INTEGRATED EDUCATION FUND

CHAIRPERSON’S REPORT 2012/13 This report addresses the following aspects of the Integrated Education Fund: 1. Operating context for the year 2. Overall Objectives 3. Objectives, Activities and Achievements

3.1 Grant Making - Effective Funding Programmes 3.2 Advocacy - Engaging at a political, educational and personal level 3.3 Major Gift Fundraising - Support for making integration not separation the norm

4. Structure, governance and management 5. Monitoring and Evaluation 6. Financial review 7. Funds held as Custodian Trustee on behalf of others 8. Trustees’ responsibilities in relation to the financial statements 9. Plans for future periods 1. Operating context for the year The year 2012 marked the 20th anniversary of the founding of the Integrated Education Fund (IEF) in Northern Ireland. Between 1981 and the IEF’s first year, 1992, pioneering parents and others, supported by a number of charitable bodies, had already established 18 integrated schools attended by 3,408 pupils. By 1998, when the IEF launched its first ten-year Development and Fundraising Campaign, there were 43 integrated schools with 11,910 pupils. By 2013, the total number of integrated schools had reached 62, providing places from pre-school to post-16, for over 21,000 children. By the financial year 2012/13, the need for the IEF was as great as it had been at its foundation. Parents and schools, not government, are still the driving force behind integrated education placing continued demands on the Fund’s financial resources, so generously provided by our donors. The IEF was operating in a political context characterised by the continuance of a power sharing Executive at Stormont between the five main political parties and with the Democratic Unionist Party (DUP) and Sinn Fein (SF) holding the First and Deputy First Minister positions respectively. Despite the achievement of stable government, political parties were finding it more difficult to achieve consensus on how best to progress a strategy for achieving a shared future. The eagerly anticipated ‘Cohesion, Sharing and Integration’ (CSI) strategy never materialised. Moreover, two of the parties in the Executive disengaged from the CSI talks process entirely, namely the Alliance Party and the Ulster Unionist Party, citing frustration over how the process was being managed by the DUP and Sinn Fein. Failure to agree a shared future strategy was compounded by political disagreement over the flying of the Union flag at Belfast City Hall in November 2012, the result of which quickly led to violent disturbances and street protests across Northern Ireland. Damaging

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images were beamed across the world and once again the fragility of Northern Ireland’s peace process and the enormous financial cost of continued societal division came sharply into focus for all to see. In terms of education, political inertia continued to affect progress on the long awaited single Education and Skills Authority (ESA), a body that has been in development since 2005/06 and at a cost to taxpayers of over £14.97 million (Education Minister, Hansard AQW 19080/11-15, 28 March 2013). Despite assurances that ESA would ultimately save money and streamline services, as well as replace eight education bodies including the five Education and Library Boards and the Council for Catholic Maintained Schools, the legislative process was not yet complete. ESA was stalled and looked set to be dominated by sectoral and political interests, including a new body for Controlled schools but with no representation for integrated, Irish medium or voluntary grammar schools on its Board. So called area based planning of the schools’ estate continued to feature throughout the year with the publication of post primary area plans and draft plans and consultation relating to primary schools. The Education Minister alluded to practical and sustainable solutions, including the potential, where appropriate, of increased sharing in education and innovative local solutions. The reality was precious little evidence of any new shared or integrated models proposed and all the signs of a planning process dominated by the interests of the existing separate sectors. The fact that area based planning was started before the establishment in June 2012 of a Ministerial Advisory Group on Advancing Shared Education spoke volumes. The establishment of the Group, chaired by Professor Paul Connolly, was a commitment made under the Executive’s Programme for Government 2011-2015. The Group was asked to adopt the following definition of 'Shared education' meaning the organisation and delivery of education so that it:

Meets the needs of, and provides for the education together of, learners from all Section 75 categories and socio-economic status;

Involves schools and other education providers of differing ownership, sectoral identity and ethos, management type or governance arrangements; and

Delivers educational benefits to learners, promotes the efficient and effective use of resources, and promotes equality of opportunity, good relations, equality of identity, respect for diversity and community cohesion.

By the end of March 2013, the report was still not published. The IEF Campaign has continued to press for change in our education system. Our mandate is based on the clear public will and support for making integration, not separation, the norm in the education of our children. The Campaign has contributed significantly to the growing political and public debate on this vital issue whilst simultaneously continuing to provide as much support as possible to parents and schools on the ground who, in the absence of meaningful policy change from government, continue to lead the way. 2. Overall Objectives Historically, the Northern Ireland education system evolved into one which separates children; where, from pre-school education upwards, they attend schools which on the whole tend to represent defined religious and community identity. The IEF is a charity with the purpose of furthering integrated education, that is, the education of all children together - Protestant, Catholic,

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and other faiths or none - which can be an essential part of the reconciliation process as well as a constructive means of developing respect, understanding and friendships across the traditional divide, helping to lay the groundwork for a shared society. Children educated together can become better prepared for the increasingly global world we all live in, prepared to expect and understand difference. Demand for places in integrated schools is continuing to grow despite a drop in the overall school-aged population in Northern Ireland. Figures from the Department of Education (NI) show that the number of pupils attending integrated schools, whilst now almost 22,000, have risen only slightly since last year – the number of pupils cannot grow significantly until the number of places available in integrated schools grows. Meanwhile, hundreds children were turned away from integrated schools in 2012/13 because of insufficient places and in many areas there is no integrated provision at all, which is not acceptable. Through the IEF’s strategic plan for 2009 – 14, Towards Tomorrow Together, the Fund is seeking to seize the opportunities presented by the continuous demand for more integrated education, a locally elected power-sharing executive and the optimism of a more politically stable and peaceful Northern Ireland to challenge the norms in our society. The IEF’s specific objectives are to:

Strive to meet parental demand by supporting initiatives that will help integrated education exceed 10% of all school places as soon as possible

Support innovative sharing models and meaningful sharing projects across the traditional educational divide

Harness parental demand in local communities by supporting parent groups/parent pressure groups and supporting independent research into parental demand for integrated schooling in defined areas

Significantly raise the profile of integrated education and the IEF in both the donor/advocacy and grant recipient communities

Increase capacity to influence educational change and win support from political representatives and key influencers

Raise £19.25 million to deliver on these objectives In these ways the Fund is seeking to achieve its overarching aim to make integration, not separation, the norm in Northern Ireland’s education system. To achieve its objectives, the IEF has set clear year-on-year targets in three distinct areas of endeavour: Grant Making, Advocacy and Major Gift Fundraising. 3. Activities and Achievements 3.1 Grant Making - Effective Funding Programmes The IEF offers grants through various programmes; each programme has its own criteria against which applications are assessed and grants made. Key themes are: 3.1.1 Supporting the growth and development of existing integrated schools, including increasing the number of places available 3.1.2 Outreach work 3.1.3 Promoting a culture of trust and understanding in schools of all management types

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3.1.4 Grants to individual schools and projects from donor advised funds 3.1.5 Other opportunities to support integrated schools Financial support may also be provided to groups of parents who have been working together to make integrated provision available in their area. If no other school in their area is able to choose to transform to integrated status and the parent group’s application to the Department of Education for a new integrated school has been turned down, the IEF may be able to provide further financial support. Details of how to apply for grants, together with the relevant forms, are available on the IEF website at www.ief.org.uk. 3.1.1 Existing Integrated Schools This year there have been two grant programmes available for these schools - Increasing Places in Integrated Schools (IPIS) and IEF Support Grants. Funding has come from IEF unrestricted donations and some restricted donations received this year, plus unrestricted reserves. A total of £216,186 in new grants was awarded in 2012/13 from the two programmes. The IEF has been responding to the increasing needs of integrated schools who wish to grow their numbers above their set maximum student intake in order to meet parental demand. A number of integrated schools have been artificially capped by the Department of Education, some even below the Department’s own number for sustainable schools. Evidence of the demand for increased integrated school places is coming from the schools themselves: of the integrated schools which have received IEF grants, four of the primaries and two of the second level schools have each submitted a development proposal to grow their school. The Department of Education has not yet announced its decision on the primaries. One of the second level schools has received approval to increase its intake by 120 pupils over the next five years. The other second level school’s proposal has been turned down by the Department and the IEF is supporting them in seeking a judicial review on this decision, with the support of the Public Interest Litigation Service (PILS). The IEF believes the area planning process is prohibiting the growth of many popular oversubscribed integrated schools, contrary to the Department’s duty to ‘encourage and facilitate’ integrated education. 3.1.2 Outreach Work Northern Ireland’s education system is currently undergoing an area-based planning process. The Minister of Education asked that the plans focus on developing a network of viable and sustainable schools, capable of effectively delivering the revised curriculum and the Entitlement Framework. The IEF offers practical and financial support to schools that are interested in exploring different options on a strategic and area-based level to help ensure that education remains high quality, local, viable, and sustainable. The IEF believes parents and communities should be at the centre of any changes to local education provision and has three grant programmes available to enable parents, the community, integrated and other schools in their area to engage with each other, explore local area solutions and generate interest in the issues.

Grants to support community engagement in education through local conversations that encourage and underpin the participation of residents in dialogue concerning cohesion and integration in education

Grants to support schools wishing to explore the possibility of transforming - transformation enables existing non-integrated schools to move from a perceived single

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identity status to total inclusivity for all identities, and to actively encourage the enrolment of children from Catholic, Protestant and Other backgrounds.

Grants to support schools of all management types that wish to explore opportunities for structural sharing

A total of £57,614 in new grants was awarded in 2012/13 from the three programmes. A recent Northern Ireland-wide poll carried out by polling company Lucid Talk and commissioned by the IEF revealed that 79% of parents interviewed said they would back a move to transform their child’s school to integrated. The results from the opinion poll can be found on the IEF’s website: www.ief.org.uk. 3.1.3 Promoting A Culture of Trust Promoting A Culture of Trust (PACT) is an annual grant making programme which supports projects that promote a culture of trust and the development of paths of reconciliation through education. PACT is open to all schools in Northern Ireland, whether integrated or non-integrated, for projects based in Northern Ireland which involve a partnership of two or more schools. The programme is designed to enable schools to work together in a manner that recognises context and the ability of teachers to create opportunities at a local level. The focus of individual projects is often on cultural background and activities including sport and music. PACT 13 was launched in January 2012 and the total allocated in 2012/13 was £61,039. PACT 14 was launched in January 2013 with a May 2013 allocation date. Each round of the programme relies on the generosity of donors including, in recent years, the Irish Department of Foreign Affairs, British Telecom, Bombardier Aerospace (NI) Foundation and Ulster Carpets. The IEF gratefully acknowledges all their support. 3.1.4 Restricted and Other Grants As well as providing financial support to schools and projects through its various grant making programmes, the IEF also administers restricted donations received for specific purposes, for example from the Eithne and Paddy Fitzpatrick Memorial Fund for Cliftonville IPS and from Jennifer Donnelly and her brother Chris to help Kilbroney IPS with their marketing plans for the school. The Carson Awards are also funded by restricted donations; the Carson family are long-standing, active supporters of integrated education and the Awards give students in integrated schools an opportunity to develop and display their creative skills. 3.1.5 Other opportunities to support integrated schools Grants totalling £621,919 were awarded to a range of projects at pre-school, primary and second level during the year. For example, Hazelwood IC is developing a new STEM (Science, Technology, Engineering and Maths) Centre and the IEF has awarded a grant of £75,000 toward the costs. It is hoped that the Belfast Trust for Integrated Education (BELTIE) will match this funding. The Department of Education was also approached but were unable to provide any financial support so other funders are being sought to cover any shortfall in funding. Due to their new building nearing completion, Lagan Integrated College approached the IEF with the generous proposal to donate 10 of the school’s old mobile classrooms to the Integrated Education Movement, provided the mobiles could be removed within the very tight timeframe necessitated by the building works. As the mobiles were originally put on Lagan’s site by the Department of Education, written permission from the Department was required. Whilst awaiting

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DE agreement, the IEF asked integrated schools to submit an ‘expression of interest’ if they wished to be considered for one of the mobiles. The needs of the interested schools were then considered by the Grants Committee. Written confirmation from DE was not received by Lagan College until February 2012 and there were a number of prohibitive conditions attached to the use of the mobiles: these included the Department not accepting IEF’s assessment of need and using their own criteria to identify schools that should get the mobiles. This, compounded by the delay in gaining approvals from the Department, pushed an already tight timeline beyond what was achievable and it was with regret that the IEF had to withdraw from the project altogether, and the schools requiring the additional accommodation could not benefit from Lagan College’s proposal after all. The Fund continues to support North Coast Integrated College in progressing their proposal for a move to the University of Ulster site in Coleraine, along with a number of different primary schools. The vision is to create an educational campus that can accommodate children from pre-school through to the end of their further education – a ‘cradle to career educational village’. The proposal has support from a controlled primary school, an integrated primary school, and tentative support from two maintained primary schools. The Fund is also helping integrated schools to develop their digital marketing capacity and held a Digital Media Conference in October 2012. The conference also presented the Fund with a number of other opportunities including: raising awareness and showcasing the pioneering aspect of integrated schools, attracting influential corporate endorsement including Facebook, Google, Microsoft, iTeach, Department of Education, C2K, The British Council and the Child Exploitation and Online Protection Centre (CEOP). 3.2 Advocacy – Engaging at a political, educational and personal level The key message for the Fund is to stress the importance of an integrated education system in bringing together divided communities, building the case that greater social cohesion will lead to economic growth, prosperity and gains in social cohesion. The Fund’s 20th Anniversary celebrations provided the backdrop to a focused campaign, developing the four main strands of the current phase of the advocacy strategy: the evidence base; business backing; media support; and political engagement with the aim of realigning the political, civic and media focus on integrated education. A strong evidence base is essential to a successful advocacy campaign and the IEF is currently using a combination of opinion polling and research. Three major, Northern Ireland wide, attitudinal surveys have been commissioned – the first was published in February 2013 and picked up by the Belfast Telegraph, and the second and third are scheduled for publication in September and December 2013. Two omnibus surveys have also been commissioned – the first, a short snap poll was also picked up by the Belfast Telegraph in December 2012, and the second is scheduled for the autumn of 2013. There is currently a panel poll (a representative sample of MLAs) scheduled to be published in June 2013. The purpose of this poll is to highlight the difference, if any, between the opinions held by the public and by their elected representatives on support for integrated education. The Fund is working with leading polling company Lucid Talk and media partners to maximise the political and public impact of the polling. In terms of research, a major academic study has exposed a gulf between political thinking on education and the public appetite for integrated schools in Northern Ireland. The report, from the University of Ulster UNESCO Centre, which was launched in Parliament Buildings Stormont, shows a

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clear trend in party manifestos and policy, moving away from the concept of integrated education even though there is continuing, strong public support for the idea. The report – Integrated Education: A Review of Policy and Research Evidence 1999-2012 — was written by Ulf Hansson, Una O’Connor Bones and John McCord and was commissioned by the IEF. It draws together more than a decade of studies and research relating to integrated education as well as successive opinion polls showing overwhelming support for integrated education in Northern Ireland. Yet the academic study also presents evidence that discussion at the political level has moved to focus on the concept of ‘sharing’ between schools of different sectors and sidesteps the issue of bringing children together in the classroom for all of their school life. Crucially, the report and the involvement of senior academics from the University of Ulster have made a significant and substantial contribution to the discussion about integrated education and the implications and meaning of shared education. The business advocacy aspect of the campaign has gained significant traction over the last year with the focus very much on building and developing relationships with business leaders and organisations. Working with these key business influencers the Fund has generated media coverage by placing articles, comments and interviews in leading publications, including contributions from Ian Coulter, Chairman, CBI Northern Ireland, Dr Joanne Stuart, former Chair of IOD, Denis Rooney, former Chair of the International Fund for Ireland and Tony Carson, leading entrepreneur. A major test of the success of the business advocacy strategy was in gaining support and attendance at a Business Breakfast, which was held in conjunction with the CBI and the Belfast Telegraph in February 2013 at the Crumlin Road Gaol in Belfast. Those attending included representatives of the CBI; the Institute of Directors; the US Consulate General; small businesses and some of Northern Ireland’s largest employers. The subsequent report of the event highlighted some of the innovative and creative discussion which took place and recommendations to the NI Executive on being more proactive in promoting integrated education. A key element to the success of this phase of the campaign was the careful timing of the launch of the UNESCO report, the publication of the polling results and the hosting of the Business Breakfast to create as much media coverage and leverage as possible. The prominence of integrated education as a news story has therefore remained high in the wider broadcast and digital media outlets with debate and discussion happening regularly on many influential programmes. The visit by the HRH the Earl of Wessex to the Fund’s 20th Anniversary reception at Hillsborough Castle in May 2012 provided excellent PR opportunities. In addition, the publication of a 20th Anniversary booklet with a foreword by Senator George Mitchell has quickly become an effective advocacy and fundraising tool by helping to tell the story of the IEF and the importance of its role.

The IEF’s political and policy engagement has intensified over this period, with regular meetings taking place with politicians, political advisors, and a range of influential bodies, including teaching unions, Government watchdog bodies and international organisations always with the view to making the case for the Executive to progress towards a single Integrated Education system. Correspondence with the Minister of Education and political parties on the Education Bill is ongoing and the Fund presented its views on the Education Bill to the Assembly Education Committee in December, as part of an integrated education delegation. Subsequent to the IEF’s and the wider Integrated Education Movement’s advocacy, the Minister has formally confirmed that the Bill will

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be amended to include a statutory duty for the Education and Skills Authority (ESA) to encourage and facilitate integrated education. The ESA will be created by the Education Bill for the administration of education, subsuming the functions, assets and liabilities of various bodies including the five Education and Library Boards (ELBs). The Department of Education will continue to be the policy making body while ESA’s focus will be on management and service delivery. One of ESA’s key functions will be area planning but the consultation period on draft post-primary plans has already ended and the Education and Library Boards have published their latest draft plans. A steering group, chaired by the Department, and with members from the controlled, maintained, integrated and Irish-medium sectors will be set up to co-ordinate and oversee the continuing development of the post-primary area plans. The draft area plans for primary schools have also been published with an extended consultation period to the end of June 2013. The IEF’s Community Engagement in Education (CEE) project seeks to develop and support community involvement in these planning processes primarily through a series of facilitated community events and discussions. The first series of events, nine in all, concluded in June 2012. A report, ‘Community Engagement in the Education Policy Debate’ written by Professor Colin Knox, School of Social Policy at the University of Ulster, summarised the events and was circulated to key stakeholders and policy influencers. The report challenges the Department of Education on the lack of community engagement and consultation on the proposed changes to how education is structured, as well as challenging the lack of creative thinking around how education could be delivered differently - “The draft area plans are nothing more than a cut and paste exercise by the Controlled and Maintained sectors showing little imagination and will reinforce pre-existing ethno-religious boundaries”. The second phase of the CEE project involves supporting and developing events in direct relation to the proposals outlined in the area-based plans. Grants have been given out and projects developed in five areas, and the potential for further work is being explored in two others. The goals remain to help communities see their connection to education, to give them the opportunities to feed into the planning process, and to provide the space for people to identify and explore new cross-sectoral approaches for how education could be delivered. The IEF continues to work in partnership with the Rural Community Network and other local organisations to develop these projects. The IEF has also facilitated two young people’s engagement events, encouraging the participants to reflect on their experiences of separation and sharing, and to think about what they would like our education system to look like in the future. Many wanted to see a fully integrated system. The events were well attended by political representatives, and representatives from the Department of Education. A report summarising the event and its outcomes was delivered to the Department of Education and a group of young people who helped to plan the events will also present their findings to the Department of Education in May 2013. The IEF has developed a multi-layered strategy to promoting transformation as a solution to a range of different issues that a community may be facing. The entire area of work is set within the context of area-based planning and the threat to schools that are below the enrolment criteria. Transformation not only offers solutions in terms of social cohesion and good relations between communities, but will also help many communities particularly in rural areas to ensure that educational provision remains local.

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Investigative work is underway to identify areas and schools that may be open to transformation, given their local context, and/or demographic intake. This is being followed by a communications strategy to ensure that people are aware of transformation as an option that they can explore. Some schools have already expressed tentative interest and the IEF will support these schools in exploring the options open to them. 3.3 Major Gift Fundraising – Support for making integration not separation the norm Since the launch of the current IEF Development Plan in 2009, the generosity and commitment of supporters and donors have ensured the IEF has consistently raised between £1 million and £1.3 million each year. Fundraising activity has reflected the ongoing challenges of global recession and public funding challenges as well as changes to the funding needs of schools and communities. As well as effective grant making, the IEF’s advocacy work and, indeed, the core costs of the IEF as a whole, all depend on the success of our fundraising campaign. The fundraising target for the financial year 2012/13 was £1.336 million. The total amount received was £1.270 million, i.e. a decrease of £31k on the previous financial year. In-year pledges of £515k were also received for 2013/14 or future years. The year 2012 was the 20th Anniversary and we were honoured and delighted to have so many friends and supporters gather to celebrate with us at a reception at Hillsborough Castle. It was a wonderful occasion in beautiful surroundings. His Royal Highness Prince Edward, Earl of Wessex mingled with the guests, and spoke to many of the individuals who had played a role in integrated education over the years. Music was kindly provided by Lagan and New-Bridge Integrated Colleges. Marie Cowan, IEF Chair, presented Prince Edward with a copy of the specially commissioned commemorative book. Staff and students of Lagan College, Northern Ireland’ s first planned integrated school, also welcomed His Royal Highness, The Earl of Wessex to celebrate their 30th Anniversary. His Royal Highness visited a number of classes and pupils made the most of the occasion to showcase some of the additional learning areas they are involved in: Young Enterprise; World Justice; Eco Awareness; World Challenge; Science, Technology, Engineering and Maths initiatives and a student-led project to raise money for children less fortunate than themselves in Sierra Leone. The Carson family continue to be great supporters of integrated education. In May 2012, Frank’s son Tony organised a dinner to commemorate his late father, Frank, and to raise funds for the Carson Awards Programme. The event entitled ‘Craic and Crackling’ was hosted by Richard Corrigan at his Mayfair restaurant in London. The Carson Awards programme supports the creative talents of students at integrated schools under the theme, ‘What integration means to me.’ In 2012, 6 short films and 3 art pieces received Carson Bursaries and an additional Bursary went to the Integrated Schools’ Nitty Gritty Theatre Company. Carson Prizes were also awarded to a further five integrated schools. In February 2013 we had the opportunity to celebrate Frank Carson’s life in a Gala Tribute Show which brought a galaxy of celebrities to the stage of the Grand Opera House in Belfast. The show raised money for two charities dear to Frank’s heart: the Integrated Education Fund and CLIC Sargent Homes from Home Appeal. The comedy and music on stage were combined with warm tributes to the comedian, with many performers speaking of Frank’s passionate commitment to integrated education. We are grateful to the show’s major sponsors, KWS Imports Ltd and Laing

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O’Rourke and to everyone who contributed in so many ways, not least the Carson family for their continuing support and wonderful generosity. In May 2012, the creative talents in integrated primary schools were on display at Scarecrow Street – this has become an established and popular feature of the Airtricity Garden Show Ireland, offering visitors a fantastic welcome to the event at Hillsborough Castle. The competition is sponsored by Allianz and organised by the Integrated Education Fund. The PACT grant making programme also benefitted from sponsors for the 13th round of the programme. Thanks to BT, Ulster Carpet Mills, the Irish Department of Foreign Affairs and Bombardier Aerospace, twenty six schools received funding to work in partnerships on projects ranging from discussing different perspectives on the events of 1916, through exploring traditional drumming in the Irish and Ulster Scots cultures, to working together on environmental improvements. In November 2012, more than 100 donors and friends of the Integrated Education Fund including Peers, MPs and business leaders attended a reception and dinner at the House of Lords hosted by the IEF’s Campaign Chair, Baroness May Blood MBE. The evening was generously sponsored by Tony and Majella Carson and food for thought was provided by two excellent speakers reflecting on their experience of integrated education. Adele Kerr, Principal of Enniskillen Integrated Primary School, was recently made an MBE for her services to education. She told the story of her school from its beginnings after the Remembrance Day bombing in the town 25 years ago. The gathering also heard from Brian Duggan, a former pupil of Oakgrove Integrated College and now a Campaigns Officer with the European Parliamentary Labour Party. The annual event highlights the work of the IEF and offers an opportunity to thank many of our supporters. In March 2013 the IEF was honoured to have been granted a prestigious dinner at Eton College, generously hosted by Lord Waldegrave, Provost, and Dr Andrew Gailey, Vice Provost. This provided an opportunity for the IEF to discuss its work with a number of new and existing supporters. We were grateful for the support of old Etonian, Lord Glentoran and IEF Campaign Council member Guy Beringer for their assistance with the event. Dr Gailey treated the guests to a personal, private tour of the College’s historic buildings. The growth and development of a number of integrated schools are supported by our friends worldwide, particularly through The Ireland Funds, to whom we are greatly indebted. They provide support by funding specific projects, as well as promoting integrated education to their own networks of friends through hosting a variety of events. The 19th annual Eithne and Paddy Fitzpatrick Memorial Golf Tournament was held in May 2012 at one of the USA’s most prestigious and attractive golf courses, Sleepy Hollow Country Club, in Scarborough, NY. The occasion was a huge success, and the IEF is delighted that again Cliftonville Integrated Primary School will be one of the beneficiaries of this event. The tournament was established by Irish-American hotelier John Fitzpatrick to commemorate and honour the charitable spirit of his late parents. Another golf tournament, Kevin Curley’s Shamrock Shoot-out, in the autumn of 2012, has provided support for Cranmore IPS’s proposed new pre-school building which is part of the development of the school’s Children’s Centre. Earlier in 2012 Kevin was able to pay a visit to Cranmore IPS to see at first-hand how the Curley family’s support was benefitting the children at the school. Kevin took the time to not only visit the pre-school and multi-sensory room but also discuss exciting plans for the new Children’s Centre.

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Teresa Keating, Director of the Australian Ireland Fund and the Sir Warwick Fairfax Trust, visited Blackwater IC, Glengormley IPS and Forge IPS in June. A number of schools presented 90th birthday cards for our donor, Lady Mary Fairfax and the IEF recorded special video tributes for her. In August the IEF was delighted to welcome Board members of the Irish American Partnership (IAP), and its esteemed President, Joe Leary to Glengormley IPS. The IAP welcomed the opportunity to see the difference their support has made to the transformation process at the school. Students at Blackwater IC are delighted with the new murals in their canteen and sports hall which a group of young people from Dallas, Texas helped them to create. The youth group also joined Blackwater IC students in drama classes, gardening activities and assemblies, before celebrating their new friendships with a barbecue and Texas line-dance session. The link was first formed as a result of an informal meeting between Brian Small of the IEF and Camilla Ballard, the Head of Youth Ministry at Dallas First Presbyterian Church. The Open Society provided funding for two Citizens Panels, at Oakgrove IC in December 2012 and at Integrated College Dungannon in February 2013. Schools from all sectors took part and the students’ powerful contributions made a big impact on those present. The Fund is developing its digital strategy to really engage with friends and supporters, helping to increase visits to the IEF’s website as well making it easier for people to make donations. The first element of the strategy kicked off in July with the Give as You Live programme which earns the IEF money every time supporters shop online – at NO cost to them! Big-name retailers help registered charities by pledging donations based on a percentage of what shoppers spend. When you sign up to help the IEF it means internet shopping – whether for clothes, groceries, entertainment or electrical goods – is also helping us to bring children of all backgrounds and traditions together, to learn, grow and play. The second element of the strategy will provide an online donations transaction facility so that potential donors can donate securely, direct to the IEF through the Fund’s own website. This new facility will be launched in mid 2013. The IEF Campaign Council, chaired by Baroness May Blood, and comprising a number of the Fund’s supporters, continues to meet twice per year. The meetings are an opportunity to not only review plans and activities, but also provide advice and guidance covering all aspects of our campaign. Their input is invaluable. 4. Structure, governance and management 4.1 Governing Document The Integrated Education Fund (IEF) is a charitable trust established to provide a financial foundation for the development and growth of integrated education in Northern Ireland. It is recognised as a charity by the Inland Revenue under Reference XR52574 and is governed by its Deed of Trust, dated 17 February 1992, amended on 16 February 2000, 16 June 2004, 9 August 2006 and 17 January 2007 to allow for the current governance arrangements. The mandate of the IEF is derived from the expressed demand of parents and individual schools who seek integrated education for their children and pupils.

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4.2 Trustees The Trustees are individuals nominated by the Fund’s three founding bodies as well as individuals co-opted by the Board of the IEF. The Board can have up to fifteen members and each may serve for four years after which period they may put themselves forward for re-appointment for a second or further term, however no member may serve longer than eight years or, if so resolved by all the then Trustees in accordance with the Deed of Trust, twelve years continuously. 4.3 Induction and Training The induction process for any newly-appointed Trustee comprises an initial meeting with the Chair and the Chief Executive, followed by a series of briefing meetings with key members of staff. The financial structure of the Fund, the major gift fundraising campaign, the advocacy campaign, the grant making process, the Board and decision making processes, current issues, policies and the strategy and recent financial performance of the charity are discussed in detail. Regular training in Good Governance is provided for Trustees. 4.4 Organisation The Board of Trustees, which at 31 March 2013 had 10 members, administers the charity; the day to day operations of the IEF are managed by the Chief Executive, appointed by the Board, and her staff. To facilitate effective operations the Board has delegated authority to the Chief Executive for operational matters including finance, human resources etc. The Board meets on an annual basis to agree the broad strategy and areas of activity for the Fund, and meets eleven times per year for the consideration of grant making, advocacy work, fundraising, investment, reserves and risk management policies and performance. The Board keeps the skill requirements for Trustees under review and in the event of a vacancy arising on the Board, or if additional new Trustees are required, methods such as advertising (eg via the IEF website or by direct mailing to all integrated schools), or personal referral are used to recruit Trustees. The ultimate decision on selection is a matter for the Board. The Board has delegated specific powers to a small number of committees: ♦ The Grants Committee has been delegated powers to consider in detail applications to the IEF for funding and to make recommendations to the full IEF Board. The Committee also develops new grant programmes as funding becomes available to ensure that the most critical needs of schools and groups are addressed, and that the programmes have maximum impact and deliver maximum value for money. The Committee is made up of four Trustees and the Chief Executive. The day-to-day administration of grants to projects and the processing and handling of applications prior to consideration by the Grants Committee is carried out by the Grants Officer. ♦ The Advocacy Working Group has been set up by the IEF Board to drive forward change by overseeing the work being carried out in relation to communications, public relations, public affairs and community engagement. It is made up of three Trustees, the Chair of the Campaign Council, and individuals with specific expertise, for example in community engagement. The Working Group is serviced executively by the Fund’s Chief Executive, Communications and PR Manager, and Public Affairs Manager. The Administration and Finance Officer is Secretary to the Group. ♦ The Staffing Committee has been delegated responsibility for ensuring compliance with IEF policies and procedures, and compliance with legal requirements with regard to staffing, and to make recommendations to the Board as appropriate. The Committee is made up of two current Trustees, one former Trustee, the Chief Executive and the Administration and Finance Manager and

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the day-to-day management of Human Resources is delegated to the Administration and Finance Manager. These three committees meet every two months, or more frequently if required. ♦ The Risk Management Committee, on behalf of the Board, identifies and assesses risks to the IEF, and reviews the controls which are in place – see 1.8 Risk Management Statement. In addition to the Board of Trustees and its committees, the IEF also has a Campaign Council to provide advice and guidance for its major gift fundraising campaign. David Montgomery is President of the campaign, and the Council is chaired by Baroness May Blood and serviced executively by the Fund’s Chief Executive and Campaign Director. The campaign is further supported by volunteers in London and Belfast. 4.5 Funding The Integrated Education Fund was established in 1992 with money from the European Union Structural Funds, the Department of Education (NI), the Nuffield Foundation and the Joseph Rowntree Charitable Trust. The IEF works from its capital base which is supported by its major gift fundraising campaign, and can also act as an intermediary body to administer grants and donations on behalf of other outside funding bodies. 4.6 Reserves policy - Unrestricted Reserves In 1992, when the IEF was first established, the Fund received endowments totalling over £2 million. Between 1997 and 2009, the IEF financially supported a number of integrated schools which the government had refused to fund and so, whilst the majority of these schools grew and eventually received government funding, over time the IEF reserves were depleted. At the end of March 2013 the IEF had just over £1.055 million in unrestricted reserves and it is the Fund’s policy to endeavour to keep unrestricted reserves at this level in order to underpin its work. 4.7 Reserves policy - Restricted Reserves At the end of March 2013 the IEF had £1.447 million in restricted reserves. It is the policy of the IEF to use these funds solely for the purposes specified by the particular donor, for example a trust or foundation, or an individual or corporate donor; such purposes include support for specific integrated schools or grant programmes. 4.8 Risk Management Statement The Board of Trustees is responsible for the management of risks faced by the Integrated Education Fund. Detailed considerations of risk are delegated to the Risk Management Committee, which is made up of three Trustees (the Chair, one of the Deputy Chairs and the Treasurer), the Chief Executive and the Administration and Finance Manager, and meets twice per year. Risks are identified and assessed, and controls are established throughout the year. A formal review of the charity’s risk management processes, including the risk register, is undertaken on an annual basis.

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The key controls used by the IEF include:

Established organisational and governance structure and lines of reporting

Detailed terms of reference for all committees

Comprehensive financial planning, budgeting and management accounting

Formal written policies and hierarchical authorisation and approval levels

Regular review of current risks to the Fund In 2012, in the interests of best practice, the IEF asked a number of firms to tender for the provision of external audit services. This in no way reflects on the excellent working relationship and quality of service the Fund had from its previous auditors. The firm of Finegan Gibson has been appointed as the IEF’s auditors commencing with the financial year ending 31 March 2013. Through the risk management processes established for the Fund, Trustees are satisfied that the major risks identified are being adequately managed. It is recognised that systems can provide reasonable but not absolute assurance that major risks have been adequately managed. 5. Monitoring and Evaluation As part of ongoing risk management, and as important aspects of best practice, monitoring and evaluation are a key part of the IEF’s work. Feedback from end users and interviews with staff, together with the evaluators’ observations and recommendations on policy and practices are used in order to ensure alignment with the Fund’s strategic plan and identify areas for improvement. As well as internal monitoring and controls, external evaluations of various aspects of the Fund’s work are carried out by evaluators experienced in these fields. The last external evaluation of the Fund’s grant programmes took place in 2010 and, in 2012, the Board of Trustees agreed to the Grants Committee recommendation that it was currently not necessary to have an external evaluation of the grant programmes. This decision was in part due to financial uncertainty regarding the future of some of the grant programmes but also because the Grants Committee is thorough in its appraisal of programmes throughout the year. The committee will hold a formal annual review of the grant programmes at the start of each financial year, beginning in April 2013. The planned evaluation of the Fund’s advocacy work will take place when the current funding for the Advocacy Project nears its end, which is likely to be around March 2015. On-going internal monitoring and evaluation is carried out by the Advocacy Working Group and measured against key performance indicators. In terms of fundraising, the Fund continues to increase income year on year in what has become a challenging environment. The report on the last external evaluation of the campaign was received in March 2012 and the Fund is currently implementing the report’s recommendations. For example, a Project Management Team has been created, comprising the Chief Executive, the Campaign Director and the Communications and PR Manager – they meet regularly to review activities and update plans as required to ensure targets are met. Another of the recommendations taken forward was the creation of a new campaign fundraising post – this new post was filled in February 2013. The firm of Finegan Gibson, responsible for the annual financial audit of the IEF, also reports to the IEF Board on, for example, any Audit and Financial Reporting Issues and Internal Controls in order to meet the mandatory requirements of International Standards on Auditing (UK and Ireland).

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6. Financial review Total expenditure this year was £1,471,131 compared with £1,202,955 in the previous year, and is above the total income of £1,357,859 by £104,684. Of the £1,471,131 expenditure, 77% has been spent on charitable activities, 15% on the costs of generating funds and 8% on governance (in the previous year these figures were 72%, 19% and 9%). This year, therefore, a deficit has been transferred from reserves of £104,684 (in the previous year a surplus of £153,186 was transferred to reserves). The IEF has been very fortunate that donors Harvey and Allison McGrath have provided significant funding through The McGrath Trust to support the work of the IEF and a grant from Atlantic Philanthropies has funded our advocacy work. Support from the McGrath Trust will continue through the next three financial years. The Atlantic Philanthropies funding to support the IEF’s advocacy work will continue to March 2015, and transformation support will continue to March 2016. The IEF is extremely grateful for the commitment and the encouragement of these donors. 6.1 Investment policy and performance Under the Deed of Trust, the charity has the power to invest in whatever ways the Trustees think appropriate. The Trustees, having regard to the liquidity requirements of the current grant making programmes, the financial requirements of potential independent schools and to the reserves policy, have determined that available funds are kept in interest bearing deposit accounts, spreading the risk across a number of banks. The day to day operation of the IEF is conducted through the Ulster Bank. During 2012/13 the balance of IEF funds were with the Bank of Ireland, CAF Bank, First Trust Bank, Lloyd’s TSB, Danske Bank, the Progressive Building Society and the Ulster Bank. The level of funds held as cash in a number of banks i.e. £3.8 million in total, will be significantly reduced when outstanding grant commitments are paid out during 2013/14. 7. Funds held as Custodian Trustee on behalf of others 7.1 Sister Anna Charitable Trust This is a Restricted Capital Fund set up with the IEF by Sr Anna in 2004 with the interest from the Trust to be used to contribute to the support of Lagan College Chaplains. The Trust funds are managed by Danske Bank. In the financial year 2012/13, Lagan College received the sum of £3,922 and an improvement in investment opportunities has led to an increase in the capital sum invested from £142,876 in 2011/12 to £157,454 in 2012/13. 7.2 All Children Together On behalf of the charity All Children Together (ACT), the IEF administers funds for ACT. At 31 March 2013, the balance of these monies is £14,587 to be used as directed by ACT.

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8. Trustees’ responsibilities in relation to the financial statements The Trustees endeavour to follow best practice in preparing financial statements which give a true and fair view, and they:

select suitable accounting policies and then apply them consistently

make judgements and estimates that are reasonable and prudent

ensure applicable accounting standards and statements of recommended practice have been followed, with any departures disclosed and explained in the financial statements.

The Trustees are responsible for keeping accounting records which enable them to ascertain and disclose with reasonable accuracy the financial position of the charity and ensure that the financial statements comply both with the law and the provisions of the Deed of Trust. The Trustees are responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 9. Plans for future periods The shape of education in Northern Ireland is under scrutiny as plans for its future delivery are discussed – turning a spotlight on the segregation embedded in the current system. Integrated education is now at the forefront of political and public debate and there is a growing consensus that educating children together is not only a good thing but something that needs to be planned for. The IEF will continue to work to ensure that the voices of the many parents who want to see children of all backgrounds taught together are heard at every stage of the debate. This is a critical time for education in Northern Ireland: far too many empty desks throughout the system (although how this number is calculated has not been fully clarified by the Department of Education); schools ‘stressed’ in terms of enrolment, finances or academic results; and teachers, parents and pupils coping with unprecedented levels of uncertainty about the future. Change must come, and it must come soon, but how to plan for it? There are a number of reports and recommendations currently being considered by the Education Minister, the Department and the Boards. For example, the findings of the Independent Review of the Common Funding Scheme were submitted to the Minister for Education in January 2013. The Ministerial Advisory Group on Advancing Shared Education are publishing their findings at the end of April 2013. The post primary area based plans have been published; the primary plans are to follow shortly. Many recommendations from past reports have not been actively implemented. It remains to be seen which recommendations will be taken up, and what their impact will be. For example, a number of schools are to close or merge and, whilst 30 have been mentioned in consultation documents, beyond those it may take years for many local solutions to be agreed. Changes to education legislation, including the Education Bill, are still not completed and, although the ‘start date’ for the ESA has been given as 2014, it is still unclear what direct impact this will have on integrated schools. Similarly, the Department of Education and Learning commissioned an independent report, Study of the Teacher Education Infrastructure in Northern Ireland, which was completed in February 2013 but this is only the first part of a two stage review. It has recently been

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announced that, in the second stage, an international expert will be asked to consider a wide range of options for reform including shared and integrated teacher training models. Again, whilst exploring opportunities for real change can only be welcomed, the actual impact of this work remains to be seen. In terms of our own existing advocacy, grant making and fundraising strategy and activities, the Fund is able to function with a higher degree of certainty. This is due in no small part to the continued support of the Atlantic Philanthropies and the McGrath Trust who have been working closely with the IEF for a number of years. For example, the Fund is delighted that Atlantic Philanthropies, the international funding body which has supported our advocacy strategy for the past three years, has agreed that we can use their existing grant to extend much of this work for a further year, until March 2015. With the forthcoming local Council, European and Westminster elections, it will be a critical time to put forward the case for integrated education. An additional grant from Atlantic Philanthropies will help support our outreach initiative to promote and work with schools interested in transformation and also provide grants to those existing transformed schools which need support to grow and develop. The Fund will continue to work with PILS to help provide a legal challenge to the Department of Education decision to turn down the Drumragh IC development proposal to increase the permitted enrolment number at the school to meet parental demand. Currently, leave is being sought to bring a Judicial Review of the Department’s decision. The Department will announce its decision on at least four development proposals in the coming year and the Fund will support schools to challenge any negative decisions where possible. The Fund’s current 5 year strategic plan finishes in March 2014 and the Fund needs to consider the educational landscape going forward in order to put a new plan in place for the next 3 to 5 years. With a view to this, and as part of the Fund’s ongoing Board renewal, we will be seeking individuals in the first instance who have fundraising and senior business experience to become Trustees. As always, underpinning all these activities and plans will be the donors and supporters who work with the IEF and the newly strengthened fundraising team to support the schools, to support the pupils and their parents, to bring about long lasting and far reaching reform of our education system. I would like to take this opportunity to thank our many friends and supporters for their continued commitment to integrated education. The work of integrated schools over the last 30 years has clearly demonstrated that educating children together does work. It is not something that dilutes identity, it actually strengthens it. It is a movement for positive change and supported by the majority of citizens. The challenge facing us today is how integration can be placed at the heart of our education system to make integration not separation the norm in Northern Ireland’s schools. ___________________________ Marie Cowan 03 July 2013 Chair, Integrated Education Fund