Marshall Aid Commemoration Commission Account

Transcription

1 Marshall Aid Commemoratio Commissio Accout LONDON: The Statioery Office HC

2 Marshall Aid Commemoratio Commissio Accout Preseted to Parliamet pursuat to Sectio 2(7) of the Marshall Aid Commemoratio Act 1953 Ordered by the House of Commos to be prited o 25 Jue 2013 LONDON: The Statioery Office 25 Jue 2013 HC

3 The Natioal Audit Office scrutiises public spedig for Parliamet ad is idepedet of govermet. The Comptroller ad Auditor Geeral, (C&AG), Amyas Morse is a Officer of the House of Commos ad leads the NAO, which employs some 867 staff. The C&AG certifies the accouts of all govermet departmets ad may other public sector bodies. He has statutory authority to examie ad report to Parliamet o whether departmets ad the bodies they fud have used their resources efficietly, effectively ad with ecoomy. Our studies evaluate the value for moey of public spedig, atioally ad locally. Our recommedatios ad reports o good practice help govermet improve public services, ad our work led to audited savigs of almost 1.2 billio i Crow copyright 2013 You may re-use this iformatio (excludig logos) free of charge i ay format or medium, uder the terms of the Ope Govermet Licece. To view this licece, visit or psi@atioalarchives.gsi.gov.uk. Where we have idetified ay third party copyright iformatio you will eed to obtai permissio from the copyright holders cocered. ISBN: Prited i the UK for The Statioery Office Limited o behalf of the Cotroller of Her Majesty s Statioery Office 06/13

4 Marshall Aid Commemoratio Commissio Accout Cotets Commissioers Report 2 Statemet of Commissio s ad Chairma s resposibilities with respect to the Fiacial Statemets 7 Goverace Statemet 8 The Certificate ad Report of the Comptroller ad Auditor Geeral 10 Statemet of Comprehesive Net Expediture 12 Statemet of Fiacial Positio 13 Statemet of Cash Flows 14 Statemet of Chages i Taxpayers Equity 15 Notes to the Fiacial Statemets 16 1

5 Marshall Aid Commemoratio Commissio Accout Commissioers report for the year eded 31 March 2013 Scope of these accouts Aims ad objectives The aims ad objectives of the Marshall Aid Commemoratio Commissio ( MACC or Commissio ) are set out below: The MACC s aims are to stregthe US-UK relatios ad to promote British ifluece i the Uited States by providig Marshall Scholarships to US Citizes of high academic achievemet, who have the ability to be leaders, opiio formers ad decisio makers i the Uited States ad, by doig so, to express the gratitude of the British people for the Marshall Pla. As future leaders of America, with a lastig uderstadig ad appreciatio of cotemporary British society, Marshall Scholars will add to the edurig ties betwee the British ad America peoples, their govermets ad their istitutios. The MACC s objectives are to stregthe the cultural, ecoomic, trade, persoal ad historic ties betwee the US ad the UK by usig the Scholarships to: motivate Scholars to act as ambassadors from America to the UK ad vice versa throughout their lives thus stregtheig British America uderstadig; raise the profile of the UK i the US, particularly amog its youg people; eable itellectually distiguished youg Americas, their coutry s future leaders, to study i the UK; help Scholars gai a uderstadig ad appreciatio of cotemporary Britai (icludig its role i Europe); ad cotribute to the advacemet of kowledge i sciece, techology, the humaities, social scieces ad the creative arts at Britai s cetres of academic excellece. The pricipal objective of the Commissio s work is, therefore, to make the best arragemets possible to eable Marshall Scholars to carry out their studies ad to put their awards to their fullest use. Statutory backgroud ad historical iformatio The Marshall Scholarships were established by HM Govermet uder the Marshall Aid Commemoratio Act as a expressio of gratitude for the beefits received by the Uited Kigdom uder the Europea Recovery Programme (kow as Marshall Aid) after World War II. The Act, as subsequetly ameded, allows for up to 40 Scholarships per year to be awarded to America college graduates, for teure for a degree course at ay British uiversity, for periods of oe, two ad sometimes three years. The basic structure of the Marshall Scholarships scheme, as described i the Act, remais itact. There are ow eight regioal committees based o the Cosulate districts i Atlata, Bosto, Chicago, Housto, Los Ageles, New York, Sa Fracisco ad Washigto DC. Uder the Admiistrative regulatios these committees shall meet twice aually. I early November they should reduce the applicatios for their regio to a shortlist of ot fewer tha 15 ad ot more tha 20 cadidates. Later i November they should meet agai to iterview those o the shortlist ad select therefrom their allocated umber of cadidates ad three reserves, whose ames will be forwarded to her Majesty s Ambassador i Washigto for cosideratio by his Advisory Coucil. Her Majesty s Cosuls-Geeral at seve Regioal cetres ad the Ambassador s represetative, Washigto, for the eighth, may, if ecessary, call additioal meetigs of the Regioal Committees; such secretarial assistace as the Regioal Committees might eed shall be provided by the Embassy or Cosulate-Geeral cocered. 1 1 & 2 Eliz. 2, c.39 2

6 Marshall Aid Commemoratio Commissio Accout The most dramatic chage sice the iceptio of the scheme has bee the icrease i the umber of Marshall Scholarships. The umber of ew awards icreased from 12 to 24 i 1960, to 30 i 1973, to 40 i From 2004 to 2007 the umber awarded was up to 44, a icrease accommodated by some scholarships costs beig bore by uiversities ad colleges. I recet years the umber of scholarships awarded has varied; 37 i 2008, 40 i 2009, 36 i 2010 (icludig, for the first time, five sigle year Scholarships) 33 i 2011 ad 36 i The Marshall Scholarship programme has established itself as oe of the most prestigious scholarships for youg Americas wishig to udertake graduate study for oe, two or three years at uiversities throughout the Uited Kigdom. I the fifty ie years sice the programme bega, some 1700 America me ad wome have studied i uiversities throughout the Uited Kigdom. Competitio for Marshall Scholarship awards has bee itese from the start. There are ow up to 40 awards, ad i 2012 there were over 28 applicats for each oe. Marshall Scholarship alumi occupy seior ad ifluetial positios i all walks of America life. They have icluded a Supreme Court Justice, members of the Obama admiistratio, members of Cogress, a Nobel Prize wier, Pulitzer Prize wiers, leaders i jouralism, academia, busiess, etertaimet, sports, the military, sciece, egieerig ad law. Accoutig backgroud Uder Sectio 2(7) of the 1953 Act the Commissio is required each fiacial year to prepare accouts of expediture i such form as the Secretary of State for Foreig ad Commowealth Affairs may, with the approval of the Treasury, direct. Orgaisatioal structure The Commissio was set up uder the 1953 Act to: Admiister the Grat-i-Aid; Select the persos to receive the Marshall Scholarships; Place the holders of Marshall Scholarships i Uiversities i the UK; ad Oversee the welfare of the Marshall Scholars throughout their teure i the UK. The Commissio cosists of ot less tha seve or more tha te members appoited by the Secretary of State, of whom ot less tha two shall be chose as persos of emiece i academic matters ad such oe of the members as the Secretary of State may desigate shall be Chairma of the Commissio Marshall Aid Commemoratio Act I additio two Alumi Observers sit o the Commissio. Commissioers are appoited iitially for three years with the possibility of reewal for a further three years. Commissioers are voluteers ad receive o remueratio. 3

7 Marshall Aid Commemoratio Commissio Accout Membership of the Commissio: Dr Joh Hughes (Chair) Mr Michael Birsha Prof. Bob Deaco Prof. Richard Dedy Mr Timothy Horsby CBE Dr Ruth Kosmi (Deputy Chair) Ms Carol Madiso Graham Mr Simo Morris Prof. Eric Thomas Prof. Nigel Thrift Ambassador to Veezuela, Argetia ad Paraguay HM Diplomatic Service (retired) Parter, McKisey & Compay Professor of Iteratioal Social Policy, Uiversity of Sheffield Joit Director, Warwick Uiversity s Cetre for Fusio, Space ad ad Astrophysics Chair of the Horima Museum, ad Chair of Harkess Fellows Associatio Former Head of Europea Ecoomics at HM Treasury Former Executive Director of the Fulbright Commissio i the UK Cosultat Vice-Chacellor, Uiversity of Bristol Vice-Chacellor, Uiversity of Warwick Dr Joh Kirklad, Deputy Secretary Geeral of the Associatio of Commowealth Uiversities is the Commissio s Executive Secretary. I the Uited States the selectio of Marshall Scholars is oversee by the British Embassy i Washigto DC, ad the Cosulates-Geeral i Atlata, Bosto, Chicago, Housto, Los Ageles, New York ad Sa Fracisco. The Commissio s Secretariat is provided by the Associatio of Commowealth Uiversities, whose offices at Wobur House, Tavistock Square, Lodo, WC1H 9HF, serve as its headquarters. Review of activities i the year I the academic year 2012/2013, 44 Marshall Scholars were fully fuded by the MACC. Two Scholars were fully fuded by a exteral body, oe by the British Schools ad Uiversities Fud (BSUF) ad oe by the Aeberg Foudatio. Twety five Scholars were joitly fuded o Partership Scholarships: oe Scholar supported o the Caius Marshall Scholarship; oe Scholar supported o the Glasgow Marshall Scholarship; oe Scholar supported o the Guildhall Marshall Scholarship; three Scholars supported o the Imperial Marshall Scholarship; oe Scholar supported o the Kig s College Cambridge Marshall Scholarship; oe Scholar supported o the Kig s College Lodo Marshall Scholarship; oe Scholar supported o the Leeds Marshall Scholarship; three Scholars supported o the New College Marshall Scholarship; oe Scholar supported o the Nottigham Marshall Scholarship; two Scholars supported o the Nuffield Marshall Scholarship; oe Scholar supported o the Oriel Marshall Scholarship; oe Scholar supported o the Quee Mary Marshall Scholarship; oe Scholar supported o the Royal Academy of Music Marshall Scholarship; 4

8 Marshall Aid Commemoratio Commissio Accout oe Scholar supported o the Somerville Jaet Watso Marshall Scholarship; oe Scholar supported o the St Joh s College Cambridge Marshall Scholarship; oe Scholar supported o the Triity College Oxford Marshall Scholarship; oe Scholar supported o the UCL Marshall Scholarship; oe Scholar supported o the UEA Marshall Scholarship; oe Scholar supported o the Warwick Marshall Scholarship; oe Scholar supported o the Wolfso College Oxford Marshall Scholarship. These agreemets iclude the MACC payig for the Scholars maiteace costs ad the parter uiversity/college waivig the tuitio fees, to the value of 503,579. Two Scholars, who are members of the US Military, were fully fuded but oly received 50% of the stiped as agreed with the US Military academies. Oe further Scholar was fully fuded uder third year fudig agreemets with the Uiversity of Oxford. A further three Scholars were fuded for further study beyod the three years, oe for Imperial College Lodo ad oe for Harvard Uiversity ad oe for UCLA i the USA uder the agreemet with the EPA. A total of 74 Marshall Scholars were fuded either by the MACC or uder fudig agreemets i the UK ad three Scholars were fuded uder the EPA fudig agreemet i the USA. I additio oe Marshall Sherfield Fellow was supported by private fuds from the Marshall Sherfield Fellowship Foudatio. A full report of the Commissio s activities, icludig details o Scholar distributio, selectios ad placemets, ca be foud i its 60th Aual Report which will be submitted to the Secretary of State o 30 September The Commissio is required by the Foreig ad Commowealth Office to submit a Aual Report o its activities from 1 October util 30 September of each year. Copies of the Commissio s aual reports are available i hard copy, ad also electroically o Future Developmets The Commissio has received a additioal grat-i-aid from the FCO of 100,000 for brigig fudig to 2 millio. This eabled the Commissio to award additioal scholarships as well as helpig to meet icreased uiversity tuitio ad maiteace fees. I the Commissio has received 2 millio i Grat-i-Aid agai eablig the Commissio to sustai the umber of Scholarships. The Commissio very much welcomes this FCO vote of cofidece i the value of the Marshall Scholarship programme. It comes at a opportue time, as the Associatio of Marshall Scholars ad the Commissio cosider the possibility of seekig private fuds to supplemet, but ot replace, the grat-i-aid. The Commissio will also cotiue its efforts to icrease the umber of partership scholarships with uiversities ad colleges i the UK. At the same time the Commissio has to meet the challege, both techical ad fiacial, of decidig o, ad project maagig a ew or updated IT system for scholarship applicatios. Fudig for this will come from Commissio reserves. There will also be the opportuity of celebratig the 60th aiversary of the Marshall Scholarship Programme ad reaffirmig the importace of ivestig i the future leaders of tomorrow s USA Fiacial Results for the Year MACC received fiacial support from HM Govermet i the form of 2 millio Grat-i-Aid for the fiacial year (compared to 1.9 millio i ), as idicated i the aual allocatio letters. MACC s expediture icreased by 110,444, more tha the icrease i Grat-i-Aid, to 1,963,694 i from 1,853,250 i

9 Marshall Aid Commemoratio Commissio Accout However, MACC actually received 1,993,979 i Allowig for the prepaymet of third term tuitio fees, the o-committed reserve for MACC fell to 516,179, compared to 593,799 at the start of the year. The Scheme has attracted third party fudig: the Aeberg Foudatio doated 18,361 from a edowmet held by the Associatio of Commowealth Uiversities; the British Schools & Uiversities Foudatio doated 25,000 of which two thirds relates to this fiacial year; ad the US Evirometal Protectio Agecy doated 49,707. These doatios fud additioal Marshall Scholarships. Maagemet ad employmet The Commissio cotiued the arragemet uder which its Secretariat is provided by the Associatio of Commowealth Uiversities (ACU), The Commissio itself does ot have ay employees. Sustaiability The Commissio has cosidered HM Treasury s Guidace o Sustaiability Reportig. As the Commissio is a small No Departmetal Public Body with o staff or assets ad does ot occupy ay office accommodatio, the Commissioers cosider that there is othig material to report. Diversity ad iclusio I appoitig Marshall Commissioers the FCO seeks to be ope ad iclusive ad seeks to recruit ad develop a diverse ad taleted Commissio that is represetative of society today. No-curret assets No o-curret assets were brought ito use this year. Charitable doatios No charitable doatios have bee made by the MACC. Paymets to suppliers The MACC is committed to the prompt paymet of bills for goods ad services received. Paymets are ormally made as specified i the cotract: if there is o cotractual provisio or other uderstadig, they are due to be paid withi 30 days of receipt of the goods or services, or approval of a valid ivoice or similar demad, whichever is later. The MACC has adopted the Better Paymet Practice Code. Auditors The MACC s accouts are audited by the Comptroller ad Auditor Geeral. Issue date The aual fiacial statemets will be approved for issue by the Accoutig Officer o 5 Jue O behalf of the Commissio E J Hughes Chair 5 Jue 2013 J Kirklad Executive Secretary 6

10 Marshall Aid Commemoratio Commissio Accout Statemet of Commissio s ad Chairma s resposibilities with respect to the Fiacial Statemets Uder the Marshall Aid Commemoratio Act 1953, the Secretary of State for Foreig ad Commowealth Affairs, with the approval of HM Treasury, has directed the Marshall Aid Commemoratio Commissio to prepare for each fiacial year a statemet of accouts i the form ad o the basis set out i the Accouts Directio. The accouts are prepared o a accruals basis ad must give a true ad fair view of the MACC s state of affairs at the year ed, its et expediture ad statemet of chages i taxpayers equity for the fiacial year. The accouts should be read i cojuctio with the Aual Report of the Commissio, the 60th of which, coverig the year to 30 September 2013, will be published by the Statioery Office i early I preparig the accouts, the Accoutig Officer is required to comply with the requiremets of the Govermet Fiacial Reportig Maual ad, i particular, to: observe the Accouts Directio issued by the Secretary of State, icludig the relevat accoutig ad disclosure requiremets, ad apply suitable accoutig policies o a cosistet basis; make judgmets ad estimates o a reasoable basis; state whether applicable accoutig stadards as set out i the Govermet Fiacial Reportig Maual have bee followed, ad disclose ad explai ay material departures i the accouts; ad prepare the accouts o a goig cocer basis. The Accoutig Officer of the Foreig ad Commowealth Office has desigated the Chair as the Accoutig Officer of the MACC. The resposibilities of a Accoutig Officer, icludig resposibility for the propriety ad regularity of the public fiaces for which the Accoutig Officer is aswerable, for the keepig proper records ad for safeguardig the MACC s assets, are set out i Maagig Public Moey. I particular: so far as the Accoutig Officer is aware, there is o relevat audit iformatio of which the Commissio s auditors are uaware; ad the Accoutig Officer has take all the steps that he ought to have take to make himself aware of ay relevat audit iformatio ad to establish that the Commissio s auditors are aware of that iformatio. E J Hughes 5 Jue 2013 Chair ad Accoutig Officer 7

11 Marshall Aid Commemoratio Commissio Accout Goverace Statemet Goverace Framework The MACC meets formally three times a year. Commissioer attedace averaged 85 per cet i The Commissio has two sub-committees, the Fiace Committee, which meets three times a year, ad the Educatio Committee, which meets oce a year. These Committees are accoutable to the MACC for fiacial ad educatioal issues. There is also a Audit ad Risk Maagemet Committee (ARM) cosistig of three o-commissio members ad two Commissioers o 31 March The Chair is Mr Graham Beso (o-commissio). This Committee meets four times a year. Register of iterests Marshall Commissioers are required to complete a declaratio of ay iterests. A copy of the Register of Iterests is kept by the Secretariat. Commissio performace The MACC has a aual self-appraisal process i place. The Chair of the Commissio oversees this process. I additio the departig Scholars are surveyed each year o the effectiveess of the Scholarship ad the Admiistratio. These results are reviewed by the Commissio aually. Review of effectiveess As Accoutig Officer, I have resposibility for reviewig the effectiveess of the Commissio, particularly its system of iteral cotrol. My review of the effectiveess of the system of iteral cotrol is iformed by the work of the ACU who have resposibility for the developmet ad maiteace of the iteral cotrol framework, advice from the FCO, the ACU auditors, ad commets made by the MACC exteral auditors i their maagemet letter ad other reports. I have bee advised o the implicatios of the result of my review of the effectiveess of the system of iteral cotrol by the ARM Committee ad a pla to address weakesses ad esure cotiuous improvemet of the system is i place. Commissio Committee reports All audit ad review recommedatios have bee implemeted ad are operatioal. Corporate Goverace The Commissio has cosidered the Corporate Goverace Code. The Code s requiremets are most directly applicable to Cetral Govermet. MACC is a small No Departmetal Public Body, so may of the detailed requiremets are ot relevat. However where the Code is materially relevat, the Commissio cosiders that it does coform. Risk assessmet The followig key priciples outlie the MACC s approach to risk maagemet ad iteral cotrol. They are that the Commissio should: have resposibility for overseeig risk maagemet withi the orgaisatio as a whole; have a ope ad receptive approach to solvig risk problems; 8

12 Marshall Aid Commemoratio Commissio Accout make coservative ad prudet recogitio ad disclosure of the fiacial ad o-fiacial implicatios of risks, whilst recogisig them; ad idetify key risk idicators ad closely moitor them o a regular basis. The Commissio s Audit ad Risk Maagemet Committee has a lead role i this area. The Commissio s Risk maagemet policy sets out its approach to risk maagemet, the roles ad resposibilities of the Commissio ad its executive ad its risk maagemet processes. The Commissio ad its executive seek guidace where appropriate from the FCO o risk maagemet issues. The Commissio ad its executive coduct risk assessmets of some of its activities, eg the aual visit by Scholars to Norther Irelad, Scotlad or Wales. The Commissio s Risk maagemet policy ad risk register are reviewed ad agreed aually by its Audit ad Risk Maagemet (ARM) Committee. Risks are reported to the ARM Committee through the year, by if their commets are required before the ext scheduled meetig. MACC s key busiess processes (fiacial ad o fiacial) are documeted. Durig the year o ew risks were idetified. No sigificat iteral cotrol failures occurred ad there were o lapses of security. Reserves Durig the year the Commissio adopted a Reserves Policy, agreed with the FCO which provides a framework eablig Commissioers to make a realistic assessmet of the value of reserves which are required to be held i respose to idetified eeds ad MACC s circumstaces. The criteria for holdig reserves iclude risk maagemet, potetial ivestmet eeds ad operatioal cash flow requiremets. The Commissio cosiders that reserves should be i the rage betwee 0.5 millio ad 1.5 millio. At 31 March 2013, MACC s reserve (Taxpayer s Equity) was 811,179 ad third party scholarships reserves were 98,857. Scope of resposibility As Accoutig Officer, I have resposibility for maitaiig a soud system of iteral cotrol that supports the achievemet of the Marshall Aid Commemoratio Commissio s policies, aims ad objectives whilst safeguardig the public fuds ad assets for which I am persoally resposible, i accordace with the resposibilities assiged to me i Maagig Public Moey. The Commissio works closely with the FCO s Public Diplomacy departmet which is represeted at meetigs of the Commissio ad its Committees. The Commissio also works closely with the UK Ambassador to the US ad relevat Embassy ad Cosulate staff. The purpose of the system of iteral cotrol The system of iteral cotrol is desiged to maage risk to a reasoable level rather tha to elimiate all risk of failure to achieve policies, aims ad objectives; it ca therefore oly provide reasoable ad ot absolute assurace of effectiveess. The system of iteral cotrol is based o a ogoig process desiged to idetify ad prioritise the risks to the achievemet of MACC policies, aims ad objectives, to evaluate the likelihood of those risks beig realised ad the impact should they be realised, ad to maage them efficietly, effectively ad ecoomically. The system of iteral cotrol has bee i place for the year eded 31 March 2013 ad up to the date of approval of the aual report ad accouts, ad accords with Treasury guidace. The Chair of the Fiace Committee regularly reports to the Commissio o expediture to date, forecast outtur ad projectios for future years. These projectios eable the Commissio to assess the potetial impact of icreased tuitio ad maiteace fees. The Commissio has agai cosidered, together with the FCO represetative, the impact of ay chages i visa requiremets for US studets. Relevat admiistrative staff have obtaied accreditatio (Level 1) with the Office of the Immigratio Services Commissioer. E J Hughes 5 Jue 2013 Chair ad Accoutig Officer 9

13 Marshall Aid Commemoratio Commissio Accout The Certificate ad Report of the Comptroller ad Auditor Geeral to the Houses of Parliamet I certify that I have audited the fiacial statemets of the Marshall Aid Commemoratio Commissio for the year eded 31 March 2013 uder the Marshall Aid Commemoratio Act The fiacial statemets comprise: the Statemets of Comprehesive Net Expediture, Fiacial Positio, Cash Flows, Chages i Taxpayers Equity; ad the related otes. These fiacial statemets have bee prepared uder the accoutig policies set out withi them. Respective resposibilities of the Commissio, Chair ad Auditor As explaied more fully i the Statemet of Commissio s ad Chairma s Resposibilities with respect to the Fiacial Statemets, the Commissio ad the Chair are resposible for the preparatio of the fiacial statemets ad for beig satisfied that they give a true ad fair view. My resposibility is to audit, certify ad report o the fiacial statemets i accordace with the Marshall Aid Commemoratio Act I coducted my audit i accordace with Iteratioal Stadards o Auditig (UK ad Irelad). Those stadards require me ad my staff to comply with the Auditig Practices Board s Ethical Stadards for Auditors. Scope of the audit of the fiacial statemets A audit ivolves obtaiig evidece about the amouts ad disclosures i the fiacial statemets sufficiet to give reasoable assurace that the fiacial statemets are free from material misstatemet, whether caused by fraud or error. This icludes a assessmet of: whether the accoutig policies are appropriate to the Marshall Aid Commemoratio Commissio s circumstaces ad have bee cosistetly applied ad adequately disclosed; the reasoableess of sigificat accoutig estimates made by the Marshall Aid Commemoratio Commissio; ad the overall presetatio of the fiacial statemets. I additio I read all the fiacial ad o-fiacial iformatio i the Aual Fiacial Report to idetify material icosistecies with the audited fiacial statemets. If I become aware of ay apparet material misstatemets or icosistecies I cosider the implicatios for my certificate. I am required to obtai evidece sufficiet to give reasoable assurace that the expediture ad icome recorded i the fiacial statemets have bee applied to the purposes iteded by Parliamet ad the fiacial trasactios recorded i the fiacial statemets coform to the authorities which gover them. Opiio o regularity I my opiio, i all material respects the expediture ad icome recorded i the fiacial statemets have bee applied to the purposes iteded by Parliamet ad the fiacial trasactios recorded i the fiacial statemets coform to the authorities which gover them. Opiio o fiacial statemets I my opiio: the fiacial statemets give a true ad fair view of the state of Marshall Aid Commemoratio Commissio s affairs as at 31 March 2013 ad of the et expediture for the year the eded; ad the fiacial statemets have bee properly prepared i accordace with the Marshall Aid Commemoratio Act 1953 ad Secretary of State directios issued thereuder. Opiio o other matters I my opiio the iformatio give i the Commissioers Report for the fiacial year for which the fiacial statemets are prepared is cosistet with the fiacial statemets. 10

14 Marshall Aid Commemoratio Commissio Accout Matters o which I report by exceptio I have othig to report i respect of the followig matters which I report to you if, i my opiio: adequate accoutig records have ot bee kept; or the fiacial statemets are ot i agreemet with the accoutig records ad returs; or I have ot received all of the iformatio ad explaatios I require for my audit; or the Goverace Statemet does ot reflect compliace with HM Treasury s guidace. Report I have o observatios to make o these fiacial statemets. Amyas C E Morse Natioal Audit Office Comptroller ad Auditor Geeral Buckigham Palace Road Victoria 11 Jue 2013 Lodo SW1W 9SP 11

15 Marshall Aid Commemoratio Commissio Accout Statemet of Comprehesive Net Expediture for the year eded 31 March 2013 Notes Expediture Scholarship costs 2 1,751,408 1,540,628 Selectio process 60,754 79,188 Developmet of the Marshall Scholarship Scheme 28,276 26,976 Admiistratio 3 226, ,334 UK Devolved Govermet itierary 5,205 33,737 Total expediture 2,071,922 1,914,863 Icome Grats ad Doatios from third parties 6 93, ,936 Other icome Total icome 93, ,768 Net expediture before iterest (1,978,012) (1,796,095) Iterest receivable Net expediture for the year (1,977,571) (1,795,806) Cotiuig operatios All activities were cotiuig i the year. The otes o pages 16 to 19 form part of these accouts. 12

16 Marshall Aid Commemoratio Commissio Accout Statemet of Fiacial Positio as at 31 March 2013 Notes 31 March March 2012 Curret assets Trade ad other receivables 9 679, ,044 Cash ad cash equivalets , ,334 Total curret assets 944, ,378 Curret liabilities Trade ad other payables 11 (34,380) (42,750) Assets less liabilities 910, ,628 Taxpayers equity Geeral reserves MACC committed (summer term tuitio fees) 295, ,812 MACC committed (first quarter scholar stipeds) 201, ,000 MACC 314, ,799 Third parties 98, ,017 Total reserves , ,628 The fiacial statemets o pages 12 to 15 were approved by the Marshall Aid Commemoratio Commissio o 5 Jue 2013 ad siged o its behalf by: J Hughes Chair J Kirklad Executive Secretary The otes o pages 16 to 19 form part of these accouts. 13

17 Marshall Aid Commemoratio Commissio Accout Statemet of Cash Flows for the year eded 31 March 2013 Notes Cash Flows from operatig activities Net expediture after iterest (1,977,571) (1,795,806) (Icrease)/decrease i trade ad other receivables (180,904) (176,916) Icrease/(decrease) i trade payables (8,370) 20,745 No cash grat-i-aid 75,484 90,392 Net cash outflow from operatig activities (2,091,361) (1,861,585) Cash Flows from fiacig activities Grat-i Aid received from FCO 1,993,979 1,890,392 Less: o cash grat-i-aid from FCO (75,484) (90,392) Net fiacig 1,918,495 1,800,000 Icrease i et cash ad cash equivalets i the period (172,866) (61,585) Cash ad cash equivalets at the begiig of the period , ,919 Cash ad cash equivalets at the ed of the period , ,334 The otes o pages 16 to 19 form part of these accouts. 14

18 Marshall Aid Commemoratio Commissio Accout Statemet of Chages i Taxpayers Equity for the year eded 31 March 2013 I & E Reserve Total Reserves Notes Balace at 31 March , ,348 Chages i accoutig policy Restated balace at 1 April , ,348 Chages i Taxpayers equity Retaied Surplus/Deficit (1,852,129) (1,852,129) Total recogised icome ad expese for (1,852,129) (1,852,129) Grat from FCO 1,890,392 1,890,392 Balace at 31 March , ,611 Chages i Taxpayers equity Retaied Surplus/Deficit (1,962,411) (1,962,411) Total recogised icome ad expese for (1,962,411) (1,962,411) Grat from FCO 1,993,979 1,993,979 Balace at 31 March , ,179 The otes o pages 16 to 19 form part of these accouts. 15

19 Marshall Aid Commemoratio Commissio Accout Notes to the Fiacial Statemets for the year eded 31 March Statemet of accoutig policies These fiacial statemets have bee prepared i accordace with the Govermet Fiacial reportig Maual (FReM) issued by HM Govermet. The accoutig policies cotaied i the FReM apply Iteratioal Fiacial Reportig Stadards (IFRS) as adapted or iterpreted for the public sector cotext. Where the FReM permits a choice of accoutig policy, the accoutig policy which is judged to be most appropriate to the particular circumstaces of the Marshall Aid Commemoratio Commissio for the purpose of givig a true ad fair view has bee selected. The particular policies adopted by the Marshall Aid Commemoratio Commissio are described below. They have bee applied cosistetly i dealig with items that are cosidered material to the accouts. a Basis of preparatio The fiacial statemets have bee prepared i accordace with the Marshall Aid Commemoratio Act 1953 ad directios made thereuder by the Secretary of State ad with applicable Uited Kigdom accoutig stadards. They have bee prepared uder the historical cost covetio. b Govermet grats Grat-i-Aid is received from the FCO i support of the Scholarship scheme. The grats are voted ad received i respect of the fiacial year edig 31 March; however, they cover the uiversity tuitio fees for the academic year edig 31 July. Uder resource accoutig, the advace paymet of the summer term fees is show as a prepaymet. Grat-i-Aid is used to fiace activities ad expediture which support the statutory ad other objectives of the Commissio ad are treated as fiacig, credited to the Geeral Reserve, because they are regarded as cotributios from a cotrollig party, which gives rise to a fiacial iterest i the residual iterest of NDPBs. Grat-i-Aid is credited to Geeral Reserve o a cash received basis. c Other icome The Scholarship scheme also attracts additioal fudig from other parties which are show separately as Grats ad doatios from Third Parties ad are accouted for o a receivable basis. d Expediture Expediture is accouted for o a accruals basis. e VAT As the supplies are outside the scope of VAT the scheme is ot registered for VAT. Ay VAT icurred o iputs is therefore irrecoverable ad charged to expediture i the year i which it is icurred. f Taxatio As a Executive No Departmetal Public Body the Commissio does ot pay tax o its results for the year. g Cash Balaces All cash balaces are held with commercial baks. 16

20 Marshall Aid Commemoratio Commissio Accout Scholarship Costs Marshall Aid Scholarships 1,643,180 1,479,015 Aeberg Marshall Scholarships 7,592 5,339 US Evirometal Protectio Agecy 82,944 36,497 British Schools & Uiversities Foudatio (BSUF) 17,692 19,777 1,751,408 1,540,628 3 Admiistratio Secretariat 204, ,436 Commissio costs 13,174 21,299 Miscellaeous 8,244 13, , ,334 4 Staff Costs The MACC does ot employ ay staff. The admiistratio of the Scheme is udertake by staff of the Associatio of Commowealth Uiversities uder a service cotract with the Commissio. 5 Net expediture The et expediture for the year is stated after chargig: Auditors remueratio 4,000 4,500 6 Grats ad Doatios from third parties Aeberg Edowmet (via Associatio of Commowealth Uiversities) 18,361 19,558 US Evirometal Protectio Agecy 49,707 81,711 British Schools & Uiversities Foudatio (BSUF) 25,000 16,667 93, ,936 7 New accoutig prooucemets ad future accoutig developmets There are o future accoutig developmets that will have a sigificat impact o the MACC s accouts. 8 Fiacial Istrumets As the cash requiremets of the MACC are met through Grat-i-Aid provided by the FCO, fiacial istrumets play a more limited role i creatig ad maagig risk tha would apply i a o-public sector body. The majority of fiacial istrumets relate to cotracts to buy o-fiacial items i lie with the MACC s expected purchase ad usage requiremets ad the MACC is therefore exposed to little credit, liquidity or market risk. 17

21 Marshall Aid Commemoratio Commissio Accout Trade receivables ad other curret assets Amouts fallig due withi oe year: Accommodatio deposits 22,999 25,032 Trade receivables 25,000 Prepaymets ad accrued icome 631, , , , Cash ad cash equivalets Balace at 1 April 437, ,919 Net chage i cash ad cash equivalet balaces (172,866) (61,585) Balace at 31 March 264, , Trade payables ad other curret liabilities Amouts fallig due withi oe year: Trade payables 17,521 28,348 Deferred icome 8,333 Accruals 8,526 14,402 34,380 42, Movemet o reserves Opeig balace Grat i-aid Doatios & Icome Bak iterest Expediture Closig Balace Geeral reserve Marshall scholarships* 779,611 1,993, (1,963,694) 811,179 Third party reserves Aeberg Foudatio 14,219 18,361 (7,592) 24,988 US Evirometal Protectio Agecy 30,883 49,707 (82,944) (2,354) Dept. of Trade & Idustry 1,984 1,984 Cable & Wireless 50,738 50,738 British Schools & Uiversities Foudatio (2,706) 25,000 (17,692) 4,602 Scottish Govermet 18,899 18,899 Third party scholarships 114,017 93,068 (108,228) 98,857 Total reserves 893,628 1,993,979 93, (2,071,922) 910,036 * The opeig ad closig balaces of the Marshall scholarships geeral reserves iclude 185,812 ad 295,000 respectively for the followig Summer Terms tuitio fees ad therefore the o-committed opeig ad closig reserves for Marshall Scholarships are 593,799 ad 516,179 respectively. 18

22 Marshall Aid Commemoratio Commissio Accout Related party trasactios The MACC is a Executive No Departmetal Public Body of the FCO. The FCO is regarded as a Related Party with which the Commissio s oly material trasactio durig the year was Grat-i-Aid. Noe of the Commissioers or key members of the Secretariat, or other related parties has udertake ay other material trasactios with the MACC durig the year. 19

23 Marshall Aid Commemoratio Commissio Accout For further iformatio about the Natioal Audit Office please cotact: Natioal Audit Office Press Office Buckigham Palace Road Victoria Lodo SW1W 9SP Tel: DG Ref:

24 Published by TSO (The Statioery Office) ad available from: Olie Mail, telephoe, fax ad TSO PO Box 29, Norwich NR3 1GN Telephoe orders/geeral equiries: Order through the Parliametary Hotlie Lo-Call Fax orders: Textphoe: The Houses of Parliamet Shop 12 Bridge Street, Parliamet Square, Lodo SW1A 2JX Telephoe orders/geeral equiries: Fax orders: Iteret: ad other accredited agets ISBN