Companies House School of Hard Knocks Annual Report and Financial Statements 31 March 2024 Company Limile(I by Guarantee Regislfalion Number 07743730 (England and Wale81 Charlly Re9istralion Numbe 1147009 (England and Wales) SC046118 IScollarKJ *AD8NGSY8* 0210812024 COMPANIES HOUSE A13 1171 Contents Reports Reference and administrative information Trustees. report Independent auditorfs report 15 Flnan¢lal stat•m•nt8 Statement of financial activrties 20 Balance sheet 21 Statement of cash flows 22 Principal accounting policies 23 Notes to the financial statements 27 School of Hard Knocks Reference and administrative infomiation Trustees Mr James Cameron Ms Victoria Griffin Mr Mike Francis Ms Yasmine Hafiz Mr Mikel Mellick Mr Neel Sood Ms Kirstin McNutt (appointed 4 March 2024) Mr Nicholas Dent (appointed 4 March 2024) Ms Deborah Gr￿In (resigned 30 Sept 2023) Mr Jonathan Teckman (resigned 30 Sept 2023) Robert McKillop (resigned 30 Sept 2023) Chlef Executlv• Mr Ken Cow8n Reglstered office Ty Cefn Old Building Unrt 4, Rectory Road Cardiff Wales CF5 1QL Company Registratlon Number 07743730 Charlty Registration Numbers 1147009 (England and Wales) SC046118 (Scotland) Audltor Buzzacott LLP 130 Wood Street London EC2V 6DL Sollcltors Milbank, Tweed, Hadley & Mccloy LLP 10 Gresham Street London EC2V 7JD School of Hard Knocks 2 Trustees, report 31 March 2024 The trustees. who are the directors for th8 purposes of company law, present their statutory report togetherwrth the financial statements of School of Hard Knocks for the year to 31 March 2024. The report has been prepared in accordance with Part 8 of the Charities Act 2011 and constitutes a directors, report for the purposes of the Companies Act 2006. The financial statements have been prepared in accordance with the accounting policies set out on pages 22 to 25 of the attached financial statements and comply with the charrtable company's memorandum of association, the Charities Act 2011, the Charities and Trustee Investment {Scotland) Act 2005 and the Charities Accounts (Seolland) Regulations 2006 and Accountin9 and Reporting by Charities.. Statement of Recommended Practice applicable to charities Preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102). Our Aims and objectives PU￿OseS and Alms The principal objects ol the charty are set out in the charity's Memorandum of Association.. To assist persons who may have need of support by virtue of poor health, disability, financial hardship or other disadvantage, in particular but not exclusively by the provision of facilities and programmes of physical. educational and other activities as a means of: a) advancing in life and by developing skills, capacities and capabilities to enable parsons to participate in society as independent, mature and responsible individuals; b) advancing education. c) relieving unemployment- d) 8dvancing physical, mental and emotional health and wellbeing. Ensurlng our work delivers our aims We review our aims, objectives and activities each year. This review looks at what we achieved and the outcomes of our work in the previous 12 months. We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aim and objectives and in planning our future activities. Achievements and Performance To achieve these aims, we have, for over 10 years delivered two streams of work". 1) Courses for unemployed adults in which we address wellbeing as well as employability and 2) A three-year school programme for pupils at risk of exclusion and who have SEL (Social, Emotional Learning) needs. We deliver services via three regional teams in England (across Greater London and Herts). Wales (across Cardiff, Newport SE valleys areas) and Scotland (across Glasgow, Edinburgh and Fife). School of Hard Knocks 4 Trustees, report 31 March 2024 Achievements and Performance (continued) Strategic Change In August '23 we were approached by Impetus, a Private Equty backed organisation that identifies and supports high potential charities both financially and in temis of ongoing and in- depth strategic support. After three months of due diligence, we were brought into their portfolio. We believe this will profoundly enhance the services we deliver. The first phase of this partnership involves a series of'Delivering Impact, workshops that are carefully designed to help the charity become clearer in its mission and thus allocate resources to achieve the best possible evidence based and demonstrable outcomes. A fundamental element of this process is to clearly define our 'target populations, . that is, to ask the question.. 'What are the profiles of th8 people who our programmes have th8 g￿alest impact upon?, As a consequence, one of the most signfficanl decisions made In these workshops was to begin the phasing out of the adult element of our work. There are four core reasons for this.. Since the Covid-19 Pandemic, we have experienced a massive increase in demand for our work in schools and conversely a reduced demand for our work amongst adults. The vast majority of our staff work in OUT schools piogrammes. The ROI (that is, outcomes againstcosls ofinteNention per participant) is much better for our schools participants than it has been for our adult participants. We found in recent years that adults were coming to us with a much wider range of needs which we did not have the direct expertise lo address. England Overthe course ofthe year, we have continued to establish our schools programmes, working across 12 different schools, most of which we have worked with for several years, and who re-sign each year. In September 2023, Lambeth Council doubled their investment in us. The majority of what we consider to be 'gold standard, processes and delivery are worked out in these schools, refined and then implemented across the charty. Aside from the week to week delivery, some highlights of the year included taking over 200 boys on our programmes to Harrow School in December for a tournament in which Harrow students participated. We also ran a hvo day tournament in the spring of '24 at Eton Manor RFC in which over 350 of our boys and girls groups participated. Our adults programmes in London came to an end in July, 2023. School of Hard Knocks 5 Trustees, report 31 March 2024 Achievements and Perfomiance (continued) Scotland In 23124 our Scotland Schools programme delivered in 8 schools- four in Edinburgh and four in Glasgow. The total number of young people we have worked with this year is 234. 28 /0 of whom were girls. We are pleased with the steady increase in female participation and intend to continue to work towards malelfemale parity. Most of the young people we worked with were betrween S1-S3 with one group comprising of S5 students where we worked on employabilrty and a hybrid programme belween whatwe've done in schools and in our adults, programme. Response was positive and three have now gone on to have jobs as a result. As for our adult work in Scotland. we successfully delivered the first four of six courses in Glasgow, funded by the National Lottery, working with unemployed adults with a focus on Roma community members and refugeelasylum seekers, breaking down barriers between them and local 'settled' population. We will fulfil our obligations to this fund over the course of the 24125 financial year and not seek further funding, thus phasing out the adult work in Scotland. Wales The summer of 2023 was a very difficult period for our Welsh schools team. The increase in energy prices and a stagnated economy meant that several schools we work in were unable to make any contribution. which is a key element of our funding model. This resulted in the scaling down of delivery and the subsequent reduction of staff, going from 3 10 2 delivery teams. Despite the huge potential ofthe work in Wales, the team remains in a difficult position with an increased fundraising burden on the charity as a whole. Despite thls frustration we have worked this 23124 academic year with many hundreds of young people every week, with demonstrably positive results. Our Adult programmes in Wales continued throughout 23124 funded by Comic Relief and in partnership with our research partners, Cardiff Metropolitan University. We were successful in securing follow-on funding from Comic Relief to deliver an additional 4 adull courses from April 2023, the last course of which is currently being delivered, after which our adult work in Wales will come to an end. Fundraising By the end of March 23, our fundraising team consisted of just one part time colleague who works to develop corporate Partnerships. Enabled by a grant from the Fidelity Foundation, we were able to invest. in April 23 two additional part time colleagues joined our team., one, who works on Trusts and Grants applications and anotherwho co-ordinates our events. I￿lIe still an under-resourced fundraising team, rt was nevertheless a tangible improvement. The fundraising environment across the whole sector has been depressed as a consequence of subdued economic gr0￿h in the UK. We felt the advefse impact ofthis in the area oftrusts and grants income, which, despite a much-improved pipeline and increased (in tems of quality and quantty) level of activity- ybelded the least income for several years. Being School of Hard Knocks 6 Trustees, report 31 March 2024 Achievements and Performance (continued) brought on to the Impetus portfolio in December 2023 was and remains a major boost, with a £100k Per Anum grant agreed for as long as the partnership lasts (initially 2.5 yeaTS>. Nevertheless, with income from school contributions remaining static and income for adult services reducing, the challenge for the team to raise sufficient funds has remained high. A positive area ofgrowth has been through Corporate fundraising in which we have seen over £100k increase in income generated. In August 2023 we launched a corporate partner campaign called My Business" which enables businesses lo part fund our work in individual schools. We are encouraged by the start we have made and see real potential for this to grow. Our flagship annual fundraising event - 'The SOHK Long Lunch, raised £112k in February 24. which is our best single event to date. Ethlcal appmach to fundraislng SOHK is a values4riven charity that conducts its activities in line with the highest ethical standards. The charity uses a mixed funding economy to spread risk and ensure stabilrty. Currently, the main methods for accessing individual donors are fundraising events, personal referrals from ambassadors and social media campaigns targeted at friends and supporters of the charity This greatly reduces Ihe risk of SOHK inadvertently contacting members of the public, especially vulnerable people, in an unressonably intrusive or persistent manner. The charity has robust internal policies on data collection and handling, is fully GDPR compliant and has a robust, externally validated complaints procedure. The charity is prepared to refund any donation which is shown to have been gained through unreasonable fundraising, whether advertently or inadvertently. During the year the charity received no complaints in respect of Its fundraising activities. Looklng ahead The £100k investment from Impetus has enabled us to recruit and appoint a new Director of Fundraising. This is the first time that we have had a team with a highly experienced leader bringing direction and Organisation. In Q3 of the financial year 24125, we will enter into the third phase of partnership wrth Impetus which is 8 12 week block, with pro bono support from one of the major management consultancies, to develop a major three year organisational strategy. Off the back of this we will be able to more accurately understand the fundraising targets and develop a Ihiee year Fundraising Strategy. We recently secured a charty partnership with Investec Bank worth £50k per year for three years as part of their sponsorship of the (European) Rugby Champions Cup. How ouractivities deliverpublic benefit The SOHK mission is to support young people (starting in early secondary) who are not thriving in education and who are presenting as disruptive and disengaged or with social and emotional (SEL) learning needs. We prioritise those from economically disadvantaged backgrounds. School of Hard Knocks 7 Trustees, report 31 March 2024 Achievements and performance (continued) Our aim is to improve participant's engagement with school and to improve their SEL skills (including confidence, self-awareness, resilience and emotional regulation). We do this through a long term blended programme of rugby coaching, group work and 1-1 mentoring delivered by a consistent team of trusted expert practrtioners. Education is a key indicator of lrfe chances in adulthood. Children who are excluded from school are stalistically more likely to offend, achieve poor educational outcomes, become unemployed and suffer from poorer mental and physical health. Relieving and preventing these issues delivers a clear public benefit. Persistent absenteeism remain a major concern in the UK, post Pandemic- There is strong evidence to suggest that regularschool attendance is a key mechanism to support children and young people's educational, economic and social outcomes and that reduced attendance leads to worse educational attainment. Addressing this is something that we have recently committed to. Conversely, when students display h￿h levels of behavioural, emotional, and cognitive engagement, they are more likely lo excel academically, form a slrong8r sense of connection with their school, and have a more positive sense of social-emotional well-being - and as a consequence have better life chances in adulthood. Flnanclal revlew SOHK'S Revenue decreased by £261k (150A} compared to the prior year, while expenditure fell by £293k {16°h). The drop in Revenue was largely attributable10 the reduction in the provision of Adult services (<£165k) combined with lower event income (<£119k), which was boosted in the prior year, by the 10-year anniversary lunch held November 2022. Overall Schools income remained in line with the prior year, despite a reduclion in schools served in Wales, due to additional funding support obtained elsewhere. Nonetheless, delivery costs reduced in line with activity, falling £185k across Adult services and £74k in Welsh Schools. Efficiencies were realised in support costs, which included the closure of administrative offices, which were being under-used following the COVID pandemic and the successfvl transition to home working. Principal funding sources Grant income accounted for 370/0 of SOHK'S income. The principal sources of Ihis were Comic Relief, the National Lottery, KPE4 Charitable Trust, the Quilter Foundation, Charles Hayward Foundation, Fidelity Foundation. Millenium Stadium Trust, Wasps Legends. William Wates, and the Wooden Spoon Charity. Aside from grant income, SOHK received 180/0 of our total turnover in contracted income, with contributions from schools and the local authorities. and 190h of our total turnover in corporate income, with contributions from Baillie Grfford, ISG Construction, Linc Cymru Housing Association and SEWSCAP. School of Hard Knocks 8 Trustees, report 31 March 2024 Financial review (continued) Reserves policy The Iruslees have considered the charity's need for free resenles. These are required to cover an unexpected loss of income, cash flow shortage, or unforeseen operational cost. For some years now, the charty has set a reserve target which has proved extremely difficult to fund practically. In recognition of this, the charity established a risk-level reser￿eS policy that set a short-term and a medium-term reserves target. The short-tem reserves target Considers immediate unforeseen expenses, cashflow issues. and the charity's winding up costs and is set at £160,000. The charity's aim is to have this amount available as a minimum target in line with the determined short-term financial risks. We have assessed oui current financial position and level of expenditure on the short-term reserves target and have concluded the charity will aim to achbeve the short-term reserves tsrget by the end of the 2024125 financial year. The medium-term reserves target considers risks to multi-year funding. planned commrtments, key risks of the charty identrfied in the risk register, and is set at £330,000. This being an amount equal to three months, running costs and sufficientto cover the charity, most significant risks. Our reserves target is a constant goal that we seek to work towards by increasing our level of unrestricted funds. Very fèw funders are willing to fund core costs or unrestricted reserves, so most of our unrestricted income must come from fundraising and individual giving. To set benchmarks towards reaching our medium-term reserve target, our goal is to increase unrestricted funds by 50A each year. It is our goal to meet our short-lerm reserves targgt- currently £160,000, while still working towards our medium-term target. Flnanclal posltlon At the year end the balance sheet showed lolal funds of £97,385 (2023- £124,775). Of these £5,998 were restricted (2023 - £4,567). At the year-end our unrestricted free reserves balance was £91,38712023 £120,208), which whilst below target, is forecast to increase current year to align with the Reserves Policy {above}. Going concern Our case for support continues to increase with the challenges facing our beneficiaries. This means now more than ever SOHK is needed to offer valuable help lo support the young People we work with to allow them to fealise their potential. The Trustees and Senior Management remain highly aware of the lasting impact of the Coronavirus pandemic and the ongoing cost of living crisis on the economic landscape, and the financial impact on the charity. Nonetheless the Charity has demonstrated its ability to School of Hard Knocks 9 Trustees, report 31 March 2024 Financial review (continued) rapidly adapt to a changing environment, to end the financial year with a small deficit, representing 1.80/0 of turnover, and is confident of its capability to balance the books going fo￿ard. The Trustees and the Board's Finance Subcommrttee, supported by the Director of Finance, continue to monitor cashflow, meeting quarterly to review the financial position of the charity and each programme, the balance of restricted and unrestricted funds, the balance sheet, profit and loss. and budget variance for the year to date. On the basis of their assessment of the Charity's financial position, the Trustees continue to adopt the going concern basis in preparing the financial statements. Plans for Financial Year 2024-2025 The Trustees aspire not only to sustain current activity, but through the renewed strategic focus on "Delivering Impact. in Schools to grow activity, to increase the number of young people supported. It is recognised that long tenn sustainability will require short term investment, in human capital with the recent appointment of a Director of Fundraising to secure reliable funding streams, and in technological transformation. As active participants in the life of the Charity, the Trustees are commrtted to working with the Charity to secure this funding. SOHK will prioritise the continuous improvement of our schools programme, demonstrated through evidence based practice. This will require ongoing challenge of every aspect of the organisation, to learn and evolve so that we deliver the best outcomes for our participants. With the appointment of the Director of Fundraising the Charity aims to further develop its fundraisin9 Strategy, to. align with the current and future needs. This will likely include increasing our long-term partnerships and relationships with donors and corporate partners, along with fundraising events. The contribution from schools to the cost of the school programm8 is an integral part of our financial sustainability. It also ensures that the schools are invested and cooperale on the management and information sharing necessary to the programme. SOHK has a clear process for engaging schools, and we aim to work with each individual school nexl academic year to ensure continued delivery. As well as generating revenue, the trustees recognise the need to continue our cost control processes and the continuation of the Board's Finance Subcommittee. Ending the 2024-2025 financial year in a surplus is a critical aim for SOHK with streams of work which are not financially sustainable will be paused or scaled back. The charity aims to deliver a surplus of £80,000 in the 2024-2025 financial year and aims to ensure our level offree reseDies exceeds our short-term reserves target of £160,000. School of Hard Knocks 10 Trustees. report 31 March 2024 Structure, Governance and Management Goveming document The organisation is a charitable company limited by guarantee, incorporated on 17 August 2011. It is registered with the Charity Commission, charity number 1147009. The charity was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. The charity registered with OSCR, the Scottish Charity Regulator, on 9 November 201 S. charrty number SC046118. Recrultment and appolntment of truste•s The directors of the company are also charity trustees for the purposes of charity law and Members for the purposes of the Articles of Association. The management of the charity is the responsibility of the Trustees who are elected every three years, for three-year terms. under the terms of the Articles of Association. The charity is managed by the trustees via periodic Board meetings and the day-to-day operation of the Charity is delegated by the Trustees to Mr. Ken Cowen, the Chief Executive Officer. The Trustees review each year the skills and experience of the Board of Truste88 and determine the need to appoint further trustees. The Members of the company guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. Key management pernonnel The key management personnel ofthe charity in charge of directing, conlrolling, running, and operaling the charity on a day-to￿aY basis comprise the Trustees (who are not remunerated), the Chief Executive and his Leadership Team. Their remuneration is set annually by the Board, considering individual performance, the performance of the Charity as a whole, and Ihe financial outlook of the Charity. This process is informed by SOHK'S Performance & Development Reviews, which are conducled by line managers with all staff and by the Chair of Trustees for the CEO. Employee involvement and employment of the disabled Employees have been consulted on issues of concern to them by means of regular staff meetings and have been kept informed on specific matters directly by management. The charty has implemented a number of policies in relation to all aspects of personnel matters.. • Equal opportunities policy • Volunteers. policy • Health and safety policy In accordance with the charity's equal opportunities policy, the charity has established fair employment practices in recrurtment, selection, retention, and training of disabled staff. Full details of these policies are available from the charity's offices. School of Hard Knocks 11 Trustees, report 31 March 2024 Structure, Governance and Management (continued) Risk management The trustees conduct an annusl review of the major risks to which the charity is exposed. A risk register has been established and is updated annually. Where appropriate, systems or procedures have been eslablished lo mitigate the risks the charity faces. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and project5. Procedures are in place to ensure compliance with health and safety of staff, volunteers, and clients. SOHK'S risk register scores risks for their probability and severity, to give an unmitigated risk score. Mitigation is then put in place and the risk is reevaluated. The charity's risk register shows the biggest unmrtigated risks to the charity to be the following. The mitigation is also included.. Sporting activty l injuries - Every delivery team has a qualified first alder and first aid kit to hand, and all frontline work has its own standalone risk assessment. The charity holds specific public liability and employers, liability insurance for its activities, and coaches are required to hold £5m in public liability cover personally. All coaching involves warmups, clearly marked pitches which have been checked for obstructions and hazards and approved equipment. All activities are clearly explained, and no one is forced to participate. The charrty has clear Health and Safety Policy which is rigorously adhered to. Charity keeps participant disclaimers in perpetuity. • Loss of key staff (temporary or permanenl) The charity has a shared drive with non- confidential files, which can be accessed by all staff. The charity has a financial process document and living delivery manual. All line managers of departing staff are required to steward a handover process to successors. Staff who are made redundant are given paid extension to oversee handover of materials. The charity's reseprfes policy includes funds for temporary staff to cover sickness, maternity for key staff members. The charity has staff succession plan assessing roles criticality and impact of individuals. A comprehensive staff wellbeing policy is in place with ongoing refinement. We now retain a coun5elling service for staff, via our HR support. ReseNe's Policy - Our reserves policy is updated annually to account for the current financial position and costings, with a goal to consistently maintain our short-term reserve target. INhile our cashflow requires strict management, the Director of Finance forecasts any cashflow shortages and remedial actions needed to the CEO and Trustees. • Illegal activity by the charrty (intentional or unintentional). Th8 charity is advised by Milbank on a pro bono basis. Clear policies are in place for all areas of charitable activty and line managers ensure that these are adhered to. Failure to meet targets on delivery income- The charity realises given the current financial position and cost of living crisis, the charity must accept some risk within our fundraising landscape. A Director of Fundraising is now in place whowill lead and further build a team that will ensure sustainability and growth - that said, the Trustees along with the senior leadership are prepared to adapt delivery dependent on the funding secured. School of Hard Knocks 12 Trustees, report 31 March 2024 Trustees. Responsibilities Statement The Trustees (who are also directors of the charitable company for the purposes of company lawl are responsible for preparing the Trustees. report and the financial stalements in accordance wrth applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure. ofthe charitablecompany forthat period. In preparing thesefinancial statements, the Trustees are required to.. • select surtable accounting policies and then apply them consistently; obseprfe Ihe methods and principles in Accounting and Reporting by Charities.. Statement of Recommended Praclice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the Unrted Kingdom and Republic of Ireland (FRS 102). make judgements and accounting estimates that are reasonable and prudent., • state whether applicable United Kingdom Accounting Standards have been followed. subject to any material departures disclosed and èxplained in the financial statements., • prepare the financial statements on the going concem basis unless rt is inappropriate to presume that the charitable company will continue in operation., and • declare any conflicts of interest under s175 of the Companies Act 2006. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial posrtion ofthe charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounls (Scolland) Regulations 2006. They are also responsible for safeguarding the assets of the charitabla company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Each of the Trustees confirms that: so far as the Trustee is aware, there is no relevant audit information of which the charity's auditor is unaware., and • the Trustee has taken all the steps that helshe ought to have taken as a Trustee in order to make himselflherself aware of any relevant audit information and to establish that the charity's auditor is aware of that information. This confirmation is given and should be interpreted in accordance with the provisions of $418 of the Companies Ad 2006. School of Hard Knocks 13 Trustees, report 31 March 2024 Trustees Respon8lbllitie8 Statement (continued) The Trustees are responsible for the maintenance and integrily of the corporate and financial information included in the chanty's website. Legislation in the United Kingdom goveming ihe preparation and dissemination of financial statements may differ from legislation in other jurisdictions. In preparing this report, the Trustees have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006. Signed on beh41f of the board of TNstees of School of Hard KrÈocks trictoria Griffin 2fj10712024 School of Hard Knocks 14 Independent auditor's report Year to 31 March 2024 Independent audltorfs report to the trustees and members of School of Hard Knocks Oplnlon We have audited the financial statements of School of Hard Knocks (the'charrtable company,) for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accountin9 policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice). In our opinion. Ihe financial statements.. give a true and fair view of the state of the charitable company's affairs as at 31 March 2024 and of its income and expenditure for the year then ended; • have been propedy prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and • have been prepared in accordance with the requirements ofthe Companies Act2006, the Chaflties and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 {as amended). Ba818 for oplnlon We conducted our audit in accordance with Intemational Standards on Auditing (UK) {ISAs (UK)) and applicable law. Our responsibilrties under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements thal are relevant to our audit of the financial slalements in the UK, including the FRC'S Ethical standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audÈt evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relatlng to golng concem In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least hvelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concem are described in the relevant seclions of this report. Other Informatlon The Irustees are responsible for the other infomation. The other information comprises the infomiation included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent other¥vise explicitly stated in our report, we do not express any form School of Hard Knocks 15 Independent auditor's report Year to 31 March 2024 of assurance conclusion thereon. Other Infomiatlon (continued) In connection with our audit of the financial statements, our responsibility is to read the other information and. in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misslatement in the financial statements or a material misstatement of the olher information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. • the information given in the trustees, report, which is also the directors, report for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements,. and • the trustees, report, which is also the directors. report for the purposes of company law. has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding ofthe charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees, report. We have nothing to report in respect of the following matters in relation to which the Companies Acl 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you rf, in our opinion: • proper and adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us: OT • the financial stalements are not in agreement with the accounting records and returns., or certain disclosures of trustees, remuneralion specified by law are not made: we have not received all the information and explanations we require for our audit., or • the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the truslees, report and from the requirement to prepare a strategic report. Responsibilities of trustees As explained more fully in the trustees, responsibilities statement, the trustees (who are also the directors of the charilable company for the purpose of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. and for such internal control as the trustees determine is necessary to enable the School of Hard Knocks 16 Independent audltof s report Year to 31 March 2024 preparation of financial statements that are free from material misststement. whether due to fraud or error. Responslbilities of trustees (continued) In preparing the financial statements. the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic arternative but to do so. Auditor's responsibilities forthe audlt of the Ilnanclal statements Our objectives are to obtain reasonable assurance aboutwhether the financial statements as a whole are free from material misstatement. whether due to fraud or error. and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material rf, individually or in the aggregate, they could reasonably be expected to inftuence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below: How the audlt was congldered capable of detectlng Irregularltles Includlng fraud Our approach to identrfying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows.. The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; We identified the laws and regulations applicable to the charity through discussions with management and trustees and from our knowledge and experience of the charity sector; We focused on specific laws and regulations which we considered may have a direct material effect on the accounts or the activities of the charity. These included but were not limrted to the Companies Act 2006. the Charities Act 2011: the Charities Accounts Scotland Regulations 2006,. Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102), Safeguarding Regulalions, GDPR, fundraising regulations- and We assess the extent of compliance with laws and regulations identrfied above by making enquiries of management and representatives of the trustees and review of the minutes of trustees, meetings. School of Hard Knocks 17 Independent auditor's report Year to 31 March 2024 Auditorfs responsibilities forthe audit of the financial statements (continued) We assessed the susceptibility of the charity's financial statements to material misstatement, including how fraud might occur by.. Making enquiries of management and representatives of the trustees as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and Considering the internal controls in place to mrtigate risks of fraud and non (58.8611 Tr*nsf•rn b•l)AMn lund• 18 13501 350 N•t mov•m•nt In lund• for th• y••r {28.1211 127,3901 151.1811 17,680> 158,8611 Re¢onclllotlon of fundl: FuThJ balances broughl forward at 1 Apdl 2023 120.208 4,567 124,775 171,389 12,247 183,638 Fund b*lanco# c•rrl•d lorw•rd •t 31 M•r¢h 2024 16 91,387 15.99 97.38J 120.208 4,587 124,775 All of the charity's activities derived from continuing operations during the above two financial periods. All recognised gains and losses are included in the above statement of financial aclivities. School of Hard Knocks 20 Balance sheet 31 March 2024 2024 2024 2023 2023 Notes Flxed assets Tangible assets 12 471 Current assets Oeblors Cash at bank and in hand 13 21,900 209,635 231,535 210,476 46,816 257,292 Ll•bilitie• Creditors.. amounts falling due within one year 14 {134.621) {133.420) Net currfrnt a•s•ts 96,914 123,872 Totsl n•l asséts 97,385 124.775 The fund8 of the charlty: Unrestricted funds . General fvnd Rèstricted funds Total charlty funds 16 16 91,387 5,998 97,386 120.208 4,567 124.775 The financial statements have been prepared in accordance with the small companies exemptions provided by section 415A of the Companies Act 2006. Approved by the trustees and signed on their behalf by.. Signed on behalf of'the. board of TtU5tees of School of Hard Knocks.. Victoria Gnffin 2610712024 Company Registration Number.. 07743730 (England and Wales) Charrty Registration Numbers.. 1147009 (England and Wales) and SC046110 (Scotland) School of Hard Knocks 21 Statement of cash flows Year to 31 March 2024 2024 2023 Notes Ci8h flows from operatlng actlvitlos: Net cash provid8d by (used in) operating actsvits'es 162,819 {181,165) Cg8h flow8 from investing actlvitle8: Purchase of tangible fixed assets Net cash used in investing activities (1,2951 11,2951 Change In cash and cash equlvalents In Ihe year 162,819 (182.460) Cash and cash oqulvalents at 1 April 2023 46,816 229,276 Cash and cash equlvalents al 31 March 2024 209,63S 46,816 Notes to the sLitement of cash flows for the year to 31 March 2024. A R•conclllatlon of n•t movemont In funds to net cash used In operatlng actlvltle8 2024 2023 Not movemenl In fund• (a• per the 6latornent ol Ilnanclal actlvltl•sl Adjustments for.. Depreciation charg? Decrease/llncr8asel in debtors Increasel(decreasel in creditors Net ¢a8h provldod by Iu8ed In) operallng actlvltlo• 127,3901 158.8611 432 188,576 1,201 162,819 392 (61,6571 (61.0391 1181,1651 B Analysls of changes in cash and cash equivalents Asat31 Asat31 March 2023 Cash flows March 2024 Cash at bank and in hand Total cash and cash equivalents 46,816 46,816 162,819 162,819 209,635 209,635 No separate reconciliation of net debt has been prepared as there is no difference be￿een the net cash (debt) of the chaiity and the above cash and cash equivalents. School of Hard Knocks 22 Prlnclpal accountlng policles Year to 31 March 2024 The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below. Basis of preparatlon These financial statements have been prepared for the year to 31 March 2024. with comparative information given in respect to the year ended 31 March 2023. The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless other*vise stated in the relevant accounting policies below or the notes to these financial statements. The financial statements have been prepared in accordance wrth 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 United Kingdom and Republic of Ireland (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102), the Charities Act 2011, Charrties Accounts (Scotland) Regulations 2006 and the Companies Act 2006. The charity constitutes a public benefit entity as defined by FRS 102. The financial statements are presented in sterling and are rounded to the nearest pound. A88essment of golng concern The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concem. The trustees make this assessment in respect of a period of at least one year from the date of authorisalion for issue of the financial statements. The trustees and senior staff remain highly conscious of Ihe cost of living crisis on how the charity will continue to operate to ensure long-term, sustainable delivery. While the charty has ended this financial year with a deficil, which can be attributed to a difficult fundraising landscape and increased costs, the Irustees are confident in the charity's ability to continue to adapt to provide a much-needed service. This can be seen in the charity's updated fundraising strategy that includes the appointment of two new rolès fundéd by the Fidelity Foundation - an Events Co-ordinator and a Trusts and Foundations Manger. Together, with our Partnerships Executive, this will be the first time the charity has a fully-fledged fundraising team with specific roles that focus on fundraising evenls, grant income generation, and corporate partnerships. We are confident this shift in strategy to increase corporate partners within our schools, programme, plan our long-term events calendar with risk mitigations, and establish new mulli-year grant funding will allow the charity to maintain a stable financial position and achieve our reserves target. The trustees continue to monitor and maintain sufficient cashflow and the B08rd's Finance Subcommittee continues to meet quarterly to review the financial position of the charity and each programme, the balance of restricted and unrestricted funds, the balance sheet. profti and loss, and budget variance for the year to date. The trustees, along with the leadership team, also continue to develop alternative delivery models to ensure the charity can adapt no matter the current financial climate. School of Hard Knocks 23 Prlncipal accounting policies Year to 31 March 2024 Assessment of going concem (continued) On the basis of their assessment of the Charity's financial position the Trustees continue lo adopt the going concern basis in preparing the financial statements. crftlcal accountlng estlmates and areas of judgement Preparation of the financial statements requires the trustees and management to make significant judgements and estimates. The items in the financial statements where these Judgements and estimates have been made include.. estimating the useful economic life of tangible fixed assets for the purpose of detemining the annual depreciation charge: • The allocation of staff costs between charitable expenditure and raising funds. estimating the value of grfts in kind received., and estimating future inflows and outflows for the purpose of assegsing going concern. Income recognitlon Income is recogr)ised in the period in which the charity has entitlement to the income, the amount of income Can be measured reliably and rt is probable that the income will be received. Income comprises donations and grants, fee income, sponsorship, income from events and investment income. Donations are recognised when the charity has confirmalion of both the amount and settlement date. In the event of donations pledged but not received. the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance befor& the charty is entrtled to Ihe fund8, the income is deferred and not recognised until either Ihose conditions are fully met, or the fulfilmenl of those condrtions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period. Donated services provided to the charity are recognised in the period when it is probable that the economic benefits will flow to the charity, provided they can be measured reliably. This is norrnallywhen the service is provided to the charity. An equivalent amount Is included as expenditure. Donated seNices are recognised on the basis of the value of the gift to the charity which is the amount Ihe chaTlty would have been willing to pay to obtain senlices of equivalent economic benefrt on the open market. In accordance with the Charrties SORP FRS 102 volunteer time Is not recognised. School of Hard Knocks 24 Principal accounting pollcies Year to 31 March 2024 Income reeognitlon (continued) Grants and fee inccxne from government and other agencies have been included as income from charitable activities where these amount to a contract for services, but as donations where the money is given in response to an appeal or wrth greater freedom of use, for example monies for core funding. Income is deferred when th8 charty has not satisfied the requirements for entitlement or when the donor has specified funds for use in a future accounting period. Sponsorship income is receivable on an annual basis in recognrtion of the charity's participation in certain activities. Fee income is recognised once the charity has fully met all perfomance criteria as specified in the relevant contract. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity. this is normally upon notification of the interest paid or payable by the bank. Expenditure recognltlon Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity lo make a payment to a third party, il is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. All expendrture is accounled for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification be￿e￿n activities is as followB.- Expenditure on raising funds includes 311 expenditure associated with raising funds for the charity. This includes staff costs associated with fundrai8in9 and the costs of fundraising events. • Expenditure on charitable activities includes all costs associated with lurthering the charitable purposes of the charty through Ihe provision of its charitable activities. Such ¢osts include the delivery of training courses, direct and support costs including govemance costs. All expenditure is stated inclusive of irrecoverable VAT. Allocation of support and govemance costs Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charty it is necessary to provide support in the form of project management carried out at Headquarters, personnel development, financial procedures, provision of office sep4ices and equipment and a suitable working environment. Governance costs comprise the costs involving the public accountabilty of the charty (including audit costs) and costs in respect to its compliance with regulation and good ppctice. Govemance costs are allocaled to the charity's sole activity, provision of training courses. Support costs are allocated to the charity's activity. provision of training courses. and fundraising. School of Hard Knocks 25 Principal accounting policies Year to 31 March 2024 Taxation The company is a charity under the Finance Act 2010 (schedule 6, paragraph 1) definition. Accordingly, the company is potentially exempl from taxation in respect of income or capital gains within categories covered by the Corporation Tax Act 2010 (part 11, chapter 3) or the Taxation of Chargeable Gains Act 1992 (section 2561, to the extent that such income or gains are applied exclusively to charitable purposes. No tax charge arose in the period. Tangible fixed assets and depreciation All assets costing more than £1,000 are capitalised. Tangible assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful economic lives on the following basis.. Computer equipment 33.33Yo Straight line Schools equipment 33.33% straight line Outdoor equipment 33.33% straight line Motor vehicles 200/0 Straight line Debtors Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued al the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material. Cash at bank and in hand Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Creditors and provisions Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefft will be required in settlement, and the amount ofthe settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payrnent where such discounting is material. Funds Restricted funds comprise monies raised for, or their use restricted to, a specific purpose. or contributions subject to donor imposed conditions. The general fund represents those monies which are freely available for application towards achieving any charitable purpose that falls within the School of Hard Knock's charilable objects. Pension costs Contributions in respect of the charity's defined contribution scheme are charged to the statement of financial activities when they are payable to the scheme. School of Hard Knocks 26 Notes to the financial ststements Year to 31 March 2024 Income from donatlons Unrestricted Restricted funds funds 2024 Total funds Individuals Corporate donatsons Trusts and Foundations Gifts in Kind 2024 Total funds 179,366 91,697 179,366 291,019 199,322 78,273 349,336 78,273 548,658 199,322 Unreslrlct6d Reslncted funds funds 2023 Total funds Individuals Corporate donations Trusts and Foundations Gifts in Kind 2023 Total funds 220,294 190,295 5,000 95,480 511,069 220,294 190,295 5,000 95,480 511,069 Income from other tradlng actlvltles Unrestrlctsd Re$trl¢tsd 2024 Total funds fund• fund8 Income Irom fundraising events 2024 Total fund8 149,839 149,839 149,839 149,839 Unreslrict8d R8slrict8d funds funds 2023 Tot81 lunds Income from fundraising events 2023 Total funds 267,654 267,654 1,360 1,3eJO 269,014 269,014 Income from charitable activities Unrnstrleted R￿trIct•d 2024 Total funds funds funds Grant income Fee income 2024 Total funds 95,697 266,042 361.739 467,824 6S3,521 266,042 819,563 457,824 School of Hard Knocks 27 Notes to the financial statements Year to 31 March 2024 Income from charitable activities (continued) un￿s￿ICted Réstrictèd . funds funds 2023 Total lunds Grant incom8 Fee income 2023 Total funds 67,000 330.907 397.907 601.598 668.598 330,907 999,505 601.598 Expenditure on raising funds Unrestricted Restrlcled 2024 Total funds funds funds Fundraising staff costs (note 101 Cost of fundraising events other fundraising costs Support costs (note 61 2024 Total funds 46.460 43,128 81,406 43,148 22,997 112,5B5 4,411 39,377 27,408 151.962 Unreslricted Reslricled funds funds 2023 Tot81 funds Fundraising slaff costs (nol8 10) Cosl of fvndr8ising events Other fvndr8ising cosls Support costs (nole 6) 2023 Total funds 7Q4,362 78.138 38,180 22,522 243.202 104,362 78,251 38,180 22, 522 243,315 113 173 Expendlture on charltable actlvltles Unrestricted Restrlctsd 2024 Total funds funds funds Training courses Course delivery staff costs (note 10) Support costs (note 7) 2024 Totsl funds 91,798 430,848 254.676 777.322 137,004 417,982 61,352 616,338 228,802 848,830 316,028 1,393,660 Unrestricled R8slricled fund$ funds 2022 Total fvnds Training coutses Course delivery staff costs (note 10) Support costs (note 7) 2023 Total funds 155.506 591. 192 237. 704 984,402 247,395 330, 754 32. 726 610.875 402, 901 921,946 270,430 1,595,277 School of Hard Knocks 28 Notes to the financial statements Year to 31 March 2024 Support costs Unre$trl¢ted Restrlcted 2024 Totsl funds funds funds Olfice and rent costs Communication costs Accommodation, travel and Subsisten￿ costs Staff expenses reimbursed Insuran Website and promotional material Consultancy fees Depreciation Sundry expenses Support staff costs (note 10) Irrecoverable VAT Governance costs (note 8) 21,465 16,617 378 1,717 38,OB2 378 10,633 693 4,327 8,916 583 3,642 22,997 47,124 685 li 4,411 8.868 432 1,087 25,733 804 4,921 66,763 27,408 55,992 432 6,868 162,476 5,075 31,072 343,436 5,781 136,743 4.271 26,151 277,673 Unre8trletod R••trictsd 2024 Totsl fund• funds lund8 Analysis of support costs Fundraising costs . Charitable activities 22.997 254,676 277,673 4,411 61,352 65,763 27,408 316,028 343,436 Unrestiicled R8Stnct8d funds fvnds 2023 Tol81 funds Office and rent costs Communication Cost Accommodation, tr8vel and subsist8nca costs Staff expenses reimbursed Insurance Websile and promotion81 mat8rial Consullancy fggs Deprecialion Sundry expenses Support staff costs (note 9) lffecover8ble VA T Govemance costs (not9 7) 35,097 480 9,913 2,022 4,607 22,522 49.389 392 10.076 95,216 8,045 22.473 260,226 22,565 42 440 60 57,656 522 10,353 2,082 4,607 22.522 49,389 392 10,305 95.216 8,045 31,863 292.952 229 9,390 32.726 Unrnstrict8d Rostricted funds funds 2023 Total funds Analysis of support costs Fundraising costs Charitable activities 22.552 237. 704 260,226 22,552 270,430 292.952 32, 726 32, 726 School of Hard Knocks 29 Notes to the financial ststements Year to 31 March 2024 Govornance costs Unrèstrieted Rèstrictsd 2024 Total funds funds funds Accountancy and audit costs Other professional fees 2024 Total funds 21,044 5.107 26.151 3,960 961 4,921 25,004 8,068 31,072 Unreslncted Restricled funds funds 2023 To181 funds Accountancy and audil costs Othgr profession81 fees 2023 Total funds 19. 750 2. 723 22.473 q9,750 12,113 31,863 9,390 9.390 Net lexpendlture) Income This is stated after charging.. 2024 Total 2023 Total fund8 funds Staff costs Inole 9) Depreciation of tangibl8 fixed assets Auditorfs ￿mUneratiOn Statutory Audit 1,092,712 432 1,121,524 392 14,000 11,450 Staff costs Staff costs were as follows.. 2024 2023 Wages and salaries Social security costs Pension costs 981.947 82,587 28,178 1,092,712 1,007,601 85,024 28,899 1,121,524 Total slaff costs have been allocated between expenditure on raising funds, course delivery, governance and support costs based on the approximate percentage of staff time spent in each area. as follows.. 2024 2023 Expenditure on raising funds Course delivery Support wsts 81,407 848,830 162.476 1,092,713 104.362 921.946 95.216 1,121.524 School of Hard Knocks 30 Notes to the financial statements Year to 31 March 2024 The average rwnthly number of employees during the year was as follows: 2024 No. 2023 No. Management Operational 29 32 27 33 One employee received remuneration behveen £70,000 and £80,000 in the year (2023 one employee received remuneration beNveen £60,000 and £70,000). Pension contributions of £2,121 {2023 - £2,121) were paid in respect of this employee. The key management personnel of the charity in charge of directing and controlling. running and operating the charity on a day to day basis comprise the trustees (who are not remunerated), the Chief Executive, the Operations Executive, and the Finance Manager. Total remuneration (including taxable benefi'ts, employerfs pension contributions and employers national insurance contributions) of the key management personnel for the year was £156,236 (2023 - £153,022). 10 Trustees, remuneration No twslee received any remuneration for services or reimbursed expenses as a trustee in the Current year12023 - none). 11 Taxatlon School of Hard Knocks is a registered Charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities. 12 Tangible fixed a88etg Computer Schools equipment Equipment Total Cost At 1 April 2023 Additions At 31 March 2024 2,824 1,295 4.119 2.824 1,295 4,119 Depreclatlon At 1 April 2023 Chargé for thè y8ar At 31 March 2024 2.824 392 432 824 3,216 432 2,824 Net book valu• At 31 March 2024 At 31 March 2023 471 903 471 903 School of Hard Knocks 31 Notes to the financial statements Year to 31 March 2024 13 Debtors 2024 2023 Trade debtors Prepayments and accrued income Other dèbtors 10,800 11,075 2S 21,900 201,994 8.457 25 210.476 14 Credltors: amounts falling due within one year 2024 2023 Trade creditors Other taxation and social security VAT Other creditors A¢¢rual$ and deferred income 23,238 20,212 6,564 11,042 73,565 134,621 40,510 25,063 10,412 7,440 49.995 133.420 15 Creditors: amounts falling due within one year 2024 2023 Deferred income brought foThvard al 1 Aprll 2023 Income deferred in year Deferred income released in year Carried fomard at 31 March 2024 26,000 102,547 59,565 25,000 125,000) <102,547) S9.565 25,000 Deferred income relates to income received in 2024 for use by the charity in 2025, as specified by the donors, School of Hard Knocks 32 Notes to the financial statements Year to 31 March 2024 16 Statement of funds Al 1 April 2023 At 31 Mar 2024 Income Expenditure Transfers ijnrestricted ￿ndS 120.208 861,086 {889.9071 91,387 Re8trlctsd fund8 Charles Hayward Comic Relief Fidelity Foundation Improving Lives Glasgow ISG Construction KPE4 Trust Lambelh Council Linc Cymru Housing Assoc. Millenium Stadium Trust Paul Hamlyn Foundation Quilter Foundalion SEWSCAP Transport for Wales Walcot Foundation Wasps Legends Wates Foundation Wooden Spoon 796 2.500 25,000 182,316 35,345 76,185 14,000 59,000 54,522 14,000 7,500 {24,567) {184.816) {35,345) {76,185) (14,000) (59,776) 154,522) {14,000) (2,731) (36) {24,850) {104,3001 {12,500) Is) {25,000) {6,775) {16,307) {655,7151 11,545,622) 1.229 776 4.769 402 24,448 104,300 12,500 25,000 6.723 16,307 657,146 1,518,232 52 4,567 124,775 5.998 97,386 Total funds At l April 2022 At 37 March 2023 Income Expenditure Transfers Unrgstricled funds 171,389 1, 176, 773 (1,227,604 (350) 120.208 Rostricted funds Charfes Hayward Comic Relief Fifg Mental Health Fund Gosling Foundation Improving Lives Glasgow Joljn Lyon's Charity KPE4 Trust Laur8us Sport for Good National Lottery Paul Hamlyn Foundation Quilt8r Foundation Riv8rsid8 Resourc8 Comm. Tabanl RFC Walcot FOUndat￿n Wates Foundafv'on Young London8 1,188 3,917 25,000 190.061 18,669 10.000 91,548 25,020 59,300 20,000 10.000 33,000 45,000 (25,392) (191,478) (18,669) (10,OtW) (91,548) (26.687) (58,524) (20.000) (10.000) (32, 964) (44,598) {2.414) (1,901) (64, 995) (11,468) (350) 602,958 (610, 988) I, T79,731 (1.838,592) 796 2,500 1,667 776 36 402 2.414 541 1.360 65,000 9,000 2.520 52 350 350 12.247 183,636 4.567 124, 775 Total funds School of Hard Knocks 33 Notes to the financial statements Year to 31 March 2024 16 Statement of funds (continued) Restricted Funds Charles Hayward Foundation Charles Hayward Foundation has given us multi-year grant funding for rugby coaching and behavloural support mentoring for schools in North Hertfordshire. Comic Relief Comic Relief gave us funding for three years starting in 2020 to deliver 12 adult courses in Wales with psychotherapy support. We have also received extension funding for to deliver 4 more courses from April 2024. Fidelity Foundation Fidelity Foundation has provided funding support lo enable the hiring of a Trusts & Grants Manager (part time) and Events Coordinator (part time) The National Lottery-lmproving Llves The National Lottery has given us multi-year grant funding to deliver 6 courses over 2 years in Glasgow, working with unemployed adults with a focus on Roma communty and refugèelasylum seekers. breaking down barriers between them and local 'settled' population. ISG Constructlon ISG Construction provided a £14k contribution to support the delivery of Welsh Schools programme in Cantonian High School, Cardiff. KPE4 Trust KPE4 Trust gave us grant funding to deliver our Scolland Schools programme in Broughton and Craigroyston schools. Lambeth Council Lambeth Council commissioned SOHK to work with schools in Lambeth for academic years 2023124 and 2024125, following the successful delivery on a one-day per week basis in 2022123. Linc Cymru Housing Association Linc Cymru provided £14k to support our delivery in Fitzalan High in Cardiff, during the 2023124 academic year Millenlum Stadlum frust Millenium Stadium Trust provided £7.5k to support the SOHK Cymru Schools Festival, reward trips, and participant kit for academic year 23124 School of Hard Knocks 34 Notes to the financlal statements Year to 31 March 2024 16 Statement of funds (continued) Paul Hamlyn Foundation The Paul Hsmlyn Foundation provided a grant to support our INC project to develop a good practice guide on howto improve Ihe experiences of trans, non-binary and gender exploring young people in Wales. Quilter Foundation The Quilter Foundation has provided a grant for three years starting in 2020 to fund two England adult courses per year, which has been postponed and deferred into the new financial year. We have also received continuation funding to continue to deliver our adult courses at Black Prince Trust. SEWSCAP SEWSCAP supported the Adults (£16.8k) and Schools {£87.75k) programmes in Wales during the year Transport for Wales Transport for Wales contributed £14k to support our programme delivery in Idris Davies High in Caerphilty. Walcot Foundation The Walcot Foundation pravided a grant to deliver our England Adult courses in London. Wasps Legends Wasps Legends have provided multi-year funding to support our schools delivery across the UK. Wllllam Wates William Wates Memorial Trust have given us multi-year grant funding over three years to support our work in Warlingham School in London. Wooden Spoon Soclety Wooden Spoon have fund a full-time coach for our schools programme in Scotland for Iwo years, finishing at the end of academic year 2024125. School of Hard Knocks 35 Notes to the financial statements Year to 31 March 2024 17 Analysis of net assets between funds Unreslrl¢ted Regtrlcled 2024 Total fund8 funds fund$ Tangibl8 fixed assets Current assets Creditofs due within one year 471 165,973 175.057 91.387 471 65,562 231.535 169,565) 1134,622) 6,997 97,384 Unrèstriclad funds Rastrictèd 2023 Tolal funds funds Tangible fixed assels Cuff8nl assets Credilors due within one year 903 227, 725 (108,420) 120,208 903 29, 567 25T.292 (25,OGQJ (133,420) 4,567 124, T75 18 Related party transactlons During the year various trustees contributed financially to the organisation receiving a cash donation of £1.200 (2023 - £1,566) from one trustee, a temporary interest free loan of £40,000 from a trustee (fully repaid at the year- end>, purchased £5,610 of tickets to attend corporate fundraising evenls, donated auction prizes with a value ofapproximalely £15.200 {2023 - £32,286) from various trustees Additionally, the charity received pro bono services of £55,992 (2023 £49,389) from Millbank LLP, a law firm of which James Cameron is a partner. 19 Commitments under operatlng leases Al 31 March 2024, the total of the charity's future minimum lease payments under non- cancellable operating leases was as follows.. 2024 2023 Amounts due within one year Amounts due tre￿een and five years inclusive 2,280 190 2,470 2.280 2.470 4,740 School of Hard Knocks 36