**REGISTERED COMPANY NUMBER: 03485360 (England and Wales) REGISTERED CHARITY NUMBER: 1072633**
## **Report of the Trustees and**
**Unaudited Financial Statements for the Year Ended 31 March 2022**
**for**
**Real Action (Q.P.C.T.) Ltd**
Grant Harrod Lerman Davis LLP Chartered Accountants 1st Floor Healthaid House Marlborough Hill Harrow Middlesex HA1 1UD
**Real Action (Q.P.C.T.) Ltd**
## **Contents of the Financial Statements for the year ended 31 March 2022**
|||**Page**||
|---|---|---|---|
|**Report of the Trustees**|1|to|4|
|**Independent Examiner's Report**||5||
|**Statement of Financial Activities**||6||
|**Statement of Financial Position**|7|to|8|
|**Notes to the Financial Statements**|9|to|14|
**Real Action (Q.P.C.T.) Ltd**
## **Report of the Trustees for the year ended 31 March 2022**
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2022. The trustees have adopted the provisions of 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).
## **OBJECTIVES AND ACTIVITIES**
## **Objectives and aims**
The company is a community led educational charity. Its formal objectives are to:
1) Advance the education of children, young people and families; and
- 2) Advance the education and training of adults particularly so as to assist them in finding employment.
To achieve these, the charity operates the following core educational programmes:
a) The Butterfly Reading and Writing Course - reading and writing lessons for 5-12 year olds
b) English Express (formerly Speak English!) An English language course for teenagers and adult speakers of other languages
## **Public benefit**
The Trustees have considered their duty as outlined in Section 4 of the Companies Act 2006 to have due regard to the Charity Commission's general guidance on public benefit. The purpose of the charity is enshrined in its objects and aims as outlined above. The Trustees ensure that this purpose is carried out for the public benefit by delivering a range of services.
Page 1
**Real Action (Q.P.C.T.) Ltd**
## **Report of the Trustees for the year ended 31 March 2022**
## **ACHIEVEMENT AND PERFORMANCE Charitable activities**
A GOOD YEAR...
## BUTTERFLY EDUCATION RESURRECTION
It is on this, following on from the Covid era of education deprivation that will have afflicted our nation's children from disadvantaged families (and multiple cultures) that we are embarked, to good effect. Into our resurrected classes that we are delivering in term-time at the wonderfully spacious and kindly welcoming Bevington Primary School, come our literacy loving 4-12 year-olds. 'Miss! Will you give me a test!' they commonly cry - often pursued by their non-English-speaking parents. And up through our term-time two-hour Saturday classes they happily soar. An average reading age rise of 13 months - more than a year! - occurs in just 18 hours of our delivery (by a dozen wonderful volunteers) of pacey, super-effective, Butterfly lessons devised by Irina Tyk in her Butterfly Book. On and upwards they go, attending classes to which they are assigned (following one-to-one reading tests) by their level of reading. Comprehension and literature appreciation await them in our top two classes. And our over two decades of Butterfly teaching experience informs us that many will be heading not into criminality - from which we happily divert them (frequently from their fathers' practices!) - but, wonderfully, on into university.
## ENGLISH LANGUAGE MASTERY
This is what we swiftly enable adults, from multiple cultures and linguistic origins, to achieve - very enjoyably - by attending our two-hour weekday English Express classes, currently delivered in our three classrooms at our charity's Learning Store HQ in Mozart Street. Taught by 13 wonderful permanent teachers, and two cover teachers - by the super Callan methodology, in classes to which each is assigned (following one-to-one testing) according to English language level, up soar their levels of communication. Our teachers provide, to great effect, 14 two-hour English Express classes every weekday, each with up to 16 lively, very responsive, students from a range of nationalities. 20%, we find, are Spanish speakers. And quite a majority - 60% - are currently Brazilians. Our Callan weekday class timetable is 8am - 9.50am 10am - 11.50am 2.30pm - 4.20pm 4.30pm - 6.20pm 6.30pm - 8.20pm 8.30pm - 10.20pm. The profit our Callan classes currently yields to our charity is £140,000.
## POST-COVID REAL ACTION RECOVERY
This is, evidently, occurring. It delights us to have resumed, to enlivening effect, what our multiple origin culture very evidently needs to ensure its survival, and evade the criminality which may be afflicting other culture-mixed communities. Our prisons, we are informed, are inhabited by over 50% of illiterates. It was in our nation's then most criminal neighbourhood - the Mozart area of London - we came to inhabit over two decades ago that its community was dominated by criminal illiterates. As these local parents now evidently love to inform us, their children's literacy was not enabled by their schooling, but by their attendance at our Butterfly classes. On to university (not criminality) we enabled their children to go. Is our Real Action perhaps of national significance? Perhaps!
## THANK YOU, DEAR WONDERFUL FUNDERS!
## **FINANCIAL REVIEW**
## **Financial position**
Informed by the fund-raising conducted by Real Action - among wonderful new as well as ongoing supporters of our work in 2020 and 2021 - Trustees have accorded ongoing support for our often fruitful case-making for constructively supportive ongoing funding.
As we keep declaring: On We Go! Ooh yes!
## **Reserves policy**
The Trustees aim, where possible, to hold reserves (funds that are not tied up in fixed assets, designated or restricted funds) of £20,000 to support the charity throughout the periods when the charity awaits decisions from funding bodies, whilst continuing to operate planned projects. At 31 March 2021 there were total unrestricted reserves to be carried forward of £40,233 in surplus (2021: £9,920 - Surplus). The Trustees are continuing to oversee the implementation of an Action Plan to increase the level of both Restricted and Unrestricted Funds and will continue to monitor the situation closely.
Page 2
**Real Action (Q.P.C.T.) Ltd**
## **Report of the Trustees for the year ended 31 March 2022**
## **FUTURE PLANS**
These can be briefly expressed: On We Go! We have the most wonderful remedies to some of our nation's most pressing problems. Our in-school weekday teachers, like our Saturday volunteers, demonstrate, with great professionalism, that our Butterfly solutions are deliverable, and therefore replicable.
Yes, we must seek and engage further, stabilising, financial support. Our tiny professional delivery team at our modest Learning Store HQ demonstrates the high productivity of our very Real Action. Yes, we need, and merit, ongoing support.
## **ORGANISATION**
The day-to-day operation of the charity's objectives by members of staff and volunteers is overseen and supported by its team of four directors/trustees who meet on a regular basis.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Registered Company number**
03485360 (England and Wales)
## **Registered Charity number**
1072633
## **Registered office**
The Learning Store 3 Mozart Street London W10 4LA
## **Trustees**
W F Windham Director (resigned 30.9.2022) S Bent Director (resigned 28.7.2021) D Hayes Trustee Dr H L Folasade Trustee (appointed 1.12.2021) Ms P A Calvo Trustee
## **Company Secretary**
## **Independent Examiner**
Jeremy Harrod FCCA Grant Harrod Lerman Davis LLP Chartered Accountants 1st Floor Healthaid House Marlborough Hill Harrow Middlesex HA1 1UD Approved by order of the board of trustees on ............................................. and signed on its behalf by:
Page 3
**Real Action (Q.P.C.T.) Ltd**
## **Report of the Trustees for the year ended 31 March 2022**
........................................................................Dennis Hayes Signed on 12/12/22 @ 13:51 D Hayes - Trustee
Page 4
**Independent Examiner's Report to the Trustees of Real Action (Q.P.C.T.) Ltd**
## **Independent examiner's report to the trustees of Real Action (Q.P.C.T.) Ltd ('the Company')**
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2022.
## **Responsibilities and basis of report**
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.
## **Independent examiner's statement**
Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of FCCA which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Jeremy Harrod FCCA Grant Harrod Lerman Davis LLP Chartered Accountants 1st Floor Healthaid House Marlborough Hill Harrow Middlesex HA1 1UD
Date: .............................................
Page 5
## **Real Action (Q.P.C.T.) Ltd**
## **Statement of Financial Activities for the year ended 31 March 2022**
|Unrestricted
fund
Notes
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
17,978
**Charitable activities**
Donations and legacies
-
Charitable activities
188,561
Other trading activities
2
163,660
**Total**
370,199
**EXPENDITURE ON**
**Charitable activities**
Donations and legacies
-
Charitable activities
339,885
**Total**
339,885
**NET INCOME**
30,314
**RECONCILIATION OF FUNDS**
Total funds brought forward
9,920
**TOTAL FUNDS CARRIED FORWARD**
40,234|Restricted
fund
£
-
-
-
-
-
-
-
-
-
-
-|2022
Total
funds
£
17,978
-
188,561
163,660
370,199
-
339,885
339,885
30,314
9,920
40,234|2021
Total
funds
£
60,785
187,747
-
106,370
354,902
294,225
52,665
346,890
8,012
1,908
9,920|
|---|---|---|---|
The notes form part of these financial statements
Page 6
**Real Action (Q.P.C.T.) Ltd**
## **Statement of Financial Position 31 March 2022**
|Unrestricted
fund
Notes
£
**FIXED ASSETS**
Tangible assets
7
1,748
**CURRENT ASSETS**
Stocks
8
4,000
Cash at bank
156,152
160,152
**CREDITORS**
Amounts falling due within one year
9
(111,248)
**NET CURRENT ASSETS**
48,904
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
50,652
**CREDITORS**
Amounts falling due after more than one year
10
(10,418)
**NET ASSETS**
40,234
**FUNDS**
11
Unrestricted funds
**TOTAL FUNDS**|Restricted
fund
£
-
-
-
-
-
-
-
-
-|2022
Total
funds
£
1,748
4,000
156,152
160,152
(111,248)
48,904
50,652
(10,418)
40,234
40,234
40,234|2021
Total
funds
£
2,185
4,000
90,029
94,029
(75,876)
18,153
20,338
(10,418)
9,920
9,920
9,920|
|---|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2022.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2022 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
- (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
- (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
continued...
Page 7
**Real Action (Q.P.C.T.) Ltd**
## **Statement of Financial Position - continued 31 March 2022**
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:
Dennis Hayes Signed on 12/12/22 @ 13:51 .............................................
D Hayes - Trustee
The notes form part of these financial statements
Page 8
**Real Action (Q.P.C.T.) Ltd**
## **Notes to the Financial Statements for the year ended 31 March 2022**
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
## **Income**
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery
- 25% on reducing balance
## **Stocks**
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
## **Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **Pension costs and other post-retirement benefits**
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
continued...
Page 9
**Real Action (Q.P.C.T.) Ltd**
## **Notes to the Financial Statements - continued for the year ended 31 March 2022**
## **2. OTHER TRADING ACTIVITIES**
**----- Start of picture text -----**
||||
|---|---|---|
|2022|2021|
|£|£|
|Enrolment fees/Student Contributions|163,660|106,370|
**----- End of picture text -----**
## **3. NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
**----- Start of picture text -----**
||||
|---|---|---|
|2022|2021|
|£|£|
|Depreciation - owned assets|437|1,508|
**----- End of picture text -----**
## **4. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31 March 2022 nor for the year ended 31 March 2021.
## **5. STAFF COSTS**
**----- Start of picture text -----**
||||
|---|---|---|
|2022|2021|
|£|£|
|Wages and salaries|244,365|272,722|
|-|
|Social security costs|11,750|
|Other pension costs|7,917|7,140|
|252,282|291,612|
|The average monthly number of employees during the year was as follows:|
|2022|2021|
|Teachers|-|25|
|Administration and Support|-|3|
|-|28|
**----- End of picture text -----**
No employees received emoluments in excess of £60,000.
continued...
Page 10
**Real Action (Q.P.C.T.) Ltd**
## **Notes to the Financial Statements - continued for the year ended 31 March 2022**
|**6.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
Unrestricted
Restricted
fund
fund
£
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
60,785
-
**Charitable activities**
Donations and legacies
187,747
-
Other trading activities
106,370
-
**Total**
354,902
-
**EXPENDITURE ON**
**Charitable activities**
Donations and legacies
294,225
-
Charitable activities
52,665
-
**Total**
346,890
-
**NET INCOME**
8,012
-
**RECONCILIATION OF FUNDS**
Total funds brought forward
1,908
-
**TOTAL FUNDS CARRIED FORWARD**
9,920
-
**7.**
**TANGIBLE FIXED ASSETS**
Fixtures
Plant and
and
Computer
machinery
fittings
equipment
£
£
£
**COST**
At 1 April 2021 and 31 March 2022
22,002
9,634
8,536
**DEPRECIATION**
At 1 April 2021
22,002
8,369
7,616
Charge for year
-
253
184
At 31 March 2022
22,002
8,622
7,800
**NET BOOK VALUE**
At 31 March 2022
-
1,012
736
At 31 March 2021
-
1,265
920|Total
funds
£
60,785
187,747
106,370
354,902
294,225
52,665
346,890
8,012
1,908
9,920
Totals
£
40,172
37,987
437
38,424
1,748
2,185|
|---|---|
continued...
Page 11
**Real Action (Q.P.C.T.) Ltd**
## **Notes to the Financial Statements - continued for the year ended 31 March 2022**
|**8.**|**STOCKS**|||||
|---|---|---|---|---|---|
|||||2022|2021|
|||||£|£|
||Stocks|||4,000|4,000|
|**9.**|**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**|||||
||Trade creditors|||2022
£
2,246|2021
£
2,814|
||Social security and other taxes|||1,311|5,462|
||Other creditors|||1,051|200|
||Accruals and deferred income|||106,640|67,400|
|||||111,248|75,876|
|**10.**|**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE**|||**YEAR**||
||Other creditors|||2022
£
10,418|2021
£
10,418|
|**11.**|**MOVEMENT IN FUNDS**|||||
||**Unrestricted funds**|At|1.4.21
£|Net
movement
in funds
£|At
31.3.22
£|
||General fund||9,920|30,314|40,234|
||**TOTAL FUNDS**||9,920|30,314|40,234|
||Net movement in funds, included in the above are as follows:|||||
||**Unrestricted funds**|Incoming
resources
£||Resources
expended
£|Movement
in funds
£|
||General fund|370,199||(339,885)|30,314|
||**TOTAL FUNDS**|370,199||(339,885)|30,314|
|||||||
continued...
Page 12
**Real Action (Q.P.C.T.) Ltd**
## **Notes to the Financial Statements - continued for the year ended 31 March 2022**
## **11. MOVEMENT IN FUNDS - continued**
## **Comparatives for movement in funds**
|At 1.4.20
£
**Unrestricted funds**
General fund
1,908
**TOTAL FUNDS**
1,908
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
**Unrestricted funds**
General fund
354,902
**TOTAL FUNDS**
354,902|Net
movement
At
in funds
31.3.21
£
£
8,012
9,920
8,012
9,920
Resources
Movement
expended
in funds
£
£
(346,890)
8,012
(346,890)
8,012|
|---|---|
A current year 12 months and prior year 12 months combined position is as follows:
|**Unrestricted funds**|At 1.4.20
£|At 1.4.20
£|Net
movement
At
in funds
31.3.22
£
£|
|---|---|---|---|
|General fund||1,908|38,326
40,234|
|**TOTAL FUNDS**||1,908|38,326
40,234|
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
**TOTAL FUNDS**|Incoming
resources
£
725,101
725,101|Resources
Movement
expended
in funds
£
£
(686,775)
38,326
(686,775)
38,326|
|---|---|---|
continued...
Page 13
**Real Action (Q.P.C.T.) Ltd**
## **Notes to the Financial Statements - continued for the year ended 31 March 2022**
## **12. RELATED PARTY DISCLOSURES**
There were no related party transactions for the year ended 31 March 2022.
## **13. DONATIONS IN KIND**
The charity occupies premises on a 20 year lease starting from 28th November 2001 at a peppercorn rental (maintenance fee) provided by Network Stadium Housing Association with an option to renew after 20 years. The lease falls outside the Landlord and Tenants Act. The charity is responsible for the payment of an annual maintenance fee which also covers a reasonable proportion of the costs and expenses incurred in the management of the premises (including insurance and long term maintenance thereof) in accordance with the principle of good estate management. The estimated annual value of this donation in kind is £24,000 (based on the average rental market value of £2,000 per month for a 2-bedroom flat in the W10 area).
Page 14
The Directors Real Action (Q.P.C.T) Limited The Learning Store 3 Mozart Street London W10 4LA
12 December 2022 Jh-21326
Dear Sirs
This representation letter is provided in connection with our accounts preparation of the financial statements of the company for the year ended 31 March 2022.
You confirm that the following representations have been made to the best of your knowledge and belief, having made appropriate enquiries of other directors and officials of the company with relevant knowledge and experience, and, where appropriate, inspection of supporting documentation sufficient to satisfy yourselves that you can properly make each of the following representations to us:
- 1 You acknowledge as directors your responsibilities under the Companies Act 2006 for preparing financial statements and for making accurate representations to us as accountants.
- 2 You confirm that all accounting records have been made available to us for the purpose of our accounts preparation and that all the transactions undertaken by the company have been properly reflected and recorded in the accounting records. All other records and related information, including minutes of all management and shareholders’ meetings, have been made available to us.
- 3 You confirm that the company has no liabilities or contingent liabilities other than those disclosed in the accounts.
- 4 You confirm that there have been no events since the balance sheet date which require disclosing or which would materially affect the amounts in the accounts, other than those already disclosed or included in the accounts.
- 5 You confirm that you have disclosed to us all related party transactions relevant to the company and that you are not aware of any further related party matters that require disclosure.
- 6 You confirm that the company has not contracted for any capital expenditure other than as disclosed in the accounts.
- 7 You confirm that there are no companies associated with this company for tax purposes other than those companies that you have told us about.
You understand that companies are associated for tax purposes if they are under the control of the same person or persons. You also understand that for this purpose a person might be treated as one and the same person as: a close relative; a business partner; a trustee of a settlement of which the person or a relative was the settlor; and any company in which any of these is also a shareholder.
- 8 You confirm that there are no laws or regulations that are central to the company’s ability to conduct its business.
- 9 You confirm that in your opinion the company’s financial statements should be prepared on the going concern basis on the grounds that the current and future sources of funding or support will be more than adequate for the company’s needs.
Yours faithfully
## **Grant Harrod Lerman Davis LLP**
Signed on behalf of the board of directors by:
Director................................................................. Dennis Hayes Signed on 12/12/22 @ 13:51
Date.....................................................................