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2023-03-31-accounts

Charity registration number 1178433

FIRST UK

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

FIRST UK

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees V Bhargava
S Karger (Appointed 30 June 2023)
T Osborne (Appointed 30 June 2023)
Charity number 1178433
Principal address 7 Bell Yard
London
WC2A 2JR
Independent examiner Lopian Gross Barnett & Co
1st Floor Cloister House
Riverside, New Bailey Street
Manchester
M3 5FS

FIRST UK

CONTENTS

Page
Trustees' report 1 -22
Independent examiner's report 23
Statement of financial activities 24
Balance sheet 25
Statement of cash flows 26
Notes to the financial statements 27 -36

FOREWORD FROM THE FOUNDER

The surety of significant, multi-year funding from a vigilant, experienced impact investor was a welcome boon to the charity – and could not have been more timely. It has provided critical runway to rebuild the organisation post COVID ready to enact our new strategy focusing on targeting provision towards disadvantaged and less represented young people.

We’ve still a considerable way to go before take-off. Scaling impact will rely on us being empathic to the pressures within the UK education system - listening to teachers in particular – whilst ensuring we design a programme which deliverable at scale and effective in targeting.

It’s clearly not a simple ask. Walking around our events and talking to the young people involved – I am struck by the diversity and talent on display. The motivation of teachers. The support of industry volunteers. But we need more of it if we are to achieve the equivalent of 10% coverage (400+) in UK secondary schools within the next 24 months. I remain committed to ensuring the charity surrounds itself with the right people, resource and desire to get us there.

Vikrant Bhargava

Founding Chair of Trustees November 2023

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MESSAGE FROM THE CEO

2022-23 was a welcome year of recovery buoyed by an experienced investor injecting £750K over the next 3 years – testament to the charity’s high-growth, high-impact potential.

Publication in April 2022 of our inaugural 3-year strategy signified intent to move from STEM enrichment for the masses to targeted provision for those who stand to benefit most - reinforced by a new targeting framework.

The decision to not actively chase growth in 2022-23 paid dividends – allowing focus on cleansing our database of less-committed organisations, improving retention and return, rebuilding the HQ team, conserving funds and refining our regional operating model ready to scale. Whilst participation remained static – the positive trends around inclusion continued – with 41% of participants identifying as girls or non-binary and a further 37% from ethnically diverse backgrounds.

Our volunteering pool goes from strength to strength – with 226 employees from leading UK companies donating time as mentors and event staff, and 100% of them stating they would recommend us to a colleague. By Spring 2023 we had delivered four regional tournaments and scheduled our first UK Championship at the University of Cambridge. New trustees were onboarded, and a relaunched website articulated a clearer value and impact proposition putting us on track to achieve our target of 10% of UK secondary school penetration by September 2025.

Notwithstanding, the charity’s most acute challenge remains; how to scale in an environment where teachers have limited (no) capacity, competing curriculum priorities and exam pressures - where enrichment is a nice to have, but not essential? If it were as easy as issuing a robotics kit, signposting some educational content, providing an industry mentor and putting on a few inspirational events – we’d be out of business. We’ve a way to go yet.

Ed Cervantes-Watson

CEO November 2023

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OBJECTIVES AND ACTIVITIES

Who we are

We're FIRST UK, a charity established in 2018, fuelled by robots and industry mentors, empowering young people to explore, challenge and grow into innovators who will take on tomorrow's challenges.

Mission

To make STEM less intimidating, more diverse and inclusive, empowering young people to make informed choices about their future.

Vision

A world where young people are empowered to explore, challenge and grow into innovators who will take on tomorrow's challenges.

In a sentence what do you do?

We equip 14-18 year olds with the technical know-how and soft skills to succeed by connecting them with industry mentors to work in business teams designing and building robots to compete in tournaments.

Values

Our team and trustees embody these values to drive our mission

FIRST[®] UK is a charity registered in England and Wales (1178433) trading as FIRST[®] Tech Challenge UK Registered address: 7 Bell Yard,, London WC2A 2JR

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In addition to its core programme, the charity:

FIRST Tech Challenge

FIRST Tech Challenge offers young people of secondary school age (12 to 18) the opportunity to design, build and code a robot to take on a global challenge.

The programme is facilitated by a teacher and supported by a mentor from industry. Teams comprise up to 12 learners occupying multiple roles linked to real-world careers.

An online learning platform provides structured content and learning resources co-created by educators, industry, and young people. The platform also homes training content for volunteers whilst facilitating team and mentor networking. Having built a robot teams participate in competitions to earn awards and accreditation.

FIRST[®] UK is a charity registered in England and Wales (1178433) trading as FIRST[®] Tech Challenge UK Registered address: 7 Bell Yard,, London WC2A 2JR

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Targeting

The programme seeks to impact young people who typically have less exposure or engagement with STEM subjects at school, with a particular focus on driving participation and inclusion amongst those who;

In 2023 we published our first formal targeting framework intended to help the schools and youth organisations we work with identify those who they feel will benefit most from our intervention.

Selection

Charitable funding in the form of kit bursaries, travel awards and supply teacher cover are made available to all non-fee paying DfE registered educational establishments. To access funding, the team lead (usually a teacher) completes a short statement detailing how they will identify young people to participate, how they will implement the programme and what they hope to achieve. This information is overlaid with demographics data – including social deprivation indexing and pupil premium (free school meals).

Mentors

Once registered the team can access a mentor from industry through a pool of DBS-checked volunteers who are often sourced via the Charity’s industry partners, STEM Ambassador hubs and the school network (parents, partners, suppliers). These volunteers have access to training (online and in person) but are not contractually engaged by the charity who acts solely as a facilitator.

The programme

FIRST Tech Challenge commences in September when the global challenge is announced. Informal local practices take place in the autumn term hosted by champion schools or universities, building towards the regional competition in spring term held at inspirational venues often linked with industry. Successful teams then progress to the national championships in June.

FIRST[®] UK is a charity registered in England and Wales (1178433) trading as FIRST[®] Tech Challenge UK Registered address: 7 Bell Yard,, London WC2A 2JR

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In addition to how robots perform in competition, teams are judged on values they have demonstrated off the field – earning awards for community outreach, teamwork, innovation, critical thinking, resilience, fundraising etc. Teams document their progress in an engineering notebook and achieve nationally recognised accreditation - including British Science Association CREST Awards (Gold) and Engineering Development Trust Industrial Cadets (Gold).

FIRST[®] UK is a charity registered in England and Wales (1178433) trading as FIRST[®] Tech Challenge UK Registered address: 7 Bell Yard,, London WC2A 2JR

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CRITERIA TO ASSESS SUCCESS

The charity’s Theory of Change co-created with the Behavioural Insights Team in 2019. It continues to evolve and will be revisited in 2023-24 with experts from Pro Bono Economics as well as trustees and advisors.

ACTIVITIES

The primary activity of the charity is provision of FIRST Tech Challenge which, typically provides for around 16 weeks in term time (30 to 40 hours per young person) of rich, continuous development through mentor supported, scaffolded learning using robotics kits and competitions.

The charity’s core activities span:

  1. Equipment provision – supply of robotics kits, hardware and software

  2. Grant-making – issuing bursaries supporting participation (e.g. kits, travel, supply cover)

  3. Content – development of curriculum mapped, industry linked learning resources

  4. Volunteering – recruitment, support, quality assurance of mentors and event volunteers

  5. Events – delivery of local, regional and national tournaments

  6. Training – CPD for teachers, mentors and volunteers (online and offline)

FIRST[®] UK is a charity registered in England and Wales (1178433) trading as FIRST[®] Tech Challenge UK Registered address: 7 Bell Yard,, London WC2A 2JR

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  1. Marketing - in support of acquisition of teams, mentors and volunteers

  2. Evaluation – research into the efficacy of STEM enrichment

  3. Influencing – seeking to drive systemic change and policy making

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

GRANT MAKING POLICY

Inclusion

The charity focuses its interventions and support where it is needed most – seeking to drive diversity in STEM, raising aspirations and supporting social mobility through:

The charity offers direct financial support in the form of robotics kit bursaries – each kit (cost c£1,000) contains the hardware and software to power a team of up to 12 learners to participate. Kits are reusable year on year – providing an embedded robotics provision to the setting.

In recognition of acute funding challenges across the state education system – the charity also makes available small grants (typically between £250 and £500) supporting teams requiring assistance with travel or supply teacher costs to attend events.

Funding eligibility

Financial support is only available to non-fee paying DFE/OFSTED registered schools, SEND and Alternative Providers. Youth and Community Groups with a Safeguarding Policy will be considered on a case-by-case basis.

Funding criteria

The charity supports organisations who serve disadvantaged communities, drive social mobility, and promote inclusion and diversity – using objective measures of disadvantage such as Pupil

FIRST[®] UK is a charity registered in England and Wales (1178433) trading as FIRST[®] Tech Challenge UK Registered address: 7 Bell Yard,, London WC2A 2JR

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Premium/Free-School Meals, social deprivation indexing, and additional context provided during the application process to assess the level of financial support offered.

In 2023 the charity introduced a new EDI pledge and supporting targeting framework which all participating organisations must proscribe to.

Funding Process

Applications for financial support are assessed on a rolling basis throughout the year and organisations are typically informed of the outcome within 14 days of submitting their application. A grant award letter is issued to successful applicants detailing the amount, duration, and terms.

USE OF VOLUNTEERS

The charity relies heavily on volunteers from industry to act as mentors to teams and support event delivery. 296 volunteers registered to support the charity between 01 Apr 2022 and 31 Mar 2023.

FIRST[®] UK is a charity registered in England and Wales (1178433) trading as FIRST[®] Tech Challenge UK Registered address: 7 Bell Yard,, London WC2A 2JR

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A key USP is the interaction between role models and young people. The aspiration is that mentors engage with teams typically weekly from September until March – in person or remotely as agreed between the team and the mentor. The charity facilitates this relationship through:

Volunteer recruitment

It is critically important that volunteers are drawn from a variety of diverse backgrounds with the experience, knowledge, and interpersonal skills to connect with young people. The charity works closely with the HR functions of its industry partners (many of whom have dedicated EDI functions) - as well as leading volunteering organisations (such as STEM Learning, WISE, Computing at School hubs) to signpost positive volunteering opportunities. It also seeks to activate volunteers from within the school community (parents, suppliers, partners).

The charity is continually expanding the number of available volunteers and ensuring they are suitably on-boarded to the programme, able to access training and adequately vetted.

The charity seeks to maintain a pool of at least double the number of active volunteers to participating teams – ensuring that every team has access to at least one mentor and events can be staffed adequately. It is hoped that as the volunteering community become more proficient and confident – they will become advocates to help the organisation scale, fundraise, and drive impact.

Volunteer training

To maintain the quality of its volunteers the charity provides guidance on the skills required in various roles, access to e-learning content, and offers in-person (and online) training – which it is seeking to accredit formally as CPD.

Volunteer performance

Teams are regularly canvassed for feedback on the quality of mentor interactions. Mentors, teachers and volunteers are also surveyed. Such reporting enables the charity to maintain a dynamic, real-time picture of the volunteering experience, identify potential areas of concern or improvement.

FIRST[®] UK is a charity registered in England and Wales (1178433) trading as FIRST[®] Tech Challenge UK Registered address: 7 Bell Yard,, London WC2A 2JR

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CHARITABLE ACHIEVEMENTS

Overview

2022-23 was a positive year of recovery for the charity – finally shaking off the inertia, uncertainty and challenging operating conditions created by a global pandemic.

The 3-year strategy published in early 2022 articulated a clear intent to move from enrichment for the masses, to targeted provision for the most deserving.

Buoyed by a new investment of £750K over 3 years, secured in June 2022, the charity was able to commence rebuilding of the core team – recruiting two new programme officers in summer 2022 and setting it on a pathway to regain the ground lost to COVID.

Highlights

Over the course of 12 months from April 2022 to Mar 2023 we:

Participation

Capacity constraints (and financial resources) meant the charity could not seek active growth in new teams in 2022-23 – nonetheless it was still able to serve 97 teams, impacting around 1,000 young people from less represented and disadvantaged backgrounds – similar to the previous year. This was in line with our stated strategic intent as per our 2021-22 annual report to:

FIRST[®] UK is a charity registered in England and Wales (1178433) trading as FIRST[®] Tech Challenge UK Registered address: 7 Bell Yard,, London WC2A 2JR

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The charity will not actively seek team growth in 2022-23 – partly in recognition of supply

chain issues with kits, but largely due to focusing on implementing a well-defined targeting model and a sustainable funding pipeline

Using the window to build partnerships at the right level (SLT) with Schools, MATs, University Widening Participation Offices and other networks – which ensures the buy-in and lead-time to properly target and embed the programme

● Income generation

Securing multi-year investment to fuel the three-year strategy (and beyond)

● Partnerships

Identifying (and converting) more strategic partnerships which will allow us to achieve our strategy and mission – sooner and better”

Inclusion

Whilst participation remained static the trends related to diversity and inclusion remain encouraging:

FIRST[®] UK is a charity registered in England and Wales (1178433) trading as FIRST[®] Tech Challenge UK Registered address: 7 Bell Yard,, London WC2A 2JR

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FUNDRAISING

The charity achieved 150% growth YoY in income (£241K to £598K) largely due to the support of a new funder who, following extensive due diligence, determined the charity presented a compelling impact investment.

The funder committed £750K over 3 years against specific investment criteria primarily focused on scaling impact against a precise mechanism for targeting.

Two additional donations of £97K and £100K were received from long standing industry supporters with the remainder of in year grants were sub £50K.

The charity ended 2022 with no restrictions on account and increased reserves to 3 months.

The founding Chair of Trustees continued to provide gift in kind to the charity in the form of HR, legal and financial support - significantly reducing head office operating costs.

Sustainability

The charity continued to run on 3.5 FTE until August 2022 limiting fundraising capacity and requiring it to prioritise stewardship and renewal of existing funding relationships.

The charity needs to expand and diversify revenue streams. There remains strong appetite in the corporate sector to fund interventions which address the STEM skills gap and talent pipeline.

Trusts and Foundations are a hugely untapped potential funding source. The charity is now more evolved state (strategy, improved governance, positive anecdotal impact data, proven operating model, strong scaling potential etc) lo pursue such funding routes. Such funders are also likely to engage in less volatile, multi-year commitments which are harder to extract from corporate donors.

The charity must bolster its fundraising capacity in 2023 and will seek to secure sufficient funding to recruit a dedicated fundraising lead to support the CEO with income generating activity. It must also seek to replace/augment £250K per annum by end 2024 as unrealistic to expect a renewal of the current 3-year grant in 2025.

Reviewing the funding model

As part of the new strategy, it is anticipated the charity will explore moving towards a model of generating more traded income beyond the current nominal registration fee. This might include charging for provision in some instances (or at least clearly articulating the value), supporting schools

FIRST[®] UK is a charity registered in England and Wales (1178433) trading as FIRST[®] Tech Challenge UK Registered address: 7 Bell Yard,, London WC2A 2JR

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to access third party grants to fund participation, piloting the monetisation of programme elements such as holiday clubs, and exploring the role private schools may play in supporting state school participation.

Any adjustment to the revenue model would link inextricably to the charity’s targeting and inclusion frameworks – to incentivise and support the right participation. The rationale to avoid fully funded charitable provision to secure buy in and commitment remains strong.

VAT RELIEF

The charity maintains its classification with HMRC as a business - allowing it to charge VAT on the cost of participation whilst recovering VAT on cost of supply. This unique status allows the charity to reduce its operating costs by recovering all VAT paid to suppliers in relation to provision of its charitable activities – making the organisation a more attractive donor investment opportunity.

INVESTMENT PERFORMANCE

The charity currently does not carry out any investment activity.

RESERVES POLICY

The charity operates a 3 month reserve policy. This covers the core operating costs of the charity (permanent staff salaries, NI, pensions and any potential redundancy liability), alongside fixed costs such as rent, subscriptions, and contractual liabilities falling due.

The policy does not seek to cover flexible or variable costs related to provision nor any noncontractual liabilities. The reserves are formulated from unrestricted funds.

FACTORS OUTSIDE THE CHARITY’S CONTROL AFFECTING OBJECTIVES

School environment

Some moderators identified for FIRST Tech Challenge are common to other programmes taking place in schools, such as school funding, capacity for change, efficiency of internal communication, and the fit of the programme with the school’s senior leadership team (SLT) priorities. Teacher confidence in delivering FIRST Tech Challenge, and the ages of the young people engaging, are participant-related moderators. Factors specific to this programme include the teacher’s skill in supporting expeditionary learning (e.g., whether they are open to embracing experiential learning versus maintaining a more traditional teaching style), the ability of the team to bond and work together productively, and the quality of the industry mentor, including their approach to delivering the programme.

FIRST[®] UK is a charity registered in England and Wales (1178433) trading as FIRST[®] Tech Challenge UK Registered address: 7 Bell Yard,, London WC2A 2JR

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Self-selection bias

The selection of young people to take part in the programme is of paramount importance. Schools have differing localised needs and differ in how they approach this: some ask young people to volunteer, while others specifically select those who are less engaged and represented in STEM education. This affects the extent to which the programme reaches its target audience and will affect the degree of change one would expect to see in terms of empowered, informed decision-making around STEM. In other words, a high degree of self-selection would mean the programme is only engaging those students who are already interested in STEM.

In countering this, the charity focuses the bulk of its geographic operations in areas of regional deprivation and educational investment areas. It’s funding criteria prioritises organisations with intakes of:

  1. Young people in low-income households or neighbourhoods (determined by % free school meals, Education Investment Area proximity, Indices of Multiple Deprivation)

  2. Young people who do not have a developed interest in STEM subjects OR are underrepresented in STEM

Funded organisations are then expected to ensure that at least 50% of participants;

Clear guidance and supporting content to leads around team composition and promoting inclusion.

The charity is also testing different delivery models including partial full (year group) cohort and hard to reach settings.

Political landscape

The government’s stance in key policy areas such as education, employment and digital skills create for a challenging operating and fundraising landscape – exacerbated by a lack of funding available because of COVID expenditure and a looming cost of living crisis.

FIRST[®] UK is a charity registered in England and Wales (1178433) trading as FIRST[®] Tech Challenge UK Registered address: 7 Bell Yard,, London WC2A 2JR

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A well-documented STEM skills crisis is likely to remain front and centre of the nation’s Industrial Strategy and is reinforced by comprehensive reports by Learned Societies into the state of STEM education and careers in the UK. Credible research such as Gatsby Benchmarks are setting the bar for educators, schools, and industry to meet.

A looming general election (before end 2024) may provide opportunity for the charity to establish new relationships with a government who has a fresh perspective and motivation on attacking the crisis.

Resilience

The charity’s provision aligns well with priority attainment measures including Gatsby Benchmarks and initiatives such as the National Centre of Computing Education. Implementation of T-Levels and changes to the OFSTED framework and Welsh curriculum towards a more expeditionary based learning approach – all favour the charity’s positioning.

The desire of UK industry to take an active role in driving a talent pipeline of future-ready young people equipped with the technical knowledge and life skills for the workplace makes the charity’s core offering highly compelling – both as an investment opportunity, as well as a rich employee engagement platform.

COVID-19

Whilst the pandemic has left the headlines, it’s legacy remains. Schools chasing a two-year backlog of missed educational opportunities will continue to impact the appetite and capacity to engage with STEM enrichment programmes or anything not deemed core curricular. The charity must respond proactively and sensitively to the needs of schools, teachers and young people whilst it continues to offer a valuable enrichment opportunity.

RISK MANAGEMENT

The Trustees have a duty of due diligence to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The charity’s risk register is maintained by the CEO and reviewed regularly at Trustee meetings. The Trustees are satisfied that these arrangements, combined with the annual review of financial controls and the reserves policy, will ensure that the organisation can continue to fulfil its charitable objectives.

Insurance

The charity works with specialist insurers (Ansvar) to ensure its activities are comprehensively insured. All risks are declared with accurate participation numbers and projections supplied annually.

FIRST[®] UK is a charity registered in England and Wales (1178433) trading as FIRST[®] Tech Challenge UK Registered address: 7 Bell Yard,, London WC2A 2JR

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Events

A core part of the charity’s provision is the delivery of robotics tournaments locally in schools, colleges, and universities; regionally in industry locations, museums, military bases and conference centres; and nationally in stadiums. These events attract significant numbers of young participants, teachers, mentors, and volunteers occupying multiple roles. The scale of participation and relative complexity means there is inherent risk which is under constant review. The charity conducts site visits and risk assessments which are made available to participants, volunteers, and staff.

Safeguarding young people

Ensuring young people have a positive and safe experience participating in FIRST Tech Challenge is paramount. Whilst the ultimate responsibility for Safeguarding lies with the participating organisation the charity has agreed in consultation with trustees and external independent consultants (SAFECic) additional measures to ensure the protection of young people:

Safeguarding employees

Charity employees (and trustees) who may come into frequent contact with young people hold enhanced DBS checks which are renewed annually and are automatically enrolled into the DBS online checking service. All staff undertake Safeguarding Children and Young People, FGM and PREVENT training which is recorded and maintained in an online HR portal. This training is renewed bi-annually. The CEO (Safeguarding Lead) and appointed Deputy Lead hold Level 2 Safeguarding Certification. The charity adopts a safer recruitment practice – which includes declarations on its job adverts, screener questions and at least two references one of which must be conducted by phone.

FIRST[®] UK is a charity registered in England and Wales (1178433) trading as FIRST[®] Tech Challenge UK Registered address: 7 Bell Yard,, London WC2A 2JR

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Safeguarding mentors

FIRST UK does not contract, employ nor formally place mentors with teams. It encourages participating organisations and mentors themselves to ensure a valid DBS certificate is held and signposts routes such as the STEM Ambassador programme where DBS checks and safeguarding training can be completed for free. The charity on occasion may elect to work with its industry partners to achieve DBS checking of employee volunteers either via the employer or via the charity’s preferred DBS provider.

Safeguarding volunteers

Volunteers and all event attendees must register with FIRST UK acknowledging receipt of the charity’s safeguarding policy. Volunteers are provided with a safeguarding brief on the day by the designated charity safeguarding lead. Details of the nominated safeguarding lead and reporting process are issued to all volunteers and displayed at events.

Fit for the future

With no legacy systems, processes, or data the charity has focused on using tech to build the infrastructure to scale at pace, sustainably including:

Relevance

The STEM enrichment landscape is a saturated one – with a myriad of competing offerings delivered by commercial organisations, charities, not for profits, learned societies and government. Provision varies hugely in terms of quality, impact, evidence base, duration, cost, geographical reach, target audiences, delivery models. This environment provides acute challenges in creating cut through and projecting the quality and impact potential of the provision.

The charity must therefore develop and maintain a stand-out value proposition which:

FIRST[®] UK is a charity registered in England and Wales (1178433) trading as FIRST[®] Tech Challenge UK Registered address: 7 Bell Yard,, London WC2A 2JR

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Within this context the charity must deploy innovative and fresh marketing and communications to create a tone of voice which resonates. It must use technology to capture and report on data underscoring its impact. It must continue to identify and build critical friendships which allow it to amplify its share of voice and accelerate the pace at which it achieves its mission. The pandemic has further compounded challenges engaging and operating in schools.

Independence

Whilst FIRST UK is an independent registered charity in England and Wales, the organisation’s primary product FIRST Tech Challenge is licenced for a small (<£4,000) fee from a global not for profit based in the USA – FIRST Inspires. This presents many benefits such as being part of a global movement, leverage of the brand, access to programmatic content, competitions (including the global championship), and a vast network of existing industry partners and foundations who have long supported FIRST . At the same time this may create dependencies, exposure, or tension such as:

Whilst significant in potential impact, the perceived risk level is deemed very low by Trustees. The relationship with FIRST Inspires has always been positive; the Chair of Trustees is a close friend of the founder of FIRST Inspires and sits on the Board of FIRST Global. Both organisations are established as not for profits with a shared mission. FIRST Inspires have been generous with advice and support as FIRST UK have established themselves. FIRST Inspires direct funding in the form of sub-grants whilst making introductions to industry partners interested in supporting the UK. This of course also helps FIRST Inspires grow its global footprint and service its relationships with corporate multinationals – the overall relationship is a symbiotic one.

The Trustees, along with the CEO will continue to review the charity’s position particularly with regards to naming, licensing arrangements, IP, offering and product diversification to ensure it remains competitive and able to conduct its activities fully without impediment or concern.

FIRST[®] UK is a charity registered in England and Wales (1178433) trading as FIRST[®] Tech Challenge UK Registered address: 7 Bell Yard,, London WC2A 2JR

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Retention and attrition

The charity must retain a close eye on return rates and repeat participation as it seeks to scale. It continues to prove incredibly challenging, costly and time consuming to acquire teams and organisations. Identifying the key protagonist with capacity and appetite to champion the programme is difficult. Obtaining SLT buy-in and supporting the link teacher to recruit a diverse range of young people along with a mentor to deliver the programme is even harder. Loss of this individual to a new role or different school invariably risks the programme discontinuing in the setting. The charity must:

During 2022-23 the charity established a new regional hub model engaging partners and schools who hold strong ties within the local community to support acquisition, delivery and growth.

STRUCTURE, GOVERNANCE, MANAGEMENT

The charity was registered on 18 May 2018. The charity is a company with no share capital and the governing document is the 'Foundation' Constitution of a Charitable Incorporated Organisation whose only members are its trustees.

KEY PERSONNEL

Chief Executive Officer

Founding CEO, Ed Cervantes-Watson was appointed by the trustees in March 2018 bringing a wealth of operational and strategic experience built within the commercial and third sectors. As Head of Innovation at Cancer Research UK, the country’s largest fundraising charity, his role spanned both income generation - responsible for developing award-winning products; and core purpose - disrupting the charity’s funding model and driving collaboration on a global scale.

This blended experience provides the charity with a dynamic CEO skilled in product development, fundraising, customer journeys, events, marketing, communications, insight, evaluation, governance, finance, and HR. The charity has developed enduring funding relationships, weathered a global pandemic, built a team of capable operators, implemented and iterated a scalable operating model and established a reputation as a high-growth, high impact potential organisation.

FIRST[®] UK is a charity registered in England and Wales (1178433) trading as FIRST[®] Tech Challenge UK Registered address: 7 Bell Yard,, London WC2A 2JR

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Fig 1.0 FIRST UK org structure as of 31 Mar 2023

Culture

From the outset the charity has developed a culture which puts employee well-being front and centre. At the heart of this is a truly flexible working environment owned and managed by employees. Prepandemic this typically saw employees work flexible hours including at least one day per week remotely - reducing travel costs and the stress of commuting. The approach empowers employees to own their workload, creating a relaxed yet highly productive environment built on trust.

The charity now facilitates a hybrid working model where employees work from home or

independently from a workspace. They also come together typically once per week for a team coworking day at different venues. This model is flexible, highly cost effective, provides variety and choice whilst maintaining team dynamic and wellbeing.

Trustees

The founding Trustees, who are also the directors for the purpose of company law, and who served during the period and up to the date of signature of the financial statements were:

V Bhargava

N Bapna Resigned 30 June 2023

M Eyre Resigned 30 November 2023

S Kargner Appointed on 30 June 2023

T Osborne Appointed on 30 June 2023

FIRST[®] UK is a charity registered in England and Wales (1178433) trading as FIRST[®] Tech Challenge UK Registered address: 7 Bell Yard,, London WC2A 2JR

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None of the trustees has any beneficial interest in the company. All Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

In January 2023 the charity embarked on a recruitment round to bolster and refresh its Board of Trustees. The charity intends to augment its new trusteeship with an Advisory Board by January 2024 – helping enact our strategy to make STEM less intimidating and more inclusive by;

“I just wanted to say how much an amazing initiative this has been for our school, increasing female participation in computing and design technology at GCSE from 4 to 40% in just one year”

- Toby Osborne, Head of D&T Ferndown Upper School

FIRST[®] UK is a charity registered in England and Wales (1178433) trading as FIRST[®] Tech Challenge UK Registered address: 7 Bell Yard,, London WC2A 2JR

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FIRST UK

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF FIRST UK

I report to the trustees on my examination of the financial statements of First UK (the charity) for the year ended 31 March 2023.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.

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

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

Nathaniel Davidson BA(Hons) ACA Lopian Gross Barnett & Co

1st Floor Cloister House Riverside, New Bailey Street Manchester M3 5FS

Dated: .........................

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FIRST UK

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income from:
Donations and legacies
3
490,966
79,313
Charitable activities
4
28,405
-
Other income
5
(166)
-
Total income
519,205
79,313
Expenditure on:
Raising funds
6
8,365
3,309
Charitable activities
7
359,098
76,004
Total expenditure
367,463
79,313
Net income/(expenditure) and
movement in funds
151,742
-
Reconciliation of funds:
Fund balances at 1 April 2022
85,243
-
Fund balances at 31 March
2023
236,985
-		 Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
570,279
83,111
148,474
28,405
10,248
-
(166)
-
-
598,518
93,359
148,474
11,674
576
-
435,102
82,190
181,772
446,776
82,766
181,772
151,742
10,593
(33,298)
85,243
74,650
33,298
236,985
85,243
-		 Total
2022
£
231,585
10,248
-
241,833
576
263,962
264,538
(22,705)
107,948
85,243

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

24

FIRST UK

BALANCE SHEET

AS AT 31 MARCH 2023

Notes
Fixed assets
Tangible assets
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within
one year
14
Net current assets
Total assets less current liabilities
The funds of the charity
Unrestricted funds		 2023
£
174,623
67,507
242,130
9,738		 £
4,593
232,392
236,985
236,985
236,985		 2022
£
5,556
83,363
88,919
10,784		 £
7,108
78,135
85,243
85,243
85,243

The financial statements were approved by the trustees on .........................

.............................. V Bhargava Trustee

25

FIRST UK

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2023

Notes
Cash flows from operating activities
Cash absorbed by operations
17
Investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Net cash used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
£
£
(14,175)
(1,681)
(1,681)
-
(15,856)
83,363
67,507		 2022
£
£
(15,375)
-
-
-
(15,375)
98,738
83,363

26

FIRST UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Charity information

First UK is a Charitable Incorporated Organisation in England and Wales.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011 and “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 UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

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

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

1.2 Going concern

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

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used and are set out in grant agreements issued by the funder, agreed to by the charity and reported against when the funds have been expended or the grant term has concluded.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

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

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

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

27

FIRST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Cost of generating funds comprise the costs associated with attracting voluntary income.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be directly attributed to particular headings; they have been allocated to activities on a basis consistent with the use of resources.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings 25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

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

1.8 Cash and cash equivalents

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

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

28

FIRST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

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

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

29

FIRST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2023
2023
£
£
Donations and gifts
125,500
-
Grants
365,466
79,313
490,966
79,313
Grants receivable for
core activities
Coronavirus Job
Retention Scheme
-
-
Other General Grants
-
-
Other
365,466
79,313
365,466
79,313		 Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
125,500
17,971
80,000
444,779
65,140
68,474
570,279
83,111
148,474
-
-
43,474
-
65,140
25,000
444,779
-
-
444,779
65,140
68,474		 Total
2022
£
97,971
133,614
231,585
43,474
90,140
-
133,614

4 Income from charitable activities

Equipment sales
Registration fees
Analysis by fund
Unrestricted funds		 Major
Events
2023
£
7,079
21,326
28,405
28,405		 Major
Events
2022
£
3,196
7,052
10,248
10,248

5 Other income

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Net gain on disposal of tangible fixed assets (166) -

30

FIRST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

6 Expenditure on raising funds

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Fundraising and publicity
Other fundraising costs 8,365 3,309 11,674 576 - 576

'Branding’ covers the costs of educational content design and producing collateral for events.

7 Charitable activities

Programme
delivery
costs
2023
£
Staff costs
230,084
Depreciation and impairment
4,030
(Surplus)/ deficit on disposal of fixed
assets
(3)
Equipment - Robotics & Technical
-
Computer software and maintenance
5,373
Dues and subscriptions
3,701
Office equipment
4,132
Office insurance
3,418
Direct Costs
-
Postage & Stationery
908
Other
2,620
Travel and Subsistence
13,674
Storage & Distribution
-
Rent and service charges
3,595
271,532
Share of support costs (see note 8)
-
Share of governance costs (see note 8)
55,412
326,944		 Direct
activity
2023
£
-
-
-
41,437
717
-
-
-
12,355
1,256
250
-
29,573
-
85,588
-
-
85,588		 Major
events
2023
£
-
-
-
-
-
-
-
-
22,570
-
-
-
-
-
22,570
-
-
22,570		 Total
2023
£
230,084
4,030
(3)
41,437
6,090
3,701
4,132
3,418
34,925
2,164
2,870
13,674
29,573
3,595
379,690
-
55,412
435,102		 Total
2022
£
193,937
3,923
1
30,058
2,277
4,125
-
3,183
1,168
1,223
868
161
11,910
1,170
254,004
1,067
8,891
263,962

31

FIRST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

7
Charitable activities
Analysis by fund
Unrestricted funds
326,944
Restricted funds
-
326,944
For the year ended 31 March 2022
Unrestricted funds
79,630
Restricted funds
-
79,630
8
Support costs allocated to activities
Legal & professional
Professional fees
Governance costs
Analysed between:
Other costs
Governance costs comprise:
Accountancy
Legal, professional, freelance and consultancy
Sundry
Bank charges & exchange losses		 31,476
54,112
85,588
2,560
181,772
184,332		 678
21,892
22,570
-
-
-		 (Continued)
359,098
82,190
76,004
181,772
435,102
263,962
82,190
181,772
263,962
2023
2022
£
£
-
892
-
175
55,412
8,891
55,412
9,958
55,412
9,958
2023
2022
£
£
237
-
52,688
5,687
35
-
2,452
3,204
55,412
8,891		 (Continued)
359,098
82,190
76,004
181,772
435,102
263,962
82,190
181,772
263,962
2023
2022
£
£
-
892
-
175
55,412
8,891
55,412
9,958
55,412
9,958
2023
2022
£
£
237
-
52,688
5,687
35
-
2,452
3,204
55,412
8,891
263,962
82,190
181,772
263,962
2022
£
892
175
8,891
9,958
9,958
2022
£
-
5,687
-
3,204
8,891

9 Trustees

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

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

32

FIRST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

10 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs
The number of employees whose annualremuneration was more than £60,000
is as follows:
£150,001 to £160,000
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
Aggregate compensation		 2023
Number
6
2023
£
202,685
18,407
8,992
230,084
2023
Number
1
2023
£
155,000		 2022
Number
4
2022
£
189,783
-
4,154
193,937
2022
Number
-
2022
£
47,362

11 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

33

FIRST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

12
Tangible fixed assets
Cost
At 1 April 2022
Additions
Disposals
At 31 March 2023
Depreciation and impairment
At 1 April 2022
Depreciation charged in the year
Eliminated in respect of disposals
At 31 March 2023
Carrying amount
At 31 March 2023
At 31 March 2022
13
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
14
Creditors: amounts falling due within one year
Trade creditors
Accruals and deferred income		 Fixtures and
fittings
£
15,692
1,681
(468)
16,905
8,584
4,030
(302)
12,312
4,593
7,108
2023
2022
£
£
164,845
3,062
9,071
1,669
707
825
174,623
5,556
2023
2022
£
£
7,603
198
2,135
10,586
9,738
10,784

34

FIRST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

15 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 April Incoming Resources At 31 March
2022 resources expended 2023
£ £ £ £
General funds 85,243 519,205 (367,463) 236,985
Previous year: At 1 April Incoming Resources At 31 March
2021 resources expended 2022
£ £ £ £
General funds 74,650 93,359 (82,766) 85,243

35

FIRST UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

16 Related party transactions

Transactions with related parties

During the year the charity entered into the following transactions with related parties:

Recharged expenditure Recharged expenditure
2023 2022
£ £
Entities in which a trustee is also a director - 6,999
There were no further related party transactions which require disclosure.
17 Cash generated from operations 2023 2022
£ £
Surplus/(deficit) for the year 151,742 (22,705)
Adjustments for:
Loss on disposal of tangible fixed assets 166 -
Depreciation and impairment of tangible fixed assets 4,030 3,923
Movements in working capital:
(Increase)/decrease in debtors (169,067) 1,733
(Decrease)/increase in creditors (1,046) 1,674
Cash absorbed by operations (14,175) (15,375)
18 Analysis of changes in net funds

The charity had no material debt during the year.

36