Report and Financial Statements - Turquoise Mountainturquoisemountain.org/uploads/TM_Annual_Report_Aug2016_short.pdf · Report and Financial Statements ... textile businesses

Report and Financial StatementsFor the Year Ended 31 December 2015

Scottish Charity Number: SC037343Company Number: SC299579

Contents Chief Executive Introduction

Where We Work

Trustees’ Report

1. Objectives and Activities

2. Strategic Report

2.1 Achievements and Performance

2.1.1 Turquoise Mountain Afghanistan

2.1.2 Turquoise Mountain Myanmar

2.1.3 Turquoise Mountain Kingdom of Saudi Arabia

2.2 Financial Review

2.3 Plans for Future Periods

2.4 Principle Risks and Uncertainties

3. Structure Governance and Management

4. Reference and Administrative Information

5. Trustees’ Responsibilities

6. Re-appointment of Auditor

7. Independant Auditor’s Report

8. Financial Statements 8.1 Statement of Financial Activities

8.2 Balance Sheet

8.3 Statement of Cash Flows

8.4 Notes to the Financial Statements

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Plans for Future Periods

3TURQUOISE MOUNTAIN TRUST

W e have had an exciting year, expanding our work in Afghanistan, and starting projects in Myanmar and Saudi Arabia. In the vision of our Founder HRH The Prince of Wales, we work to restore

historic areas and traditional crafts, to provide jobs, skills and a renewed sense of pride in the communities in which we work. The Trustees, staff and I extend our most sincere thanks to our private and public supporters around the world who have made our work possible. In particular we would like to thank our primary funders in 2015, the American people through the United States Agency for International Development, Al Waleed Philanthropies, the Suu Foundation, the Saudi Commission for Tourism and National Heritage, Global Affairs Canada, Lorne Thyssen, and the British Council.

We are particularly proud to have opened the exhibition Turquoise Mountain: Artists Transforming Afghanistan at the Freer and Sackler Galleries, the Smithsonian’s Museums of Asian Art, which will host almost 200,000 visitors over the course of 2016. This is an exhibition, not of objects, but of stories. It traces the regeneration of Murad Khani, the heart of Kabul’s Old City, and the rebuilding of the Afghan craft industry through five artisans, their stories and their traditions. This is a window into a different Afghanistan than the world typically sees, and we hope the beginning of lasting connections to markets that support the thousands of artisans across Afghanistan working with Turquoise Mountain.

In Kabul we are working to train artisans and connect them with international markets. We hope to enable over $1 million in sales this coming year, working with over 20 smalll artisan businesses and creating hundreds of new or better jobs. Our clinic will see over 18,000 patients this year, 70% of whom will be women and girls, and our primary school will provide education to equal

Chief Executive Introduction

numbers of boys and girls. Finally we will continue to train traditional builders in the historic old city of Kabul where we have already restored over 110 traditional buildings.

In Myanmar we restored our first building in Yangon’s Historic Downtown, in partnership with the Yangon Heritage Trust and the Prince’s Foundation for Building Community. Our work in the craft industry has begun, and we launched our first line of handmade fine jewellery at New York and Paris fashion week. This is the first step in our collaboration with Daw Aung San Suu Kyi’s Suu Foundation to strengthen Myanmar’s craft industry as a means of employment and pride for the country.

Finally in Saudi Arabia we have worked with over 450 artisans, almost entirely women, in traditions across the Kingdom, from plasterwork in Jeddah and textiles in Qassim, to jewellery in Medina and painting in Asir. These artisans are leading the revival of Saudi handicrafts, and are working with Afghan artisans, and others around the world, to create high end traditionally-rooted products for Saudi markets.

Turquoise Mountain is devoted to preserving culture and heritage around the world and will work to drive incomes and a sense of pride through these traditions. Thank you all for your support.

Shoshana StewartChief Executive Officer

Turquoise Mountain


Turquoise Mountain: Where We WorkIn 2015, Turquoise Mountain instigated and oversaw projects all around the world

Myanmar Preserving culture & heritage

Washington D.C. USA Exhibition

London, UK Exhibition

Afghanistan Preserving culture & heritage

Saudi Arabia Preserving culture & heritage


T he Trustees present their report along with the financial statements of The Turquoise Mountain Trust for the year ended 31 December 2015. The financial statements have been prepared in accordance with

the accounting policies set out on pages 18 to 20 and comply with the charity’s constitution, the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended), and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective1 January 2015).

Trustees’ Report

Objectives and Activities

1.


Turquoise Mountain has transformed Murad Khani, from slum conditions into a vibrant cultural, educational and economic hub. Turquoise Mountain has restored over 110 historic buildings, cleared 30,000 cubic metres of rubbish and installed full infrastructure and services throught the community. A primary school and a health clinic serving over 18,000 patients per year ensure that every member of the community, and many from across the old city, have access to quality primary education and health.

The Institute for Afghan Arts and Architecture, an internationally accredited vocational institute, now sits at the heart of Murad Khani training a new generation of Afghan artisans in woodwork, calligraphy and miniature painting, ceramics, jewellery, textiles and gem-cutting.

Murad Khani now serves as a highly visible symbol of cooperation between Afghanistan, the international community, and the residents and students of the old city of Kabul. On the strength of its success in Afghanistan, the Trustees asked the CEO to consider other countries facing similar risks to their built heritage and traditional crafts. Following a period of research, assessment and planning, Turquoise Mountain began to operate in Myanmar and in the Kingdom of Saudi Arabia in earnest in 2015. It has completed its first building restoration in Myanmar and successful lines of craft products in Myanmar and Saudi Arabia.

The Turquoise Mountain Trust was established in 2006 at the behest of HRH The Prince of Wales. Turquoise Mountain’s aim was to revive Afghanistan’s traditional crafts, and to regenerate Murad Khani, a historic area of Kabul’s old city known for its rich cultural heritage. Since then we have begun work in Myanmar and the Middle East to preserve historic areas and traditional crafts.

Objectives and Activities

Strategic Report

2.


5To maintain a strong financial base, with sufficient reserves

and significant core funding from a diverse range of funders.

4To communicate, both

domestically and internationally, the importance of art, built heritage

and traditional skills through a range of channels including exhibitions, print and digital

media, events and public speaking.


Strategic Report

1The restoration and

preservation of historic built heritage at risk in selected sites

worldwide.

1To restore and preserve

historic built heritage at risk in selected sites worldwide.

2To support and preserve

the growth of traditional artisan industries in selected countries worldwide.

3To strengthen existing and

build new value chains between affiliated artisans with both domestic

and international clients. This will uplift the value of the artisan

sector in each country of operation.

Turquoise Mountain

identifies 5 key strategic aims

10TURQUOISE MOUNTAIN TRUST TURQUOISE MOUNTAIN TRUST

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2.1 Achievement and Performance

This year has seen real progress against the charity’s strategic aims, and the following text looks at those achievements in each of the countries within which we operate.

Strategic Report


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Turquoise Mountain Afghanistan

2.1.1


Strategic Report: Turqouise Mountain Afghanistan

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Artisan Sector Business DevelopmentSkills – Production Development, Business Mentoring and Networking

This year the business development department:

Set up several graduates of the Institute in business in the old city, and provided intensive business mentoring to 16 small and medium-sized artisan businesses with over 150 employees

Rolled out the Artisan Toolkit, a business training programme designed for the Afghan artisan sector

In the years to end 2015 we have supported affiliated businesses to achieve nearly $890,000 of sales

Provided technical training to artisan businesses, for example UK-jeweller Jonas Mace, providing training on gold-plating, advanced silverwork, and casting techniques

Market-Making – Growth of International Sales

In 2015, The Business Development Department has secured sales for supported business with international retailers including Pippa Small - London-based jewellery designer; Zara Simon – a British jewellery designer; Bajalia – a US-based retailer of ethical products; Far & Wide Collective – a Canadian online retailer specializing in artisanal products from around the globe; Smithsonian Enterprises – the retail arm of the Smithsonian Museum in Washington D.C.; Aayenda Jewellery – a US/Afghan social enterprise; and Peacock House – a UK/French social enterprise, sourcing one-off collections from conflict-affected countries.

In 2015, Turquoise Mountain has facilitated direct design collaboration with: Christopher Farr (leading contemporary rug designer) Aayenda Jewellery;Jenny Bird and Kara Hamilton for the Far & Wide Collective (Jenny Bird’s jewellery is sold in over 600 retailers and 14 different countries. Kara Hamilton designs jewellery for Beyoncé); Pippa Small jewellery and Belquis Zaher, an Afghan architect and designer living in Istanbul who is also a granddaughter of the last king of Afghanistan (launched at the Milan Triennale April 2016)

Turquoise Mountain has accelerated its work to support textile businesses (for example a Bamiyan-based embroidery company sampling for Christopher Farr and Kit Kemp who owns trend-setting boutique hotels in the UK and US. Turquoise Mountain has also been working with Qaria Cashmere, a cashmere company, to produce woven cashmere samples for sale in London.

A group of Institute graduates set up their own business called Meftah-e Honar (Key of Art) in Kabul, and trained and employed over 90 women and men. This year Meftah-e Honar delivered much of a $650,000 commission to provide the interior artwork for a five-star hotel in Mecca, Saudi Arabia. 600 original hand-painted calligraphy pieces were produced as well as 8,000 prints for the 1,700 rooms of the Anjum Hotel, Mecca, employing 30 women over six months.


Cultural Programmes Changing Perceptions of Afghanistan – Advocacy, Awareness-Raising, and Exhibitions

Smithsonian Museum Exhibition – Freer | Sackler Gallery

Opening in 2016, the exhibition tells a story of ruin to redemption and rebirth: how a once wealthy district of Kabul inhabited by courtiers and craftsmen fell into disrepair through thirty years of civil war, and how this area has once again been revived and restored into a thriving centre of craft and commerce.

The exhibition has been a huge success, making a real impression on the public and is expected to host nearly 200,000 visitors over the course of 2016.

Kites from Kabul at the Victoria & Albert Museum of Childhood

The show ran at the Victoria & Albert Museum of Childhood in London from June to December 2015, during which time it was seen by over 223,00 visitors. It was pick of the month in Time Out and covered by the Daily Telegraph. It was also featured by Al-Ghad al-Arabi, a London-based Arabic satellite TV station.

Other Successes

Turquoise Mountain has displayed and sold Afghan artisan products around the world, including: the Freer | Sackler Museum at the Smithsonian Museum in Washington D.C.; the World Islamic Economic Forum in Kuala Lumpur; and the NY NOW Gift Show in New York.

Turquoise Mountain partnered with the World Bank-funded Artisanal and Small-scale Mining (ASM) project at the Ministry of Mines, which works on the regulatory aspects of the mining of semi-precious gemstones in Afghanistan, as well as on jewellery production and sales.


Turquoise Mountain Institute for Afghan Arts and Architecture

By December 2015, 127 students (100 male, 27 female) were enrolled in the three-year diploma courses offered by the Turquoise Mountain Institute, studying in one of four departments: calligraphy and miniature painting; gem-cutting and jewellery-making; woodwork; and ceramics. The Institute offers accreditation through the UK’s City & Guilds, and the Afghan Ministry of Education.

In March 2015, 43 students (32 male, 11 female) successfully completed their three-year course in the four vocational schools of the Institute.

Silk Copy of the Holy QuranThe Silk Qur’an project has included a total of 62 artisans throughout the production of the Qur’an (4 designers, 21 writers and 37 illuminators).

Graduation and the Graduate SurveyWe continue to survey our graduates: 27% are craft business owners or partners in a craft business, 44% are in craft-related employment, and 9% are pursuing further studies. Of the remainder, 18% of graduates are unemployed and 2% did not respond.

Cultural ActivitiesThe Institute continues to be a center for cultural activities in Afghanistan. This year, activities included:

Calligraphy workshop, competition and exhibition in Herat city.

World Art Day 2015 at the Presidential Palace - President Ghani presented a lifetime recognition award, the Medal of Ghazi Mohammad Akbar Khan, to Mr. Qamaruddin Cheshti, a calligraphy master at the Turquoise Mountain Institute, for his excellent service and hard work in reviving Afghan arts.

International Youth Day 2015 at the Ministry of Culture - the Turquoise Mountain Institute was awarded the ‘Best cultural Institute in the country for 2015’.

OutreachTurquoise Mountain Institute runs an apprenticeship programme with the Kabul Fine Arts Institute in ceramics. Calligraphy workshops were provided for the students of the Murad Khani primary school. And every year Turquoise Mountain joins with the local community in celebrating a traditional Nawruz event in Murad Khani.



After

Before



Community Development

The Ferozkoh Family Health Centre (FFHC) provides medical services to a wide range of patients.

The clinic is providing superior health care, and as such the patient demand is growing. In 2015, 16,861 (12,449 women, 4,412 men) patients, visited the FFHC. The clinic also provided vaccinations for tuberculosis, polio, diphtheria, pertussis, tetanus and measles for children and those who need this vaccine in the community and surrounding area. The clinic provided health education on personnel and environmental hygiene, prevention of disease and maternal health issues for families in the community.

Primary EducationThe Murad Khani Children Art Centre continues to provide a high standard of education for 129 (72 boys and 57 girls) children of the local community.

Embroidery and LiteracyCommunity literacy classes and embroidery training and production are offered to women in Murad Khani.

Architecture and Engineering in Murad Khani

To date Turquoise Mountain has restored 112 buildings in Murad Khani, and installed water supply, sanitation and electricity throughout the community. Over 35,000 cubic meters of rubbish has been cleared from the streets and hundreds of metres of stone pavement laid. There have been ongoing repair works within the community and to the Institute during the past year including maintenance and enhancements to the Institute, the urban realm and community houses. This included an extension to the clinic based on increasing patient numbers.

In addition, in 2015, the engineering department completed a traditional construction training project in Bamiyan province, providing 20 trainees with the skills necessary to find gainful employment in the artisanal and construction sectors, in particular traditional masonry, carpentry, and wood-carving.


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Strategic Report

Turquoise Mountain Myanmar

2.1.2


Turquoise Mountain began in Myanmar in late 2014 working in partnership with the Yangon Heritage Trust whose mission to preserve the historic buildings of downtown Yangon and with the Suu Foundation.

Urban Regeneration

Turquoise Mountain Myanmar began its first renovation of a building at the heart of Yangon’s historic Downtown in 2015 (completed April 2016), in partnership with the Prince’s Foundation for Building Community and the Yangon Heritage Trust.

The project at 491-501 Merchant Street not only secured the future of one of Yangon’s at risk historic buildings and the rich and diverse community within it, but also now acts as an exemplar conservation project to enable and inspire others. It has received considerable government, public and media attention, and is a highly visible symbol from which to launch other regeneration projects.

A comprehensive programme of vocational training in traditional construction skills was run in parallel with the renovation project, and over 250 people were trained during the project in everything from decorative lime plasterwork to surveying of historic buildings.

An exhibition opened within the building called ‘Living Restoration’ which tells the story of all the different elements of the project. There is also a rich programme of events within the exhibition space to encourage engagement from a wide number of different audiences- everything from traditional puppet shows for local school children to a lively 2-day heritage themed debate in partnership with local student group the Yangon Debate League – and these have encouraged thousands of additional people to engage with their heritage.

Strategic Report: Turquoise Mountain Myanmar



After

Before



Reviving the Craft Industry

Turquoise Mountain is partnered with Aung San Suu Kyi’s Suu Foundation in late 2015 focusing initially growing the jewellery industry and supporting artisans throughout the value chain. Together we launched our first 100% handmade in Myanmar line of fine gold jewellery, which made its debut at New York and Paris Fashion Weeks.

Initial Successes

Conducted craft research: with trips to Mogok and Rakhine providing the research on gems and cutting, traditional goldsmithing and a wealth of knowledge at the traditional home of Myanmar goldsmiths.

Assessed and raised quality: we are already producing traditionally inspired jewellery to a standard in Myanmar that has not been seen for many decades. We are bringing back techniques that were at risk of dying out, and designs that were long forgotten.

Supply chain: we have started sourcing semi-precious stones direct from traditional family-run workshops with the aim of keeping as much of the value chain in-country as possible.

We have created and launched one line of jewellery, 100% made in Myanmar with semi-precious stones from Mogok, hand-crafted by goldsmiths from Rakhine.

Received initial orders for the line and started fulfilment, these include a store in Japan, the Pippa Small stores in London and Los Angeles, and a Barney’s Japan.


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Turquoise Mountain Kingdom of

Saudi Arabia

2.1.3


This new venture saw Turquoise Mountain partner with the Saudi Handicrafts Programme to work together on three objectives

To reinvigorate Saudi Arabia’s traditional craft industries

Support Turquoise Mountain artisans and traditional craft industries and,

With Saudi Arabia at the centre point, explore and exhibit the links between Middle Eastern and Central Asian artistic and crafts traditions.

Over its first year, Turquoise Mountain has mapped the craft industry and worked with and provided training and support to over 450 artisans across Saudi Arabia.

This included artisans in the many sectors (fine woodwork, cared plaster, textiles, palm weaving, calligraphy, painting, jewellery, cearmics and stonework) across various locations (Riyadh, Makkah, Medina, Jeddah, Medina, Qassim, Al-Ahsa, Khaybar, and Asir).

A number of Afghan artisans made the trip to the Ribbat in Jeddah in order to share their skills and experience. This collaboration between Middle Eastern and Central Asian artisans often took the form of a cultural exchange as craftspeople found common ground in their traditions whilst sharing new skills.

The craft survey and the initial research document has informed on-going programme decisions at the Saudi Handicrafts Programme.

The programme is now pitching to a number of hotels within the Kingdom which, if successful, could open up client relationships across the Gulf states with these hotel chains.

Strategic Report: Turquoise Mountain Kingdom of Saudi Arabia


Strategic Report

2.3 Plans for Future PeriodThe Charity will deliver its strategic aims through the following plans:

Continue to grow the Afghan artisan

sector, providing support throughout the value chain to artisans and producers across

Afghanistan, in particular Kabul, Mazar and Bamiyan provinces. This is

an expansion of our work, both in terms of location and sector in the

artisan industry, for example textiles and carpets production in Mazar.

Focus on the preservation and

enhancement of Kabul’s historic old city, as a point of

pride, employment and education in Afghanistan. This will provide a model for conflict and post-conflict

preservation and regeneration across the world.

Provide high quality community primary education and healthcare in

the old city of Kabul.

Preserve and promote the Myanmar craft industry, in particular

jewellery, wood, lacquerware and textiles.

In the Kingdom of Saudi Arabia we will focus on

premium, handmade products that tell the story of excellence and tradition for contemporary contexts and clients, and that champion the

revival of crafts to the benefit of artisans.

Build upon and increase total sales of artisan products by connecting artisans

to market.

Support the preservation and regeneration of downtown

Yangon through restoration work and training, in a way which is mindful and demonstrative of environmental considerations.

Create and support international and domestic

exhibitions, including the potential to travel the Smithsonian Artists

Transforming Afghanistan Exhibition.

Maintain and develop sustainably the Intitute for

Afghan Arts and Architecture as Central Asia’s premier vocational

craft centre. Expand the offerings and reach of the Institute in particular

in design, apprenticeships and cultural programmes.

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Strategic Report

2.4 Principle Risks and Uncertainties

Turquoise Mountain’s Board has responsibility for ensuring that:

the charity has an appropriate system of financial and non-financial controls to provide reasonable assurance that it is operating efficiently and effectively. the charity’s assets are safeguarded against unauthorised use or disposition. proper records are maintained. financial and operational information used within the charity or for publication is reliable. Turquoise Mountain complies with relevant laws and regulations.

The key components of Turquoise Mountain’s internal control and risk management environment include the following:

a documented framework of delegated authority with procedures for reporting decisions. an approved business plan and annual budget against which progress is reported on a regular basis, including monthly financial reporting of actual results compared with budgets and forecasts regular review of the critical business systems and policy areas of our operations.

Turquoise Mountain operates a formal risk-management process, culminating in a corporate risk register that identifies the top risks, their likelihood and impact, and the consequent actions necessary to manage them effectively. The process follows good practice methods and guidance from the Charity Commission and others, with risks mapped against the objectives of the charity.

The principal risk that we have identified as having a serious potential impact on performance and future prospects continues to be a significantly worsened security landscape within Afghanistan, prohibiting the organization from fulfilling its obligations to funders and meeting its charitable aims in country.

The Board and senior management are satisfied that appropriate actions have been identified and are being taken so risks are managed effectively.

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Report and Financial Statements - Turquoise Mountainturquoisemountain.org/uploads/TM_Annual_Report_Aug2016_short.pdf · Report and Financial Statements ... textile businesses