Trustees' annual report and financial statements 2014-15

Trustees’ report and financial statements for the year ended 31 March 2015 1

Company Number: 3666389Registered Charity Number: 1072453A company limited by guarantee

Trustees’ annual reportand financial statementsfor the year ended 31 March 2015

The Duke of Edinburgh’s International Award Foundation

Contents

Chair’s introduction 4

Our year in numbers 6

Trustees’ report Overview 8 Our aims, objectives and impact 10 Resourcing 16 Operations 20 Communications 24 Sustainable infrastructure 28 Structure, governance and management 32

Financial review 40

Independent auditors’ report to the members of The Duke of Edinburgh’s International Award Foundation 44

Consolidated statement of financial activities (incorporating the income and expenditure account) for the year ended 31 March 2015 48

Consolidated and charity balance sheet at 31 March 2015 49

Notes to the financial statements for the year ended 31 March 2015 50

Trustees’ commitment 65 Thank you 65

Appendix - structure, governance and management 66

2 The Duke of Edinburgh’s International Award Foundation


Ourvision

Our vision is to reach more young people from diverse backgrounds and equip them as individuals to succeed in life.

Ourambition

Our long term ambition is that by 2026, when The Duke of Edinburgh’s International Award celebrates 70 years, every eligible young person will have the opportunity to participate in the Award.

Our values

Our values are to be progressive and empowering, to ensure we are connected throughout our network to enable more collaborative working and to be diverse in our approaches to engaging with people and in encouraging challenging activities.

The Trustees present their report and the audited financial statements of the company limited by guarantee for the year ended 31 March 2015. In preparing this report the Trustees have complied with the Charities Act 2011, the Companies Act 2006, the Accounting and Reporting by Charities: Statement of Recommended Practice (revised 2005) (“SORP”), applicable accounting standards and the provisions of the Memorandum and Articles of Association for The Duke of Edinburgh’s International Award Foundation (also referred to as the Foundation). This report has been prepared in accordance with the Companies Act 2006 and also with regard to Charity Commission guidance on public benefit.


Chair’s introduction

I am very pleased to introduce this year’s Trustees’ annual report for The Duke of Edinburgh’s International Award Foundation (the Foundation).

The Duke of Edinburgh’s Award (the Award) was founded in the United Kingdom by HRH The Duke of Edinburgh KG KT, in 1956, in conjunction with Kurt Hahn, the German educationalist. Both were concerned that young people’s development was lacking in certain key areas, and they resolved to create a programme that would be a ‘do-it-yourself kit in the art of civilised living’.

Increasing our reachSince its inception, the Award has grown to become the world’s

leading youth achievement award, bringing together practical experiences and life skills to create committed citizens of the world and equipping young people for life and work. In 2013 we reached a milestone with more than one million young people taking part in Award activities and in 2014 we continued to see a year on year increase in participation. We have a presence in more than 140 countries and territories, making us a truly worldwide organisation.

Five years ago we made a decision to invest in the future of the Award by developing a set of tools that would allow us to meet increasing demand and need. We created a new visual identity, which has now been adopted by Award Operators the world over. We modernised our licensing processes, to ensure that the roles and responsibilities of Award Operators are clearly spelt

out and that our operational standards are consistently applied. This year, members of our staff team have been focusing on the validation of our National Award Operators’ licences and have been visiting each Award Operator in turn to carry out an in-depth quality assurance visit. Feedback tells us that these visits have been extremely useful for the Foundation and Award Operators alike, though the lead up to what inevitably has initially been viewed as an ‘inspection’ has often been rather nerve racking, particularly for national directors, who often have a very small team to support them.

Going digitalWe have continued rolling out our Online Record Book and other digital tools, empowering Award Leaders and young people to take more control of their Award programmes, but we have

0

200000

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600000

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1000000

1200000

Awards gained

Awards started

Participants

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a long way to go before we can report that the Award has truly gone digital. Change is always hard and it can create many unintended consequences. Adoption of some of the digital tools in particular is proving complex and resource intensive for both the Award Operators and the Foundation.

Generous supportOn the financial front, we continue to receive generous gifts from individuals, trusts and companies, many of whom support via the World Fellowship. We have also seen a growing proportion of our income coming from fees paid for services provided to Award Operators around the world. We are in the process of further diversifying our income streams. This year, largely due to income growth and investment performance, we have been able to replenish our general funds reserves by £1.1 million, helping to ensure the financial stability of the Foundation.

We remain indebted to our many supporters around the world who, despite the challenging economic climate, have continued to contribute financially to our work, enabling the Award to transform the lives of hundreds of thousands of young people worldwide. The World Fellowship has continued to flourish and our events programme has been extremely well supported. Harry Collins completes his term as Chair of the World Fellowship during the coming year and I

would want to place on record my immense thanks to him for the commitment he gives to the Fellowship on an almost daily basis.

Our Global Benefactor, Margaret (Maggie) Fountain, has once again proved to be an amazing supporter of our work and she has kindly offered to extend her tenure of the role for a further year. Maggie has spoken about the Award in a number of fora and on each occasion has helped members of the audience to connect personally with our work. Perhaps most memorably, this year she presented Gold Award certificates to recipients at St James’s Palace on behalf of HRH The Duke of Edinburgh KG, KT and spoke passionately about how the Award connects with her own values and experiences. My fellow Trustees and I continue to be truly grateful to Maggie for her exceptional contribution to our work.

Thank youI remain humbled by the resilience, commitment and passion of our volunteers, donors, staff and partners who work tirelessly to ensure that as many young people as possible have the access and opportunity to undertake the Award. I would also like to thank my fellow Trustees for their time and dedication and in particular HRH The Earl of Wessex who chairs the International Council, supporting committees and attends a significant number of Award events around the world each year. I would like to add a

personal note of appreciation to our Founder for his support, encouragement and mentorship for me over my 18 years as an International Trustee, particularly since 2007 in my role as Chair.

The Award provides young people with confidence, resilience and skills in areas such as communication, problem solving and leadership - exactly what employers and educational institutions look for when distinguishing candidates from each other in the worldwide fight for talent. The Duke of Edinburgh’s International Award equips young people for life. This year we’ve brought the Award to more than a million participants. We look forward to bringing it to many, many more in the future.

Gregory Belton CVO KCHS

Chair


Our year in numbers

43National

AwardOperatorsvalidated

Over190,000

volunteers

More than300,000

Awards gained

Equipping more young people around the world for life and work


Delivery inmore than

140countries and

territories

Over1,100,000

young peopleparticipating

More than300

IndependentAward Centre

licences signed

More than

580,000Bronze, Silver and

Gold Awards started

17New World

Fellows

Overview



The Duke of Edinburgh’s International Award is the world’s leading youth achievement award for young people, equipping young people for life and work regardless of their backgrounds, circumstances and abilities.

The Duke of Edinburgh’s International Award Foundation is ambitious for young people, in particular those aged between 14 and 24. We play a key role in meeting demand for the Award and driving its growth by increasing global awareness of the value of non-formal education.

Developing young peopleWe believe that what young people do and learn outside the classroom, often in their own time, is an essential part of their development. We think it should receive adequate recognition and appreciation.

The Award transforms individuals, communities and societies around the world, helping young people to exceed expectations. It allows their achievements to be consistently recognised worldwide through a unique, international accreditation.

The Award is:

• Open to all young people aged 14-24, regardless of their background and circumstances.

• About personal development and individual challenge: it is a non-competitive,

enjoyable, voluntary and balanced programme, which requires sustained effort over time.

• A non-formal educational framework which can complement formal education or offer a substitute where formal opportunities are not available.

• Comprised of three levels: Bronze, Silver and Gold – each progressively more challenging.

• Consists of four sections: Service, Skills, Physical Recreation and Adventurous Journey, and includes a Residential Project at Gold level.

Tried and testedThe Award defines what good non-formal education looks like; provides a tried and tested framework for its delivery in any context where young people might be gathered; and allows achievement to be recognised in a way that is consistent worldwide.

The Award provides a common platform for dialogue and sharing of experiences between groups of young people from different backgrounds and cultures; it allows donors to contribute to the development of new cohorts of empowered, forward thinking young people across the world; it allows those working with young people to use a tried, tested and globally relevant non-formal education tool.

Transforming livesFor those who already have some access to non-formal education, the framework of the Award helps to ensure the development of well-rounded character, rather

than just a focus on academic results. For many young people, such experiential learning provides the opportunity to discover talents that often don’t show up in the classroom and thereby develops untapped leadership potential. For at risk and marginalised young people, the effects can be truly transformational – providing opportunities, through genuinely life-changing experiences, to climb out of poverty, break cycles of deprivation, gain concrete experience and build the skills, behaviours and attitudes needed for a new and different life.

The Award has spread from the United Kingdom to more than 140 countries and territories, over one million participants each year and over 190,000 volunteers are now involved. With several countries now entering their fourth and a few entering their fifth decade of participation, the credibility and relevance of the Award is no longer in question, but its reputation and value must now be sustained and broadened.

Equipping young people for life:

The benefits or outcomes for young people include

increased confidence, resilience, problem-solving

skills and creativity. The impact of the Award

includes higher levels of educational attainment, improved employability, increased participation

in civic life and improved health and well-being.

Our aims, objectivesand impact



By 2020 we aim to:

Increase the number of young

people starting an Award

to 750,000.

Increase the number of

Awards gained to 500,000

each year.

Engage with more ‘at risk’

and ‘marginalised’ young

people (making up 20%

of all participants).

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11.9

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12.7

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13.4

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Our aims

Our December 2014 statistics showed continued and strong growth in the number of Awards gained and in both the percentage and total number of ‘at risk’ and ‘marginalised’ young people participating in the Award.

There was a small decrease in the number of young people starting their Award in 2014, although since 2012 this has increased by 88,000 (18% per annum).


Awards Bronze 200,641 177,525 12%gained Silver 81,058 86,442 -7%

Gold 28,886 25,097 15%Total 310,585 289,064 7%

Awards Male 153,467 140,209 9%gained Female 157,118 148,855 5%

Total 310,585 289,064 7%

Awards Male 49% 49%gained Female 51% 51%

At risk and marginalisedparticipants 152,114 138,144 10%

At risk and marginalisedpercentage 13.4% 12.7%

2014 2013 % GrowthAwards Bronze 380,178 379,324 0%started Silver 142,038 156,591 -9%

Gold 64,293 63,457 1%Total 586,509 599,372 -2%


Our objectivesIn 2014/15 our key objectives were:

• Licensing, quality assurance and improvement planning

Re-licensing and improvement planning with operators, to ensure that the quality of the Award is fit for growth and is based on a sustainable financial model

• Special Projects Development and strategic use of this grant aid fund across all National Award Operators

• Digital tools Development, implementation and high performance of suitable digital infrastructure, using online technology

• Operational income Income growth from existing sources as well as generating income from more diverse sources than previously achieved

• Raising the profile of the Award

Raising the global awareness of the Award via specific Foundation press/media activities in partnership with operators

Licensing, quality assurance and improvement planningForty-three National Award Operators were validated over the period with the remaining validations planned to be conducted between April and

September 2015. Of those validated, 30 received full licences (full members of the Association) with the remaining 13 having been granted accredited conditional licences (associate members of the Association). Validation documents are now being reviewed to ensure that the next phase of reviewing National Award Operators improvement plans is delivered effectively as part of the Foundation’s continuous process of quality assurance.

By March 2015 the Foundation had licensed over 300 Independent Award Centres, more than doubling the number of centres, participants and Awards gained via these operators over the course of the year.

Special ProjectsSpecial Projects fundraising efforts secured £484,000 in the year. The grant application process was re-focused and grant management process re-modeled. This resulted in a significant increase in the quality of projects solicited and developed.

Digital toolsWe now have three new tools to help us manage the Award worldwide, to sit alongside our public website and our brand centre: the Online Record Book, which enables Award participants, their leaders and Award Operators to track progression through sections and levels; the Online Learning Hub, which enables

National Award Operators, Independent Award Centres and the Foundation to communicate with one another, share best practice and undertake training; and Salesforce, which enables Foundation staff to manage the business processes and stakeholder relationships of the organisation.

The Online Record Book Release 4.0 (multi-language and archiving) went live in November 2014. A Project Control Group is now in place to provide governance on releases to the platform and a user group is about to launch, the members of which will be advocates for the Online Record Book and will contribute to suggestions for change. The Online Learning Hub was launched to National Award Operators in late 2014. A training module was added to the platform to provide online training for new users of the Online Record Book. A Course Development Group has been formed that will now prepare material to be launched on the hub as training courses and the hub will be used as a document repository for all documents required by delegates for Forum 2015.

Use of Salesforce continues to develop. This is now bringing together, in one system, all the disparate databases, address books and spreadsheets that Foundation staff have kept in their various departments and locations around the world. Staff have been trained in its use and a group of staff champions has been formed to encourage development.

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Operational incomeDonations from individuals and companies, trusts and foundations and in kind, all achieved growth in line with or better than targets. In addition, licence and Online Record Book participant fees began to form an important new income stream.

Raising the profile of the AwardA range of new communications and press/media materials was produced for the Foundation and the wider Award family. These included key messages, a media pack, template press releases, key statistics, translation guidelines and a news story syndication process for National Award Operators.

Operator brand support continued via our innovative online Brand Centre including the addition of several new templates. Brand briefings were delivered to National Award Operators and brand roll-outs continued for various territories. Thirty-six countries were directly supported throughout the year regarding a range of branding activities, including new website launches, signage, collateral and merchandise.

The successful achievement of the above objectives, along with many other activities undertaken by the Foundation, has had a significant impact across the Award family. The Foundation and the operators continue to experience the effects of change and adaptation instigated by the One Award Alliance project, which at times can be exciting and at other times frustrating, requiring great patience by all parties. These changes are supporting and enabling the operators to cope with the ever growing numbers of young people from increasingly diverse backgrounds who are benefitting from the Award.

The Trustees consider that these results provide considerable public benefit, notably to the advancement of citizenship and community development, to education and to working with groups of disadvantaged young people. These are three of the areas which the Charity Commission uses to determine charitable purpose and the Trustees are therefore satisfied that the charity complies with the Charity Commission guidance on reporting on public benefit (section 4 of the Charities Act 2011).


Our impact

Resourcing



The aims of our resourcing activities are to secure the financial resources needed to sustain and develop operations, to support the work of specific targeted communities undertaking the Award worldwide through our Special Projects, ensure that we have skilled and capable teams and that we develop and deliver appropriate support resources for our stakeholders.

In 2014/15, our resourcing aims were to:

• Continue to grow our World Fellowship and events programmes

• Work with National Award Operators to develop their own sustainable financial models and facilitate closer engagement between their fundraising functions and our own

• Diversify our income streams by developing our major gifts fundraising programme

• Grow our income from fees paid for services provided to Award Operators around the world via the implementation of our new licensing and participant fee business models

• Develop the skills and capabilities of Foundation staff, National Award Operators’ staff and volunteers

• Implement our Online Learning Hub

World Fellowship and events programmeWe are grateful for the exemplary dedication of our donors, fellows and benefactors, who have continued to provide generous personal commitment and philanthropic support throughout the year. We are also delighted to have welcomed new supporters to the Foundation’s family, each of whom brings fresh insights and introductions to their network, which in turn helps us to expand the reach of the Award.

Our Global Benefactor, Margaret Fountain, donated her third annual £500,000 instalment, and extended her original three-year commitment by a further year. Moreover, Maggie donated a further £100,000 during the year, in addition to her original commitment. The role of Global Benefactor is not, however, just about a financial donation. Maggie has acted as a superb ambassador for the Award wherever she has traveled throughout the world. This continued and ongoing relationship with our Global Benefactor is invaluable to the Foundation and the wider Award Family.

In the 27th year of the World Fellowship, performance was very strong, with the acquisition of two new World Fellowship Benefactors, 17 new World Fellows, many of whom paid their donation in full instead of via instalments, and four new Young Fellows. A further three World Fellows upgraded to Benefactor.

The World Fellowship is an exclusive global network of influential individuals, drawn from over 40 countries. These individuals are financially and personally committed to The Duke of Edinburgh’s International

Award Foundation. During the year, World Fellows were invited to an Anniversary Dinner at Buckingham Palace– in the presence of both HRH The Duke of Edinburgh KG, KT and HRH The Earl of Wessex – and a variety of events that showcased the work of the Award and presented unique and exciting experiences for attendees. The World Fellowship is also a ‘gateway’ into our global philanthropic work and a wonderful starting point for those seeking to make gifts of a more personal and transformational nature.

Our events are not an isolated component of our overall fundraising strategy but very much integrated within our broader set of fundraising initiatives.

This year’s events served to build key relationships, widen knowledge of the Award and generate generous donations. They included a World Fellowship trip to Rome and the Vatican for behind-the-scenes access of cultural value and a trip to Finland where The Earl and Countess of Wessex met Award participants and joined World Fellows on an exclusive Bentley experience. We were also beneficiaries of generous events organised by supporters, such as a special auction hosted by the Halcyon Gallery at the start of the year and a fundraising fashion show and dinner held at Windsor Castle, kindly organised by the Islamic Fashion Festival. Together these events have contributed over £700,000 of income for the Foundation’s work and provided many opportunities for future support.

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Helping National Award Operators to build sustainable funding modelsThe year witnessed the continued success of our revenue-share model with National Award Operators, as part of our commitment to capacity building. The revenue-share model is mutually beneficial to both National Award Operators and the Foundation, since new World Fellows can stipulate that they wish for up to 50% of their donation to be directed to a National Award Operator of their choosing. This approach resulted in £217,000 raised for National Award Operators, to promote and deliver the Award within their own countries.

The Royal Bank of Canada continues its very generous annual commitment of C$200,000, which is helping to support Award Operators in the United Kingdom, United States and Canada.

Income diversificationOver the past twelve months we have looked to diversify our income generation, through widening opportunities for people to give to the work of the Foundation and through charging for the provision of some services to the worldwide Award family.

To support both the growth in existing philanthropic income streams and identify areas for diversification, the Foundation’s Philanthropic Income Generation Strategy was agreed by the Trustees at the start of the year. As a result of our new strategy we are creating more transparent links between our fundraising activities and our charitable expenditure. One example of this is the development of three

innovative philanthropic funds, each supporting a different area of the Foundation’s global work. During the early part of 2015/16 we will continue to develop this idea and we will be able to offer the three funds as new, more bespoke, giving opportunities in 2015/16 and beyond.

The Foundation continues to receive valuable support from trusts and foundations, including another inspirational gift from the Tanaka Memorial Foundation. A number of applications to other Trusts and Foundations were progressed in the year with responses expected beyond the end of the financial year.

A further element to our income diversification strategy is our global alumni programme. This is in the early stages of development and towards the end of the year we began to consult with National Award Operators on the plans to launch an International Award Alumni Network.

2014/15 saw significant growth in income from fees paid for services provided by the Foundation to Award Operators. This has focused on establishing sustainable operational income streams, in particular from Independent Award Centres, for services such as training and use of digital tools. The introduction of the Foundation Pricing Policy and charging for the ORB has also increased debate and development with National Award Operators about their own pricing policies and practices.

Skilled and capable teams In the past year these activities have focused on a combination of providing support and tools to National Award Operators’


staff and volunteers as well as improving internal staff management and performance. The support and tools for National Award Operators included a better service for ‘inducting’ new national directors, reorientation of regional training panel members to help with implementation of new working practices and tools, the delivery of three successful regional conferences that were well attended by National Award Operator chairs and national directors and the launch of a major new resource ‘The Trustee Toolkit’. The Toolkit supports national chairs in the recruitment, induction and development of board members. Further tools are planned for 2015/16 including volunteer management guidance and performance management training available through the Online Learning Hub.

Future plansIn 2015/16 we will continue to strengthen our existing income streams and develop new ones, working with our supporters to provide opportunities for engagement with Award participants and meaningful recognition of inspirational gifts and commitment. We will continue to promote and increase recruitment of generous support through initiatives such as the World Fellowship, events, Special Projects and developing attractive, effective new philanthropic giving propositions. In addition, we will continue to grow our operational income, will develop and deliver appropriate support resources for our stakeholders including new content and enhancements to the Online Learning Hub and resources to support National Award Operator human resource and sustainable funding model development.

Operations



Our operations activities seek to provide support for and grow the number of National Award Operators and Independent Award Centres, support the development of the Award worldwide and use our Special Project grants to increase the number of at risk and marginalised young people starting an Award.

Our objectives for 2014/15 were to:

• Re-launch the Award in Nigeria and promote new country growth

• Work with National Award Operators, especially those that have completed their licence validation process, to support their development plans

• Review our Special Projects process with a view to increasing the number of at risk and marginalised young people starting an Award

• Increase the number of Independent Award Centres

• Provide Independent Award Centres with more direct support via regional operations officers

Nigeria and new country growth During the year Nigeria has gone through three phases (business development, secretariat induction and business planning/training) in its redevelopment strategy. Very good progress has been made with a licence validation review scheduled for May 2015.

Following interest from the Presidency of Rwanda to start the Award, the Secretary General and the Africa Regional Director visited the country and held high level meetings with the Ministers for Education and for Youth & Technology. This was followed by a visit by the proposed Rwandan Team to the Foundation’s London office as well as several meetings with representatives from the Foundation’s Africa Regional Office. Guidance and draft documents to help the Rwandan Team with the application to become a potential operator have been discussed with them with further progress expected in early 2015/16.

An application for a new Conditional Licence for the National Youth Award Division of the National Youth Services Council of Sri Lanka has been received with further discussions planned for early in 2015/16.

Following an approach to the Foundation, the planning process for Slovakia to establish a National Award Operator commenced in March 2015.

Licence validations and development plansIn the Africa region, during the year we completed the licensing of Benin, Lesotho, Sierra Leone, Swaziland, Togo, Madagascar and Seychelles, with signed licences for Cameroon and Sierra Leone pending while outstanding issues are addressed.

The Foundation supported the recruitment of national directors and succession planning in Kenya and South Africa, with Mauritius hosting a successful annual national directors’ conference. This focused on reciprocity, sustainability and profile. Improvement plans have been agreed and progressed with

a number of the Francophone countries, in particular Côte d’Ivoire, Ghana and The Gambia, as well as with Uganda.

In the Americas region, the USA National Award Operator returned its licence and Canada received a full licence. Jamaica and Trinidad & Tobago received accredited conditional licences and the regional office are working with these National Award Operators in preparing improvement plans. In addition, Barbados implemented the first sub-licence agreement in the Caribbean with the Barbados Cadet Corp.

By the end of the year seven National Award Operators in the Asia Pacific region had been issued with full licences with validation visits pending for the remaining countries in the region including Pakistan (April 2015) and Macau (May 2015). In October/November the Korea Youth Work Agency in South Korea hosted a very successful International Gold Event (see page 22) with the theme ‘Leadership for a Transformed Award’. This was followed by a productive International Conference and Asia Pacific regional National Award Operator conference.

In the Europe, Mediterranean and Arab States region validations took place in 16 National Award Operators. Finland, UK, Germany, Czech Republic, Gibraltar, Latvia, Malta, Slovenia and Israel received a full licence. Three National Award Operators are pending a full licence and four received a conditional licence. Training of trainers was organised in Romania, helping to increase the capacity of their training panel, and in the Czech Republic with representatives from five countries attending the latter.


A successful regional conference for both National Award Operator chairs and national directors was held in September. This was the first such conference where there was a separate programme for chairs, helping to achieve a high attendance by those post holders.

Independent Award CentresThe year has seen a significant increase in the number of licensed Independent Award Centres. To date, the growth has primarily been in the Asia Pacific and Europe, Mediterranean and Arab States regions and achieved via a combination of new centres in existing countries and centres in countries new to the Award. The Africa and Americas regions have been developing their plans to enable similar growth in 2015/16.

As at March 2015 there were 115 Independent Award Centres licensed in the Asia Pacific region. This reflects an increase of 44% on 2013/14, with notable growth achieved in China. In the Europe, Mediterranean and Arab States region there has been expansion into two new countries, Lebanon and Austria, with 160 centres registered by the year end.

Across these 160 centres, 1,224 Awards were gained and 7,377 young people have embarked on their Award journey. In the Africa region 15 centres transitioned to a new basic license and 12 in the Americas region.

To support this growth we have doubled the number of regional Independent Award Centre operations managers and delivered training targeted at Independent Award Centre volunteers in all four regions.

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Special ProjectsOur Special Projects fund was established to spearhead the development of the Award around the world. It aims to help extend the reach of the Award and give more marginalised and at risk young people the opportunity to participate in the Award. The Award can offer these young people a unique opportunity to build a sense of identity and establish a positive role for themselves in society.

Early in the year we reviewed the Special Projects grant application and grant management processes, we identified some weaknesses and re-modeled processes. Every project is subject to careful appraisal before funds are granted, as well as six-monthly reports and evaluation visits. The revised processes resulted in a significant increase in the quality of projects solicited and developed. Twenty-two applications were received from twenty countries in September 2014 and £195,000 paid in grants and other expenditure.

The Earl and Countess of Wessex hosted the annual Special Projects dinner with supporters hosting tables of guests. The dinner and other Special Projects donations generated a record £484,000 in the year.

International Gold EventThe International Gold Event is a global leadership programme for Gold Award Holders drawn from the next immediate generation of decision makers and influencers who will help to shape and deliver the Award worldwide. The 14th (and most recent) International Gold Event took place in South Korea in October 2014, with the theme ‘Leadership for a Transformed Award’. The International Gold Event has evolved over the last 40 years

into an advanced leadership training programme. The first event of this kind, known as The Commonwealth Gold Expedition, was hosted by Canada in 1967 and its emphasis was on expeditionary ventures. This year’s event brought together 75 Gold Award Holders, mostly aged between 25 and 35, from 34 countries. Using a mixture of lectures, workshops, field study visits and culminating in a set of presentations made by participants to members of the International Council, the event provided opportunities to contribute to the development of policy and practice throughout the Award family. During the event, eight emerging leaders representatives were elected to sit on the International Council for the next three years.

Future plansIn 2015/16 we plan to complete the validation, re-licensing and improvement planning processes with existing Operators, so as to ensure that the structure of the Award is fit for growth and is based on a sustainable funding model. This includes further work on National Award Operator improvement plans, enabling increases in the number of sub-licencees and participants per unit. In addition, we will put in place re-development plans for the Award in the USA, Nigeria and Sri Lanka, and progress the establishing of the Award in Rwanda and Slovakia. We will also implement a new franchisee conference and continue to increase the number of Independent Award Centres.

Communications



The aims of our communications activities are to gain global awareness of the Award, to promote the benefits of the Award, to ensure that members of the Award family have the support to deliver effectively, and to showcase and promote the Award internationally.


• Continue to raise awareness of the value of non-formal education and the profile of the Award worldwide, particularly with policy makers and the general public

• Further develop and enhance our brand, including increased support and tools for National Award Operators and Independent Award Centres

• Commence planning for our 60th Anniversary programme

Awareness raisingOur new Public Relations and Promotions strategy was finalised during the year. This strategy aims to position the Award’s brand internationally to ensure it is recognised globally by employers, parents and young people as the world’s leading youth achievement award.

National Award Operators work with their national/local press to raise the profile of the Award in their country with the Foundation helping to amplify this activity by sharing content and messaging, ensuring a consistent global voice.

During the year we refined and developed our key messages to ensure that all major audience groups, from policy makers to parents, understand the benefits that undertaking the Award provides. A new syndication process was also developed and launched, with National Award Operators being supplied with advance news stories for local tailoring and public relations usage.

During the year we developed our first global communications campaign that was launched early in 2015/16. ‘Award Holders at Work’ is a digitally delivered campaign that aims to help young people understand that the Award provides them with the skills employers are seeking and to know how to emphasise this within their CV/LinkedIn profile and during interviews. Crucially, the campaign also encourages more employers to look out for the Award during their recruitment process.

In January 2015 we produced and published the Foundation’s inaugural ‘Donor Report’ (‘Building the foundations for growth’). This well received publication focuses on how the Foundation has grown the Award and developed during 2013/14. It also introduces the Foundation’s ‘Wheel of Influence’ that acts as both a story-telling and an impact reporting tool and deepens our engagement with all our stakeholders including our donors.

We continued to develop our website (www.intaward.org) with additional sections, case studies and audio visual materials, together with new functionality to search by impact measure. Web and digital traffic grew versus the previous financial year, with the number of visitors to the site increasing by 40%.

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Brand roll-out and National Award Operator supportThe roll-out of our new visual identity continues across existing and new Operators. Our innovative on-line Brand Centre provides Award Operators with access to over 50 professionally designed materials (with many new templates added during the year) that can be tailored and edited to different country’s needs. This helps Award Operators save valuable design costs, with only local printing costs needing to be covered.

A range of new communications and press/media materials have been produced for the use of National Award Operators, ensuring that Award messaging is consistent around the globe. We directly supported 36 National Award Operators throughout the year regarding a range of branding activities, including new website launches, signage, collateral and merchandise.

60th Anniversary ProgrammeThe Duke of Edinburgh’s Award was founded in 1956 in the UK by HRH The Duke of Edinburgh KG, KT. The Award’s 60th anniversary provides a unique opportunity to help drive international Award growth. Increasing global understanding of the positive impact the Award has on young people and their communities will be key to generating Award awareness in 2016 and beyond. During the year we developed the 60th Anniversary communications concept that will bring together National Award Operators from around the world into one exciting campaign.


Future plansIn 2015/16 our Communications focus will include:

• Further developing and delivering the 60th Anniversary communications programme

• Supporting our triennial Forum event (which brings together National Award Operators from around the world) with high quality collateral and audio visual communications

• Launching ‘Award Holders at Work’ and developing the campaign as the year progresses by introducing new National Award Operators case studies and employer endorsements

• Establishing the Foundation’s historic global media coverage levels to set a benchmark against which the impact of future increased proactive media activity and campaigns can be assessed

• Continuing to roll-out our visual identity to new National Award Operators and Independent Award Centres

Sustainableinfrastructure



The aims of our sustainable infrastructure activities are to develop the infrastructure and delivery ability of Award Operators around the world.


• Continue to validate our existing National Award Operators and issue full licences

• Support our existing National Award Operators via agreed improvement plans and enhance their ability to grow the number of participants

• Measure Awards started and participation statistics more accurately with further development and take up of the Online Record Book

• Move the Foundation’s IT infrastructure onto virtual ‘cloud-based’ technology

• Develop and implement the Salesforce business support system

• Develop our outcome and impact framework

• Prepare the Foundation’s long term strategy

• Implement new pension arrangements

Validations, improvement plans and growing the number of participantsDetails on the activities and achievements relating to these sustainable infrastructure objectives have been included above under operations.

Online Record BookFollowing the formal launch of the Online Record Book at the start of the year we have continued to develop and enhance the system in line with feedback from National Award Operators.

Take up of the Online Record Book has been slower than expected, due to a combination of functionally requirements that were not in the initial release but have now been addressed, National Award Operator cost concerns and delays in their internal planning. We are working with Award Operators to address these concerns to enable a significant extension of country take up in the future.

During the year the statistics engine was built, but the decision was taken to process the 2014 statistics using the existing methods while we focus on increased take up of the Online Record Book.

IT infrastructureDuring the second half of the year we successfully moved from UK based IT servers onto a globally accessible cloud based platform. The benefits of this solution are several; firstly, the servers would have required full replacement in the short term, which would have been a significant financial investment. Secondly, our remote staff are now able to easily access a single IT filing structure, greatly improving document control and reducing duplication and confusion. Finally, as staff desktop PCs are now, in effect, only terminals, their usable life has been extended and will not require replacement for several years.

Data is securely backed up and the platform facilitates a significantly improved business continuity solution.

Outcome and Impact FrameworkIn preparation for the launch of the Foundation’s outcome framework, a literature review of existing academic research on the outcomes and impact of the Award was completed in August 2014. Following this review a new outcome framework strategy was finalised, questionnaires were developed and pilot countries were identified for participation in what we believe will be ground-breaking research into what young people get out of participating in the Award.


Long term strategy and three year operational and financial planIn July 2014 through to November 2014 the Foundation released an update of the strategic document ‘Transforming the Award’, which had underpinned the changes introduced at the 2012 Forum in Malta. The new document, ‘Equipping young people for life’, lays out the continuing path for the Foundation from 2014 until 2017 and sets the scene to engage members of the International Award Association in a wider strategic planning process at Forum 2015 and beyond.

Pension arrangementsFollowing the Foundation’s March 2014 withdrawal from The Pensions Trust’s Growth Plan, on 1 April 2014 the Foundation began contributing to The Duke of Edinburgh’s International Award Foundation Group Personal Pension Plan. This is a defined contribution pension scheme operated by Scottish Widows. This was a smooth transition and enabled the Foundation to successfully and efficiently implement auto-enrolment in August 2014.


Future PlansIn 2015/16 our focus will be on the successful delivery of the 2015 Forum in Toronto, including the review of the Association’s structure and constitution and selection of Forum 2018 host National Award Operator. In addition, we will pilot and then launch the outcome framework and further develop our digital infrastructure, using online technology, in particular the Online Record Book and Salesforce. This will focus on increased use, quality improvement, high performance and the first year of using the Online Record Book for our annual statistics collection.

During 2015/16 we will also commence the planning for the next generation of the Online Record Book. This will include an invitation to tender process with contracts expected to be awarded in spring 2016.

Structure, governanceand management



Reference and Administration DetailsThe Founder, the Trustees and Secretary General are listed on page 66 together with advisers to the charity and details of registered company and charity numbers and the registered office.

Structure of the FoundationThe Duke of Edinburgh’s International Award Foundation was originally established and registered as a United Kingdom based charitable trust on 10 November 1986. On 6 November 1998 it transferred its assets and business to this limited company, which is regulated by its Memorandum and Articles of Association.

The Founder of the Foundation is His Royal Highness The Duke of Edinburgh KG KT. There is a maximum of ten Trustees.

Relationship with National Award OperatorsThe Foundation has responsibility for facilitating the worldwide development of The Duke of Edinburgh’s Award. Generally, in countries where the Award runs on a substantial basis, the Foundation licenses National Award Operators to run and maintain the operation of the Award. In other countries the Award may be run by licensed Independent Award Centres (schools or organisations operating in a country where usually no National Award Operator exists).

The Duke of Edinburgh’s International Award Association The Duke of Edinburgh’s International Award Association (the Association) is a separately constituted unincorporated association of which all licensed National Award Operators are full or associate members, depending on the nature of their licence. The Association meets in Forum every three years to discuss membership issues. The Foundation provides support to the Forum through the development of the Forum agenda and discussion papers and the provision of administrative support.As at 31 March 2015 there were 68 (2014: 69) National Award Operators in the Association.

The International CouncilBetween each Forum, the International Council acts on behalf of the Association and is responsible for the international development and operational policy of the Award. Membership of the International Council comprises the Foundation’s Trustees, three representatives of each of the four Award regions (Africa, Americas, Asia Pacific and Europe, Mediterranean and Arab States), eight emerging leaders representatives, the Founder and the Deputy Chair of the Association. The Secretary General is an ex-officio member.

The hosting and participant costs for Association meetings including Regional meetings, the Forum and the International Council are met by the individual members themselves. The Foundation bears the participant costs for its staff, Trustees and guests and the costs directly relating to its support activities.

The Joint Funding BoardAn advisory committee with representation from The Duke of Edinburgh’s Award (the National Award Operator in the UK) and The Duke of Edinburgh’s International Award Foundation. It operates to ensure that fundraising initiatives organised by these two UK located organisations do not compete with each other.

The Development GroupThe Development Group was founded during the year. Its purpose is to assist the Trustees and the senior management team with overseeing the implementation of the Foundation’s development plan and achieving its aims and objectives. It is not a committee of the Board of Trustees although it may make recommendations to the Trustees. At present its membership consists of major donors, supporters who have the ability to attract income to the Foundation and one Trustee, who chairs the Group.

Trading SubsidiariesIntaward Limited is the Foundation’s wholly owned subsidiary undertaking, which was incorporated to carry out fundraising events on behalf of the charity. The company has not yet traded and, due to its immateriality, is not consolidated with the Foundation’s financial statements.

During the year the Foundation also had management and operational control of a subsidiary, The Duke of Edinburgh’s International Award Foundation (Canada). The results of this body have been consolidated with the Foundation’s financial statements.


GovernanceThe Foundation is a registered charity whose Board of Trustees takes all decisions collectively. All Trustees are equal in the duties and responsibilities that they owe to stakeholders, and accordingly they work together as one body within which the Chair takes the lead.

The Trustees are responsible for determining all important matters of policy. They meet at least twice each year and also whenever necessary at more frequent intervals to carry out their responsibilities. They review strategy and performance annually and approve budgets and operating plans in line with strategy. In addition to the main Board meetings, governance over the Foundation is exercised through a number of committees which hold responsibility for specific areas of governance activity as follows:

• The Audit and Investment Committee manages the charity’s relationship with the external auditors, determines the integrity of the financial statements, and reviews the business risk management framework including compliance and internal controls. It also manages the Foundation’s external relationship with the investment managers, reviews the investment strategy and monitors the performance of the investment portfolio.

• The Development Committee was previously responsible for co-ordinating the strategy for all forms of fundraising and external communication. In May 2014 the Trustees agreed that it should be disbanded in favour of the new Development Group.

• The Nomination Committee makes recommendations to the Board for senior appointments, including new Trustees, after considering a wide variety of possible candidates. It meets when circumstances require.

• The Digital Steering Committee supports Trustees and management in maximising the potential of the digital tools that form part of the operations of the Foundation.

• The Remuneration Committee sets the Secretary General’s and senior management team’s salaries and approves the Secretary General’s recommendation on staff salaries.

• The Property Committee oversees the maintenance of the Foundation’s headquarters and is responsible for negotiating the terms of leases for suitable office accommodation.

Membership of these committees is set out on page 66.

The corporate governance of the Foundation is monitored against guidelines for best practice as set out by the Charity Commission in their framework for sound governance and accountability (Hallmarks of an Effective Charity). It is the Trustees’ practice to develop the corporate governance procedures whenever appropriate.

Each Trustee is a member of the company, with a limited guarantee of £1 per member. Trustees have no rights to any distribution on dissolution of the company.

With two exceptions, Trustees serve for a maximum period of

twelve years continuous service. The Chair of the International Council has no limit to his or her term and the Chair of the Foundation can serve for a period of up to ten years, regardless of prior service as a Trustee. Retirement age is 70.

Trustees are all non-executive, have no beneficial shares or options and receive no remuneration or other benefits. The independence of the Trustees and their willingness to act in the best interests of the charity are not impaired by their gifts of time and in some cases financial support to the charity.

Induction and Training of TrusteesThe Nomination Committee identifies candidates to be future Trustees. The Trustees, as a body, are responsible for their appointment. The induction and familiarisation process of new Trustees may start years before their appointment, depending on their background and experience of the Foundation or of the context in which the Foundation operates. The induction process when a new Trustee is appointed contains certain common elements, including information about the Foundation and about the responsibilities of Trustees, but the extent of development and familiarisation is necessarily flexible. Further induction and training is provided for Trustees during their term of office as necessary.


Statement of Trustees’ responsibilitiesThe Trustees (who are also directors of The Duke of Edinburgh’s International Award Foundation for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period.

In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgments and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

In the case of each Trustee in office at the date the Trustees’ report is approved:

(a) so far as the Trustee is aware, there is no relevant audit information of which the company’s auditors are unaware;and

(b) she/he has taken all the steps that she/he ought to have taken as a trustee in order to make her/himself aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

ManagementThe Trustees review strategy and performance annually and approve budgets and operating plans in line with the strategy. Authority to implement the strategies and policies on behalf of the Trustees and to conduct the day-to-day operations of the Foundation is delegated to the Secretary General. The Secretary General is accountable to the Trustees for the efficient running of the Foundation with the help of the Senior Management Team and the four regional directors. As well as implementing the Trustees’ approved strategy for the Foundation, the Secretary General is responsible for promoting the benefits of the Award to the widest possible audience, ensuring the operational efficiency of the Foundation, raising the funds necessary to support the Association, administering the charity’s finances and making the Trustees aware of the need for any changes to the main principles or conditions of the Award’s international licensing arrangements.

The Foundation operates on a regional basis with a regional director in each of the Americas, Europe, Mediterranean and Arab States, Africa and Asia Pacific regions. Reporting to the Secretary General, the regional directors guide and advise Award Operators within their region to ensure consistency of approach.

Regional directors also promote and develop the Award to new organisations and different groups of young people, and maintain and enhance the quality of delivery of the Award.

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The Foundation, which licenses the Award internationally, had an average of 38 (2014: 34) employees throughout the year.We seek to offer pay rates and a package of terms and conditions that will attract, retain and motivate high calibre staff. The Foundation is by its nature an international organisation, with roles based in different locations around the world. All roles which are not based in the UK will be subject to the same principles and structures in relation to pay and grading as those in the UK. However, there will be regional variations and national differences in the actual pay and terms to ensure that they are relevant to the local environment medians.

When periodically reviewing both our pay and reward systems and the specific rates of pay and benefits we offer, we have due regard to a number of considerations surrounding our position in comparison with similar international organisations and other market factors. We currently have in place remuneration packages which include salary, performance related pay and benefits, including pension and private medical insurance.

The Award Operators work with Foundation staff as well as employing their own people to operate the Award. In the delivery of the Award to young people, over 190,000 (2014: 170,000) volunteers are engaged in various capacities by the bodies to which the Award is licensed.

The Foundation carries out quality assurance tests on the National Award Operators and Independent Award Centres but is not responsible for their employees or for the volunteers.

Risk ManagementThe Trustees have reviewed the major strategic, business and operational risks to which the charity is exposed to ensure that systems have been established, in addition to the existing internal control procedures, to manage those risks. Periodic reviews are carried out to ensure that these systems are effective and still meet the needs of the charity.

The Trustees consider the main operational and reputational risks for the Foundation to be ensuring the National Award Operators adhere to the objectives, philosophy and standards of the Award and their ability to deliver the Award in their individual countries. This is managed through regular contact with the National Award Operators via the Foundation’s regional structure together with regular staff conferences where strategy and new developments are discussed. Part of the success of developing our global brand is an increase in reputational risk in terms of the behaviours of licensed Award Operators around the world. The Trustees and senior management are working to develop an improved risk management process which will include the quality assurance protocols that have been put in place for all licensees. In addition, the Trustees are aware of the risks associated with maintaining the relevance of the Award in today’s society and this is managed through maintaining the profile of the Award in the arena of youth development while being aware of global developments in this field.


The main financial risks for the Foundation are to maintain income from donors, to grow fee income and to further diversify our income to fund current levels of activity and provide for continuing growth. As explained in the Financial Review, compared with the past few years, in 2014/15 the Foundation achieved a significant improvement in its financial performance. We realised a core operating surplus of £449,000 (2014: deficit of £259,000) and an overall surplus in the year to March 2015 of £1,123,000 (2014: deficit of £1,806,000). The Trustees and senior management monitor the Foundation’s financial performance on a regular basis. They are confident that, based on agreed three year income growth plans, this improvement will continue in the medium term.


In order to develop long lasting and mutually beneficial relationships with its donors, the charity’s fundraising team maintain close contact with all donors, involving many with the work undertaken by the Foundation and promote the benefits the Award delivers to the lives of young people. This is further supported by the Development Group. Other financial risks of the Foundation and the actions taken to manage these risks include the following:

InvestmentThe Foundation holds significant investments and the values of these are inevitably subject to market movements. In order to manage the risk of a sustained fall in the value of its investment portfolio the Audit and Investment Committee monitors the performance of the charity’s investments with advice from its investment managers and structures the investment portfolio for long term sustainability.

ExpenditureThe main expenditure for the Foundation is salaries and related staff costs. Changes in salaries are proposed by the Secretary General for approval by the Remuneration Committee and communicated to staff during the formal annual review of salaries.

LiquidityThe Foundation has no long term borrowings and its financial plans do not project any change in this position.

Interest rateThe Foundation places any surplus funds on short term deposit with its bankers and

seeks to optimise the returns as well as minimise risks from holding these deposits.

Exchange rateThe Foundation generates significant income in the USA and Canada and has operations in Australia, Kenya and Jamaica. We receive income and incur expenditure in the currencies of the above countries. Exchange risks associated with budgeting in currency are mitigated by purchasing currencies in advance and matching material currency receipts with payments where possible.

Employee Involvement and Employment of People with DisabilitiesThe Foundation continues to develop its human resource policies and procedures to ensure compliance with best practice. In accordance with the Foundation’s equal opportunities policy, we operate fair employment practices in the recruitment, selection, retention and training of staff with disabilities. Employees are consulted on issues of concern to them by means of regular staff meetings and are kept informed on specific matters directly by management. The charity has developed its appraisal process and offers exit interviews for all staff leaving the organisation.

During the year the Foundation undertook a staff survey. All staff were invited to participate in the survey and the findings have been shared with all staff. The Foundation’s management team are addressing the key points identified in the survey.

Social ResponsibilityThe Foundation is committed to ensuring that it is a socially responsible organisation. As part of this commitment the Foundation seeks to integrate social and environmental concerns in its business strategy and operations. The Foundation addresses its social responsibility in six key areas; employees, environment, stakeholders, use of resources, community and suppliers as follows:

EmployeesThe Foundation aims to offer a workplace that encourages development, allows for free communication and provides a positive work life balance. The Foundation has clear and accessible employee policies relating to equal opportunities, maternity leave, paternity leave, lone working, grievances etc. and all employees are encouraged to act in a socially responsible manner and respect the environments in which they operate.

EnvironmentThe Foundation actively seeks ways to reduce the impact of its activities on the environment through recycling and energy reduction. It has an established recycling programme for all waste paper, uses the Freecycle website for unwanted furniture and encourages all employees to be aware of their use of resources. It works closely with its maintenance supplier to keep up to date with energy saving initiatives. It continues to develop and employ business practices that restrict air travel to essential business having first considered other options.


StakeholdersThe charity’s stakeholders are the young people who participate in the Award, its donors, volunteer network, National Award Operators, Independent Award Centres, its Founder, its employees and its Trustees. To all these groups the Foundation aims to be an organisation that is open, responsive and aware of their particular interests and needs. To achieve this it encourages participation by way of consultation, provides feedback through regular publications and ensures the charity website (www.intaward.org) is kept up to date and accessible to all.

Use of resourcesThe Foundation acknowledges that the resources it uses should enable more young people from diverse backgrounds to gain a positive experience in working towards achieving their Awards, equipping them as individuals to succeed in life. The Foundation, therefore, aims to minimise support service expenditure and so maximise the resources available to extend access to the Award in all parts of the community.

To this end, management ensures that all staff are aware of the financial procedures and all monies are accurately accounted for by the Foundation. Together with the investment managers, the Foundation aims to maximise the returns on its resources whilst periodically reviewing the types of investments it holds.

CommunityThe Foundation operates on an international scale and the regional structure of its operations helps to develop strong ties in local communities throughout the areas in which it operates.

SuppliersWhere possible the Foundation purchases Fair Trade and recycled products. However, it recognises that further work needs to be done in this area including making more use of local suppliers to reduce transport pollution, reviewing existing suppliers to ensure compliance with social responsibility and developing an ethical purchasing policy.

Independent AuditorsA resolution to re-appoint PricewaterhouseCoopers LLP as auditors to the company will be proposed at the Annual General Meeting.

Financial Review



In 2014/15 the Foundation achieved a significant improvement in its financial performance, realising a core operating surplus of £449,000 (2014: deficit of £259,000) and an overall surplus in the year to March 2015 of £1,123,000 (2014: deficit of £1,806,000).

The improvement was due to growth in philanthropic and participant fee income as well as strong investment gains. We also completed phase one of the development of the Online Record Book via funds previously set aside by the Trustees.

Incoming ResourcesVoluntary income is received from individual and corporate donors and from grant making trusts and foundations. Total voluntary income of £3,270,000 (2014: £2,425,000) was an increase of £845,000 on the previous year due to growth in donations from individuals, companies, trusts and foundations and higher donations in kind. Donations from our World Fellowship donors and Benefactors were £2,544,000 and we welcomed 21 new World/Young Fellows and two new Benefactors. Our World Fellowship donors and Benefactors also donated a further £217,000 (2014: £488,000) directly to a number of National Award Operators.

Our activities for generating funds comprises of fundraising and training event income, fees paid by delegates attending our International Council/Forum, licensing activity income and Online Record Book participant fee income. At £1,349,000 (2014: £959,000), our income from the above sources was £390,000 higher than that received in 2014. The increased number and scale of our training events helped grow year on year income by £99,000 with the largely new licence and Online Record Book participant fees growing by £255,000 in the year. Investment income of £1,000 was £78,000 lower than 2014 and is the result of our decision during 2012/2013 to transfer the Foundation’s investment portfolio from income generating investments into total return funds.

2015 2014£000 £000

Incoming Resources 4,620 3,463

Core Resources Expended (4,171) (3,722)Net Core Incoming/(Outgoing) Resources 449 (259)

Expenditure on Development Projects (547) (989)Pension buy-out – exceptional item 28 (747)Net (Outgoing) Resources (70) (1,995)Gains on investment assets 1,193 189Net Movement in Funds 1,123 (1,806)


Resources ExpendedThe costs of generating funds decreased by 9% (£103,000) in the year reflecting the nature of the fundraising event activities and reduced fundraising staff resource while maintaining the net income from our fundraising events.

Expenditure on charitable activities – core activities at £2,736,000 in 2015 was an increase of £563,000 (26%) on the previous year. The increase was principally in sustainable infrastructure (£622,000) and primarily reflects the scale of National Award Operator validations during the year and the launch of the Online Record Book with its operating costs becoming part of core activities rather than development projects. Resourcing and operations decreased by £165,000 with reduced direct staff costs due to the focus on validations , partly offset by increased Special Projects grants and direct National Award Operator support. We have maintained the level of work we undertake to support new and developing National Award Operators.

Governance costs were broadly unchanged and in line with plans.

Investment Policy and PerformanceOur constitution contains general powers for the Trustees to invest funds at their discretion. The Trustees’ policy is to protect and, over the long term, increase the value of the investment portfolio in real terms whilst at the same time generating funds that may be used to support the charity’s operations.

In early 2013 our investment portfolio was transferred into three total return funds and a long term objective was set so that these funds deliver annual average growth of inflation plus 5%. In the year to 31 March 2015 the three total return funds produced growth of £1,193,000 (10%) and the funds continue to meet their long term objectives. The charity receives monthly updates on the funds’ performance and the Audit and Investment Committee regularly meets with the investment managers to discuss performance and volatility.

The value of the charity’s investment portfolio at 31 March 2015 was £12,905,000 (2014: £12,137,000), an increase in the year of £768,000 (2014: £1,311,000 decrease). Late in March 2014 £500,000 was withdrawn from the portfolio, although this was not received until early in April 2014. Since that date, additions totalling £75,000 have been made, reflecting the improvement in income and cash flow during the year.

Net Current AssetsNet current assets at the year-end were £1,057,000 (2014: £1,402,000), a decrease of £345,000 in the year. Cash and bank balances at the year-end totalled £1,045,000 (2014: £757,000) and debtors totalled £445,000 (2014: £992,000). The increase in the cash and bank balances and decrease in debtors largely relates to funds held in our former subsidiary, The Duke of Edinburgh’s Award International (USA), Ltd, that were paid to the Foundation during the year.

Reserves and Reserves PolicyAt 31 March 2015 the unrestricted reserves stood at £13,947,000 (2014: £12,889,000). Of these reserves, £8,996,000 (2014: £9,288,000) has been designated by the Trustees to support development projects and to support the grant making activities of the Foundation, undertaken through the Special Projects fund. The Foundation’s unrestricted general reserves of £4,951,000 (2014: £3,601,000) represent just under 15 months (2014: 12 months) of core general expenditure.

The Trustees review the reserves policy and monitor the level of reserves in line with our strategic planning cycle. They have concluded that the current level of unrestricted general reserves is appropriate in the short term. They believe it is important that the Foundation maintains its long term financial security to be able to complete the programmes it undertakes. Currently the appropriate long term level of unrestricted general reserves to assure this is approximately 12 months of expenditure and further, that total reserves should not fall below £10 million and a minimum of £8.5 million should be ring fenced as designated funds. The above reserves policy is consistent with the constraints agreed with the Charity Commission.


The Trustees confirm that, given the planned introduction of new income streams and the overall level of reserves, the Foundation remains a going concern for the foreseeable future. We continue to face a number of challenges in what remain difficult economic circumstances. Of primary importance is the need to deliver on our income projections, particularly the projected growth in licence fees, Online Record Book participant fees and other income streams.

Subsidiary UndertakingsThe Foundation has a wholly owned subsidiary company, Intaward Limited, which was formed to undertake commercial activities in support of the charity. Intaward Limited is a dormant company and has not traded in the past year.To support our fundraising activities, the Foundation had operational and management control of The Duke of Edinburgh’s International Award Foundation (Canada) for the whole of the year.

This year the Foundation has continued to prepare consolidated financial statements that reflect the above circumstances and control over entities. Full details of the consolidation are included in the financial statements and in note 1.

For and on behalf of the Trustees

Andrew SmithTrustee

Registered office:Award House, 7-11 St Matthew Street, London SW1P 2JT

Company Number:3666389

Independent auditors’ report to the members of The Duke of Edinburgh’s International Award Foundation



Report on the financial statements

Our opinionIn our opinion the financial statements, defined below:

• give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 31 March 2015 and of the group’s incoming resources and application of resources, including its income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

This opinion is to be read in the context of what we say in the remainder of this report.

What we have auditedThe group financial statements and parent charitable company financial statements (the “financial statements”), which are prepared by The Duke of Edinburgh’s International Award Foundation, comprise:

• the consolidated and Charity Balance Sheet as at 31 March 2015;

• the consolidated Statement of Financial Activities (incorporating the income and expenditure account ) for the year then ended;

• the notes to the financial statements, which include a summary of significant accounting policies and other explanatory information.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In applying the financial reporting framework, the Trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. In making such estimates, they have made assumptions and considered future events.

What an audit of financial statements involvesWe conducted our audit in accordance with International Standards on Auditing (UK and Ireland) (“ISAs (UK & Ireland)”). An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error.

This includes an assessment of:

• whether the accounting policies are appropriate to the group’s and the parent charitable company’s circumstances and have been consistently applied and adequately disclosed;

• the reasonableness of significant accounting estimates made by the Trustees; and

• the overall presentation of the financial statements.

In addition, we read all the financial and non-financial information in the Trustees’ Annual Report and Financial Statements to identify material inconsistencies with the audited financial statements

and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on other matter prescribed by the Companies Act 2006In our opinion the information given in the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Other matters on which we are required to report by exception

Adequacy of accounting records and information and explanations receivedUnder the Companies Act 2006 we are required to report to you if, in our opinion:

• we have not received all the information and explanations we require for our audit; or

• adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent charitable company financial statements are not in agreement with the accounting records and returns.

We have no exceptions to report arising from this responsibility.

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Trustees’ remunerationUnder the Companies Act 2006 we are required to report to you if, in our opinion, certain disclosures of Trustees’ remuneration specified by law are not made. We have no exceptions to report arising from this responsibility.

Entitlement to exemptionsUnder the Companies Act 2006 we are required to report to you if, in our opinion, the Trustees were not entitled to: prepare financial statements in accordance with the small companies’ regime; take advantage of the small companies’ exemption in preparing the Trustees’ Annual Report; and take advantage of the small companies exemption from preparing a Strategic Report. We have no exceptions to report arising from this responsibility.

Responsibilities for the financial statements and the audit

Our responsibilities and those of the TrusteesAs explained more fully in the Trustees’ Responsibilities Statement, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and ISAs (UK & Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

This report, including the opinions, has been prepared for and only for the charity’s members and Trustees as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Kevin Lowe (Senior Statutory Auditor)

for and on behalf of PricewaterhouseCoopers LLPChartered Accountants and Statutory AuditorsLondon

15 September 2015


Consolidated statement of financial activities (incorporating the income and expenditure account) for the year ended 31 March 2015

Unrestricted general fund

Restricted fund

Total2015

Total 2014

Note £000 £000 £000 £000Incoming resources fromgenerated fundsVoluntary income 2 3,100 170 3,270 2,425Activities for generating funds 3 1,348 1 1,349 959Investment income 4 1 - 1 79Total Incoming Resources 4,449 171 4,620 3,463

Resources expendedCosts of generating funds 5 (1,246) - (1,246) (1,349)Charitable activities – development projects 5 (547) - (547) (989)Charitable activities – core activities 5 (2,630) (106) (2,736) (2,173)Governance costs 5 (189) - (189) (200)Pension buy-out -exceptional item 10 & 17 28 - 28 (747)Total Resources Expended 5 (4,584) (106) (4,690) (5,458)Net (outgoing)/incoming resources before other recognised gains and losses (135) 65 (70) (1,995)Other recognised gains and lossesGains on investment assets 7 1,193 - 1,193 189Net movement in funds 1,058 65 1,123 (1,806)Reconciliation of fundsTotal funds brought forward at 1 April 12,889 335 13,224 15,030Total funds carried forward at 31 March 13 13,947 400 14,347 13,224

All the above results are derived from continuing activities. All gains and losses recognised in the year are included in the Statement of Financial Activities; therefore, a separate statement of recognised gains and losses has not been prepared. There is no difference between the net (outgoing)/incoming resources before other recognised gains and losses for the year stated above and the historical cost equivalent. The £1,193,000 (2014: £189,000) gain on investments comprises £58,000 realised gains and £1,135,000 unrealised gains (2014: realised gains of £180,000 and unrealised gains of £9,000). The results for the Charity are disclosed in note 1.


Consolidated and charity balance sheetat 31 March 2015Company number 3666389

Note 2015 2014£000 £000

Fixed assetsTangible assets 6 385 418Investments 7 12,905 12,137Total fixed assets 13,290 12,555Current assetsDebtors 9 445 992Cash at bank and in hand 1,045 757Total current assets 1,490 1,749Current liabilitiesCreditors: amounts falling due within one year 10 (433) (347)Net current assets 1,057 1,402Provision for liabilities and charges 10 - (733)Total assets less current liabilities 14,347 13,224

The funds of the charityRestricted income funds 13 400 335Unrestricted income funds:• General funds 13 4,951 3,601• Designated funds 13 8,996 9,288Total unrestricted income funds 13,947 12,889Total charity funds 14,347 13,224

The consolidated Balance Sheet includes £644,000 (2014: £516,000) of cash at bank in relation to The Duke of Edinburgh’s International Award Foundation (Canada). Details are shown in note 1.

The financial statements set out on pages 48 to 64 were approved by the Trustees on 15 September 2015 and signed on their behalf by:

Andrew SmithTrustee


Notes to the financial statements for the year ended 31 March 2015

1: Accounting policies

(a) Basis of preparation of financial statements

The Trustees’ annual report and financial statements for the year ended 31 March 2015 have been prepared on a going concern basis, under the historical costs convention as modified by revaluation of investments, in compliance with the Companies Act 2006, the Charities Act 2011, the Accounting and Reporting by Charities: Statement of Recommended Practice (revised 2005) (SORP), and with applicable accounting standards in the United Kingdom. The principal accounting policies, which have been applied consistently throughout the year, except for changes arising on the adoption of new accounting standards, are set out below.

As detailed in the Trustees’ reports, the Trustees have reviewed the future activities and planned performance of the Foundation and confirm that it remains appropriate to prepare the financial statements on the going concern basis.

The financial statements do not include the financial statements of any National Award Operators or Independent Award Centres as these are independent of the charity and, in some cases, are

charities in their own right.(b) Fund accounting

Funds held by the charity are either:

Unrestricted general funds – These are funds which can be used in accordance with the charitable objects at the discretion of the Trustees.

Unrestricted designated funds – These are funds set aside at the discretion of the Trustees for specific purposes.

Restricted funds – These are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Details are set out in Note 13.

(c) Incoming resources

Income, including income from investments, is recognised when the charity is legally entitled to it. World Fellowship subscriptions are accounted for when received. All other income is accounted for when received or when it is assured with reasonable certainty.

Voluntary income includes donations, gifts and grants receivable. The specific bases

used for recognition of such income are as follows:

• Donation income and legacies are recognised where there is entitlement, certainty of receipt and measurability.

• Donated facilities and services are included at the value to the charity where this can be quantified and a third party is bearing the cost. An equivalent expenditure amount is included in the financial statements at the same time as the income is recognised. No amounts are included in the financial statements for services donated by volunteers.

• Donated assets are included in incoming resources and fixed assets at an estimate of their value to the charity at the date of receipt.

• Grants are recognised when the entitlement to the grant is confirmed.

Income generated through activities for generating funds includes licence fee income, participant fee income, delegate fees and income from fundraising events. Fundraising income is shown gross of any associated expenditure. Income received in advance of an event is deferred until entitlement to that income has arisen, at which time it is credited to the SOFA. Where income is raised through


fundraising events held jointly with other charities, only the share of that income which is attributable to the charity is recognised.

(d) Resources expended

Expenditure is recognised when it is incurred and is reported gross of related income on the following bases:

• Costs of generating funds relates to costs associated with attracting voluntary income and supporting the fundraising events. Such costs comprise primarily the salaries of the fundraising department together with direct costs associated with fundraising events.

• Charitable expenditure including expenditure associated with long-term contracts comprises direct expenditure, including direct staff costs, attributable to its activities. Where costs cannot be directly attributed, they have been allocated to activities on a basis consistent with the use of resources, including time spent.

• Governance costs of the charity include those incurred in the governance of its assets and are associated with constitutional and statutory requirements.

(e) Gains and losses on foreign exchange

Monetary assets and liabilities denominated in foreign currencies are translated to sterling at the rate ruling at the balance sheet date. Income and expenditure items in foreign currencies are translated at an average rate over the year using market rates set quarterly. All gains and losses on exchange, realised and unrealised, are reflected in the SOFA.

(f) Tangible fixed assets and depreciation

Tangible fixed assets costing more than £1,000, including incidental expenses of acquisition, are capitalised at cost. Tangible fixed assets costing under £1,000 are expensed in the year the expense is incurred.

Computer software, hardware and infrastructure, including replacement systems, are capitalised on initial purchase at cost. Replacement parts are expensed.

Investment properties are held at open market value.

Depreciation of fixed assets is charged on a straight line basis, commencing in the month of purchase, on cost or valuation as follows:

• Leasehold property: Straight-line basis over the remaining life of the lease.

• Fixtures, fittings & furniture: 10% per annum.

• Computer systems, software and infrastructure: 33% per annum or economic life of asset, whichever is shorter.

• Motor Vehicles: 25% per annum.

(g) Investments

Listed investments are held at market value at the balance sheet date and the SOFA includes the realised and unrealised investment gains/losses for the year. Realised gains and losses on investments, calculated as the difference between the sales proceeds and their market value at the start of the year, or subsequent cost, are credited or charged to the SOFA in the year of gain or loss. Unrealised gains and losses representing the movement in market values during the year are credited or charged to the SOFA in the year of the gain or loss.



(h) Pension costs

On 1 April 2014 the Foundation began contributing to The Duke of Edinburgh’s International Award Foundation Group Personal Pension Plan. This is a defined contribution pension scheme operated by Scottish Widows.

(i) Consolidation

The wholly owned subsidiary Intaward Limited is not required to be consolidated under FRS2 on the grounds of immateriality.

The Financial Statements of the Foundation’s subsidiary, The Duke of Edinburgh’s International Award Foundation (Canada), are consolidated with the financial statements of the Foundation on a line-by-line basis. This entity only included at the year-end cash at bank of £644,000 (2014: £516,000), current liabilities of £2,000 (2014: £1,300), incoming resources of £743,000 (2014: £516,000) and resources expended of £3,000 (2014: £1,300).

The Charity’s result, being the net movement in funds of the Foundation excluding the incoming resources and resources expended of the above subsidiary entities, was £3,877,000 (2014: £2,947,000) incoming resources and £684,000 (2014: £2,322,000) net deficit for the year.

(j) Operating leases

Rental paid under operating leases is charged to the SOFA on a straight line basis.

(k) Irrecoverable VATIncome and expenditure is recorded gross of VAT as the Foundation has not recovered any VAT.

(l) Cash Flow Statement

The Foundation qualifies as a small company under the terms of Section 383 of the Companies Act 2006. As a consequence it is exempt from the requirement to publish a cash flow statement under the provisions of FRS1.


(a) Voluntary income Unrestricted general fund

Restricted fund

Total2015

Total 2014

£000 £000 £000 £000Donations - Individuals and Companies 2,417 127 2,544 2,175Donations - Trusts and Foundations 170 43 213 7Donations in kind 513 - 513 243

3,100 170 3,270 2,425

2: Voluntary income

(b) Donations in kindMaterial donations in kind received during the year are estimated to be valued as follows:

2015 2014£000 £000

Office accommodation 130 125Legal and advisory services 240 60Travel, accommodation, other 21 8Refurbishment costs - 50Events 122 -

513 243

Donations – Individuals and Companies includes £704,000 (2014: £516,000) in relation to The Duke of Edinburgh’s International Award Foundation (Canada).



Unrestricted funds

Restricted funds

2015 2014

£000 £000 £000 £000Operator licence fees 193 1 194 73Award participant fees 195 - 195 61Training and other fees 154 - 154 55Sale of literature and other goods 3 - 3 17Fundraising and other event income 750 - 750 747Operational/other income 53 - 53 6

1,348 1 1,349 959

3: Activities for generating funds

2015 2014Investment income arises from: £000 £000Interest on other cash balances 1 1Dividend income - 78

1 79

4: Investment income


a) Directly charged

2015

Staffcosts2015

Allocated overheads

2015

Total

2015

Total

2014£000 £000 £000 £000 £000

Cost of generating funds 676 409 161 1,246 1,349

Costs of charitable activitiesCharitable activities - development projectsOnline Record Book 417 - - 417 726One Award Alliance programme

130 - - 130 263

547 - - 547 989

Charitable activities -core activitiesResourcing and operations 196 277 107 580 745Communication 39 636 244 919 813Sustainable infrastructure 281 691 265 1,237 615

516 1,604 616 2,736 2,173

Governance costs 138 51 - 189 200Pension buyout - exceptional item

(28) - - (28) 747

Total resources expended 1,849 2,064 777 4,690 5,458

5: Total resources expended

Charitable activities – development projects, is a long term development strategy that is funded by reserves that the Trustees designated during 2011/12. The strategy includes the development and roll out of the Online Record Book and a series of other projects that in total constitute the One Award Alliance Programme.

Staff costs include those posted directly to a channel and some allocated centrally on the basis of staff time. Overhead costs not directly charged to a channel are allocated using the same staff time proportions.



(b) Net income before investment gains is stated after charging: 2015 2014£000 £000

Depreciation 37 40

Audit fee 25 26Tax advice - 13Operating leases 58 72Foreign exchange (gains)/losses (15) 103

(c) Staff costs 2015 2014£000 £000

Wages and salaries 1,529 1,377

Social security costs 160 146Other pension costs 128 121Other staff costs 247 151

2,064 1,795

(d) Staff numbers 2015 2014Number Number

Generating funds 6 6

Charitable activities 31 27Governance 1 1Average monthly full time equivalent number of staff in the year 38 34

(e) Staff whose emoluments (excluding pension contributions)were in excess of £60,000

2015 2014

£60,001 - £70,000Number

1Number

1£80,001 - £90,000 3 1£110,001 - £120,000 0 1£120,001 - £130,000 1 0

5 3

Pension contributions in respect of the above members of staff £000 £00046 30


Leasehold property

Fixtures, fittings and

furniture

Computer systems,

software and infrastructure

Motor vehicles

Total

£000 £000 £000 £000 £000Cost at 1 April 2014 232 259 97 56 644Additions - 5 - - 5Disposals - - (1) - (1)Cost at 31 March 2015 232 264 96 56 648

Accumulated depreciation at 1 April 2014

(23) (59) (93) (51) (226)

Depreciation charge (5) (25) (2) (5) (37)Accumulated depreciation at 1 March 2015 (28) (84) (95) (56) (263)

Net book value at 31 March 2014 209 200 4 5 418

Net book value at 31 March 2015 204 180 1 0 385

6: Tangible fixed assets

The Foundation holds a donated property in Portugal, shown above as leasehold property. Small amounts of rent and related expenditure are generated by it each year. The property is held at the value on transfer less applicable depreciation. The Trustees believe this to be a fair approximation of open market value of the property. A full valuation will be carried out in 2015/16 in accordance with SSAP 19.



Investment portfolio 2015 2014£000 £000

Investment portfolio at 1 April 12,137 13,448Additions at cost 400 -Drawdown from portfolio (325) (1,500)Net investment gains 1,193 189

Cash held with Ruffer (500) -Market value of equity holdings at 31 March 12,905 12,137

7: Investments

2015 2014£000 £000

Blackrock Absolute Return Unit Trust 32 51

Cash held with Ruffer - 500Standard Life Global Absolute Return Fund 4,248 4,135Barings Dynamic Asset Allocation Fund 4,191 3,658Ruffer Absolute Return Fund 4,434 3,793

Investment portfolio at 31 March 12,905 12,137

The Trustees believe that the carrying value of the investments is supported by their underlying net assets. The original cost of these investments was £10,374,000 (2014: £10,299,000).

8: Investment in subsidiary

The Foundation’s wholly owned subsidiary, Intaward Limited, is registered in England. The cost of this investment is £2. Intaward Limited has been created to be available for any trading activity of the Foundation. Intaward Limited is dormant, never having traded since being set up, the only asset being the £2 subscribed for the share capital. No consolidation has been prepared under the exemption allowed in the Companies Act 2006.

The Foundation’s subsidiary, The Duke of Edinburgh’s International Award Foundation (Canada), is registered in Canada. The cost of this investment is nil (2014: nil).


2015 2014£000 £000

Trade debtors 86 97

Other debtors 161 654Accrued income 142 147Prepayments 56 94

445 992

(a) Creditors: Amounts falling due within 1 year 2015 2014£000 £000

Trade creditors 74 87

Other creditors 260 157Accruals 99 103

433 347

10: Current liabilities and provisions

9: Debtors

(b) Provisions for liabilities 2015 2014£000 £000

Balance at 1 April 733 -

Released to SOFA during the year (705) -Released back to reserves during the year (28) -Provision during the year - 733

Balance at 31 March - 733

The provision relates to the buyout of The Pensions Trust’s Growth Plan (see note 17). The liability was agreed and settled during the year with the surplus provision released back to reserves.



13: Funds

(a) Movement Unrestricted Restricted development

projects

Totalfunds

£000 £000 £000Balance at 1 April 2014 12,889 335 13,224Other net (outgoing)/incoming resources (163) 65 (98)Unrealised gains on investments 1,135 - 1,135Realised gains on investments 58 - 58Pension buyout 28 - 28Balance at 31 March 2015 13,947 400 14,347

12: Taxation

The tax charge for ordinary activities is £nil (2014: £nil). The charity is a registered charity, and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in the furtherance of the charity’s primary objectives, if these profits and surpluses are applied solely for charitable purposes.

11: Foreign currency option

On 27 February 2015, the Foundation entered into a zero premium £/C$ participator put option hedging the £ exchange rate of C$1,000,000 and a zero premium £/C$ participator call option hedging the £ exchange rate of C$500,000. The options had a protection rate and a participation rate of C$1.9930 = £1.

The options were exercised on 1 June 2015 at a rate of C$1.9062 = £1.

(b) Net assets Unrestricted Restricted development

projects

Totalfunds

£000 £000 £000Tangible assets 385 - 385Investment portfolio 12,905 - 12,905Net current assets 657 400 1,057Net assets at 31 March 2015 13,947 400 14,347


Designated fund movements 1 April2014

Incoming resources

Outgoing resources

31 March 2015

£000 £000 £000 £000Online Record Book 477 - (417) 60One Award Alliance 290 - (130) 160Special Projects 2,851 424 (165) 3,110Support Funds 35 - (4) 31Development Fund 5,635 - - 5,635Balance at 31 March 9,288 424 (716) 8,996

(c) Designated funds

Included in unrestricted funds are funds set aside by the Trustees to provide support for National Award Operators and Independent Award Centres. These funds are therefore not readily available for other purposes. As at 31 March 2015 funds set aside for these purposes amount to £8,996,000 (2014: £9,288,000). The principle designated funds are:

Online Record Book To support the development, testing and roll out of the Online Record Book.

One Award Alliance Delivery of the One Award Alliance programme including National Award Operator validations, outcomes framework and brand development.

Special Projects Donations to fund unspecified Special Projects.

Support Funds A variety of relatively small funds to support National Award Operators’ development and global Award projects.

Development Funds Funds set aside for development projects.



(d) Restricted funds

Amounts received from donors that have restrictions placed on them are held as restricted funds. Funds are primarily restricted by geographical area or a particular purpose. The Foundation held 16 restricted funds at the end of the year (2014: 15 Funds). The principle restricted funds are:

Region/Country Specific Funds To support a National Award Operator in a specific country and/or the development of the Award in a specific country or region. Ono Photography Bursary A donation to support Special Projects – helping youth at risk - that are to be agreed with the donor.

Special Projects Donations to fund specific Special Projects.

Special Projects 60th Anniversary A donation to support Special Projects that are to be agreed with the donor.

Tanaka Funds To support National Award Operators in specific countries that are to be agreed with the donor.

Restricted fund movements 1 April2014

Incoming resources

Outgoing resources

31 March 2015

£000 £000 £000 £000Region/Country specific funds - Initiative Africa Award 61 - (4) 57 - Spain - 14 - 14 - Nigeria - 45 (12) 33 - Anglo American Brazil Fund 100 - - 100 - Other Region/Country restricted funds 10 6 (7) 9Ono Photography Bursary 45 - (3) 42Special Projects 14 40 (30) 24Special Projects 60th Anniversary - 20 - 20Tanaka Funds 94 36 (41) 89Other restricted funds 11 10 (9) 12

335 171 (106) 400


14: Related party transactions

Four (2014: Four) Trustees or companies connected with Trustees are fully paid Members, Fellows or Corporate Fellows of the World Fellowship. During the year five Trustees made donations of £57,210 (2014: five Trustees £18,710).

Trustees do not receive any remuneration for their service as Trustees and no monetary value is included in these financial statements for time spent by Trustees on the affairs of the Foundation. Out of pocket expenses incurred by Trustees while carrying out their duties are reimbursed by the Foundation when claimed. During the year, expenses of £5,657 were

reimbursed to four Trustees, to cover travel and other costs (2014: two Trustees £3,539).

The Trustees have reviewed the related party connections of themselves, their close families and other connected persons and report that no disclosable transactions, other than those described above, arose during the year from these connections.

2015 2014£000 £000

Land and buildings:• Expiring within 1 year 5 8• Expiring within 1 to 2 years 26 -• Expiring 2 to 5 years - -• Expiring 5 years + 18 18

49 26

Total rentals under operating leases charged as an expense in the SOFA 52 55

15: Leases

Commitments under operating leases to pay rentals during the year following the year of these financial statements.

16: Contingent liabilities

There were no contingent liabilities as at 31 March 2015 (2014: nil).



17: Pension schemes

As of 31 March 2014 the Foundation withdrew from The Pensions Trust’s Growth Plan, ceased to offer membership of the Plan to its employees and agreed with The Pensions Trust to buy-out the exit liability as determined by an actuarial valuation. At the time, the joint exit liability of the Foundation and the Duke of Edinburgh’s Award was estimated at £3,100,000, including actuarial fees and professional fees. The Foundation’s share of this Plan buy-out exit liability was £733,000 and this was provided in the Foundation’s March 2014 financial statements.

The buy-out exit liability was agreed and settled with The Pensions Trust in November 2014. The settlement amounted to £2,903,000 being the joint debt of the Foundation and the Duke of Edinburgh’s Award. The Foundation’s share was £697,000 plus £8,000 being the Foundation’s share of the actuarial and professional fees. This total cost of £705,000 was charged against the £733,000 provision with the balance of £28,000 released back into reserves.

During the year to 31 March 2015 the Foundation contributed £105,000 to The Duke of Edinburgh’s International Award Foundation Group Personal Pension Plan. This is a defined contribution pension scheme operated by Scottish Widows.As at 31 March 2015 £64,000 was due to be paid to Scottish Widows. In addition, the Foundation contributed £23,000 towards pension arrangements for regional staff.

18: Status of company and members

The company is a company limited by guarantee. The members of the company are the Trustees named on page 66. They have no entitlement to distribution on dissolution of the company and they each have a limited liability up to £1.


The Trustees confirm that these financial statements have been produced in accordance with relevant legislation. Each Trustee confirms that:

a) Insofar as the Trustees are aware, there is no relevant audit information of which the charity’s auditors are unaware; andb) The Trustee has taken all the steps that he/she ought to have taken as a Trustee in order to make himself/herself aware of any relevant audit information and to establish that the charity’s auditors are aware of that information.

Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Thank you to all our supporters and staff.

We are sincerely grateful to all our donors for their tremendous support for our work and continued confidence in our efforts.

We are grateful to all those individuals and organisations who have provided pro bono assistance over the past year. The Trustees would also like to thank all staff for their continuing hard work, loyalty and support.

Andrew SmithTrustee

Registered office: Award House, 7-11 St Matthew Street, London SW1P 2JTCompany Number: 3666389

Trustees’ commitment

Thank you


Founder:His Royal Highness The Duke of Edinburgh KG, KT

Trustees:The trustees of the charity who were in office during the year and up to the date of signing the financial statements were:

Committees1 = Audit and Investment Committee Member2= Development Committee Member3 = Nomination Committee Member4 = Remuneration Committee Member5 = Digital Steering Committee Member6 = Property Committee Member

Appendix - structure, governance and management

Gregory BeltonCVO KCHS(Canada)(Chair)1, 2, 3

His Royal Highness The Earl of Wessex KG GCVO ADC*(UK) 2, 3, 5

Alan JonesOBE(UK)

4, 6

Andrew Smith(UK)

1, 4, 5

The Lord Paul BoatengPC DL(UK)

3, 5

Kwek Leng Joo(Singapore)

1, 6

Adebayo Olawale Edun(Nigeria)

1, 4

Muna Issa(Jamaica)

3, 6

Paul Bell(UK/South Africa)

2, 4, 5

Garth Weston(China/UK)

1, 6

*© 2013 The Royal Household Bagshot Park/Image by Millie Pilkington

only to be reproduced with permission


Secretary General:John May

Company Secretary:Gary Davis (from 9 May 2014)

Company Number:3666389

Registered Charity Number:1072453

Registered Office:The Duke of Edinburgh’s InternationalAward FoundationAward House7-11 St Matthew StreetLondonSW1P 2JT

Investment Managers:BlackRock Investment Management (UK) Limited12 Throgmorton AvenueLondonEC2N 2DL

Ruffer LLP 80 Victoria StreetLondonSW1E 5JL

Standard Life Investments Limited1 George StreetEdinburghEH2 2LL

Baring Assets Management (London)155 BishopsgateLondonEC2M 3XY

Independent Auditors:PricewaterhouseCoopers LLP1 Embankment PlaceLondonWC2N 6RH

Solicitors:Bates Wells & Braithwaite London LLPScandinavian House2-6 Cannon StreetLondonEC4M 6YH

Bankers:Lloyds Bank plc8 – 10 Waterloo PlaceLondonSW1Y 4BE

The Duke of Edinburgh’s International Award FoundationTrustees’ annual report and financial statements

Registered charity in England and Wales number 1072453Company limited by guarantee number 3666389

The Duke of Edinburgh’s International Award FoundationAward House7-11 St Matthew StLondonSW1P 2JTUnited Kingdom+44(0)20 7222 [email protected] www.intaward.org

© 2015 The Duke of Edinburgh’s International Award Foundation IAF_AR_201508

Trustees' annual report and financial statements 2014-15

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Transcript of Trustees' annual report and financial statements 2014-15