2022-03-31-accounts

ChallengeAid Report and accounts 31 March 2022 Challenge, cl fitlfrr o purpose

ChallengeAid

REPORT AND ACCOUNTS

31 March 2022

	CONTENTS
		Page
Company information		2
Report of the Directors		3-5
Accountants Report		6
Statement of financial activities		7
Balance sheet		8
Notes to the accounts		9-10

ChallengeAid

COMPANY INFORMATION

Directors M. Ryan R.J.Bywater J. Cox M. Ellis I.M. Hunt V Jones-Mathias G.E.K Thomas Secretary I.O. Thomas Registered Company Number 5318179 Registered Charity Number 1109055 Registered Office 1 Kings Road Llandovery Carmarthenshire SA20 OAW

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ChallengeAid

REPORT OF THE DIRECTORS

The directors have pleasure in presenting their report and the accounts of the company for the year ended 31 March 2022.

Principal activities

ChallengeAid promotes health and fitness throughout the UK by motivating schools, universities, corporate groups and individuals to undertake physical challenges and raise money through sponsored activity and exercise. Most of our challenges are organised in-house so our costs are far less than those organised by for-profit companies for other charities.

Our pledge is that none of the money raised from any of these challenges or sponsored exercise is used for administrative purposes.

The aim of our charitable giving is to create “Schools of Hope” (SoHs) for aspirational young informal slum dwellers living in extreme poverty, who may not be able to attend school during the day due to family or work commitments. These centres offer a complementary and alternative form of schooling, as well as a unique long term sustainable solution to the provision of education.

We believe that we are one of the very few charities that is able to respond effectively to some of East Africa’s ongoing issues in some of the largest slums without creating a culture of dependency or bringing knee-jerk reactions to the latest crises.

Through our work we enable some of the poorest people in Kenya and Tanzania to escape a lifetime of poverty.

The charity was established in 2005 to help disadvantaged children living in some of the worst conditions in the developing world. This is being achieved by raising the awareness of schoolchildren in the UK about the severe poverty that these children experience, largely through visits and presentations to promote exercise and awareness about the work of ChallengeAid.

Administrative costs are specially covered by trustees’ and private patrons’ donations.

ChallengeAid is a company limited by guarantee.

Financial overview:

The company received funds totalling £96,594 (2021: £109,403) during the year and incurred direct charitable expenditure totalling £41,617 (2021: £85,548). Details of awards made are given in note 4 to the accounts. The balance of funds carried forward at 31 March 2022 is £21,631 (2021: £180).

Review

Schools of Hope

Our major focus continues to be the development of Schools of Hope (SoH), which are designed to provide a complimentary education to children attending school and as an alternative education for children who either work or look after their younger siblings during the day, to help provide a path out of poverty. Most do not have lighting or space in their homes, so attending each evening during the week and during weekends and school holidays allows them to study. ChallengeAid's support covers the provision of text books, desks and chairs, secure storage space and electric lighting. There is also a programme of life skills support, covering topics such as substance misuse education and HIV/Aids awareness programmes. Unusually for Kenya and the cultural norms of East Africa, we have more girls than boys attending our SoH's. This has largely been brought about through our sponsored Sanitary Pad programme which provides all adolescent girls who attend the SoH’s regularly, with free sanitary pads. Since ChallengeAid began in 2005 over 12,000 pupils have benefitted from the SoH programme and we are currently catering for over 5,000 children each night, at weekends and during school holidays. We currently operate 49 SoHs in Nairobi, Mombassa, Nyeri, the Aberdares, Bisil, Kajiado and Arusha in Tanzania and an extra 4 virtual learning centres.

3-5

We have in place quite an extensive extra-curricular programme-the pupils have opportunities in music and drama, chess, art and debating. In addition, at weekends there are sports teams and coaching opportunities with cricket, football, rugby and volleyball. Over 60 of our Supervisors have been trained to basic National Standard in these sports. The extra-curricular programme has been difficult to maintain during the pandemic, though activities have still continued within the communities but inter-community competition and practice has been curtailed due to National restrictions.

Adult literacy Programme

This project is in Kajiado County - serving indigenous Masai households in 6 locations. We currently have over 600 learners enrolled in 6 centres set up by the project and about 85% of the participants are women. Recently the learners undertook a government exam in literacy-all passed.

The Project also promotes livelihood enhancement among women. 4 savings and loans groups have been formed and trained to managing a simple documentation system. The women are making craft and will be selling these outside their villages with support from the project.

600 women/mothers have received training in hygiene, nutrition and childcare - the training is carried out by the Ministry of Public Health and targets women who attend adult literacy classes.

This is now a 3 year project being implemented by ChallengeAid Africa with financial support from ERKO an NGO from Slovakia, which has now been extended.

Challenges & Events

Going forward ChallengeAid aims to increase the number of challenges organised in the UK and also to increase the number of adults raising money through a wider variety of challenges. Covid restrictions have made challenges difficult but we will be rebuilding in 2023 with Celtic Challenge Cycle, the Welsh 3 Peaks, The Taff Trail Hike and the 100 Mile Challenge. Our events have continued successfully and have been a substantial source of income, with Le Gavroche lunch, Cardiff dinner and our annual golf day at Burhill.

ChallengeAid Africa

Three years ago, ChallengeAid Africa was set up as a company and foundation in its own right, which means that we no longer need to rely on partners in Kenya running the SoHs for us. This has had a huge effect, increasing our efficiency with our own dedicated co-ordinator operating out of Nairobi. This has had positive implications on ChallengeAid’s sustainability in the future, as we can now co-ordinate with all the previous partners and monitor their efficiency. Another exciting development is a new relationship with the Federation of Slum Dwellers, which will enable us to identify suitable buildings in slum areas for any future SoHs and also will be able to help us identify Community Leadership groups from our SoH Committee can be formed.

Highlights and Headlines takeaways for 2022

1. 49 Schools of Hope (SoHs) over 5000 students per day.

2. There are virtual learning classes into 4 SoH and 4 VLCs.

3. Science, Maths & English lessons are delivered by 6 expert volunteer teachers from the UK.

4. 423 form 4 students (almost double the number from 2021) sat the KCSE in 2022, 53 qualified for at place at university.

5. 826 students sat the KCPE (primary exams), 20% more than last year, with a total of 97.8% transitioning to secondary school. The norm in Kenya for transition would be 60% with a mere 40% in informal slum settlements.

6. Six centres with 600 young women in Kajiado (South Kenya, Masai County) are involved with women's empowerment and adult literacy sessions as most young girls, as young as 12, get married, have children and consequently leave education.

7. We are currently piloting a new Maths programme 'Education in a Suitcase' sponsored by the Icelandic Government with the crypto currency - Smiley Coin- "Earn as you learn".

8. 135 of last years leavers have already volunteered as supervisors to 'give back'. Self sustainability in action.

9. Most SoHs are participating in soap, disinfectant and shampoo making. They are then selling these products into their communities as a way of earning a sustainable income.

3-5

1. An MoU has been signed with The Federation of Slum Dwellers of Kenya, and more recently The Association of Informal Schools. There are over 100 informal schools in just two of Nairobi’s informal slums settlements as there are no Government schools in the slums.

2. We are still in the process of creating a library of freely accessible online lessons in collaboration with the University of Wales, Trinity St David’s and their PGCE students.

3. The average cost of educating a ChallengeAid pupil in our SoHs is less than 3p per day, or less than 20p per week, or £10 a year.

4. 2500 girls receive complementary sanitary pads every month.

5. There are over 200 boys currently participating in Boys Club. This club focuses on keeping boys in education, leadership, taking responsibility and longer-term decision making.

6. There are currently 900 girls participating in ‘Girls Can Clubs’ which meet to discuss topics such as womens empowerment, career and lifestyle choices, womens health and education.

7. We have formed a number of sports teams for both boys and girls in secondary and primary, in rugby, cricket, football, volleyball and more recently, netball and handball.

8. Life skills sessions are held in each of our SoHs, normally twice a month.

9. Debating and art classes are held in some of the SoHs. Chess has become incredibly popluar, with over 500 young people participating and a chess academy has been formed for SoH students to access national and international tournaments.

10. Approximately 40% of girls living in the slum and under the age of 17 are sexually active. Almost 50% of those girls drop out of school through unintended and unwanted pregnancies. Our average dropout rate for SoH girls is just 1.4%.

11. Of the 25 students who started our mentoring programme in 2019, all have transitioned to University. Many of the mentors are former students from our SoHs who are now either in University or have graduated and are now on career pathways. The mentorship programme is now being extended to include university-leavers.

12. Inset lessons in maths, physics, chemisty, biology and English are being held with teachers from informal schools in Nairobi and Kisumu. The pilot scheme started with 60 teachers, we will be raising the number to 120 in 2023.

Directors

The directors of the company who served during the year are as follows.

M. Ryan (Chair)

R.J. Bywater J. Cox M Ellis I. M. Hunt V. Jones-Mathias G.E.K Thomas

The above report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

Approved by the Board of Directors on and signed on its behalf by:

Martyn Ryan

Director

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Chartered Accountants' Report to the Board of Directors on the unaudited financial statements of ChallengeAid

In accordance with our engagement letter and in order to assist you to fulfil your duties under the Companies Act 2006, we have compiled the financial statements of the company which comprise the Profit and Loss Account, the Balance Sheet and the related notes from the accounting records and information and explanations you have given to us.

This report is made to the Company's Board of Directors, as a body, in accordance with the terms of our engagement. Our work has been undertaken so that we might compile the financial statements that we have been engaged to compile, report to the Company's Board of Directors that we have done so, and state those matters that we have agreed to state to them in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's Board of Directors, as a body, for our work or for this report.

We have carried out this engagement in accordance with technical guidance issued by the Institute of Chartered Accountants in England and Wales and have complied with the ethical guidance laid down by the Institute relating to members undertaking the compilation of financial statements.

You have acknowledged on the balance sheet for the year ended 31 March 2022 your duty to ensure that the company has kept proper accounting records and to prepare financial statements that give a true and fair view under the Companies Act 2006. You consider that the company is exempt from the statutory requirement for an audit for the year.

We have not been instructed to carry out an audit of the financial statements. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the financial statements.

Warren Clare Date: Chartered Accountants

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ChallengeAid

STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022

INCOME AND EXPENDITURE Note Incoming resources Donations 2 Gift aid repayments/HMRC refunds Other income Interest receivable Total incoming resources Resources expended Fundraising trading costs 3 Charitable expenditure 4 Management and administration of the charity 5 Total resources expended Net incoming/(outgoing) resources for the year Fund balances brought forward Fund balances carried forward at 31 March 2022	2022 £ 96,594 (84) 8,237 3 104,750 20,798 41,617 20,884 83,299 21,451 180 21,631	2021 £ 109,403 (588) 240 7 109,061 - 85,548 23,805 109,353 (292) 472 180

The notes on pages 9-10 form part of these accounts.

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ChallengeAid- REGISTERED NUMBER 5318179

BALANCE SHEET

31 March 2022

Current assets Note Cash at bank and in hand Creditors Amounts falling due within one year 6 Net assets Capital and reserves General fund	2022 £ 27,631 27,631 (6,000) £21,631 £21,631	2021 £ 6,180 6,180 (6,000) £180 £180

For the financial year ended 31 March 2022, the company was entitled to exemption from audit under section 477 Companies Act 2006. No notice has been deposited under section 476. The directors acknowledge their responsibilities for ensuring that the company keeps accounting records which comply with section 386 of the Act and for preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the year and of its profit or loss for the financial year in accordance with the requirements of section 396 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company.

These financial statements have been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

The notes on pages 9-10 form part of these accounts.

Approved by the Board of Directors and signed on its behalf by

M. Ryan

Director

Date

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ChallengeAid NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies

Basis of accounting

The accounts have been prepared in accordance with applicable standards, the Statement of Recommended Practice - Accounting and Reporting by Charites, and under the historical cost convention.

Incoming resources and outgoing expenditure are accounted for on an accruals basis.

		2022	2021
		£	£
2	Donations received
	School challenges Adult challenges	1,000 -	2,454 -
	Fund raising events Private Donations Grants	1,000 41,154 49,796 4,644	2,454 400 59,626 46,923
		96,594	109,403
3	Fundraising trading costs Fundraising events 20,798 - Other - - Income from schools represents 50% of funds actually raised for the schools. The balance of funds raised is retained directly by the schools.
		20,798	-
4	Direct charitable expenditure St Prisca's School, Nairobi Challenge & exercise activity ChallengeAid Africa Direct salary costs Direct expenses	- - 35,000 6,578 39	- - 73,125 11,524 900
		41,617	85,548

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ChallengeAid

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2022

		2022	2021
		£	£
5	Management and administration of the charity
	Staff salaries	11,173	18,379
	Public relations	-	-
	Fundraising & Bidding consultancy	-	-
	Promotional material	132	20
	Legal and professional fees	2,472	216
	Website maintenance	344	422
	Premises costs	1,657	2,564
	Insurance costs	1,317	989
	Office supplies	3,281	1,189
	Bank charges	508	27
	Miscellaneous	-	-
		20,884	23,805
	Costs incurred in the management and administration of the charity are covered by
	funds raised by private donors.
6	Creditors: amounts falling due within one year
	Loans	6,000 -	6,000 -
		6,000	6,000

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