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MISSIONSince 1958 our mission has been to bring people together to fight poverty through the lasting power of volunteering.
Whether our work is with local communities or with governments, it is always grounded in our four values:
•Bythinkingglobally,wecanchangetheworld
•Progressisonlypossiblethroughworkingtogether
•Peoplearethebestagentsofchange
•Knowledgeisourmostpowerfultool.
VALUES
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A world without poverty.
VSO’S VISION
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CONTENTS
INTRODUCTIONVision,MissionandValues
WelcomefromtheChairandChiefExecutive
STRATEGIC REPORTVSOataglance
GlobalProgrammes
-Education
-Health
-Livelihoods
-Coreapproaches
GlobalLeadership
GlobalEngagement
MonitoringandEvaluation
FinancialReview
RisksandUncertainties
Structure,GovernanceandManagement
Referenceandadministrativedetails
FINANCIAL STATEMENTSStatementoftrustees’responsibilities
Independentauditor’sreport
Consolidatedstatementoffinancialactivities
Balancesheets
Consolidatedcashflowstatement
Notes
THANK YOU
Tofindoutmoreaboutalloftheworkmentionedwithinthisreportpleasevisitouronlineannualreportatwww.vsointernational.org/annualreport
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87 INTRODUCTION INTRODUCTION
MARIInaremotecommunityinKenyaIwasfortunateenoughtohavemetagroupofKenyanandUK
youthvolunteersontheInternationalCitizenServiceprogramme.Immediately,Iwasstruckbytheenergyandenthusiasmoftheseyoungpeople.Ithenheardabouttheinnovativeworktheyaredoingtopromoteinclusion,particularlyforthosewithhearingproblems,anditmademesoproudoftheroleVSOisplayingtoensurenooneisleftbehindandtheisworldabetterplace.
PHILIPInJunelastyear,ItravelledtoEasternGhanatomeetwomenfarmersonouragriculturallivelihoods
programme,deliveredinpartnershipwithMondelez.Someofthewomenwehavesupportedthroughourworkhavebecomecommunityvolunteers,workingtosupportotherwomeninneighbouringcommunities.DuringthevisitIaskedoneofthewomenwhyshedidthis.Shewasbothquickandeloquentinherreply,“Weallhaveadutytobrightenourcorner.Ifthroughmyactions,Icanhelpbringsomeoneoutofpovertyandintothelight,thenitismyduty”.
WELCOMEfrom the Chair and the Chief Executive
ThissimplemessagefromGhanagoestotheheartofVSO’smission–bringingpeopletogethertotacklepoverty.Itiswhywe’resoproudtoleadthisorganisation,whichissopassionateaboutmakingtangibleandsustainablechangesinthelivesofpeople,communitiesandsocieties.Itiswhywecountourselvesluckythat-inaworldfacedbysomanychallengesandwhatseemlikesomanybadnewsstories–ouremployees,volunteers,andthepeopleweareheretoserve,providesomanyinspirationalstoriesofselflessness,hopeandpositivechange.Youwillreadaboutsomeoftheseinthisannualreport.
THE POSSIBILITY OF CHANGEVSO’sworkisspecial.Itisspecialbecauseitunlocksthepossibilityofpositivechange.Itdoesthatbybringingpeoplefromdifferentbackgrounds,expertiseandexperiencetogethertogeneratenewideas,newinsightsandnewwaysofdoingthings.Weareanorganisationthatbuildswhatwecall“socialcapital”–networks,ideas,relationships–thatenableacommunity,anorganisation,asocietytofunctionmoreeffectively.Thisdeliversnotjustimmediatechangebutlong-termandsustainableimpact.Importantly,intheplacesweworkitalso
helpscommunitiesbecomemoreresilient.Theyareabletogetbackontheirfeetmorequicklyifdisasterstrikes.We’veseentheimpactofthiskindofinvestmentinourprogrammesinNepalaftertheearthquakeof2015.We’vealsoseenitinourworkinSierraLeonewherewearenowhelpingto
rebuildthehealthsystemaftertheterribleEbolaepidemic.
BUILDING EVIDENCE Whilewehaveachievedalotinthelast12months,weareanorganisationthatisalwaysambitioustodobetter.Wehavecontinuedtobuildtheevidencebaseforourwork,lookingforwhatworksand,justasimportantly,whatdoesn’twork.AtVSO,weprideourselvesonmakingdecisionsbasedonevidence.We’reparticularlypleasedthatwehavecompletedourresearch,“ImpactBeyondVolunteering”,whichshowshowvolunteeringbuildspersonalconfidenceandresilience,aswellasenergisingcitizens,whoarethenmakingapositivecontributiontosociety.
MOVING FORWARDAswegoforward,wecontinuetochallengeourselvestodomore.First,toensureweareworkingwiththoseattheverymarginsofsociety,whomostneedVSO’ssupport.Second,toworkmorecloselywithotherorganisationsaroundtheworldtobuildaglobalnetworkofactivecitizensandvolunteerswhocanhelpdeliverthefairerandmoreequitableworldweallhopefor.AtVSO,wesayavolunteerisanyone
whohasthecourageanddeterminationtobethechangethattheywantintheworld.Andwhilesometimestheworldcanseemaverytroublingplace,whatweseeinVSOprogrammesisthatvolunteeringisapracticalwayforeachofustoliveourcommitmenttosocialchange.Wehopeyouenjoyreadingaboutourwork.
“Education is the most important thing, education is our future”, Girls club in northern Ghana sing their dreams.
Rekha Shrestha from the National Disaster Recovery Co-ordination Secretariat, chats to Kopila Tamang at the ‘Internally Displaced Person’ camp in Dhading, Nepal.
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VSO AT A GLANCE
Lastyear,VSOsupportedover2.4millionpeoplein24countriesacrossAfrica,AsiaandthePacific.Weworkedwith420localpartnerorganisationsandtrainedover7,000volunteersandprofessionalstohelpcreatelong-lastingchangeinsomeofthepoorestcommunitiesintheworld.
HOW WE WORKUsingouruniquevolunteeringfor
developmentapproachwebroughtthousandsofpeopletogethertogenerateinsights,ideasand,aboveall,actiononpovertyandexclusion.Notonlydowerecruitinternational
volunteersfromallovertheworld,weareincreasinglyworkingwithnationalvolunteerswhoworkintheirowncountries.Wealsoworkwithdedicatedcorporate
andparliamentaryvolunteers,andwithyouthvolunteersthroughtheInternationalCitizensService(ICS).ICSisaUK-governmentfundedvolunteeringprogrammethatseesBritishvolunteersaged18-25yearsundertake10-12weekvolunteeringplacementsoverseas
alongsideyoungvolunteersfromtheirplacementcountry.VSOleadsaconsortiumofeightrespecteddevelopmentorganisationstodelivertheICSprogramme,andin2016/17mobilised6,585youngpeoplethroughtheprogramme.
WHAT WE DOOurworkfocusesondeliveringlong
termchangeinthreeareas:education,healthandlivelihoods.
We organise our efforts within five core programme areas:•Maternalandnewbornhealth•Adolescentandyouthsexualandreproductivehealthandrights
•Inclusiveeducation•Agri-basedvaluechains•Youthemploymentandenterprise.
Inaddition,werecognisethatsocialinclusion,genderequalityandsocialaccountabilityarecriticaltoensuresustainable,systemicchange,andthesearenowcoretoourdevelopmentapproach.
We brought thousands of people together to generate insights, ideas and, above all, action on poverty and exclusion.
OUR YEAR IN NUMBERS
OUR IMPACTIn 2016/17 we supported;
over900,000
peoplethroughoureducationprogrammes
over1,336,000 peoplethroughourhealthprogrammes
over165,000
peoplethroughourlivelihoodsprogrammes
VOLUNTEERING FOR DEVELOPMENTVSO worked with 7237 volunteers from all countries, ages and backgrounds, including;
6585youthvolunteers
239internationalvolunteers
319nationalvolunteers
94corporatevolunteers
YOUTH VOLUNTEERINGICS celebrated its biggest year to date, with 3317 UK volunteers joining 3268 local volunteers to help make a difference in some of the world’s poorest communities. This included;
26,400hoursofpeereducation
3,300actionresearchprojects
14,600hoursofawarenessraisingactivities
25,300hoursoftraining
1,779communityinfrastructureprojects
420 Partners
ICS volunteers get ready for a Community Action Day in the Lindi region, Tanzania.
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VSO AT A GLANCE
Tofindoutmoreaboutthecountriesweworkin,pleasevisitwww.vsointernational.org/fighting-povertyi
•Bangladesh
•Cambodia
•Ethiopia
•Ghana
•India
•Kenya
•Lesotho
•Malawi
•Mozambique
•Myanmar
•Nepal
•Nigeria
•Pakistan
•PapuaNewGuinea
•Philippines
•Rwanda
•SierraLeone
•SouthAfrica
•Swaziland
•Tanzania
•Thailand
•Uganda
•Zambia
•Zimbabwe
VSO WORKS IN 24 COUNTRIES
BANGLADESHOverathousandpeopleattendedacommunityactiondayorganisedbyICSyouthvolunteersinDinjapur,Bangladesh,tocelebrateInternationalWomen’sDay.
KENYAUKvolunteersworkedalongsideDeafvolunteersfromKenyaonthe‘Deafway’projectinKasabet.TheteamcarriedoutcommunitytrainingonbasicKenyanSignLanguageandcreatedcommunityspaceswheredeafpeoplecouldsharetheirexperiences.Theseactivitiespromotedintegration,equalityandawareness.
INDIAVSO’sAaghaazproject,inpartnershipwithtelecomsproviderBhartiInfratel,trained1,004vulnerablewomeninJharkhandprovinceinvocationssuchassecurityandhospitalityaswellaslifeskills.Over70%ofthewomenhavefoundsecureemployment.Weplantoexpandtheprojecttotrainmorethan3,000women.
MYANMARVSOmidwifeadviserssupportedfourmidwiferytrainingschoolsintheuseofclinicalcompetency-basedmodelsandcomputer-basedlearningresources.Eightoutof10midwivestutoredbyVSOadvisersreportedimprovedskillsinclinical,antenatalandpostnatalcare.
NIGERIAVSOhasintroducedamobilesciencelabtosupportschoolsinIfelodunincreasethenumberofstudentsstudyingsciencesubjects.Oneschool,whichpreviouslyhadnostudentsstudyingscience,hasrecorded11studentsforsciencesubjects.
ZIMBABWEGraduatescamefromZimbabwe’sfirst-everaccreditedvocationaltrainingcourseinaprisonsetting.ThetrainingwasestablishedwithsupportfromaVSOprojectpromotinghumanrightsandaccesstohealthservicesinprisonsinthreecountriesacrosssouthernAfrica.
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Millionsofchildrenaroundtheworldaredeniedtheirrighttoaqualityeducation,whichcouldhelpthemescapepoverty.VSOworkstoimproveeducationfor
children,especiallythemostmarginalisedinsociety.Wedothisbydevelopingteachers’skills,improvingeducationmanagementandincreasingcommunitysupportforeducation.Lastyearoureducationprogrammes
helpedsupportover900,000childrenacross15countries.
INCLUSIVE EDUCATIONOureducationprogrammestarget
thechildrenmostlikelytobeexcluded,includinggirlsandthosewithdisabilities.We’veincreasedschoolenrolmentandimprovedattitudestowardssuchchildreninprojectsacrossEthiopia,Nepal,KenyaandRwanda.InEthiopia,VSOsupportedtheAbiAdi
CollegeofTeachersEducationand10primaryschoolstoimproveaccesstoqualityeducationforchildreninremoteanddisadvantagedareas.Childrenintheseschoolsbenefitedfromgreaterlearningoutcomesandschoolattendance.Theprojectalsoimprovedschoolfacilitiesinareasaffectedbydrought,meaningmorechildrencanaccessqualityeducation.
TECHNOLOGY IN ACTIONTechnologyprovidesinnovativeand
cost-effectivelearningimprovementsonVSOprogrammes.InGhana,forexample,wesuccessfullypilotedatechnology-basedplatformtodeliverteachingandlearningresourcestoteachers.InMalawi,wesawa45%improvement
inlearninggainsofchildreninvolvedinourUnlockingTalentthroughTechnologyproject.Thisusesdigitaleducationtechnologytoacceleratelearningforchildreninovercrowded,under-resourcedclassrooms.Asaresult,theMinistryofEducationhasexpressedinterestinintegratingtheapproachacrossMalawi.
INVOLVING COMMUNITIESVSOhasstrengthenedparent-teacher
associationsandschoolmanagementcommitteeswhichhassuccessfullyincreasedparentalandcommunityinvolvementineducation.InNigeria,ICSvolunteersranaprogramme
focusedongettingchildrentoschool.Theycreatedchild-friendlylearningspacesinlocalcommunities,wheretheytaughtbasicliteracyandnumeracyalongsidesoftskillslikepersonalhygiene.Theprogrammewassuccessfulinprovidingeducationalternativesandre-enrollingchildreninschools.
HELPING CHILDREN WITH DISABILITIES IN RWANDACharles,11,haslearningdisabilities.
Heusedtostaysilentinschoolandkeptseparatefromotherchildren.ButthenhisteacheratGahangaPrimarySchoolinNyamagabe,Rwanda,wastrainedaspartofVSO’sL3+project.NowCharlesmixeswithotherchildren,andhasevenbeguntospeak.Aroundonein10childreninRwanda
livewithadisability.Mostarenotinschool,andteachersgenerallylackthetrainingandresourcestodojusticetothosewhoare.TheL3+projectprovidesspecialist
trainingtoteachersinmainstreamschoolsonengagingchildrenwithdisabilities,includingbymakingspecialno-costteachingandlearningmaterials.Now78%ofteachersinvolvedareconfidentthatchildrenwithdisabilitiesareproperlyincludedintheirclassrooms.Theprojectalsoprovidestrainingand
awarenessraisingtoparentsandhealthworkersonidentifyingandreferringchildrenwithdisabilities,andonunderstandingandprotectingtheirrights.AtthestartoftheL3+project,fourout
of10teacherssaidchildrenwithdisabilitieswereaburdentosociety.Thisnumberhasnowfallentoonein10.
Every child has the right to a quality education that gives them the best start in life.
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Pupils at Ngwenya Primary School in Lilongwe, Malawi, waiting to log in to their Unlocking Talent Through Technology class session.
GLOBAL PROGRAMMESEducation
over 900,000people supported
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SAVING NEWBORN LIVES IN TANZANIA
Aroundtheworldpeoplearesufferingneedlesslyduetoalackofqualityhealthservices,keepingthemtrappedinacycleofpoverty.VSOworkswithhealthworkers,
communitiesandgovernmentstoimprovehealthservices,focusingontheareasofmaternalandnewbornhealth,andadolescentandyouthsexualhealthandrights.Lastyearourhealthprogrammeshelped
over1,336.000peopleaccessthequalityhealthcaretheydeserve.
MATERNAL AND NEWBORN HEALTHEachyear,over2.6millionbabiesdie
withinthefirst28daysoflife.Mostofthesedeathsoccurindevelopingcountriesfrompreventablecauses.VSOworksincommunitiesandhealthfacilitiestotrainhealthworkersinclinicalskillssuchasnewborncareandresuscitation,improveservicemanagement,andpromotelow-cost,high-impacttechnologyandpractice.Newborndeathratesdropped
significantlyinpartnerhospitalsinEthiopia,Myanmar,TanzaniaandUganda,whereVSOhassupportedimprovedneonatalintensivecareunits.InEthiopia,thedevelopmentofmaternitywaitinghomeshasallowedwomenexperiencingcomplicatedpregnanciestoaccessspecialisedsupport
before,duringandafterdelivery.InSierraLeone,TanzaniaandUganda,
VSOsupportedcommunitiestodemandbetteraccesstomaternalandnewbornhealthcare,increasingreferralstospecialistcarefacilitiesandreducingthenumberofunattendedhomebirths.
ADOLESCENT AND YOUTH SEXUAL AND REPRODUCTIVE HEALTHGlobally,adolescentsandyouthare
disproportionatelyaffectedbypoorsexualandreproductivehealthservices.VSOworkstomaketheseservicesyouthfriendlyandaccessible.Lastyearwesupportedcommunitiestochallengethediscriminationthatcanstopyoungpeopleaccessingtheinformationandservicestheyneedtomakeinformedchoices.Increasingly,weworkdirectlywithyoung
people,whileinfluencingthosewhoexertpoweroverthem.In10countriesyouthvolunteersdeliveredpeer-to-peerprogrammesfocusingoneducation,support,mentoring,leadershipandresearch.Asaresult,moreyoungpeopleare
accessingsexualandreproductivehealthservices,andhavebeenempoweredtochallengeharmfulpracticessuchasearlyforcedmarriage,femalegenitalcuttingandgender-basedviolence.
MedicalattendantSophiausesaNewbornTriageChecklistCardsuppliedbyVSOtoassessnewbornhealthatStWalburg’sHospital,Nyangao,Tanzania.TheunitisbeingsupportedaspartofVSO’sAcceleratedCareandTreatment(ACT)projectimprovinghealthcareforpregnantwomen,mothersandnewborns.Sevennewbornintensivecareunits
(NICUs)havebeenestablishedthroughACTinruralareasoftheMtwaraandLindidistricts.Theseareequippedwitheasy-to-use,low-costbuteffectivetechnologysuchasportableultrasoundmachines.SMStextmessagingwasalso
successfullyusedtoremindexpectantmothersofprenatalchecksandshareotherhealthinformation.BeforeACT,therewerenospecialised
NICUsortrainingonnewborncareforhealthworkersintheseregions.VSOisthefirstorganisationtosupporttheprovisionofthese,andisproudoftheresults.Thisyearantenatalvisitsincreasedfrom
45%to75%andthefacilityofdeliveryfrom64%to90%,whilethetimeforidentifyingandmanagingcomplicationsandreferringpatientstoNICUsdecreased.Acomparisonofrelativedatashowsthatnewborndeathratehasdroppedby37%since2013.
GLOBAL PROGRAMMESHealth
Each year, over 2.6 million babies die within the first 28 days of life. Most of these deaths happen in developing countries from preventable causes.
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Janet, 17, is one of the young mothers who received vital specialist care for her baby thanks to the VSO supported neonatal intensive care unit in Gulu Regional Referral Hospital, Uganda.
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SUPPORTING LIVELIHOODS IN UGANDA
Millionsofpeoplearestrugglingwithoutareliablesourceoffoodandincometosupportthemselvesandtheirfamilies.VSOprogrammeshelppeopleliveindignityandsecurity,withbetterskills,incomeandfaireraccesstomarkets.
IMPROVING INCOMES FOR YOUNG PEOPLEGlobalyouthpopulationsarebooming
-butyoungpeoplearethreetimesmorelikelytobeoutofworkthanadults.VSOimprovestheemployabilityofyoung
peoplethrougheducationandvocationaltraining,andbyworkingwithbusinessestocreatemorejobs.InUganda,theYouthEmpowerment
andLocalGovernanceprojecttoincreasesustainableemploymentopportunitiesforyoungpeople,ledtohigherincomeforallparticipants.Indeed,theaverageweeklyincomeforthoseinvolvedintheprojectwasthreeandhalftimeslargerthanfortheyouthinnorthernUganda.
ACCESS TO FINANCIAL SERVICES FOR FARMING COMMUNITIESManyoftheworld’sfarmingcommunities
facehighrisksandlowreturns.Weworkatalllevelsofsocietytoprovidebettermarketaccessformarginalisedfarmers,improve
farmers’bargainingpowerandincreaseyields.OurGrowingTogetherprogramme
supportsthelivelihoodsoffarmingcommunitiesinnorthernBangladesh.OvertwothirdsoffarmersintheMithapukerregion,whohavediversifiedcropsaspartofGrowingTogether,reportincreasesofnetincomebyanaverageof300%overthepasttwoyears.InTanzania,ourCommercialAgriculture
forSmallholderFarmersinHorticultureprojecthelpssmallholderfarmersincreasequalityofproduceandaccesstomarkets,andcontinuestodelivergreatreturnsoninvestment.Forevery£1invested,£4.70wasreturnedineconomicvalue.Lastyear,thisprojectreachedover7,000people.
CHANGING OUR APPROACHFollowinganin-depthreviewofVSO’s
livelihoodswork,wehaveimprovedourpracticestoensuregreaterresourceisdevotedtounderstandingtheaspirations,abilitiesandassetsofthecommunitiesweworkwithsothatwecandeliversignificantchange.Ournewframeworkisbeingpiloted
acrossarangeofprogrammesthroughout2017andwillbesupportedbycontinuedin-depthanalysis.
NorthernUgandahasstruggledfollowingyearsofconflict.Manychildrenandyoungpeopleweredisplacedduringthefightingandtheireducationsuffered.Today,aroundeightin10youngpeopleinUgandaareunemployed.VSOvolunteersaresupportingyoung
peopletoaccesstraininginemploymentandagriculture.ChristineAtoo,27,isoneoftheyoung
farmersbenefitting.Herfamilywereforcedtofleeduringthewar.Whenitwasfinallysafetoreturn,shehadtostartfromscratch:“Wecouldn’taffordtotakecareofour
needs.Wedidn’thavecleanwater.Whensomeonewassickwecouldn’taffordtreatment.”“Wewouldonlyfarmsmallamountsof
foodforconsumption.Iusedtodigmylandusingmyhandsalone.”ThingschangedforChristineaftershe
becameinvolvedwiththeproject.“I’vebeentrainedinhowtospacemy
cropsoutandidentifydiseases–it’samazing.It’simprovedmyyielddramatically.”“VSOisdifferent.Theydidn’tjustgiveus
oxenormoney.Theytaughtusonhowtosustainourenterprises.Welearnedhowtogetsomethingbyworkinghard.Thisissomethingthatwehaveownershipof.”
Members of EpilBaha Farmers Group celebrate with Syngenta and VSO volunteers involved in the Growing Together in Rangpur, Bangladesh.
GLOBAL PROGRAMMESLivelihoods
VSO builds programmes that help people live in dignity and security.
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In2016/17VSOintroduceditsthreecoreapproaches:socialaccountability,resilienceandsocialinclusion.ThesethreeapproachesunderpineverythingVSOdoesasanorganisationunderournewPeopleFirststrategy.
SOCIAL INCLUSION AND GENDERTheSustainableDevelopmentGoals
areapromisetoendglobalpovertyby2030,leavingnoonebehind.ButtodaythousandsofthepeopleVSOworkswitharediscriminated,marginalisedandexcludedonthegroundsoftheirgender,race,age,sexualorientation,disabilityandmanyotherfactors.Allourprogrammesacrosseducation,
healthandlivelihoodsaretargetedatthepoorestandmostmarginalisedinsociety.Weaimtobreakdownthebarriersthatcauseandperpetuateinequalityand
exclusion,andimproveaccesstoqualityservicesforall.VSOensuresthatallprogrammes
considergender,ageanddisabilitywithintheirprojectsandVSOisworkingtodefinemarginalisationandexclusionfurtherwithinspecificlocalcontexts.Forexample,discriminationbasedoncasteinNepal,orreligioninPakistan.Werecognisethatourprogrammes
needtoundergoin-depthsocialexclusionandgenderanalysisatthedesignphase.Wemadestridesforwardinthepastyear,carryingoutdetailedsocialexclusionandgenderanalysesinRwanda,Bangladesh,SwazilandandKenya.Theseanalyseswillhelpunderstandthesystemsofsocialexclusionandrefocusourprogrammingtowardsreachingthemostmarginalisedmembersofsociety.VSO’scommitmenttogenderequality
andsocialinclusiongoesbeyondprogrammes,extendingintothebehaviourandpracticesofstaff,volunteersandpartners.Wemadeconsciouseffortstoraiseawarenessoftheseissuesin2016/17,includingtrainingforover700peopleworkingtodeliverVSO’svision.Over40peoplewerealsoidentifiedtocontinuethisawarenessraisingwithnewstaff,volunteersandpartners.
SOCIAL ACCOUNTABILITYVSOiscommittedtoensuringthatpoor
andmarginalisedpeoplehaveaccesstomoreresponsiveandinclusiveservicesandareabletoholddecision-makerstoaccount.
Throughout our programmes, we aim to:•Buildwillingnessandcapacityofgovernmentandotherserviceandresourceproviderstobeaccountabletocitizens,especiallypoorandmarginalisedpeople
•Buildwillingnessandcapacityofcitizenstoexactaccountabilityfromthoseinpower
•Developspacesandprocessesforengagement
•Advocatefortheinclusionofmarginalisedpeople
ExamplesincludestrengtheningcivilsocietyorganisationsinCambodia,andprovidingtechnicaladvicetoZambiangovernmentofficialstoimproveplanningandservicedelivery.InRwanda,wecontinuedworkwith
theNationalCouncilofPersonswithDisabilitiestoensurethattherightsandprioritiesofpeoplewithdisabilitiesareconsideredinlocaldecision-makingandservicedelivery.Havingrecentlyadoptedsocial
accountabilityasacoreapproach,VSOisinatransitionalphase.Moreeffortswillbemadetoensurethatsocialaccountabilityelementsareintegraltothedesignofourprogrammes.
RESILIENCEResiliencemeansthecapacityofan
individual,populationgrouporsystemtoanticipate,absorb,andrecoverfromhazards,shocksandstresses.Thisincludestheimpactsofclimatechange.VSOidentifiedanumberofstresses
andshocksthathaveimpactedour
programmes,includingnaturaldisasters,conflictsandpoliticalinstability.TheseincludehealthstresseslikeEbolainSierraLeone,andtheongoingHIVandAIDSpandemicinZimbabweandacrossmuchofSouthernAfrica.Amongenvironmentalfactors,droughtishavingasignificantimpactonlivesandlivelihoodsincountriessuchasKenya,RwandaandUganda.InNepal,Pakistan,Malawiandthe
Philippines,VSOhasconsultedwithpeopledirectlyaffectedbypovertyandinequalitytoidentifythedifferentstressesandshocksfaced.Wealsohighlightgroupsofpeoplethatareespeciallyvulnerable,suchaspregnantwomen,peoplelivingwithHIVandruralsmallholderfarmers.OverthepastyearVSOprogrammes
havelearntandadaptedinresponsetoresilienceissues.InNepalwehaveworkedwithschoolmanagementcommitteesandparentteacherassociationstoensurethatdisastermanagementisacompulsorycomponentoftheeducationsystem.Inpost-EbolaSierraLeoneVSOissupportingtheMinistryofHealthtostrengthenhealthsystemcapacitytocopewithfutureshocks.Meanwhile,VSOMalawiisstrengtheningclimatechangeadaptationthroughreforestation,soilconservationandcultivationofdrought-tolerantcropvarieties.
Through our Social Accountability work VSO is supporting a Teenage Mothers School in Sierra Leone, helping young mothers like Fatama get an education and build a better future for herself and her daughter.
GLOBAL PROGRAMMESCore approaches
Dr Padma, GP, is the first international volunteer back in Sierra Leone after the Ebola endemic was declared over. She is building up the knowledge of local healthcare workers so that the hospital remains a trusted place of healthcare.
These three core approaches underpin everything VSO does as an organisation.
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VSO’sambitionistoinfluenceandleadthedevelopmentandvolunteeringsectortoadoptpracticesthatpromoteimpactfulandresponsiblevolunteering.Thiscanonlybedoneincollaborationwithothersandbyleadingbyexample.InThailand,VSOhashelpedtoinfluence
theGovernment’snationalstrategyonvolunteering,withapolicyannouncedlastyearandhigh-levelcommitmentstovolunteering.AlongsideVSO’snationalpartner,theVolunteerSpiritNetwork,whichworkswithover30,000nationalvolunteers,VSOhashelpedsecurethefirstnationalvolunteercentresupportedbythegovernment.ThiswillhelptobettercoordinatevolunteeringeffortsinThailand.Duringthenegotiationsaroundthe
SustainableDevelopmentGoals(SDGs),VSObroughtthevoicesofourvolunteersandpartnerstotheheartofdiscussionsattheUN.Asglobalgovernmentssettheir
plansforhowtheywillimplementthisnewagenda,wehaveensuredthatthevoicesandexperiencesofthecommunitiesweworkwithcontinuetobeheard.Forexample,inKenyaVSOisrunningcommunitydialoguessupportedbyyouthvolunteerstocontributetonationalplansforimplementingtheSDGs.
VOLUNTEER, WHEREVER YOU ARE FROMVSOiscommittedtoenablinganyone
withtherightattitudetovolunteer.WorkinginpartnershipwithothervolunteeringfordevelopmentagenciesacrossEurope,ourIVO4Allprojecthasbeenmakinginternationalvolunteeringmoreaccessibleforyoungpeoplewhowouldn’tnormallyhavethatopportunity.UKvolunteer,Senara,workedonanICS
projectinNepaltoimproveeducationandsanitationforchildreninruralareas–buildingherskills,experienceand
confidence:“BeforeIevensteppedfootinNepal,Ihadgottenovercertainfearsandanxieties,andhadexperiencedthingsthatwouldneverhavebeenpossibleifitweren’tforICS.”In2017,we’llbeworkingcloselywithour
IVO4AllpartnerstoinfluencepolicyacrossEurope.We’realsocontinuingtoworkwiththeUKGovernment,tofurtherreducethebarriersfacingyoungpeoplefromlessaffluentbackgroundstakingpartinICS.
DEEPENING UNDERSTANDING OF THE ROLE OF VOLUNTEERINGAsanactivememberoftheInternational
VolunteerCooperationOrganisations(IVCO),ourstaffandvolunteershelpedtoshapethedebateattheannualconference.Civilsociety,governments,UNbodies,academiaandtheprivatesectorfrom35countriescametogethertodiscusstherolevolunteersplayincreatingamorejustandsustainableworld.Attendeesbenefitedfromhearingthe
experiencesoftwoinspirationalnationalyouthVSOvolunteers:GregoryOkonofuafromNigeriaandTanginaMehnazfromBangladesh.Tanginakickedofftheconferencewith
apowerfulspeechaboutwhatresiliencemeanstoher,saying,“IfIwasn’tresilientIwouldn’tbeheretoday,Iwouldbemarried
withchildreninBangladesh.”Gregorycontributedtoapanelsession
abouthowwecancreatealastingimpact:“Communityvolunteeringneedscollaborationandknowledgesharing,socommunitymembersbecomemoreaccountablefortheissuestheyface.Ibelievevolunteeringholdsthekeythatcanunlocksomanydoorsofpositivechange.”We’llusetheIVCO2016CalltoActiontofurtherinformVSO’sapproachtovolunteeringfordevelopment,andwewillbereflectingonhowwecanbestcommunicateourworkaroundresilienceasacoreapproach.
WORKING IN COLLABORATIONInDecember2016,VSOsignedaformal
agreementwiththeCommissionoftheAfricanUnion(AU).Thisagreementrepresentsahigh-levelcommitmentbytheAfricanUniontointegratevolunteeringintoitspeaceanddevelopmentwork.TheAUwillbedevelopingtwoimportant
policydocumentsduring2017:aten-yearactionplantopromotehumanrights,andanactionplantorealisethebenefitsofAfrica’slargeyouthpopulation.VSOwillplayanimportantroleinensuringthatthevoicesoftheimpoverishedandmarginalisedpeoplewithwhomitworksarerepresented.
Youth policy makers, practitioners and the ICS consortium came together for the IVO4All conference in London to discuss how to create a more inclusive and accessible approach to youth volunteering.
GLOBAL LEADERSHIP
VSO is committed to enabling anyone with the right attitude to volunteer.
VSO National Volunteers Tangina Mehnaz (right) from Bangladesh and Gregory Okonofua (left) from Nigeria at the IVCO 2016 conference in Bonn, Germany.
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In November 2016 VSO volunteers and staff gathered in London for our first ever Volunteer Awards. The evening celebrating the work of our dedicated volunteers who have gone above and beyond to help change the lives of those most in need.
GLOBAL ENGAGEMENT
GlobalengagementiscoretoVSO’sPeopleFirststrategy.Since1958,we’veworkedwithvolunteersfromallovertheworld.We’vegrownourworkwithyoungpeople,nationalvolunteersandcommunityvolunteers.Andwefocusontheparticipationofthosedirectlyaffectedbypovertyandinequality.Ourambitionistomobiliseandengage
activecitizensacrosstheworldtoplayavitalroleindeliveringtheSustainableDevelopmentGoals(SDGs).
Our People First strategy will allow VSO to:•Createspaceforthosemostaffectedbypovertyandexclusiontoadvocateforandenactchangesintheirownlivesandcommunities
•Helpourglobalnetworktounderstand,engagewith,andactinsupportoftheSDGs
•Developmulti-sectorpartnershipstoinspirepeopleandtheirinstitutionsintoactivesupportfor“aworldwithoutpoverty”.
VSO’S GLOBAL NETWORKManyofourvolunteersstayconnected
withVSOforalongtime,inmanydifferentways.Somevolunteeragain,othersfundraiseanddonate.Increasingly,theyadviseonthedesign,deliveryandevaluationofVSO’sprogrammes.Thispassionateglobalnetworkremains
connectedtoVSObecausetheycareaboutendingpovertyandinequality.BeingaVSOvolunteerisnotanexperiencethatendswiththejourneyhome.
There were some wonderful examples of that this year from VSO’s country offices:•VSOIndiaaskedaformervolunteer,SayaniBasu,totestnewfundraisingapproaches.Asaresult,Sayanihasdevelopedacrowdfundingmodeltofundalocallydevelopedprojectfortheeducationofblindchildren
•IbrahimKamara,aformerICSvolunteer,carriedoutfieldworkinhishomecountryofSierraLeoneintotheeffectEbolahadon
womenaccessingmaternalhealthservices.•InBangladesh,volunteersinterviewedruralfarmingcommunitiestoproduceaground-breakinganalysisofsocialexclusionandgenderdynamics.
VSO VOLUNTEER AWARDSLastyear,VSOhelditsfirstannualVSO
VolunteerAwards.TheseawardscelebratethebestinVSO’svolunteeringapproach,whetherthroughprofessionalvolunteersorthroughICS;actingasindividualsorpartofateam;rightacrosstheworld.Whileourwinnerswereextremelydiverse,
whattheyhadincommonwasanincrediblecommitmentandaconnectiontoVSO’smissionofendingpovertyandinequality.
Our winners included:•JudithandSimonHill,internationalvolunteersoftheyearwhoturneddownrepatriationtosupportthedisasterandrebuildingeffortintheaftermathoftheApril2015Nepalearthquake
•MaryamMasood,anationalvolunteerfromPakistan,whoseworkincludedadvocatingtheprotectionofwomenfromdomesticviolence
•Syngenta’scorporateteamwontheteamawardforwhattheyachievedwiththeGrowingTogetherprojectinBangladesh.
IMPACT BEYOND VOLUNTEERINGInMarch,VSOpublishedourImpact
beyondVolunteeringresearch,onhowtheexperienceofvolunteeringcreateslastingchangeinVSOvolunteersthemselves,affectingtheirbehaviourandcareerchoices,andinfluencingothers.Thestudy,availableontheVSO
website,showsthatpeoplewhohavevolunteeredwithVSOtendtobehaveandactdifferentlyasaresultoftheirexperiences.Itshowsthreemainkindsofimpact:socialactionandinfluence,careerandgoals,andchangedpractices.Morethanthreequarters(77%),
reportchangesintheirlevelofsocialactionaftervolunteering.Overathirdofvolunteerscontinuetosupportindividualsorgroupswithwhomtheyworkedwithduringtheirplacement.Manyreportedbeingmoreconfident,resilientandadaptable.Otherimpactsincludeformervolunteersexpandingtheirskillsandknowledge.BeingaVSOvolunteercannot
onlyhaveasignificantandlastingimpactinsomeoftheworld’spoorestcommunities–itcanalsohaveasignificantandlastingimpactonthevolunteersthemselves.
Since 1958, we’ve worked with volunteers from all over the world.
Ibraham Kamara, 28, ICS Alumni who helped VSO during the Ebola crisis by conducting research in his home country of Sierra Leone.
TofindoutmoreaboutourImpactBeyondVolunteeringresearch,pleasevisitwww.vsointernational.org/evaluationsi
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VSOhasacultureoflearningandevaluationthroughouttheorganisation.Thismakessureourworkhasthemostimpactandremainsrelevant,effectiveandsustainable.ItalsoincreasesVSO’sunderstandingofthedistinctivecontributionofvolunteeringtotacklepovertyandinequality.
We encourage ongoing learning and evaluation across VSO to:•Buildlearningandevaluativequestionsandprocessesintoprogrammedesign•Increasethenumberofcollaborativeevaluationandlearningexercisesconductedbyprogrammeteams•Usefindingstoinformlearning,understandimpactanddriveprogrammeimprovement•Sharebestpracticeinevaluationmethodology,approachandfindings,usingexternalexpertisewherenecessary•Undertakemeta-evaluationsacrossthematicandgeographicareas•Reviewwhenexternalevaluationisrelevantanduseful.
MONITORING PROGRESS THROUGHOUT PROGRAMMESAllVSOreviewsandevaluationsareguidedbyVSO’sGlobalResultsFramework.Thisisaglobalmonitoring,
evaluation,researchandlearningplatformthathelpsVSOunderstanditscontributiontotheSustainableDevelopmentGoals.ItgivesusadeeperunderstandingoftheimpactofVSO’sprogrammesandvolunteeringinterventions.VSO’sglobalresultsframeworkdetermineswhatprogrammedataVSOgathersandwhatanalyticalquestions
areusedtointerrogateit.
It includes:•IndicatorsandlearningquestionsthatlookatthesustainabledevelopmentimpactofVSO’sworkineachofitscoreprogrammeareas
•ThenumberanddemographicsofthepeoplereachedthroughVSOprogrammes•Evidenceofincreasedinclusionandparticipationbythosewearesetuptoserve•Examplesofinnovationandfailure.
FromApriltoDecember2016,VSOfocusedonrefiningindicatorsandtools,developingprocesses,andcommunicatingtheframeworkacrosstheorganisation.Eachquarter,wecollectedforecastsoftheexpectednumberofpeopletobereachedthroughourprogrammes.Inthefirstfewmonthsof2017,wecollectedinformationfortheframeworkfromallVSOcountryoffices.Thisdataincludessummariesof59piecesofprojectorprogramme-levelevidence,informationonthepeopleVSOhasreached,andannualreportsfromeachcountryoffice.
All VSO’s monitoring and evaluation practices are guided by our principles, specifically:1. Voice and inclusion–theperspectivesofthoseaffectedbypovertyandinequalityareincludedintheevidence.Powerdynamicsarerecognisedandunderstood.
2. Contribution–dataisavailabletoshowthatchangehashappened,andhowithappened.Welookatadditionalfactorsinvolved,suchasunintendedandunexpected,positiveandnegativechanges.
3. Methodologies–approachesanddesignsofmonitoring,evaluationandresearchareethicalandreasonable,andconflictingfindingsarepresentedandanalysed.
4. Transparency–wereportbothpositiveandnegative,intendedandunintendedoutcomesandareclearonhowdatawillbeused.
MONITORING AND EVALUATION
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FINANCIAL REVIEW
Income for the year totalled £78 million.
WHERE OUR INCOME CAME FROM 2016/17
Individualgiving8%
Companies6%
Eventsandcommunity5%
Othergrantsanddonations5%
Othercharitableincome3%
Governmental income:DFIDStrategicGrant26%
Governmental income:ICS32%
Governmental income: other15%
Total expenditure for the year was £76 million.
HOW THE MONEY WAS SPENT 2016/17
ICSconsortiumpartners(contract)25%
Education28%
Health14%
Livelihoods19%
Coreapproaches6%
Generatingfunds8%
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INCOMEIncomelevelsremainstrong,withreductionsinincomefromDFIDlargelyoffsetbyincreasesinincomefromother
institutionaldonors,companiesandlegaciesasweseeincreasingdiversificationofourincomeportfolio.
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GOVERNMENTAL INCOMEIncome from the strategic grant from the UK Government’s Department for International Development (DFID)(£20million)continuedwithDFIDofferingtwoextensionsprovidingfundingof£16.5millionto31Decemberandafurther£3.8millionto31March2017.FromApril2017,VSOwillcontinueitspartnershipwithDFIDthroughanAccountableGrantforthedeliveryofathreeyearVolunteeringforDevelopmentprogramme.
ICS contract income(£25million)declinedby£1.5million.ICSisapaymentbyresultscontract.ThepaymentpointisagainsteachUKvolunteerwhoachievessetstagesontheirvolunteerjourney.VSOoverseesandmanagesthecontract,workingwitheightrespecteddevelopmentagenciestodeliverlife-changingimpactthroughUKyouthvolunteersandtheirnationalcounter-parts.ThiswasthesecondyearofdeliveryoftheDFIDfundedICS2contract.
Other(£12million)–Wecontinuetodiversifyourincomesourcesandhavebeensuccessfulinsecuringfundsfromothergovernmentagencies,includingUSAID,theEUandUNbodies.
OTHER INCOMERegular givers(£6million)–Over41,000donorsgaveusaregulargift.Duetoinsufficientlong-termreturnsandhighsupporterattrition,wechosetowithdrawfromdoor-to-doorfundraisingactivity,andarediversifyingthewayswerecruitnewregulargivers.
INCOME BY TYPE Otherincome
Governmentalincome:other
Governmentalincome:ICS
Governmentalincome:DFIDStrategicGrant
16/1715/1614/1513/1412/13
Appeals–Supportersacrosstheworldcametogethertoraiseawarenessandsupportthefightinpreventingavoidablenew-borndeathsduringChristmas2016,inourfirstmulti-channelcampaign.Peoplesharedphotosoftheirfirstbabies,sentmessagestonewmumsanddonatedover£160,000toVSO.
Major donors(£0.7million)-2016/17wasalandmarkyearforpartnershipswithsupporterswhowanttomakeasignificantdifferencetoourwork.WesuccessfullyclosedourMillionHoursFundwhichraisednearly£1million,farexceedingitsgoaltoreleaseonemillionhoursofnationalvolunteering.Aleadershipgiftof£1.2millionwasalsosecuredtowardsnewYouthEmployabilityprogramminginUgandaoverthenextfouryears.
Events and community(£4million)–Arangeoffundraisingactivitiestookplacein2016/17,includingsportingevents,peer-to-peerfundraisingbyourvolunteers,andcommunityeventsorstreetcollectionsbyVSOsupportergroups.SpecialeventsincludedagolfdaysponsoredbyinsurancecompanyAXAPPPInternational,andacarolconcertatCentralHallWestminstersponsoredbyteachers’union,NASUWT,whichwasattendedby1,700ofourvaluedvolunteersandsupporters.£3millionwasraisedbyICSvolunteerfundraisingacrosstheconsortium,withICSvolunteersraisingonaverage£900eachintheirlocalcommunitiesintheUK.
Legacies(£2million)–In2016/17welaunchedVSO’sfirstlegacyevent,whereformervolunteersanddonorscouldfindoutmoreabouthowagiftleftintheirWillcouldtransformpeoples’lives.Legacyincomeis£1.1millionhigherthaninthepreviousyear.
A gift in your Will could help make the world a fairer place. For more details on how you can leave a gift to future generations, please contact the team on [email protected] or call (+44) 20 8780 7500.
Companies (£5million)-Wecontinuetoworkcloselywitharangeofprivatesectorpartnerstoaccesstechnicalskillsthroughcorporateemployeevolunteering,toattractadditionalfunding,andtodevelopnewapproachestoourwork.Thisprovidedanadditional£1.8millionofincomecomparedto2015/16.VSOhasbuiltonourrelationshipswithAccenture,Citi,Randstad,Syngenta,Mondelēz,IBMandVodafonethroughourKnowledgeExchangecorporateemployeevolunteeringplatformtoengagecompanieswiththeSustainableDevelopmentGoals.
Trusts and Foundations(£1million)-Significantpartnershipsacrossourprogrammeshaveenabledustogofurtherinourcoreprogramming,includingsupportfromComicReliefandtheBigLotteryintheUK,andinternationallyfromtheMastercardFoundation,AmplifyChange,theStavrosNiarchosFoundation,MedicorFoundation,thePestalozziFoundation,andthePharoFoundation.
For more information:Financialstatements,note2Incomeanalysis
Bangladeshi farmer Mujibor Rahman, who was supported by VSO and Syngenta’s Growing Together project, ploughs his land ready to plant crops.
REFLECTION AND LEARNING•Inthepastyeartherehasbeencontinuedscrutinyoffundraisingpracticesacrossthesector.VSOcontinuestotightenprocedures,andensureallnewsupportersprovideexplicitconsentforfuturefundraisingcommunications.Wewillcontinueourregulardonorsurveysandkeepsupportersattheheartofeverythingwedo.
•Increasedcompetitionandchangingcontextmeanthatanumberoftraditionalchannelsforrecruitmentofnewdonorsarenotperformingaswell.Thereforewewilldiversifyintonewchannelsandtestnewideas.
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EXPENDITURE
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SPEND ON CHARITABLE ACTIVITIES
Charitable activities (£69 million)
16/1715/16
Totalspendoncharitableactivitieshasincreasedinthefive-yearperiod,from85%in2012/13to92%in2016/17.
Expenditure on education(£22million)-isup£6millionon2015/16.ItincludesincreasedspendondeliveryoftheUnlockingTalentthroughTechnologyprojectinMalawi,theTeacherEducationSupportprojectinPNG,andtheTacklingEducationNeedsInclusivelyprojectinGhana.
Contractual payments to ICS consortium partners(£18million)-fordeliveryagainsttheICScontracthavereducedby£1.6millionin2016/17,consistentwithreducedICScontractincome.TheICScontractispresentedseparatelytohighlightthedifferentprogrammeareasintroducedbyconsortiumpartners.
Generating funds(£6million)-costsofgeneratingincomehavereducedinthefiveyearperiodfrom12%oftotalexpenditureto8%.In2016/17,fundraisingcostsdecreasedby£1.1million,withreducedspendondoor-to-doorfundraisingandareductioninallocatedsupportcosts.
For more information:Financialstatements,note3Charitableactivities
14/1513/1412/13
REFLECTION AND LEARNING•InlookingatthefuturecostprofileofVSOandinvestmentofourunrestrictedresourceswewill:-Increasetheeffectivenessofoursupportfunctionssoitcostsuslesstodeliverprogrammeimpact;-Creategreaterflexibilityinorganisationalstructuresowecanincreaseanddecreasespendmuchmorequickly-Rigorouslyassesstheimpactoninvestmentofanyunrestrictedspend.
•Costingofprogrammesandprojectswillcontinuetobeafocusin2017/18,developingunderstandingoftotalcoststoallowVSOtoapplyfullcostrecoverytorestrictedandcontractedincome.
ICSconsortiumpartners
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Closing reserves position
15/16£m
16/17£m Variance
Restricted 6.2 6.0 -4%
Unrestricted:general 14.2 18.2 28%
Designated:fixedassetfund 1.4 1.2 -10%
Designated:ICS 2.7 1.8 -34%
Designated:pensiondeficit (4.3) (4.1) -4%
Designated:changeprogramme 1.4 1.2 -17%
Total Unrestricted + Designated 15.4 18.3 19%
Total Free Reserves 9.9 14.1 43%
RESERVES
FUNDS - MULTI YEAR VIEW
16/17
£6.0million
£18.2million
£0.1million
15/16
£6.2million
£14.2million
£1.2million
14/15
£6.0million
£5.2million
£4.0million
VSO’sreservespolicyprescribestheappropriateleveloffreereservesthatshouldbeimmediatelyavailableandtheactionstrusteesareexpectedtotaketomaintainreservesatanappropriatelevel.Thispolicyinsulatesagainstvolatilityinincomeanduncontrollablefluctuationsinoperatingexpenditure,todealwithanysetbacks,andtogiveflexibilitytotakeadvantageofstrategicopportunities.At31March2017VSO’sfreereserves(generalfundlesspensiondeficitfund)were£14.1m,£6.6mabove
VSO’sminimumtargetlevelof£7.5m.Increasingfreereserveswasapprovedbythetrusteestoensuretheorganisation’sresilienceinlightofuncertaintyregardingfuturefunding,particularlytheendofthestrategicgrantfromDFID.Weachievedthisincreasethroughcostsavingsandreducedinvestment.AgreementofcontinuedfundingbyDFIDthroughtheVolunteeringforDevelopmentgrantwasreachedin
late2016/17,givingsomecertaintyforthenextthreeyears.Thiswillinformthetrustees’quarterlyreviewandtheirevaluationoftheappropriatereservesthrough2017/18.Areductioninfreereservesisexpectedoverthecomingyearandinto2018/19.
On 31 March 2017, VSO’s free reserves stood at £14 million:
Thedesignatedchangeprogrammefundrepresentsunrestrictedfundsthetrusteeshaveearmarkedtodelivertheorganisationalrestructureandtheshiftincostbaserequiredin2017/18.ThedesignatedICSfundrepresentsthesurplusofincomeoverexpenditurerelatingtotheICScontracts.ThedesignatedpensiondeficitfundmatchestheprovisionrecognisedforVSO’sagreedcontributionstothe
deficitfundingarrangementforthePensionsTrustGrowthPlan.
For more information:•Financialstatements•Note13Provisionsforliabilities•Note14Restrictedfunds•Note15Unrestrictedfunds•Note20Pensioncosts
INVESTMENTSTheaimofVSO’sinvestmentpolicyistopreservecapitalwhileholdingreservesinliquidornear-liquidassets.
VSO’spolicyistomaintainariskprofilewithnoassetsratedlessthansingleAandwithnosinglecreditexposureamountingtomorethan20%ofthetotalatanytime.TheInternationalBoardreviewsthepolicyannually.VSO’sArticlesgiveitthepowertoinvestmoniesininvestments,securitiesandpropertyasisthoughtfit,subjecttoanylegalrequirements.VSO’sfinanceteamreportsregularlytotheAuditandRiskCommitteeonthecompositionofinvestmentsheldandtheirmaturityprofile.
Inlinewiththeincreasedfreereserves,cashintheUKwashigherthisyearendtoensuresufficientfundswereheldinliquiddepositstoallowVSOtorespondtosignificantchangesinfuturefunding.Aswithfreereserves,areductionincashisexpectedin2017/18withchangesinfundingimpactingonincome.TheICScontractprovidesaworkingcapitaladvancefortheconsortium.ThisadvanceisheldbyVSOandpaid
ontoconsortiumpartnersinlinewithagreedrequirements.At31March2017,£6.2millionwasheldbyVSO.ThiscashisonlyforuseontheICScontractandwillberepaidinfulltoDFIDoncompletiononthecontract.Cashheldoverseashasreducedtominimiseexposuretoriskspresentedbyholdingfundsinthecountriesin
whichVSOoperates,andtominimiseimpactofforeignexchangefluctuationsonnon-sterlingdeposits.ThishasbeenachievedbyclosemanagementofthemonthlyfundtransferstoVSO’sprogrammeoffices.
GRANT-MAKINGUnderthetermsofthepartnershipagreementsthatexistedin2016/17betweenVSOandmembersofthe
formerVSOFederation,ICSconsortiumpartners,andin-countrypartnerorganisations,VSOprovidesfundstosuchorganisationsinordertoallowthemtoundertakeagreedactivitiesinpursuitofVSO’saims.
Closing cash and investments position
15/16£m
16/17£m
Variance£m
Short-termdeposits 11.6 11.8 0.2
ICSworkingcapitaladvance 5.7 6.2 0.5
Cashatbank:UK 6.7 12.4 5.7
Cashatbank:overseas 2.7 1.5 (1.2)
Total 26.8 31.9 5.1
Restricted
Unrestricted:General
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PRINCIPAL RISKS AND UNCERTAINTIES
RISK MANAGEMENTVSO’sworktowardsaworldwithoutpovertyisinherentlyrisky;thisriskispartofourwork,especiallyinfragile
andconflict-pronecountries.Ourtrusteesrecognisethatacceptanceandmanagementofriskisnecessarytoachieveourkeyobjectives.TheAuditandRiskCommitteeensureseffectiveriskmanagement.Thisisachievedthroughreviewoftherisk
managementstrategy,processesandcontrols.VSO’sriskmanagementstrategysupportsinformeddecision-makingaboutrisksthatcouldaffectour
performanceandabilitytoachieveourobjectives.Theaimistomanage,ratherthantoeliminate,potentialrisksandtoprovidereasonable(althoughnotabsolute)assuranceagainstrisks.
VSO’s risk management includes the following processes and controls:•TheExecutiveBoardconsidersinputfromglobalfunctionsandcountryoffices,andidentifiesstrategicrisks•Theriskevaluationisupdatedquarterlytoreflectoperationalandfinancialdevelopments,andchangesintheexternalenvironment.Eachriskisanalysedaccordingtoitsperceivedpotentialimpactandlikelihoodofoccurring,togetherwithactionsthateitherhavebeen,orwillbe,takeninmitigation
•Aheatmap,asbelow,capturestheprincipalstrategicrisks•Theserisksandmitigatingactionsarediscussedwith,andreviewedby,theAuditandRiskCommitteeandVSO’sInternationalBoard.
VSO’sprincipalrisksasof31March2017arepresentedvisuallyintheheatmapbelow,withfurtherdetailsinthefollowingtable.
Risk and potential consequences Management
•Funding levels and diversity
Unrestricted income is insufficienttoinvestinorganisationalgrowthandguaranteeorganisationalindependence.
Dependency on a narrow donor baseleadstopotentialincomeshortfalls.
Controls in place •VSOisabletodemonstratestrongevidenceofvalueandimpact•Strongpartnershipsinplacethatenhancecredibilityandcapacity•Fundraising,fullcostrecovery,budgetingandinvestmentdecision-makingprocessesareinplace
Progress in the year•Incomepipelineisgrowinganddiversifying•Investmentinbusinessdevelopmentteamsinglobal,regionalandcountryoffices
Further actions•Investmentintonewfundraisingmarketsaroundtheworld•Improvedincomepipelineanalysisallowsmoretargetedinvestment•Reviewofbusinessdevelopmentapproach(global,regional,in-country)toassessperformancesincechangesmade12monthsago
• Volunteer recruitment
Inability to recruit sufficient volunteersweakensourabilitytodeliverprogrammeimpactandunderminesourreputationwithfunders.
Controls in place •Appropriatevolunteerroledesignandin-countryteamsworkingwithglobalpeopleresourcingteam
•Demandforecastreviewedonarollingbasistorevealwhethersupplyisadequateforcurrentdemand
•Flexiblerecruitmentresource,focusedonpriorityareas
Progress in the year •Redesignedapplicationformtomakeitmore‘volunteerfriendly’•Recruitmentkeyperformanceindicatorsaddedtomonthlyreporting
Further actions •Talentpoolandvolunteerpipelinedevelopmentandeffectivenessreporting
• Financial risks
Inability to manage financial risksreducesourreservesandunderminesourabilitytodeliverourprogrammeincompliancewithdonorrequirements.
Controls in place •Modellingofforeignexchangeexposureandcashflow,withregularreviewbytheAuditandRiskCommittee
•Monthlybudgetsreviewandquarterlyoperationalreviewsatorganisational,departmental,regionalandcountryofficelevel
•Internalaudits,annualuseofVSO’sself-audittoolbycountryoffices,andwhistleblowingandincidentreportingmechanisms
Progress in the year •FullFinanceManualupdateinresponsetofindingsfrominternalaudits,donorpolicyrequirements,externalauditrecommendations,andongoingprocessreview;trainingforfinanceandnon-financeteams
•Updateofprocurementguidelines;trainingforeachlocation
Further actions •Regionaldevelopmentof‘earlywarningsigns’toallowrapidresponsetoemergingfinancialrisks
VSO’S PRINCIPAL RISKS
1.Fundinglevelsanddiversity
2.Volunteerrecruitment
3.Financialrisks
4.Externalpositioning
5.ICScontractextension
6.Sustainable,appropriateoperatingplatform
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Risk and potential consequences Management
• External stakeholders
Positioning and marketing withexternal stakeholders doesnotreflectthevalueofVSOleadingtolossofincomeopportunitiesandunderminingthedeliveryofourstrategy.
Controls in place•Marketingstrategyandactionplan
Progress in the year•CleararticulationofVSO’svalueproposition,understoodandusedacrosstheorganisation
Further actions•Differentiatepriorityaudiencesanddevelopamarketingplanforconnectingwitheach
•Agreebrandidentitydefiningourlook,toneofvoiceandbehaviour•Ensureeveryemployeeandvolunteerknowswhatitmeansto‘livethebrand’
• ICS contract
ICS contracttargetsnotmetresultinginsignificantlossofincome.Inabilitytosecuretimelycontractextensionwithsuitableterms.
Controls in place•SeniorownershipoftherelationshipwithDFIDandconsortiummembers
•ContractManagementUnitandreportingstructuresinplacetomanagepipelineofplacements
Progress in the year•FullfinancialmodellingofICScompleted•ReviewofUKvolunteerconversion(frommarketingtodeparture)andrecommendationsbeingimplemented
Further actions•ManagementoftheplannedNationalAuditOfficeaudit
• Operating platform
Theexistingoperating platformisnotaffordableorflexibleenoughtorespondtochangingexternalenvironment.
Controls in place•Comprehensiveprojectcostingprocessinplacetoenablefullcostrecoveryongrants
•VSOfinancialmodelprovidesclarityonwheremoneyisbeingspent,benchmarkedtoexternalorganisations
Progress in the year•Allaspectsofouroperatingplatformreviewedtoidentifyhowwecanreducecostsandimproveeffectivenessandadaptability
Further actions•Completeorganisationalrestructuretodeliveramoreaffordableandeffectivestructurethatmaximisesresourcesforprogrammedelivery
•SimplificationoffinancialprocessesacrosstheorganisationtooptimiseuseofVSOresources
SAFETY, SECURITY AND MEDICALSafety,securityandmedicalincidentsatVSOaredefinedascrisisevents,criticaleventsorincidentsinorder
ofseverity.
Safety and security incidents reported 2016/17 Crisis 1 Critical Incident Total
VSOtotal 0 2 73 75
ICScontract–VSOdelivery(subtotalofVSOtotal) 0 2 31 33
ICScontract-sub-contractedagencies 3 8 165 176
Medical incidents reported 2016/17 Crisis 1 Critical 2 Incident 2 Total
VSOtotal 1 8 673 682
ICScontract–VSOdelivery(subtotalofVSOtotal) 0 4 571 575
ICScontract-sub-contractedagencies 0 10 Unknown * Unknown *
NOTES:1.Allcrisisincidentsarereviewedbyanexternaladvisor.TheVSOSecurityCommitteereviewsfindingsanddecidesifprogrammedeliveryworkcancontinue,dependantonlocalconditionsandavailablemitigationmeasures.
2.Majormedicalincidentsareclassifiedascriticalincidents,andminormedicalincidentsasincidents.3.MedicalsupportprovidedbythirdpartiesorotherICSsubcontractedagenciesisnotreported.
PeopleworkingforVSOandICSsub-contractedagenciesareencouragedtoreportanythingtheybelieveshouldberecognisedasanincident.Thismightincludecivilunrestneartovolunteerlocations,orpotentiallyhazardousenvironmentalconditions.ICSsub-contractedagenciesreportallsecurityincidentsandanyseriousmedicalincidentstoVSO;seriousincidentsoccurringwithinVSOandICSarereportedtoourdonorsastheyhappen.Aftertheevent,seriousincidentsarethoroughlyinvestigatedtocontinuouslyimproveoursystems.Werespondfullytointernalandexternalincidentreviewsbydemonstratingthevalidityofexistingmeasuresandtoidentifyareasofimprovement.WefollowtheguidelinesanddefinitionsoftheCharityCommissioninourreportingofseriousincidentstothem.
A premature baby is given essential skin on skin care by his mother at a VSO supported Neonatal Intensive Care Unit at Lira Regional Referral hospital, Uganda.
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Voluntary Service OverseasRegistered in England & Wales as a company limited
by guarantee (00703509) and Charity (31757)
VSO Trading LimitedRegistered in England &
Wales (2315724)
VSO IrelandAcquired 16/17. Charity.
Registered in Ireland (351799)
British Executive Services Overseas
LimitedDormant. Registered in
England & Wales (01056119)
Beijing VSO Consulting
Company LimitedWinding-up. Wholly
foreign-owned enterprise. Registered in China
AspartofourrenewedPeopleFirststrategy,VSOhassimplifiedourgovernanceandorganisationalstructure.
Governance structureOurfederatedstructureendedin2015/16.In2016/17,VSOhasoperateddirectlythroughbranchofficesinKenya
andthePhilippines.On31January2017,VSOIreland,amemberoftheformerVSOfederation,wasacquiredbyVSOInternational.NoconsiderationwaspaidbyVSOInternational,andthegiftisrecognisedasincomeintheyear.
Organisational structureWehavereducedseniormanagementandsimplifiedourprogrammestructure.Wecontinuetoensurethatit
costsuslesstodeliverprogrammeimpact.Organisationalchangethatbeganin2016/17willcontinuein2017/18.Itwillreduceactivityandcostswherethereisnoprogrammeorstrategicfinancingtosupportthem,establishclearlinksbetweensupportcosts,agreedprogrammefinancingandthedeliveryofourstrategy,andrigorouslyassessthereturnoninvestmentofunrestrictedspend.
OUR STRUCTUREVoluntaryServiceOverseas(VSO)isregisteredasacharityinEnglandandWalesandasaScottishcross-
bordercharity,registrationnumberSCO39117.VSO’sactivitiesinScotlandarethesameasthosecarriedoutinEnglandandWales.AsrequiredbytheOfficeoftheScottishCharityRegulator,VSOisreportingonitsScottishactivitiesasanintegralpartofthisreport.
STRUCTURE, GOVERNANCEAND MANAGEMENT
OUR GOVERNANCE AND MANAGEMENTVSOisgovernedbyitsInternationalBoardofTrustees.TheInternationalBoardsetsthestrategicdirection
forVSOandensureswemeetsourobjectives.Itoverseesgovernanceandisresponsibleforupholdingtheorganisation’svalues.SometasksoftheInternationalBoardaredelegatedtosub-committeesandadhoccommittees.Sub-committeesarerequiredtoreportbackateachInternationalBoardmeeting.
International Board Of TrusteesStatutory directors, trustees and members
of Voluntary Service Overseas
The Governance CommitteeIB sub-committee
Responsible for ensuring governance arrangements are robust, managing the framework for policy or remuneration of VSO senior management, recommending
potential new trustees to the IB, and reviewing VSO’s governance arrangements
Executive BoardResponsible for the operational oversight and management of the global work of
Voluntary Service Overseas
The Audit And Risk CommitteeIB sub-committee
Responsible for assessing the effectiveness of operational and financial risk
management and internal control
VOLUNTARY WORKFORCEVolunteersareadistinctivepartofVSO’sapproachtodevelopment.Theyalsocontributetothesystemswhich
helpusdeliverprogrammes.Thisyear450peoplegloballycontributedover15,000hoursacrossarangeofactivities:facilitatingevents,selecting
volunteers,undertakingresearch,speakingaboutVSO’swork,auditing,andmoderatingonlinelearningandsupport.Weappreciatethemall.
APPROACH TO REMUNERATIONTodeliverourmission,VSOneedstoattracthighquality,committedpeoplewhocandriveorganisational
performance.VSO’spayphilosophyisbasedontheprinciplesoffairness,internalequityandexternalcompetitiveness.Webelievethatwhileallemployeesshouldbecompensatedfairlyfortheirrole,remunerationisnotthemaindriverofperformanceandinnovation.VSOdoesnotoperateabonusscheme.Theremunerationframeworksetsoutpaybandsclearlyandisopenlyavailabletoallemployees.ThissupportsVSO’saimoffosteringandpromotingfairnessandteamwork.
To ensure internal equity, VSO considers:•Jobpurpose–thescope,depthanddifficultyofthework•Thelevelofengagementwithothers-communicatingandconnectingwithothers•Delivery-levelofplanningandorganisingnecessarytosuccessfullyexecuterole,andhowtherolefitswithintheteamorfunction.Externalcompetitivenessisachievedbybenchmarkingsalariesagainstactualpayforsimilarpositions.
GENDER PAY REPORTING FOR UK EMPLOYEES UKgenderpayreportingregulationscameintoeffectfrom2017,requiringthereportingofdifferencesinthe
averageandmedianpaybetweenmenandwomen,andthegenderdistributionatdifferentlevelsofremuneration.•Median:themedianfemaleemployee(halfofthewomenearnmoreandhalfearnlessthanher)ispaid4.47%lowerthanthemedianmaleemployee.
•Mean:theaveragefemaleemployeeearns5.94%lessthantheaveragemaleemployee.
UK GENDER DISTRIBUTION BY LEVEL OF REMUNERATION
Remuneration quartile Percentage of male employees (UK) Percentage of female employees (UK)
4thQuartile(upper) 50% 50%
3rdQuartile 34% 66%
2ndQuartile 37% 63%
1stQuartile(lower) 33% 67%
4241 STRATEGIC REPORT STRATEGIC REPORT
VSOisproudtoreportthatourgenderpaygapisbelowthenationalaverageof18.1%atthemedianforallemployees(9.4%forfull-timeemployeesonly).VSOguaranteesequalpayformenandwomeninthesameroles.Thisisachievedbyexternalbenchmarkingof
salariesperrole(asopposedtojobholder)everyyearagainstotherorganisationsinallthecountriesweoperatein.Rolesarereviewedinternallytoensureconsistencybetweencomparablepositions.Thejobholder’spersonalqualities(suchasgenderandage)arepurposefullyexcludedfromthisexercise.
The gender pay gap at VSO is mainly explained by two factors:•VSO’spopulationis60%femaleandweonlyreachaneven(50/50)distributionofgenderinthetopquarterwhenwelistouremployeesinorderbylevelofpay.
•Genderdistributionamongfieldsofexpertise:BusinessDevelopmentandHumanResourcesaretraditionallylesscompetitiveandlower-paidfieldsofworkand,therefore,generatelowerbenchmarkfigures.IntheUKtheseareasofworkhavetendedtoattractmorewomen.ThereisamorecompetitiveandhigherpaidmarketforFinanceandIT,whichtraditionallytendtoattractmoremen.
PAY POLICY FOR KEY MANAGEMENT PERSONNELThekeymanagementpersonnelatVSOarethetrusteeswhomakeuptheInternationalBoardandthe
executiveteammemberswhomakeuptheExecutiveBoard.AlltrusteesserveVSOvoluntarily.Theydonotreceiveanyemployeebenefitsandreceivepaymentonlyfor
reimbursementofout-of-pocketexpenses.Seenote5inthefinancialstatements.Theremunerationlevels,payandbenefitsfortheExecutiveBoardmembersaredeterminedbythe
InternationalBoardofTrustees,throughthegovernancesub-committee,inlinewiththeapproachtoremunerationdetailedabove.ThetotalcosttoVSOforremuneratingtheExecutiveBoardiscurrently£513,000.
EQUAL OPPORTUNITIESVSOiscommittedtotheprincipleofequalopportunitiesanddiversity.Weaimtotreatemployees,volunteers
andapplicantsforjobsfairly,andensuretheyarerecruited,trainedandpromotedsolelyonthebasisoftheirabilities.Wevaluetheirrighttodignityatwork.VSOdoesnottoleratebullying,discrimination,harassmentoranyotherformofunwantedbehaviour,whether
basedonage,casteorclass,civilpartnershipstatus,disability,ethnicornationalorigin,HIVstatus,maritalstatus,politicalorreligiousbeliefs,pregnancy,race,sex,sexualorientation,spentconvictionsofex-offenders,tradeunionactivityortransgenderstatus.ThisisreinforcedinourCodeofConduct,theframeworkthatallemployeesandvolunteersmustengagewithandadhereto.VSOstrivesconstantlytocreateaproductiveenvironment,representativeof,andresponsiveto,different
culturesandgroups,whereeveryonehasanequalchancetosucceedatalllevels.VSOensureswehaveanappropriatelevelofdisabilityawarenessandmakereasonableadjustmentsintheworkplacetohelppeoplewithdisabilitiesachievetheircareerpotentialandaccessvolunteeringopportunities.VSOiscommittedtoensuringthatallemployeesandvolunteersunderstandsocialinclusionandgenderissues.During2016/17weinvestedinexploringinclusivepractices,providingtimefordiscussionandreflectiononhowthemanyformsofdiscrimination-unequalpowerrelations,gender,andethnicaffiliation-canperpetuatepoverty.Thisincreasesthealignmentbetweenourprogrammingapproachandourinternalpracticeonequalopportunities.
SAFEGUARDINGProtectingchildren,youngpeopleandvulnerableadultsfromharmiscentraltoachievingourmissionof
endingglobalpoverty.Wearecommittedtoensuringthatpeoplewhoworkwithourorganisationarefreefromanyabuseor
exploitation.EveryonewhocomesintocontactwithanypersonassociatedwithVSOshouldatalltimesfeelrespectedandsafe.Toenforcethis,VSO’sglobalsafeguardingpolicyhasarangeofmeasuresandsystemstopreventanyformofabuse.Wehaveclearproceduresfordisciplinaryactionifthispolicyisbreached.Wehavetraineddesignatedsafeguardingofficersineachofourofficesandhaveathoroughprocessforreportingconcerns.Weundertakecontinuouslearningtounderstandsafeguardingissuesandconcerns.
ENGAGEMENT AND REPORTINGVSOengageswithandprovidesinformationtoitsemployeesthroughtheVSOintranetandorganisation-wide
emails,onlinediscussionsandlearningsessions.Employees,throughtheirunionrepresentatives,areconsulted
onissuesthataffectthem.VSO’sannualYouFirstsurveymonitorslevelsofengagementamongemployeesandvolunteers.Policiesandproceduresareinplaceforthehealthandsafetyofourpeople,andwemaintainincident-reporting
mechanisms.Concernscanberaisedthroughourcomplaintsandgrievanceprocedures.VSOencouragesallemployeesandvolunteersandexternalpartieswithseriousconcernsaboutanyaspectofVSO’sworkorsuspicionsaboutcriminalpracticestofollowourwhistleblowingprocess.Tostrengthenthiswehaverefreshedouronlinecriminalpracticesandwhistleblowingtrainingsotheprocessofreportingisfullyunderstood.
FUNDRAISINGTheCharities(ProtectionandSocialInvestment)Act2016
•WeareaproudmemberoftheFundraisingRegulatorandtheInstituteofFundraising,activelyfollowingtheircodesoffundraisingconduct.
•Inourrecruitmentandretentionofsupportersweusedthefollowingchannelsin2016/17:pressandinserts,directmail,telemarketing,door-to-doorfundraising,emailcommunications,andvideoanddigitaladvertisement.
•Professionalfundraiserswereusedinanumberofactivities.Themajorityofourrecruitmentofnewsupportersin2016/17camefromdoor-to-dooractivitywithagenciesAPPCOandHOME.Resultswerecloselymonitoredonaweeklybasiswithstatuscalls.Weshadowedthefundraiserstobetterunderstandhowtheyworkinthefield.Severalwelcomecallsweresenteverytwoweeks,whichwerelistenedtobytheVSOteam.Feedbackwasthensentbacktotheteam,andamendmentsmadetopractices.WeheldregularrefresherworkshopstoensurefundraiserswerewellinformedaboutVSOandourwork.WealsousedtelemarketingagencyEthicall,whichisaccreditedbyanumberoforganisationsincludingtheLivingWageFoundation,theDMAandtheGoodShoppingGuide.Ethicalldonates25%oftheirpost-taxprofitsbacktocharity.Itcarriesoutsubstantialtrainingofitscallers,includingatrainingsessionthatVSOleadsforallcallersonthecampaign.CallsareregularlymonitoredbybothEthicallandVSO,andweaimtolistentoaminimumof1%ofallcallswithVSOprovidingregularfeedbacktotheagency.
•VSOandallouragencieshavevulnerablepeoplepolicies.Allouragenciesrunregulartrainingtoensurethatthereisnotunreasonableintrusiononaperson’sprivacy,toprotectvulnerablepeople,andtoensurenounduepressureisgiven.
•Weseecomplaintsasextremelyvaluable.ComplaintsareusedbyVSOtohelpimproveoursystemsandprocessesinternally,aswellastheworkundertakenforusthroughexternalagencies.In2016VSOreceived126complaintsrelatingtoourfundraisingactivities.WecontinuetomonitorallfundraisingcomplaintsinaccordancewiththeFundraisingRegulatorandreporttotheregulatorannually.Complaintsareloggedandrespondedtowithinoneworkingdayandall2016complaintswerefullyresolvedinatimelymanner.
2 year old Laxmi and her brother waiting for a medical check-up from VSO volunteer, Dr Lynch. They have been living at the Internally Displayed Camp in Alchidada, Nepal since the 2015 earthquake destroyed their home.
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4443 STRATEGIC REPORT STRATEGIC REPORT
Mari Simonen *Chair
MemberoftheIndependentAuditandOversightCommitteeoftheUNRefugeeAgency(UNHCR),memberoftheBoardofPopulationActionInternational.
Stephen Pidgeon ^
FounderofmarketingagenciesTangibleandBrightsource;fundraisingspeaker,teacher,consultant,authorandconferencepresenter.
Sam Younger CBE *Vice Chair
ChairofCILExRegulation,councilmemberoftheAdvertisingStandardsAuthority,publicinterestobserverattheCharteredInstituteofTaxation.
Dr Noerine Kaleeba
PatronandfounderTASOUganda,vicechairUgandaNationalHealthResearchOrganisation,vicechairUgandaNationalHealthResearchOrganisationBoard,chiefexecutiveofficerNnabagerekaDevelopmentFoundation.
John Bason ^Honorary Treasurer
FinanceDirector,AssociatedBritishFoodsplc,UK,non-executivedirectorofCompassGroupplc,chairmanofFareshare,UK;workedasaVSOvolunteerinGhana.
Hardeep Jhutty
NHSImprovement,responsibleforoverseeingfoundationtrustsandNHStrusts,aswellasindependentprovidersthatprovideNHS-fundedcare.
Amanda Rowlatt CBE *
Seniorcivilservant.
Anjali Sen ^
Regionaldirector,InternationalPlannedParenthoodFederation,SouthAsiaregion,India.Actingdirectorexternalrelations,IPPFCentraloffice,London
Charles Abani
ChiefofPartyoftheUSAIDCivilSocietyproject–StrengtheningAdvocacyandCivicEngagement
(AppointedtotheBoardon20March2017)
Independent International Board sub-committee members as at 31 March 2017
Jose Gonsalves ^
INTERNATIONAL BOARD OF TRUSTEES
INTERNATIONAL BOARDThereisafulllistofdecisionsreservedfortheInternationalBoardinVSO’sScheduleofDelegation.The
InternationalBoardapprovesandmonitorsimplementationofVSO’slong-termstrategy,operationalplan,objectivesandbudget,keypolicies,constitutionalchangesandtheappointmentofthechiefexecutive.TheInternationalBoardreceivesmanagementinformationfromtheExecutiveBoardformallyeachmonth.
TheInternationalBoardmeetsregularly–threetimesayearinpersonandfourtimesayearviatelephone.
TRUSTEESTrusteesareusuallyappointedtotheInternationalBoardforaninitialperiodofthreeyears,whichcanbe
extendedforafurtherthree-yearperiod.Trusteesarenotremunerated,buttheirexpensesarereimbursedinaccordancewithVSO’sexpensespolicy.Trusteesarerecruitedthroughanopenselectionprocess.Theyreceiveacomprehensiveinductionon
appointment,andongoingtrainingandengagementthroughouttheirtermofoffice.TheyparticipateinfieldvisitstoVSOprogrammes,andactasexpertadviserstoVSOworkinggroups.Thisyearalltrusteesreceivedformaltrainingontrustees’dutiesandrecentchallengestocharities,andformallyre-examinedthequestionstheCharityCommissionsuggestsalltrusteesshouldaskthemselves.ReviewoftheperformanceoftheInternationalBoardisacontinuousprocess.Feedbackisrequestedbythe
vice-chairandreceivedaftereachboardmeetingandthiscontributestotheplanningofthenextmeeting.Thereisanannualself-evaluationandeachthirdyearthisiscarriedoutbyanindependentbody.IndividualtrusteesmakeannualcommitmentstoVSOoverandabovetheirresponsibilitiesasdirectorsandmembers.
Baroness Hilary Armstrong
BaronessArmstrongofHilltop,MemberoftheHouseofLords,workedasaVSOvolunteerinKenya,ex-memberofVSO’sParliamentaryvolunteerschemeinTanzania.
Chris Merry ^
Chiefexecutiveofficer,IpesGroup
* Governance Committee member ^ Audit and Risk Committee member
VSO’s ‘Phoning Out Poverty and AIDS’ (POPA) project in Maputo, Mozambique, is enabling widowed women like Maria Jacinto to set up phone credit businesses to help support their families.
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4645 STRATEGIC REPORT STRATEGIC REPORT
THE EXECUTIVE BOARD AS AT 31 MARCH 2017
Dr Philip Goodwin
Chief Executive
“IwasavolunteerinTimbuktu,Mali.Workingalongsidecommunityfarmersinsucharemotepartoftheworldtaughtmesomuch.It’swhyIfeelsoprivilegedtobeabletoleadVSOtoday.”
Donné Cameron
Executive Director of Programmes
“VolunteeringasayounggraduateinSouthAfricainspiredmypersonalpassionforsocialjusticeandmydecisiontopursueacareerindevelopment.”
Andrew Webb
Executive Director of Business Development
“AftervolunteeringasapublichealthengineerinTanzania,thewayIsawtheworldandwhatIthoughtIcouldcontributewasforeverchanged.”
Kathryn Gordon
Executive Director of People
“Ifeelenergisedandhumbledtobepartoftheteamleadingandsupportingvolunteeringforwiderglobaldevelopmentandamamazedandfascinatedbythosewhochoosetostepinandvolunteer.”
Fabienne Arminjon
Executive Director of Finance – joined May 2017
“IhavevolunteeredinIndia,Sri-Lanka,HaitiandFrance;workingwithcommunitiestohelpshapeabetterfutureinspiresme.Ifeelprivilegedtousemyprofessionalskillstocontributetoliftingpeopleoutofpoverty.”
EXECUTIVE BOARDTheInternationalBoarddelegatesVSO’sday-to-daymanagementtothechiefexecutiveandtheExecutive
Board.TheExecutiveBoardhasoperationaloversightofVSO’sglobalwork.EachmemberisresponsibleforanareaofVSO’sglobaloperations:programmes,businessdevelopment,peopleandorganisationaldevelopment,andfinanceandcorporateservices.TheExecutiveBoardmeetsweeklytooverseeimplementationofstrategicandoperationalactivity,allocate
resources,setandmonitorstandards,anddeterminecoreapproachestohowVSOworks.TheExecutiveBoardformallyreviewsachievementsagainstVSO’sdevelopment,operationalandfinancialobjectivesquarterly,incollaborationwithsenioremployeesacrosstheorganisation.
VSO’S SUBSIDIARIESVSO’ssubsidiarycompaniesandbranchofficesareoperatedandmanagedinasimilarway,withdelegated
authoritytotheindividualsinthecompanyorbranchinaccordancewithVSO’sScheduleofDelegationsandultimatelyreportingtothechiefexecutive.Wherelocalregulationsrequireresidentnationalmembersordirectorstohavelegalcontrol,theyaredulyselected,inducted,andtrained.TheircontributionsareinvaluabletoVSOandbringlocalperspectivetogovernance.
Graham Loader
Executive Director of Finance and Corporate Services – resigned December 2016
FORMER MEMBERS OF THE EXECUTIVE BOARD
VSO is helping families make a more viable income from fishing through the ‘Making Markets Work for the Poor’ project in Cambodia.
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REFERENCE AND ADMINISTRATIVE
DETAILS
Charity name:VoluntaryServiceOverseas(VSO)Charity registration:313757(EnglandandWales),SC039117(Scotland)Company registration: 703509Registered office: 100LondonRoad,KingstonuponThamesKT26QJCompany secretary:JennyOwen
OBJECTSVSO’s objects, for which the charity was established, are to:•advanceeducationandaidthereliefofpovertyinanypartoftheworld
•promotetheeffectiveuseofresourcesforthepurposeofadvancingeducationorrelievingpovertyinanypartoftheworld
•promotethevoluntarysector.
PUBLIC BENEFITVSOsetsouthowwewillworktowardsachievingourobjectives
throughourstrategyandoperationalplan.Thestrategywasrevisedin2016/17andouroperationalplanisreviewedannually.OurstrategyensuresweprovidepublicbenefitbyadheringtoguidancepublishedbytheCharityCommissiononthePublicBenefitrequirementundertheCharitiesAct2011.Bymonitoringperformance,inlinewithourstrategyandoperationalplan,ourExecutiveBoardmembersandtrusteesensurethatwecontinuetodeliverourobjectiveswhilebenefitingthepublic.
Governing document:VoluntaryServiceOverseasLimitedisgovernedbyitsArticlesofAssociation.Royal patron:HRHThePrincessRoyalPrincipal bank:BarclaysBankplc,1ChurchillPlace,CanaryWharf,LondonE145HPAuditors:CroweClarkeWhitehillLLP,StBride’sHouse,10SalisburySquare,LondonEC4Y8EH
FOR MORE INFORMATION:Website:www.vsointernational.orgFacebook:www.facebook.com/vso.internationalTwitter:www.twitter.com/VSO_IntlInstagram:www.instagram.com/vsointernationalYouTube:www.youtube.com/user/vsointernational
Have a question or feedback?Tel:(+44)2087807500Email:[email protected]
A class of students at Misemwa Primary School, Bungoma, practice Kenyan Sign Language as part of the ICS Deafway project.
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5049 FINANCIAL STATEMENTS FINANCIAL STATEMENTS
Thecharitytrustees(whoarealsothedirectorsofVSOforthepurposesofcompanylaw)areresponsibleforpreparingatrustees’annualreportandfinancialstatementsinaccordancewithapplicablelawandUKaccountingstandards(UKGenerallyAcceptedAccountingPractice).
Companylawrequiresthecharitytrusteestopreparefinancialstatementsforeachyear,whichgiveatrueandfairviewofthestateofaffairsofthecharitablecompanyandthegroup,andoftheincomingresourcesandapplicationofresources,includingtheincomeandexpenditureofthecharitablegroupforthatperiod.In preparing the financial statements, the trustees are required to:• selectsuitableaccountingpoliciesandthenapplythemconsistently• observethemethodsandprinciplesintheCharitiesSORP2016•makejudgementsandestimatesthatarereasonableandprudent• statewhetherapplicableUKaccountingstandardshavebeenfollowed,subjecttoanymaterialdeparturesdisclosedandexplainedinthefinancialstatements
• preparethefinancialstatementsonthegoingconcernbasisunlessitisinappropriatetopresumethatthecharitywillcontinueinbusiness.
ThetrusteesareresponsibleforkeepingproperaccountingrecordsthatdisclosewithreasonableaccuracyatanytimethefinancialpositionofthecharityandtoenablethemtoensurethatthefinancialstatementscomplywiththeCompaniesAct2006.Theyarealsoresponsibleforsafeguardingtheassetsofthecharityandthegroupandhencefortakingreasonablestepsforthepreventionanddetectionoffraudandotherirregularities.
Thetrusteesareresponsibleforthemaintenanceandintegrityofthecorporateandfinancialinformationincludedonthecharitablecompany’swebsite.LegislationintheUKgoverningthepreparationanddisseminationoffinancialstatementsmaydifferfromlegislationinotherjurisdictions.
STATEMENT ON DISCLOSURE TO OUR AUDITORSIn so far as the trustees are aware at the time of approving our trustees’ annual report:• thereisnorelevantinformation,beinginformationneededbytheauditorinconnectionwithpreparingtheirreport,ofwhichthegroup’sauditorisunaware
• thetrustees,havingmadeenquiriesoffellowdirectorsandthegroup’sauditorthattheyoughttohaveindividuallytaken,haveeachtakenallstepsthathe/sheisobligedtotakeasadirectorinordertomakethemselvesawareofanyrelevantauditinformationandtoestablishthattheauditorisawareofthatinformation.
ByorderoftheBoardofTrustees
Mari Simonen, Chair6July2017
WehaveauditedthefinancialstatementsofVSOfortheyearended31March2017whichcomprisetheGroupStatementofFinancialActivities,theGroupandParentCharitableCompanyBalanceSheets,theCashFlowStatementandtherelatednotes.
ThefinancialreportingframeworkthathasbeenappliedintheirpreparationisapplicablelawandUnitedKingdomAccountingStandards,includingFinancialReportingStandard102.TheFinancialReportingStandardapplicableintheUKandRepublicofIreland(UnitedKingdomGenerallyAcceptedAccountingPractice)
Thisreportismadesolelytothecharitablecompany’smembers,asabody,inaccordancewithChapter3ofPart16oftheCompaniesAct2006andtothecharitablecompany’strustees,asabody,inaccordancewithsection44(1c)oftheCharitiesandTrusteeInvestment(Scotland)Act2005.Ourauditworkhasbeenundertakensothatwemightstatetothecharitablecompany’strusteesandmembersthosematterswearerequiredtostatetotheminanauditor’sreportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthanthecharitablecompanyandthecompany’smembersasabody,forourauditwork,forthisreport,orfortheopinionswehaveformed.
RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITORAsexplainedmorefullyintheStatementofTrustees’Responsibilities,thetrustees(whoarealsothedirectorsofthecharitablecompanyforthepurposeofcompanylaw)areresponsibleforthepreparationofthefinancialstatementsandforbeingsatisfiedthattheygiveatrueandfairview.
Wehavebeenappointedasauditorundersection44(1c)oftheCharitiesandTrusteeInvestment(Scotland)Act2005andundertheCompaniesAct2006andreportinaccordancewithregulationsmadeunderthoseActs.
OurresponsibilityistoauditandexpressanopiniononthefinancialstatementsinaccordancewithapplicablelawandInternationalStandardsonAuditing(UKandIreland).ThosestandardsrequireustocomplywiththeAuditingPracticesBoard’sEthicalStandardsforAuditors.
SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTSAnauditinvolvesobtainingevidenceabouttheamountsanddisclosuresinthefinancialstatementssufficienttogivereasonableassurancethatthefinancialstatementsarefreefrommaterialmisstatement,whethercausedbyfraudorerror.Thisincludesanassessmentof:whethertheaccountingpoliciesareappropriatetothecharitablecompany’scircumstancesandhavebeenconsistentlyappliedandadequatelydisclosed;thereasonablenessofsignificantaccountingestimatesmadebythetrustees;andtheoverallpresentationofthefinancialstatements.
Inaddition,wereadallthefinancialandnon-financialinformationintheStrategicreportandtheTrustees’AnnualReporttoidentifymaterialinconsistencieswiththeauditedfinancialstatementsandtoidentifyanyinformationthatisapparentlymateriallyincorrectbasedon,ormateriallyinconsistentwith,theknowledgeacquiredbyusinthecourseofperformingtheaudit.Ifwebecomeawareofanyapparentmaterialmisstatementsorinconsistenciesweconsidertheimplicationsforourreport.
FINANCIAL STATEMENTS Statement of trustees’ responsibilities
INDEPENDENT AUDITOR’S REPORT to the members and trustees of VSO
5251 FINANCIAL STATEMENTS FINANCIAL STATEMENTS
OPINION ON FINANCIAL STATEMENTSIn our opinion the financial statements:• giveatrueandfairviewofthestateofthecharitablecompany’saffairsasat31March2017andofitsincomingresourcesandapplicationofresources,includingitsincomeandexpenditure,fortheyearthenended;
• havebeenproperlypreparedinaccordancewithUnitedKingdomGenerallyAcceptedAccountingPractice• havebeenpreparedinaccordancewiththerequirementsoftheCompaniesAct2006,theCharitiesandTrusteeInvestment(Scotland)Act2005andRegulation8oftheCharitiesAccounts(Scotland)Regulations2006.
OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006In our opinion based on the work undertaken in the course of our audit: • theinformationgivenintheStrategicReportandtheTrustees’AnnualReportforthefinancialyearforwhichthefinancialstatementsarepreparedisconsistentwiththefinancialstatements;and
• theTrustees’AnnualReportandStrategicreporthavebeenpreparedinaccordancewithapplicablelegalrequirements.
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTIONInlightoftheknowledgeandunderstandingofthecompanyanditsenvironmentobtainedinthecourseoftheaudit,wehavenotidentifiedmaterialmisstatementsintheStrategicreportorthetrustees’annualreport.
We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:• adequateaccountingrecordshavenotbeenkept,orreturnsadequateforouraudithavenotbeenreceivedfrombranchesnotvisitedbyus
• thefinancialstatementsarenotinagreementwiththeaccountingrecordsandreturns• certaindisclosuresoftrustees’remunerationspecifiedbylawarenotmade,or• wehavenotreceivedalltheinformationandexplanationswerequireforouraudit.
Naziar HashemiPartnerForandonbehalfofCrowe Clark Whitehill LLPStatutoryAuditorLondon
19July2017CroweClarkWhitehillLLPiseligibletoactasanauditorintermsofsection1212oftheCompaniesAct2006.
CONSOLIDATED STATEMENT of financial activites for the year ended 31 March 2017
Income and Expenditure Note
Unrestricted funds £’000
Restricted funds £’000
Total 2017
£’000
Unrestricted
funds £’000
Restricted funds £’000
Total 2016
£’000
Income from:
Donationsandlegacies2
StrategicgrantfromDepartmentforInternationalDevelopment
20,300 - 20,300 22,000 - 22,000
Contributionsfromgovernmentalbodies 24,761 11,655 36,416 26,263 15,299 41,561
Othergrants,donationsandlegacies 8,899 7,911 16,810 7,650 6,182 13,833
Othertradingactivities 2
Communityprojects,eventsandvolunteerfundraising
3,592 37 3,629 407 3,198 3,605
Incomefromlettings 183 7 190 101 1 102
Bankinterestandinvestments 132 - 132 131 - 131
GiftofVSOIreland 9 953 - 953 - - -
Total income 58,820 19,610 78,430 56,552 24,680 81,232
Expenditure on:
Raisingfunds 6,074 - 6,074 7,213 - 7,213
Charitableactivities 3
Education 13,007 8,857 21,864 7,409 8,330 15,739
Health 6,726 3,805 10,531 5,789 6,957 12,746
Livelihoods 8,219 5,791 14,010 6,202 7,559 13,761
Coreapproaches 3,298 1,407 4,705 2,241 1,548 3,789
ICSconsortiumcontracts 18,378 - 18,378 20,049 - 20,049
Interestpayableandsimilarcosts 20 85 - 85 53 - 53
Total expenditure 55,787 19,860 75,647 48,956 24,394 73,350
Net income 4 3,033 (250) 2,783 7,596 286 7,882
Actuarial(losses)ondefinedbenefitpensionscheme
20 (126) - (126) (1,370) - (1,370)
Net movement in funds 2,907 (250) 2,657 6,226 286 6,512
Reconciliation of funds
Totalfundsbroughtforward 15,383 6,246 21,629 9,157 5,960 15,117
Total funds carried forward 18,290 5,996 24,286 15,383 6,246 21,629
AllamountsrelatetocontinuingactivitiesThenotesonpages51to68formpartofthesefinancialstatements.
5453 FINANCIAL STATEMENTS FINANCIAL STATEMENTS
BALANCE SHEETS as at 31 March 2017
CONSOLIDATED CASH FLOW STATEMENTfor the year ended 31 March 2017
Note2017
£’000
2016
£’000
Cash flows from operating activities
Netcashprovidedbyoperatingactivities 4,990 9,350
Cash flows from investing activities
Purchaseofinvestments 9 958 -
Purchaseofproperty,plantandequipment 8 (847) (999)
Netcashusedininvestingactivities 111 (999)
Change in cash and cash equivalents in the reporting period 5,101 8,351
Cashandcashequivalentsatthebeginningofthereportingperiod 26,784 18,432
Total cash and cash equivalents at the end of the reporting period 31,885 26,784
Reconciliation of net income to net cash flow from operating activities
Netincomeforthereportingperiod 2,783 7,882
Depreciationcharges 8 987 1,285
(Gain)oninvestments 9 (953) -
Decreaseindebtors 10 174 462
Increase/(decrease)increditorsfallingduewithinoneyear 11 2,875 (8,065)
(Decrease)/increaseincreditorsfallingdueaftermorethanoneyearandprovisions 12,13 (750) 9,156
Amountsrelatedtothedefinedbenefitpensionschemeincludedwithinthestatementoffinancialactivities 20 (126) (1,370)
Net cash provided by operating activities 4,990 9,350
Analysis of cash and cash equivalents
Cashatbankandinhand 20,133 15,185
Short-termcashdeposits 11,752 11,599
Total cash and cash equivalents 31,885 26,784
Note
Group2017
£’000
Group 2016
£’000
Charity 2017
£’000
Charity
2016 £’000
Fixed assets
Tangibleassets 8 1,245 1,388 1,235 1,388
Investments 9 - - 953 -
Total fixed assets 1,245 1,388 2,188 1,388
Current assets
Debtors 10 10,459 10,633 10,940 11,228
Short-termcashdeposits 11,752 11,599 11,000 11,000
Cashatbankandinhand:
ICSworkingcapitaladvance(UK) 6,206 5,737 6,206 5,737
IntheUK 12,436 6,704 11,525 6,704
Overseas 1,490 2,744 1,484 2,744
Total current assets 42,343 37,418 41,155 37,414
Liabilities
Creditors:amountsfallingduewithinoneyear 11 (6,983) (4,108) (6,809) (4,104)
Net current assets 35,360 33,310 34,346 33,310
Totalassetslesscurrentliabilities 36,605 34,698 36,534 34,698
Creditors:amountsfallingdueafteroneyear 12 (7,839) (8,200) (7,839) (8,200)
Provisionsforliabilities 13 (4,480) (4,869) (4,480) (4,869)
Total net assets 24,286 21,629 24,215 21,629
Funds:
Restrictedincomefunds 14,16 5,996 6,246 5,996 6,246
Unrestricted funds:
Designatedfunds
Pensiondeficitrepaymentplanfund 15,16 (4,102) (4,293) (4,102) (4,293)
Changeprogrammefund 15,16 1,203 1,443 1,203 1,443
ICSfund 15,16 1,755 2,677 1,755 2,677
Fixedassetfund 15,16 1,245 1,388 1,236 1,388
Generalfund 15,16 18,189 14,168 18,127 14,168
Total unrestricted funds 18,290 15,383 18,219 15,383
Total funds 24,286 21,629 24,215 21,629
Thenotesonpages51to68formpartofthesefinancialstatements.ThefinancialstatementswereapprovedbytheBoardofTrusteesandauthorisedforissueon6July2017.
JohnBason,HonoraryTreasureronbehalfofthetrustees
5655 FINANCIAL STATEMENTS FINANCIAL STATEMENTS
1 ACCOUNTING POLICIESBasis of preparationThefinancialstatementshavebeenpreparedinaccordancewithAccountingandReportingbyCharities:StatementofRecommendedPracticeapplicabletocharitiespreparingtheiraccountsinaccordancewiththefinancialreportingstandardapplicableintheUKandRepublicofIreland(FRS102)(effective1January2016)–CharitiesSORP(FRS102),theCharitiesAccounts(Scotland)Regulations2006andtheCompaniesAct2006.Assetsandliabilitiesareinitiallyrecognisedathistoricalcostortransactionvalueunlessotherwisestatedintherelevantaccountingpolicynotes(s).
ThecharitymeetsthedefinitionofapublicbenefitentityunderFRS102.
Theaccountshavebeenproducedonthegoingconcernbasis.Therearenomaterialuncertaintiesaboutthecharity’sabilitytocontinue.
Group financial statementsTheconsolidatedfinancialstatementsincorporatethefinancialstatementsofthecharityanditssubsidiaryundertakings(thegroup).Theresultsofthesubsidiaryundertakingshavebeenincludedlinebylineinthestatementoffinancialactivities.Balancesandtransactionsbetweenthecharityanditssubsidiaryundertakingsareeliminatedonconsolidation.Theoverallresultsofthegrouparemateriallythesameasthoseoftheparentcharity,thereforethecharityhastakenadvantageoftheexemptionallowedunderSection408oftheCompaniesAct2006innotpresentingitsownstatementoffinancialactivitiesinthesefinancialstatements.
Critical accounting judgements and key sources of estimation uncertaintyIntheapplicationofthecharity’saccountingpoliciestrusteesarerequiredtomakejudgements,estimatesandassumptionsaboutthecarryingvaluesofassetsandliabilitiesthatarenotreadilyapparentfromothersources.Theestimatesandunderlyingassumptionsarebasedonhistoricalexperienceandotherfactorsconsideredtoberelevant.Actualresultsmaydifferfromtheseestimates.
Thereisanongoingreviewofestimatesandunderlyingassumptions.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisediftherevisionaffectsonlythatperiod,orintheperiodoftherevisionandfutureperiodsiftherevisionaffectsthecurrentandfutureperiods.
Thekeysourcesofestimationuncertaintythathaveasignificanteffectontheamountsrecognisedinthefinancialstatementsaredescribedintheaccountingpoliciesandaresummarisedbelow:• Pensionliabilities–Thecharityrecognisesitsliabilitytoitsdefinedbenefitmulti-employerpensionscheme,whichinvolvesanumberofestimationsasdisclosedinnote20.
Intheviewofthetrustees,nootherassumptionsconcerningthefutureorestimationuncertaintyaffectingassetsandliabilitiesatthebalancesheetdatearelikelytoresultinamaterialadjustmenttotheircarryingamountsinthenextfinancialyear.
Fund accountingReservespolicesaregivenonpage29ofthefinancialreview.Reservesareeitherunrestrictedorrestrictedfunds.Restrictedfundsrepresentincometobeusedforaspecificpurposeasrequestedbythedonor.Incomeandexpenditureonthesefundsareshownseparatelywithinthestatementoffinancialactivities.
NOTES FORMING PART OF the financial statements for the year ended 31 March 2017
Unrestrictedfundsarethosethathavenothadarestrictionplacedonthembythedonorandareavailabletospendonactivitiesthatfurtheranyofthepurposesofthecharity.Designatedunrestrictedfundsarethosewhichthetrusteeshavedecidedattheirdiscretiontosetasidetouseforaspecificpurpose(seenote15).
IncomeIncomeisrecognisedwhenthecharityhasentitlementtothefunds,anyconditionsattachedtotheitem(s)ofincomehavebeenmet,itisprobablethattheincomewillreceived,andtheamountcanbemeasuredreliably.
Contractedfundsconstitutetheincomegeneratedviatheprovisionofaservice.Whereacontractactivityextendsforaperiodexceedingoneyearthesearetreatedaslong-termcontracts.Incomeisaccountedforasunrestrictedandanyexcessofincomeoverexpenditureduringthelifeofthecontractisshownasdesignatedfundsuntilthecompletionofthecontract(seenotes14and15).
Forrestrictedgrants,whereincomeisrelatedtoperformanceoractualexpenditureofthegrant,entitlementiseitherthecharityhavingincurredtheexpendituretowhichthegrantrelates,orthegranthavingbeenreceived,whicheveroccursearliest.
Forlegacyincome,recognitionistheearlierofprobatebeinggranted,theestatebeingfinalised,oradistributionbeingreceived.Entitlementtolegacyincomeisonlyconsideredprobablewhentheamountcanbemeasuredreliablyandthecharityhasbeennotifiedoftheexecutor’sintentiontomakeadistribution.Wherethecriteriaforincomerecognitionhavenotbeenmet,legacyincomeisatreatedasacontingentassetanddisclosedifmaterial(seenote10).
Probonoservicesandgiftsinkindforusebythecharityarevaluedattheestimatedvaluetothecharity.Giftaidrecoveredondonationsistreatedaspartoftherelatedgiftunlessspecifiedotherwisebythedonororinthetermsoftheappeal.
Expenditure and basis of allocation of costsExpenditureisrecognisedoncethereisalegalorconstructiveobligationtomakeapaymenttoathirdparty,itisprobablethatsettlementwillberequired,andtheamountoftheobligationcanbemeasuredreliably.
Expenditureonraisingfundsincludesthesalaries,directexpenditure,andoverheadcostsofthestaffintheUKandothercountrieswhereweworkwhoareengagedinfundraisingactivities,includingnegotiatinggrantsforoperationalprogrammesandorganisingfundraisingevents.
UnderCharitiesSORP(FRS102),VSOhaschosentoreportitscharitableexpenditurebythethreethematicareasandthecoreapproachessetoutinitsstrategicplan.Wherepossible,resourcesexpendedhavebeenallocateddirectlytotherelevantareas.Supportcosts,whicharethosefunctionsthatassisttheworkofthecharitybutdonotdirectlyundertakecharitableactivities,havebeenallocatedtothethematicareasandcoreapproachesonthebasisofemployeefulltimeequivalentnumbers.
5857 FINANCIAL STATEMENTS FINANCIAL STATEMENTS
ACCOUNTING POLICES (NOTE 1) CONTINUEDThecostsofrecruiting,selectingandtrainingvolunteers,matchingthemtoasuitableplacementandsupportingthemwhileintheirplacementandontheirreturnareincludedinotherdirectcosts(seenote3).Otherdirectcostsalsoincludethecostofprogrammemanagementanddevelopmentandotherprogrammeinputs,suchasworkshopsandstudyvisits.
Grants and consortium paymentsCooperationagreementswithsomeoftheformerVSOFederationmembershaveprovidedforcontinuedfundingforagreedactivitiesinlinewithVSO’smission.AlsoincludedunderthisheadingarecontractpaymentsmadetotheconsortiumpartnersoftheICSProgramme.Thesegrantsandcontractpaymentsarerecognisedasexpenditureintheyeartheyaredue.
Taxation and irrecoverable VATVSOisaregisteredcharityandassuch,ispotentiallyexemptfromtaxationofitsincomeandgainstotheextentthattheyfallwiththecharityexemptionsintheCorporationTaxesAct2010orSection256TaxationofChargeableGainsAct1992.Notaxchargehasarisenintheyear.Notaxchargehasariseninothersubsidiaries,includingournon-charitablesubsidiaryduetoitspolicyofgiftingalltaxableprofitstoVSOeachyear.
Incommonwithmanycharities,VSOisunabletorecoverthemajorityofVATthatisincurredonpurchasesofgoodsandservicesintheUK.IrrecoverableVATischargedasacostagainsttheactivityforwhichtheexpenditurewasincurred.
Pension costsPensioncontributionspaidbythecharityinrespectofemployeestoadefinedcontributionschemearechargedtothestatementoffinancialactivitieswhentheybecomepayable(seenote20).
Pensioncontributionspaidbythecharityinrespectofemployeestoadefinedbenefit,multi-employerschemearechargedtothestatementoffinancialactivitieswhentheybecomepayable.ThisisinlinewithFRS102requirementsformulti-employerschemeswheretheassetsareco-mingledforinvestmentpurposes,andbenefitsarepaidoutofthescheme’stotalassets(seenote20).AprovisionhasbeenrecognisedforthepresentvalueofVSO’scontributiontotheagreeddeficitreductionplan(seenotes13and20forfurtherdetails).
Foreign exchange transactionsForeigncurrencytransactionsaretranslatedattherateofexchangerulingatthedatesofthetransaction.Foreigncurrencybalances,aretranslatedintosterlingattherateofexchangerulingatthebalancesheetdate.Allexchangedifferencesaretakentothestatementoffinancialactivities.
Operating leasesRentalsareclassifiedasoperatingleaseswherethetitleremainswiththelessorandtheassetsareusedforlessthanexpectedeconomiclife.Operatingleasepaymentsandanyrelatedleaseincentivesarechargedtothestatementoffinancialactivitiesonastraightlinebasisoverthetermofthelease.
Incomefromthesub-lettingofofficespaceisalsoaccountedforonastraightlinebasisoverthetermofthelease,adjustedforleaseincentiveswhereapplicable.
Tangible fixed assets and depreciationTangiblefixedassetscostingmorethan£500arecapitalisedandincludedatcost,includinganyincidentalexpensesofacquisition.
Depreciationisprovidedtowriteoffthecostoftangiblefixedassetsovertheirestimatedusefuleconomiclivesonastraightlinebasisasfollows:
Assets held in the UK
Leaseholdimprovements Lengthofthelease
Furniture,equipment,fixturesandfittings 5years
Computerequipment 4years
Assets held overseas
Allcategories Fullyintheyearofacquisition
100%shareholdinginVSOTradingLimited Statedatcost
100%ownershipofVSOIreland Statedatcost
100%shareholdinginBeijingVSOConsultingCompanyLimited Statedatitsexpectedfuturevalue
ThetrusteesconsideritprudenttofullydepreciateequipmentandmotorvehiclespurchasedforuseoutsideoftheUKintheyearofacquisition,inviewoftheuncertaintyofconditionsintheoperatingenvironment.Itisthecharity’spolicytorecordtheseassetsasdisposalsafterthreeyears.
InvestmentsTheonlyinvestmentsVSOcurrentlyholdsareinitssubsidiarycompanies:
Realisedgainsandlossesareshowninthestatementoffinancialactivities.Short-termdepositsareheldwhencashinhandtemporarilyexceedsoperationalrequirements.
Financial instrumentsVSOhasfinancialassetsandfinancialliabilitiesofakindthatqualifyasbasicfinancialinstruments.Basicfinancialinstrumentsareinitiallyrecognisedattransactionvalueandsubsequentlymeasuredatthepresentvalueoffuturecashflows(amortisedcost).
Financialassetsheldatamortisedcostcomprisecashatbankandinhand,short-termcashdepositsandthedebtorsexcludingprepaymentsandaccruedincome.
Financialliabilitiesheldatamortisedcostcomprisetheshort-andlong-termcreditorsexcludingdeferredincomeandaccruedexpenditure.
Nodiscountinghasbeenappliedtothesefinancialinstrumentsonthebasisthattheperiodsoverwhichamountswillbesettledaresuchthatanydiscountingwouldbeimmaterial.
Atthebalancesheetdatethecharityheldfinancialassetsatamortisedcostof£36.4m(2016£32.3m)andfinancialliabilitiesatamortisedcostof£11.9m(2016£10.8m).
ProvisionsProvisionsarerecognisedwhereVSOhasapresentobligationresultingfromapasteventthatwillprobablyresultinthetransferoffundstoathirdpart,andtheamountduetosettletheobligationcanbeestimatedreliably.Aprovisionisrecognisedwherethereisuncertaintyregardingthetimingortheamount(seenote13).Provisionsaremeasuredatthepresentvalueoftheexpenditureexpectedtoberequiredtosettletheobligation.Theincreaseintheprovisionduetothepassageoftimeisrecognisedasaninterestexpense.
6059 FINANCIAL STATEMENTS FINANCIAL STATEMENTS
2 INCOME ANALYSISa. Contributions from governmental bodiesContributionsfromgovernmentalbodiesaredefinedasincomefrompublicinstitutionalagencies,includingthosewherethecontributionisfundedbygovernmentagencies.
b. Other grants, donations and legacies
c. Other trading activities
3 CHARITABLE ACTIVITIES
Unrestricted funds £’000
Restricted funds £’000
Total 2017
£’000
Total 2016 £’000
DepartmentforInternationalDevelopment
Corestrategicgrant 20,300 - 20,300 22,000
Otherincome 24,761 1,281 26,042 31,588
AustralianDepartmentforForeignAffairsandTrade - 1,448 1,448 1,410
BritishCouncil - 262 262 377
EuropeanUnion - 1,445 1,445 1,361
IrishAid - 312 312 371
NationalDepartmentofEducationPapuaNewGuinea - 1,603 1,603 808
NorwegianEmbassy - 777 777 567
ScottishGovernment - 431 431 626
Sweden/Norad - 666 666 835
SwissDevelopment - 824 824 1,185
UNAgencies - 1,796 1,796 1,208
USAid - 602 602 886
Otherpublicfunding - 208 208 339
45,061 11,655 56,716 63,561
Unrestricted funds £’000
Restricted funds £’000
Total 2017
£’000
Total 2016 £’000
BigLotteryFund - 542 542 571
ComicRelief - 780 780 734
Companies 539 4,243 4,782 2,974
CusoInternational - 129 129 69
Giftsinkindandprobonoservices 545 - 545 496
Individuals 5,941 39 5,980 6,016
Legacies 1,776 - 1,776 663
Majordonors 1 695 696 488
Othercharitableorganisations 7 202 209 884
Trustsandfoundations 82 1,279 1,361 851
Other 8 2 10 87
8,899 7,911 16,810 13,833
Unrestricted funds £’000
Restricted funds £’000
Total 2017
£’000
Total 2016 £’000
Communityprojects 32 - 32 38
Events 131 37 168 206
Lettingsandproperty 183 7 190 103
Volunteerfundraising 3,429 - 3,429 3,361
3,775 44 3,819 3,707
Grants and consortium payments
£’000
Direct staff costs £’000
Other direct costs £’000
Apportioned support costs
£’000
Total 2017
£’000
Total 2016 £’000
By core programme area
Education 37 6,958 12,095 2,774 21,864 15,739
Health 15 3,382 5,833 1,301 10,531 12,746
Livelihoods 23 4,049 8,402 1,536 14,010 13,761
Coreapproaches* 11 1,686 2,273 735 4,705 3,789
ICS consortium contracts
BalloonKenya 1,427 - - - 1,427 1,299
ChallengesWorldwide 1,340 - - - 1,340 1,271
LattitudeGlobalVolunteering 10 - - - 10 1,034
Pravah 330 - - - 330 147
Progressio 2,097 - - - 2,097 2,509
RaleighInternational 5,144 - - - 5,144 5,010
RestlessDevelopment 3,236 - - - 3,236 2,679
SkillshareInternational - - - - - 1,285
Tearfund 1,304 - - - 1,304 1,296
UnitedNationsAssociationInternationalService
2,108 - - - 2,108 2,126
YCareInternational 1,382 - - - 1,382 1,393
Total 18,464 16,075 28,603 6,346 69,488 66,084
Charitableactivities(excludingapportionedsupportcosts)includeprobonoservicesvaluedat£98,000(2016:£147,000).
Breakdown of apportioned costs
Supportcostsareapportionedtocharitableactivitiesandraisingfundsonthebasisofemployeefulltimeequivalentnumbers.Inthecurrentyear,apportionmenthasbeenbasedonglobalFTEfigures.IntheprioryearitwasbasedonUKFTEfigures.
£1,219,000(2016:£1,567,000)oftotalapportionedsupportcostsarecoveredbyrestrictedordesignatedfunds.Apportionedsupportcostsincludeprobonoservicesvaluedat£423,000(2016:£349,000).
GovernanceandCEOcostsincludecostsdirectlyrelatedtothechiefexecutiverole,includingremuneration,travelandexecutiveassistance,of£209,000(2016:£208,000).
Governance and
CEO costs £’000
Facilities and
purchasing £’000
Human resources
£’000
Finance and corporate
performance £’000
Information technology
£’000
Total 2017
£’000
Total 2016 £’000
Education 281 372 554 670 897 2,774 1,986
Health 133 174 260 314 420 1,301 1,420
Livelihoods 156 206 307 371 496 1,536 1,348
Coreapproaches 73 99 147 178 238 735 487
Apportioned support costs - charitable activities
643 851 1,268 1,533 2,051 6,346 5,241
Raisingfunds 60 80 119 144 192 595 1,802
Total apportioned support costs 703 931 1,387 1,677 2,243 6,941 7,043
*VSO’scoreapproachesaresocialaccountability,resilienceandsocialinclusion.ThesethreeapproachesunderpineverythingVSOdoesasanorganisationunderourPeopleFirststrategy.
6261 FINANCIAL STATEMENTS FINANCIAL STATEMENTS
4 NET INCOMING RESOURCESNetmovementinfundsisstatedafterthefollowingcharges:
2017 £’000
2016 £’000
Auditors’ remuneration (exclusive of VAT)
Feespayablefortheauditofthecharity’sannualaccounts 32 28
Feespayablefortheauditofthecharity’ssubsidiaries 14 3
Otherservices 30 16
Total fees payable to charity’s auditors 76 47
Depreciation
UKassets 430 444
Overseasassets 558 841
(Gain)/lossonexchangeratemovements(realisedandunrealised) (462) 51
Thegainonexchangeratemovementsintheyearto31March2017includesgainsof£654,000(2016:lossesof£35,000)ofunrealisedexchangeratemovements,whichhavepredominatelyarisenfromthetranslationofnon-sterlingcashbalancesforreportingpurposes.
5 TRUSTEES’ REMUNERATION AND EXPENSESThetrusteesreceivednoremunerationorotherbenefitsduringtheyear(2016:£nil).Trusteesarereimbursedfortheirtravelandaccommodationexpensesinattendingmeetings,visitingprogrammesoverseas,andotheractivitiesundertakenonbehalfofthecharity.Expensesreimbursedtotrusteesorpaidforontheirbehalfamountedto£12,500(2016:£26,000),paidto11trustees(2016:ten).
6 EMPLOYEE EMOLUMENTS INCLUDING THE COST OF KEY MANAGEMENT PERSONNEL
The2017wagesandsalariesfigureincludesanamountof£205,000(2016:£550,000)relatingtoseverancepay.ThisprimarilyrelatestoorganisationalchangetodeliverthePeopleFirststrategy(seenote15fordetails).
Thetablebelowshowswhichbandstheemolumentsofindividualstafffellintoduringthefinancialyear.
2017 £’000
2016 £’000
Salariesandwages 18,642 17,019
Socialsecuritycosts 1,406 1,094
Pensioncosts 848 1,961
Otheremployeebenefits 1,394 1,097
Temporaryemployees 386 306
22,676 21,477
2017 2016
£60,001-70,000 10 12
£70,001-80,000 6 6
£80,001-90,000 4 3
£90,001-100,000 5 1
£110,001-120,000 2 5
£120,001-130,000 3 2
£140,001-150,000 - 1
Totalemolumentsdisclosedintheabovebandsincludeterminationcostsof£43,000(2016:£80,000),andhealthbenefits,housing,dependant’seducationandincometaxcostsof£581,000(2016:£495,000).2016includedcontractforservicepaymentsof£61,000.
Thekeymanagementpersonnelofthecharitycomprisethetrusteeswhomakeuptheinternationalboard,andtheexecutiveteam,ledbythechiefexecutive.AlltrusteesserveVSOvoluntarily.Theydonotreceiveanyemployeebenefits;theyreceivepaymentonlyforreimbursementofoutofpocketexpenses(seenote5).AspartofthechangeprocessVSOimplementedinthepreviousfinancialyear,thekeymanagementpersonnelgroupwasreorganised,withtheteamofninereplacedwithafivememberexecutiveteam.Thetotalcompensationpayable,includingemployersNIcontributions,pensionandterminationcosts,was£595,000(2016:£782,000).
7 EMPLOYEE NUMBERSAveragemonthlyheadcountandfull-timeequivalent(FTE)numberofpersonsemployed:
2017Headcount
2017FTE
2016Headcount
2016FTE
UK 244 242 241 230
Restofworld 566 557 479 470
810 799 720 700
8 TANGIBLE FIXED ASSETS – GROUP AND CHARITY
Leasehold improvements
£’000
Furniture, equipment,
fixtures & fittings £’000
Computer equipment
£’000
Assets held overseas
£’000Total
£’000
Cost
At1April2016 1,326 184 1,253 2,079 4,842
Additions - 2 276 558 836
Acquisitionofasubsidiary 9 - 2 - 11
Disposals - - (248) (887) (1,135)
At 31 March 2017 1,335 186 1,283 1,750 4,554
Accumulated depreciation
At1April2016 379 140 856 2,079 3,454
Chargefortheyear 132 18 279 558 987
Acquisitionofasubsidiary 1 - - - 1
Disposals - - (246) (887) (1,133)
At 31 March 2017 512 158 889 1,750 3,309
Net book value
At31March2016 947 44 397 - 1,388
At 31 March 2017 823 28 394 - 1,245
Held by parent charity 815 28 392 - 1,235
Held by subsidiaries 8 - 2 - 10
6463 FINANCIAL STATEMENTS FINANCIAL STATEMENTS
9 INVESTMENTS
Investmentsheldbythecharityat31March2017comprise£2heldinVSOTradingLimited,£953,000heldinVSOIreland,and£nilheldinBeijingVSOConsultingCompanyLimited.VSOTradingLimitedandVSOIrelandLimitedarestatedatcostandBeijingVSOConsultingCompanyLimitedhasbeenwrittendowntoanilvaluebasedonexpectedfuturevalueofthisinvestment(seenote18forfurtherinformation).
10 DEBTORS
Group 2017
£’000
Group 2016
£’000
Charity 2017
£’000
Charity 2016
£’000
Group and Charity
Valueatthebeginningoftheyear - - - 12
Acquisition - - 953 -
Impairment - - - (12)
Value at 31 March - - 953 -
Group 2017
£’000
Group 2016
£’000
Charity 2017
£’000
Charity 2016
£’000
Tradedebtors 2,202 2,000 2,189 2,000
AmountsduefromVSOTradingLimited - - 511 667
AmountsduefromICSconsortiumpartners(workingcapitaladvances) 1,994 2,463 1,994 2,463
Otherdebtors 1,458 958 1,452 958
Accruedincome 4,119 4,512 4,116 4,440
Prepayments 686 700 678 700
10,459 10,633 10,940 11,228
AllamountsaboveareduewithinoneyearwiththeexceptionoftheamountsduefromICSconsortiumpartners,whichareduewithintwoyears.
Legaciesofwhichwehavebeennotified,butnotrecognisedasincome,arevaluedat£nil(2016:£125,000).
11 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Group 2017
£’000
Group 2016
£’000
Charity 2017
£’000
Charity 2016
£’000
Tradecreditors 2,123 1,708 2,120 1,708
AmountsduetoVSOIreland - - 28 2
WorkingcapitaladvancefromDFIDforICS 500 - 500 -
Othercreditors 287 153 259 152
Pensioncontributionspayable 53 83 52 83
Taxationandsocialsecurity 622 503 617 503
Accrualsanddeferredincome 3,398 1,661 3,233 1,656
6,983 4,108 6,809 4,104
Incomeisdeferredwhenitisreceivedaheadofincomerecognitioncriteriabeingmet.
Group 2017
£’000
Group 2016
£’000
Charity 2017
£’000
Charity 2016
£’000
Balanceboughtforward - - - -
Receivedinyear 526 - 121 -
Balance carried forward 526 - 121 -
End of service
£’000
Volunteer flights £’000
Dilapidations £’000
Pension deficit £’000
Total £’000
At01April2016 172 118 286 4,293 4,869
Arisingintheyear - - - 211 211
Utilised/releasedintheyear (172) (26) - (402) (600)
At 31 March 2017 - 92 286 4,102 4,480
12 CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR – GROUP AND CHARITY
2017
£’000
2016
£’000
WorkingcapitaladvancefromDFIDforICS 7,700 8,200
Accruals 139 -
7,839 8,200
ICScontractpaymentsaremadeafterdeliveryofagreedresults.ThecontractprovidesanadvancefromDFIDtomeettheconsortium’sworkingcapitalrequirementsfordeliveryoftheprogramme.TheworkingcapitaladvancewillberepaidinfulltoDFIDbeforethecontractiscompleted.
Nointerestisincurredonanyoftheabovecreditors.
13 PROVISIONS FOR LIABILITIES – GROUP AND CHARITY
Volunteer flightsProvisionismadeinthefinancialstatementsforthecosttothecharityofreturnairfaresforlong-termvolunteersonplacementattheendofthefinancialyear.
DilapidationsTheprovisionfordilapidationsistocovertheprobablefuturecostsofrestoringpropertiestotheirrequiredconditionattheendoftheirlease.
Pension deficitVSOparticipatesinthePensionsTrust’sGrowthPlan,amulti-employerdefinedbenefitschemeintheUK.TherulesofthePlangivethetrusteesthepowertorequireemployerstopayadditionalcontributionsinordertoensuretheschemehassufficientassetstomeetitspastserviceliabilities.Iftheactuarialvaluationrevealsadeficit,thetrusteesagreearecoveryplantoeliminateitoveraspecifiedperiodoftime.TheagreedcontributionbyVSOtothecurrentrecoveryplanhasbeenrecognisedasaprovisionatthepresentvalueoffuturepayments(seenote20forfurtherdetails).
Movement on deferred income during the year
6665 FINANCIAL STATEMENTS FINANCIAL STATEMENTS
14 RESTRICTED FUNDS – GROUP AND CHARITYMovement on restricted funds
Project name Country
Opening balance
£’000
Incoming resources
£’000
Resources expended
£’000
Closing balance
£’000
ABVCinUganda Uganda - 578 43 535
Acceleratedcareandtreatmentformothersandneonates Tanzania 49 129 161 17
AYSRHRinPNG PNG - 222 222 -
BusinessofGirl’sEducation Mozambique (101) 260 159 -
Cash2project Tanzania 32 217 249 -
CoachingonthequalityofcareservicesandhealthmanagementandadministrationatSFRH
Tanzania 110 65 175 -
CocoaLifeCohort4 Ghana (1) 475 474 -
Effect-Education Myanmar 3 195 109 89
Enhancingemployabilitythroughvocationaltraining Tanzania 287 159 306 140
Enhancingthequalityofchildhoodeducation Rwanda - 426 426 -
EUGovernanceforCambodia Cambodia 348 494 303 539
EvaluatingandImprovingPrimaryEducation Africa - 312 312 -
HealthierLivesforPrisonInmatesinZimbabwe Zimbabwe - 193 180 13
InclusiveEducationinEthiopia Ethiopia - 162 151 11
InclusiveEducationinRwanda Rwanda - 211 211 -
IVO4ALL Global (46) 169 65 58
KnowledgeExchange Global 80 232 290 22
LandAccessNetworkforDevelopmentandJustice Zambia 70 101 171 -
Literacy,LanguageandLearningInitiative Rwanda - 172 172 -
MajiProject Malawi 133 104 237 -
MakingMarketsWorkforthePoorII Global 292 590 604 278
MNHinPNG PNG - 257 240 17
Nutrition&DieteticsSupportProject PNG - 194 163 31
Provincialcapacitybuildingproject/UNDP PNG - 256 256 -
PSIPSE Tanzania 19 137 156 -
ReducingNeonatalMortalityinUganda Uganda 13 486 256 243
RegionalHIV/AIDSInitiativeforSouthernAfrica RHAISA 201 565 738 28
RuralEnterprisesSupportProject Ghana 340 786 883 243
SRHR&HIVandAIDSinPrisons RHAISA 449 759 516 692
SistersforSistersEducation Nepal - 719 719 -
StrengtheningEducationManagementPLUS Cambodia - 232 232 -
StrengtheningHIV/AIDSServicesforMARP’sinPNG PNG - 166 166 -
TacklingEducationNeedsInclusivelyII Ghana 838 669 1,100 407
TALKAdolescents:TrainingandLocalKnowledge Zambia 36 174 177 33
T-LEDExtractiveIndustries Tanzania 257 - 238 19
TanzaniaLocalEnterpriseDevelopment(Canada) Tanzania 84 941 887 138
TanzaniaLocalEnterpriseDevelopment(T-LED) Global - 289 137 152
TeacherEducationSupportProgram PNG 92 1,595 1,687 -
TEACHINGTOLEARN Nepal - 153 153 -
UgandaSchoolHealthandReadingProgramme Uganda 12 158 137 33
UnlockingTalentThroughTechnology Malawi 656 1,436 1,725 367
UnlockingTalentthroughTechnology-ScotGov Malawi 32 230 217 45
Youthdevelopmentprogramme Uganda - 274 (11) 285
Otherspecificprogrammefunds* 1,960 3,668 4,068 1,560
6,246 19,610 19,860 5,996
*Programmeslistedindividuallyhaveincomeorexpenditureover£150,000.Allotheramountsareincludedin‘Otherspecificprogrammefunds’.
Theclosingbalanceoftherestrictedfundscomprisestheunexpendedbalancesofdonationsandgrantsheldforspecificpurposes.Itisanticipatedthatanysurplusesonfundswillbeexpendedduringthecomingfinancialyear.
Movement on contracts
Opening balance
£’000
Contract income
£’000
Resources expended
£’000
Closing balance
£’000
InternationalCitizenService(ICS) 2,677 24,761 25,683 1,755
IncomeandexpenditurerelatingtotheabovecontractisrecordedundertheunrestrictedcolumnontheConsolidatedStatementofFinancialActivities.TheclosingbalanceisshownonthebalancesheetasadesignatedfundforICS.Theincomeandexpenditurefortheprioryearwas£26.3mand£25.6mrespectively.
15 UNRESTRICTED FUNDS – GROUP AND CHARITYMovement on unrestricted funds
General fund £’000
Pension deficit repayment plan
£’000
Change Programme
£’000ICS
£’000
Fixed assets £’000
Total £’000
At1April2015 5,206 (3,264) 2,210 3,329 1,676 9,157
Surplus/(deficit)fortheyear 7,314 (1,029) (767) 708 - 6,226
Transfersbetweenfunds 1,648 - - (1,360) (288) -
At 31 March 2016 14,168 (4,293) 1,443 2,677 1,388 15,383
Surplus/(deficit)fortheyear 3,878 191 (240) (922) - 2,907
Transfersbetweenfunds 143 - - - (143) -
At 31 March 2017 18,189 (4,102) 1,203 1,755 1,245 18,290
Designated funds
Pension deficit repayment plan fundThepensiondeficitrepaymentplanfundisequaltothepresentvalueoffuturecontributionspayablebyVSOtomeettheobligationresultingfromafundingagreementtoeliminatethefundingdeficitonthePensionsTrustGrowthPlan(seenote20fordetails).
Change Programme fundThechangeprogrammefundwassetuptofinanceorganisationalchange,whichensuresthatactivitiesareprioritisedandfocusedonamissionbasisandresourcesareefficientlydeployedatprogrammedeliverylevelincountry.
Ofthecurrentyeardeficit,£180,000relatestostaffcosts,includingredundancies,£30,000relatestotravelandaccommodationcostsforleadershipdevelopmentchangeworkshops,£30,000isforconsultancyandprofessionalservices.
Thebalanceiscarriedforwardtofundtheongoingprogrammeofchange.
6867 FINANCIAL STATEMENTS FINANCIAL STATEMENTS
UNRESTRICTED FUNDS (NOTE 15 CONTINUED)ICS fundTheICSfundconsistsofanysurplusofincomeoverexpenditurerelatingtotheICScontracts.
The ICS 1 contract completed in 2015/16. From the surplus of £2.6 million:• £1.2millionderivedfromvolunteerfundraisingactivitieswasretainedforuseonICSinitiatives• £0.7mwasretainedforuseoncontractendcosts(forexample,redundancies)• Thebalancewasreleasedtogeneralfunds.
In2016/17£0.2moftheICS1fundraisingbalancewasinvestedinsecurityandmedicalenhancements.
TheICS2contractdeliveredasurplusof£0.7min2015/16andthiswascarriedforwardaspartoftheICSfundbalance.InthecurrentyeartheICS2contractdeliveredadeficitof£0.3m.Thecontractisforecasttoachieveasmallsurplusbutinrecognitionofuncertaintieswhichcouldreducethissurplus,incomehasbeendeferredattheyearendtoreportabreakevenpositiononthecontracttodate.
Thebalancecarriedforwardat31March2017,therefore,relatesonlytotheremainingICS1fundraisingbalanceandthe£0.7mforcontractendliabilities.
Fixed asset fundThefixedassetfundrepresentstheextenttowhichfundsareinvestedintangiblefixedassetsforusebythegroup.Transferstothefixedassetfundrepresentcapitaladditionslessdisposalsanddepreciationchargesfortheyear.
16 ANALYSIS OF NET ASSETS BETWEEN FUNDS
General fund
£’000
Pension deficit repayment fund
£’000
Change programme
fund £’000
ICS fund
£’000
Fixed asset fund
£’000
Restricted funds £’000
Total funds £’000
Fund balances at 31 March 2016 were represented by:
Tangiblefixedassets - - - - 1,388 - 1,388
Currentassets 18,852 - 1,443 10,877 - 6,246 37,418
Currentliabilities (4,108) - - - - - (4,108)
Long-termliabilitiesandprovisions (576) (4,293) - (8,200) - - (13,069)
Total net assets 14,168 (4,293) 1,443 2,677 1,388 6,246 21,629
Fund balances at 31 March 2017 are represented by:
Tangiblefixedassets - - - - 1,245 - 1,245
Currentassets 25,189 - 1,203 9,955 - 5,996 42,343
Currentliabilities (6,483) - - (500) - - (6,983)
Long-termliabilitiesandprovisions (517) (4,102) - (7,700) - - (12,319)
Total net assets 18,189 (4,102) 1,203 1,755 1,245 5,996 24,286
17 OPERATING LEASESAsat31March2017thecharitywascommittedtomakingnon-cancellableoperatingleasepaymentsovervariousperiods,assetoutinthetablebelow.
2017
£’000
2016
£’000
In the UK
Withinoneyear 391 391
Withintwotofiveyears 1,494 1,512
Inmorethanfiveyears 31 403
Overseas
Withinoneyear 364 588
Withintwotofiveyears 910 189
Inmorethanfiveyears 93 -
3,283 3,083
Asat31March2017thecharitywasentitledtoreceivenon-cancellableoperatingleasereceiptsduringthevariousperiods,assetoutinthetablebelow.
2017
£’000
2016
£’000
In the UK
Withinoneyear 71 71
Withintwotofiveyears 283 283
Inmorethanfiveyears 80 150
434 504
Thereceiptsdetailedaboverelatetothecharity’ssubleaseagreementforpartoftheVSOUKofficebuilding.ThecurrentagreementisduetoendinMay2023.
18 SUBSIDIARY COMPANIESTheVSOGroupcomprisestheparentcharity(VSO)andthreesubsidiaryundertakings. VSO Trading Limited (VSOT) AcompanylimitedbysharecapitalincorporatedinEnglandandWales(companynumber02315724).VSOTradingLimitediswhollyownedbyVSO.Asat31March2017theinvestmentofVSOinVSOTradingLimitedwas£2(2016:£2).
Theprincipalactivityofthesubsidiaryistoorganiseeventsforthepurposeofraisingfundsfortheparentcharity.ThenettaxableprofitofthesubsidiaryistransferredbyGiftAidtoVSO.TheresultsfortheyearofVSOTaregivenbelow. Beijing VSO Consulting Company Limited (VSOC) AcompanylimitedbysharecapitalincorporatedinPeople’sRepublicofChinainJune2012(companynumber110000450208624).
Duetodifficultiesarisingfromthecountry’soperatingenvironmentandtheneedforVSOtoplaceresourceselsewhereinordertoachieveitsobjectives,adecisionwastakenin2014/15towinddownBeijingVSOConsultingCompanyLimited.Thisprocesscantakeanumberofyearsanditexpectedtobecompletedin2018.
7069 FINANCIAL STATEMENTS FINANCIAL STATEMENTS
SUBSIDIARY COMPANIES (NOTE 18 CONTINUED)TheregisteredcapitalofthecompanywasinitiallyvaluedatUS$210,000.TheinvestmentheldbyVSOinBeijingVSOConsultingCompanyLimitedwasimpairedinprioryearsandbasedonitsfutureexpectedvaluewaswrittendowntoUS$nilinthelastfinancialyear.
InaccordancewithChineselegislation,thefinancialyearendofthesubsidiaryis31December.FullaccountsareavailableonrequestfromVSO.TheresultsfortheyearofVSOCaregivenbelow. Voluntary Service Overseas (Ireland) Limited (VSOI) AcharitablecompanylimitedbyguaranteeincorporatedinRepublicofIreland;charitynumberCHY15048,companynumber351799.Thecompanyisawhollyownedsubsidiaryandwasacquiredon31January2017.Therewasnocostofacquisitionandthenetassetvaluehasbeenrecognisedasincomeintheyear.Thenetassetsatacquisitionwere:
£’000
Fixedassets 10
Currentassets
Debtors 36
Bankandcash 961
Totalcurrentassets 997
Currentliabilities 54
Net assets 953
Theprincipalactivityofthesubsidiaryistoimplementprogrammesthatdeliversustainablechangeinthreecoreareas:education,healthandsecurelivelihoods.Thepost-acquisitionresultsofVSOIaregivenbelow.
Subsidiary results and closing funds postion
2017
VSOT £’000
2017VSOC £’000
2017VSOI
£’000
2016VSOT £’000
2016VSOC £’000
Totalincome 521 - 118 423 -
Totalexpenditure 494 - 67 378 5
Net income / (expenditure) 27 - 51 45 (5)
GiftaidpaymenttoVSO 27 - - 45 -
Retained profit / (loss) for the year - - 51 - (5)
Totalassets 636 8 1,088 672 8
Totalliabilities 636 8 73 672 8
Total funds - - 1,015 - -
19 RELATED PARTY TRANSACTIONSTherehavebeennorelatedpartytransactionsthatrequiredisclosure,otherthanthetransactionswithsubsidiarycompaniesdetailedbelow:
2017
£’000
2016
£’000
Grants made to subsidiary undertakings
VoluntaryServiceOverseas(Ireland)Limited-totalfor2016/17 115
VoluntaryServiceOverseas(Ireland)Limited-postacquisition 29
Donations received under Gift Aid from subsidiary undertakings
ProfitdonatedbyVSOTradingLimited 27 45
Payments received from subsidiary undertakings for management services
VSOTradingLimited 24 34
Asat31March2017abalancewasdueformVSOTradingtotheCharityof£511,222(2016:£667,000)andabalancewasduetoVSOIrelandof£28,479.Bothbalancesareexpectedtobesettledwithinoneyear.
20 PENSION COSTSScottishWidowsisthemainschemeavailabletoallUKemployees.VSOofferedthisdefinedcontributionschemefromOctober2009andithasbeentheprimaryschemeforthecharity’semployeessincethen.ScottishWidowshasalsoprovidedanauto-enrolmentschemeforalleligibleUKemployeessinceFebruary2014.
ThePensionsTrustGrowthPlanSeries4wasthepreviousmainscheme;ithasbeenclosedtonewVSOentrantssinceOctober2009.
Thecharityalsocontributestocertainpensionschemesforsomeemployeesbasedoverseas.
Thetablebelowshowsthecostofpensioncontributionsin2017and2016.
2017
£’000
2016
£’000
ScottishWidows 215 228
ThePensionsTrust 78 91
ThePensionsTrust-deficitreductionliability:unwindingofdiscounting 85 53
ThePensionsTrust-deficitreductionliability:revaluation 126 1,370
Other-countryspecificschemes,non-UK 344 219
848 1,961
The Pensions Trust Growth PlanVSOparticipatesinthePensionsTrustGrowthPlan(thePlan),amulti-employerscheme,whichprovidesbenefitstosome1,300non-associatedparticipatingemployers.ThePlanisadefinedbenefitschemeintheUK.
Asat31March2017VSOemployed23(2016:25)activemembersofthePensionsTrustDefinedContributionGrowthPlanSeries4.Deferredmembersandpensionersarealsointhedefinedbenefitscheme.
Asamulti-employerscheme,itisnotpossibleforVSOtoobtainsufficientinformationtoenableittoaccountforthePlanasadefinedbenefitscheme.ThereforeitaccountsforthePlanasadefinedcontributionscheme.
7271 FINANCIAL STATEMENTS FINANCIAL STATEMENTS
PENSIONS COSTS (NOTE 20 CONTINUED)ThePlanissubjecttothefundinglegislationoutlinedinthePensionsAct2004whichcameintoforceon30December2005.This,togetherwithdocumentsissuedbythePensionsRegulatorandTechnicalActuarialStandardsissuedbytheFinancialReportingCouncil,setouttheframeworkforfundingdefinedbenefitoccupationalpensionschemesintheUK.
ThePlantrusteescommissionanactuarialvaluationofthePlaneverythreeyears.ThepurposeoftheactuarialvaluationistodeterminethefundingpositionofthePlanbycomparingtheassetswiththepastserviceliabilitiesasatthevaluationdate.
TherulesofthePlangivethetrusteesthepowertorequireemployerstopayadditionalcontributionsinordertoensurethatthestatutoryfundingobjectiveunderthePensionsAct2004ismet.Thestatutoryfundingobjectiveisthatapensionschemeshouldhavesufficientassetstomeetitspastserviceliabilities,knownastechnicalprovisions.
AfullactuarialvaluationforthePlanwascarriedoutat30September2011.Thisvaluationshowedassetsof£780million,liabilitiesof£928millionandadeficitof£148million.Toeliminatethisfundingshortfall,theTrusteeaskedtheparticipatingemployerstopayadditionalcontributionstotheschemeovera10yearperiodfrom1April2013to31March2023.
AfullactuarialvaluationforthePlanwasagaincarriedoutat30September2014.Thisvaluationshowedassetsof£793million,liabilitiesof£970millionandadeficitof£177million.Toeliminatethisfundingshortfall,theTrusteeaskedtheparticipatingemployerstopayadditionalcontributionstotheschemeforanadditional2.5years,upto30September2025.
VSO’s additional deficit reduction contributions to date are as follows:
£’000
2013/14 371
2014/15 382
2015/16 394
2016/17 439
Thefinal2016/17instalmentof£37kwaspaidinApril2017.Cashpaymentsin2016/17were£402k.
TherecoveryplancontributionsareallocatedtoeachparticipatingemployerinlinewiththeirestimatedshareoftheSeries1andSeries2schemeliabilities.
WherethePlanisindeficitandwheretheemployerhasagreedtoadeficitfundingarrangement,theemployermustrecognisealiabilityforthisobligation.Theamountrecognisedisthenetpresentvalueofthedeficitreductioncontributionspayableundertheagreementthatrelatestothedeficit.Thepresentvalueiscalculatedusingthediscountratedetailedinthesedisclosures.Theunwindingofthediscountrateisrecognisedasafinancecost.
Present values of provision
31 March 2017 £’000
31 March 2016 £’000
31 March 2015 £’000
Presentvalueofprovision 4,102 4,293 3,264
Reconciliation of opening and closing provisions
2017
£’000
2016
£’000
Provisionatstartofperiod 4,293 3,264
Unwindingofthediscountfactor(interestexpense) 85 53
Deficitcontributionpaid (402) (394)
Remeasurements–impactofanychangeinassumptions 126 (67)
Remeasurements–amendmentstothecontributionschedule - 1,437
Provision at end of period 4,102 4,293
Income and expenditure impact
2017
£’000
2016
£’000
Unwindingofthediscountfactor(interestexpense) 85 53
Remeasurements–impactofanychangeinassumptions 126 (67)
Remeasurements–amendmentstothecontributionschedule - 1,437
Costs recognised in the SOFA 211 1,423
Assumptions
31 March 2017% per annum
31 March 2016% per annum
31 March 2015% per annum
Rateofdiscount 1.32 2.07 1.74
Thesediscountratesaretheequivalentsinglediscountrateswhich,whenusedtodiscountthefuturerecoveryplancontributionsdue,wouldgivethesameresultsasusingafullAAcorporatebondyieldcurvetodiscountthesamerecoveryplancontributions.
ThePlanisclassifiedasa‘last-manstandingarrangement’.ThereforeVSOispotentiallyliableforotherparticipatingemployers’obligationsifthoseemployersareunabletomeettheirshareoftheschemedeficitfollowingwithdrawalfromthescheme.Participatingemployersarelegallyrequiredtomeettheirshareoftheschemedeficitonanannuitypurchasebasisonwithdrawalfromthescheme.
Althoughclosedtonewentrants,VSOcurrentlyhasnointentiontowithdrawfromthescheme.
7473 INTRODUCTION INTRODUCTION
THANK YOU
Ourworkwouldnotbepossiblewithoutthesupportanddedicationofmanypeople,partnersandorganisations.Fromthevolunteerswhogiveuptheirtimeandsalariestoworkinourprogrammesaroundtheworld,totheindividualswhochoosetoleaveagiftintheirwillandthestaff,supporters,andfundraiserswhoworktirelesslyonourbehalf.
Here are just some of the organisations and individuals who have made a vital contribution to VSO’s work:
Accenture
AUSAID
BGTanzania
BhartiInfratel
BigLotteryFund
BritishCouncil
Cadbury-Schweppes
Citi
ComicRelief
Cuso
DepartmentforInternationalDevelopment,UK
DepartmentofEducation,PNG
DepartmentofForeignAffairsandTrade,Australia
EuropeanUnion
FaroeIslandsGovernment
FHI360
GREATBritainCampaign
GregDykeandSueHowes
GuernseyOverseasAidCommission
HumanDevelopmentInnovationFund
IBM
IrishAid
Jhpiego
MannionDaniels
MastercardFoundation
MedicorFoundation
Mondelez
MottMacdonald
MrandMrsErrolPereira
NewVentureFund
NORAD
OilSearchFoundation
PalladiumInternationalLtd
PestalozziPCF
PharoFoundation
ProvincialCapacityBuildingProject
RandstadGlobalPartnership
RoyalNorwegianEmbassy
ScottishGovernment
Shell
SintAntoniusStichting
StavrosNiarchosFoundation
SueandGregDyke
SwedishInternationalDevelopmentAgency
SwissDevelopmentCorporation
Syngenta
TheAdrianandJaneFrostCharitableTrust
TheGrocers’Charity
TheKilwaughterChemicalCompanyLtd
TheKirbyLaingFoundation
TheMillionHoursFund
TheSwireCharitableTrust
TheZochonisCharitableTrust
UNICEF
USAID
Vodafone
WaterAid
WeeshuisDerDoopsgezinden
ZVMRangoonwalaFoundation
ZochonisCharitableTrust
THANK YOU
75INTRODUCTION
VSO
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KT26QJ
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+44(0)2087807500
vsointernational.org
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If you would like to know more about VSO’s work worldwide, visit www.vsointernational.org
VoluntaryServiceOverseasisregisteredinEngland(number00703509)RegisteredcharityinEnglandandWales(number313757)andScotland(numberSC039117)