IHALLENGEZ REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR END 31 AUGUST 2023 CHALIENGE PARTNERS REGISTERED COMPANY NUMBER: 08048330 (England and Wale51 REGISTERED CHARITY NUMBER: 1149266 111 •PL)PA2WC' 11105r2024 COMPANIES HOUSE *1
-CHALLENGEz .PARTNERS CHALLENGE PARTNERS Page Reference and administrative details Report of the Trustees 4 to17 Independent Auditorfs Report 18to21 Statemeni of Financial Aciivbties 22 Balance Sheet 23 Statement of Cash Flows 24 Notes to the Financial statements 25to35
-CHALLENGEZ ,••PARTNERS CHALLENGE PARTNERS REFERENCE AND ADmINIRAVE DEfAILS Registered Company number 08048330 IEnglarbd and Walesl Registered Charity number 1149266 Registered office John Keats Primary School 391 Rotherhithe New Road London. SE16 3FN Trustees Mr Christopher Davi50n Dr Katherine Chhatwal 08E lex officiol Mr Arwel Jones M5 Ali50n Beane OBE Ms Susanna Eastham Ms Janine Harion Ms Vijita Patel Ms Louise Wolsey Ms Gulcin Sesli lappointed 7 December 2022 and Signed 22 November 20231 lappointed 21 September 20221 MrGary Lewis (appointed 21 September 20221 Ms Lucinda Ingram lappointed 21 September 2022 Mr Pavandeep Bansal (appointed 21 September 20221 MrGary Handforth (resigned 21 September 20221 M5 candi Lott Independent Auditor Haysmècintyre LLP 10 Queen Street Place. London EC4R IAG Bankers HSBC UK Ltd The Helicon I South Place London EC2M 2UP
-CHALLENGEZ .PARTNERS HALLENGE PARTNERS REPORT OF THE TRUSTEE5 FOR THE YEAR ENOED 31 AUGVST 2023 The purpose of the Charity The Charity's Objects I'objects'l are specificalty restricted to the advancement of education for the public benefit in particular (but wrf(hout prejudice to the generality) by promoting and supportin8 the improvement of schools gIOnallY, nationally or internationallv. In reviewing the Charity's aims, and putting them into action. the Trustees have taken account of the Charitv Commission's guidance on public benefit. Summary of the main activities 20221231Septembef 2022 to August 2023) In 2022123 we had 560 schools and 129 trusts in our partnership, with a school renewal rate of 79%. maintaining high retention levels from the prior year. Following strong growth in the previous year125% increase), we grew further in 2022123. reaching 369.365 pupi15 across all schools and trusts in our partnership. In January 2023, we published a five-year strategy setting out our ambition to enhance and extend our partnership so that by 2027 we benefrt 5W,IXK) pupils each year. Our commitment to enhancing our digital strategy was reinforced with the recruitment of a Direcror of Digttal Transfom)ation in July 2023. A: Network of Excellence The Challenge Partners, Network of Excellence INOEI serves as a professional learning comrnunity. School improvement. trust programmes and networks lincludin8 hub51 are the vehicles by which leaders collabor¥te, challenge and support each otherfs development. contributing to upwards tOAvergence of the sector a5 a whole. The NOE knowledge-sharing space brings opportunities to hear about leading practice an(1 find peer support for susiainable school improvement. It includes access to a programme of inspiring speaker5 from the education seclor and beyond. addressing topical and enduring themes. We held three virtual National Network confenCeS in 2022123. which received an average overall satisfaction rating of 4.65 out of 5, focu55ing on our iheme of human flourishing. Challenge Partner5 also delivered four Sharing Leader Pratlice events in 2022123, providing both in-person and virtual opportunities for leaders from all phases to engage with specific excellent practice from other schools in the network. The skill of the facilitaiors we cruit, train and quality assure is crucial to the success of Challenge Partners. programrne5, nelworks and events. We make sure leading knowledge is in the room. so that excellent practice becomes common practice. This is what drfterentiates Challenge Partners and makes collaboration in our partnership such an impartFul experience for 311 our schools and trusts. Now in its third year. our bespoke training provides excellent preparation for practitioners facilitatin8 collaboration and best practice Sharing ihrough our programmes and networks. School leaders gain powerful CPD and it builds leadership capacity across the system. In 2022123 we ran our highly rated facilitation training for a total of 34 practitioners, training them to join various programmes as practitioner facilitators.
-CHALLENGEZ .PARTNERS CHALLENGE PARTNERS REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023 l¢ontinued) Summary of the main activities 2022123 (September 2022 to August 20231 (continuedl We have also developed our digr(al knowledge exchange offering to fvrther facilitate school collaboration, with the help of fund5 provided by the David and Elaine Potter Foundation. In 2022/23 we created a Hub Manager Network to support our hubs in collaborating and sharing best practice. Thi5 launched with an in-person Senior Partner and Hub Manager Development Day, where all hubs carried out a self-audit against our Hub Gold Standard. We held four further virtual sessions over the year. We also piloted a Hub Manager Accreditation proces5 to support Hub Managers and improve consistency across the hubs. Three Hub Managers achieved accreditation and received a £5) stipend to support their ongoing leadership development in their Hub Manager roles. Quality Assurance Review Ourflagship programme, the Quality Assurance Review IQARI. is a the-daY rigorous annLbal peer evaluation of teaching and learning. curriculum and outcomes. and leadership at all levels. It has a sharp focus on how schools support the most disadvantaged learners. 2022123 wa5 a record-breaking yearfor u5 as we delivered 413 QAR5. This exceeded our pre-pandemic record of delivering 388 QARS in a single year. We also maintained extremely high Satisfaction ratings from both host schools and Teviewers. Over 95% of host schools reported they were saiisfied or highly Satisfied with their review experience and 97% of reviewers were either satisfied or highly satisfied with their experience. C-. Growing the Top The Growing the Top IGThI programme brirw together topperfomiing schools, for individual and shared school improvementjourneys. drawing expertise frorn edvcation. business and beyond. They collaborate and drive their schools and the education System to become world class. sharing excellent practice and exploring challenges. Thirty-tW0 schools took part in 2022123. 10 secondary. 14 primary and eight special schools. Following feedback from previous attendees, this year we limited the time out of school for participatln8 leaders by changing the mid-year event to virtual delivery. The average feedback score was 4.7 out of 5 for host schools and 4.9 out of 5 for visiting school leaders.
-CHALLENGEZ .PARTNERS CHALLENGE PARTNERS REPORT OF THE TRUSTEES FOR THE YEAR ENOED 31 AUGUSF 2023 {¢ontinuedl Summary ot the main acti¥itie5 2022123 (September 2022 to August 20231 lcontinuedl D: Extendin8 Leading Praclice Extending Leading Practice IELPI is destgned for schools that are keen to make the shift from good to excellent practice, matching them in trios or quads, with other schoo15 that Share iheir ambition. Schools focus on a specific in-5chool improvernent initiètive linked to their school development p13n. A struciured programme of facilitated school vi51ts allows school leaders to observe excellent practice in other schools and create or co-create solutions to challenges. In 2022123. there were 12 participating schools. Ifour secondary. five primary and three special schoo151 with groups matched with a praciitioner facilitator to lead visit days. The average feedback score was 4.7 out of 5 for h05t 5choo15 and 4.8 out of S for visiting leaders. The ELP and prograrnmes share whole cohort events. enabling wider networking and a greater sharing of excellence as well as giving participants insights from beyond the education sector. E: Jubilee Networks These regional networks enable headteacher5 to build strong connections with peers across their area, sharing knowledge. experience and different strategie5 for school improvement. A leadership focvs 15 embedded into the network approach. Schools in each network take turns to host all-day meetin85 for ei8ht to twelve headteachers. showcasing areas of strength alongside areas for development. This provides inspiration forvisiting headteachers to stimulate improvement in their own schools. The host school benefits from the feedback, helping them to develop their approach funher. In 2022123 we Saw a successful shift to pracirtioner-led facilrtation of Jubilee Networks, with trained practitioners designin8 vlt day5 and creatin8 50tial caprtal. supported by Challenge Partners. Central Team. This change wa5 well received and the average 5at15faction rating was 4.9 out of 5. We also partnered with BTS Spark. a not-for-profit education practice within BTS. a multi-award-winning global leadership consultancy. to pilot the delivery of leadership workshops during visit day5. These successful events were iailored to the leadership development needs of the headteacher5 in each network. The piloi is being assessed by ImpactEd as part of an independent evaluation of Jubilee Networks.
-CHALLENGEz .PARTNERS CHALLENGE PARTNERS REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023 Icontinuedl Summary ol the main a¢tivitie$ 2022123 Iseptember 2022 to August 20231 {c¢ntinued} F: Trust Leader5. Netsvork and Trust Peer Review Trust Leaders, Network Our national Trust Leaders. Network (TLNI is an expertly facilitated space where CE05 and other Senior trust leaders from across England share knowledge and best practice. It provides a supportive space for individual and trust development aligned with each trust's priorities and context. Leaders can access a range of artivities, including facilitated trust visit days, an interacttve business webinar serie5, IdelNered in partnership with the Social Business Trust), a natiorhal Trust Leaders conference and an optional leadership residential. 2022123 was the third year of the TLN and membership grew to 36trust leaders, seven morèthan in 2021122. Survey rating5 across all aspects of the TLN saw the residential achieving a IC% satisfaction score, visit days 99% and webinar$ 95%. The TLN was highly effettive in facilitating knowledge exchange between trusts. allowing those in potential isolèied roles to share best practice and develop their leadership skills. resulting in strongertrusts and schools for the young people they serve. Trust Peer Review This expert-led three-day peer review evaluates a school trust's effectivèness in driving improvement in its schools and ovtcorne5 for the children and young people it serves. Recently relired CEOS of successful trusts are trained in Challenge Partner5 methodology and lead a team of peer reviewers drawn from different trusts across our national network. They work alongside the host trust to explore strengths. areas for development and next steps. In 2022123 we delivered 10 Twst Peer Reviews (TPRsl, uslng 40 trust leaders from 21 diffent trusts as reviewers. We invited TLN participants to train as reviewers to join a team as a visiting reviewer. Satisfaction with the programme was high. with 80% of host trust responden15 either satisfied or highly satisfied with their experience of TPR. In addition. 84% of TPR viewerS said they were highly satisfied with their experience of the programme. We piloted a regional model of the TPR for the first time. Four tn15ts in the South West agreed to review each other in turn. deepening relationship5 over the course of the PTO8ramme. Three of the reviews thi5 yearwere part of this pilot. This model will continue to be developed over the next year as an additional option for trusts. A TPR participant de5¢ribed ihetr experience as:"A valuable professional development opportunity. It was great to work with other professionals and have the opportunity and time for discussion and reflection."
.CHALLENGEZ .PAt2IEg]ELTrS CHALLENGE PARTNERS REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGusf 2023 l¢ontinuedl Future plans 202312024 Iseptember 2023 to Au8USt 2024) We have an ambitw)us five-year growth ambition to expand in our partnership. so that by 2027 we reach 500,(X)O pupils a year. The sirategic initiatives to enhance our offer and reach and retain more schools, especially in underserved areas, will progress alongside continuous improvement and innovation in deliverin8 our current programrne5 and network5. Our five key strategic initiatives are= Improving our QAR capacity. systems and processes to build operational resilience as we scale Enhancing our offer through ongoing innovation in our programmes. networks and subscrtption models Reaching and retaining more schools and trusts. especially in underserved areas Building capacity and capability within our central team Preparin8 for the future A: Network of Excellence We aim to continue providing an exlIent experience for all partners and to maintain a consistently hi8h retention rate in the years to come. Retention efforts will also bring improvements in account management. supporting our hubs to achieve our Gold Standard through.. More systematic and integrated customer care proce55es, $0 that we address issues speedily and strategically Extelleni programme and network delivery, including support. training and development of our practitioner facilitators • Tailored relationship rnanagement for schools and trusts based on their partnership level Our Hub Managers Network and promotion of the Accreditation Scheme for Hub Managers Two of three virtual National Network Conferences have been successfully delivered in 2023124. with an average overall satisfaction rating of 4.6 out of 5. focu55in8 on our theme of human fk)uri5hing for all. We have also delivered two out of a total of the Sharing Leadin8 Practice events with an average satisfaction rating of 4.5 out of 5. Challenge Partners, continues to empower its facilitators to bring the ri8ht level of leading practice and challenge into every discussion. whilst also retaining a collegiate environment which ¢5 both safe and 5UPPOrtive. Our knowledge exchange principles remain embedded in the design and delivery of all programmes and networks. and these are evaluated for impact. We have increased our focus on accrediting area5 of excellence. using 2023124 to -explore how schools and trusts might directty share leading practice beyond the structured network and programme events we offer. Our dlta1 knowledge exchange strategy was enhanced in 2023124. with the launch of our new website in November 2023, allowing our partners to access infomiation more quickly and easily.
-CHALLENGEZ .pllt2YGIEL2S CHALLENGE PARTNERS REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023 Icontinuedl Future plan5 202312024 (September 2023 to August 2024) Icontinuedl 8: Qualilv Assurance Review We are on track to deliver another retord number of reviews. 450 revlews in 2023124. Thi5 is our largest number to date, increasing on the record-breaking nvmber of 413 reviews delivered in 2022123. Most 5choo15 sign up for the OAR and we a committed to buildin8 capacity, systerns and processes, so that we can smoothly deliver this programme to our schools and scale it as we grow. Scheduling has previously been a key challenge to programme delivery. However, the new software rolled out in Spring 2023 has proved to be a great success. enabling schools to sign up and schedule their review when they join or renew as a full partner. As a result, we had an unprecedented number of reviews booked in before the start of the new 2023124 academic year. Improving our technology and how schools engage with us is an important part of our future development and digital capital. We plan to develop further functionality to OLtrr subscription and scheduling system5 in 2023124, so schools and reviewers can engage in an efficient and productive way, while reducing the need for manual intetventKJns by our Central Team. Improvements include= IteratNe improvements to the scheduling process Allowing school leatlers to book themselves onto QARS as reviewers Improving communication around reviewer commitment and making it easier to identify opportunities to engage with the OAR in different ways Growing the number, geographic Spad and phase expertise of our Lead Reviewer5 to increase our pool C: Growing the Top There are 34 schools participating in GTh for 2023124 (seven secondary, 20 primary and seven special schools). with practitioner-facilitated visit days hosted by each school. Fifteen of the 34 schools have previously taken part in the programme. Participating schoob will benefit from two in-person and one virtual whole-cohort events, alongside ELP schools. bringing them together for further knowledge sharing and to build social capital. They'll hear from speakers from the world of education and business on tOPlCS such as wellbeing. policy, diversity and inclusion and maintain out5tandin8 performance. Following feedback from previous GTh and ELP cohorts, we are trialling merging the mid-year event with the National Network cOnfence to ensure high*uality input and further reduce the time commitment required for school leaders.
CHALLENGEZ .piit21fBdERS CHALLENGE PARThIERS REPORT OF THE TRUSTEES FOR THE YEAR ENDEO 31 AUGUST 2023 l¢onlinuedl Future pl•ns 202312024 (September 2023 to August 2024) Icontinuedl D: Extending Leading Pradice Now in its third year of delivery. the ELP programme InvoeS 17 schools in 2023124 Ifwe secondary, six primary aAd six special schools). Alongside the Grr cohort, ELP schools will benefit from two in-person and one virtual whole-cohort event5. Lookin@ ahead. our challenge for both GTh and ELP will be to scale both programmes by marketing the progrèmmes to the wider partnership. as well a5 new lead5. We will a150 be working to embed effective internal systems to support delivery to a larger number of school5. E.. Jubilee Networks Secondary jubilee Nelworks continue in the Midlands and South-central regions in 2023124. The Primary Jubilee Network in the Midlan(Js also continues. In addition. we have launched a new Primary Jubilee Network in the South-central re8ion. This year all Jubilee Networks are facblitated by practitioners. who are takin@ a more direct role in designing visit days and liaising with iheir groups, with support from the Central Team. This year, we are continuing to partner with BTS Spark to deliver leadership workshops during Jubilee Network vi51t days and are monitoring the value of these inputs. We are working with ImpactEd to evaluate the impact of Jubilee Networks and gain insights to support their growth and developments. There are opportunities io grow MO Jubilee Networks in areas of the country where we are underrepresented, where budgets are constrained andlor schools or sponsors are looking for valuable ways for leaders to benefit from knowledge exchange and leadership development. F: Trust Peer Review and Trust Leaderf Network Trust Peer Review We have innovated our TPR framework for 23124 by bringing it into line with the Confederation of School Trusts, ICSTI Strong Trust5 A5sur8nce Framework. which Challenge Partners contributed to. We continue to improve TPR operaiions and Quality by bringing key processes and quality assurance in Ibne with approache5 used for our flagship QAR. We are building on the succe55 and impact of our South-west group TPR by offering this model as an alierrbatwe to participation in our national TPR programme. io
-CHALLENGEZ .PARTNERS CHALLENGE PARTNERS REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023 Icontinuedl Future plans 202312024 Iseptember 2023 10 August 2024) {tontinued) F: Trust PeeT Review and Trust Leaders, Network {continuedl Trust Leaders, Network The TLN has grown to 41 members in 2023124. with 20 of these returning members. This year we have introduted two practitioner facilitators to facilitate trust visits. working closely with h05t trusts to design the agenda, with support from Challenge Partners. In 2023/24, we will facilitate five tTUSt visits and three business webinars in partnership with the Social 8usiness Trust. Network members can train as Trust Peer Reviewer5 and join the two-day Trust Leaders. Residential. They will also have the opportunity to recerve executNe coaching from BTS Spark. The Trust Leaders, Conference will take place in July 2024 and this year we are partnering with the CST. G: SEND Developmental Peer Review In January 2024, we launched our special educational needs and disability ISENDI pilot programme with 37 schools. Schools paid a fee of £2,000 each to take part and two local authorities sened up a number of their schools. The pro8Tarnme aims to improve provision and outcomes for SEND students attending mainSt8M schools. Participating schools self-evaluate their SEND provision. then receive honest and insightful feedback from peers in expert-facilitated days. It enables schools to leam from each otherfs strengths and collaborate on solutions to common challenges. supporting each other to improve and deliver the best for their pupils with SEND. Our next steps are to evaluate the pilot and prepare to scale the programme for the future by improving our internal 5y5tems. We are seeking funding for an external evaluation in 2024125 and to disseminate findings in the wider education sector. H: Middle Leaders Quality Assurance Review This hub-led programme was rolled out to the network in Autumn 2023, following a successful pilot and independent evaluation. Drawing on principles from our QAR programme. the Middle Leaders Qualpty Assurance Review IMLQARI is designed to support School improvement at a hub level through developing middle leadership in schools. Challenge Partners ran virtual training for senior leaders to become Lead Facilitators and lead one- day MLQARS. We also provided hubs with a programme pack of resources that support the coordlnation of reviews and video training for middle leaders. Eight hubs have signed up to the MLQAR. We will evaluate the roll out through focus groups and case studies, with the aim of expanding the number of hubs participating in 2024125. li
-CHALLENGEZ .PARTNERS CHALLENGE PARTNERS REPORT OF THE TRUSTEES FOR THE YEAR ENOED 31 AUGUST 2023 (continued) Financial Review Challenge Partners receive(J £2.9fmill"ion ol income-in'-the-year ending-3..Aug$t-2O23,.Wrth.OUtg0irI8S totalling £2.95 million. delivering a surplus of £0.01 million 12022: £0.15 million). The Trustees and Management had agreed to increase spending in 2023 in order to facilitate future growth. While this did increase costs. the investment was essential to increase skills. knowledge and expertise. to enable ourgrowth ambition of enhancing the outcomes for 5LK).OQK) pupils a year by 2027. The principal sources of funding for the year were= £2.63 million from the NOE, primarily partnership subscriptions. These funds are used to support schools In improving at a rate above the national average £0.29 million from the grant incorne, gifts and donations. £0.08 million of which came in the form of a gift in kind as business consulting Reserves held a5 at the end of the year omounted to £429,19812022 £417,359). The reserves were splil as follows: unrestricted reserves £429,19812022 £417.3591 restricted reserves £012022 £01 12
-CHALLENGEZ .PARTNERS CHALLENGE PARTNERS REPORT OF THE TRUSTEES FOR TTrIE YEAR ENDED 31 AUGUST 2023 Icortlnuedl Financial Review Icontinuedl The Trustees adopted è Cash Reserves policy durin8 the year. with a requirement for the tharity to retain between three and nine month5 of expenditure as cash available at bank at any one time. A RAG status has been adopted to report to the Trustees in a timely manner to ensure that cash reserves remain strong to support the charity during this period of 8rowth. Cash reserves at the end of the year were at RAG status Green, with no concerns highlighted for the twelve months forecast from the end of the month. Cash. income and expenditure forecasts are updated on a monthly basis as a matter of course with Trustees. The ChJir of the Finance and Audit Committee IFACI is consulted with if there is a deviation from agreed budgets and plans. none of which have occurred in the months to Signing of the account5. Fundraising In order to achieve our ambitlOUS growth strategy. Challenge Partners appointed it5 first in-house FundraisinB Lead during the Summer of 2023. This is a pivotal role enabling Challenge Partners to innovate and grow its support for even more Schoo to enhance outcomes for their pupils. Challenge Partners actively raises funds from trusts. foundations. corporates and other fundinB organisations. We are focus5ing on raisin8 unrestricted funds to cover core costs. however restricted funds are also being sought to develop and grow our digital infrastructure to enhance the back-office technologies surrounding Finance & Human Re50urce5 and implement technology improvements to erbable 8reater efficiency and ease of use for QAR scheduling for all parties. Restricted funds. if granted. will a150 allow further innovations to enhance our offering in the changing and challenging education environment. We continue to benefit from the generosity of individual donors. trusts and foundations. and remain extremely grateful for their support. During the financial year. Challenge Partner5, operations were funded by: Social Business Trust Permira Foundation Garfield Weston Foundation Barr3tt Foundation David and Elaine Potier Foundation rx Markets Our overall fundraising objective is to diversify our sour5 of fundin8 and 5UPPOrt innovation and improvement in our partnership. Over the comin8 year. our priorities are.. to steward our existing relationships with a view to securing further long-term grants. build latIOnShipS and develop bids with new trusls. foundations and corporates, and assist school trusts to access funding from the TfiJSt Capacity Fund to spend with us. 13
-CHALLENGEZ .PARTNERS CHALiENGE PARTNERS REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023 l¢ontinuedl Cash Reserves Policv Challenge Partners. cash reserves policy is to maintain a minimum three months staffing costs plus £50,000 to cover for contingency ir7 case of substantial loss of revenue where the company needs to cease trading. We a150 rnaintain a level of contingency fund for opportunit5 that foster and promote the mission of the charity. The unresiricted cash reserves required to meet three months staffing costs and cover for contit)gency are £305.79512022.' £285.7991. Unrestricted cash reserves as at 31 August 2023 amounted to £l,727.487 12022.. £1,341.0361. These cash reserves allow Challenge Partners to address and financialty manage the consequences of any unforeseen events or to take advantage of fresh opportunities that further Challenge Partners, aims and objectives. Trustees periodically review the cash reseryes policy to ensure il meet5 the requirements of the charity. Principal Risk5 and UncertaiDlies Aisk management is central to Challenge Partners, ability to deliver its mission and objectives. Challenge Partners applies multiple ways of identifying and managing risks through the Leadership Team ILTI, the FAC and the Board. The organisational risk register is a shared tool through which we record financial. strategic and operational risks and strategies to mitigate these risks. The Board leads on the review and approval of the or8ani5ational risk register. This process helps Challenge Partners to identify and assess potential risk5 and to develop effective mitigatton strategies. Financi81 risk management is implemented through rigorous budget control and monthly cash flow mana8ement which ensures only secured funds are spent. The LT interacts with the FAC and implements the scheme of delegation on i55ues ih3t need pOrting to the FAC. Monthly management accounts discussions are held at a senior management level and at the FAC. The management accounts are also presented to the Board. The FAC review5 risks. challen8e5 and key financial management policies and assumptions. The FAC enSUS that the annual budget is adequately funded and makes Tecommertdatiofis to the Board for adoption. Strategic risks are identified bythe LT. who lead on managing these risks and notifyingthe FAC and the Boar(l. Operational risk is identrfied and bespoke mitl8Otions are undertaken by the delivery tearns. who review programme activities as part of the regular prograrnme monitoring activities. 14
-CHALLENGEZ .PARTNERS CHALLENGE PARTNERS REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AVGVST 2023 Icontinuedl Prin¢ipal Risks and Uncertainties Iconlinued) Challenge Partners identrfied and mitigated for the following key risks in 2022-2023.. Major risk Mitigations Financial Sustainability and income diversrfication l. Grant application5, 5w)nsorship and fundraising plans 2. Diversifying income streams through long term partnerships 3. Maintaining clear budgeting and monitoring pmcesses 4. Raising income through growth. fundraising and further price increa5e5 l. Lack of breadth to our income source and an over reliance on donations Inflationary pressures on budgets Internal staffinglcapatitylsystems challenges l. Ongoing development opportunities internally to Stretch. develop and grow our own 2. Two months, notice period allows a long ad in time for handover 3. Regular revTrew of staffing ensuring the right people are in the right role5 Reflections around what worked/didn't around operatbonalisation of offer 5. Looking to where we can further automate to support delivery 6. Further staff training to develop skills and drill into where responsibilities lie Key personnel leave the organisation Internal infrastructurelprocesses do not keep up with our Inca51n8lY complex offer 3. Insufficient skillslcapacity for innovationlother projects Changes to the sector impacting our relevance and perceived value for schoo15 l. Continue to demonstrate and communicate the benefits of external challenge and support 2. TPR and TLN to increase in profile and significance to support trusts 3. Flexibility of trust package 4. Use of technokngy to support collaboration virtually l. Increase in school trusi si2e and capacity making them less likely lo look to extemal organisations for collaboration and support 2. Recruitmentlretentionlfunding pressures mean schools could be less open to outside of sthool collaborative work 15
CHALLENGEZ .pz]t2f CHALLENGE PARTNERS REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2023 Icontinuedl sTRUURE. GOVERNANCE AND MANAGEMENT Challenge Partners was incorporated 05 a Company Limited by Guarantee on 27 April 2012. It was registered as a Charity Istandard registration) governed by its ArtKles of Association 9 October 2012. Challenge Partner5 is a charity registered in England and Wales111492661 and is regulated by the Charity Commi5SiOn. We are a nationwide network of schools working together to improve education outcomes for all. Our goal is to reduce educational inequality and improve the life chances of all children. Through collaboration. challenge and leadership development, we are working io ensu every school community can benefit from the combined wisdom of the whole System. Challenge Partners has a Board of Trustees committed to manage the business of the Charity and mav exercise all the powers of the Charity unless they are subject to any restrkCtion5 imposed by the Companies Acts, the Articles or any Special Resolution. The number of Trustees shall not be les5 than three and lunle55 otherwise determined by the Trustees) there shall be no maximum. The Trustees shall ensure that there are always sufficient Tru51ees so ihat the busbness of the Charity is adequately governed. The Chief Executive shall be a Trustee ex officio. Any individual who become5 a Trustee will automaticalty be deemed to have been appointed as a member al the same time. The term of office for all Trustee5 Isave for the Chief Executive) is three years. Trustees a eligible for reappointment at the end of their term up to a total maximum of three consecutive terrn5, following which they will not be eligible for appointment aEain for one year. In exceptional circurnstance5 and where it is in the inierest ol the Charity to do so. Trustees may agree by Special Resolution to reappoint a Trustee for a further specified temi of no more than one year. folbowing which they will not be eligible for appointment again for one year. The 8oard of Tru5tee5 also ha5 a separate committee= Finance. Risk and Audit= to monrtor and review audit aclNit*s, the risk and control Framework. along with ihe 5talutory actounts/annual report The Board of Trustees delegate the responsibility for the day-to-day management of Challenge Partners to the LT Policy, strate8ic and implementation plans are prepared by senior management for consideration and approval by the Board of Trustees. In 2022123 the LT was comprised of the following members.. Chief Executive Executive Director Managing Director Director of Finance and Operation5 lioined April 20231 Head of Finance and Operations Iresigned January 20231 Director of Partnership Development Head of Strategy and Innovation Head of Programmes. Networks and Evaluation • Director of Digital Transformation O'oined Juty 2023) 16
-(HALLENGEZ .pllt21fj14Et2S CHALiENGE PARThERS REPORT OF THE TRUSTEES FOR THE YEAR ENOEO 31 AUGUST 2023 l¢ontinued) TRusfEES' RESPONSIBILITY STATEMENT The Trustees (who are also the directors of Challenge Partners for the purposes of company lawl are responsible for preparin8 the Report of the Trustees and the financhil statements in accordarbce with applicable law and United Kingdom Accounting Standar(ls (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 the income and expenditure of the charitable company for that period. In preparing ih05e financial statements, the Tmstees are required to.. select suitable accounting policies and then apply them consistently: obseThe the methods and principles in the Charity SORP,. make judgement5 and estimates that are reasonable and prudent,. state whether applicable UK Accounting Standards have been followed, 5ubje¢t to any dep8rtures disclosed and explaifted in the financial statements.. prepare the financial siaiements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial posilion of the charitable company and to enable thern to ensure that the fnancIal statements comply with the Companies Act 2006. They are also responsible for 5afeEuarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other IrgUIar1ties. STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS So far as the Trustees are aware. there is no relevant information las defined by Section 418 of the Companies 20061 of which the charitable company's auditors are unaware, and each trustee has taken all the steps that they ouBht to have taken as a trustee in order to make them aware of any audit information and to establish that the charitable company's audiior$ 3re aware of that information. AUDITORS The auditors. Haysmacintyre LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report has been prepared in accordance wi(h the special provisions of Part 15 of the Companies Act 2ts relating to small companies. Approved by order of the Board of Trustees on 7 May 2024 and signed on its behalf by". Christopher Davison- Chair of Trustees 17
-CHALLENGEZ .PARTNERS CHALLENGE PARTNERS Independent auditorfs rep)rt to the members of Challenge Partners Opinion We have audited the financial statements of Challenge Partners for the year ended 31 August 2023 which ¢ornprise the Statement of Financial ActNlties. the Balance Sheet. the Statement of Cash Flows and notes to the financial statements. including a summary of signrficant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standords, including Financial Reportin8 Standard 102 The Finqnci(Jl Reporting Stondord opplicoble in the UK ond Republic of Irelond (United Kingdom Generalty Accepted Accounting Practice). In our opinlon, the finanaal statements: give a true and fair view of the state of the charitable company's affairs as at 31 August 2023 and of the chaTltable company'5 net movement in funds. including the income and expenditure, foi the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Companie5 Act 2(X)6. Basis for apinton We conducted our audit in accordance with Intemational Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the ALbditols responsibilities for the audil of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements 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 audit evidence we have obtained 15 sufficient and appropriate to proVe a basis for our opinion. Conclusions relating to going contem In auiliting the financial statements. we have concluded that the tmstees, use of the going concern basis of accovnttng in the preparation of the financial 5taternents is approprlate. Based on the work we have performed. we have not identified any material uncertairbties relating to events or conditions that. individually or collectivety. may cast significant doubt orb the charbtable company's abilitv to continue as a going concern for a period of at least twelve months from when the financial statement5 are authorised for issue. Our re5pon5ibilitie5 and the responsibilities of the trustees with SpeCt to going concern are described in the relevant sections of this report. Other information The trustees are responsible for the other information. The other information comprises the information included in the Report of the Trustees. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explKitly stated in our report. we do not express any form of assurance conclusion thereon. 18
CHALLENGEZ .ptxt21ffrJEt2S CHALLENGE PARTNERS Independent auditovs report to the members of Challenge Partners Continued Other informatlon Contlnued In connection with our audrt of the financial statements, our responsibility is to read the other information and, in doing so. consider whether the other information 15 rnaterially inconsistent with the financial statements or our knowledge obtained in the audit or othe1$e appear5 to be materialty misstated. If we identify such material inconsistencies or apparent material misstatements. we are required to determine whether there is a material misstatement in the financial statement5 or a material misstatement of the other information. If, based on the work we have performed. we contlude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regar(l. 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 Report of the Tru5tee5 Iwhich includes the strategic report and the directors. report prepared for the purposes of company lawl for the financial year for which the financial statements are prepared is con515tent with the financial Statements. and the strategic report and the (lirectors. report included within the Report of the Trustee5 have bee prepared in accordance with applicable legal requirement5. Matters on whlch we are required to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtairbed in the course of the audit. we have not identified material missiatements in the Report of the Trustees Iwhich irbcorporates the strategK report and the directors. report). We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if. in our opinion= adequate accountln8 records have not been kept by the charitable company.. or • the charitable company financial statements are not in reernent with the accounting records and returns- or certain distlosures of trustees, remuneration specified by law are not made,. or we have not received all the information and explanations we require for Ouf audit.. or the trustees were not entitled io prepare the financial statements in accordance with the Small companies. regime and take advantage of the small companies. exemptions in preparing the trustees, report and from the requirement to prepare a strategic report. Responsibilities of trustees for the financial statements As explained more fully in the tru5tee5' responsibilities statement set out on page 17 the trustees Iwho are also the directors of the charitable company for the purposes of company lawl are Sponsible for the preparation of the financial statements and for being satisfied that they give a Irue and fair view, and for SLtch internal control as the tru5tee5 determine is necessary to enable the preparation of financial statements Ihat are free from material misstatement. whether due to fraud or error. 19
-CHALLENGEZ .PARTNERS CHALiENGE PARTNERS Independent auditorfs report to the members of Challenge Partners Conilnyed Responsibilities of truslees for the financial statements continued In preparing the financial statements. the trustees are responsibk for assessing the charitable companrfs ability to continue as a going concern. disclosin& 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 rbo realistic alternative but to do so. Auditorfs responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material mi55tatement. whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance. but 15 not a 8uarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if. individually or in the aTeBate, they could reasonably be expected to influence the economic decisions of user5 taken on the basis of these financial 5taiemenis. Irregularities, bncludin8 fraud, #re instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above. io detect materi31 misstatements in respect of irregularities. including fraud. The extent to which our procedures are capable of detecting Irregularit5. including fraud is detailed below= Based on our understanding of the charitable company and the envrronment in which it operates. we identified that ihe principal risks of non-compliance with laws and regulations related and we considered the extent to which non-cornpliance might have a material effect on the financial statements. We also considered those law5 and regulations that have a direct impact on the preparation of the financial 5taternents such as the Companies Act 2(X)6 arbd the Charities Act 2011 and consider other factors such as payroll tax and 531e5 tax. We evaluated management's incentives and opportunitie5 for fraudulent manipulation of the financial statements (including the risk of override of controls). and determined ihal the principal risks were related to the completeness and cut-off of subscription and grant income. Audit procedures perfom)ed by the engagement team included: Inspecting correspondence with regulators and tax authorities,. Discussions with management including consideration of known or suspected instances of non- compliance with laws and regulation and fraud.. Evaluating management's controls designed to prevent and detect irregularities,. Identifying and testing journals. in particular journal entries posted with unusual account combinations. postbngs by unusual users or with unusujl descriptions- and Challenging assumptions and judgements made by management in their critical accounting estimate5. in particular ihe recognition of grarbt and subscrbption income. 20
CHAILENGEZ CHALLENGE PAIITNERS Independent auditorfs report to the Members of Challen8e Partner5 Continued Auditorfs responsibilities lor the audit of the financial statement5 continued Because of the inherent limitations of an audit, there is a risk that wewill not detect all irregularities. including those leading to a material misstatement in the fi.nancial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements. as we will be less likely to become aware of in5tance5 of non- compliance. The risk is also greater regarding irregularities occurrin8 due to fraud rather than error. as fraud inVoe$ inientional concealment. forgery. collusion. omission or misrepresentation. A furtherdescription of our responsibilities forthe audit of the financial statements is located on the Financial Reporting Council'5 website at.. www.frc.or audrtorsres nsibililies. Thbs description forms pan of our auditorfs report. Use of our report This report is made solely to the tharitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work ha5 been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permilted by law. we do not accept or assume responsibilily to anyone other than the charitable company and the charitable company's members. as a body, for OLbr audit work. for this report, or for the opinions we have formed. Vikram Sandhu (Senior Statutory Auditor) 10 Queen Street Place. London, EC4R IAG For and on behalf of Hay5macintyre LLP. Statutory Auditor London Date.. 9 May 2024 21
-CHALLENGEZ -PARTNERS CHALLENGE PARTNERS STATEMENT OF FINANCIAL AcfiviTIES FOR THE YEAR ENDED 31 AUGUST 2023 Note Vnrestrirted Restricted Total Funds Unrestricted Restrirted Total Funds Funds Fund5 2023 Funds Funds 2022 Income from.. Charitable xtivities Excellence for Everyone Network of Excellence Sirategic Business Development 2 Getting Ahead London Other income Total income 16,482 46.850 46,591 52,860 80,000 26,933 25,005 1 214 928 16.482 2.395.208 46.591 132,860 51,938 2 643 079 2.811.685 39.288 2,850.973 76.128 76.128 2.348.358 35,678 2 847 363 35.678 115 416 2 962 779 Expenditure on: Charitable activities Excellence for Everyone Network of Excellence 16,482 46.850 46.591 86.148 16,482 2,240,865 46.591 139.008 51.938 2,835.524 39.288 2,874.812 76.128 76.128 2.194.015 Strategic Business Development 3 Getting Ahead London Other Expenditure 52.860 26.933 25.C#)5 Total empenditure 2 835 524 115 416 2 950 940 2 273 808 221076 2 494 884 Net movement in lunds 11.839 11.839 417.359 154.343 16.1481 263.016 6.148 148.195 269,164 Total funds brought forward 417.359 Total funds carried lorward 13 429 198 429 198 417 359 417 359 The Statement of financial activities includes all gains and losses recognised in the year. All income and expenditure arise from continuing operations. 22
CHALLENGEZ CHAILENGE PARTNERS BALANCE SHEEf AS AT 31 AUGUST 2023 Registered Company number.. 08048330 Note5 2023 2022 FIXED ASSET5 Intangible assets Tangible a5setS 10,225 16,218 io 24,580 26.443 24,580 CURRENT ASS5 Debtor5 li 16.436 105,833 Cash at bank and in hand 1.750.607 1.341.036 1,767,043 1,446.869 CREDITORS: amOt$ falling due within one year 12 11,364,288) 11.054.090) NET CURRENT ASSETS 402,755 392.779 NEf ASSErs 14 429 198 417 359 FUNDS: Unre5tritted funds 14 429.198 417.3S9 Restricted funds 13.14 429 198 417 359 The financial statements were approved by the Board of Trustee5 on behalf by.. and were signed on its CJ Christopher Davison- Chair of Trustees 7 May 2024 23
(HALLENGEZ @PA CHALLENGE PARTNERS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2023 2023 2022 Cash Ilows from operating artivities: Nei cash provided by I (used in) 4)perating acti¥ities 423.196 1341.364} Cash flows from investing activities: Purchase of tangible fixed assets Net cash used in investing activities 113.6251 (13.625} 116,3711 116.3711 Increaselldecreasel in cash and cash equN3lents in the year 409.S71 1357.7351 Cash and cash equivalents at beginning of year 1.341.036 1.698,771 Cash and cash equivalents at end of year 1341036 RECONCILIATION OF THE NET INCOME TO NET CASH FLOW FROM OPERATlhlG ACTIVITIES 2023 2022 Net income per SOFA Adjustments for: Depreciation Decrea5ellincrea5el in debtors Increa5e/ldecrea5el in creditors Net cash provided by l {used in) operating activities 11.839 148.195 11,762 89.397 8.193 166.1681 1431.5841 310.198 423 196 Analysis of cash flow and net debt I September 2022 C•shflow 31 August 2023 Cash at bank and at hand 1.341.036 1341 036 409.571 1.750,607 1750 607 Total 24
-CHALLENGEZ .PARTNERS CHALLENGE PARTNERS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 I. ACCOUNTING POUCIES Basis of preparing the financial sLitements The financial statements of the charitable company, which is a public benefit entity under FRS 102. have been prepared in accordance with the Charities SORP IFRS 1021'Accounting and Reporting by Charities.. 5talement of Recommended Practice applicable to charities preparing their accounts irb accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective I january 20191,, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland. and the Companies Act 21]06. The financial statements have been prepared under the historical cost convention. Having reviewed the funding facilities available to the charity togetherwith the expected demand and proven high renewal rates across the network and the resvlting projected cash flows, the Board of Trustees have no material uncertainties with SpeCt to the going Con[ status of the organisalion and have a reasonable expectation that the charity has adequate resources to continue its activities for the foreseeable future. Accordingly. they continue to adopt the going concem basis in preparing the financial statements. Income All income is CogniSed in the Stalement of Financial Activities ISOFAI in the period to which it relates to. and that it is probable that the income will be received and the amount can be measured reliablv. Subscription fees that have been paid in full and specifically relates to the next financial year have been deferred. Expenditure Liabilities are recognised as expenditure as soon a5 there is a legal or constructNe obligation committing the charity to that expenditure. it is probable that a transfer of economic benefits will be required in settlement and the arnounl of ihe obligation can be measured reliably. Expenditure 15 accounted for on an accruals basis and has been classified under headings that aggregate all cost lated to the category. Where tosts cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the Use of resources. Allocation and apportionment of costs Support Costs are expendilure incurred directly in supporting charitable activities and are allocated to activities in proportion to the use of central services. Governance costs comprise costs involvinE the public accountability of the charity and its cornpliance wbth regulation and good practice. Pensions Defined contribution pension plan A defined contribution plan is operated for its employees. A defined contribution plan is a pension plan under which Challenge Partners pays fixed contribution5 into a separate entity. Once the contributions have been paid, Challenge Partners has no further payment obligations. The contributions are recognised as an expense in the 50FA when they fall dve. Amounts not paid are shown in accrvals as a liability in the Balance sheet. The assets of the plan are held separately from the Challenge Partners in independently administered fund5. 25
. CHALLENGEZ Di CHALLENGE PARTNERS 140TES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 {continuedl I. ACCOUNTING POUCIES Icontinuedl Intangible assets Intangible assets are initialty recogni5ed at cost. After retognition. under the cost model. intangibles assets are measured at cost less any accumulated amortIsatTr and any accumulated impairrnent105ses. The estimated useful lives range as follows: Website Development 3 years straight line At each reporting date an assessment is rnade as to whether there is any indication of impairment. If such in(lication exists, the recoverable amount of the a55et is determined which is the higher of it5 fair value le55 costs to sell and its value in use. An impaimient loss is recognised where the carrying amount eXed5 the recoverable amount. The assets residual valves. useful lives and omortisation method5 are reviewed and adjusted prospectively if appropriaie, or if there is an indication of a signrficant change since the last reporting date. Tangible fixed assets Tangible fixed a55ets are stated at cost less accumulated depreciation and accumulated impairment1055es. Depieciation is provided at the following annual rates Trn order to write off each tangible fixed asset over its estimated useful life. Fixtures and fittin85 and equiprnent 4 years stra4ght line The a55ets' residual value5, Useful lives and depreciation methods are reviewed and adjusted prospectivelv if appropriate, or if there is an indication of a significant change since the last reporting date. The capitalisation policy is to capitali5e all individual assets which cost MO than £500. Fund accounting Unrestricted fund5.' General funds are available for use at the discretion of the Trustees in furtherance of the charitable objectives of the charity. Designated funds represent funds set aside by the Trustees in order to fund specrfic projects. Restricted funds are to be used in accordance with the specific restrictions imposed by ihe donors. The aims and use of restricted funds are set out in the notes to the financial statement5. Income is recognised against related expenditure as it is realised. H•re purchase and leasing cornmitments Renta15 paid under operating leases are charged to the SOFA on a strai8ht-line basis over the period of the lease. 26
CHALLENGEZ .PAG21fNEt2S CHALLENGE PARTNERS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 {continuedl I. ACCOUNTING POLICIES l¢Mtlnued) Jud8ments in applying accounting policies and key sources ol estimating un¢ertainty In the application of the accounting policies. the Trustees are required to make judgements, estimates and assumptions about the tarrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual resuk5 rnay differ from these estimates. The estimates and urhderlying assumptions a rev*wed on an ongoing bas. Revisions to accounting estimates are recognised in the period in which the estimate is revised rf the revision affects only that period. or in the period of the revision and future periods if the revision affected current and future periods. The main items wiihin the financial statements where judgements ond estimates have been made is in relation to the valuation of gifts kind Jnd provisions with respect to trade debtors. 27
. CHALLENGEZ pllt21ffriE61S CHALLENGE PARTNERS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 (continued) 2. INCOME FROM CHARtTABL£ ACTIVITIES SubsEription intome Grant Donated Other income 2023 Total income senfflces Network of Excellence Strategic Business Development Other income 2.632.685 218.288 2.850.973 76.128 35,678 2 962 779 76.128 35,678 Total income 2 632 685 Sub5CriPtion income Donated services Other 2022 Total income income Excellence for Everyone Network of Excellence 16.482 46.850 25.206 80.0(K) 25,(K)S 193 543 16,482 2,395.208 46.591 132.860 51,938 2 643 079 2,348.358 Strategic Business Development Getting Ahead London Other income 21.385 52.860 26,933 Total income CHARrrABLE ACTIVITIES COSTS Governance Oirect costs Support costs costs 2023 Totsl Network of Excellence 2,439,423 76,128 15,983 405.406 14,000 2,858,829 76,128 15,983 Strategic Business Development Other expenditurelpilot pro8rammes Total charitable artivities expenditure 2 531 534 2 950 940 Governance Dirert costs Support costs C05t5 2022 Total Excellence for Everyone Network of Excellence 13.186 1.894.461 46,591 86.148 3.296 334,854 16,482 2,240,865 46.591 11,SSO Strategic Bu5ine55 Development Getting Ahead London Other expenditurelPilot programmes Total charitable activities expenditure 52,860 10,388 139.008 41,550 2 081936 51.938 2 494 884 28
CHALLENGEZ CHALLENGE PARTNERS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Icontinuedl SUPPORT COSTS 2023 2022 Gr05s salarie5 246.010 29,375 9,416 6.857 3.836 3.103 3,274 4.711 26.206 31.270 9.405 11.538 3.748 11,762 4.895 233,464 29,631 10.023 5,483 2,882 3,011 2,358 1,149 26.498 34.856 5.918 7,575 3,190 8,193 5,873 21,294 401398 Employer'5 natiorbal insurance Pension Health insurance Insurance Telephone Postage. printing and stationery Sundries Rent IT costs Subscriptions Accountancy Marketing and design Depreciation Travel costs Recruitment Total support costs Gros5 Salaries, Employers, national insurance and Pension costs have been rèstated in 2022. GOVERNANCE COSTS 2023 2022 Auditor's remuneration 29
-CHALLENGEZ PARTNERS CHALLENGE PARTNERS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENOED 31 AUGUST 2023 Icontinuedl NET EXPENDITURE 2023 2022 Net expenditure is stated after charging-. Auditor's remuneration 14.(V) 11.762 26.206 11.550 8.193 26,498 Depreciation Operating leases- rent and service charge TRUSTEES, REMUNERATION ANO BENEFITS Dr Katherine Chhatwal 08E was paid a salary in respett of her role as Chief Executive and serves as a tTU5tee ex officio. Remuneration £120,LKK) £130.(KKJ 12022.. £110,(M)0 - £120,0(K)l. The payments have been authori5ed in accordance with the charivs governing document. Trustees. expenses Two Trustees We reirnbLTrrsed travel expenses of £24912022 - £446, three Tru5tee51 during the year. STAFF COSTS 2023 2022 Wages and salaries Social security costs Pension costs 1.101,744 122,442 49.178 1 273 364 905,585 106,327 41.886 1053 798 The total remuneratiorb of key mana8ement personnel in the year was £623,39012022= £623.4201. Key Management Personnel comprise.. Chief Executive Executive Director Managing Director Director of Finance and Operations Head of Finance and OperatK)ns Director of Partnership Development Head of Strateby and Innovation Head of Programmes. Networks and Evaluation Direttor of Digital Transformation -oined Juty 20231 (J'oined April 20231 IresEned January 20231 30
CHALLENGEZ CHALLENGE PARThIERS NOTES TO THE FINANCIAL STATEMETrU5 FOR THE YEAR ENDEO 31 AUGUST 2023 Icontinued) STAFF COST5 (conlinuedl The average monthly number of employees durin8 the year was as follows.. 2023 2022 No. No. Head count 25 24 Full time equivalent employees 24 23 The nuwnber of employees whose employee benefits exceeded £60,ThXI, with employer national insurance contributions of £46.59112022.' £45,6431= 2023 2022 No. No. £60.001- £70,000 £80,001- £90,000 £90.001- £100,(XKJ £IIO.C4JI - £120.QKKI £120.001- £130.0 Dr Katherine Chhatwal OBE was paid pension contributions in respect of her role as Chief Executive and serves as a trustee ex officio. INTANGIBLE ASSETS Website Developmenl COST Opening balance I September 2022 Addilion5 10,225 At 31 August 2023 OEPRECIATION Opening balance I September 2022 Charge for the year At 31 August 2023 NET BOOKVALUE At 31 August 2023 At 31 August 2022 31
-CHALLENGEZ TME •) CHALLENGE PARTNERS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Icontinued io. TANGIBLE FIXED ASSETS .Fixtures fittings and equipment COST Opening balance I September 2022 Additions 47.025 3.400 At 31 August 2023 DEPRECIATION Opening balance I September 2022 Charge for ihe year At 31 August 2023 22.445 11.762 NET BOOK VALUE At 31 August 2023 At 31 Au8USt 2022 ii. DEBTORS: AMOUNTS FALUNG DUE WITHIN ONE YEAR 2023 2022 Trade debtor5 1,488 2.953 11.995 100,072 Other debtor5 Prepayments 5.761 105 833 32
CHALLENGEZ CHALLENGE PARTNERS NOTES TO THE FINANCIALSTATEMENTS FOR THEYEAR ENDED 31 AUGUST 2023 Icontinuedl 12. CREDITORS: AMOUNTS FAWNG DUE WITHIN ONE YEAR 2023 2022 Trade creditors 34.660 80,707 Social security and other taxes 215,861 289,951 Other creditors 24,390 10,597 Deferred income 1,037,132 578.648 A¢¢fue(J expenditure 52.245 94,187 1054 090 13. RESTRICTED FUNDS I September 2022 31 August 2023 Incorne Expenditure Network of Excellence Strategic Business Development Total 39,288 76.128 115 416 139,2881 176.1281 115 416 I September 2021 31 August 2022 Income Expenditure Network of Excellence 46,850 16.482 46.591 146.8501 116,4821 146,5911 186.1481 125.0051 Excellence for Everyone Strategic Busine55 Development GettingAhead London Other 6.148 80.000 25.005 214 928 Total 33
-CHALLENGEZ .PARTNERS CHALLENGE PARTNERS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 l¢ontinuedl 13. RESTRICTED FUNDS (Continued) 2022123 Network of Excellence: The Permira Foundation provided funding via their 2021122 Lrferaft (tranche two) grant. for expert speaker5 at our Naiional Network meetings and for initiating an independent evaluatbon of our Jubilee Networks. The David and Elaine Potter Foundation provided fvnds to facilitate school collaboration via dvdital transfoTrnaiion within Challenge Partners. The Social Business Trust provided funds to enable the digital transfomiation of the Challenge Partners booking interface with schools and trusts. Strategic Busine55 Development: This fund relates to the development and 8rowih of Challenge Partners and was 5UPPOrted by The Social Business Trust. 2021122 Network of Excellence.. The Dulverton Trust provided resources for Knowledge Exchange as part of our Network of Excellence offer and enabled Challenge Partners to shine a brighter spotlight on disadvantage at o time when this has been needed most. Excellence lor Everyone: FundTrng from The Permira Foundaiion Lrferaft fund allowed Excellence for Everyone resources to be Tepackaged as an online toolkii and made available free of charge for those in our network. StrateBiC Business Development: This fund relates to the development and growth of Challenge Partners and was supported by The Social Business Tru51. Getting Ahead London (London Leadership Pool}: Provided a bespoke pro8ramme to aspiring head teachers in London in orderto better equip them to become future head teachers. 34
CHALLENGEZ .ptJt2fNEt2S CHALLENGE PARTNERS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 lcontinuedl 14. ANAiYSIS OF NEf ASSETS Unrestrirted Restrirted Total 2023 Funds 2023 Funds 2023 Fixed assets 26.443 26,443 1.767,043 11,364,288) 429 198 Current assets 1.767.043 11.364.288) 429 198 Current liabilities Net assets Unre5trirted Rertri¢ted Total 2022 Funds 2022 Funds 2022 Fixed asset5 24,580 1,446,869 11,OS4.0901 417 359 24.580 1.446,869 11.054.090) 417 359 Current a55et5 Current liabilities Net a55et5 Within unrestricted funds there is £127.82912022.. £nill of designated funds, relating to a grant from the PeTmira Foundation. where funds have been set aside to directly cover resource5 allocated to innovation and digital transformation in 2023124. $0 enhancing the value and impact of our offering and ensuring our internal 5ysiems can support our future growth. Is. RELATEO PARTY DISCLOSURE5 During the year, Challenge Partners received funds of £2.58012022= £4.7101 from STEP Academy Trusi for annual subscriptions. Dr Katherine Chhatwal OBE was a trustee of STEP Academy Trust until July 2023. During the year, Challenge Partners reiVed funds of £28.58912022.. £14.9781 from Lighthouse Schools, Partnership for annual subscrbptions and services. Mr Gary Lewis is the Chief Executive Officer and a trustee of Lighthouse Schools. Partnership. No other related party transartions took place during the year. Dr Katherine Chhatwal OBE was paid a salary in respect of her role as Chief Executive and setves as a trustee ex officio. Further detai15 can be seen in note 7 of the financial statements i& CHARITY STATUS The charity 1$ 3 prbvate company limited by guarantee and consequently does not have a share capital. Each member 15 liable to contribute arb amount not exceedin8 £1 towards the assets of the charity in the event of Ibquidation. 35