Charity No.. 1076317 Company No.. 03069213 Talbot House Children's Charity Llmited (a company limited by guarantee and not having a share capital) Report of the Management Trustees and Financial Statements for the year ended 31 March 2024 Talbot House Chlldren's Charity Limited (a company limited by guarantee and not having a share capital) Contents Pagè Report of the Management Trustees Independent Auditor's Report 10-13 Statement of Flnancial Activities 14 Balance Sheet 15 Cash Flow Statement 16 Notes to the Financial Statements 17-31 Talbot House Children's Charity Limited (a company limited by guaranlee and not having a share capital) Report of the Management Trustees for the year ended 31 March 2024 The Management Trustees, who act as directors for the purposes of company law, are pleased to present their annual report together with the audited financial statements for the year ended 31 March 2024. The financial statements have been prepared in accordance with Accounting and Reporting by Charitles: Statement of Recommended Practice applicable lo charities preparing their accounts In accordance with the Financlal Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) issued in Octob&r 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice. OBJECTIVES AND ACTIVITIES In setting our objectives and planning our actlvlties we have glven careful conslderatlon to thé Charlty Commission's general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education and care. Principal objectlve To provide an innovative approach. to the needs of children with social. emotional and mental héalth consideratlons, in either daily educatlon in school. our children's home or in both. Mlsslon statement Talbot House Children's Charity is a children's charitable organisation ￿th a non-maintained special school and a registered children's home. We exist to improve the lives of the children we V￿rk with. Talbot House School provides education for children who have complex needs centred around their s(Jcial, emotional, or mental health. The Charity's core values are.. People - passionate people are at the heart of Talbot House. Place- provldlng a safe, nurturing environment where we are all equally valued and encouraged. Pride - we take prfde in celebrating our achievements and inspire self-bellef. OveNiew Our School was last inspected by Ofsted in July 2023. Our rating is 'Good' in all four areas of effectiveness. This is recognition for the hard work by our staff to make Sure that our children feel happy and safe then al school and thal we provide an excellent quality of education. Talbot House Children's Charity Llmited (a company limlted by guarantee and not having a share capital) Report of the Management Trustees (Contlnued) for the year ended 31 March 2024 We took the difficult decision to close our Residential Children's Home in March 2024. The reason for this was we continued to try to recruit a qualified Residential Manager and qualified Residential Childcare Workers to no avail. This resulted in the home being unable to continue to operate without qualified staff, resulting in its dosure. At this time, we h8d three children living in our care, who were all placed in new homes. Key areas of operation Talbot House Chlldren's Charity's key area of operation is the school. ACHIEVEMENTS AND PERFORMANCE Charlty First and forernost. we are a children's charity and as such structured differently to other schools. We have a Chief Executive Officer and a Head Teacher of the school, who is supported by a Deputy Head Teacher I SENC)fXJ. We are governed by a Board of Trustees, although all those Trustees are also Governors wllhin our school governlng board. We also have Parent and Staff Governors on the goveming board for school. School The school has capacity for 70 children, from reception dass to year 11. We recently requested an addltlonal 10 places (60 to 70) and a reception provision from the DfE vthich was granted In July 2024. We currently have 63 chlldren on roll; however. we are expecting lo reach 70 before Christmas. All our children have an EHC plan, predominantly for SEMH as their prlrnary need, however, over 70 % of the children have a secondary need of ASD. Attendance over the past two years has significantly increased, from 64 % to 920/0. We believe our pupils enjoy school, feel safe and Want to learn. Our curriculum is tallored for the varying needs of our children, We offer a pre-engagement model. Key Stage 1, 2, 3 and 4 national Gurrlculum and our pupils work towards achieving various qualifications as well as meeting their EHCP outcome. We believe that our pupils are entiued lo good, broad, and balanced curriculum as well as skills to ensure that they are successful in life beyond year 11. We offer, soclal skills, preparation for adulthood, wellbeing, communlcatlon and interaction and vocational lessons to ensure our children achieve academically and socially. Within our offer vrfe also have owupational health and speech and language theraplsts working wlth our chlldren. We Offer Thrive, sessions and praclice the 'Thrive' approach acro&s thè school. Our staff are skilled in Makaton. sensory stories and will be offering rebound therapy later this year. The school has different zones, Blue. Orange. Yellow and Green. Blue Zone 3 classes, Pear, and Peach. following an Equals informal currlculum, Palm, followlng Key Stage 1 curriculum. Orange Zone - 1 class, Beech, following a semi-fomial curriculum, {part Equals, part national curriculum key stage 1) Yellow Zone - 2 classes. Apple, and Sycarnoie. both follow, national cufficulum key stage 2. Green Zone - 5 house groups. Oak, Pine. Willow. Maple. and Cherry, they are set into 5 teaching groups following key stage 3 and 4 national curriculum. We pride ourselves on adapting to all our children's needs, building good relationships with parents and carers, and supporting all children to achieve the best they can. Talbot House Children's Charity Limited (a Company limited by guarantee and not havlng a share capital> Report of the Management Trustees (Continued) for the year ended 31 March 2024 FINANCIAL REVIEW The financial positton remains stable. The building refu￿lshrnent program continues to progress wlth more areas of modernisation planned. School roll has remained static compared this position last year, with 26 on roll. The results by activity are detailed below, Income Expendilure 2024 2023 School Residential care home 2.668,710 675,788 2.131,503 758,780 537,207 48,151 (82,992) (71,213) 3.344,498 2,890,283 454,215 (73,062) An operating surplus of £453.796 (2023 deficit - £2.430} is shown on the Statement of Financial Activltles. Talbot House Children's Charity Limited (a cornpany limited by guarantee and not having a share capital) Report of the Management Trustees (Continued) for the year ended 31 March 2024 The fund balances carried forward at 31 March 2024 show a total of £2.572,002 (2023 - £2.298.206) of which £nil (2022.. £nil) related to r.estricted funds. Reserves policy -The charity is reliant for Its operational costs on numbers of chlldren attendlng our school or living In our children's home. AJI unrestricted income is received from govemment funding. Our policy is to hold reserves of six months OPÈration expenses. At 31 March 2024 the free reserv8s held amounts to £425.478. n the Trustees. view. these reserves should provide th8 charity with adequate financial stability and the means for it to meet ils charitable objectwes for the foreseeable future. We are currently working towards increasing our level of reserves in order to meet to policy. Trustees will review the amount of reserve5 on a quarterly basis at their board meetings to ensure that the charity is able to fulfil its continulng obligations. Going Concèrn The charity reported a surplus of £453.796 for the year ended 31 March 2024 (2023 - deficit of £2,430) and has net assets of £2,752,002 (2021: £2,298,206). The Charity have been able to sustain a healthy cash position during this year. We contlntse lo support families during school holiday periods by providing Aldi vouchers to asslst with increases in the Cost of Ilving. A number of development projects were completed, Including the nature garden and outside dassroom, the sports hall is almost complete, and we purchased two electrlc minibuses. We continue to successfully increase the number of children enrolled at our school, and we have inueased the overall capacity. agreeing 10 more school places. Referrals to the school have increased significantly with the majority of them now for children of prlmary pchool age. Many of them are now instigated by parents and their current provision. We are able to match the children referred to us more rigorously as a result, gathering information from numerous sources. As the children's needs are Identified and met when they are younger, they are more likely to achieve good outcomes at the end of their school life. We had another wonderful 'Celebralion of Success Day, al the end of the summer temi to recognise our children's amazing achievements throughout the year. Talbot House Children's Charity Llmited (a company limited by guarantee and not having a share capltal) Report of the Management TN5tees (Conllnuedj for the year ended 31 March 2024 PLANS FOR THE FUTURE Aims Our aims for 202412025 are: Complete the IT network renewal Create a minibus compound Build a new workshop for our Maintenance Team Demolish tha Caretakers house (no longer In use) Complete thg Sports Hall Continue to develop the Nature Garden Investigate the possibility of a new dernountable dassroom REFERENCE AND ADMINISTRATIVE DETAILS Charity Number 1076317 Company Number 03069213 Registered office Hexham Road, Walbottle, Newcastle upon Tyne, NE15 8HW Our advlsors Bankers Natlonal Westminster Bank, 149 High Street, Gosforth, Newcastle upon Tyne, NE3 1HA SolicitorslLegal issues Ward Hadaway Law Finn, Sandgate House, 102 Quayside, Newcastle upon Tyne. NE1 3DX Auditors CIA Evelyn Partners Limited. 17 Queens Lane, Newcastle upon Tyne, NE1 1 RN Talbot House Children's Charity Limited (a company limited by guarantee and not having a share capital) Report of the Management Trustees (Contlnued) for the year ended 31 March 2024 Directors and Trustees The directors of the charitable company ('the charity.) a￿ its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Management Trustees. The members of the Managemenl Trustees during and after the year were as follovts:_ Rev A Harding L Cannell-mirza L Alcorn N Ramsey V Mears T Johnson R Scott D Wllson (Chair) Resigned 17 January 2024 Appolnted 17 January 2024 Appointed 24 April 2024 Appoinled 24 April 2024 The Trustees are also members of the Board of Governors, in addition to the following.. D Pearson C Smiles Karen Cowan Steve Hughes Rachael Gosling Chief Executive Govemor Head Teacher Govemor Staff Govemor Staff Governor Parent Governor Key management D Pearson C Smiles Chief Executive Head Teacher Talbot House Children's Charity Limited (a company limited by guarantee and not havlng a share capital) Report of the Management Trustees (Continued) for the year ended 31 March 2024 STRUCTVRE, GOVERNANCE AND MANAGEMENT ljoverning aocumenr Talbot House Children's Charity is a company limited by guarantee and a registered charity governed by Its Memorandum and Artides of Association. A Trust Deed established Talbot House 'The Charity. on 12 Dec8mb8r 1973. On 31 March 2000 all assets and liabilities were transferred to Talbot House Independenl Speclal School Lirnlted ('a company lirnited by guarantee,). In July 2002 an applicatlon to the DfES, by the Trustees, to become a Non-maintained Special School was Spproved by th8 Secretary of State for Education. New Articles and Memorandum of Association were duly implemented and subsequently, as a condition. a Goveming Body was fomiulated. On 29 January 2015 an Extraordlnary General Meetlng passed a Special Resolutlon to ratlfy a Turther Chanyv vi. name to that of 'Talbot House Trust,. Further to this another Exlraordinary General Meeting passed a Special Resolution to ratify a further change of name lo that of Talbot House Trust'North East on the 20 May 2015. On the 181h January 2023 within a scheduled general meeting a special resolulion was passed to ratlfy a change of name to that of Talbot House Children's Charity Limiled. Talbot House Chlldren's Charity is a Registered Charity (Charity No 1076317). It Is also a Company Llmlted by Guarantee (Company No 03069213) and a Non-maintained Special School {DfES No 3917038). Method of Electlon of TNstees and Govemors Approval for the appointment of new Trusteeslmembers is made at Trustees Meetings. New members are recruited proactively through various networks available to the trust. Rotation of MemborslTrustees is in 8ccordance with the Memorandum and Articles of Association. Govemors are appointed in accordance with the Instrument and Artides of Government documents. Talbot House Children's Charity Llmlted (a company limited by guarantee and not having a share capital) Report of the Management Trustees (Continued) for the year ended 31 March 2024 Trustee inductlon and training All the trustees are familiar with the practical work of the chatity and are kept up to date with their legal responsibilities through the circularisation of Charity Commission newsletters, correspondence and updates. Governor training is undertaken with a subscription to an e-learning tool along with face to face training as appropriate. Organlsational structure The organisatlon structure adopted in March 2001 consists of the Trustees and the Senior Management Team. The Trustees are responsible for govemance. strategy and mission and advises. directs and supports the Senior Management Team. The Senior Managemenl Team comprises Ms D Pearson, Chief Executive Officer and Mrs C Smiles, Head Teacher. Collectively they are responsible for the day to day running of the Charity. The school is subject to rigorous Ofsted inspections, as well as local aulhority monitoring visits. The Charity has excellent external links and relationships viith LA Commlssioning Offlcers. There is also support from agencles such as Social SeNices, Careers Services and representatives from various health agencies NHS and LA advisory seNices. Relationships continue to be developed between other charities and focus groups such as provlder forums, special heads groups, NASS (Nats'onal Association of Special Schools) and LA procurement tramework commissioners. Related partles and co.operation with other organisations The Charity maintain links with other schools in the area via speclal heads groups, safeguarding forums and networking. Pay policy for senlor staff Our Trustees delegate responsibility to the payroll committee which is made up of up to three trustees annually. Pay increases are awarded in April each year. Unlon Recognitlon n December 2021, the trust management were approached by a representative of the NEU who represented the teaching staff. An agreement was made that the NEU would be the recognised union for the bargaining unit who requested inpul on decisions over teachers pay, holidays and hours. Risk assessment The Management Trustees recognise Ihat the main risk to the Charity would result from a fall in pupil numbers. A development plan is drawn up each year and submitted to .the truslees. At their quarterty meetings the Chief Executive and senior team report on all aspects of the charity'5 business, including pupil numbers, staffing levels and financlal matters. Auditors A resolution proposing that CLA Evelyn Partners Limited be feappointed as auditors of the company will be put to the Annual General Meeting. Talbot House Children's Charity Limited (a company limlted by guarantee and not havlng a share capital) Report of the Management Trustees (Continued) for the year ended 31 March 2024 STATEMENT OF MANAGEMENTTRUSTEES. RESPONSIBILITIES The Management Trustees (who are also directors of Talbot House Children's Charity for the purpose of company law) are responsible for preparing the Management Trustees. Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requlres the truslees 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 Ihe incoming resources and application of resources, including the income and expenditure, of the charitable company for Ihat period. In preparing these financial statements, the trustees are required to.. select sultable accountlng policies and then apply them consistently. observe the methods and principles in the Charities SORP 2015 (FRS 102); make judgements and estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been fdlowed. subject to any material departures disclosed and explained in the financial statements; and prepare the financial statements on the going concem basis unless il is inappropriate to presume that the charitable company will continue in operation. The trustees are responsible for keeping adequate accounling records that disclose with reasonable accuracy at any time the financial positlon of the charitable company and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charilable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware: there is no relevant audit information of whlch the charitable company's auditors ar8 unaware, and the trustees have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that informalion. This report was approved by the Management Trustees on Ib4hQcld*-. . 2024. Signed on behalf of the Board Rev A Harding Chair Talbot House Children's Charity Limited (a company limited by 9uarantee and not having a share capltal) Independent auditor's report to the members of Talbot House Children's Charity Limited Opinion We have audited the financial statements of Talbot House Children's Charity (the 'charitable company,) for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements. including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, induding Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our oplnion the financial statements: give a true and fair view of the state of the charitable company's affairs as at 31 March 2024. and of its incoming resources and application of resources. including its incorne and expenditure, for the year then ended., have be&n properly prepared in accordance with Unlted Kingdom Generally Accepted AGcounting Praclice; and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for oplnSon We conducted our audit in accordance with Intemational Standards on Audiling (UK) lvl¢￿4*......... 2024 and signed on their behalf by: Rev A Harding Chalr Company Number 03069213 The notes on pages 17 to 31 fomy part of these financial statements. 15 Talbot House Children's Charity Limited (a company limited by guarantee and not having a share capital) Cash Flow Statement for the year ended 31 March 2024 2024 2023 Note Cash flow from operatlng acttvities Net cash flow from operating activities 21 418.509 78,120 Cash flow from investing actlvities Payments to acquire tangible r￿ed assels (81,538) (247.859) Net cash flow from investing actlvltles { 81,538) { 418,655) Cash flow from financing activities Repayment of borrowings (52,526) Net cash flow from financing activities (52,526) Net IDcreasel(decrease) in cash and cash equivalent8 336,971 (169,739) Cash and cash equivalents at the beginnlng of the year 335,270 505,009 Cash and cash equivalents at the end of the year 672.241 335,270 Cash and cash equivalents consist of: Cash at bank and In hand 672.241 335,270 16 Talbot House Children's Charity Limited (a company limited by guarantee and not having a share capital) Notes to the Financial Statements for the year ended 31 March 2024 Accounting Policies 1.1 Basis of preparation The financial statements have been prepared in accordance with 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) issued in October 2019. the Financial Reporting Standard applicable in the Uniled Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011. the Companies Act 2006 and UK Generally Accepted Practice. Talbot House Children's Charity North East meets the definition of a public benefit under FRS 102. The financial statements are prepared under the historical cost convention or transaction value unless otherwise stated in the relevant accounling policy note(s). The financial statements are prepared in Sterling which is the functional currency of the charity and rounded to the nearesl £. The slgnificant accounting policies applied in the preparatlon of these financial statements are set out below. These policies have beon consistently applied to all years presented unless othemise stated. 1,2 Go5ng concern The charity reported a surplus of £453.796 for the year ended 31 March 2024 (2023 deficit: £2,430) and has net assets of £2.752,002 (2023: £2,298,206). We have increased our capacity by 10 extra spaces in our school, up to 70 puplls, which are in great demand. This, in turn will add to our income going foTrvard. A waiting lisl for September 2025 has already been started. M05t of our referrals are now either word of mouth, or through schools recommending us to parents of pupils with additional needs. The matching process is much smoother and is managed beiween our referrals officer and our Deputy HeadlSENDco. This indudes visits to previous schools and parenvcarer visits to our school, along with making sure we can meet needs which is identified on each child's EHCP. Our children's residential home v￿S closed in March 24, however, it had failed to make a surplus for some time so will have little Impacl on the business. The budgets for 2024125 are extremely healthy. 1.3 Funds Unrestricted funds are available for use at the discretion of the trustees in furtherance ol the general objeclives of the charitable company and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by Ihe trustees for particular purposes. 17 Talbot House Children's Charity Limited (a company limited by guarantee and not having a share capital) Notes to the Financial Statements (Continuedj for the year ended 31 f¥larch 2024 1.3 Funds (Continued) Restricted funds are funds which are set to be used in accordance Vlith specific restrictions imposed by donors which have been raised by the company for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. 1.4 Incoming resources All incoming resources are included in th8 Statement of Financial Activities (SOFA) when the charity has entitlement to the funds, any performance condilions have been rriet, the amount can be measured religbly and it Is possible that the income will be received. Income from charitable activities indudes income received under contract or where entitlement to grant funding is subject to specific performance conditions and is recognised as eamed. Grant income included in this category provides funding to support pertomiance activities and is recognised where there is entitlement, certainty of receipt and the amount can be measured with reasonable certainty. Income received to deliver services over a specific period covering more than one financial year is accounted for over the specific period; related expenditure is accounted when Incurred. Investment income relates to interest earned through holding assets on deposit. 1.5 Expenditure and Irrecoverable VAT All expenditure is accounted for on an accruals basis and has. been classified under headings that aggregate all costs relaled to the category. Expenditure is recognised where there is a legal or constructive obligation to make payfflents to third parties, it is probable thal the settlement will be required and the amount of the obligation Can be measured reliably. Irrecoverable VAT is charged against the eost which the expenditure was incurred. 1.6 Support cost allocatlon Support costs are those that assist Ihe work of the charity but do not direct5y represent charitable activities and include office costs, governance costs and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity. 1.7 Tanglble fixed assets and depreciation Tangible fixed assets are stated at C05t including any incidental expenses of acquisition. Depreciation of tangible fixed assets is provided by equal annual instalrnents so as to write off the cost of the assets over their estimated useful economic lives as follows: Freehold buildings Fixtures, fittings & equipment Motor vehlcles 50 years 3- 10years 3 years Land is not depreciated. Fixed assets below a value of £100 are not capitalised. 18 Talbot House Children's Charity Limited (a company limited by guarantee and not having a share capital) Notes to the Flnancial Stalemenls (Continued) for the year ended 31 March 2024 1.8 Debtors Trade and other debtors are recognised al the seltlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid nel of any trade discounts due. 1.9 Cash at bank and in hand Cash at bank and cash in hand includes cash and short tenn highly liquid investrnents with a short maturity of three months or less from the date of acquisition or opening of the deposil or similar account. 1,10 Creditors and provisions Creditors and provisions are. recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of fund to a third paty and the amount due to settle the obl igation can be measured or estimated reliably. Creditors and provisions are normally recognised at thelr settlement after allowing for any trade discounts due. 1.11 Flnancial instruments The charity only has financial assets and linanaal liabtlities of a kind that.qualify as basic financial instruments. Basic financial Instruments are Initlally recognised at transactlon value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortlsed cost using the effective interest method. 1.12 Leases Rentals payable under operating leases are charged against income on a straight line basis over the lease tem. 1.13 Post retlrement beneflts The charitable company contributes to a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of Ihe c.haritable company. The annual contributions payable are charged to the SOFA. The charlty also contributes to a defined benefit pension scheme. The assets of the scheme are held separately from those of the charity in an independenlly administered fund. It is not possible for the charitable company to obtain sufficient infonnalion to enable it to account for the scheme as a defined benefit scheme and therefore accounts for it as a defined contribution scheme. In addition to the above accounting the scheme has agreed a schedule of contributions with participating employers that will eliminate the plan over 12 years. The charity has recognised a liability for the contributions adjusted for the time value of money and an equal expense in the SOFA. The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees, working lives with the academy trust in such a way that the pension cosl is a substantially level percentage of current and future pensionable payroll. The contfibutions are determined by the Government Actuary on the basis of quadrennial valuations using a prospective unit credit method. As stated in note 18, the TPS is a multi-employer scheme and there is insufficient information available to use defined benefit accounting. The TPS is therefore treated as a defined contribution scheme for accounting purposes and the contributions recognised in the period to which Ihey relate. 19 Talbot House Children's Charity Limited (a company limited by guarantee and not having a share capital) Notes lo the Financial Statements (Continued) for the year ended 31 March 2024 1.14 Tax The charity is an exempl charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Legal status Talbol House Chlldren's Charity is a company limited by guarantee (No 03069213) and not having a share capital. In the event of the company being wound up, Members may be required to contribute an amoiint not exceeding £1 each. Comparative Statement of Flnanclal Actlvitlés Unrestricted Designated Restrlcted funds funds funds Total 2023 Total 2022 Notes Inc0￿e from: Grants and donations Charitable activlties Investment income 54,004 2,432,167 975 41,455 95,459 2,432,167 975 74.429 2,778,266 27 Total Income 2,487,146 41,455 2,528,601 2.852.722 Expenditur8 on: Charitable activities 2.454,440 35,136 41,455 2,531,031 2.317,382 Total expenditure 2.454.440 35,136 41,455 2.531,031 2,317,382 Net movement before transfers 32,706 (35,136) { 2,430) 535,340 Transfers between funds 18 Net ￿0Vernent in funds 32.706 { 35,136) (2,430) 535,340 Reconclliation of funds Total funds brought forward 435,426 1.865.210 2.300,636 1,765,296 Total funds carried forward 468,132 1.830.074 2,298,206 2,300,636 20 Talbot House Children's Charity Limited (a company limited by guarantee and not having a share capital) Notes to the Financlal Statements (Continued) for the year ended 31 March 2024 Income from grants and donations 2024 2023 Grants 65,528 95,459 65,528 94,459 Income from charitable activitles 2024 2023 School Residential children's home 2,605,323 1,754,255 673,652 677,912 3,278,975 2,432,167 Expenditure on charltable act5vltles Activltie8 undertaken directly Support costs 2024 2023 School Residential care home 1,866,572 658.343 286,199 2,152,771 1,779,534 85,726 744.069 751,497 2,524,915 371,925 2,896,840 2,531,031 21 Talbot Hous8 Children's Charity Limited (a company limited by guarantee and not having a share capital) Note5 to the Financial Statements (Continued) for the year ended 31 March 2024 Support costs 2024 2023 Salary costs Governance costs (note 8) 358,950. 12,975 333,433 10.799 371,925 344.232 Governance costs 2024 2023 Payroll costs Audit fee Other fees 4.555 8,000 420 4,139 6,240 420 12,975 10,799 Net movement for the year This is statèd after charging: 2024 2023 Depreciation Audit remuneration 154,631 8,000 142,553 6,240 10. Analysis of staff costs and trustee remunoration and expenses Staff costs were as follows: 2024 2023 Wages and salaries Social security costs Pension costs. 1,681,823 1,440.886 154,862 139,440 160,275 140.409 1,996,960 1,720,735 22 Talbot House Chlldren's Charity Limited (a company limited by guarantee and not having a share capital) Notes to the Financial Statements (Continued) for the year ended 31 March 2024 11. Analysls of staff costs and trustee remun8ratlon and expenses (Continued) The average monthly number of employees during the year was= 2024 Number 2023 Number Average employees 62 62 The number of employees who received total ern￿Oyee benefits (exduding employer pension costs) of more than £60,000 is as foll0v￿. 2024 Number 2023 Number £60,000- £70,000 £80,000 - £90,000 The charity trustees were t￿l paid or received any other benefits from employment In the year (2023 - £nll) neither were they reimbursed expenses during the year (2023 - £nil). No charity trustee received paymetit for professional or other services supplied to the charity (2023 - £nil). The key management personnel of the charity comprise the trustees. the Chief Executive Officer. the Head of Development, Head Teacher and Residential Manager. The total employee benefits of the key management personnel of the charity were £272,926 (2023 - £262,334). 12. Tanglble fixèd assets Freehold land & buildlngs Flxtures, fittings & equipment Motor Vehicles Total Cost At 1 Aprll 2023 Additions 2,342.185 58,869 58,941 905,818 22,597 3,306,872 81,538 At 31 March 2024 2.342,185 117.810 928.415 3,388,410 Depreciallon At 1 April 2024 Charge for the year 502.683 35,097 58,868 3,275 671,647 116,259 1,233,198 154,631 Depreciation CIF 537,780 62.143 787,906 1,387,829 Net book value At 31 March 2024 1,804,405 55,667 140.509 2.000,581 At 31 March 2023 1.839,502 234,172 2,073.674 23 Talbot House Children's Charity Limited (a company limited by guarantee and not having a share capital) Notes to the Financial Statements {ContinuedJ for the year ended 31 March 2024 13. Debtors 2024 2023 Trade debtors Prepayments and accrued income 271,581 75,045 693,900 38,403 346.626 732,303 14. Creditors: amount5 falling due withln one year 2024 2023 Trade creditors Taxes and social securlty Accruals and deferred income Other creditors 111,112 38,718 79,746 20,927 66.865 26.915 699,034 13.955 250.503 806,769 1 S. Deferred Income Deferred income comprises fe8 income relating io future periods: Ba18nce at 1 April 2023 Amounts released to income eamed from charitable activities Amounts deferred in the year 682,778 (682,778) Balance at 31 March 2024 24 Talbot House Children's Charity Limited (a company limited by guarantee and not having a share capital) Notes to the Financial Statements (Continued) .for the year ended 31 March 2024 16. Provisions for Liabilltles 2024 2023 Pension liability (note 17) 16,943 36,272 16,943 36,272 17. Penslon scheme Talbol House School's employees belong to two prinapal pension schemes; the Teachers, Pension Scheme England and Wales (TPS) for academic and related slaff and The Pension Trust for non-teaching staff. Both are defined benefit schemes. The charity also operates a defined contribution scheme run by Royal London (previously Scottish Equitable). The percentage contribulions paid in to this scheme vary depending on employment contract. Deflned contribution scheme Pension contributions payable for the year ended 31 March 2024 amounted to £160.275 (2023 - £140,409). Teachers, Pension Scheme Intn)ductlon The Teachers, Penslon Scheme (TPS or scheme) is a statutory, unfunded, defined benefit occupational scheme, governed by the Teachers. Pensions Regulations 2010 (as amended). and the Teachers, Pension Scheme Regulations 2014 (as arnended). These regulations apply to teachers In schools and other educatlonal establishrnents. including academies, in England and Wales thal are maintained by local authorilies. In addition. teachers in many independent and voluntary-aided schools and teachers and Ipcturen In some establishments of further and higher education may be eligible for membership. Membershlp is automatic for full-time teachers and lecturers and, from 1 January 2007, automatic too for teachers and lecturers in part-lime employment following appointrnent or a change of contract. Teachers and lecturers are able to opt oul of the TPS. 25 Talbot House Chlldren's Charity Limited (a company limited by guarantee and not having a share capital Notes to the Financial Statements (Continued) for the year ended 31 March 2024 17. Pension scheme (Contlnued) The Teachers, Pension Budgeting and Valuation Account Although members may be employed by various bodies. their retirement and other pension benefits are set out in regulations made under the Superannuation Act (1972) and Public Ser4tice Pensions Act (2013) and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and members contribute on a 'pay as you go 'basis - contributions from members. along with those made by employers, are credited to the Exchequer under arrangements governed by the above Acts. The Teachers, Pensions Regulations 2010 require an annual account, the Teachers, Pension Budgeting and Valuation Account, lo be kept of receipts and expenditure (including the cost of pension increases). From 1 April 2001, the Account has been credited with a real rate of return, which is equivalent to assuming that the balance in the Account is invested in notional investrnents that produce that real rate of return. Valuatlon of The Teachers. Penslon Scheme The latest valuation of the Teachers, Pension Scheme has now taken place. In Ilne with dlreclions issued by HM Treasury and using membership data as at 31 March 2016. As a result of this valuation TPS employers will pay an increased contribution rate of 23.68°/D from September 2019 (this includes the administration levy of 0.8 % }. The timing of the implementation is to align its introduction with employers. budget planning cycles. Until then, employers wlll pay the currenl rate of 16.480/.. A copy of the latest valuation report can be found by following this link to the Teachers, ebsite si n Schem Scheme Changes The arrangemenls for a reformed Teachers. Pension Scheme, in line with the recommendations made by Lord Hutton, in particular the introduction of a Career Average Revalued Earnings (CARE) scheme, were implemented from 1 Aprll 2015. In December 2018, the Court of Appeal held that Iransitional protection provisions contained in the refomied judicial and firefighter pension schemes, introduced as part of public seNlce pension reforms In 2015, gave rise to direct age discrimination and were therefore unlawful. The Supreme Court, in a decisioh made in June 2019. have rejected the Governmenl's application for permission to appeal the Court of Appeal's ruling. The case will now be referred to an Employment Tribunal for a decision regarding the remedy ￿lCh will need to be offered to those members of the two schemes who V￿re subject of the age discriminatlon. HM Treasury are clear that the ruling has implications for the other public service schemes, including the Teachers. Pension Scheme. Those implications are currently being considered and any impact on scheme costs is expected to be looked at viithin the next scheme valuation, ￿1c￿ is currenljy scheduled to be based on April 2020 data and implemented in April 2023. 26 Talbot House Children's Charity Limited (a company limlted by guarantee and not having a share capital) Notes to the Financial Statements (Continued) for the year ended 31 March 2024 17. Penslon scheme (Contlnued) The Pensions Trust The company participates in the scheme. a multi-employer scheme which provides benefits to some 638 non- associaled participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme. The scheme is subject to the funding legislation outllned in the Pensions Act 2004 which came into force on 30 December 2005. This, together with doctsments issued by the Pensions Regulator and Technical Actuarlal Standards by the Financial Reporting Council. set out in the framevnrk for funding defined benefit occupational pension schemes in the UK. The scheme is classified as a last-man standlng arrangement.. Therefore the company IS Potentlally liabl8 for other participating employers, obligations if those employers are unable to meel their share of the schem8 deficit following withdrawal from Ihe scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme. A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m. liabilities of £831.9m and a deficil of £31.6m. To eliminate this funding shortfall, the Trustee has asked the partlcipating employers to pay additional contributions to the scheme as follows: Deficlt contributlons From 1 April 2022 to 31 January 2025: £3.312,000 per annum (payablp monthly) Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies. Note that the scheme's prevlous valuation carried out with an effective date of 30 Sepiember 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows: Deficit contributions From 1 April 2019 to 30 September 2025: £11,243,000 per annurn (payable monthly and increasing by The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities. Where the scheme is In deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement thal relates to the deficil. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost. Present values of provisions 31 March 2024 £'ooo 17 31 March 2023 31 March 2022 £'ooo £'ooo 36 57 present value of provision 27 Talbot House Children's Charity Limited (a company limited by guarantee and not havlng a share capital) Notes to the Financial Statements (Continued) for the year ended 31 March 2024 17. Pension scheme (Contlnued) Reconciliation of opening and closing provisions Year Ending Year Ending 31 March 2024 31 March 2023 £'ooo £'ooo 36 57 Provision at start of period Unwinding of the dlscount factor (interest expanse) Deficit contribution paid Remeasurements - impact of any change in assumptions Provision at end of period 17 36 Incpme and expenditure impact Year Endlng Year Endlng 31 March 2024 31 March 2023 £'ooo £'ooo Interest expense Remeasurements- impact of any change in assumptions Remeasurements - amendments to the contribution schedule Contributions paid in respect of fulure seDiice' Costs recognised in income and expenditure account Includes defined contribukn'on schemes and future serrfiee contributions (i.e. excluding any deficlt reduction payments) to defined benefit schemes which are treated as defined contribution schemes. Assumptions 31 March 2024 /0 per annum 31 March 2023 /0 per annum 31 March 2022 /0 per annum Rate of discount 5.31 5.52 2.35 The discount rates shown above are the equivalent single discount rates which. when used to discount the fulure recovery plan contributions due, ￿￿Uld give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions. 28 Talbot House Children's Charity Limited (a company Ilmited by guarantee and not having a share capital) Notes to the Financlal Statements (Continuedj for the year ended 31 March 2024 18. Funds Year ended 31 March 2024 At 31 March 2024 2023 In¢ome Expendlture Transfers Unrestricted funds 468,132 3,325,129 (2.839,160) { 315,504) 638,597 Deslgnated funds Property fund Capital prolects IT Upgrade 1,830,074 (32,713) 6,504 244,000 65,000 1,804,405 244,000 65,000 Restricted funds Devolved Formula Capital 25,507 (25,507) Total 2,298,206 3,350,636 (2,896,840) 2,752,002 Year ended 31 M h 2023 At 1 Aprll 2022 At 31 March 2023 Income Expendllure Transfers Unrestricted funds 435,426 2,487,146 { 2,454,440) 468,132 Deslgnated fund8 Property fund 1.865,210 (35,136) 1,830,074 Restricted funds Devolved Formula Capital 41.455 {41,455) Total 2,300,636 2,528,601 (2,531,031 ) 2,298,206 Deslgnated funds Property fund During the year the Trustees elected to designate a property fund, with a value equivalent to the carrying value of the freehold land and buildings held by the charity. Restricted funds Devolved Formula Capital This income is received for improvements to the building and other facilities or capital repairslrefurbishment and minor work. Capital projects - For various capital refurbishment across the school site. IT Upgrade- Upgrade to the IT system. 29 Talbot-House Children's Charity Limited (a company limited by guarantee and not having a share capital) Note5 to the Financial Statements (Continuedj for the year ended 31 March 2024 19. Analysis of net assets between funds Year ended 31 March 2024 Unrestricted Restricted Funds Funds Total Tangible fixed assets Net current assets Provislons for liabiliti8S 2,000.581 768,364 (16,943) 2,000,581 768,364 (16.943) 2,752.002 2,752.002 19. Analysis of net assets between funds (Continued) Year ended 31 March 2023 Unrestricted Restricted Funds Funds Total Tangible fixed assets Net current assets Provisions for liabilities 2,073,674 260,804 (36,272) 2,073,674 260,804 < 36,272) 2,298,206 2,298,206 30 Talbot House Children's Charity Limited (a company limited by guarantee and not having a share capital) Notes to the Flnancial Statements (Continued) for th6 year ended 31 March 2024 20. Related party transactions There have been no transactions incurred with related parties during Ihe period (2023- none). 21. Reconciliatlon of net (deficit)Isurplus to net cash flow from operating actlvSties 2024 2023 Net (deficit)Isurplus for the year Depreciatlon Increase in debtors Increase in creditors.. due within one year Decrease creditors: due after more than one year 453,796 (2,430) 154,631 142,553 385,677 (191,089) (556,266) 149,710 (19,329) (20,624) 418,509 78,120 22. Analysis of Changes in net debt At 1 Aprll 2023 Cash At 31 March flows 2024 Cash and cash equivalents Cash at bank and in hand 335,270 336,971 672.241 Total 335,270 336,971 672.241 31