funds are likely to be expended in the next three years.

Transformation fund

This fund supports Girlguiding’s strategy development. The fund is being spent as the projects within the strategy are developed with further funding and projects expected to take place in the coming three years.

Diversity, equality and inclusion fund

This fund was created during 2020 to support the Association’s work on diversity, equality and inclusion. During 2021, a diversity, equality and inclusion review was undertaken, and strategy launched. The fund will support the aims of the strategy over the coming years.

41

Notes to the financial statements

For the year ended 31 December 2021

Balance Net Balance
21. Movement in
restricted funds		 1 January
2021
£’000		 Income
£’000		 Expenditure
£’000		 investment
(gains)/losses
£’000		 Transfers
£’000		 31 December
2021
£’000
Restricted funds
Support for countries & regions 313 9 (9) 44 20 377
Support for UK guiding 1,575 2,836 (3,014) 35 (107) 1,325
Support for training & activity centres 364 137 (96) 23 87 515
Other funds 1 - - - - 1
2,253 2,982 (3,119) 102 - 2,218

Country and Region funds are used to generate income that is distributed to nine countries and regions in proportion to their membership. UK Guiding funds are used to provide grants to the membership, for example to set up new units, to support members with a disability and to provide travel bursaries. Training and Activity funds are used to provide grants to leaders attending trainings held at Foxlease and Waddow Hall and for the upkeep of our activity centre properties.

The transfers during the year correct the allocation of funds between the summary headings.

There were no transfers between individual restricted funds.

22. Analysis of net assets
between funds		 Tangible
fxed assets
£’000		 Intangible
fxed assets
£’000		 Investments
£’000		 Assets
£’000		 Liabilities
£’000		 Total
2021
£’000
Consolidated and charity
Restricted funds
Support for countries and regions
Support for UK guiding
Support for training & activity centres
Other funds		 -
-
-
-		 -
-
-
-		 369
301
231
-		 8
1,029
284
1		 -
(5)
-
-		 377
1,325
515
1
Total restricted funds - - 901 1,322 (5) 2,218
Unrestricted funds
General fund - - 4,764 11,112 (5,414) 10,461
Designated funds
Investment property
Fixed assets
Buildings & equipment fund
Transformation fund
Diversity, equality & inclusion fund		 -
6,920
-
-
-		 -
601
-
-
-		 29,600
-
-
-
-		 -
-
1,219
1,305
226		 -
-
-
(38)
-		 29,600
7,521
1,219
1,267
226
Total designated funds 6,920 601 29,600 2,749 (38) 39,833
Total unrestricted funds 6,920 601 34,364 13,861 (5,452) 50,294
Total funds 6,920 601 35,265 15,183 (5,457) 52,512

42

Notes to the financial statements

For the year ended 31 December 2021

22. Analysis of net assets
between funds (continued)		 Tangible
fxed assets
£’000		 Intangible
fxed assets
£’000		 Investments
£’000		 Assets
£’000		 Liabilities
£’000		 Total
2020
£’000
Consolidated and charity
Restricted funds
Support for countries and regions - - 305 8 - 313
Support for UK guiding - - 372 1,203 - 1,575
Support for training & activity centres - - 122 242 - 364
Other funds - - - 1 - 1
Total restricted funds - - 799 1,454 - 2,253
Unrestricted funds
General fund - - 4,203 7,302 (4,274) 7,231
Designated funds
Investment property - - 28,400 - - 28,400
Fixed assets 7,124 929 - - - 8,053
Buildings & equipment fund - - - 1,175 - 1,175
Transformation fund - - - 3,754 - 3,754
Diversity, equality & inclusion fund - - - 200 - 200
Total designated funds 7,124 929 28,400 5,129 - 41,582
Total unrestricted funds 7,124 929 32,603 12,431 (4,274) 48,813
Total funds 7,124 929 33,402 13,885 (4,274) 51,066

23. Financial commitments

At 31 December 2021 the Association had £nil capital commitments (2020: £nil).

At 31 December 2021 the Association’s subsidiary, The Guide Association Trading Service Limited, had entered into contracts of advance stock purchased with suppliers within the ordinary course of business worth £2,300,000 (2020: £2,760,000).

24. Operating lease commitments 2021
£’000		 2020
£’000
The minimum lease payments under non-cancellable operating leases for
land and buildings were as follows:
Not later than 1 year 71 48
Later than 1 year and not later than 5 years 113 -
184 48

43

Notes to the financial statements

For the year ended 31 December 2021

25. Contingent assets

The Charity has been advised of a number of legacies from which it will benefit. The Charity’s total estimated share is £100,000 (2020:£100,000). The value has not been included in the accounts as the conditions for recognition of the income have not been met.

26. Investment in subsidiary

The Association’s subsidiary, the Guide Association Trading Service Limited, operates the trading service and the shop activities.

The Guide Association owns the whole of the issued ordinary share capital, amounting to £150,000, of the Guide Association Trading Service Limited, a company registered in England (company number 04301686). As a wholly owned subsidiary, the Association is exempt, under Financial Reporting Standard No. 8, from reporting its transactions and balances with this entity. The subsidiary donates its profits to the Association under Gift Aid and therefore, the net movement in funds for the Association as an entity equals the new movement for the consolidated group.

During the year the Guide Association Trading Service Limited achieved sales of £6,374,000 (2020: £3,646,000). Of these sales £18,000 (2020: £63,000) were sales to the Association. The Association charges £160,000 (2020: £160,000) in management fees. The Guide Association Trading Service Limited achieved a net profit of £2,034,000 (2020: £1,029,000) and this was donated under Gift Aid to the Association. At the end of the year the Guide Association Trading Service Limited had £5,251,000 (2020: £3,006,000) of assets and £5,101,000 (2020: £2,856,000) of liabilities.

27. The Guide Association Trust Corporation

Guide Association Trust Corporation is a company limited by guarantee and incorporated under the Companies Act. It acts as custodian and holds land, freehold or leasehold buildings and investments on behalf of guiding units. It is funded by the Guide Association as a service to guiding units and the expenses are included in management and administration expenditure in these financial statements. Financial statements of the Guide Association Trust Corporation are available care of the Guide Association, 17-19 Buckingham Palace Road, London, SW1W 0PT.

28. Related party transactions

There are no related party transactions requiring disclosure (2020: nil) other than those with the Association’s subsidiary (as outlined in note 26).

29. Post balance sheet events

The company which leased our investment property went into administration in April 2022. The Association continues to work with its professional advisers in relation to the next steps.

Our vision

An equal world where all girls can make a positive difference, be happy, be safe and fulfil their potential. Our mission

Through fun, friendship, challenge and adventure we empower girls to use their voice – inspiring them to discover the best in themselves and to make a positive difference in their community.

Our values

Caring, challenging, empowering, fun, inclusive, inspiring.

@girlguiding girlguiding girlguidinguk girlguiding.org.uk

© Girlguiding 2022 Registered charity no. 306016 OSCR registered charity no. SC038436