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2020-03-31-accounts

THE CHALLENGER TRUST

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

(Registered Charity Number 1068226) (Company Registration No. 03498961 (England and Wales))

Thomas & Young Limited Chartered Accountants Solihull

THE CHALLENGER TRUST

CONTENTS

Page Legal and administrative information 1 - 2 Trustees' Report 3 – 7 Independent Examiners’ Report 8 Statement of Financial Activities Balance Sheet Notes to the Accounts 11 - 18

Page 1

THE CHALLENGER TRUST

Charity Information

Chairman Mr D Rowe

Trustees Mr A F Green Mr M R Wheatley Mr R W Blackwell (resigned 01.09.20) Mr D Rowe (appointed 01.09.20) Charity Number 1068226 Company Number 03498961

Page 2

THE CHALLENGER TRUST

Charity Information (Continued)

Charity Offices Unit 8a The Courtyard Registered office Hatton Technology Park Dark Lane Hatton Warwick CV35 8XB Bankers Lloyds TSB Ealing London Independent Examiner Thomas & Young Limited Carleton House 266-268 Stratford Road Shirley Solihull West Midlands B90 3AD

Page 3

THE CHALLENGER TRUST

REPORT OF THE TRUSTEES

For the year ended 31 March 2020

The Trustees present their report for the purposes of Part 8 of the Charities Act 2011 for the year ended 31 March 2020.

TRUSTEES

The Trustees who served during the year, and who have resigned or been appointed, are named on page 1.

PRINCIPAL OFFICE

The principal office is:

Unit 8a The Courtyard Hatton Technology Park Dark Lane Hatton Warwick CV35 8XB

ADVISORS DURING THE YEAR

Independent Examiner: Thomas & Young Limited Bankers: Lloyds TSB, Ealing, London

OBJECTIVES AND ACTIVITIES

The Challenger Trust’s chief objective is to advance education, in particular, but not exclusively, by the promotion of the development of vital character attributes, such as resilience, determination, ambition and self-confidence, which will raise a young person’s aspirations, engage them in the education system and improve academic achievement. The charity promotes active participation of young people in comprehensive learning outside classroom (‘character education’) programmes that include, but are not limited to, outdoor education, performing arts, pupil to pupil supervision, farm visits, sports fixtures, enterprise training and personal development expeditions overseas. The Trust assists school, colleges and other educational institutions to install the capacity to deliver such programmes of character development and provides financial assistance to young people towards the costs of participating in such programmes.

The Charity is organised so that the Trustees meet at least three times a year, when they take strategic decisions and award and review grants to individuals and/or organisations (schools, local education authorities or other educational bodies) that have applied to, or been working in partnership with the Charity.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Page 4

THE CHALLENGER TRUST

REPORT OF THE TRUSTEES (continued)

RECENT ACTIVITIES

The Trust has had a series of notable successes during 2018-20, despite a worsening and then collapsing funding environment. A Personal Development Plan has appeared in the Ofsted inspection framework for secondary schools, and CT was represented on the DfE Character Working Group. We have been invited to ‘feed in’ to the Downing Street Policy Unit on disposal of the manifesto Youth Investment Fund with a view to influencing the shape of Local Youth Partnerships for areas seeking ‘levelling up’.

Notable also was our campaign to sail a ship to New England to commemorate Mayflower400, sadly aborted due to Covid, but beneficial for funding and also profile.

PROGRAMMES

The Challenger Trust’s mission is to give every young person in the UK equal opportunity to access effective character development programmes, which develop essential character traits such as selfconfidence, resilience, ambition and determination. The programmes help young people raise their aspirations, by developing and vital attributes that will increase engagement with the education system, raise academic achievement and improve future employment opportunities.

We believe that character development programmes are vital to the success of a young person’s learning and development and should become a fundamental element of the UK’s education system. The Challenger Trust programme aims for this concept to become embraced by every school in the UK, embedded into the very heart of each school’s ethos.

The Challenger Trust Programme is multi-stage, commencing with an initial Review of current provision and recommendations on how best to install the platform. The Trust can also recommend service providers that deliver the most complete suite of services of character development support to schools, helping schools make savings through centralised, experienced procurement with nationwide economies of scale and relieving the administrative burden from the school.

There are 4 distinct pillars of capacity which constitute a comprehensive provision; the Challenger Review will advise that schools engage elements from each pillar to create the most inclusive programme. These pillars are: Character Measurement System, Trips & Visitors, Expeditions and Enterprise.

CHARACTER MEASUREMENT SYSTEM: MY JOURNEY

Underpinning a successful character development programme is the means for pupils to acknowledge their development. Each school is helped to install a bespoke web-based Character Measurement System (‘My Journey’) on which pupils witness their own progress and outcomes by recording the attributes they have developed during participation in character development activities. Pupils record when they have developed a character attribute and work towards reaching a certain level of attainment where they will be awarded the Challenger Diploma.

Page 5

THE CHALLENGER TRUST

REPORT OF THE TRUSTEES (continued)

OBJECTIVES AND ACTIVITIES (CONTINUED)

TRIPS & VISITORS

The Trust promotes a varied programme of innovative curricular, co-curricular and extra-curricular trips and visitors that support the educational needs of the school whilst keeping pupils fully engaged. This element comprises a wide range of activities including performing arts workshops, museum trips, careers fairs, revision camps, sports fixtures and training, athletic days, language exchange trips, farm visits and music tours.

EXPEDITIONS

Challenger expeditions are specifically focused on character and leadership development, offering excitement and unfamiliarity to take learners out of their comfort zones and develop character attributes that will equip them for life’s challenges. These expeditions are scalable activities that can be delivered at varying levels of budget, adventure and opportunity, from UK expeditions for younger learners, to the ultimate challenge of a 2-week expedition to the Himalayas for Challengers at the end of their character development journey in school.

ENTERPRISE

Key to the Challenger Trust programme is ensuring that pupils with financial challenges are not excluded from participating in activities. The higher-cost expeditions that we recommend are designed to be fully funded by students through the help of enterprise and sponsorship. Pupils engaging in Challenger Enterprise are motivated to take part in all aspects of fundraising and running a business, developing real-life skills that they require in adult working life while raising funds to subside the cost of their own trip. Enterprise activities are varied and ranging in complexity to suit the needs of each age group. Pupils can engage in group enterprise activities such as bake sales, cinema nights, weekly tuck shops and football tournaments or undertake their own activities at home e.g. washing cars and other household chores for family and neighbours.

PUBLIC BENEFIT

The object of the charity is the advancement of education for all and to those who would benefit and as such meets the criteria for public benefit.

The Trustees have had due regard to guidance published by the Charity Commission on public benefit.

EXPEDITION PROVIDERS

The Trust’s due diligence process includes an evaluation of any service provider’s licensed credentials along with those of its staff (CRB checks). Any expedition provider must focus on personal development of participants and not just an adventure holiday provider.

Page 6

THE CHALLENGER TRUST

REPORT OF THE TRUSTEES (continued)

UK PROGRAMME PROVIDERS

Documentation and quotations are obtained annually from organisations in the public, private and charities sector and a decision is made on merit and value for money as to which organisation will deliver the programme on behalf of the Trust. A service level agreement is drawn up with each chosen programme provider.

GRANT MAKING

Grants are made on a discretionary basis, case by case as determined by the trustees.

FINANCIAL REVIEW

RESERVES POLICY

The trustees aim to keep sufficient reserves to enable them to meet current expenditure and at a level that ensures they are being applied for charitable purposes.

The trustees consider that the result for the year and the financial position to be satisfactory.

At the balance sheet the charity had reserves of £9,831

INVESTMENT POLICY AND OBJECTIVES

The Memorandum and Articles of Association of the Charity authorises the Trustees to make and hold investments using the general funds at any one time the Trustees consider it appropriate to maintain any excess on a short-term deposit account with the bank.

RISK EVALUATION

The trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to the major task

FUTURE PLANS

During 2020/21 CT will continue to promote, commission and evaluate learning outside the classroom, in order to provide a platform from which children can have access to the highest quality programmes in a sustainable context regardless of social background.

Key to this strategy is contributing to and supporting the Government’s Character-Building agenda. Meetings with Ministers to influence policy will result in more access to funding for infrastructure and directly support children on programmes. Further research into pupil-driven funding through our enterprise programme will support funding solutions in a difficult economic environment.

We aim during 2020/21 to establish and grow 4 Local Character Partnerships, building on our successes in Gateshead, Aston/Birmingham, Luton and, we hope, Stoke on Trent. These can be used as a model for further expansion in other parts of the country where we are needed.

Page 7

THE CHALLENGER TRUST

REPORT OF THE TRUSTEES (continued)

STRUCTURE, GOVERNANCE AND MANAGEMENT GOVERNING DOCUMENT

The charity is controlled by its governing document, a deed of trust and constitutes a limited company, limited by guarantee, as defined by the companies Act 2006.

The trustees, who are also the directors for the purpose of company law and who served during the year and up to the date of signature of the financial statements are shown on page 1.

RECRUITMENT AND APPOINTMENT OF NEW TRUSTEES

The directors of the company are also charity trustees for the purposes of charity law and under the company’s Articles are known as members. The existing trustees make appointments of new trustees when deemed necessary in order to perform the charity’s objectives effectively.

APPROVAL

This report was approved by the Board of Trustees on and signed on their behalf by:

Mr D Rowe (Trustee)

Page 8

THE CHALLENGER TRUST

Independent Examiner’s Report to the Trustees of The Challenger Trust

I report to the charity trustees on my examination of the accounts of the charitable company for the year ended 31 March 2020, which are set out on pages 9 to 18.

Responsibilities and basis of report

As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the company are not required to be audited under Para 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the company’s accounts carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011Act.

Independent examiner’s statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Mark McLean FCA Thomas & Young Limited Chartered Accountants

Carleton House 266 – 268 Stratford Road Shirley Solihull West Midlands B90 3AD

Dated:

Page 9

THE CHALLENGER TRUST

Statement of Financial Activities for the year ended 31 March 2020

Unrestricted
Note
Funds
£
Income and endowments from:
Donations and legacies
3
85,532
Income from investments
4
9
Total income
85,541
Expenditure on:
Raising funds
5
18,000
Charitable activities
6
59,336
Total resources expended
77,336
Net incoming/(outgoing)
8,205
resources before transfers
Gross transfers between funds
(3,800)
Net movement in funds
4,405
Reconciliation of funds:
Total funds brought forward
3,176
Total funds carried forward
7,581		 Restricted
Funds
£
16,667
-
16,667
-
32,000
32,000
(15,333)
3,800
(11,533)
13,783
2,250
Total
2020
£
102,199
9
102,208
18,000
91,336
109,336
(7,128)
-
(7,128)
16,959
9,831		 Total
2019
£
44,776
-
44,776
-
38,139
38,139
6,637
-
6,637
10,322
16,959

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

Page 10

THE CHALLENGER TRUST

BALANCE SHEET As at 31 March 2020

Note
CURRENT ASSETS
Debtors
11
Cash at bank and in hand

CREDITORS: amounts falling due
within one year
12
Net current assets
Total assets less current liabilities
FUND BALANCES
Restricted
13
Unrestricted		 2020
£
£
12,250
16,559
28,809
(18,978)
9,831
9,831
2,250
7,581
9,831		 2019
£
£
7,008
10,911
17,919
(960)

16,959

16,959
13,783
3,176
16,959		 2019
£
£
7,008
10,911
17,919
(960)

16,959

16,959
13,783
3,176
16,959

16,959
13,783
3,176
16,959

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31[st] March 2020.

Trustees’ responsibilities:

No member of the company has deposited a notice, pursuant to section 476, requiring an audit of these financial statements.

The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

Approved by the Trustees on and signed on its behalf by:

Company Registration No. 03498961

Mr D Rowe (Trustee)

Page 11

THE CHALLENGER TRUST

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 March 2020

Accounting Policies

Charity information

The Challenger Trust is a charitable limited company.

1.1 Accounting convention

These accounts have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for Charities applying FRS 102, the Charities Act 2011 and UK Generally Accepted Accounting Practice as it applied from 1 January 2015. This is a Public Benefit Entity as defined by FRS 102.

The accounts have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for Charities applying FRS 102 rather than the version of the Statement of Recommended Practice, which is referred to in the Regulations, but which has since been withdrawn.

The accounts are prepared in sterling, which is the functional currency. The Monetary amounts in these financial statements are rounded to the nearest £1.

The accounts have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below:

1.2 Going concern

At the time of approving the accounts, they have a reasonable expectation that they have adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the accounts.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designed for other purposes.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.

1.4 Incoming resources

Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount.

Page 12

THE CHALLENGER TRUST

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 March 2020

1 Accounting Policies (Continued)

1.4 Incoming resources(continued)

Income tax recoverable in relation to donations received under Gift Aid or Deeds of Covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

1.5 Investment properties

Investment properties for which fair value can be measured reliably without undue cost or effort are measured at fair value at each reporting date with changes in fair value recognised in net gains/(losses) on investments in the SOFA.

1.6 Intangible fixed assets other than goodwill

Intangible assets required separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

1.7 Impairment of fixed assets

At each reporting end date, the Charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cashflows are discounted to their present value using a pretax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cashflows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/(expenditure) for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the

Page 13

THE CHALLENGER TRUST

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 March 2020

1 Accounting Policies (Continued)

1.7 Impairment of fixed assets (Continued)

increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other shortterm liquid investments and original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

2 Critical accounting estimates and judgements

In the application of the Charity’s accounting policies, they are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Page 14

THE CHALLENGER TRUST

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 March 2020

3
Donations and legacies
Donations & Gifts		 2020
£
102,199
102,199		 2019
£
44,776
44,776
Income from donations and legacies was £102,199 (2019 £44,776) of which £16,667 (2019 £102,199 (2019 £44,776) of which £16,667 (2019
£20,583) was attributable to restricted funds and £85,532 (2019 £24,193) was attributable to
unrestricted funds.
4 Investments
2020 2019
£ £
Interest receivable 9 -
9 -
5 Raising funds
2020 2019
£ £
Professional fundraising 18,000 -
Fundraising and publicity 18,000 -

Page 15

THE CHALLENGER TRUST

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 March 2020

6 Analysis of expenditure on charitable activities

Unrestricted Support Restricted Total
Expenditure Costs Charitable 2020
Activities
£ £ £ £
Programme Costs 36,228 - 32,000 68,228
Consultancy - - - -
36,228 - 32,000 68,228
Grant funding of activities 150 - - 150
(see note 7)
Share of support costs - 20,515 - 20,515
(see note 8)
Share of governance costs 2,443 - - 2,443
(see note 9)

38,821 20,515 32,000 91,336
Analysis by fund
Unrestricted funds 38,821 20,515 - 59,336
Restricted funds
- - 32,000 32,000
38,821 20,515 32,000 91,336
7
Grants payable
Unrestricted Restricted Total
expenditure
expenditure 2020
£
£ £
Grants to institutions:
The Challenger MAT 150 - 150
TMWF - - -
Logan Heal - - -
150 - 150		 Total
2019
£
6,800
21,362
28,162

850

8,407
720
38,139
31,339
6,800
38,139
Total
2019
£
-
750
100
850

Page 16

THE CHALLENGER TRUST

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 March 2020

8
Support costs
Administrative costs
Professional fees
Insurance
Bank charges
Dispute Settlement
Analysed between:
Fundraising
Charitable Activities
9
Governance costs
Legal and professional
Analysed between:
Fundraising
Charitable Activities		 2020
£
-
2,880
4,337
80
13,218
20,515
-
20,515
20,515
2020
£
2,443
2,443
-
2,443
2,443		 2019
£
282
3,312
4,726
87
-
8,407
-
8,407
8,407
2019
£
720
720
-
720
720

Page 17

THE CHALLENGER TRUST

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 March 2020

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration, benefits or expenses from the charity during the year.

10 Employees

Number of employees

The average monthly number employees during the year was:

Employment costs
Wages and salaries
11
Debtors
Other debtors		 2020
2019
No.
No.
0
0
2020
2019
£
£
-
-
2020
2019
£
£
12,250
7,008

Page 18

THE CHALLENGER TRUST

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 March 2020

12 Creditors amounts falling due within one year
2020 2019
£ £
Accruals 18,978 960
13 Restricted Funds
Balance Balance
1 April Incoming Resources Investment 31 March
2019
Transfers		 Resources Expended Profits 2020
£ £ £ £ £ £
Big Lottery 8,000
-		 - (8,000) - -
Ernest Cook 2,250
-		 - - - 2,250
Police & Crime 3,533
3,800		 16,667 (24,000) - -
13,783
3,800		 16,667 (32,000) - 2,250