ANNUAL REPORT - Volunteer abroad with Voluntary … world without poverty. VSO’S VISION 5...

2INTRODUCTION

2016/2017 ANNUAL REPORT

43 FINANCIAL STATEMENTS FINANCIAL STATEMENTS

MISSIONSince 1958 our mission has been to bring people together to fight poverty through the lasting power of volunteering.

Whether our work is with local communities or with governments, it is always grounded in our four values:

•Bythinkingglobally,wecanchangetheworld

•Progressisonlypossiblethroughworkingtogether

•Peoplearethebestagentsofchange

•Knowledgeisourmostpowerfultool.

VALUES

©V

SO/Sam

De

cke

rs©

VSO

/Gin

ny Lattu

l

A world without poverty.

VSO’S VISION


CONTENTS

INTRODUCTIONVision,MissionandValues

WelcomefromtheChairandChiefExecutive

STRATEGIC REPORTVSOataglance

GlobalProgrammes

-Education

-Health

-Livelihoods

-Coreapproaches

GlobalLeadership

GlobalEngagement

MonitoringandEvaluation

FinancialReview

RisksandUncertainties

Structure,GovernanceandManagement

Referenceandadministrativedetails

FINANCIAL STATEMENTSStatementoftrustees’responsibilities

Independentauditor’sreport

Consolidatedstatementoffinancialactivities

Balancesheets

Consolidatedcashflowstatement

Notes

THANK YOU

Tofindoutmoreaboutalloftheworkmentionedwithinthisreportpleasevisitouronlineannualreportatwww.vsointernational.org/annualreport

13 - 4

5 - 8

9 - 10 11 - 1213 - 1415 - 1617 - 1819 - 20

2123 - 3031 - 3435 - 4243 - 44

4546 - 47

484950

51 - 68

69

©V

SO/Sam

De

cke

rs

©V

SO

©V

SO/P

ete

r Cato

n©

VSO

/Pe

ter C

aton

©V

SO/Jac

k Ho

wso

n

©V

SO/A

bir A

bd

ullah

©V

SO/P

ete

r Cato

n

©V

SO/P

ete

r Cato

n

87 INTRODUCTION INTRODUCTION

MARIInaremotecommunityinKenyaIwasfortunateenoughtohavemetagroupofKenyanandUK

youthvolunteersontheInternationalCitizenServiceprogramme.Immediately,Iwasstruckbytheenergyandenthusiasmoftheseyoungpeople.Ithenheardabouttheinnovativeworktheyaredoingtopromoteinclusion,particularlyforthosewithhearingproblems,anditmademesoproudoftheroleVSOisplayingtoensurenooneisleftbehindandtheisworldabetterplace.

PHILIPInJunelastyear,ItravelledtoEasternGhanatomeetwomenfarmersonouragriculturallivelihoods

programme,deliveredinpartnershipwithMondelez.Someofthewomenwehavesupportedthroughourworkhavebecomecommunityvolunteers,workingtosupportotherwomeninneighbouringcommunities.DuringthevisitIaskedoneofthewomenwhyshedidthis.Shewasbothquickandeloquentinherreply,“Weallhaveadutytobrightenourcorner.Ifthroughmyactions,Icanhelpbringsomeoneoutofpovertyandintothelight,thenitismyduty”.

WELCOMEfrom the Chair and the Chief Executive

ThissimplemessagefromGhanagoestotheheartofVSO’smission–bringingpeopletogethertotacklepoverty.Itiswhywe’resoproudtoleadthisorganisation,whichissopassionateaboutmakingtangibleandsustainablechangesinthelivesofpeople,communitiesandsocieties.Itiswhywecountourselvesluckythat-inaworldfacedbysomanychallengesandwhatseemlikesomanybadnewsstories–ouremployees,volunteers,andthepeopleweareheretoserve,providesomanyinspirationalstoriesofselflessness,hopeandpositivechange.Youwillreadaboutsomeoftheseinthisannualreport.

THE POSSIBILITY OF CHANGEVSO’sworkisspecial.Itisspecialbecauseitunlocksthepossibilityofpositivechange.Itdoesthatbybringingpeoplefromdifferentbackgrounds,expertiseandexperiencetogethertogeneratenewideas,newinsightsandnewwaysofdoingthings.Weareanorganisationthatbuildswhatwecall“socialcapital”–networks,ideas,relationships–thatenableacommunity,anorganisation,asocietytofunctionmoreeffectively.Thisdeliversnotjustimmediatechangebutlong-termandsustainableimpact.Importantly,intheplacesweworkitalso

helpscommunitiesbecomemoreresilient.Theyareabletogetbackontheirfeetmorequicklyifdisasterstrikes.We’veseentheimpactofthiskindofinvestmentinourprogrammesinNepalaftertheearthquakeof2015.We’vealsoseenitinourworkinSierraLeonewherewearenowhelpingto

rebuildthehealthsystemaftertheterribleEbolaepidemic.

BUILDING EVIDENCE Whilewehaveachievedalotinthelast12months,weareanorganisationthatisalwaysambitioustodobetter.Wehavecontinuedtobuildtheevidencebaseforourwork,lookingforwhatworksand,justasimportantly,whatdoesn’twork.AtVSO,weprideourselvesonmakingdecisionsbasedonevidence.We’reparticularlypleasedthatwehavecompletedourresearch,“ImpactBeyondVolunteering”,whichshowshowvolunteeringbuildspersonalconfidenceandresilience,aswellasenergisingcitizens,whoarethenmakingapositivecontributiontosociety.

MOVING FORWARDAswegoforward,wecontinuetochallengeourselvestodomore.First,toensureweareworkingwiththoseattheverymarginsofsociety,whomostneedVSO’ssupport.Second,toworkmorecloselywithotherorganisationsaroundtheworldtobuildaglobalnetworkofactivecitizensandvolunteerswhocanhelpdeliverthefairerandmoreequitableworldweallhopefor.AtVSO,wesayavolunteerisanyone

whohasthecourageanddeterminationtobethechangethattheywantintheworld.Andwhilesometimestheworldcanseemaverytroublingplace,whatweseeinVSOprogrammesisthatvolunteeringisapracticalwayforeachofustoliveourcommitmenttosocialchange.Wehopeyouenjoyreadingaboutourwork.

“Education is the most important thing, education is our future”, Girls club in northern Ghana sing their dreams.

Rekha Shrestha from the National Disaster Recovery Co-ordination Secretariat, chats to Kopila Tamang at the ‘Internally Displaced Person’ camp in Dhading, Nepal.

©V

SO/S

ura

j Sh

akya

©V

SO

109 STRATEGIC REPORT STRATEGIC REPORT

VSO AT A GLANCE

Lastyear,VSOsupportedover2.4millionpeoplein24countriesacrossAfrica,AsiaandthePacific.Weworkedwith420localpartnerorganisationsandtrainedover7,000volunteersandprofessionalstohelpcreatelong-lastingchangeinsomeofthepoorestcommunitiesintheworld.

HOW WE WORKUsingouruniquevolunteeringfor

developmentapproachwebroughtthousandsofpeopletogethertogenerateinsights,ideasand,aboveall,actiononpovertyandexclusion.Notonlydowerecruitinternational

volunteersfromallovertheworld,weareincreasinglyworkingwithnationalvolunteerswhoworkintheirowncountries.Wealsoworkwithdedicatedcorporate

andparliamentaryvolunteers,andwithyouthvolunteersthroughtheInternationalCitizensService(ICS).ICSisaUK-governmentfundedvolunteeringprogrammethatseesBritishvolunteersaged18-25yearsundertake10-12weekvolunteeringplacementsoverseas

alongsideyoungvolunteersfromtheirplacementcountry.VSOleadsaconsortiumofeightrespecteddevelopmentorganisationstodelivertheICSprogramme,andin2016/17mobilised6,585youngpeoplethroughtheprogramme.

WHAT WE DOOurworkfocusesondeliveringlong

termchangeinthreeareas:education,healthandlivelihoods.

We organise our efforts within five core programme areas:•Maternalandnewbornhealth•Adolescentandyouthsexualandreproductivehealthandrights

•Inclusiveeducation•Agri-basedvaluechains•Youthemploymentandenterprise.

Inaddition,werecognisethatsocialinclusion,genderequalityandsocialaccountabilityarecriticaltoensuresustainable,systemicchange,andthesearenowcoretoourdevelopmentapproach.

We brought thousands of people together to generate insights, ideas and, above all, action on poverty and exclusion.

OUR YEAR IN NUMBERS

OUR IMPACTIn 2016/17 we supported;

over900,000

peoplethroughoureducationprogrammes

over1,336,000 peoplethroughourhealthprogrammes

over165,000

peoplethroughourlivelihoodsprogrammes

VOLUNTEERING FOR DEVELOPMENTVSO worked with 7237 volunteers from all countries, ages and backgrounds, including;

6585youthvolunteers

239internationalvolunteers

319nationalvolunteers

94corporatevolunteers

YOUTH VOLUNTEERINGICS celebrated its biggest year to date, with 3317 UK volunteers joining 3268 local volunteers to help make a difference in some of the world’s poorest communities. This included;

26,400hoursofpeereducation

3,300actionresearchprojects

14,600hoursofawarenessraisingactivities

25,300hoursoftraining

1,779communityinfrastructureprojects

420 Partners

ICS volunteers get ready for a Community Action Day in the Lindi region, Tanzania.

©IC

S

©V

SO©

VSO

/Pe

ter C

aton


VSO AT A GLANCE

Tofindoutmoreaboutthecountriesweworkin,pleasevisitwww.vsointernational.org/fighting-povertyi

•Bangladesh

•Cambodia

•Ethiopia

•Ghana

•India

•Kenya

•Lesotho

•Malawi

•Mozambique

•Myanmar

•Nepal

•Nigeria

•Pakistan

•PapuaNewGuinea

•Philippines

•Rwanda

•SierraLeone

•SouthAfrica

•Swaziland

•Tanzania

•Thailand

•Uganda

•Zambia

•Zimbabwe

VSO WORKS IN 24 COUNTRIES

BANGLADESHOverathousandpeopleattendedacommunityactiondayorganisedbyICSyouthvolunteersinDinjapur,Bangladesh,tocelebrateInternationalWomen’sDay.

KENYAUKvolunteersworkedalongsideDeafvolunteersfromKenyaonthe‘Deafway’projectinKasabet.TheteamcarriedoutcommunitytrainingonbasicKenyanSignLanguageandcreatedcommunityspaceswheredeafpeoplecouldsharetheirexperiences.Theseactivitiespromotedintegration,equalityandawareness.

INDIAVSO’sAaghaazproject,inpartnershipwithtelecomsproviderBhartiInfratel,trained1,004vulnerablewomeninJharkhandprovinceinvocationssuchassecurityandhospitalityaswellaslifeskills.Over70%ofthewomenhavefoundsecureemployment.Weplantoexpandtheprojecttotrainmorethan3,000women.

MYANMARVSOmidwifeadviserssupportedfourmidwiferytrainingschoolsintheuseofclinicalcompetency-basedmodelsandcomputer-basedlearningresources.Eightoutof10midwivestutoredbyVSOadvisersreportedimprovedskillsinclinical,antenatalandpostnatalcare.

NIGERIAVSOhasintroducedamobilesciencelabtosupportschoolsinIfelodunincreasethenumberofstudentsstudyingsciencesubjects.Oneschool,whichpreviouslyhadnostudentsstudyingscience,hasrecorded11studentsforsciencesubjects.

ZIMBABWEGraduatescamefromZimbabwe’sfirst-everaccreditedvocationaltrainingcourseinaprisonsetting.ThetrainingwasestablishedwithsupportfromaVSOprojectpromotinghumanrightsandaccesstohealthservicesinprisonsinthreecountriesacrosssouthernAfrica.


Millionsofchildrenaroundtheworldaredeniedtheirrighttoaqualityeducation,whichcouldhelpthemescapepoverty.VSOworkstoimproveeducationfor

children,especiallythemostmarginalisedinsociety.Wedothisbydevelopingteachers’skills,improvingeducationmanagementandincreasingcommunitysupportforeducation.Lastyearoureducationprogrammes

helpedsupportover900,000childrenacross15countries.

INCLUSIVE EDUCATIONOureducationprogrammestarget

thechildrenmostlikelytobeexcluded,includinggirlsandthosewithdisabilities.We’veincreasedschoolenrolmentandimprovedattitudestowardssuchchildreninprojectsacrossEthiopia,Nepal,KenyaandRwanda.InEthiopia,VSOsupportedtheAbiAdi

CollegeofTeachersEducationand10primaryschoolstoimproveaccesstoqualityeducationforchildreninremoteanddisadvantagedareas.Childrenintheseschoolsbenefitedfromgreaterlearningoutcomesandschoolattendance.Theprojectalsoimprovedschoolfacilitiesinareasaffectedbydrought,meaningmorechildrencanaccessqualityeducation.

TECHNOLOGY IN ACTIONTechnologyprovidesinnovativeand

cost-effectivelearningimprovementsonVSOprogrammes.InGhana,forexample,wesuccessfullypilotedatechnology-basedplatformtodeliverteachingandlearningresourcestoteachers.InMalawi,wesawa45%improvement

inlearninggainsofchildreninvolvedinourUnlockingTalentthroughTechnologyproject.Thisusesdigitaleducationtechnologytoacceleratelearningforchildreninovercrowded,under-resourcedclassrooms.Asaresult,theMinistryofEducationhasexpressedinterestinintegratingtheapproachacrossMalawi.

INVOLVING COMMUNITIESVSOhasstrengthenedparent-teacher

associationsandschoolmanagementcommitteeswhichhassuccessfullyincreasedparentalandcommunityinvolvementineducation.InNigeria,ICSvolunteersranaprogramme

focusedongettingchildrentoschool.Theycreatedchild-friendlylearningspacesinlocalcommunities,wheretheytaughtbasicliteracyandnumeracyalongsidesoftskillslikepersonalhygiene.Theprogrammewassuccessfulinprovidingeducationalternativesandre-enrollingchildreninschools.

HELPING CHILDREN WITH DISABILITIES IN RWANDACharles,11,haslearningdisabilities.

Heusedtostaysilentinschoolandkeptseparatefromotherchildren.ButthenhisteacheratGahangaPrimarySchoolinNyamagabe,Rwanda,wastrainedaspartofVSO’sL3+project.NowCharlesmixeswithotherchildren,andhasevenbeguntospeak.Aroundonein10childreninRwanda

livewithadisability.Mostarenotinschool,andteachersgenerallylackthetrainingandresourcestodojusticetothosewhoare.TheL3+projectprovidesspecialist

trainingtoteachersinmainstreamschoolsonengagingchildrenwithdisabilities,includingbymakingspecialno-costteachingandlearningmaterials.Now78%ofteachersinvolvedareconfidentthatchildrenwithdisabilitiesareproperlyincludedintheirclassrooms.Theprojectalsoprovidestrainingand

awarenessraisingtoparentsandhealthworkersonidentifyingandreferringchildrenwithdisabilities,andonunderstandingandprotectingtheirrights.AtthestartoftheL3+project,fourout

of10teacherssaidchildrenwithdisabilitieswereaburdentosociety.Thisnumberhasnowfallentoonein10.

Every child has the right to a quality education that gives them the best start in life.

15countries

Pupils at Ngwenya Primary School in Lilongwe, Malawi, waiting to log in to their Unlocking Talent Through Technology class session.

GLOBAL PROGRAMMESEducation

over 900,000people supported

132partners

©VSO

©V

SO/M

ussa U

wito

nze

©V

SO/M

ussa U

wito

nze


SAVING NEWBORN LIVES IN TANZANIA

Aroundtheworldpeoplearesufferingneedlesslyduetoalackofqualityhealthservices,keepingthemtrappedinacycleofpoverty.VSOworkswithhealthworkers,

communitiesandgovernmentstoimprovehealthservices,focusingontheareasofmaternalandnewbornhealth,andadolescentandyouthsexualhealthandrights.Lastyearourhealthprogrammeshelped

over1,336.000peopleaccessthequalityhealthcaretheydeserve.

MATERNAL AND NEWBORN HEALTHEachyear,over2.6millionbabiesdie

withinthefirst28daysoflife.Mostofthesedeathsoccurindevelopingcountriesfrompreventablecauses.VSOworksincommunitiesandhealthfacilitiestotrainhealthworkersinclinicalskillssuchasnewborncareandresuscitation,improveservicemanagement,andpromotelow-cost,high-impacttechnologyandpractice.Newborndeathratesdropped

significantlyinpartnerhospitalsinEthiopia,Myanmar,TanzaniaandUganda,whereVSOhassupportedimprovedneonatalintensivecareunits.InEthiopia,thedevelopmentofmaternitywaitinghomeshasallowedwomenexperiencingcomplicatedpregnanciestoaccessspecialisedsupport

before,duringandafterdelivery.InSierraLeone,TanzaniaandUganda,

VSOsupportedcommunitiestodemandbetteraccesstomaternalandnewbornhealthcare,increasingreferralstospecialistcarefacilitiesandreducingthenumberofunattendedhomebirths.

ADOLESCENT AND YOUTH SEXUAL AND REPRODUCTIVE HEALTHGlobally,adolescentsandyouthare

disproportionatelyaffectedbypoorsexualandreproductivehealthservices.VSOworkstomaketheseservicesyouthfriendlyandaccessible.Lastyearwesupportedcommunitiestochallengethediscriminationthatcanstopyoungpeopleaccessingtheinformationandservicestheyneedtomakeinformedchoices.Increasingly,weworkdirectlywithyoung

people,whileinfluencingthosewhoexertpoweroverthem.In10countriesyouthvolunteersdeliveredpeer-to-peerprogrammesfocusingoneducation,support,mentoring,leadershipandresearch.Asaresult,moreyoungpeopleare

accessingsexualandreproductivehealthservices,andhavebeenempoweredtochallengeharmfulpracticessuchasearlyforcedmarriage,femalegenitalcuttingandgender-basedviolence.

MedicalattendantSophiausesaNewbornTriageChecklistCardsuppliedbyVSOtoassessnewbornhealthatStWalburg’sHospital,Nyangao,Tanzania.TheunitisbeingsupportedaspartofVSO’sAcceleratedCareandTreatment(ACT)projectimprovinghealthcareforpregnantwomen,mothersandnewborns.Sevennewbornintensivecareunits

(NICUs)havebeenestablishedthroughACTinruralareasoftheMtwaraandLindidistricts.Theseareequippedwitheasy-to-use,low-costbuteffectivetechnologysuchasportableultrasoundmachines.SMStextmessagingwasalso

successfullyusedtoremindexpectantmothersofprenatalchecksandshareotherhealthinformation.BeforeACT,therewerenospecialised

NICUsortrainingonnewborncareforhealthworkersintheseregions.VSOisthefirstorganisationtosupporttheprovisionofthese,andisproudoftheresults.Thisyearantenatalvisitsincreasedfrom

45%to75%andthefacilityofdeliveryfrom64%to90%,whilethetimeforidentifyingandmanagingcomplicationsandreferringpatientstoNICUsdecreased.Acomparisonofrelativedatashowsthatnewborndeathratehasdroppedby37%since2013.

GLOBAL PROGRAMMESHealth

Each year, over 2.6 million babies die within the first 28 days of life. Most of these deaths happen in developing countries from preventable causes.

14countries

over 1,336,000people supported

101partners

Janet, 17, is one of the young mothers who received vital specialist care for her baby thanks to the VSO supported neonatal intensive care unit in Gulu Regional Referral Hospital, Uganda.

©V

SO©

VSO

©V

SO/ P

ete

r Cato

n


SUPPORTING LIVELIHOODS IN UGANDA

Millionsofpeoplearestrugglingwithoutareliablesourceoffoodandincometosupportthemselvesandtheirfamilies.VSOprogrammeshelppeopleliveindignityandsecurity,withbetterskills,incomeandfaireraccesstomarkets.

IMPROVING INCOMES FOR YOUNG PEOPLEGlobalyouthpopulationsarebooming

-butyoungpeoplearethreetimesmorelikelytobeoutofworkthanadults.VSOimprovestheemployabilityofyoung

peoplethrougheducationandvocationaltraining,andbyworkingwithbusinessestocreatemorejobs.InUganda,theYouthEmpowerment

andLocalGovernanceprojecttoincreasesustainableemploymentopportunitiesforyoungpeople,ledtohigherincomeforallparticipants.Indeed,theaverageweeklyincomeforthoseinvolvedintheprojectwasthreeandhalftimeslargerthanfortheyouthinnorthernUganda.

ACCESS TO FINANCIAL SERVICES FOR FARMING COMMUNITIESManyoftheworld’sfarmingcommunities

facehighrisksandlowreturns.Weworkatalllevelsofsocietytoprovidebettermarketaccessformarginalisedfarmers,improve

farmers’bargainingpowerandincreaseyields.OurGrowingTogetherprogramme

supportsthelivelihoodsoffarmingcommunitiesinnorthernBangladesh.OvertwothirdsoffarmersintheMithapukerregion,whohavediversifiedcropsaspartofGrowingTogether,reportincreasesofnetincomebyanaverageof300%overthepasttwoyears.InTanzania,ourCommercialAgriculture

forSmallholderFarmersinHorticultureprojecthelpssmallholderfarmersincreasequalityofproduceandaccesstomarkets,andcontinuestodelivergreatreturnsoninvestment.Forevery£1invested,£4.70wasreturnedineconomicvalue.Lastyear,thisprojectreachedover7,000people.

CHANGING OUR APPROACHFollowinganin-depthreviewofVSO’s

livelihoodswork,wehaveimprovedourpracticestoensuregreaterresourceisdevotedtounderstandingtheaspirations,abilitiesandassetsofthecommunitiesweworkwithsothatwecandeliversignificantchange.Ournewframeworkisbeingpiloted

acrossarangeofprogrammesthroughout2017andwillbesupportedbycontinuedin-depthanalysis.

NorthernUgandahasstruggledfollowingyearsofconflict.Manychildrenandyoungpeopleweredisplacedduringthefightingandtheireducationsuffered.Today,aroundeightin10youngpeopleinUgandaareunemployed.VSOvolunteersaresupportingyoung

peopletoaccesstraininginemploymentandagriculture.ChristineAtoo,27,isoneoftheyoung

farmersbenefitting.Herfamilywereforcedtofleeduringthewar.Whenitwasfinallysafetoreturn,shehadtostartfromscratch:“Wecouldn’taffordtotakecareofour

needs.Wedidn’thavecleanwater.Whensomeonewassickwecouldn’taffordtreatment.”“Wewouldonlyfarmsmallamountsof

foodforconsumption.Iusedtodigmylandusingmyhandsalone.”ThingschangedforChristineaftershe

becameinvolvedwiththeproject.“I’vebeentrainedinhowtospacemy

cropsoutandidentifydiseases–it’samazing.It’simprovedmyyielddramatically.”“VSOisdifferent.Theydidn’tjustgiveus

oxenormoney.Theytaughtusonhowtosustainourenterprises.Welearnedhowtogetsomethingbyworkinghard.Thisissomethingthatwehaveownershipof.”

Members of EpilBaha Farmers Group celebrate with Syngenta and VSO volunteers involved in the Growing Together in Rangpur, Bangladesh.

GLOBAL PROGRAMMESLivelihoods

VSO builds programmes that help people live in dignity and security.

14countries

over 165,000people supported

112partners

©V

SO/ A

bir A

bd

ullah

©V

SO

©V

SO


In2016/17VSOintroduceditsthreecoreapproaches:socialaccountability,resilienceandsocialinclusion.ThesethreeapproachesunderpineverythingVSOdoesasanorganisationunderournewPeopleFirststrategy.

SOCIAL INCLUSION AND GENDERTheSustainableDevelopmentGoals

areapromisetoendglobalpovertyby2030,leavingnoonebehind.ButtodaythousandsofthepeopleVSOworkswitharediscriminated,marginalisedandexcludedonthegroundsoftheirgender,race,age,sexualorientation,disabilityandmanyotherfactors.Allourprogrammesacrosseducation,

healthandlivelihoodsaretargetedatthepoorestandmostmarginalisedinsociety.Weaimtobreakdownthebarriersthatcauseandperpetuateinequalityand

exclusion,andimproveaccesstoqualityservicesforall.VSOensuresthatallprogrammes

considergender,ageanddisabilitywithintheirprojectsandVSOisworkingtodefinemarginalisationandexclusionfurtherwithinspecificlocalcontexts.Forexample,discriminationbasedoncasteinNepal,orreligioninPakistan.Werecognisethatourprogrammes

needtoundergoin-depthsocialexclusionandgenderanalysisatthedesignphase.Wemadestridesforwardinthepastyear,carryingoutdetailedsocialexclusionandgenderanalysesinRwanda,Bangladesh,SwazilandandKenya.Theseanalyseswillhelpunderstandthesystemsofsocialexclusionandrefocusourprogrammingtowardsreachingthemostmarginalisedmembersofsociety.VSO’scommitmenttogenderequality

andsocialinclusiongoesbeyondprogrammes,extendingintothebehaviourandpracticesofstaff,volunteersandpartners.Wemadeconsciouseffortstoraiseawarenessoftheseissuesin2016/17,includingtrainingforover700peopleworkingtodeliverVSO’svision.Over40peoplewerealsoidentifiedtocontinuethisawarenessraisingwithnewstaff,volunteersandpartners.

SOCIAL ACCOUNTABILITYVSOiscommittedtoensuringthatpoor

andmarginalisedpeoplehaveaccesstomoreresponsiveandinclusiveservicesandareabletoholddecision-makerstoaccount.

Throughout our programmes, we aim to:•Buildwillingnessandcapacityofgovernmentandotherserviceandresourceproviderstobeaccountabletocitizens,especiallypoorandmarginalisedpeople

•Buildwillingnessandcapacityofcitizenstoexactaccountabilityfromthoseinpower

•Developspacesandprocessesforengagement

•Advocatefortheinclusionofmarginalisedpeople

ExamplesincludestrengtheningcivilsocietyorganisationsinCambodia,andprovidingtechnicaladvicetoZambiangovernmentofficialstoimproveplanningandservicedelivery.InRwanda,wecontinuedworkwith

theNationalCouncilofPersonswithDisabilitiestoensurethattherightsandprioritiesofpeoplewithdisabilitiesareconsideredinlocaldecision-makingandservicedelivery.Havingrecentlyadoptedsocial

accountabilityasacoreapproach,VSOisinatransitionalphase.Moreeffortswillbemadetoensurethatsocialaccountabilityelementsareintegraltothedesignofourprogrammes.

RESILIENCEResiliencemeansthecapacityofan

individual,populationgrouporsystemtoanticipate,absorb,andrecoverfromhazards,shocksandstresses.Thisincludestheimpactsofclimatechange.VSOidentifiedanumberofstresses

andshocksthathaveimpactedour

programmes,includingnaturaldisasters,conflictsandpoliticalinstability.TheseincludehealthstresseslikeEbolainSierraLeone,andtheongoingHIVandAIDSpandemicinZimbabweandacrossmuchofSouthernAfrica.Amongenvironmentalfactors,droughtishavingasignificantimpactonlivesandlivelihoodsincountriessuchasKenya,RwandaandUganda.InNepal,Pakistan,Malawiandthe

Philippines,VSOhasconsultedwithpeopledirectlyaffectedbypovertyandinequalitytoidentifythedifferentstressesandshocksfaced.Wealsohighlightgroupsofpeoplethatareespeciallyvulnerable,suchaspregnantwomen,peoplelivingwithHIVandruralsmallholderfarmers.OverthepastyearVSOprogrammes

havelearntandadaptedinresponsetoresilienceissues.InNepalwehaveworkedwithschoolmanagementcommitteesandparentteacherassociationstoensurethatdisastermanagementisacompulsorycomponentoftheeducationsystem.Inpost-EbolaSierraLeoneVSOissupportingtheMinistryofHealthtostrengthenhealthsystemcapacitytocopewithfutureshocks.Meanwhile,VSOMalawiisstrengtheningclimatechangeadaptationthroughreforestation,soilconservationandcultivationofdrought-tolerantcropvarieties.

Through our Social Accountability work VSO is supporting a Teenage Mothers School in Sierra Leone, helping young mothers like Fatama get an education and build a better future for herself and her daughter.

GLOBAL PROGRAMMESCore approaches

Dr Padma, GP, is the first international volunteer back in Sierra Leone after the Ebola endemic was declared over. She is building up the knowledge of local healthcare workers so that the hospital remains a trusted place of healthcare.

These three core approaches underpin everything VSO does as an organisation.

©V

SO/ P

ete

r Cato

n

©V

SO/ P

ete

r Cato

n


VSO’sambitionistoinfluenceandleadthedevelopmentandvolunteeringsectortoadoptpracticesthatpromoteimpactfulandresponsiblevolunteering.Thiscanonlybedoneincollaborationwithothersandbyleadingbyexample.InThailand,VSOhashelpedtoinfluence

theGovernment’snationalstrategyonvolunteering,withapolicyannouncedlastyearandhigh-levelcommitmentstovolunteering.AlongsideVSO’snationalpartner,theVolunteerSpiritNetwork,whichworkswithover30,000nationalvolunteers,VSOhashelpedsecurethefirstnationalvolunteercentresupportedbythegovernment.ThiswillhelptobettercoordinatevolunteeringeffortsinThailand.Duringthenegotiationsaroundthe

SustainableDevelopmentGoals(SDGs),VSObroughtthevoicesofourvolunteersandpartnerstotheheartofdiscussionsattheUN.Asglobalgovernmentssettheir

plansforhowtheywillimplementthisnewagenda,wehaveensuredthatthevoicesandexperiencesofthecommunitiesweworkwithcontinuetobeheard.Forexample,inKenyaVSOisrunningcommunitydialoguessupportedbyyouthvolunteerstocontributetonationalplansforimplementingtheSDGs.

VOLUNTEER, WHEREVER YOU ARE FROMVSOiscommittedtoenablinganyone

withtherightattitudetovolunteer.WorkinginpartnershipwithothervolunteeringfordevelopmentagenciesacrossEurope,ourIVO4Allprojecthasbeenmakinginternationalvolunteeringmoreaccessibleforyoungpeoplewhowouldn’tnormallyhavethatopportunity.UKvolunteer,Senara,workedonanICS

projectinNepaltoimproveeducationandsanitationforchildreninruralareas–buildingherskills,experienceand

confidence:“BeforeIevensteppedfootinNepal,Ihadgottenovercertainfearsandanxieties,andhadexperiencedthingsthatwouldneverhavebeenpossibleifitweren’tforICS.”In2017,we’llbeworkingcloselywithour

IVO4AllpartnerstoinfluencepolicyacrossEurope.We’realsocontinuingtoworkwiththeUKGovernment,tofurtherreducethebarriersfacingyoungpeoplefromlessaffluentbackgroundstakingpartinICS.

DEEPENING UNDERSTANDING OF THE ROLE OF VOLUNTEERINGAsanactivememberoftheInternational

VolunteerCooperationOrganisations(IVCO),ourstaffandvolunteershelpedtoshapethedebateattheannualconference.Civilsociety,governments,UNbodies,academiaandtheprivatesectorfrom35countriescametogethertodiscusstherolevolunteersplayincreatingamorejustandsustainableworld.Attendeesbenefitedfromhearingthe

experiencesoftwoinspirationalnationalyouthVSOvolunteers:GregoryOkonofuafromNigeriaandTanginaMehnazfromBangladesh.Tanginakickedofftheconferencewith

apowerfulspeechaboutwhatresiliencemeanstoher,saying,“IfIwasn’tresilientIwouldn’tbeheretoday,Iwouldbemarried

withchildreninBangladesh.”Gregorycontributedtoapanelsession

abouthowwecancreatealastingimpact:“Communityvolunteeringneedscollaborationandknowledgesharing,socommunitymembersbecomemoreaccountablefortheissuestheyface.Ibelievevolunteeringholdsthekeythatcanunlocksomanydoorsofpositivechange.”We’llusetheIVCO2016CalltoActiontofurtherinformVSO’sapproachtovolunteeringfordevelopment,andwewillbereflectingonhowwecanbestcommunicateourworkaroundresilienceasacoreapproach.

WORKING IN COLLABORATIONInDecember2016,VSOsignedaformal

agreementwiththeCommissionoftheAfricanUnion(AU).Thisagreementrepresentsahigh-levelcommitmentbytheAfricanUniontointegratevolunteeringintoitspeaceanddevelopmentwork.TheAUwillbedevelopingtwoimportant

policydocumentsduring2017:aten-yearactionplantopromotehumanrights,andanactionplantorealisethebenefitsofAfrica’slargeyouthpopulation.VSOwillplayanimportantroleinensuringthatthevoicesoftheimpoverishedandmarginalisedpeoplewithwhomitworksarerepresented.

Youth policy makers, practitioners and the ICS consortium came together for the IVO4All conference in London to discuss how to create a more inclusive and accessible approach to youth volunteering.

GLOBAL LEADERSHIP

VSO is committed to enabling anyone with the right attitude to volunteer.

VSO National Volunteers Tangina Mehnaz (right) from Bangladesh and Gregory Okonofua (left) from Nigeria at the IVCO 2016 conference in Bonn, Germany.

©V

SO/ D

avid M

cC

len

agh

an

©IC

S


In November 2016 VSO volunteers and staff gathered in London for our first ever Volunteer Awards. The evening celebrating the work of our dedicated volunteers who have gone above and beyond to help change the lives of those most in need.

GLOBAL ENGAGEMENT

GlobalengagementiscoretoVSO’sPeopleFirststrategy.Since1958,we’veworkedwithvolunteersfromallovertheworld.We’vegrownourworkwithyoungpeople,nationalvolunteersandcommunityvolunteers.Andwefocusontheparticipationofthosedirectlyaffectedbypovertyandinequality.Ourambitionistomobiliseandengage

activecitizensacrosstheworldtoplayavitalroleindeliveringtheSustainableDevelopmentGoals(SDGs).

Our People First strategy will allow VSO to:•Createspaceforthosemostaffectedbypovertyandexclusiontoadvocateforandenactchangesintheirownlivesandcommunities

•Helpourglobalnetworktounderstand,engagewith,andactinsupportoftheSDGs

•Developmulti-sectorpartnershipstoinspirepeopleandtheirinstitutionsintoactivesupportfor“aworldwithoutpoverty”.

VSO’S GLOBAL NETWORKManyofourvolunteersstayconnected

withVSOforalongtime,inmanydifferentways.Somevolunteeragain,othersfundraiseanddonate.Increasingly,theyadviseonthedesign,deliveryandevaluationofVSO’sprogrammes.Thispassionateglobalnetworkremains

connectedtoVSObecausetheycareaboutendingpovertyandinequality.BeingaVSOvolunteerisnotanexperiencethatendswiththejourneyhome.

There were some wonderful examples of that this year from VSO’s country offices:•VSOIndiaaskedaformervolunteer,SayaniBasu,totestnewfundraisingapproaches.Asaresult,Sayanihasdevelopedacrowdfundingmodeltofundalocallydevelopedprojectfortheeducationofblindchildren

•IbrahimKamara,aformerICSvolunteer,carriedoutfieldworkinhishomecountryofSierraLeoneintotheeffectEbolahadon

womenaccessingmaternalhealthservices.•InBangladesh,volunteersinterviewedruralfarmingcommunitiestoproduceaground-breakinganalysisofsocialexclusionandgenderdynamics.

VSO VOLUNTEER AWARDSLastyear,VSOhelditsfirstannualVSO

VolunteerAwards.TheseawardscelebratethebestinVSO’svolunteeringapproach,whetherthroughprofessionalvolunteersorthroughICS;actingasindividualsorpartofateam;rightacrosstheworld.Whileourwinnerswereextremelydiverse,

whattheyhadincommonwasanincrediblecommitmentandaconnectiontoVSO’smissionofendingpovertyandinequality.

Our winners included:•JudithandSimonHill,internationalvolunteersoftheyearwhoturneddownrepatriationtosupportthedisasterandrebuildingeffortintheaftermathoftheApril2015Nepalearthquake

•MaryamMasood,anationalvolunteerfromPakistan,whoseworkincludedadvocatingtheprotectionofwomenfromdomesticviolence

•Syngenta’scorporateteamwontheteamawardforwhattheyachievedwiththeGrowingTogetherprojectinBangladesh.

IMPACT BEYOND VOLUNTEERINGInMarch,VSOpublishedourImpact

beyondVolunteeringresearch,onhowtheexperienceofvolunteeringcreateslastingchangeinVSOvolunteersthemselves,affectingtheirbehaviourandcareerchoices,andinfluencingothers.Thestudy,availableontheVSO

website,showsthatpeoplewhohavevolunteeredwithVSOtendtobehaveandactdifferentlyasaresultoftheirexperiences.Itshowsthreemainkindsofimpact:socialactionandinfluence,careerandgoals,andchangedpractices.Morethanthreequarters(77%),

reportchangesintheirlevelofsocialactionaftervolunteering.Overathirdofvolunteerscontinuetosupportindividualsorgroupswithwhomtheyworkedwithduringtheirplacement.Manyreportedbeingmoreconfident,resilientandadaptable.Otherimpactsincludeformervolunteersexpandingtheirskillsandknowledge.BeingaVSOvolunteercannot

onlyhaveasignificantandlastingimpactinsomeoftheworld’spoorestcommunities–itcanalsohaveasignificantandlastingimpactonthevolunteersthemselves.

Since 1958, we’ve worked with volunteers from all over the world.

Ibraham Kamara, 28, ICS Alumni who helped VSO during the Ebola crisis by conducting research in his home country of Sierra Leone.

TofindoutmoreaboutourImpactBeyondVolunteeringresearch,pleasevisitwww.vsointernational.org/evaluationsi

©V

SO/ D

avid M

cC

len

agh

an

©V

SO/ P

ete

r Cato

n


VSOhasacultureoflearningandevaluationthroughouttheorganisation.Thismakessureourworkhasthemostimpactandremainsrelevant,effectiveandsustainable.ItalsoincreasesVSO’sunderstandingofthedistinctivecontributionofvolunteeringtotacklepovertyandinequality.

We encourage ongoing learning and evaluation across VSO to:•Buildlearningandevaluativequestionsandprocessesintoprogrammedesign•Increasethenumberofcollaborativeevaluationandlearningexercisesconductedbyprogrammeteams•Usefindingstoinformlearning,understandimpactanddriveprogrammeimprovement•Sharebestpracticeinevaluationmethodology,approachandfindings,usingexternalexpertisewherenecessary•Undertakemeta-evaluationsacrossthematicandgeographicareas•Reviewwhenexternalevaluationisrelevantanduseful.

MONITORING PROGRESS THROUGHOUT PROGRAMMESAllVSOreviewsandevaluationsareguidedbyVSO’sGlobalResultsFramework.Thisisaglobalmonitoring,

evaluation,researchandlearningplatformthathelpsVSOunderstanditscontributiontotheSustainableDevelopmentGoals.ItgivesusadeeperunderstandingoftheimpactofVSO’sprogrammesandvolunteeringinterventions.VSO’sglobalresultsframeworkdetermineswhatprogrammedataVSOgathersandwhatanalyticalquestions

areusedtointerrogateit.

It includes:•IndicatorsandlearningquestionsthatlookatthesustainabledevelopmentimpactofVSO’sworkineachofitscoreprogrammeareas

•ThenumberanddemographicsofthepeoplereachedthroughVSOprogrammes•Evidenceofincreasedinclusionandparticipationbythosewearesetuptoserve•Examplesofinnovationandfailure.

FromApriltoDecember2016,VSOfocusedonrefiningindicatorsandtools,developingprocesses,andcommunicatingtheframeworkacrosstheorganisation.Eachquarter,wecollectedforecastsoftheexpectednumberofpeopletobereachedthroughourprogrammes.Inthefirstfewmonthsof2017,wecollectedinformationfortheframeworkfromallVSOcountryoffices.Thisdataincludessummariesof59piecesofprojectorprogramme-levelevidence,informationonthepeopleVSOhasreached,andannualreportsfromeachcountryoffice.

All VSO’s monitoring and evaluation practices are guided by our principles, specifically:1. Voice and inclusion–theperspectivesofthoseaffectedbypovertyandinequalityareincludedintheevidence.Powerdynamicsarerecognisedandunderstood.

2. Contribution–dataisavailabletoshowthatchangehashappened,andhowithappened.Welookatadditionalfactorsinvolved,suchasunintendedandunexpected,positiveandnegativechanges.

3. Methodologies–approachesanddesignsofmonitoring,evaluationandresearchareethicalandreasonable,andconflictingfindingsarepresentedandanalysed.

4. Transparency–wereportbothpositiveandnegative,intendedandunintendedoutcomesandareclearonhowdatawillbeused.

MONITORING AND EVALUATION

©V

SO/ P

ete

r Cato

n


FINANCIAL REVIEW

Income for the year totalled £78 million.

WHERE OUR INCOME CAME FROM 2016/17

Individualgiving8%

Companies6%

Eventsandcommunity5%

Othergrantsanddonations5%

Othercharitableincome3%

Governmental income:DFIDStrategicGrant26%

Governmental income:ICS32%

Governmental income: other15%

Total expenditure for the year was £76 million.

HOW THE MONEY WAS SPENT 2016/17

ICSconsortiumpartners(contract)25%

Education28%

Health14%

Livelihoods19%

Coreapproaches6%

Generatingfunds8%

©V

SO/ P

ete

r Cato

n


INCOMEIncomelevelsremainstrong,withreductionsinincomefromDFIDlargelyoffsetbyincreasesinincomefromother

institutionaldonors,companiesandlegaciesasweseeincreasingdiversificationofourincomeportfolio.

£0m

£10m

£20m

£30m

£40m

£50m

£60m

£70m

£80m

£90m

GOVERNMENTAL INCOMEIncome from the strategic grant from the UK Government’s Department for International Development (DFID)(£20million)continuedwithDFIDofferingtwoextensionsprovidingfundingof£16.5millionto31Decemberandafurther£3.8millionto31March2017.FromApril2017,VSOwillcontinueitspartnershipwithDFIDthroughanAccountableGrantforthedeliveryofathreeyearVolunteeringforDevelopmentprogramme.

ICS contract income(£25million)declinedby£1.5million.ICSisapaymentbyresultscontract.ThepaymentpointisagainsteachUKvolunteerwhoachievessetstagesontheirvolunteerjourney.VSOoverseesandmanagesthecontract,workingwitheightrespecteddevelopmentagenciestodeliverlife-changingimpactthroughUKyouthvolunteersandtheirnationalcounter-parts.ThiswasthesecondyearofdeliveryoftheDFIDfundedICS2contract.

Other(£12million)–Wecontinuetodiversifyourincomesourcesandhavebeensuccessfulinsecuringfundsfromothergovernmentagencies,includingUSAID,theEUandUNbodies.

OTHER INCOMERegular givers(£6million)–Over41,000donorsgaveusaregulargift.Duetoinsufficientlong-termreturnsandhighsupporterattrition,wechosetowithdrawfromdoor-to-doorfundraisingactivity,andarediversifyingthewayswerecruitnewregulargivers.

INCOME BY TYPE Otherincome

Governmentalincome:other

Governmentalincome:ICS

Governmentalincome:DFIDStrategicGrant

16/1715/1614/1513/1412/13

Appeals–Supportersacrosstheworldcametogethertoraiseawarenessandsupportthefightinpreventingavoidablenew-borndeathsduringChristmas2016,inourfirstmulti-channelcampaign.Peoplesharedphotosoftheirfirstbabies,sentmessagestonewmumsanddonatedover£160,000toVSO.

Major donors(£0.7million)-2016/17wasalandmarkyearforpartnershipswithsupporterswhowanttomakeasignificantdifferencetoourwork.WesuccessfullyclosedourMillionHoursFundwhichraisednearly£1million,farexceedingitsgoaltoreleaseonemillionhoursofnationalvolunteering.Aleadershipgiftof£1.2millionwasalsosecuredtowardsnewYouthEmployabilityprogramminginUgandaoverthenextfouryears.

Events and community(£4million)–Arangeoffundraisingactivitiestookplacein2016/17,includingsportingevents,peer-to-peerfundraisingbyourvolunteers,andcommunityeventsorstreetcollectionsbyVSOsupportergroups.SpecialeventsincludedagolfdaysponsoredbyinsurancecompanyAXAPPPInternational,andacarolconcertatCentralHallWestminstersponsoredbyteachers’union,NASUWT,whichwasattendedby1,700ofourvaluedvolunteersandsupporters.£3millionwasraisedbyICSvolunteerfundraisingacrosstheconsortium,withICSvolunteersraisingonaverage£900eachintheirlocalcommunitiesintheUK.

Legacies(£2million)–In2016/17welaunchedVSO’sfirstlegacyevent,whereformervolunteersanddonorscouldfindoutmoreabouthowagiftleftintheirWillcouldtransformpeoples’lives.Legacyincomeis£1.1millionhigherthaninthepreviousyear.

A gift in your Will could help make the world a fairer place. For more details on how you can leave a gift to future generations, please contact the team on [email protected] or call (+44) 20 8780 7500.

Companies (£5million)-Wecontinuetoworkcloselywitharangeofprivatesectorpartnerstoaccesstechnicalskillsthroughcorporateemployeevolunteering,toattractadditionalfunding,andtodevelopnewapproachestoourwork.Thisprovidedanadditional£1.8millionofincomecomparedto2015/16.VSOhasbuiltonourrelationshipswithAccenture,Citi,Randstad,Syngenta,Mondelēz,IBMandVodafonethroughourKnowledgeExchangecorporateemployeevolunteeringplatformtoengagecompanieswiththeSustainableDevelopmentGoals.

Trusts and Foundations(£1million)-Significantpartnershipsacrossourprogrammeshaveenabledustogofurtherinourcoreprogramming,includingsupportfromComicReliefandtheBigLotteryintheUK,andinternationallyfromtheMastercardFoundation,AmplifyChange,theStavrosNiarchosFoundation,MedicorFoundation,thePestalozziFoundation,andthePharoFoundation.

For more information:Financialstatements,note2Incomeanalysis

Bangladeshi farmer Mujibor Rahman, who was supported by VSO and Syngenta’s Growing Together project, ploughs his land ready to plant crops.

REFLECTION AND LEARNING•Inthepastyeartherehasbeencontinuedscrutinyoffundraisingpracticesacrossthesector.VSOcontinuestotightenprocedures,andensureallnewsupportersprovideexplicitconsentforfuturefundraisingcommunications.Wewillcontinueourregulardonorsurveysandkeepsupportersattheheartofeverythingwedo.

•Increasedcompetitionandchangingcontextmeanthatanumberoftraditionalchannelsforrecruitmentofnewdonorsarenotperformingaswell.Thereforewewilldiversifyintonewchannelsandtestnewideas.

©V

SO/ A

bir A

bd

ullah


EXPENDITURE

£0m

£10m

£20m

£30m

£40m

£50m

£60m

£70m

£80m

SPEND ON CHARITABLE ACTIVITIES

Charitable activities (£69 million)

16/1715/16

Totalspendoncharitableactivitieshasincreasedinthefive-yearperiod,from85%in2012/13to92%in2016/17.

Expenditure on education(£22million)-isup£6millionon2015/16.ItincludesincreasedspendondeliveryoftheUnlockingTalentthroughTechnologyprojectinMalawi,theTeacherEducationSupportprojectinPNG,andtheTacklingEducationNeedsInclusivelyprojectinGhana.

Contractual payments to ICS consortium partners(£18million)-fordeliveryagainsttheICScontracthavereducedby£1.6millionin2016/17,consistentwithreducedICScontractincome.TheICScontractispresentedseparatelytohighlightthedifferentprogrammeareasintroducedbyconsortiumpartners.

Generating funds(£6million)-costsofgeneratingincomehavereducedinthefiveyearperiodfrom12%oftotalexpenditureto8%.In2016/17,fundraisingcostsdecreasedby£1.1million,withreducedspendondoor-to-doorfundraisingandareductioninallocatedsupportcosts.

For more information:Financialstatements,note3Charitableactivities

14/1513/1412/13

REFLECTION AND LEARNING•InlookingatthefuturecostprofileofVSOandinvestmentofourunrestrictedresourceswewill:-Increasetheeffectivenessofoursupportfunctionssoitcostsuslesstodeliverprogrammeimpact;-Creategreaterflexibilityinorganisationalstructuresowecanincreaseanddecreasespendmuchmorequickly-Rigorouslyassesstheimpactoninvestmentofanyunrestrictedspend.

•Costingofprogrammesandprojectswillcontinuetobeafocusin2017/18,developingunderstandingoftotalcoststoallowVSOtoapplyfullcostrecoverytorestrictedandcontractedincome.

ICSconsortiumpartners

Othercharitable

Securelivelihoods

Health

Education

©V

SO/

Pe

ter

Cat

on


Closing reserves position

15/16£m

16/17£m Variance

Restricted 6.2 6.0 -4%

Unrestricted:general 14.2 18.2 28%

Designated:fixedassetfund 1.4 1.2 -10%

Designated:ICS 2.7 1.8 -34%

Designated:pensiondeficit (4.3) (4.1) -4%

Designated:changeprogramme 1.4 1.2 -17%

Total Unrestricted + Designated 15.4 18.3 19%

Total Free Reserves 9.9 14.1 43%

RESERVES

FUNDS - MULTI YEAR VIEW

16/17

£6.0million

£18.2million

£0.1million

15/16

£6.2million

£14.2million

£1.2million

14/15

£6.0million

£5.2million

£4.0million

VSO’sreservespolicyprescribestheappropriateleveloffreereservesthatshouldbeimmediatelyavailableandtheactionstrusteesareexpectedtotaketomaintainreservesatanappropriatelevel.Thispolicyinsulatesagainstvolatilityinincomeanduncontrollablefluctuationsinoperatingexpenditure,todealwithanysetbacks,andtogiveflexibilitytotakeadvantageofstrategicopportunities.At31March2017VSO’sfreereserves(generalfundlesspensiondeficitfund)were£14.1m,£6.6mabove

VSO’sminimumtargetlevelof£7.5m.Increasingfreereserveswasapprovedbythetrusteestoensuretheorganisation’sresilienceinlightofuncertaintyregardingfuturefunding,particularlytheendofthestrategicgrantfromDFID.Weachievedthisincreasethroughcostsavingsandreducedinvestment.AgreementofcontinuedfundingbyDFIDthroughtheVolunteeringforDevelopmentgrantwasreachedin

late2016/17,givingsomecertaintyforthenextthreeyears.Thiswillinformthetrustees’quarterlyreviewandtheirevaluationoftheappropriatereservesthrough2017/18.Areductioninfreereservesisexpectedoverthecomingyearandinto2018/19.

On 31 March 2017, VSO’s free reserves stood at £14 million:

Thedesignatedchangeprogrammefundrepresentsunrestrictedfundsthetrusteeshaveearmarkedtodelivertheorganisationalrestructureandtheshiftincostbaserequiredin2017/18.ThedesignatedICSfundrepresentsthesurplusofincomeoverexpenditurerelatingtotheICScontracts.ThedesignatedpensiondeficitfundmatchestheprovisionrecognisedforVSO’sagreedcontributionstothe

deficitfundingarrangementforthePensionsTrustGrowthPlan.

For more information:•Financialstatements•Note13Provisionsforliabilities•Note14Restrictedfunds•Note15Unrestrictedfunds•Note20Pensioncosts

INVESTMENTSTheaimofVSO’sinvestmentpolicyistopreservecapitalwhileholdingreservesinliquidornear-liquidassets.

VSO’spolicyistomaintainariskprofilewithnoassetsratedlessthansingleAandwithnosinglecreditexposureamountingtomorethan20%ofthetotalatanytime.TheInternationalBoardreviewsthepolicyannually.VSO’sArticlesgiveitthepowertoinvestmoniesininvestments,securitiesandpropertyasisthoughtfit,subjecttoanylegalrequirements.VSO’sfinanceteamreportsregularlytotheAuditandRiskCommitteeonthecompositionofinvestmentsheldandtheirmaturityprofile.

Inlinewiththeincreasedfreereserves,cashintheUKwashigherthisyearendtoensuresufficientfundswereheldinliquiddepositstoallowVSOtorespondtosignificantchangesinfuturefunding.Aswithfreereserves,areductionincashisexpectedin2017/18withchangesinfundingimpactingonincome.TheICScontractprovidesaworkingcapitaladvancefortheconsortium.ThisadvanceisheldbyVSOandpaid

ontoconsortiumpartnersinlinewithagreedrequirements.At31March2017,£6.2millionwasheldbyVSO.ThiscashisonlyforuseontheICScontractandwillberepaidinfulltoDFIDoncompletiononthecontract.Cashheldoverseashasreducedtominimiseexposuretoriskspresentedbyholdingfundsinthecountriesin

whichVSOoperates,andtominimiseimpactofforeignexchangefluctuationsonnon-sterlingdeposits.ThishasbeenachievedbyclosemanagementofthemonthlyfundtransferstoVSO’sprogrammeoffices.

GRANT-MAKINGUnderthetermsofthepartnershipagreementsthatexistedin2016/17betweenVSOandmembersofthe

formerVSOFederation,ICSconsortiumpartners,andin-countrypartnerorganisations,VSOprovidesfundstosuchorganisationsinordertoallowthemtoundertakeagreedactivitiesinpursuitofVSO’saims.

Closing cash and investments position

15/16£m

16/17£m

Variance£m

Short-termdeposits 11.6 11.8 0.2

ICSworkingcapitaladvance 5.7 6.2 0.5

Cashatbank:UK 6.7 12.4 5.7

Cashatbank:overseas 2.7 1.5 (1.2)

Total 26.8 31.9 5.1

Restricted

Unrestricted:General

Unrestricted:Designated


PRINCIPAL RISKS AND UNCERTAINTIES

RISK MANAGEMENTVSO’sworktowardsaworldwithoutpovertyisinherentlyrisky;thisriskispartofourwork,especiallyinfragile

andconflict-pronecountries.Ourtrusteesrecognisethatacceptanceandmanagementofriskisnecessarytoachieveourkeyobjectives.TheAuditandRiskCommitteeensureseffectiveriskmanagement.Thisisachievedthroughreviewoftherisk

managementstrategy,processesandcontrols.VSO’sriskmanagementstrategysupportsinformeddecision-makingaboutrisksthatcouldaffectour

performanceandabilitytoachieveourobjectives.Theaimistomanage,ratherthantoeliminate,potentialrisksandtoprovidereasonable(althoughnotabsolute)assuranceagainstrisks.

VSO’s risk management includes the following processes and controls:•TheExecutiveBoardconsidersinputfromglobalfunctionsandcountryoffices,andidentifiesstrategicrisks•Theriskevaluationisupdatedquarterlytoreflectoperationalandfinancialdevelopments,andchangesintheexternalenvironment.Eachriskisanalysedaccordingtoitsperceivedpotentialimpactandlikelihoodofoccurring,togetherwithactionsthateitherhavebeen,orwillbe,takeninmitigation

•Aheatmap,asbelow,capturestheprincipalstrategicrisks•Theserisksandmitigatingactionsarediscussedwith,andreviewedby,theAuditandRiskCommitteeandVSO’sInternationalBoard.

VSO’sprincipalrisksasof31March2017arepresentedvisuallyintheheatmapbelow,withfurtherdetailsinthefollowingtable.

Risk and potential consequences Management

•Funding levels and diversity

Unrestricted income is insufficienttoinvestinorganisationalgrowthandguaranteeorganisationalindependence.

Dependency on a narrow donor baseleadstopotentialincomeshortfalls.

Controls in place •VSOisabletodemonstratestrongevidenceofvalueandimpact•Strongpartnershipsinplacethatenhancecredibilityandcapacity•Fundraising,fullcostrecovery,budgetingandinvestmentdecision-makingprocessesareinplace

Progress in the year•Incomepipelineisgrowinganddiversifying•Investmentinbusinessdevelopmentteamsinglobal,regionalandcountryoffices

Further actions•Investmentintonewfundraisingmarketsaroundtheworld•Improvedincomepipelineanalysisallowsmoretargetedinvestment•Reviewofbusinessdevelopmentapproach(global,regional,in-country)toassessperformancesincechangesmade12monthsago

• Volunteer recruitment

Inability to recruit sufficient volunteersweakensourabilitytodeliverprogrammeimpactandunderminesourreputationwithfunders.

Controls in place •Appropriatevolunteerroledesignandin-countryteamsworkingwithglobalpeopleresourcingteam

•Demandforecastreviewedonarollingbasistorevealwhethersupplyisadequateforcurrentdemand

•Flexiblerecruitmentresource,focusedonpriorityareas

Progress in the year •Redesignedapplicationformtomakeitmore‘volunteerfriendly’•Recruitmentkeyperformanceindicatorsaddedtomonthlyreporting

Further actions •Talentpoolandvolunteerpipelinedevelopmentandeffectivenessreporting

• Financial risks

Inability to manage financial risksreducesourreservesandunderminesourabilitytodeliverourprogrammeincompliancewithdonorrequirements.

Controls in place •Modellingofforeignexchangeexposureandcashflow,withregularreviewbytheAuditandRiskCommittee

•Monthlybudgetsreviewandquarterlyoperationalreviewsatorganisational,departmental,regionalandcountryofficelevel

•Internalaudits,annualuseofVSO’sself-audittoolbycountryoffices,andwhistleblowingandincidentreportingmechanisms

Progress in the year •FullFinanceManualupdateinresponsetofindingsfrominternalaudits,donorpolicyrequirements,externalauditrecommendations,andongoingprocessreview;trainingforfinanceandnon-financeteams

•Updateofprocurementguidelines;trainingforeachlocation

Further actions •Regionaldevelopmentof‘earlywarningsigns’toallowrapidresponsetoemergingfinancialrisks

VSO’S PRINCIPAL RISKS

1.Fundinglevelsanddiversity

2.Volunteerrecruitment

3.Financialrisks

4.Externalpositioning

5.ICScontractextension

6.Sustainable,appropriateoperatingplatform

HIGH

HIGH

LOW

LIKELIHOOD

IMP

AC

T

5

1

3

246


Risk and potential consequences Management

• External stakeholders

Positioning and marketing withexternal stakeholders doesnotreflectthevalueofVSOleadingtolossofincomeopportunitiesandunderminingthedeliveryofourstrategy.

Controls in place•Marketingstrategyandactionplan

Progress in the year•CleararticulationofVSO’svalueproposition,understoodandusedacrosstheorganisation

Further actions•Differentiatepriorityaudiencesanddevelopamarketingplanforconnectingwitheach

•Agreebrandidentitydefiningourlook,toneofvoiceandbehaviour•Ensureeveryemployeeandvolunteerknowswhatitmeansto‘livethebrand’

• ICS contract

ICS contracttargetsnotmetresultinginsignificantlossofincome.Inabilitytosecuretimelycontractextensionwithsuitableterms.

Controls in place•SeniorownershipoftherelationshipwithDFIDandconsortiummembers

•ContractManagementUnitandreportingstructuresinplacetomanagepipelineofplacements

Progress in the year•FullfinancialmodellingofICScompleted•ReviewofUKvolunteerconversion(frommarketingtodeparture)andrecommendationsbeingimplemented

Further actions•ManagementoftheplannedNationalAuditOfficeaudit

• Operating platform

Theexistingoperating platformisnotaffordableorflexibleenoughtorespondtochangingexternalenvironment.

Controls in place•Comprehensiveprojectcostingprocessinplacetoenablefullcostrecoveryongrants

•VSOfinancialmodelprovidesclarityonwheremoneyisbeingspent,benchmarkedtoexternalorganisations

Progress in the year•Allaspectsofouroperatingplatformreviewedtoidentifyhowwecanreducecostsandimproveeffectivenessandadaptability

Further actions•Completeorganisationalrestructuretodeliveramoreaffordableandeffectivestructurethatmaximisesresourcesforprogrammedelivery

•SimplificationoffinancialprocessesacrosstheorganisationtooptimiseuseofVSOresources

SAFETY, SECURITY AND MEDICALSafety,securityandmedicalincidentsatVSOaredefinedascrisisevents,criticaleventsorincidentsinorder

ofseverity.

Safety and security incidents reported 2016/17 Crisis 1 Critical Incident Total

VSOtotal 0 2 73 75

ICScontract–VSOdelivery(subtotalofVSOtotal) 0 2 31 33

ICScontract-sub-contractedagencies 3 8 165 176

Medical incidents reported 2016/17 Crisis 1 Critical 2 Incident 2 Total

VSOtotal 1 8 673 682

ICScontract–VSOdelivery(subtotalofVSOtotal) 0 4 571 575

ICScontract-sub-contractedagencies 0 10 Unknown * Unknown *

NOTES:1.Allcrisisincidentsarereviewedbyanexternaladvisor.TheVSOSecurityCommitteereviewsfindingsanddecidesifprogrammedeliveryworkcancontinue,dependantonlocalconditionsandavailablemitigationmeasures.

2.Majormedicalincidentsareclassifiedascriticalincidents,andminormedicalincidentsasincidents.3.MedicalsupportprovidedbythirdpartiesorotherICSsubcontractedagenciesisnotreported.

PeopleworkingforVSOandICSsub-contractedagenciesareencouragedtoreportanythingtheybelieveshouldberecognisedasanincident.Thismightincludecivilunrestneartovolunteerlocations,orpotentiallyhazardousenvironmentalconditions.ICSsub-contractedagenciesreportallsecurityincidentsandanyseriousmedicalincidentstoVSO;seriousincidentsoccurringwithinVSOandICSarereportedtoourdonorsastheyhappen.Aftertheevent,seriousincidentsarethoroughlyinvestigatedtocontinuouslyimproveoursystems.Werespondfullytointernalandexternalincidentreviewsbydemonstratingthevalidityofexistingmeasuresandtoidentifyareasofimprovement.WefollowtheguidelinesanddefinitionsoftheCharityCommissioninourreportingofseriousincidentstothem.

A premature baby is given essential skin on skin care by his mother at a VSO supported Neonatal Intensive Care Unit at Lira Regional Referral hospital, Uganda.

©V

SO/ P

ete

r Cato

n


Voluntary Service OverseasRegistered in England & Wales as a company limited

by guarantee (00703509) and Charity (31757)

VSO Trading LimitedRegistered in England &

Wales (2315724)

VSO IrelandAcquired 16/17. Charity.

Registered in Ireland (351799)

British Executive Services Overseas

LimitedDormant. Registered in

England & Wales (01056119)

Beijing VSO Consulting

Company LimitedWinding-up. Wholly

foreign-owned enterprise. Registered in China

AspartofourrenewedPeopleFirststrategy,VSOhassimplifiedourgovernanceandorganisationalstructure.

Governance structureOurfederatedstructureendedin2015/16.In2016/17,VSOhasoperateddirectlythroughbranchofficesinKenya

andthePhilippines.On31January2017,VSOIreland,amemberoftheformerVSOfederation,wasacquiredbyVSOInternational.NoconsiderationwaspaidbyVSOInternational,andthegiftisrecognisedasincomeintheyear.

Organisational structureWehavereducedseniormanagementandsimplifiedourprogrammestructure.Wecontinuetoensurethatit

costsuslesstodeliverprogrammeimpact.Organisationalchangethatbeganin2016/17willcontinuein2017/18.Itwillreduceactivityandcostswherethereisnoprogrammeorstrategicfinancingtosupportthem,establishclearlinksbetweensupportcosts,agreedprogrammefinancingandthedeliveryofourstrategy,andrigorouslyassessthereturnoninvestmentofunrestrictedspend.

OUR STRUCTUREVoluntaryServiceOverseas(VSO)isregisteredasacharityinEnglandandWalesandasaScottishcross-

bordercharity,registrationnumberSCO39117.VSO’sactivitiesinScotlandarethesameasthosecarriedoutinEnglandandWales.AsrequiredbytheOfficeoftheScottishCharityRegulator,VSOisreportingonitsScottishactivitiesasanintegralpartofthisreport.

STRUCTURE, GOVERNANCEAND MANAGEMENT

OUR GOVERNANCE AND MANAGEMENTVSOisgovernedbyitsInternationalBoardofTrustees.TheInternationalBoardsetsthestrategicdirection

forVSOandensureswemeetsourobjectives.Itoverseesgovernanceandisresponsibleforupholdingtheorganisation’svalues.SometasksoftheInternationalBoardaredelegatedtosub-committeesandadhoccommittees.Sub-committeesarerequiredtoreportbackateachInternationalBoardmeeting.

International Board Of TrusteesStatutory directors, trustees and members

of Voluntary Service Overseas

The Governance CommitteeIB sub-committee

Responsible for ensuring governance arrangements are robust, managing the framework for policy or remuneration of VSO senior management, recommending

potential new trustees to the IB, and reviewing VSO’s governance arrangements

Executive BoardResponsible for the operational oversight and management of the global work of

Voluntary Service Overseas

The Audit And Risk CommitteeIB sub-committee

Responsible for assessing the effectiveness of operational and financial risk

management and internal control

VOLUNTARY WORKFORCEVolunteersareadistinctivepartofVSO’sapproachtodevelopment.Theyalsocontributetothesystemswhich

helpusdeliverprogrammes.Thisyear450peoplegloballycontributedover15,000hoursacrossarangeofactivities:facilitatingevents,selecting

volunteers,undertakingresearch,speakingaboutVSO’swork,auditing,andmoderatingonlinelearningandsupport.Weappreciatethemall.

APPROACH TO REMUNERATIONTodeliverourmission,VSOneedstoattracthighquality,committedpeoplewhocandriveorganisational

performance.VSO’spayphilosophyisbasedontheprinciplesoffairness,internalequityandexternalcompetitiveness.Webelievethatwhileallemployeesshouldbecompensatedfairlyfortheirrole,remunerationisnotthemaindriverofperformanceandinnovation.VSOdoesnotoperateabonusscheme.Theremunerationframeworksetsoutpaybandsclearlyandisopenlyavailabletoallemployees.ThissupportsVSO’saimoffosteringandpromotingfairnessandteamwork.

To ensure internal equity, VSO considers:•Jobpurpose–thescope,depthanddifficultyofthework•Thelevelofengagementwithothers-communicatingandconnectingwithothers•Delivery-levelofplanningandorganisingnecessarytosuccessfullyexecuterole,andhowtherolefitswithintheteamorfunction.Externalcompetitivenessisachievedbybenchmarkingsalariesagainstactualpayforsimilarpositions.

GENDER PAY REPORTING FOR UK EMPLOYEES UKgenderpayreportingregulationscameintoeffectfrom2017,requiringthereportingofdifferencesinthe

averageandmedianpaybetweenmenandwomen,andthegenderdistributionatdifferentlevelsofremuneration.•Median:themedianfemaleemployee(halfofthewomenearnmoreandhalfearnlessthanher)ispaid4.47%lowerthanthemedianmaleemployee.

•Mean:theaveragefemaleemployeeearns5.94%lessthantheaveragemaleemployee.

UK GENDER DISTRIBUTION BY LEVEL OF REMUNERATION

Remuneration quartile Percentage of male employees (UK) Percentage of female employees (UK)

4thQuartile(upper) 50% 50%

3rdQuartile 34% 66%

2ndQuartile 37% 63%

1stQuartile(lower) 33% 67%


VSOisproudtoreportthatourgenderpaygapisbelowthenationalaverageof18.1%atthemedianforallemployees(9.4%forfull-timeemployeesonly).VSOguaranteesequalpayformenandwomeninthesameroles.Thisisachievedbyexternalbenchmarkingof

salariesperrole(asopposedtojobholder)everyyearagainstotherorganisationsinallthecountriesweoperatein.Rolesarereviewedinternallytoensureconsistencybetweencomparablepositions.Thejobholder’spersonalqualities(suchasgenderandage)arepurposefullyexcludedfromthisexercise.

The gender pay gap at VSO is mainly explained by two factors:•VSO’spopulationis60%femaleandweonlyreachaneven(50/50)distributionofgenderinthetopquarterwhenwelistouremployeesinorderbylevelofpay.

•Genderdistributionamongfieldsofexpertise:BusinessDevelopmentandHumanResourcesaretraditionallylesscompetitiveandlower-paidfieldsofworkand,therefore,generatelowerbenchmarkfigures.IntheUKtheseareasofworkhavetendedtoattractmorewomen.ThereisamorecompetitiveandhigherpaidmarketforFinanceandIT,whichtraditionallytendtoattractmoremen.

PAY POLICY FOR KEY MANAGEMENT PERSONNELThekeymanagementpersonnelatVSOarethetrusteeswhomakeuptheInternationalBoardandthe

executiveteammemberswhomakeuptheExecutiveBoard.AlltrusteesserveVSOvoluntarily.Theydonotreceiveanyemployeebenefitsandreceivepaymentonlyfor

reimbursementofout-of-pocketexpenses.Seenote5inthefinancialstatements.Theremunerationlevels,payandbenefitsfortheExecutiveBoardmembersaredeterminedbythe

InternationalBoardofTrustees,throughthegovernancesub-committee,inlinewiththeapproachtoremunerationdetailedabove.ThetotalcosttoVSOforremuneratingtheExecutiveBoardiscurrently£513,000.

EQUAL OPPORTUNITIESVSOiscommittedtotheprincipleofequalopportunitiesanddiversity.Weaimtotreatemployees,volunteers

andapplicantsforjobsfairly,andensuretheyarerecruited,trainedandpromotedsolelyonthebasisoftheirabilities.Wevaluetheirrighttodignityatwork.VSOdoesnottoleratebullying,discrimination,harassmentoranyotherformofunwantedbehaviour,whether

basedonage,casteorclass,civilpartnershipstatus,disability,ethnicornationalorigin,HIVstatus,maritalstatus,politicalorreligiousbeliefs,pregnancy,race,sex,sexualorientation,spentconvictionsofex-offenders,tradeunionactivityortransgenderstatus.ThisisreinforcedinourCodeofConduct,theframeworkthatallemployeesandvolunteersmustengagewithandadhereto.VSOstrivesconstantlytocreateaproductiveenvironment,representativeof,andresponsiveto,different

culturesandgroups,whereeveryonehasanequalchancetosucceedatalllevels.VSOensureswehaveanappropriatelevelofdisabilityawarenessandmakereasonableadjustmentsintheworkplacetohelppeoplewithdisabilitiesachievetheircareerpotentialandaccessvolunteeringopportunities.VSOiscommittedtoensuringthatallemployeesandvolunteersunderstandsocialinclusionandgenderissues.During2016/17weinvestedinexploringinclusivepractices,providingtimefordiscussionandreflectiononhowthemanyformsofdiscrimination-unequalpowerrelations,gender,andethnicaffiliation-canperpetuatepoverty.Thisincreasesthealignmentbetweenourprogrammingapproachandourinternalpracticeonequalopportunities.

SAFEGUARDINGProtectingchildren,youngpeopleandvulnerableadultsfromharmiscentraltoachievingourmissionof

endingglobalpoverty.Wearecommittedtoensuringthatpeoplewhoworkwithourorganisationarefreefromanyabuseor

exploitation.EveryonewhocomesintocontactwithanypersonassociatedwithVSOshouldatalltimesfeelrespectedandsafe.Toenforcethis,VSO’sglobalsafeguardingpolicyhasarangeofmeasuresandsystemstopreventanyformofabuse.Wehaveclearproceduresfordisciplinaryactionifthispolicyisbreached.Wehavetraineddesignatedsafeguardingofficersineachofourofficesandhaveathoroughprocessforreportingconcerns.Weundertakecontinuouslearningtounderstandsafeguardingissuesandconcerns.

ENGAGEMENT AND REPORTINGVSOengageswithandprovidesinformationtoitsemployeesthroughtheVSOintranetandorganisation-wide

emails,onlinediscussionsandlearningsessions.Employees,throughtheirunionrepresentatives,areconsulted

onissuesthataffectthem.VSO’sannualYouFirstsurveymonitorslevelsofengagementamongemployeesandvolunteers.Policiesandproceduresareinplaceforthehealthandsafetyofourpeople,andwemaintainincident-reporting

mechanisms.Concernscanberaisedthroughourcomplaintsandgrievanceprocedures.VSOencouragesallemployeesandvolunteersandexternalpartieswithseriousconcernsaboutanyaspectofVSO’sworkorsuspicionsaboutcriminalpracticestofollowourwhistleblowingprocess.Tostrengthenthiswehaverefreshedouronlinecriminalpracticesandwhistleblowingtrainingsotheprocessofreportingisfullyunderstood.

FUNDRAISINGTheCharities(ProtectionandSocialInvestment)Act2016

•WeareaproudmemberoftheFundraisingRegulatorandtheInstituteofFundraising,activelyfollowingtheircodesoffundraisingconduct.

•Inourrecruitmentandretentionofsupportersweusedthefollowingchannelsin2016/17:pressandinserts,directmail,telemarketing,door-to-doorfundraising,emailcommunications,andvideoanddigitaladvertisement.

•Professionalfundraiserswereusedinanumberofactivities.Themajorityofourrecruitmentofnewsupportersin2016/17camefromdoor-to-dooractivitywithagenciesAPPCOandHOME.Resultswerecloselymonitoredonaweeklybasiswithstatuscalls.Weshadowedthefundraiserstobetterunderstandhowtheyworkinthefield.Severalwelcomecallsweresenteverytwoweeks,whichwerelistenedtobytheVSOteam.Feedbackwasthensentbacktotheteam,andamendmentsmadetopractices.WeheldregularrefresherworkshopstoensurefundraiserswerewellinformedaboutVSOandourwork.WealsousedtelemarketingagencyEthicall,whichisaccreditedbyanumberoforganisationsincludingtheLivingWageFoundation,theDMAandtheGoodShoppingGuide.Ethicalldonates25%oftheirpost-taxprofitsbacktocharity.Itcarriesoutsubstantialtrainingofitscallers,includingatrainingsessionthatVSOleadsforallcallersonthecampaign.CallsareregularlymonitoredbybothEthicallandVSO,andweaimtolistentoaminimumof1%ofallcallswithVSOprovidingregularfeedbacktotheagency.

•VSOandallouragencieshavevulnerablepeoplepolicies.Allouragenciesrunregulartrainingtoensurethatthereisnotunreasonableintrusiononaperson’sprivacy,toprotectvulnerablepeople,andtoensurenounduepressureisgiven.

•Weseecomplaintsasextremelyvaluable.ComplaintsareusedbyVSOtohelpimproveoursystemsandprocessesinternally,aswellastheworkundertakenforusthroughexternalagencies.In2016VSOreceived126complaintsrelatingtoourfundraisingactivities.WecontinuetomonitorallfundraisingcomplaintsinaccordancewiththeFundraisingRegulatorandreporttotheregulatorannually.Complaintsareloggedandrespondedtowithinoneworkingdayandall2016complaintswerefullyresolvedinatimelymanner.

2 year old Laxmi and her brother waiting for a medical check-up from VSO volunteer, Dr Lynch. They have been living at the Internally Displayed Camp in Alchidada, Nepal since the 2015 earthquake destroyed their home.

©V

SO/

Sura

j Sh

akya


Mari Simonen *Chair

MemberoftheIndependentAuditandOversightCommitteeoftheUNRefugeeAgency(UNHCR),memberoftheBoardofPopulationActionInternational.

Stephen Pidgeon ^

FounderofmarketingagenciesTangibleandBrightsource;fundraisingspeaker,teacher,consultant,authorandconferencepresenter.

Sam Younger CBE *Vice Chair

ChairofCILExRegulation,councilmemberoftheAdvertisingStandardsAuthority,publicinterestobserverattheCharteredInstituteofTaxation.

Dr Noerine Kaleeba

PatronandfounderTASOUganda,vicechairUgandaNationalHealthResearchOrganisation,vicechairUgandaNationalHealthResearchOrganisationBoard,chiefexecutiveofficerNnabagerekaDevelopmentFoundation.

John Bason ^Honorary Treasurer

FinanceDirector,AssociatedBritishFoodsplc,UK,non-executivedirectorofCompassGroupplc,chairmanofFareshare,UK;workedasaVSOvolunteerinGhana.

Hardeep Jhutty

NHSImprovement,responsibleforoverseeingfoundationtrustsandNHStrusts,aswellasindependentprovidersthatprovideNHS-fundedcare.

Amanda Rowlatt CBE *

Seniorcivilservant.

Anjali Sen ^

Regionaldirector,InternationalPlannedParenthoodFederation,SouthAsiaregion,India.Actingdirectorexternalrelations,IPPFCentraloffice,London

Charles Abani

ChiefofPartyoftheUSAIDCivilSocietyproject–StrengtheningAdvocacyandCivicEngagement

(AppointedtotheBoardon20March2017)

Independent International Board sub-committee members as at 31 March 2017

Jose Gonsalves ^

INTERNATIONAL BOARD OF TRUSTEES

INTERNATIONAL BOARDThereisafulllistofdecisionsreservedfortheInternationalBoardinVSO’sScheduleofDelegation.The

InternationalBoardapprovesandmonitorsimplementationofVSO’slong-termstrategy,operationalplan,objectivesandbudget,keypolicies,constitutionalchangesandtheappointmentofthechiefexecutive.TheInternationalBoardreceivesmanagementinformationfromtheExecutiveBoardformallyeachmonth.

TheInternationalBoardmeetsregularly–threetimesayearinpersonandfourtimesayearviatelephone.

TRUSTEESTrusteesareusuallyappointedtotheInternationalBoardforaninitialperiodofthreeyears,whichcanbe

extendedforafurtherthree-yearperiod.Trusteesarenotremunerated,buttheirexpensesarereimbursedinaccordancewithVSO’sexpensespolicy.Trusteesarerecruitedthroughanopenselectionprocess.Theyreceiveacomprehensiveinductionon

appointment,andongoingtrainingandengagementthroughouttheirtermofoffice.TheyparticipateinfieldvisitstoVSOprogrammes,andactasexpertadviserstoVSOworkinggroups.Thisyearalltrusteesreceivedformaltrainingontrustees’dutiesandrecentchallengestocharities,andformallyre-examinedthequestionstheCharityCommissionsuggestsalltrusteesshouldaskthemselves.ReviewoftheperformanceoftheInternationalBoardisacontinuousprocess.Feedbackisrequestedbythe

vice-chairandreceivedaftereachboardmeetingandthiscontributestotheplanningofthenextmeeting.Thereisanannualself-evaluationandeachthirdyearthisiscarriedoutbyanindependentbody.IndividualtrusteesmakeannualcommitmentstoVSOoverandabovetheirresponsibilitiesasdirectorsandmembers.

Baroness Hilary Armstrong

BaronessArmstrongofHilltop,MemberoftheHouseofLords,workedasaVSOvolunteerinKenya,ex-memberofVSO’sParliamentaryvolunteerschemeinTanzania.

Chris Merry ^

Chiefexecutiveofficer,IpesGroup

* Governance Committee member ^ Audit and Risk Committee member

VSO’s ‘Phoning Out Poverty and AIDS’ (POPA) project in Maputo, Mozambique, is enabling widowed women like Maria Jacinto to set up phone credit businesses to help support their families.

©V

SO/ M

bu

to C

arlos M

ach

ili


THE EXECUTIVE BOARD AS AT 31 MARCH 2017

Dr Philip Goodwin

Chief Executive

“IwasavolunteerinTimbuktu,Mali.Workingalongsidecommunityfarmersinsucharemotepartoftheworldtaughtmesomuch.It’swhyIfeelsoprivilegedtobeabletoleadVSOtoday.”

Donné Cameron

Executive Director of Programmes

“VolunteeringasayounggraduateinSouthAfricainspiredmypersonalpassionforsocialjusticeandmydecisiontopursueacareerindevelopment.”

Andrew Webb

Executive Director of Business Development

“AftervolunteeringasapublichealthengineerinTanzania,thewayIsawtheworldandwhatIthoughtIcouldcontributewasforeverchanged.”

Kathryn Gordon

Executive Director of People

“Ifeelenergisedandhumbledtobepartoftheteamleadingandsupportingvolunteeringforwiderglobaldevelopmentandamamazedandfascinatedbythosewhochoosetostepinandvolunteer.”

Fabienne Arminjon

Executive Director of Finance – joined May 2017

“IhavevolunteeredinIndia,Sri-Lanka,HaitiandFrance;workingwithcommunitiestohelpshapeabetterfutureinspiresme.Ifeelprivilegedtousemyprofessionalskillstocontributetoliftingpeopleoutofpoverty.”

EXECUTIVE BOARDTheInternationalBoarddelegatesVSO’sday-to-daymanagementtothechiefexecutiveandtheExecutive

Board.TheExecutiveBoardhasoperationaloversightofVSO’sglobalwork.EachmemberisresponsibleforanareaofVSO’sglobaloperations:programmes,businessdevelopment,peopleandorganisationaldevelopment,andfinanceandcorporateservices.TheExecutiveBoardmeetsweeklytooverseeimplementationofstrategicandoperationalactivity,allocate

resources,setandmonitorstandards,anddeterminecoreapproachestohowVSOworks.TheExecutiveBoardformallyreviewsachievementsagainstVSO’sdevelopment,operationalandfinancialobjectivesquarterly,incollaborationwithsenioremployeesacrosstheorganisation.

VSO’S SUBSIDIARIESVSO’ssubsidiarycompaniesandbranchofficesareoperatedandmanagedinasimilarway,withdelegated

authoritytotheindividualsinthecompanyorbranchinaccordancewithVSO’sScheduleofDelegationsandultimatelyreportingtothechiefexecutive.Wherelocalregulationsrequireresidentnationalmembersordirectorstohavelegalcontrol,theyaredulyselected,inducted,andtrained.TheircontributionsareinvaluabletoVSOandbringlocalperspectivetogovernance.

Graham Loader

Executive Director of Finance and Corporate Services – resigned December 2016

FORMER MEMBERS OF THE EXECUTIVE BOARD

VSO is helping families make a more viable income from fishing through the ‘Making Markets Work for the Poor’ project in Cambodia.

©V

SO


REFERENCE AND ADMINISTRATIVE

DETAILS

Charity name:VoluntaryServiceOverseas(VSO)Charity registration:313757(EnglandandWales),SC039117(Scotland)Company registration: 703509Registered office: 100LondonRoad,KingstonuponThamesKT26QJCompany secretary:JennyOwen

OBJECTSVSO’s objects, for which the charity was established, are to:•advanceeducationandaidthereliefofpovertyinanypartoftheworld

•promotetheeffectiveuseofresourcesforthepurposeofadvancingeducationorrelievingpovertyinanypartoftheworld

•promotethevoluntarysector.

PUBLIC BENEFITVSOsetsouthowwewillworktowardsachievingourobjectives

throughourstrategyandoperationalplan.Thestrategywasrevisedin2016/17andouroperationalplanisreviewedannually.OurstrategyensuresweprovidepublicbenefitbyadheringtoguidancepublishedbytheCharityCommissiononthePublicBenefitrequirementundertheCharitiesAct2011.Bymonitoringperformance,inlinewithourstrategyandoperationalplan,ourExecutiveBoardmembersandtrusteesensurethatwecontinuetodeliverourobjectiveswhilebenefitingthepublic.

Governing document:VoluntaryServiceOverseasLimitedisgovernedbyitsArticlesofAssociation.Royal patron:HRHThePrincessRoyalPrincipal bank:BarclaysBankplc,1ChurchillPlace,CanaryWharf,LondonE145HPAuditors:CroweClarkeWhitehillLLP,StBride’sHouse,10SalisburySquare,LondonEC4Y8EH

FOR MORE INFORMATION:Website:www.vsointernational.orgFacebook:www.facebook.com/vso.internationalTwitter:www.twitter.com/VSO_IntlInstagram:www.instagram.com/vsointernationalYouTube:www.youtube.com/user/vsointernational

Have a question or feedback?Tel:(+44)2087807500Email:[email protected]

A class of students at Misemwa Primary School, Bungoma, practice Kenyan Sign Language as part of the ICS Deafway project.

©V

SO/ Jac

k Ho

wso

n


Thecharitytrustees(whoarealsothedirectorsofVSOforthepurposesofcompanylaw)areresponsibleforpreparingatrustees’annualreportandfinancialstatementsinaccordancewithapplicablelawandUKaccountingstandards(UKGenerallyAcceptedAccountingPractice).

Companylawrequiresthecharitytrusteestopreparefinancialstatementsforeachyear,whichgiveatrueandfairviewofthestateofaffairsofthecharitablecompanyandthegroup,andoftheincomingresourcesandapplicationofresources,includingtheincomeandexpenditureofthecharitablegroupforthatperiod.In preparing the financial statements, the trustees are required to:• selectsuitableaccountingpoliciesandthenapplythemconsistently• observethemethodsandprinciplesintheCharitiesSORP2016•makejudgementsandestimatesthatarereasonableandprudent• statewhetherapplicableUKaccountingstandardshavebeenfollowed,subjecttoanymaterialdeparturesdisclosedandexplainedinthefinancialstatements

• preparethefinancialstatementsonthegoingconcernbasisunlessitisinappropriatetopresumethatthecharitywillcontinueinbusiness.

ThetrusteesareresponsibleforkeepingproperaccountingrecordsthatdisclosewithreasonableaccuracyatanytimethefinancialpositionofthecharityandtoenablethemtoensurethatthefinancialstatementscomplywiththeCompaniesAct2006.Theyarealsoresponsibleforsafeguardingtheassetsofthecharityandthegroupandhencefortakingreasonablestepsforthepreventionanddetectionoffraudandotherirregularities.

Thetrusteesareresponsibleforthemaintenanceandintegrityofthecorporateandfinancialinformationincludedonthecharitablecompany’swebsite.LegislationintheUKgoverningthepreparationanddisseminationoffinancialstatementsmaydifferfromlegislationinotherjurisdictions.

STATEMENT ON DISCLOSURE TO OUR AUDITORSIn so far as the trustees are aware at the time of approving our trustees’ annual report:• thereisnorelevantinformation,beinginformationneededbytheauditorinconnectionwithpreparingtheirreport,ofwhichthegroup’sauditorisunaware

• thetrustees,havingmadeenquiriesoffellowdirectorsandthegroup’sauditorthattheyoughttohaveindividuallytaken,haveeachtakenallstepsthathe/sheisobligedtotakeasadirectorinordertomakethemselvesawareofanyrelevantauditinformationandtoestablishthattheauditorisawareofthatinformation.

ByorderoftheBoardofTrustees

Mari Simonen, Chair6July2017

WehaveauditedthefinancialstatementsofVSOfortheyearended31March2017whichcomprisetheGroupStatementofFinancialActivities,theGroupandParentCharitableCompanyBalanceSheets,theCashFlowStatementandtherelatednotes.

ThefinancialreportingframeworkthathasbeenappliedintheirpreparationisapplicablelawandUnitedKingdomAccountingStandards,includingFinancialReportingStandard102.TheFinancialReportingStandardapplicableintheUKandRepublicofIreland(UnitedKingdomGenerallyAcceptedAccountingPractice)

Thisreportismadesolelytothecharitablecompany’smembers,asabody,inaccordancewithChapter3ofPart16oftheCompaniesAct2006andtothecharitablecompany’strustees,asabody,inaccordancewithsection44(1c)oftheCharitiesandTrusteeInvestment(Scotland)Act2005.Ourauditworkhasbeenundertakensothatwemightstatetothecharitablecompany’strusteesandmembersthosematterswearerequiredtostatetotheminanauditor’sreportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthanthecharitablecompanyandthecompany’smembersasabody,forourauditwork,forthisreport,orfortheopinionswehaveformed.

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITORAsexplainedmorefullyintheStatementofTrustees’Responsibilities,thetrustees(whoarealsothedirectorsofthecharitablecompanyforthepurposeofcompanylaw)areresponsibleforthepreparationofthefinancialstatementsandforbeingsatisfiedthattheygiveatrueandfairview.

Wehavebeenappointedasauditorundersection44(1c)oftheCharitiesandTrusteeInvestment(Scotland)Act2005andundertheCompaniesAct2006andreportinaccordancewithregulationsmadeunderthoseActs.

OurresponsibilityistoauditandexpressanopiniononthefinancialstatementsinaccordancewithapplicablelawandInternationalStandardsonAuditing(UKandIreland).ThosestandardsrequireustocomplywiththeAuditingPracticesBoard’sEthicalStandardsforAuditors.

SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTSAnauditinvolvesobtainingevidenceabouttheamountsanddisclosuresinthefinancialstatementssufficienttogivereasonableassurancethatthefinancialstatementsarefreefrommaterialmisstatement,whethercausedbyfraudorerror.Thisincludesanassessmentof:whethertheaccountingpoliciesareappropriatetothecharitablecompany’scircumstancesandhavebeenconsistentlyappliedandadequatelydisclosed;thereasonablenessofsignificantaccountingestimatesmadebythetrustees;andtheoverallpresentationofthefinancialstatements.

Inaddition,wereadallthefinancialandnon-financialinformationintheStrategicreportandtheTrustees’AnnualReporttoidentifymaterialinconsistencieswiththeauditedfinancialstatementsandtoidentifyanyinformationthatisapparentlymateriallyincorrectbasedon,ormateriallyinconsistentwith,theknowledgeacquiredbyusinthecourseofperformingtheaudit.Ifwebecomeawareofanyapparentmaterialmisstatementsorinconsistenciesweconsidertheimplicationsforourreport.

FINANCIAL STATEMENTS Statement of trustees’ responsibilities

INDEPENDENT AUDITOR’S REPORT to the members and trustees of VSO


OPINION ON FINANCIAL STATEMENTSIn our opinion the financial statements:• giveatrueandfairviewofthestateofthecharitablecompany’saffairsasat31March2017andofitsincomingresourcesandapplicationofresources,includingitsincomeandexpenditure,fortheyearthenended;

• havebeenproperlypreparedinaccordancewithUnitedKingdomGenerallyAcceptedAccountingPractice• havebeenpreparedinaccordancewiththerequirementsoftheCompaniesAct2006,theCharitiesandTrusteeInvestment(Scotland)Act2005andRegulation8oftheCharitiesAccounts(Scotland)Regulations2006.

OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006In our opinion based on the work undertaken in the course of our audit: • theinformationgivenintheStrategicReportandtheTrustees’AnnualReportforthefinancialyearforwhichthefinancialstatementsarepreparedisconsistentwiththefinancialstatements;and

• theTrustees’AnnualReportandStrategicreporthavebeenpreparedinaccordancewithapplicablelegalrequirements.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTIONInlightoftheknowledgeandunderstandingofthecompanyanditsenvironmentobtainedinthecourseoftheaudit,wehavenotidentifiedmaterialmisstatementsintheStrategicreportorthetrustees’annualreport.

We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:• adequateaccountingrecordshavenotbeenkept,orreturnsadequateforouraudithavenotbeenreceivedfrombranchesnotvisitedbyus

• thefinancialstatementsarenotinagreementwiththeaccountingrecordsandreturns• certaindisclosuresoftrustees’remunerationspecifiedbylawarenotmade,or• wehavenotreceivedalltheinformationandexplanationswerequireforouraudit.

Naziar HashemiPartnerForandonbehalfofCrowe Clark Whitehill LLPStatutoryAuditorLondon

19July2017CroweClarkWhitehillLLPiseligibletoactasanauditorintermsofsection1212oftheCompaniesAct2006.

CONSOLIDATED STATEMENT of financial activites for the year ended 31 March 2017

Income and Expenditure Note

Unrestricted funds £’000

Restricted funds £’000

Total 2017

£’000

Unrestricted

funds £’000


Total 2016

£’000

Income from:

Donationsandlegacies2

StrategicgrantfromDepartmentforInternationalDevelopment

20,300 - 20,300 22,000 - 22,000

Contributionsfromgovernmentalbodies 24,761 11,655 36,416 26,263 15,299 41,561

Othergrants,donationsandlegacies 8,899 7,911 16,810 7,650 6,182 13,833

Othertradingactivities 2

Communityprojects,eventsandvolunteerfundraising

3,592 37 3,629 407 3,198 3,605

Incomefromlettings 183 7 190 101 1 102

Bankinterestandinvestments 132 - 132 131 - 131

GiftofVSOIreland 9 953 - 953 - - -

Total income 58,820 19,610 78,430 56,552 24,680 81,232

Expenditure on:

Raisingfunds 6,074 - 6,074 7,213 - 7,213

Charitableactivities 3

Education 13,007 8,857 21,864 7,409 8,330 15,739

Health 6,726 3,805 10,531 5,789 6,957 12,746

Livelihoods 8,219 5,791 14,010 6,202 7,559 13,761

Coreapproaches 3,298 1,407 4,705 2,241 1,548 3,789

ICSconsortiumcontracts 18,378 - 18,378 20,049 - 20,049

Interestpayableandsimilarcosts 20 85 - 85 53 - 53

Total expenditure 55,787 19,860 75,647 48,956 24,394 73,350

Net income 4 3,033 (250) 2,783 7,596 286 7,882

Actuarial(losses)ondefinedbenefitpensionscheme

20 (126) - (126) (1,370) - (1,370)

Net movement in funds 2,907 (250) 2,657 6,226 286 6,512

Reconciliation of funds

Totalfundsbroughtforward 15,383 6,246 21,629 9,157 5,960 15,117

Total funds carried forward 18,290 5,996 24,286 15,383 6,246 21,629

AllamountsrelatetocontinuingactivitiesThenotesonpages51to68formpartofthesefinancialstatements.


BALANCE SHEETS as at 31 March 2017

CONSOLIDATED CASH FLOW STATEMENTfor the year ended 31 March 2017

Note2017

£’000

2016

£’000

Cash flows from operating activities

Netcashprovidedbyoperatingactivities 4,990 9,350

Cash flows from investing activities

Purchaseofinvestments 9 958 -

Purchaseofproperty,plantandequipment 8 (847) (999)

Netcashusedininvestingactivities 111 (999)

Change in cash and cash equivalents in the reporting period 5,101 8,351

Cashandcashequivalentsatthebeginningofthereportingperiod 26,784 18,432

Total cash and cash equivalents at the end of the reporting period 31,885 26,784

Reconciliation of net income to net cash flow from operating activities

Netincomeforthereportingperiod 2,783 7,882

Depreciationcharges 8 987 1,285

(Gain)oninvestments 9 (953) -

Decreaseindebtors 10 174 462

Increase/(decrease)increditorsfallingduewithinoneyear 11 2,875 (8,065)

(Decrease)/increaseincreditorsfallingdueaftermorethanoneyearandprovisions 12,13 (750) 9,156

Amountsrelatedtothedefinedbenefitpensionschemeincludedwithinthestatementoffinancialactivities 20 (126) (1,370)

Net cash provided by operating activities 4,990 9,350

Analysis of cash and cash equivalents

Cashatbankandinhand 20,133 15,185

Short-termcashdeposits 11,752 11,599

Total cash and cash equivalents 31,885 26,784

Note

Group2017

£’000

Group 2016

£’000

Charity 2017

£’000

Charity

2016 £’000

Fixed assets

Tangibleassets 8 1,245 1,388 1,235 1,388

Investments 9 - - 953 -

Total fixed assets 1,245 1,388 2,188 1,388

Current assets

Debtors 10 10,459 10,633 10,940 11,228

Short-termcashdeposits 11,752 11,599 11,000 11,000

Cashatbankandinhand:

ICSworkingcapitaladvance(UK) 6,206 5,737 6,206 5,737

IntheUK 12,436 6,704 11,525 6,704

Overseas 1,490 2,744 1,484 2,744

Total current assets 42,343 37,418 41,155 37,414

Liabilities

Creditors:amountsfallingduewithinoneyear 11 (6,983) (4,108) (6,809) (4,104)

Net current assets 35,360 33,310 34,346 33,310

Totalassetslesscurrentliabilities 36,605 34,698 36,534 34,698

Creditors:amountsfallingdueafteroneyear 12 (7,839) (8,200) (7,839) (8,200)

Provisionsforliabilities 13 (4,480) (4,869) (4,480) (4,869)

Total net assets 24,286 21,629 24,215 21,629

Funds:

Restrictedincomefunds 14,16 5,996 6,246 5,996 6,246

Unrestricted funds:

Designatedfunds

Pensiondeficitrepaymentplanfund 15,16 (4,102) (4,293) (4,102) (4,293)

Changeprogrammefund 15,16 1,203 1,443 1,203 1,443

ICSfund 15,16 1,755 2,677 1,755 2,677

Fixedassetfund 15,16 1,245 1,388 1,236 1,388

Generalfund 15,16 18,189 14,168 18,127 14,168

Total unrestricted funds 18,290 15,383 18,219 15,383

Total funds 24,286 21,629 24,215 21,629

Thenotesonpages51to68formpartofthesefinancialstatements.ThefinancialstatementswereapprovedbytheBoardofTrusteesandauthorisedforissueon6July2017.

JohnBason,HonoraryTreasureronbehalfofthetrustees


1 ACCOUNTING POLICIESBasis of preparationThefinancialstatementshavebeenpreparedinaccordancewithAccountingandReportingbyCharities:StatementofRecommendedPracticeapplicabletocharitiespreparingtheiraccountsinaccordancewiththefinancialreportingstandardapplicableintheUKandRepublicofIreland(FRS102)(effective1January2016)–CharitiesSORP(FRS102),theCharitiesAccounts(Scotland)Regulations2006andtheCompaniesAct2006.Assetsandliabilitiesareinitiallyrecognisedathistoricalcostortransactionvalueunlessotherwisestatedintherelevantaccountingpolicynotes(s).

ThecharitymeetsthedefinitionofapublicbenefitentityunderFRS102.

Theaccountshavebeenproducedonthegoingconcernbasis.Therearenomaterialuncertaintiesaboutthecharity’sabilitytocontinue.

Group financial statementsTheconsolidatedfinancialstatementsincorporatethefinancialstatementsofthecharityanditssubsidiaryundertakings(thegroup).Theresultsofthesubsidiaryundertakingshavebeenincludedlinebylineinthestatementoffinancialactivities.Balancesandtransactionsbetweenthecharityanditssubsidiaryundertakingsareeliminatedonconsolidation.Theoverallresultsofthegrouparemateriallythesameasthoseoftheparentcharity,thereforethecharityhastakenadvantageoftheexemptionallowedunderSection408oftheCompaniesAct2006innotpresentingitsownstatementoffinancialactivitiesinthesefinancialstatements.

Critical accounting judgements and key sources of estimation uncertaintyIntheapplicationofthecharity’saccountingpoliciestrusteesarerequiredtomakejudgements,estimatesandassumptionsaboutthecarryingvaluesofassetsandliabilitiesthatarenotreadilyapparentfromothersources.Theestimatesandunderlyingassumptionsarebasedonhistoricalexperienceandotherfactorsconsideredtoberelevant.Actualresultsmaydifferfromtheseestimates.

Thereisanongoingreviewofestimatesandunderlyingassumptions.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisediftherevisionaffectsonlythatperiod,orintheperiodoftherevisionandfutureperiodsiftherevisionaffectsthecurrentandfutureperiods.

Thekeysourcesofestimationuncertaintythathaveasignificanteffectontheamountsrecognisedinthefinancialstatementsaredescribedintheaccountingpoliciesandaresummarisedbelow:• Pensionliabilities–Thecharityrecognisesitsliabilitytoitsdefinedbenefitmulti-employerpensionscheme,whichinvolvesanumberofestimationsasdisclosedinnote20.

Intheviewofthetrustees,nootherassumptionsconcerningthefutureorestimationuncertaintyaffectingassetsandliabilitiesatthebalancesheetdatearelikelytoresultinamaterialadjustmenttotheircarryingamountsinthenextfinancialyear.

Fund accountingReservespolicesaregivenonpage29ofthefinancialreview.Reservesareeitherunrestrictedorrestrictedfunds.Restrictedfundsrepresentincometobeusedforaspecificpurposeasrequestedbythedonor.Incomeandexpenditureonthesefundsareshownseparatelywithinthestatementoffinancialactivities.

NOTES FORMING PART OF the financial statements for the year ended 31 March 2017

Unrestrictedfundsarethosethathavenothadarestrictionplacedonthembythedonorandareavailabletospendonactivitiesthatfurtheranyofthepurposesofthecharity.Designatedunrestrictedfundsarethosewhichthetrusteeshavedecidedattheirdiscretiontosetasidetouseforaspecificpurpose(seenote15).

IncomeIncomeisrecognisedwhenthecharityhasentitlementtothefunds,anyconditionsattachedtotheitem(s)ofincomehavebeenmet,itisprobablethattheincomewillreceived,andtheamountcanbemeasuredreliably.

Contractedfundsconstitutetheincomegeneratedviatheprovisionofaservice.Whereacontractactivityextendsforaperiodexceedingoneyearthesearetreatedaslong-termcontracts.Incomeisaccountedforasunrestrictedandanyexcessofincomeoverexpenditureduringthelifeofthecontractisshownasdesignatedfundsuntilthecompletionofthecontract(seenotes14and15).

Forrestrictedgrants,whereincomeisrelatedtoperformanceoractualexpenditureofthegrant,entitlementiseitherthecharityhavingincurredtheexpendituretowhichthegrantrelates,orthegranthavingbeenreceived,whicheveroccursearliest.

Forlegacyincome,recognitionistheearlierofprobatebeinggranted,theestatebeingfinalised,oradistributionbeingreceived.Entitlementtolegacyincomeisonlyconsideredprobablewhentheamountcanbemeasuredreliablyandthecharityhasbeennotifiedoftheexecutor’sintentiontomakeadistribution.Wherethecriteriaforincomerecognitionhavenotbeenmet,legacyincomeisatreatedasacontingentassetanddisclosedifmaterial(seenote10).

Probonoservicesandgiftsinkindforusebythecharityarevaluedattheestimatedvaluetothecharity.Giftaidrecoveredondonationsistreatedaspartoftherelatedgiftunlessspecifiedotherwisebythedonororinthetermsoftheappeal.

Expenditure and basis of allocation of costsExpenditureisrecognisedoncethereisalegalorconstructiveobligationtomakeapaymenttoathirdparty,itisprobablethatsettlementwillberequired,andtheamountoftheobligationcanbemeasuredreliably.

Expenditureonraisingfundsincludesthesalaries,directexpenditure,andoverheadcostsofthestaffintheUKandothercountrieswhereweworkwhoareengagedinfundraisingactivities,includingnegotiatinggrantsforoperationalprogrammesandorganisingfundraisingevents.

UnderCharitiesSORP(FRS102),VSOhaschosentoreportitscharitableexpenditurebythethreethematicareasandthecoreapproachessetoutinitsstrategicplan.Wherepossible,resourcesexpendedhavebeenallocateddirectlytotherelevantareas.Supportcosts,whicharethosefunctionsthatassisttheworkofthecharitybutdonotdirectlyundertakecharitableactivities,havebeenallocatedtothethematicareasandcoreapproachesonthebasisofemployeefulltimeequivalentnumbers.


ACCOUNTING POLICES (NOTE 1) CONTINUEDThecostsofrecruiting,selectingandtrainingvolunteers,matchingthemtoasuitableplacementandsupportingthemwhileintheirplacementandontheirreturnareincludedinotherdirectcosts(seenote3).Otherdirectcostsalsoincludethecostofprogrammemanagementanddevelopmentandotherprogrammeinputs,suchasworkshopsandstudyvisits.

Grants and consortium paymentsCooperationagreementswithsomeoftheformerVSOFederationmembershaveprovidedforcontinuedfundingforagreedactivitiesinlinewithVSO’smission.AlsoincludedunderthisheadingarecontractpaymentsmadetotheconsortiumpartnersoftheICSProgramme.Thesegrantsandcontractpaymentsarerecognisedasexpenditureintheyeartheyaredue.

Taxation and irrecoverable VATVSOisaregisteredcharityandassuch,ispotentiallyexemptfromtaxationofitsincomeandgainstotheextentthattheyfallwiththecharityexemptionsintheCorporationTaxesAct2010orSection256TaxationofChargeableGainsAct1992.Notaxchargehasarisenintheyear.Notaxchargehasariseninothersubsidiaries,includingournon-charitablesubsidiaryduetoitspolicyofgiftingalltaxableprofitstoVSOeachyear.

Incommonwithmanycharities,VSOisunabletorecoverthemajorityofVATthatisincurredonpurchasesofgoodsandservicesintheUK.IrrecoverableVATischargedasacostagainsttheactivityforwhichtheexpenditurewasincurred.

Pension costsPensioncontributionspaidbythecharityinrespectofemployeestoadefinedcontributionschemearechargedtothestatementoffinancialactivitieswhentheybecomepayable(seenote20).

Pensioncontributionspaidbythecharityinrespectofemployeestoadefinedbenefit,multi-employerschemearechargedtothestatementoffinancialactivitieswhentheybecomepayable.ThisisinlinewithFRS102requirementsformulti-employerschemeswheretheassetsareco-mingledforinvestmentpurposes,andbenefitsarepaidoutofthescheme’stotalassets(seenote20).AprovisionhasbeenrecognisedforthepresentvalueofVSO’scontributiontotheagreeddeficitreductionplan(seenotes13and20forfurtherdetails).

Foreign exchange transactionsForeigncurrencytransactionsaretranslatedattherateofexchangerulingatthedatesofthetransaction.Foreigncurrencybalances,aretranslatedintosterlingattherateofexchangerulingatthebalancesheetdate.Allexchangedifferencesaretakentothestatementoffinancialactivities.

Operating leasesRentalsareclassifiedasoperatingleaseswherethetitleremainswiththelessorandtheassetsareusedforlessthanexpectedeconomiclife.Operatingleasepaymentsandanyrelatedleaseincentivesarechargedtothestatementoffinancialactivitiesonastraightlinebasisoverthetermofthelease.

Incomefromthesub-lettingofofficespaceisalsoaccountedforonastraightlinebasisoverthetermofthelease,adjustedforleaseincentiveswhereapplicable.

Tangible fixed assets and depreciationTangiblefixedassetscostingmorethan£500arecapitalisedandincludedatcost,includinganyincidentalexpensesofacquisition.

Depreciationisprovidedtowriteoffthecostoftangiblefixedassetsovertheirestimatedusefuleconomiclivesonastraightlinebasisasfollows:

Assets held in the UK

Leaseholdimprovements Lengthofthelease

Furniture,equipment,fixturesandfittings 5years

Computerequipment 4years

Assets held overseas

Allcategories Fullyintheyearofacquisition

100%shareholdinginVSOTradingLimited Statedatcost

100%ownershipofVSOIreland Statedatcost

100%shareholdinginBeijingVSOConsultingCompanyLimited Statedatitsexpectedfuturevalue

ThetrusteesconsideritprudenttofullydepreciateequipmentandmotorvehiclespurchasedforuseoutsideoftheUKintheyearofacquisition,inviewoftheuncertaintyofconditionsintheoperatingenvironment.Itisthecharity’spolicytorecordtheseassetsasdisposalsafterthreeyears.

InvestmentsTheonlyinvestmentsVSOcurrentlyholdsareinitssubsidiarycompanies:

Realisedgainsandlossesareshowninthestatementoffinancialactivities.Short-termdepositsareheldwhencashinhandtemporarilyexceedsoperationalrequirements.

Financial instrumentsVSOhasfinancialassetsandfinancialliabilitiesofakindthatqualifyasbasicfinancialinstruments.Basicfinancialinstrumentsareinitiallyrecognisedattransactionvalueandsubsequentlymeasuredatthepresentvalueoffuturecashflows(amortisedcost).

Financialassetsheldatamortisedcostcomprisecashatbankandinhand,short-termcashdepositsandthedebtorsexcludingprepaymentsandaccruedincome.

Financialliabilitiesheldatamortisedcostcomprisetheshort-andlong-termcreditorsexcludingdeferredincomeandaccruedexpenditure.

Nodiscountinghasbeenappliedtothesefinancialinstrumentsonthebasisthattheperiodsoverwhichamountswillbesettledaresuchthatanydiscountingwouldbeimmaterial.

Atthebalancesheetdatethecharityheldfinancialassetsatamortisedcostof£36.4m(2016£32.3m)andfinancialliabilitiesatamortisedcostof£11.9m(2016£10.8m).

ProvisionsProvisionsarerecognisedwhereVSOhasapresentobligationresultingfromapasteventthatwillprobablyresultinthetransferoffundstoathirdpart,andtheamountduetosettletheobligationcanbeestimatedreliably.Aprovisionisrecognisedwherethereisuncertaintyregardingthetimingortheamount(seenote13).Provisionsaremeasuredatthepresentvalueoftheexpenditureexpectedtoberequiredtosettletheobligation.Theincreaseintheprovisionduetothepassageoftimeisrecognisedasaninterestexpense.


2 INCOME ANALYSISa. Contributions from governmental bodiesContributionsfromgovernmentalbodiesaredefinedasincomefrompublicinstitutionalagencies,includingthosewherethecontributionisfundedbygovernmentagencies.

b. Other grants, donations and legacies

c. Other trading activities

3 CHARITABLE ACTIVITIES



Total 2017

£’000

Total 2016 £’000

DepartmentforInternationalDevelopment

Corestrategicgrant 20,300 - 20,300 22,000

Otherincome 24,761 1,281 26,042 31,588

AustralianDepartmentforForeignAffairsandTrade - 1,448 1,448 1,410

BritishCouncil - 262 262 377

EuropeanUnion - 1,445 1,445 1,361

IrishAid - 312 312 371

NationalDepartmentofEducationPapuaNewGuinea - 1,603 1,603 808

NorwegianEmbassy - 777 777 567

ScottishGovernment - 431 431 626

Sweden/Norad - 666 666 835

SwissDevelopment - 824 824 1,185

UNAgencies - 1,796 1,796 1,208

USAid - 602 602 886

Otherpublicfunding - 208 208 339

45,061 11,655 56,716 63,561



Total 2017

£’000

Total 2016 £’000

BigLotteryFund - 542 542 571

ComicRelief - 780 780 734

Companies 539 4,243 4,782 2,974

CusoInternational - 129 129 69

Giftsinkindandprobonoservices 545 - 545 496

Individuals 5,941 39 5,980 6,016

Legacies 1,776 - 1,776 663

Majordonors 1 695 696 488

Othercharitableorganisations 7 202 209 884

Trustsandfoundations 82 1,279 1,361 851

Other 8 2 10 87

8,899 7,911 16,810 13,833



Total 2017

£’000

Total 2016 £’000

Communityprojects 32 - 32 38

Events 131 37 168 206

Lettingsandproperty 183 7 190 103

Volunteerfundraising 3,429 - 3,429 3,361

3,775 44 3,819 3,707

Grants and consortium payments

£’000

Direct staff costs £’000

Other direct costs £’000

Apportioned support costs

£’000

Total 2017

£’000

Total 2016 £’000

By core programme area

Education 37 6,958 12,095 2,774 21,864 15,739

Health 15 3,382 5,833 1,301 10,531 12,746

Livelihoods 23 4,049 8,402 1,536 14,010 13,761

Coreapproaches* 11 1,686 2,273 735 4,705 3,789

ICS consortium contracts

BalloonKenya 1,427 - - - 1,427 1,299

ChallengesWorldwide 1,340 - - - 1,340 1,271

LattitudeGlobalVolunteering 10 - - - 10 1,034

Pravah 330 - - - 330 147

Progressio 2,097 - - - 2,097 2,509

RaleighInternational 5,144 - - - 5,144 5,010

RestlessDevelopment 3,236 - - - 3,236 2,679

SkillshareInternational - - - - - 1,285

Tearfund 1,304 - - - 1,304 1,296

UnitedNationsAssociationInternationalService

2,108 - - - 2,108 2,126

YCareInternational 1,382 - - - 1,382 1,393

Total 18,464 16,075 28,603 6,346 69,488 66,084

Charitableactivities(excludingapportionedsupportcosts)includeprobonoservicesvaluedat£98,000(2016:£147,000).

Breakdown of apportioned costs

Supportcostsareapportionedtocharitableactivitiesandraisingfundsonthebasisofemployeefulltimeequivalentnumbers.Inthecurrentyear,apportionmenthasbeenbasedonglobalFTEfigures.IntheprioryearitwasbasedonUKFTEfigures.

£1,219,000(2016:£1,567,000)oftotalapportionedsupportcostsarecoveredbyrestrictedordesignatedfunds.Apportionedsupportcostsincludeprobonoservicesvaluedat£423,000(2016:£349,000).

GovernanceandCEOcostsincludecostsdirectlyrelatedtothechiefexecutiverole,includingremuneration,travelandexecutiveassistance,of£209,000(2016:£208,000).

Governance and

CEO costs £’000

Facilities and

purchasing £’000

Human resources

£’000

Finance and corporate

performance £’000

Information technology

£’000

Total 2017

£’000

Total 2016 £’000

Education 281 372 554 670 897 2,774 1,986

Health 133 174 260 314 420 1,301 1,420

Livelihoods 156 206 307 371 496 1,536 1,348

Coreapproaches 73 99 147 178 238 735 487

Apportioned support costs - charitable activities

643 851 1,268 1,533 2,051 6,346 5,241

Raisingfunds 60 80 119 144 192 595 1,802

Total apportioned support costs 703 931 1,387 1,677 2,243 6,941 7,043

*VSO’scoreapproachesaresocialaccountability,resilienceandsocialinclusion.ThesethreeapproachesunderpineverythingVSOdoesasanorganisationunderourPeopleFirststrategy.


4 NET INCOMING RESOURCESNetmovementinfundsisstatedafterthefollowingcharges:

2017 £’000

2016 £’000

Auditors’ remuneration (exclusive of VAT)

Feespayablefortheauditofthecharity’sannualaccounts 32 28

Feespayablefortheauditofthecharity’ssubsidiaries 14 3

Otherservices 30 16

Total fees payable to charity’s auditors 76 47

Depreciation

UKassets 430 444

Overseasassets 558 841

(Gain)/lossonexchangeratemovements(realisedandunrealised) (462) 51

Thegainonexchangeratemovementsintheyearto31March2017includesgainsof£654,000(2016:lossesof£35,000)ofunrealisedexchangeratemovements,whichhavepredominatelyarisenfromthetranslationofnon-sterlingcashbalancesforreportingpurposes.

5 TRUSTEES’ REMUNERATION AND EXPENSESThetrusteesreceivednoremunerationorotherbenefitsduringtheyear(2016:£nil).Trusteesarereimbursedfortheirtravelandaccommodationexpensesinattendingmeetings,visitingprogrammesoverseas,andotheractivitiesundertakenonbehalfofthecharity.Expensesreimbursedtotrusteesorpaidforontheirbehalfamountedto£12,500(2016:£26,000),paidto11trustees(2016:ten).

6 EMPLOYEE EMOLUMENTS INCLUDING THE COST OF KEY MANAGEMENT PERSONNEL

The2017wagesandsalariesfigureincludesanamountof£205,000(2016:£550,000)relatingtoseverancepay.ThisprimarilyrelatestoorganisationalchangetodeliverthePeopleFirststrategy(seenote15fordetails).

Thetablebelowshowswhichbandstheemolumentsofindividualstafffellintoduringthefinancialyear.

2017 £’000

2016 £’000

Salariesandwages 18,642 17,019

Socialsecuritycosts 1,406 1,094

Pensioncosts 848 1,961

Otheremployeebenefits 1,394 1,097

Temporaryemployees 386 306

22,676 21,477

2017 2016

£60,001-70,000 10 12

£70,001-80,000 6 6

£80,001-90,000 4 3

£90,001-100,000 5 1

£110,001-120,000 2 5

£120,001-130,000 3 2

£140,001-150,000 - 1

Totalemolumentsdisclosedintheabovebandsincludeterminationcostsof£43,000(2016:£80,000),andhealthbenefits,housing,dependant’seducationandincometaxcostsof£581,000(2016:£495,000).2016includedcontractforservicepaymentsof£61,000.

Thekeymanagementpersonnelofthecharitycomprisethetrusteeswhomakeuptheinternationalboard,andtheexecutiveteam,ledbythechiefexecutive.AlltrusteesserveVSOvoluntarily.Theydonotreceiveanyemployeebenefits;theyreceivepaymentonlyforreimbursementofoutofpocketexpenses(seenote5).AspartofthechangeprocessVSOimplementedinthepreviousfinancialyear,thekeymanagementpersonnelgroupwasreorganised,withtheteamofninereplacedwithafivememberexecutiveteam.Thetotalcompensationpayable,includingemployersNIcontributions,pensionandterminationcosts,was£595,000(2016:£782,000).

7 EMPLOYEE NUMBERSAveragemonthlyheadcountandfull-timeequivalent(FTE)numberofpersonsemployed:

2017Headcount

2017FTE

2016Headcount

2016FTE

UK 244 242 241 230

Restofworld 566 557 479 470

810 799 720 700

8 TANGIBLE FIXED ASSETS – GROUP AND CHARITY

Leasehold improvements

£’000

Furniture, equipment,

fixtures & fittings £’000

Computer equipment

£’000

Assets held overseas

£’000Total

£’000

Cost

At1April2016 1,326 184 1,253 2,079 4,842

Additions - 2 276 558 836

Acquisitionofasubsidiary 9 - 2 - 11

Disposals - - (248) (887) (1,135)

At 31 March 2017 1,335 186 1,283 1,750 4,554

Accumulated depreciation

At1April2016 379 140 856 2,079 3,454

Chargefortheyear 132 18 279 558 987

Acquisitionofasubsidiary 1 - - - 1

Disposals - - (246) (887) (1,133)

At 31 March 2017 512 158 889 1,750 3,309

Net book value

At31March2016 947 44 397 - 1,388

At 31 March 2017 823 28 394 - 1,245

Held by parent charity 815 28 392 - 1,235

Held by subsidiaries 8 - 2 - 10


9 INVESTMENTS

Investmentsheldbythecharityat31March2017comprise£2heldinVSOTradingLimited,£953,000heldinVSOIreland,and£nilheldinBeijingVSOConsultingCompanyLimited.VSOTradingLimitedandVSOIrelandLimitedarestatedatcostandBeijingVSOConsultingCompanyLimitedhasbeenwrittendowntoanilvaluebasedonexpectedfuturevalueofthisinvestment(seenote18forfurtherinformation).

10 DEBTORS

Group 2017

£’000

Group 2016

£’000

Charity 2017

£’000

Charity 2016

£’000

Group and Charity

Valueatthebeginningoftheyear - - - 12

Acquisition - - 953 -

Impairment - - - (12)

Value at 31 March - - 953 -

Group 2017

£’000

Group 2016

£’000

Charity 2017

£’000

Charity 2016

£’000

Tradedebtors 2,202 2,000 2,189 2,000

AmountsduefromVSOTradingLimited - - 511 667

AmountsduefromICSconsortiumpartners(workingcapitaladvances) 1,994 2,463 1,994 2,463

Otherdebtors 1,458 958 1,452 958

Accruedincome 4,119 4,512 4,116 4,440

Prepayments 686 700 678 700

10,459 10,633 10,940 11,228

AllamountsaboveareduewithinoneyearwiththeexceptionoftheamountsduefromICSconsortiumpartners,whichareduewithintwoyears.

Legaciesofwhichwehavebeennotified,butnotrecognisedasincome,arevaluedat£nil(2016:£125,000).

11 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group 2017

£’000

Group 2016

£’000

Charity 2017

£’000

Charity 2016

£’000

Tradecreditors 2,123 1,708 2,120 1,708

AmountsduetoVSOIreland - - 28 2

WorkingcapitaladvancefromDFIDforICS 500 - 500 -

Othercreditors 287 153 259 152

Pensioncontributionspayable 53 83 52 83

Taxationandsocialsecurity 622 503 617 503

Accrualsanddeferredincome 3,398 1,661 3,233 1,656

6,983 4,108 6,809 4,104

Incomeisdeferredwhenitisreceivedaheadofincomerecognitioncriteriabeingmet.

Group 2017

£’000

Group 2016

£’000

Charity 2017

£’000

Charity 2016

£’000

Balanceboughtforward - - - -

Receivedinyear 526 - 121 -

Balance carried forward 526 - 121 -

End of service

£’000

Volunteer flights £’000

Dilapidations £’000

Pension deficit £’000

Total £’000

At01April2016 172 118 286 4,293 4,869

Arisingintheyear - - - 211 211

Utilised/releasedintheyear (172) (26) - (402) (600)

At 31 March 2017 - 92 286 4,102 4,480

12 CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR – GROUP AND CHARITY

2017

£’000

2016

£’000

WorkingcapitaladvancefromDFIDforICS 7,700 8,200

Accruals 139 -

7,839 8,200

ICScontractpaymentsaremadeafterdeliveryofagreedresults.ThecontractprovidesanadvancefromDFIDtomeettheconsortium’sworkingcapitalrequirementsfordeliveryoftheprogramme.TheworkingcapitaladvancewillberepaidinfulltoDFIDbeforethecontractiscompleted.

Nointerestisincurredonanyoftheabovecreditors.

13 PROVISIONS FOR LIABILITIES – GROUP AND CHARITY

Volunteer flightsProvisionismadeinthefinancialstatementsforthecosttothecharityofreturnairfaresforlong-termvolunteersonplacementattheendofthefinancialyear.

DilapidationsTheprovisionfordilapidationsistocovertheprobablefuturecostsofrestoringpropertiestotheirrequiredconditionattheendoftheirlease.

Pension deficitVSOparticipatesinthePensionsTrust’sGrowthPlan,amulti-employerdefinedbenefitschemeintheUK.TherulesofthePlangivethetrusteesthepowertorequireemployerstopayadditionalcontributionsinordertoensuretheschemehassufficientassetstomeetitspastserviceliabilities.Iftheactuarialvaluationrevealsadeficit,thetrusteesagreearecoveryplantoeliminateitoveraspecifiedperiodoftime.TheagreedcontributionbyVSOtothecurrentrecoveryplanhasbeenrecognisedasaprovisionatthepresentvalueoffuturepayments(seenote20forfurtherdetails).

Movement on deferred income during the year


14 RESTRICTED FUNDS – GROUP AND CHARITYMovement on restricted funds

Project name Country

Opening balance

£’000

Incoming resources

£’000

Resources expended

£’000

Closing balance

£’000

ABVCinUganda Uganda - 578 43 535

Acceleratedcareandtreatmentformothersandneonates Tanzania 49 129 161 17

AYSRHRinPNG PNG - 222 222 -

BusinessofGirl’sEducation Mozambique (101) 260 159 -

Cash2project Tanzania 32 217 249 -

CoachingonthequalityofcareservicesandhealthmanagementandadministrationatSFRH

Tanzania 110 65 175 -

CocoaLifeCohort4 Ghana (1) 475 474 -

Effect-Education Myanmar 3 195 109 89

Enhancingemployabilitythroughvocationaltraining Tanzania 287 159 306 140

Enhancingthequalityofchildhoodeducation Rwanda - 426 426 -

EUGovernanceforCambodia Cambodia 348 494 303 539

EvaluatingandImprovingPrimaryEducation Africa - 312 312 -

HealthierLivesforPrisonInmatesinZimbabwe Zimbabwe - 193 180 13

InclusiveEducationinEthiopia Ethiopia - 162 151 11

InclusiveEducationinRwanda Rwanda - 211 211 -

IVO4ALL Global (46) 169 65 58

KnowledgeExchange Global 80 232 290 22

LandAccessNetworkforDevelopmentandJustice Zambia 70 101 171 -

Literacy,LanguageandLearningInitiative Rwanda - 172 172 -

MajiProject Malawi 133 104 237 -

MakingMarketsWorkforthePoorII Global 292 590 604 278

MNHinPNG PNG - 257 240 17

Nutrition&DieteticsSupportProject PNG - 194 163 31

Provincialcapacitybuildingproject/UNDP PNG - 256 256 -

PSIPSE Tanzania 19 137 156 -

ReducingNeonatalMortalityinUganda Uganda 13 486 256 243

RegionalHIV/AIDSInitiativeforSouthernAfrica RHAISA 201 565 738 28

RuralEnterprisesSupportProject Ghana 340 786 883 243

SRHR&HIVandAIDSinPrisons RHAISA 449 759 516 692

SistersforSistersEducation Nepal - 719 719 -

StrengtheningEducationManagementPLUS Cambodia - 232 232 -

StrengtheningHIV/AIDSServicesforMARP’sinPNG PNG - 166 166 -

TacklingEducationNeedsInclusivelyII Ghana 838 669 1,100 407

TALKAdolescents:TrainingandLocalKnowledge Zambia 36 174 177 33

T-LEDExtractiveIndustries Tanzania 257 - 238 19

TanzaniaLocalEnterpriseDevelopment(Canada) Tanzania 84 941 887 138

TanzaniaLocalEnterpriseDevelopment(T-LED) Global - 289 137 152

TeacherEducationSupportProgram PNG 92 1,595 1,687 -

TEACHINGTOLEARN Nepal - 153 153 -

UgandaSchoolHealthandReadingProgramme Uganda 12 158 137 33

UnlockingTalentThroughTechnology Malawi 656 1,436 1,725 367

UnlockingTalentthroughTechnology-ScotGov Malawi 32 230 217 45

Youthdevelopmentprogramme Uganda - 274 (11) 285

Otherspecificprogrammefunds* 1,960 3,668 4,068 1,560

6,246 19,610 19,860 5,996

*Programmeslistedindividuallyhaveincomeorexpenditureover£150,000.Allotheramountsareincludedin‘Otherspecificprogrammefunds’.

Theclosingbalanceoftherestrictedfundscomprisestheunexpendedbalancesofdonationsandgrantsheldforspecificpurposes.Itisanticipatedthatanysurplusesonfundswillbeexpendedduringthecomingfinancialyear.

Movement on contracts

Opening balance

£’000

Contract income

£’000

Resources expended

£’000

Closing balance

£’000

InternationalCitizenService(ICS) 2,677 24,761 25,683 1,755

IncomeandexpenditurerelatingtotheabovecontractisrecordedundertheunrestrictedcolumnontheConsolidatedStatementofFinancialActivities.TheclosingbalanceisshownonthebalancesheetasadesignatedfundforICS.Theincomeandexpenditurefortheprioryearwas£26.3mand£25.6mrespectively.

15 UNRESTRICTED FUNDS – GROUP AND CHARITYMovement on unrestricted funds

General fund £’000

Pension deficit repayment plan

£’000

Change Programme

£’000ICS

£’000

Fixed assets £’000

Total £’000

At1April2015 5,206 (3,264) 2,210 3,329 1,676 9,157

Surplus/(deficit)fortheyear 7,314 (1,029) (767) 708 - 6,226

Transfersbetweenfunds 1,648 - - (1,360) (288) -

At 31 March 2016 14,168 (4,293) 1,443 2,677 1,388 15,383

Surplus/(deficit)fortheyear 3,878 191 (240) (922) - 2,907

Transfersbetweenfunds 143 - - - (143) -

At 31 March 2017 18,189 (4,102) 1,203 1,755 1,245 18,290

Designated funds

Pension deficit repayment plan fundThepensiondeficitrepaymentplanfundisequaltothepresentvalueoffuturecontributionspayablebyVSOtomeettheobligationresultingfromafundingagreementtoeliminatethefundingdeficitonthePensionsTrustGrowthPlan(seenote20fordetails).

Change Programme fundThechangeprogrammefundwassetuptofinanceorganisationalchange,whichensuresthatactivitiesareprioritisedandfocusedonamissionbasisandresourcesareefficientlydeployedatprogrammedeliverylevelincountry.

Ofthecurrentyeardeficit,£180,000relatestostaffcosts,includingredundancies,£30,000relatestotravelandaccommodationcostsforleadershipdevelopmentchangeworkshops,£30,000isforconsultancyandprofessionalservices.

Thebalanceiscarriedforwardtofundtheongoingprogrammeofchange.


UNRESTRICTED FUNDS (NOTE 15 CONTINUED)ICS fundTheICSfundconsistsofanysurplusofincomeoverexpenditurerelatingtotheICScontracts.

The ICS 1 contract completed in 2015/16. From the surplus of £2.6 million:• £1.2millionderivedfromvolunteerfundraisingactivitieswasretainedforuseonICSinitiatives• £0.7mwasretainedforuseoncontractendcosts(forexample,redundancies)• Thebalancewasreleasedtogeneralfunds.

In2016/17£0.2moftheICS1fundraisingbalancewasinvestedinsecurityandmedicalenhancements.

TheICS2contractdeliveredasurplusof£0.7min2015/16andthiswascarriedforwardaspartoftheICSfundbalance.InthecurrentyeartheICS2contractdeliveredadeficitof£0.3m.Thecontractisforecasttoachieveasmallsurplusbutinrecognitionofuncertaintieswhichcouldreducethissurplus,incomehasbeendeferredattheyearendtoreportabreakevenpositiononthecontracttodate.

Thebalancecarriedforwardat31March2017,therefore,relatesonlytotheremainingICS1fundraisingbalanceandthe£0.7mforcontractendliabilities.

Fixed asset fundThefixedassetfundrepresentstheextenttowhichfundsareinvestedintangiblefixedassetsforusebythegroup.Transferstothefixedassetfundrepresentcapitaladditionslessdisposalsanddepreciationchargesfortheyear.

16 ANALYSIS OF NET ASSETS BETWEEN FUNDS

General fund

£’000

Pension deficit repayment fund

£’000

Change programme

fund £’000

ICS fund

£’000

Fixed asset fund

£’000


Total funds £’000

Fund balances at 31 March 2016 were represented by:

Tangiblefixedassets - - - - 1,388 - 1,388

Currentassets 18,852 - 1,443 10,877 - 6,246 37,418

Currentliabilities (4,108) - - - - - (4,108)

Long-termliabilitiesandprovisions (576) (4,293) - (8,200) - - (13,069)

Total net assets 14,168 (4,293) 1,443 2,677 1,388 6,246 21,629

Fund balances at 31 March 2017 are represented by:

Tangiblefixedassets - - - - 1,245 - 1,245

Currentassets 25,189 - 1,203 9,955 - 5,996 42,343

Currentliabilities (6,483) - - (500) - - (6,983)

Long-termliabilitiesandprovisions (517) (4,102) - (7,700) - - (12,319)

Total net assets 18,189 (4,102) 1,203 1,755 1,245 5,996 24,286

17 OPERATING LEASESAsat31March2017thecharitywascommittedtomakingnon-cancellableoperatingleasepaymentsovervariousperiods,assetoutinthetablebelow.

2017

£’000

2016

£’000

In the UK

Withinoneyear 391 391

Withintwotofiveyears 1,494 1,512

Inmorethanfiveyears 31 403

Overseas

Withinoneyear 364 588

Withintwotofiveyears 910 189

Inmorethanfiveyears 93 -

3,283 3,083

Asat31March2017thecharitywasentitledtoreceivenon-cancellableoperatingleasereceiptsduringthevariousperiods,assetoutinthetablebelow.

2017

£’000

2016

£’000

In the UK

Withinoneyear 71 71

Withintwotofiveyears 283 283

Inmorethanfiveyears 80 150

434 504

Thereceiptsdetailedaboverelatetothecharity’ssubleaseagreementforpartoftheVSOUKofficebuilding.ThecurrentagreementisduetoendinMay2023.

18 SUBSIDIARY COMPANIESTheVSOGroupcomprisestheparentcharity(VSO)andthreesubsidiaryundertakings. VSO Trading Limited (VSOT) AcompanylimitedbysharecapitalincorporatedinEnglandandWales(companynumber02315724).VSOTradingLimitediswhollyownedbyVSO.Asat31March2017theinvestmentofVSOinVSOTradingLimitedwas£2(2016:£2).

Theprincipalactivityofthesubsidiaryistoorganiseeventsforthepurposeofraisingfundsfortheparentcharity.ThenettaxableprofitofthesubsidiaryistransferredbyGiftAidtoVSO.TheresultsfortheyearofVSOTaregivenbelow. Beijing VSO Consulting Company Limited (VSOC) AcompanylimitedbysharecapitalincorporatedinPeople’sRepublicofChinainJune2012(companynumber110000450208624).

Duetodifficultiesarisingfromthecountry’soperatingenvironmentandtheneedforVSOtoplaceresourceselsewhereinordertoachieveitsobjectives,adecisionwastakenin2014/15towinddownBeijingVSOConsultingCompanyLimited.Thisprocesscantakeanumberofyearsanditexpectedtobecompletedin2018.


SUBSIDIARY COMPANIES (NOTE 18 CONTINUED)TheregisteredcapitalofthecompanywasinitiallyvaluedatUS$210,000.TheinvestmentheldbyVSOinBeijingVSOConsultingCompanyLimitedwasimpairedinprioryearsandbasedonitsfutureexpectedvaluewaswrittendowntoUS$nilinthelastfinancialyear.

InaccordancewithChineselegislation,thefinancialyearendofthesubsidiaryis31December.FullaccountsareavailableonrequestfromVSO.TheresultsfortheyearofVSOCaregivenbelow. Voluntary Service Overseas (Ireland) Limited (VSOI) AcharitablecompanylimitedbyguaranteeincorporatedinRepublicofIreland;charitynumberCHY15048,companynumber351799.Thecompanyisawhollyownedsubsidiaryandwasacquiredon31January2017.Therewasnocostofacquisitionandthenetassetvaluehasbeenrecognisedasincomeintheyear.Thenetassetsatacquisitionwere:

£’000

Fixedassets 10

Currentassets

Debtors 36

Bankandcash 961

Totalcurrentassets 997

Currentliabilities 54

Net assets 953

Theprincipalactivityofthesubsidiaryistoimplementprogrammesthatdeliversustainablechangeinthreecoreareas:education,healthandsecurelivelihoods.Thepost-acquisitionresultsofVSOIaregivenbelow.

Subsidiary results and closing funds postion

2017

VSOT £’000

2017VSOC £’000

2017VSOI

£’000

2016VSOT £’000

2016VSOC £’000

Totalincome 521 - 118 423 -

Totalexpenditure 494 - 67 378 5

Net income / (expenditure) 27 - 51 45 (5)

GiftaidpaymenttoVSO 27 - - 45 -

Retained profit / (loss) for the year - - 51 - (5)

Totalassets 636 8 1,088 672 8

Totalliabilities 636 8 73 672 8

Total funds - - 1,015 - -

19 RELATED PARTY TRANSACTIONSTherehavebeennorelatedpartytransactionsthatrequiredisclosure,otherthanthetransactionswithsubsidiarycompaniesdetailedbelow:

2017

£’000

2016

£’000

Grants made to subsidiary undertakings

VoluntaryServiceOverseas(Ireland)Limited-totalfor2016/17 115

VoluntaryServiceOverseas(Ireland)Limited-postacquisition 29

Donations received under Gift Aid from subsidiary undertakings

ProfitdonatedbyVSOTradingLimited 27 45

Payments received from subsidiary undertakings for management services

VSOTradingLimited 24 34

Asat31March2017abalancewasdueformVSOTradingtotheCharityof£511,222(2016:£667,000)andabalancewasduetoVSOIrelandof£28,479.Bothbalancesareexpectedtobesettledwithinoneyear.

20 PENSION COSTSScottishWidowsisthemainschemeavailabletoallUKemployees.VSOofferedthisdefinedcontributionschemefromOctober2009andithasbeentheprimaryschemeforthecharity’semployeessincethen.ScottishWidowshasalsoprovidedanauto-enrolmentschemeforalleligibleUKemployeessinceFebruary2014.

ThePensionsTrustGrowthPlanSeries4wasthepreviousmainscheme;ithasbeenclosedtonewVSOentrantssinceOctober2009.

Thecharityalsocontributestocertainpensionschemesforsomeemployeesbasedoverseas.

Thetablebelowshowsthecostofpensioncontributionsin2017and2016.

2017

£’000

2016

£’000

ScottishWidows 215 228

ThePensionsTrust 78 91

ThePensionsTrust-deficitreductionliability:unwindingofdiscounting 85 53

ThePensionsTrust-deficitreductionliability:revaluation 126 1,370

Other-countryspecificschemes,non-UK 344 219

848 1,961

The Pensions Trust Growth PlanVSOparticipatesinthePensionsTrustGrowthPlan(thePlan),amulti-employerscheme,whichprovidesbenefitstosome1,300non-associatedparticipatingemployers.ThePlanisadefinedbenefitschemeintheUK.

Asat31March2017VSOemployed23(2016:25)activemembersofthePensionsTrustDefinedContributionGrowthPlanSeries4.Deferredmembersandpensionersarealsointhedefinedbenefitscheme.

Asamulti-employerscheme,itisnotpossibleforVSOtoobtainsufficientinformationtoenableittoaccountforthePlanasadefinedbenefitscheme.ThereforeitaccountsforthePlanasadefinedcontributionscheme.


PENSIONS COSTS (NOTE 20 CONTINUED)ThePlanissubjecttothefundinglegislationoutlinedinthePensionsAct2004whichcameintoforceon30December2005.This,togetherwithdocumentsissuedbythePensionsRegulatorandTechnicalActuarialStandardsissuedbytheFinancialReportingCouncil,setouttheframeworkforfundingdefinedbenefitoccupationalpensionschemesintheUK.

ThePlantrusteescommissionanactuarialvaluationofthePlaneverythreeyears.ThepurposeoftheactuarialvaluationistodeterminethefundingpositionofthePlanbycomparingtheassetswiththepastserviceliabilitiesasatthevaluationdate.

TherulesofthePlangivethetrusteesthepowertorequireemployerstopayadditionalcontributionsinordertoensurethatthestatutoryfundingobjectiveunderthePensionsAct2004ismet.Thestatutoryfundingobjectiveisthatapensionschemeshouldhavesufficientassetstomeetitspastserviceliabilities,knownastechnicalprovisions.

AfullactuarialvaluationforthePlanwascarriedoutat30September2011.Thisvaluationshowedassetsof£780million,liabilitiesof£928millionandadeficitof£148million.Toeliminatethisfundingshortfall,theTrusteeaskedtheparticipatingemployerstopayadditionalcontributionstotheschemeovera10yearperiodfrom1April2013to31March2023.

AfullactuarialvaluationforthePlanwasagaincarriedoutat30September2014.Thisvaluationshowedassetsof£793million,liabilitiesof£970millionandadeficitof£177million.Toeliminatethisfundingshortfall,theTrusteeaskedtheparticipatingemployerstopayadditionalcontributionstotheschemeforanadditional2.5years,upto30September2025.

VSO’s additional deficit reduction contributions to date are as follows:

£’000

2013/14 371

2014/15 382

2015/16 394

2016/17 439

Thefinal2016/17instalmentof£37kwaspaidinApril2017.Cashpaymentsin2016/17were£402k.

TherecoveryplancontributionsareallocatedtoeachparticipatingemployerinlinewiththeirestimatedshareoftheSeries1andSeries2schemeliabilities.

WherethePlanisindeficitandwheretheemployerhasagreedtoadeficitfundingarrangement,theemployermustrecognisealiabilityforthisobligation.Theamountrecognisedisthenetpresentvalueofthedeficitreductioncontributionspayableundertheagreementthatrelatestothedeficit.Thepresentvalueiscalculatedusingthediscountratedetailedinthesedisclosures.Theunwindingofthediscountrateisrecognisedasafinancecost.

Present values of provision

31 March 2017 £’000

31 March 2016 £’000

31 March 2015 £’000

Presentvalueofprovision 4,102 4,293 3,264

Reconciliation of opening and closing provisions

2017

£’000

2016

£’000

Provisionatstartofperiod 4,293 3,264

Unwindingofthediscountfactor(interestexpense) 85 53

Deficitcontributionpaid (402) (394)

Remeasurements–impactofanychangeinassumptions 126 (67)

Remeasurements–amendmentstothecontributionschedule - 1,437

Provision at end of period 4,102 4,293

Income and expenditure impact

2017

£’000

2016

£’000

Unwindingofthediscountfactor(interestexpense) 85 53

Remeasurements–impactofanychangeinassumptions 126 (67)

Remeasurements–amendmentstothecontributionschedule - 1,437

Costs recognised in the SOFA 211 1,423

Assumptions

31 March 2017% per annum



Rateofdiscount 1.32 2.07 1.74

Thesediscountratesaretheequivalentsinglediscountrateswhich,whenusedtodiscountthefuturerecoveryplancontributionsdue,wouldgivethesameresultsasusingafullAAcorporatebondyieldcurvetodiscountthesamerecoveryplancontributions.

ThePlanisclassifiedasa‘last-manstandingarrangement’.ThereforeVSOispotentiallyliableforotherparticipatingemployers’obligationsifthoseemployersareunabletomeettheirshareoftheschemedeficitfollowingwithdrawalfromthescheme.Participatingemployersarelegallyrequiredtomeettheirshareoftheschemedeficitonanannuitypurchasebasisonwithdrawalfromthescheme.

Althoughclosedtonewentrants,VSOcurrentlyhasnointentiontowithdrawfromthescheme.

7473 INTRODUCTION INTRODUCTION

THANK YOU

Ourworkwouldnotbepossiblewithoutthesupportanddedicationofmanypeople,partnersandorganisations.Fromthevolunteerswhogiveuptheirtimeandsalariestoworkinourprogrammesaroundtheworld,totheindividualswhochoosetoleaveagiftintheirwillandthestaff,supporters,andfundraiserswhoworktirelesslyonourbehalf.

Here are just some of the organisations and individuals who have made a vital contribution to VSO’s work:

Accenture

AUSAID

BGTanzania

BhartiInfratel

BigLotteryFund

BritishCouncil

Cadbury-Schweppes

Citi

ComicRelief

Cuso

DepartmentforInternationalDevelopment,UK

DepartmentofEducation,PNG

DepartmentofForeignAffairsandTrade,Australia

EuropeanUnion

FaroeIslandsGovernment

FHI360

GREATBritainCampaign

GregDykeandSueHowes

GuernseyOverseasAidCommission

HumanDevelopmentInnovationFund

IBM

IrishAid

Jhpiego

MannionDaniels

MastercardFoundation

MedicorFoundation

Mondelez

MottMacdonald

MrandMrsErrolPereira

NewVentureFund

NORAD

OilSearchFoundation

PalladiumInternationalLtd

PestalozziPCF

PharoFoundation

ProvincialCapacityBuildingProject

RandstadGlobalPartnership

RoyalNorwegianEmbassy

ScottishGovernment

Shell

SintAntoniusStichting

StavrosNiarchosFoundation

SueandGregDyke

SwedishInternationalDevelopmentAgency

SwissDevelopmentCorporation

Syngenta

TheAdrianandJaneFrostCharitableTrust

TheGrocers’Charity

TheKilwaughterChemicalCompanyLtd

TheKirbyLaingFoundation

TheMillionHoursFund

TheSwireCharitableTrust

TheZochonisCharitableTrust

UNICEF

USAID

Vodafone

WaterAid

WeeshuisDerDoopsgezinden

ZVMRangoonwalaFoundation

ZochonisCharitableTrust

THANK YOU

75INTRODUCTION

VSO

100LondonRoad

KingstonuponThames

KT26QJ

UK

+44(0)2087807500

[email protected]

vsointernational.org

youtube.com/user/vsointernational

vsointernational.org/blog

If you would like to know more about VSO’s work worldwide, visit www.vsointernational.org

VoluntaryServiceOverseasisregisteredinEngland(number00703509)RegisteredcharityinEnglandandWales(number313757)andScotland(numberSC039117)

ANNUAL REPORT - Volunteer abroad with Voluntary … world without poverty. VSO’S VISION 5...

Documents

Transcript of ANNUAL REPORT - Volunteer abroad with Voluntary … world without poverty. VSO’S VISION 5...