**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| |---|---|---|---| - 11 - ## **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. - 14 - ## **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 -