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I F:\NLC\CK J\Children Our Ultimate Investment (UK) NL53099\WP\2008\Acccunts 2008 (SORP 2005).x1s8Ju1y2008.x1s

CHILDREN: OUR ULTIMATE INVESTMENT (U K) LIMITED

FINANCIAL STATEMENTS YEAR ENDED 29 FEBRUARY 2008

REGISTERED CHARITY NUMBER: 1099782 REGISTERED COMPANY NUMBER: 4001308

2 6 AUG 2008 Wri-.. .

c0mp(.~ta~uay~ ~ " a~~iS #t~N +rx'~

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CHILDREN: OUR ULTIMATE INVESTMENT (UK) LIMITED

BOARD OF DIRECTORS

S Adcock J Martin M Shaw F Steel M Blake

COMPANY SECRETARY

D Whitmore

COMPANY REGISTRATION NO. REGISTERED OFFICE & PRINCIPAL ADDRESS

4001308 47 Bermondsey Street LONDON SE1 3XT

1099782

REGISTERED CHARITY NO. AUDITOR

Maclntyre Hudson LLP Chartered Accountants Euro House

1394 High Road London N20 9YZ

BANKERS

Barclays Bank plc Southwark branch 29 Borough High Street London SE1 1 LY

F:\NLC\CK J\Children Our Ultimate Investment (UK) NL53099\WP\2008\Accounts 2008 (SORP 2005).xIs8JuIy2008.xIsAccounts 2008 (SORP 2005).xls8July2008.xlslnf & Ad

1=

CHILDREN: OUR ULTIMATE INVESTMENT (UK) LIMITED THE DIRECTORS' REPORT YEAR ENDED 29 FEBRUARY 2008

Page 1

The Board of Directors, who are also the Trustees of Children:Our Ultimate Investment (UK) Limited for the purposes of charity law, have pleasure in presenting their report together with the audited financial statements of the Charity for the year ended 29 February 2008. Children: Our Ultimate Investment (UK) Limited is a company limited by guarantee. PRINCIPAL ACTIVITIES The principal activity of the Charity is to foster and support the education, health, opportunity and development of children and young people.

CONSTITUTION OF THE CHARITY

The Charity is a company limited by guarantee and is governed by the Rules and.Regulations of the Memorandum and Articles of Association incorporated on 24 May 2000. The power of appointing and removing Directors and Trustees from the Board is vested in the Board of Directors and Trustees. Membership is non-transferable and ceases upon death. A maximum of seven and a minimum of two members are required at all times.
The Charity has the power to invest monies, not immediately required for the furtherance of its objectives, in such investments, securities or property as it thinks fit, subject to a statutory requirements. Currently the Charity has not invested any monies for investment, but has surplus money transferred to a fixed rate deposit account with Barclays Bank Plc.

The board of directors administers the charity. The board meets regularly and there are subcommittees covering strategy and finance which meet more regularly. Operational directors are appointed by the board directors to manage the day to day operations of the charity. These operational directors have delegated authority, within the terms of delegation approved by the directors, for issues relating to finance, employment and training. CHARITY OBJECTIVES

The Charity's principal objectives are as follows: To foster and support the education, health, opportunity and development of children and young people.
To meet these objectives the Charity continues to promote, initiate, develop and carry out education and training and arrange and provide assistance at lectures, seminars and classes for children and young people. Its primary activity is the Teens & Toddlers project and the Teens & Toddlers Sustainability Replication Programme. There has been no change in the Charity's objectives during the year. The Charity continues to be run by the Board of Directors.

REVIEW FOR THE YEAR INCORPORATING ACHIEVEMENTS AND PERFORMANCE Progress and Key Achievements this Year COUI UK continued adhering to its four year business plan, compiled with the ARK Foundation, our major funder. We consistently met all of the ARK performance targets in terms of number of teenagers reached and number of Teens & Toddlers Sustainability Replication Programmes sold. The post Sustainability Programme Service provision has proven to be challenging, as most local authorities are not yet ready to deliver the programme without the support of COUI. COUI UK is currently delivering programmes to 13 Local Authorities. Our business plan includes a final target of reaching 19 Local Authorities by 2009 and we are confident of achieving this. In all of COUI UK's Programmes there are about 100 Teens & Toddlers Facilitators, 35 of them being In House Staff Senior Facilitators. The Facilitator Training has been accredited ( by ABC, who is recognised by the National Youth Agency) as a Diploma in Youth Work Level 3 and continues to be successful. With the Teens & Toddlers project, for the National Award in Interpersonal Skills, we continue to have nearly 100% Pass Rate.

Central Government Endorsement COUI UK continues to have the endorsement of central government. The DSCF recently awarded a grant for a three year post of national Development Manager. COUI is growing from being a small charity to a medium sized one - a transition that requires careful and conscious managing. Additionally, we are being proactive in preparing for the end of ARK's funding in 2009. In terms of both match funding for programmes and to cover core costs, it is apparent that we will continue to need some external funding. To address this we have raised our sights for larger grant opportunities and applied for them; actively worked to raise the Public Relations profile of COUI and researched organisations to support us with a fundraising strategy and plan.

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CHILDREN: OUR ULTIMATE INVESTMENT (UK) LIMITED THE DIRECTORS' REPORT YEAR ENDED 29 FEBRUARY 2008

Page 2

REVIEW OF THE YEAR (continued) Advisory youth Panel COUI UK now has established a youth Panel of Teens & Toddlers graduates who will advise us and help to design a programme of training peer educators to deliver PSHE. This training programme will enable disadvantaged young people to promote quality personal and social health education (PSHE) in schools, become leaders in their community for those interested in making a difference and for some to become involved in COUI's longer term management and development. It has always been the vision of COUI to support vulnerable at risk young people along a continuum of their development, starting with Teens & Toddlers, continuing to support their positive steps forward though to young adulthood, culminating in young leaders support and training. Diversification of service offerings COUI UK has expanded its clinical services this year by promoting counselling in schools. We are currently placing COUI counsellors in eight secondary schools and are offering and running anger management and anti-bullying programmes for schools. Research Three years funding from the Esmee Fairbairn foundation which enabled COUI UK to hire a full time Research Officer has proven to be successful with the Research Officers continuing to evaluate the efficacy of the Teens & Toddlers project. Grants COUI UK is grateful to have received from the Jack Petchey Foundation 86,540, a grant of 158,000 from the DCSF, 20,000 from the Garfield Weston Foundadon and 105,000 from The City Bridge Trust. We continue to be immensely grateful to ARK for the continuing support of core funding and for the expansion of COUI UK. Plans for the Future COUI UK will continue to follow our four year Business Plan and to meet our performance targets for number Of programmes delivered and number of at risk young people reached. In 2008, we will be writing a new business plan for 2009. We have commissioned Charity Works to create a fundraising strategy and plan, as well as assisting us in seeking corporate sponsorship. In our effo rts to raise our public relations profile, Teens & Toddlers received the Young People Now national recognition for best Preventative Work Award and was highly commended for the Being Healthy Award. In preparation for the end of the ARK foundation funding in 2009, we have been proactive. We have expanded the operational team, bringing on more expertise (in strategic planning and corporate sponsorship); joined E-Politix, a parliamentary internet site; joined a Payroll Giving scheme on the advice of the Board; shifted to submitting grant applications for larger amounts of funding (Big Lottery, DCSF, NPC); and are in the final stages of making a promotional DVD.

Conclusion It has been a successful year for COUI UK and one of rapid expansion, supported by the Business Plan and core funding from the ARK Foundation. We are being proactive in preparing for the end of funding from our major benefactors through additional fundraising, raising the national profile of COUI UK and through diversifying our programmes. Annual research and evaluation continues to demonstrate that Teens & Toddlers has a positive impact with the vulnerable and at risk young people served by our programmes.

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CHILDREN: OUR ULTIMATE INVESTMENT (UK) LIMITED THE DIRECTORS' REPORT YEAR ENDED 29 FEBRUARY 2008

Page 3

Rese rves Policv The Board of Directors has agreed the following rese rves policy regarding the level of rese rves it should maintain in order to meet the needs of the Charity: The Charity needs reserves in order to: * . Finance fixed assets and day to day activities; Enable the Charity to cope financially during times of below average income and cover operational overheads and salaries for at least six months; Have additional resources available to cope with revenue and capital requirements arising in the next few years to fulfil its charitable activities.

The present level of reserves and bank facilities are considered adequate to cover the present day to day working capital requirements. In sett ing its budgets, level of charges for se rvices and in negotiating the level of funding for grants, the Charity takes account of the need to maintain adequate reserves. When reviewing annual budgets and accounts and pe ri odic management accounts and cash flows; the Board of Directors monitors whether the level of income is appropriate to establish and maintain reserves in line with this policy. This policy will be reviewed at least annually. As of 29 February 2008 accumulated funds were: 256,521 (2007: 295,665), of which 61,305 (2007: 214,642) were unrestricted funds and 195,216 (2006: 81,023) were restricted funds. Management of Risk The Board of Directors regularly review the major risks to which the Charity is exposed arising from its operations and the environment. Systems are regularly reviewed and procedures put in place to minimise these risks. Board of Directors The Directors who served the Charity during this year were: M Shaw S Adcock J Martin F Steel M Blake

These financial statements comply with the Charity's governing document, the Statement of Recommended Practice 'Accounting and Reporting by Charities' (SORP 2005) and the Companies Act 1985. Auditor The resolution to reappoint Maclntyre Hudson LLP as auditors for the ensuing year will be proposed at the next meeting of the Board of Directors. Small comnanv provisions This report has been prepared in accordance with the special provisions for small companies under part VII of the Companies Act 1985.

Signed on behalf of the Board of Directors

D Whitmore Company Secretary

Approved by the Board of Directors on .. Al ~ --1 I 0 $

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!,,

CHILDREN: OUR ULTIMATE INVESTMENT (UK) LIMITED STATEMENT OF BOARD OF DIRECTORS' RESPONSIBILITIES YEAR ENDED 29 FEBRUARY 2008

Page 4

Company law and Charity law requires the Board of Directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the surplus or deficit of income of the Charity for that year. In preparing those financial statements, the Board of Directors are required to:

select suitable accounting policies and then apply them consistently;

make judgements and estimates that are reasonable and prudent;

state whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements;

prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Charity will continue in operation.

The Board of Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the financial statements comply with the Companies Act 1985, the Statement of Recommended Practice for Accounting by Charities and the Charity's governing document. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as each and every director is aware: there is no relevant audit information of which the auditors are unaware; and

each and every director has taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

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Page 5 CHILDREN: OUR ULTIMATE INVESTMENT (UK) LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHILDREN: OUR ULTIMATE INVESTMENT (UK) LIMITED YEAR ENDED 29 FEBRUARY 2008

We have audited the financial statements of Children: Our Ultimate Investment (UK) Limited for the year ended 29 February 2008 which comprise of the Statement of Financial Activities and Income and Expenditure Account, the Balance Sheet and the related notes. These financial statements have been prepared under the historical cost convention and the accounting policies set out therein.

This report is made solely to the company's members, as a body, in accordance with Section 235 of the Companies Act 1985. Our audit work has been undertaken so that we might state to the 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 permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. RESPECTIVE RESPONSIBILITIES OF THE BOARD OF DIRECTORS AND THE AUDITORS

The Board of Directors of Children: Our Ultimate Investment (UK) Limited for the purposes of charity law), are responsible for preparing the Directors Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) as set out in the Statement of Board of Directors' Responsibilities. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland). We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Companies Act 1985. We also report to you if, in our opinion, the information given in the Directors' Report is consistent with the financial statements, if the charity has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding directors' remuneration and transactions with the charity is not disclosed.

We read other information contained in the Directors' Report, and consider whether it is consistent with the audited financial statements. We consider the implications for our audit report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to any other information beyond that referred to in this paragraph.
BASIS OF OPINION

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the charity's circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance as to whether the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

OPINION In our opinion the financial statements:

- give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state of the charity's affairs as at 29 February 2008 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended: and
- have been properly prepared in accordance with the Companies Act 1985.

In our opinion the information given in the Directors' Report is consistent with the financial statements.

"A, q Q ~.. (- ('T

Euro House 1394 High Road London N20 9YZ Date: 31 July 2008 Macintyre Hudson LLP Chartered Accountants and Registered Auditor

F:WLC\CK J\Children Our Ultimate Investment (UK) NL53099\p\Final accounts129 Februa ry 200829 February 20085

CHILDREN: OUR ULTIMATE INVESTMENT (UK) LIMITED

Page 6

STATEMENT OF FINANCIAL ACTIVITIES AND INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 29 FEBRUARY 2008

2008 Unrestricted
Notes INCOMING RESOURCES Funds

2008 Restricted
Funds

2008
Total

2007
Total

Incoming resources from charitable activities: Grants Programme fees

1 1

'191,667 191,667

190,031 345,539 535,570

381,698 345,539 727,237

55 7 ,179 173,664 730,843

Voluntary & other income: Investment income

Other incoming resources

TOTAL INCOMING RESOURCES RESOURCES EXPENDED Charitable activities Governance costs TOTAL RESOURCES EXPENDED

1 1

19,889 2,628
214,184

535,570

19,889 2,628
749,754

6,442 3,885
741,170

2 2

359,708 7,813

421,377 -

781,085 7,813

490,786 10,217

367,521

421,377

788,898

501,003

NET INCOMING/(OUTGOING) RESOURCES FOR THE YEAR BEFORE TRANSFERS

(153,337)

114,193

( 39,144)

240,167

Transfers between funds

NET INCOMING/(OUTGOING) RESOURCES FOR THE YEAR BEING NET INCOMEI(EXPENDITURE) FOR THE YEAR OTHER RECOGNISED GAINS AND LOSSES Gains/(losses) on investments: Realised gains/(losses) on investments Unrealised gains/(losses) on investments ( 153,337) 114,193 (39,144) 240,167

NET MOVEMENT IN FUNDS

BALANCES BROUGHT FORWARD AT 1 MARCH 2007 BALANCES CARRIED FORWARD AT 29 FEBRUARY 2008

(153,337)

114,193

( 39,144)

240,167

214,642

81,023

295,665

55,498

61,305

195,216

256,521

295,665

There were no other recognised gains or losses. All operations are continuing.

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CHILDREN: OUR ULTIMATE INVESTMENT (UK) LIMITED BALANCE SHEET AT 29 FEBRUARY 2008

Page 7

2008 Notes

2007

22,535

FIXED ASSETS Tangible assets

15,740

CURRENT ASSETS Debtors Cash at bank and in hand

297,678 753,838 1,051,516

42,461 573,754 616,215

CREDITORS: Amounts falling due. within one year

(810,735)

(343,085)

NET CURRENT ASSETS

240,781

273,130

NET ASSETS

256,521

295,665

FUNDS Unrestricted General fund Restricted fund 61,305 195,216 256,521 214,642 81,023 295,665

These financial statements have been prepared in accordance with the special provisions of Part VII of the Companies Act 1985 relating to small companies, the Financial Reporting Standard for Smaller Entities (effective January 2007), the Charities Act 1993 and in accordance with the Statement of Recommended Practice 'Accounting by Charities' (SORP 2005). 29 lo~ (0%

Approved by the Board of Directors on

Director

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CHILDREN: OUR ULTIMATE INVESTMENT ( UK) LIMITED STATEMENT OF ACCOUNTING POLICIES YEAR ENDED 29 FEBRUARY 2008

Page 8

The principal accounting policies which are adopted in the preparation of the financial statements are set out below:

BASIS OF ACCOUNTING The financial statements have been prepared under the historical cost convention and in accordahce with the Financial Reporting Standard for Smaller Entities (effective January 2007). The financial statements also comply with the Statement of Recommended Practice for Accounting by Charities (SORP 2005), the Charities Act 1993 and the Companies Act 1985. INCOME The Charity's income is derived from three main sources; grants, programme fees and investment income. Recognition of grant income is on a receivable basis in conjunction with the grant rules and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2007).

Where grant payment is received in advance of projects being performed, the Charity recognises, as deferred income, a liability equal to the amount received, representing its obligations to carry out the project. That liability is reduced and reported as income as the project is performed. Where entitlement occurs before the grant is received the income is accrued. Programme fees are recognised according to the period that the course covers and is on an accruals basis. Donations are included in income when received. Income from investments is recognised on a receivable basis. CASH FLOW STATEMENT The Board of Directors have taken advantage of the exemption in Financial Reporting Standard No. 1 from including a cash flow statement in the financial statements on the grounds that the Charity is small. FIXED ASSETS All fixed assets are initially recorded at cost. DEPRECIATION Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Expenditure is recognised on an accruals basis as a liability is incurred. 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 allocated directly to such activities and those costs of an indirect nature necessary to support them. Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and any costs linked to the strategic management of the Charity.

All costs are allocated between the expenditure categories of the SoFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis as set out in note 2. OPERATING LEASES Rentals on operating leases where substantially all of the risks and rewards of ownership remain with the lessor are charged to the SoFA on a straight line basis over the period of the lease.

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CHILDREN: OUR ULTIMATE INVESTMENT (UK) LIMITED NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 29 FEBRUARY 2008 Unrestricted Funds 1 INCOMING RESOURCES Incoming resources from charitable -act ivities: Grants ~ ARK grant income Esmee Fairbairn Foundation Equitable Charitable Trust grant income Charles Hayward Foundation grant income Department of Health grant income Jack Petchey grant income Restricted Funds Total 2008

Page 9

Total 2007

191,667 191,667 -

77,083 54,583 11,487 46,876 190,031 21,170 32,978 28,041 3'7,732 1 2 ,773 46,418 42,562 33,495 3,850 23,750 34,015 6,917 5,000 6,167 5,833 4,400 438 345,539

268,750 54,585 11,487 16,876 381,698, 21,110 32,978 28,041 31,732 12,773 46,418 42,562 33,495 3,850 23,750 34,015 6,917 5,001 6,161 5,833 4,400 438 345,539

448,777 61,328 25,000 10,000 6,710 5,364 55'7,179 54,443 46,667 17,183 13,254 26,862 4,500 3,960 3,750 3,045

Prooraln ne fees
Brent local authority Islington local authority Greenwich Stand Alone Camden Stand Alone Southwark social service Haringey Stand Alone Lincolnshire local authority Northamptonshire ocal authority Greenwich local authority Harlow Essex Redcar Cleveland Noith Yorkshire Manchester SP Kent SP Sutton local authority Northumberland local authorily Wasall local authority Geoffery Chaucer CS Greenford High School -

173,664

Total incoming resources from charitable activities

191,667

535,570

727,237

730,843

Investment income:
Bank interest receivable Other income: Donations Consultancy Fees HMRC online filing rebate 19,889 19,889 6,442

28 2,450 150 2,628 214,184 Sustainability projects

~ --'-5 -35,57C Stand Alone Projects

28 2,450 '150 2,628 749,754 Total 2008

35 3,600 250 3,885 741,170 Total 2007 F.

TOTAL INCOMING RESOURCES

2 RESOURCES EXPENDED Costs directly attributable to activities Operational directors' costs & NIC Teens and toddlers facilitators and assistants Teens and toddlers staff salaries & NIC Teens and toddlers programme management salary & NIC Core staff salaries Redundancy pay feens and toddlers clinical services counselling teens and toddlers research costs Esrnee Fairbairn research officer Core business development manager Core in house training Teens and toddles Department of Health strategy costs Teens and toddlers facilitator training Teens and toddlers coach hire and travel TPeris and toddlers course materials Teens and toddlers supervision & quality assurance Teens and toddlers national award accreditation Teens and toddlers nursery expenses ARK academy fees Teens and toddlers others Teens and toddlers report writing and evaluation Teens and toddlers Esmee Fairbairn research cost Teens and toddlers mobile phone costs Teens and toddlers internal moderator (NCFE) Teens and toddlers postage & delivery Teens and toddlers certificate ceremony award Teens and toddlers room hire 117,230 139,886 5,918 68,752 59,773 2,476 14,953 16,765 30,165 23,901 10,334 8,000 52,797 7,933 5,088 6,165 5,107 1,225 5,756 1,800 1,554 858 5,010 235 24,798 34,440 1,251 14,544 12,607 524 3,163 38 5,056 536 867 1,924 1,260 1,084 311 57 286 115 142,028 174,326 7,169 83,296 72,380 3,000 18,116 16,803 30,165 28,957 10,334 8,000 53,333 8,800 7,012 7,425 6,191 1,225 5,756 1,800 1,865 915 5,296 350 119,381 78,624 44,010 42,539 24,118 15,430 14,532 9,892 7,575 6,9 23 6,710 5,800 4,734 4,456 4,258 3,873 2,851 2,700 1,021 400 345 321 220 219 177 -

591,681 102,861 694,542 401,108 Carried forward to page 10 Costs have been allocated against each activity directly where possible or otherwise based upon the number of projects and pro rata to the number of months that each project fell into the financial year.

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CHILDREN: OUR ULTIMATE INVESTMENT (UK) LIMITED NOTES TO THE FINANCIAL STATEMENTS(continued) YEAR ENDED 29 FEBRUARY 2008 Sustainability projects Stand Alone Projects

Page 10

2 RESOURCES EXPENDED (CONTINUED) Support costs allocated to activities Brought down from page 9
Rent Depreciation Loss on disposal Office supplies Advertising and marketing Telephone Recruitment expenses Equipment hire & purchase Travel and subsistence Insurance Subscriptions and memberships Branding, printing and reprographics Bank charges

Total 2008

Total 2007

591,681 36,858 12,311

258 7,649 2,095 4,342 3,178 3,198 2,230 3,339 3,898 2,137

102,86 1

694,542 36,858 12,311 258 7,649 2,095 4,342 3,178 3,197 2,230 3,339 3,898 2,137
93 319 120 1,497 1,685 1,172

401,108
32,436 10,988 7,381 6,042 4,303 3,969 3,371 3,292 3,097 2,764 2,589 2,037 1,555 1,100 1,097 1,017

IT software and web development Other

Electricity Postage and stationery Legal and professional fees Criminal Records Bureau Accountancy

93 319 120 1,497 1,685 1,172 165

165

425 2,215

Resources expended before governance costs

Governance costs Audit Legal and professional fees

678,060 6,000 1,813 7,813

103,026

781,086 6,000 1,813 7,813

490,786

5,500 4,717

Governance costs

10,217

TOTAL RESOURCES EXPENDED

685,873

103,026

788,899

501,003

Costs have been allocated against each activity based upon the number of projects and pro rata to the number of.months that each project fell into the financial year. 3 TOTAL RESOURCES EXPENDED

Staff Costs

Depreciation

Other Costs

Total 2008

Total 2007

Charitable activities

385,111

12,311

383,664

Governance costs 385,111

12,311

7,813
391,477

781,086 7,813 788,899

490,786 10,217

501,003

2008
Included within charitable activities are consultancy services and staff wages and salaries totalling: 385,111

2007 262,945 262,945

385,111

The numbers of employees or consultants whose emoluments or payments for consultancy services for the year fell within the following bands were:

2008 60,000 to 69,999

1

2007

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CHILDREN: OUR ULTIMATE INVESTMENT (UK) LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 29 FEBRUARY 2008

Page 12

5 TANGIBLE FIXED ASSETS Fixtures & Fittings COST At 1 March 2007 Additions Disposals At 29 February 2008 DEPRECIATION At 1 March 2007 Charge for year On disposals At 29 February 2008 NET BOOK VALUE At 29 Februa ry 2008 At 1 March 2007 9,576 14,055 6,164 8,480 15,740 22,535

Equipment

Total

19,207 431

18,576 6,318 _~849 23,045

37,783 6,749 849 42,6L3.

19,638

5,152 4,910 10,062

10,096 7,401 (616) 16,881

15,248 12,311 __ (616) 26,943

The fixed assets are used by the Charity for the furtherance of its objectives. 2008 Debtors Other debtors Prepayments and accrued income 270,393 7,500 19,785 297,678 2007 11,538 7,500 23,423 42,461

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2008 Trade creditors Other taxation and social security Accruals Deferred income 60,214 12,725 9,595 728,201 810,735 2007 12,638 8,307 16,400 305,740 343,085

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CHILDREN: OUR ULTIMATE INVESTMENT (UK) LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 29 FEBRUARY 2008

Page 11

3 TOTAL RESOURCES EXPENDED ( continued) 2008 2007 F-

Other costs:
Course and nursery costs Office supplies Building costs Donations Training Travel Advertising and marketing Printing, postage and stationery Legal and professional Audit Accountancy IT software and web development Insurance Telephone Equipment hire & purchase Loss on disposal of fixed asset Miscellaneous 300,523 7,649 135,332 7,381

38,355
18,334 2,230 2,095 1,685 2,985 6,000 319 3,339 4,342 3,197 258 166 391,477

33,536
12,723 3,292 6,042 1,097 5,734 5,500 2,215 2,037 3,097 4,303 3,371 1,410 227,070

The average number of employees during the year, calculated on the basis of full time equivalents, analysed by function was: Direct charitable 11 11

DIRECTORS' AND OFFICERS' REMUNERATION AND EXPENSES

The Charity reimburses expenses incurred by all of the directors which are wholly and exclusively in connection with fulfilling their duties as officers of the Charity. The amounts involved are immaterial. No director received remuneration from the Charity for their services as a director. Consultancy and other payments made to operational directors in respect of expert services and duties are inculded in note 3. This included negotiating grant contracts, actively promoting the Charity and handling the day to day running of the Charity's affairs. All payments were made on normal commercial terms.

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CHILDREN: OUR ULTIMATE INVESTMENT (UK) LIMITED NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 29 FEBRUARY 2008 8 RESTRICTED FUNDS Transfer Esmee Jack Dept. of Utilised/ between Fairbairn Petchey Health Released funds

Page 13

1 March 2007 Restricted funds: Esmee Fairbairn research fund Brent local authority Islington local authority Camden stand alone Southwark social seivice Haringey stand alone Lincolnahire Northamptonshire local authority Greenwich local authority Harlow Essex Redcar Cleveland North Yorkshire Manchester SP Kent SP Sutton local authority Northumberland local authority Wasall local authority Geoffrey Chaucer CS Greenford High School

Frog. fees

ARK

29 Feb 2008

8,261 1,315

26,064 41,334 4,049

21,170 32,977 28,042 37,732 12,773 46,418 42,562 33,495 3,850 23,750 34,015 6,917 5,000 6,167 5,833 4,400 438

50,320 26,763 -

28,172 6,915 10,238 9,260 -

11,487 -

3,606 39,664 3,606 -

( 2 8,172) (21,170) (40,728) (29,35'7) (29,700) (16,379) (53,049) (53,876) (41,497) (44,398) (44,118) (2,255) (2,302) (3,705) (5,833) (4,400) (438)

7,425 18,270 69,753 30,020 44,971 3,850 6,115 1,384 4,662 6,304 2,462 -

81,023 345,539

77,083

54,585

46,876

11,487 (421,377)

195 216

All of the restricted funds represent monies received that have been given specifically towards the advancement of the Teens and Toddlers programme. The Teens and Toddlers programme focuses on addressing the problem of the high rate of teenage pregnancy in Britain and tackling the issues that put teenagers on the path to pregnancy. Teens and Toddlers takes at risk teenagers on a 12 week journey of exploration built around twice weekly sessions with small children in a safe nursery environment. The nursery experience is developed through classroom support sessions focusing on child development, All surpluses on grants relating to projects that have come to an end and where all conditions in respect of the grant have been met have been transferred to unrestricted funds. Grants where there are no longer any conditions for their specific use have been transferred to unrestricted funds accordingly.

9 RELATED PARTY TRANSACTIONS No transactions with related parties were undertaken such as are required to be disclosed under Financial Reporting Standard 8, other than those included in note 4.

10 COMMITMENTS OPERATING LEASES At 29 February 2008 the Charity had the following annual commitment under non-cancellable operating leases:

2008 Operating leases which expire Within one year Within two to five years 30,000 30,000
The Charity is committed to rent of 30,000 per annum to March 2009. 11 COMPANY LIMITED BY GUARANTEE

2007 F 30,000

30,000

Each member of the Charity has guaranteed to contribute up to 1 in the event of a winding up.

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CHILDREN: OUR ULTIMATE INVESTMENT (UK) LIMITED SUMMARY FINANCIAL STATEMENT YEAR ENDED 29 FEBRUARY 2008

The following pages do not form part of the statutory financial statements which are the subject to the independent auditors' report

on page 5.

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CHILDREN: OUR ULTIMATE INVESTMENT (UK) LIMITED AUDITORS' STATEMENT ON THE SUMMARY FINANCIAL STATEMENT YEAR ENDED 29 FEBRUARY 2008

Page 15

Independent Auditors' statement to the Board of Directors of Children: Our Ultimate Investment (UK) Limited We have examined the summary financial statement of Children: Our Ultimate Investment (UK) Limited for the year ended 29 February 2008 as set out on page 16.

Respective Responsibilities of the Board of Directors and the Auditors The Board of Directors are responsible for preparing the summarised annual report in accordance with applicable United Kingdom law. Our responsibility is to report to you our opinion on the consistency of the summary financial statement within the summarised annual report with the full financial statements and Directors' Report and its compliance with the relevant requirements of section 251 of the Companies Act 1985 and the regulations made thereunder. We also read the other information contained in the annual report and consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the summary financial statement.

Basis of Opinion

We conducted our audit in accordance with Bulletin 1999/6 'The auditors' statement on the summary financial statement issued by the Auditing Practices Board. Our report on the company's full annual financial statements describes the basis of our audit opinion on those financial statements.

Opinion In our opinion the summary financial statement is consistent with the full financial statements and the Directors' report of Children: Our Ultimate Investment (UK) Limited for the year ended 29 February 2008 and complies with the applicable requirements of section 251 of the Companies Act 1985, and the regulations made thereunder.

ha a
Euro House 1394 High Road London N20 9YZ Date: 31 July 2008 Maclntyre Hudson LLP Chartered Accountants and Registered Auditor

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CHILDREN: OUR ULTIMATE INVESTMENT ( UK) LIMITED SUMMARY FINANCIAL STATEMENT STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 29 FEBRUARY 2008 2008 INCOMING RESOURCES Grants Programme fees Investment income Other incoming resources TOTAL INCOMING RESOURCES 381,698 345,539 19,889 2,628 749,754

Page 16

2007

557,179 173,664 6,442 __ 3,885 741,170

RESOURCES EXPENDED Charitable activities Governance costs

781,085 7,813

490,786 10,217

TOTAL RESOURCES EXPENDED

788,898

501,003

NET INCOMING/(OUTGOING) RESOURCES FOR THE YEAR

(39,144)

240,167

NET MOVEMENT IN FUNDS FUND BALANCES BROUGHT FORWARD FUND BALANCES CARRIED FORWARD

(39,144) 295,665 256,521

240,167 55,498 295,665

BALANCE SHEET AT 28 FEBRUARY 2008 TANGIBLE FIXED ASSETS CURRENT ASSETS Debtors Cash at bank and in hand TOTAL ASSETS CREDITORS: Amn unts falling due within one year TOTAL LIABILITIES NET ASSETS TOTAL FUNDS 15,740 22,535

297,678 753,838 1,067,256 ( 81 0,735) (810,735) 256,521 256,521

42,461 5731754 638,750 ( 343,085) (343,085) 295,665 295,665

These accounts are a summary of information extracted from the full annual accounts which have been audited and submitted to the Charity Commission and the Registrar of Companies. These summarised accounts may not contain sufficient information to allow for a full understanding of the financial affairs of the Charity. For further information, the full annual accounts, the auditors' report on these accounts and the Directors' Report should be consulted. Copies of these can be obtained from Children: Our Ultimate Investment (UK) Limited, 47 Bermondsey Street, London, SE1 3XT.

-7

Director

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