||||Page|
|---|---|---|---|
|Chair's statement||||
|Trustees'<br>Report|||2 to 11|
|Independent<br>Examiner's|Report||12|
|Statement<br>of Financial|Activities|||
|Balance Sheet|||14to 15|
|Notes to the Financial Statements|||16to 25|
|Detailed Statement<br>of Financial||Activities|26to 27|





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Challenge Wale$
Trustees, Report
for the Year Ended 31st January 2023
Sail training activities lcontinuedl
Challenge Wales. activities often form part of an accredited learning offering participants Agored Cymru sccredilalion
or RYA2 sailing qu81ifications supporting literacy, numeracy, STEM and ocean literacy learning. We also provide
activities that form part of young peoples, participation in the Duke of Edinburgh's Award scheme as well as the John
Muir Award4
We seek lo ensure that we work with and offer services lo as many young people as we can from a variety of diverse
backgrounds. Working closeSy with local and national youth organisalions, Local Authorities and third sector we have
worked with groups of young people including..
Current and former looked after children
Rurslly isolated young people
Young Carers
Young people with low skillslqualificalions and literacy levels
Those who are not in Employment, Education or Training INEET'S)
Black and minority ethnic young people, including Travellers
Young people who are homeless or al risk of homelessness
Young people from economically deprived households
Additional learning needs I Searning disabilities {including SEN school gTOUPS}
High educational achievers
Young people with Mental Health Issues
LGBTQ groups
Those looking lo improve their prospects in a marine career
The work that Challenge Wales does continues to be aligned with a number of initiatives, policies and plans al local,
national and UK government level. Most prominent al national level is the Welsh Government's Well-being of Future
Generations Act 5{20151 with its seven well-being goals (for example that of creating a healthier and more equal Wales)
as well some of the foundations of those goals in particular reducing inequality.
Our activities are also relevant lo the Youth Engagement and Progressions Framewor￿, or more recently, Ihe Youth
Work Strategy for Wales7 which defines youth work as work which "offers young people opportunities for learning that
are educative. expressive, participalive, inclusive and empowering. Sail Training on our vessels certainly does that.
We continue lo monitor the impact of our youth voyages through an 'Oulcomes Wheel, which measures the journey a
young person goes on, whether it is a day or longer. The majority of young people taking part in Challenge Wales
voyages reported improvements. Of those that completed Ihe Outcomes Wheel 630/0 evidenced improvements in mental
health and physical wellbeing, 730/0 showed improved teamwork abilities, 680/0 saw improved confidence and self-esleem
and 63010 said they had improved social networks Ilhrough msking friends on the voyage). When these results are
8nalysed a little bit deeper, those young people who joined us for Surnmer of Fun activities Iwhich was aimed primarily
at disadvantaged young people) saw even higher levels of improvements lup lo 85010) after their sail training activities.
We also saw more young people working towards Agor8d Cymru accredilalion.
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||||||||2023|2022|
|---|---|---|---|---|---|---|---|---|
||||||Unrestricted|Restricted|Total funds|Total funds|
||||||funds|funds|||
|||||Notes|E|F|||
|Income and endowments|||from||||||
|Donations<br>and legacies|||||31,170||31,170|7,658|
|Charitable<br>activities||||4|||||
|Core funding|||||94,505|47,690|142,195|126,189|
|Investment<br>income||||||||9|
|Other income||||||||206|
|HIVIRC Corona Virus||Job Retention|||||||
|Scheme||||||||13,256|
|Total|||||125,675|47,690|173,365|147,318|
|Expenditure<br>on|||||||||
|Raising funds|||||150||150|140|
|Charitable<br>activities|||||||||
|Core funding|||||240,931|75,876|316,807|134,648|
|Total|||||241,081|75,876|316,957|134,788|
|Net (expenditure)/income|||||(115,406)|(28,186)|(143,592)|12,530|
|Other recognised|gains||||||||
|Gain on revaluation||offixed assets|||||||
||||||(115,406)|(28186)|(143,592)|12,530|
|Net movement<br>in|funds||||||||
|Reconciliation<br>of|funds||||||||
|Total funds brought||forward|||556,145|28,186|584,331|571,801|
|Transfer between|funds||||||||
|Total funds carried||forward|||440,739||440,739|584,331|





## 

|||||At 31|stJanuary 2023||||
|---|---|---|---|---|---|---|---|---|
||||||||2023|2022|
||||||Unrestricted|Restricted|Total funds|Total funds|
||||||funds|funds|||
|||||Notes|Z|F|Z|F|
|Fixed assets|||||||||
|Tangible assets||||10|442,040||442,040|559,515|
|Investments||||11|100||100|100|
||||||442,140||442,140|559,615|
|Current assets|||||||||
|Stock|||||400||400|400|
|Debtors||||12|28,184||28,184|44,361|
|Cash at bank|and|in hand|||106,028||106,028|134,219|
||||||134,612||134,612|179,980|
|Creditors|||||||||
|Amounts<br>falling due within|||one year|13|(22,766)||(22,766)|(30,157)|
|Net current|assets||||111,846||111,846|148,823|
|Total assets|less|current|liabilities||553,986||553,986|708,438|
|Creditors|||||||||
|Amounts<br>falling due after|||more than one||||||
|year||||14|(113,247)||(113,247)|(124,107))|
|Net assets|||||440,739||440,739|584,331|
|Funds||||17|||||
|Unrestricted|funds||||||440,739|556,145|
|Restricted funds||||||||28,186|
|Total funds|||||||440,739|584,331|





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## 

||Income from charitable||activ|ities||||||
|---|---|---|---|---|---|---|---|---|---|
|||||||||2023|2022|
|||||Activity||||E|E|
||Membership<br>subscriptions|||Core funding||||7,345|8,347|
||Sail days and training courses|||Core funding||||480|505|
||Sail Training<br>Activities|||Core funding||||38,482|19,852|
||Reardon<br>Smith Nautical|Trust||Core funding||||45,750|10,000|
||Reardon<br>Smith Nautical|Trust||Centenary|grant||||20,000|
||Reardon<br>Smith Nautical|Trust||Training<br>Centre Capital Grant||||13,888||
||Garfield Weston|||Core funding||||20,000|20,000|
||Wales Council for Voluntary|||Core, capital and COVID|||funding||14,063|
||Action|||||||||
||ASTO|||Core and|COVID funding|||4,730|5,750|
||James Myatt|||Bursaries||||1,275||
||Royal Thames Yacht Club|||Bursaries||||1,173||
||CWYVS|||Summer|of Fun Revenue||Funding|6,190||
||Merthyr<br>County Borough|||Winter of|Wellbeing|Revenue||2,882||
||Council|||Funding||||||
||National<br>Lottery Community|||Core funding|||||9,307|
||Fund|||||||||
||Welsh Government<br>-ERF|||COVID funding|||||2,500|
||Welsh Government<br>—Outdoor|||COVID funding|||||6,250|
||activities|||||||||
||Joseph Levy Foundation|||Core funding|||||3,000|
||Crystal Lodge|||Core funding|||||1,000|
||Sports Council for Wales|||Capital funding|||||1,263|
||Sail Training<br>International|||Core funding|||||2,815|
||Vale of Glamorgan<br>Council|||COVID funding||||||
||Co-Operative|||Core Funding|||||1,537|
|||||||||142,195|126,189|
|5.|Support costs|||||||||
|||||||||Governance||
||||||||Other<br>E|costs<br>E|Totals<br>f|
||Core funding||||||13,471|1,480|14,951|
||Support costs, included|in the||above, are|as follows|||||
|||||||||2023|2022|
|||||||||E|E|
||Property<br>rent and rates|||||||11,838|9,723|
||Light, heat and water|||||||192|633|
||Telephone|||||||398|287|
||Accountancy<br>and legal fees|||||||1,480|1,495|
||Office consumables|||||||737|628|
||Marketing||||||||948|
||Office repairs and small|equipment||||||306|708|
|||||||||14,951|14,422|
|6.|Net income|||||||||
||Net income is stated after||charging:|||||||
|||||||||2023|2022|
|||||||||E|F|
||Depreciation<br>and impairment|||charge - owned assets||||118,648|5,776|
||Hire of life rafts|||||||1,907|1,696|
||Operating<br>leases|||||||7,800|7,800|
||Loan interest|||||||7,079|7,406|
||Independent<br>Examiner's||fee|||||1,480|1,345|





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|Analysis<br>of staff costs, trustee<br>remuneration<br><br>personnel|and expenses<br>and the costs of key m|anagement|
|---|---|---|
||2023|2022|
||6|6|
|Salaries and wages|65,547|53,757|
|Social security costs|2,213|4,341|
|Pension costs|1,301|1,094|
||69,061|59,192|



## 

|||||2023|2022|
|---|---|---|---|---|---|
|Business Development||and Administrative|support|2.0|2.0|
|Ship's skippers|and mates|||0.7||
|||||2.7|2.0|





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## 

|||||Unrestricted|Restricted|Total funds|
|---|---|---|---|---|---|---|
|||||funds|funds||
|||||E|F||
|Income and|endowments|from|||||
|Donations<br>and legacies||||7,658||7,658|
|Charitable<br>activities|||||||
|Core funding||||49,991|76,198|126,189|
|Other trading|activities|||215||215|
|HMRC Coronavirus<br>Job Retention||||13,256||13,256|
|Total||||71,120|76,198|147,318|
|Expenditure|on||||||
|Raising funds||||140||140|
|Charitable<br>activities|||||||
|Core funding||||44,114|90,534|134,648|
|Total||||44,254|90,534|134,788|
|Net income|and Net movement||in funds|26,886|(14,336)|12,530|
|Reconciliation<br>offunds|||||||
|Total funds|brought forward||||||
|||||529,729|42,522|571,801|
|Transfer between funds|||||||
|Total funds|carried forward|||556,145|28,186|584,331|





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## 

|Tangible fixed assets|||||
|---|---|---|---|---|
|||Adventure|||
||Challenge|Wales|Other||
||Wales Yacht|Yacht|equipment|Total|
||E|||6|
|Cost or valuation|||||
|At 1 February 2022|478,843|171,733|4,250|654,826|
|Additions<br>At 31 January 2023|430|~7|742<br>4992|1,172|
|Depreciation|||||
|At 1 February 2022|78,996|14,765|1,550|95,311|
|Charge for the year|981||700|1,681|
|Impairment<br>charge<br>At 31 January 2023|~77|116,966||116,966<br>~2|
|Net Book Value<br>At 31 January 2023|~2|||~442<br>4|
|At 31 January 2022|||||



## 

|Fixed asset investments|||
|---|---|---|
||Shares|in|
||group||
||undertakings||
|||R|
|Market value|||
|At 1st February 2022 and 31stJanuary 2023||100|
|Net book value|||
|At 1st February 2022 and 31stJanuary 2023||100|





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## 

|||||||2023|2022|
|---|---|---|---|---|---|---|---|
||||||||E|
||Turnover|||||19,170|10,809|
||Total expenditure<br>Net profit for year|||||~1389<br>~1|~762<br>~17|
||Total assets|||||8,332|13,565|
||Total liabilities|||||~451|~3418|
||Shareholders'||funds|||7,881|10,147|
|12.|Debtors: amounts|||falling due within one year||||
|||||||2023|2022|
||||||||E|
||Trade debtors|||||10,668|31,421|
||VAT|||||3,683|836|
||Amounts<br>owed||by group undertakings|||461||
||Prepayments|and accrued income||||13,372|12,104|
|||||||28,184|44,361|
|13.|Creditors: amounts||||falling due within one year|||
|||||||2023|2022|
||Otherloans|||||10,692|17,711|
||Trade creditors|||||3,052|1,929|
||Amounts<br>owed||to group undertakings|||100||
||Social security||and|other taxes||5,096|3,860|
||Accruals and|deferred|||income|3,826|6,657|
|||||||22,766|30,157|



## 

|Credi|tors:|amounts<br>falling due after more than o|ne year||
|---|---|---|---|---|
||||2023|2022|
|Other|loans|- 1-2years|17,417|18,150|
|Other|loans|- 2-5 years|33,343|35,925|
|Other|loans|—over 5years|62,487|70,032|
||||113,247|124,107|





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## 

|The following|operating<br>lease payments<br>|are committed<br>to be paid:|||
|---|---|---|---|---|
||||2023|2022|
|Expiring:|||||
|Within<br>1 year|||10,800|10,800|
|Within 2 to 5|years||||
|Secured debts|||||
|The following|secured debts are included|within creditors:|||
||||2023|2022|
||||F|6|
|Otherloans|||93,650|124,107|



## 

|||||Net|Transfers||
|---|---|---|---|---|---|---|
|||||movement|between||
||||At 1.2.22|in funds|funds|At 31.1.23|
|Unrestricted||funds|||||
|General|fund||269,184|(115,406)||153,778|
|Revaluation||reserve|286,961|||286,961|
||||556,145|(115,406)||440,739|
|Restricted funds|||||||
|National|Lottery Awards for All||8,186|(8,186)|||
|Reardon|Smith Nautical Trust||20,000|~20,000)|||
||||28,186|(28,186)|||
|TOTAL|FUNDS||584,331|(143,592)||440,739|





## 

## 

|Net mov|ement<br>in funds,<br>includ|ed<br>in the|above are as follo|ws:||
|---|---|---|---|---|---|
||||Incoming|Resources|Movement|
||||resources|expended|in funds|
||||6|E||
|Unrestricted<br>funds||||||
|General|fund||94505|~240 931|146426|
|Restricted funds||||||
|ASTO|||4,730|(4,730)||
|Garfield|Weston||20,000|(20,000)||
|Merthyr|County Borough Council||2,882|(2,882)||
|The National<br>Lottery Awards||for All||(8,186)|(8,186)|
|CWVYS|||6,190|(6,190)||
|Reardon|Smith Nautical Trust||13,888|(13,888)||
|Reardon|Smith Nautical Trust|||~20000|~20 000|
||||47690|75876|28 186|
|TOTAL|FUNDS||~14|(~||



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## 

||||for th|e Y|ea|r Ended 31stJanuary|2023||
|---|---|---|---|---|---|---|---|---|
||||||||2023|2022|
|Income and endowments|||||||||
|Donations<br>and legacies|||||||||
|Third party donations<br>Gift aid|||||||7,564<br>2,060|5,227<br>2,380|
|Challenge<br>Wales (Sales) Limited|||||||20,047|51|
|Private Donations|||||||1,499||
||||||||31,170|7,658|
|Investment<br>income|||||||||
|Deposit account interest|||||||||
|Charitable<br>activities|||||||||
|Membership<br>subscriptions|||||||7,345|8,347|
|Crew fees|||||||480|505|
|Sail Training<br>Activities|||||||38,482|19,852|
|Reardon<br>Smith Nautical Trust —sail training|||||bursary||45,750|10,000|
|Reardon<br>Smith Nautical|Trust —general|||grant|||13,888|20,000|
|Garfield Weston|||||||20,000|20,000|
|Wales Council for Voluntary||Action||||||14,063|
|Welsh Government<br>ERF|funding|||||||2,500|
|Welsh Government<br>Outdoor||Activities grant||||||6,250|
|ASTO|||||||4,730|5,750|
|The National<br>Lottery Community|||Fund-Awards|||for All||9,307|
|James Myatt|||||||1,275||
|Millenium<br>Stadium<br>Charitable||Trust|||||||
|Sail Training<br>International||||||||2,815|
|Co-Operative||||||||1,537|
|Royal Thames Yacht Club|||||||1,173||
|Crystal Lodge||||||||1,000|
|Sports Council for Wales||||||||1,263|
|Joseph Levy Foundation||||||||3,000|
|CWYVS|||||||6,190||
|Merthyr<br>County Borough|Council||||||2,882||
||||||||142,195|126,189|
|Other income|||||||||
|Sundry<br>income||||||||206|
|||||||||206|
|HMRC Corona Virus Job Retention Scheme||||||||13,256|
|Total incoming<br>resources|||||||173,365|147,318|





## 

||||2023|2022|
|---|---|---|---|---|
|||||F|
|Expenditure|||||
|Charitable<br>activities|||||
|Wages|||86,635|59,192|
|Skipper and mates' fees|||22,850|8,700|
|Insurance|||7,362|7,341|
|Postage and stationery|||50|19|
|Coding of Challenge<br>Wales and|Adventure|Wales|13,631||
|Sundries|||1,666|674|
|Offshore costs|||20,100|18,394|
|Boat repairs and maintenance|||6,112|7,256|
|Onshore storage costs|||224|272|
|Marine Charts and publications|||592|337|
|Subscriptions<br>and donations|||1,458|1,561|
|Travel and subsistence|||6,271|387|
|Computer<br>and software|||2,536|2,429|
|Depreciation<br>ofVessels and other equipment|||1,682|5,776|
|Impairment<br>charge on Adventure|Wales||116,966||
|Bank and other loan interest|||7,079|7,406|
|Staff and volunteer<br>training|||793||
|Course accreditation,<br>monitoring|and evaluation||83|300|
||||296,090|120,044|
|Support costs|||||
|Other|||||
|Property<br>rent and rates|||11,838|9,723|
|Light, heat and water|||192|633|
|Telephone|||398|287|
|Office consumables|||737|628|
|Marketing||||948|
|Office repairs and maintenance|||306|708|
|Bank charges|||211|182|
||||13,682|13,109|
|Governance costs|||||
|Accountancy<br>and legal fees|||1,480|1,495|
|Recruitment fees|||5,555||
|Fund raising costs|||150|140|
||||7,185|1,635|
|Total resources expended|||316957|134788|
|Net (expenditure)l<br>income|||||