2023-03-31-accounts

Charity registration number 1014416

Company registration number 02745625 (England and Wales)

RAW WORKSHOP

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

RAW WORKSHOP

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees	G Ballantyne (acting chair)	(from 17 May 2023)
	P Agulnik
	R Berry
	L Smith
	J Humphries	(Appointed 16 November
		2022)
	M Noton	(Appointed 1 June 2023)
Charity number	1014416
Company number	02745625
Registered office	Dunnock Way
	Blackbird Leys
	Oxford
	OX4 7EX
Auditor	Critchleys Audit LLP
	Beaver House
	23-38 Hythe Bridge Street
	Oxford
	OX1 2EP
Bankers	Barclays Bank plc
	54 Cornmarket Street
	Oxford
	OX1 3HS

RAW WORKSHOP

CONTENTS

	Page
Trustees' report	1 - 3
Statement of trustees' responsibilities	4
Independent auditor's report	5 - 8
Statement of financial activities	9
Balance sheet	10
Statement of cash flows	11
Notes to the financial statements	12 - 23

RAW WORKSHOP

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2023

The trustees present their annual report and financial statements for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's governing document, the Companies Act 2006 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)" (effective 1 January 2019).

Overview of the Year and Future Plans

The 2022/23 year saw RAW further increase social impact and sustainability outcomes across its services and operations whilst also increasing the number of young people we supported.

The number of young people facing challenges and seeking support has continued to rise and shows no sign of abating. Our youth support services in Oxford ran at capacity and we were proud of the difference we made to many young people and their families. We are also incredibly excited about extending our work with young people into Berkshire and Buckinghamshire in partnership with The NHS Link Project.

With corporates, brands and institutions increasingly seeking added social value throughout their supply chains, RAW leveraged its social enterprise trading activities to meet this demand. Client partnerships, notably in the hospitality sector, have been built upon and will enable us to increase adult training and employment opportunities.

We made the challenging decision to close our Grounds Maintenance services, the board of trustees decided that it was non -profitable / resourcing challenges and with greater opportunities elsewhere - it was not deriving enough social outcomes to remain a core part of our operation.

We have further increased our focus on our recycling and circular economy services, building stronger corporate client relationships which have led to better sustainability outcomes.

Fundraising Standards Information

• Members of the fundraising department organise fundraising events and co-ordinate the activities of our supporters on behalf of the Charity. The Workshop has used the services of a professional fundraiser during the period. There have been no complaints about fundraising activity this year.

• The fundraising department has signed up to the Fundraising Regulator’s Code of Fundraising Practice. As a result, internal fundraising guidance and working practices have been updated so that they are compliant. All fundraisers are now given a briefing before they raise funds for the Charity and will also be given annual updates/reminders.

• All direct marketing is undertaken by the fundraising department to ensure that it is not unreasonably intrusive or persistent. Contact is made through direct marketing a maximum of three times a year but usually annually. All marketing material contains clear instructions on how a person can be removed from mailing lists.

Public Benefit Statement

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

Achievements and performance

The charity’s sales from the workshop during the period amounted to £339,937 (2022: £616,281). The charitable expenditure amounted to £812,549 (2022: £790,897) including governance costs of £11,099 (2022: £7,479). After these costs the charity’s deficit was £472,612 (2022: £174,616). However other income of £592,851 (2022: £446,466), for donations and legacies and other income, resulted in an overall surplus of £40,655 (2022: £184,216) after fundraising, marketing and development costs of £79,584 (2022: £87,634).

Financial review

The unrestricted reserves of the charity, which are not tied up in fixed assets or represented by long term liabilities (free reserves) were £389,382 at 31[st] March 2023 (2022: £346,544). We are grateful for the support of our donors and customers throughout the year.

The principal funding sources are sales income and many trusts and grant making bodies.

• 1 -

RAW WORKSHOP

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

It is the policy of the charitable company that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The Board have set the minimum reserves level at £256,000. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charitable company’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Structure, governance and management

The charitable company is a company limited by guarantee and was set up on 1 October 1992. It is governed by a Memorandum and Articles of Association.

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

G Ballantyne (acting chair)

P Agulnik R Berry J Gibson (Resigned 12 August 2022) L Smith T Nisbet (Resigned 6 April 2022) J Humphries (Appointed 16 November 2022) M Noton (Appointed 1 June 2023) J McLaughlin (Chair) (Resigned 17 May 2023)

The Chair of the Board of Trustees undertakes the recruitment of trustees after consultation with management and the Board of Trustees. The appointed Secretary of the Trustees advises the Board of appropriate training courses available to them at their quarterly meetings.

Many people and organisations provided substantial help and assistance throughout the period which is very much appreciated by all staff, Management and Trustees. The Management and Trustees are continually grateful to all the individuals and organisations that have contributed to the charity over the past twelve months.

Key Management Personnel Remuneration

The Trustees consider the Board of Trustees and the General Manager as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day to day basis. All Trustees give of their time freely and no Trustee remuneration was paid in the year. Details of Trustee expenses and related party transactions are disclosed in note 7 to the accounts.

Trustees are required to disclose all relevant interests and in accordance with the Trust’s policy withdraw from decisions where a conflict of interest arises.

The pay of the General Manager is reviewed annually and is normally increased in accordance with average earnings. The remuneration is reviewed to ensure that it is fair and not out of line with similar roles.

Risk Management

The Trustees continue to review the financial risks facing the Charity with a view to mitigating these in the light of future plans.

The principal risks and uncertainties faced by the charity are to ensure that continuity of funding is maintained.

Auditor

In accordance with the company's articles, a resolution proposing that Critchleys Audit LLP be reappointed as auditor of the company will be put at a General Meeting.

• 2 -

RAW WORKSHOP

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

..............................

G Ballantyne (acting chair)

Trustee

3 October 2023 Date: .............................................

• 3 -

RAW WORKSHOP

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2023

The trustees, who are also the directors of RAW Workshop for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

• 4 -

RAW WORKSHOP

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF RAW WORKSHOP

Opinion

We have audited the financial statements of RAW Workshop (the ‘charitable company’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• give a true and fair view of the state of the charitable company's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

• 5 -

RAW WORKSHOP

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF RAW WORKSHOP

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and

• the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charitable company for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

• 6 -

RAW WORKSHOP

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF RAW WORKSHOP

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the company through discussions with trustees and other management, and from our knowledge and experience;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charitable company;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where applicable; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

• investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• reading the minutes of meetings of those charged with governance;

• enquiring of management as to actual and potential litigation and claims;

• reviewing relevant correspondence.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.

Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustee s and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

• 7 -

RAW WORKSHOP

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF RAW WORKSHOP

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Katherine Wilkes (Senior Statutory Auditor) for and on behalf of Critchleys Audit LLP

18 October 2023 .........................

Chartered Accountants Statutory Auditor

Beaver House 23-38 Hythe Bridge Street Oxford OX1 2EP

• 8 -

RAW WORKSHOP

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted Restricted funds funds 2023 2023 Notes £ £ Income and endowments from: Donations and legacies 3 229,525 363,326 Charitable activities 4 339,937 - Other income 5 - - Total income 569,462 363,326 Expenditure on: Fundraising, marketing, development 6 79,584 - Charitable activities 6 447,040 365,509 Net income/(expenditure) for the year/ Net movement in funds 42,838 (2,183) Fund balances at 1 April 2022 346,544 150,214 Fund balances at 31 March 2023 389,382 148,031	Total Unrestricted Restricted funds funds as restated as restated 2023 2022 2022 £ £ £ 592,851 120,385 314,081 339,937 616,281 - - 12,000 - 932,788 748,666 314,081 79,584 87,634 - 812,549 597,324 193,573 40,655 63,708 120,508 496,758 282,836 29,706 537,413 346,544 150,214	Total 2022 £ 434,466 616,281 12,000
		1,062,747
		87,634 790,897
		184,216 312,542
		496,758

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

• 9 -

RAW WORKSHOP

BALANCE SHEET

AS AT 31 MARCH 2023

		2023			2022
					as restated
	Notes	£	£	£	£
Fixed assets
Tangible assets	11		55,837		64,441
Current assets
Stocks	12	8,765		12,746
Debtors	13	153,170		142,818
Cash at bank and in hand		435,449		614,376
		597,384		769,940
Creditors: amounts falling due within
one year	14	(115,808)		(337,623)
Net current assets			481,576		432,317
Total assets less current liabilities			537,413		496,758
Income funds
Restricted funds	16		148,031		150,214
Unrestricted funds			389,382		346,544
			537,413		496,758
The financial statements were approved by the Trustees on ......................... 3 October 2023
..............................

G Ballantyne (acting chair)

Trustee

Company registration number 02745625

• 10 -

RAW WORKSHOP

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

Notes Cash flows from operating activities Cash (absorbed by)/generated from operations 20 Investing activities Purchase of tangible fixed assets Proceeds from disposal of tangible fixed assets Net cash used in investing activities Net cash used in financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year	2023 £ £ (174,391) (13,052) 8,516 (4,536) - (178,927) 614,376 435,449	2022 £ (10,493) -	£ 319,173 (10,493) - 308,680 305,696 614,376

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RAW WORKSHOP

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

1 Accounting policies

Charity information

RAW Workshop is a private company limited by guarantee incorporated in England and Wales. The registered office is Dunnock Way, Blackbird Leys, Oxford, OX4 7EX.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charitable company's Memorandum, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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)" (effective 1 January 2019). The charitable company is a Public Benefit Entity as defined by FRS 102.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Prior period error

The restricted funds for the prior year have been restated with the corresponding entries impacting unrestricted funds. The net effect on the balance sheet and on the profit and loss is £Nil. See note 22 for further details.

1.3 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company 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.

1.4 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. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

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

1.5 Income

Income is recognised when the charitable company 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 charitable company 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 charitable company 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.

• 12 -

RAW WORKSHOP

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

1 Accounting policies

(Continued)

1.6 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.

1.7 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:

Improvements to Leasehold Property over the term of the lease Plant and equipment between 15% and 33% reducing balance Computers between 15% and 33% reducing balance Motor vehicles between 15% and 33% reducing balance

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.

1.8 Impairment of fixed assets

At each reporting end date, the charitable company 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).

1.9 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.10 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.

• 13 -

RAW WORKSHOP

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

1 Accounting policies

(Continued)

1.11 Financial instruments

The charitable company 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 charitable company's balance sheet when the charitable company 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.

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 charitable company’s contractual obligations expire or are discharged or cancelled.

1.12 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 charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Retirement benefits

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

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RAW WORKSHOP

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

2 Critical accounting estimates and judgements

In the application of the charitable company’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.

The judgement that has had the most significant effect on amounts recognised in the financial statements was the deferral of income during the year relating to service agreements.

3 Donations and legacies

Unrestricted Restricted funds funds 2023 2023 £ £ Donations and gifts 17,760 152,290 Grants receivable 211,765 211,036 229,525 363,326	Total Unrestricted Restricted funds funds 2023 2022 2022 £ £ £ 170,050 40,992 230,749 422,801 79,393 83,332 592,851 120,385 314,081	Total 2022 £ 271,741 162,725
		434,466

4 Charitable activities

	Charitable	Charitable
	Income	Income
	2023	2022
	£	£
Charitable activities: workshop sales	339,937	616,281
Other income
	**Total **	Unrestricted
		funds
	2023	2022
	£	£
Rent received	-	12,000

5 Other income

• 15 -

RAW WORKSHOP

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

6 Charitable activities

Fundraising, marketing, development Charitable activities 2023 2023 £ £ Staff costs - 368,909 Workshop labour costs - 86,955 Purchase of workshop materials - 88,754 Direct costs 39,792 59,240 39,792 603,858 Share of support costs (see note 7) 39,792 197,592 Share of governance costs (see note 7) - 11,099 79,584 812,549 Analysis by fund Unrestricted funds 79,584 447,040 Restricted funds - 365,509 79,584 812,549	Total Fundraising, marketing, development Charitable activities 2023 2022 2022 £ £ £ 368,909 - 348,207 86,955 - 63,604 88,754 - 91,094 99,032 52,398 69,668 643,650 52,398 572,573 237,384 35,236 210,845 11,099 - 7,479 892,133 87,634 790,897 526,624 87,634 597,324 365,509 - 193,573 892,133 87,634 790,897	Total 2022 £ 348,207 63,604 91,094 122,066
		624,971 246,081 7,479
		878,531
		684,958 193,573
		878,531

• 16 -

RAW WORKSHOP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

7 Support costs

Staff costs Depreciation Printing, postage & stationery Rent and rates Heating and lighting Travel and motor costs Insurance Advertising Telephone Sundries and training Legal and professional fees Audit fees Other Analysed between Charitable activities	Support costs Governance costs £ £ 110,291 - 13,140 - 6,133 - 15,196 - 10,174 - 21,005 - 27,661 - 989 - 1,880 - 30,345 - 570 - - 5,200 - 5,899 237,384 11,099 237,384 11,099	2023 £ 110,291 13,140 6,133 15,196 10,174 21,005 27,661 989 1,880 30,345 570 5,200 5,899 248,483 248,483	Support costs Governance costs £ £ 102,720 - 15,842 - 3,222 - 10,888 - 15,099 - 26,716 - 25,015 - 1,094 - 2,581 - 33,737 - 9,167 - - 4,180 - 3,299 246,081 7,479 246,081 7,479	2022 £ 102,720 15,842 3,222 10,888 15,099 26,716 25,015 1,094 2,581 33,737 9,167 4,180 3,299
				253,560
				253,560

Governance costs includes payments to the auditors of £5,200 (2022- £4,180) for audit fees.

8 Trustees

None of the trustees (or any persons connected with them) received any remuneration, expenses or benefits from the charitable company during the year (2022: £nil).

9 Employees

The average monthly number of employees during the year was:

2023	2022
Number	Number
21	21

• 17 -

RAW WORKSHOP

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

9 Employees Employment costs Wages and salaries Social security costs Other pension costs	(Continued) 2023 2022 £ £ 444,405 408,414 22,455 31,259 12,340 11,254 479,200 450,927	(Continued) 2023 2022 £ £ 444,405 408,414 22,455 31,259 12,340 11,254 479,200 450,927
		450,927

There were no employees whose annual remuneration was more than £60,000.

10 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

11 Tangible fixed assets

Improvements to Leasehold Property Plant and equipment Computers Motor vehicles £ £ £ £ Cost At 1 April 2022 48,252 97,632 24,356 52,280 Additions - 8,775 4,277 - Disposals - (25,670) - (14,495) At 31 March 2023 48,252 80,737 28,633 37,785 Depreciation and impairment At 1 April 2022 30,738 79,599 16,825 30,917 Depreciation charged in the year 1,660 3,554 3,774 4,152 Eliminated in respect of disposals - (23,694) - (7,955) At 31 March 2023 32,398 59,459 20,599 27,114 Carrying amount At 31 March 2023 15,854 21,278 8,034 10,671 At 31 March 2022 17,514 18,033 7,531 21,363 12 Stocks	Total £ 222,520 13,052 (40,165)
	195,407
	158,079 13,140 (31,649)
	139,570
	55,837
	64,441

Raw materials and consumables

2023	2022
£	£
8,765	12,746

• 18 -

RAW WORKSHOP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

13 Debtors Amounts falling due within one year: Trade debtors Prepayments and accrued income 14 Creditors: amounts falling due within one year Notes Other taxation and social security Deferred income 15 Trade creditors Amount owed to parent undertaking Accruals 15 Deferred income Other deferred income Deferred income is included in the financial statements as follows: Deferred income is included within: Current liabilities Movements in the year: Deferred income at 1 April 2022 Released from previous periods Resources deferred in the year Deferred income at 31 March 2023	2023 £ 80,711 72,459 153,170 2023 £ 14,562 84,998 13,100 - 3,148 115,808 2023 £ 84,998 2023 £ 84,998 256,029 (256,029) 84,998 84,998	2022 £ 140,624 2,194 142,818 2022 £ 26,220 256,029 36,758 16,066 2,550 337,623 2022 £ 256,029 2022 £ 256,029 23,562 (23,562) 256,029 256,029

• 19 -

RAW WORKSHOP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

16 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

		Movement in funds	Movement in funds	Movement in funds		Movement in funds	Movement in funds
		as restated
	Balance at	Incoming	Resources		Balance at	Incoming	Resources	Balance at
	1 April 2021	resources	expended		1 April 2022	resources	expended 31	March 2023
	£	£		£	£	£	£	£
Barn	-	5,000		-	5,000	500	(5,500)	-
Grounds Maintenance	1	5,000		(5,000)	1	-	-	1
NEET / CAMHS	-	30,596		(30,583)	13	37,528	(25,420)	12,121
Navigator Role	-	38,000		(23,692)	14,308	17,900	(14,308)	17,900
Offenders Programme	3,158	3,880		(6,990)	48	4,400	(4,447)	1
RAW Potential	4,627	142,300		(80,994)	65,933	95,050	(147,243)	13,740
RAW Store	10,812	-		-	10,812	-	(1,081)	9,731
Compass	-	83,332		(39,745)	43,587	166,668	(150,338)	59,917
Specific Equipment	3,000	-		-	3,000	-	-	3,000
Sports / Health	1,000	-		(1,000)	-	-	-	-
Staff Training / Employment	-	-		-	-	15,440	-	15,440
Vehicle / Transport	-	4,973		-	4,973	5,000	(1,175)	8,798
NEETs West Oxford / Witney	259	-		-	259	-	-	259
Workshop Equipment	6,849	1,000		(5,569)	2,280	14,000	(15,997)	283
Link Project	-	-		-	-	6,840	-	6,840
	29,706	314,081	(193,573)		150,214	363,326	(365,509)	148,031

• 20 -

RAW WORKSHOP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

• 16 Restricted funds

(Continued)

• The Barn fund is to be spent in the barn renovation so it can be used to reach more people and also generate more income.

• Grounds maintenance fund is to be used for grounds maintenance equipment.

• The NEETS / CAMHS fund is for helping young people who are either not in education or training or who are accessing the NHS CAMHS (Child & Adolescent mental health services) program. The fund would be spent on salaries for the workers or training for the young people.

• The Navigator fund is used for the salaries and meaningful activities that the youth workers will do to engage with the young people. The navigator role works with young people who are identified by Thames valley police. The aim of this program is to reduce the number of arrests and missing episodes and engage them in education or meaningful activities, such as sports programs.

• Offenders Program fund is to be spent on employing and training offenders near the end of their sentence.

• The RAW Potential fund is used to cover any costs relating to our Alternative Education provision. Within this provision we work with young people (12-16yrs) who are at the risk of exclusion from mainstream education or who may have a EHCP and we teach them English, Maths, life skills & carpentry. City & Guilds are the accreditors for our qualifications.

• The RAW Store fund is to be used for any equipment or renovations required for our retail outlet.

• The Compass fund is for a one off expansion to our navigator program. We worked with two other local charities and the Thames valley police to provide increased support and impact for young people.

• Specific Equipment fund is to be spent on equipment, tools and machinery to be used in the workshop.

• The sports & Health fund is for the purpose of encouraging a healthy lifestyle for both our young people and our adult workforce, the fund is spent on specific equipment for our on-site gym plus any specific outsourced training sessions.

• Staff Training fund is to be spent on training adults with learning disability.

• Vehicle / Transport fund is for purchasing new vehicles for RAWs operations as well as any new vehicle requirements.

• The NEETs West Oxford / Witney fund is for use with young people who are not in training or education that are located in West Oxford / Witney.

• Workshop Equipment fund is for any equipment needs of the workshop.

• The Link Project fund is for our work with the NHS link teams.

• 21 -

RAW WORKSHOP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

17 Analysis of net assets between funds

Analysis of net assets between funds
Unrestricted funds Restricted funds 2023 2023 £ £ Fund balances at 31 March 2023 are represented by: Tangible assets 13,334 42,503 Current assets/(liabilities) 376,048 105,528 389,382 148,031	Total Unrestricted funds Restricted funds as restated as restated 2023 2022 2022 £ £ £ 55,837 13,334 51,107 481,576 333,210 99,107 537,413 346,544 150,214	Total 2022 £ 64,441 432,317
		496,758

18 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

	2023	2022
	£	£
Aggregate compensation	67,581	60,668

Response Organisation lent the charity funds during the period, of which £nil was outstanding for repayment at the period end (2022: £16,066).

19 Parent charity

Response Organisation's (registered charity no: 1014416; registered company no: 02745625) principal purpose and activities are to benefit the public by supporting and providing healthcare and support services to people with enduring mental health problems.

Consolidated accounts for the group are available from Response Organisation, AG Palmer House, Morrell Crescent, Littlemore, Oxford, OX4 4SU.

• 22 -

RAW WORKSHOP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

20	Cash generated from operations	2023	2022
		£	£
	Surplus for the year	40,655	184,216
	Adjustments for:
	Depreciation and impairment of tangible fixed assets	13,140	15,842
	Movements in working capital:
	Decrease/(increase) in stocks	3,981	(5,192)
	(Increase) in debtors	(10,352)	(104,250)
	(Decrease) in creditors	(50,784)	(3,910)
	(Decrease)/increase in deferred income	(171,031)	232,467
	Cash (absorbed by)/generated from operations	(174,391)	319,173
21	Analysis of changes in net funds
	The charitable company had no debt during the year.
22	Prior period adjustment
	Changes to the balance sheet

Changes to the balance sheet
	At 31 March 2022
	As previously Adjustment As		restated
	reported
	£	£	£
Income funds
Restricted funds	270,568	(120,354)	150,214
Unrestricted funds	226,190	120,354	346,544
Total equity	496,758	-	496,758
Changes to restricted and unrestricted fund movements
	Period ended 31 March		2022
	As previously	Adjustment	As
	reported		restated
Unrestricted fund brought forward	93,964	188,872	282,836
Unrestricted income	900,594	(151,928)	748,666
Unrestricted expenditure	(768,368)	83,410	(684,958)
	226,190	120,354	346,544
Restricted fund brought forward	218,578	(188,872)	29,706
Restricted income	162,153	151,928	314,081
Restricted expenditure	(110,163)	(83,410)	(193,573)
	270,568	(120,354)	150,214

• 23 -