Company registration number: 03826440 Charity registration number: 1077228
Rainbow Services (Harlow)
(A company limited by guarantee)
Annual Report and Financial Statements for the Year Ended 31 March 2023
Lambert Chapman LLP 3 Warners Mill Silks Way Braintree Essex CM7 3GB
Rainbow Services (Harlow)
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 7 |
| Statement of Trustees' Responsibilities | 8 |
| Independent Examiner's Report | 9 |
| Statement of Financial Activities | 10 |
| Balance Sheet | 11 |
| Statement of Cash Flows | 12 |
| Notes to the Financial Statements | 13 to 24 |
Rainbow Services (Harlow)
Reference and Administrative Details
Chairman C S Greenhill Trustees A S J Brooking J Das N Garala C S Greenhill P Robinson F M Sinnott Secretary/Chief Executive Officer S P Summerfield Charity Registration Number 1077228 Company Registration Number 03826440 Registered Office The Rainbow Centre 2 Wych Elm Harlow Essex CM20 1QP Independent Examiner Lisa Greenwood FCCA Lambert Chapman LLP 3 Warners Mill Silks Way Braintree Essex CM7 3GB
Page 1
Rainbow Services (Harlow)
Trustees' Report
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 March 2023.
Objectives and activities
Objects and aims
Rainbow Services (Harlow), known as Rainbow Services, works to alleviate the effects of disadvantage, poverty, deprivation, and social exclusion through imaginative projects that support, enable, and develop people and organisations, to stimulate beneficial change in the local community.
Rainbow Services aims to provide quality services and to targeting those services into areas where there are no existing provisions, or where those who are disadvantaged are poorly served.
Where appropriate, research will be undertaken to identify unmet need within the local community and, wherever possible, we will encourage community development through the provision of accessible and affordable services and activities. Services will be categorised into three priority areas to ensure effective allocation of resources. These categories are: supporting, enabling and developing.
All of our work is underpinned by our values of equality, inclusion, and collaboration, supporting our stated objects, which are to combat poverty and disadvantage, and to improve the quality of life for local groups and individuals.
Public benefit
The Trustees believe that the activities undertaken within the Charity, to fulfil the aims and objectives, are done so to further the public benefit.
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Achievements and performance
A massive thank you to those funders for funding us this year! It has been a busy one, as ever, and we are really proud of what we have achieved - Rainbow Services has an excellent reputation and is known for its delivery and partnership working.
Here are just a few of the highlights:
The Rainbow Centre and Infrastructure Support Services
The Rainbow Centre is a voluntary sector campus and hub, where a range of community-based organisations share office space, facilities and internal support services. Casual desk space, a library resource, meeting rooms, and access to IT facilities are also offered to local groups and organisations.
Rainbow Services offers infrastructure support and development services to other voluntary and community-based organisations in Harlow. This includes providing information, advice, networking and learning opportunities and taking on a representational and influencing role in working with statutory and government agencies. The representation and liaison role is undertaken with local and county wide strategic partnerships in situations where voluntary sector input is imperative to the planning, development and delivery process.
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Rainbow Services (Harlow)
Trustees' Report
During this year, we had 215 local not for profit groups affiliated with us, all of which receive the following free of charge:
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Weekly e-bulletin with news relevant to the voluntary sector (inc. free advertising for the sector);
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Quarterly Voluntary Sector Forum, face to face networking with guest speakers;
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Annual public facing “Market Event” in Harlow Town Centre; and
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Unlimited 1:1 consultancy on all not-for-profit matters from setting up, to funding, to effective communications.
Over 20 organisations have been helped in this way this year with around 180 hours of free consultancy being given.
Here is just one example of the feedback received:
“ Thank you so much for checking the proposal and talking to me this morning, it's been incredibly useful. I'll make the amends and send it to my committee for feedback with the hope to submit on Friday. Once again, thank you so much! ” - Harlow Hindu Society.
In addition to this, we carry out DBS checks for members and provide training as appropriate.
We also connect businesses with the community - for example, we distributed around 100 Easter eggs at Easter, and over 100 toys at Christmas, donated by local businesses, at children’s parties we held for refugee families.
Our infrastructure project is funded by Essex County Council and Harlow Council.
Harlow Community Hub
The Harlow Community Hub is an excellent example of Rainbow Services using its place in the community to bring together a partnership which has had huge benefits to the community of Harlow. Born out of our response to the Covid 19 pandemic, the Harlow Community Hub is funded by Harlow Council, Harlow Health Centres Trust, the Integrated Care Board, and Essex County Council.
By bringing together a partnership consisting of Rainbow Services, Harlow Council, Foodbank Harlow, Citizens Advice Bureau, Volunteer Service, Mind, and Integration Support Service, we have been able to establish a crisis service, consisting of a helpline for four hours each day, and pop ups at key locations around Harlow.
The in-house partnership means this is more than just a signposting service, and with dedicated staff from each organisation it means we can respond in a fast holistic way to crisis, continuing to work with the family or individual for however long it takes to move them out of the crisis situation - this is one man’s story:
Jon (not real name) was placed in a Harlow hotel by his local authority. He had just come out of hospital after attempting to take his own life, He had been sectioned under the Mental Health Act, and was drinking heavily. He had no food and no way of cooking in the hotel room. He approached the Hub team at a Pop Up they were holding at the hotel he was staying in.
The team provided Jon with hot food vouchers, and sessions with Mind to improve mental health and alcohol addiction. CAB talked to him about his housing situation, and he was provided with a slow cooker so that he could access Bounty Club food and cook for himself. The team continued to work with Jon, checking on his welfare regularly, and when he was ready, he began volunteering in a kitchen - Jon is a trained chef.
Six months on and Jon has been re-housed back in Chelmsford near his son and support network. His mental health has improved greatly, he has stopped drinking, and he is starting to look for paid work again as a chef, using his volunteer experience to help him.
On the day that Jon left for his new home he came into the Harlow Community Hub with his son to express his thanks to the whole team for everything they had done for him.
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Rainbow Services (Harlow)
Trustees' Report
In the last year, the Harlow Community Hub has helped over 1,400 households in Harlow.
We also ran our Cook and Eat sessions funded by Active Essex, where people joined a four-week course, learned how to cook nutritious meals and took away a plug-in cooking appliance such as a slow cooker - especially useful for those staying in hotels without cooking facilities.
In 2022 we also partnered with Michael Roberts Charitable Trust and Phoenix Resource Centre to run a school uniform exchange over the summer holidays. This proved hugely successful, and we combined our Hub service so that we could reach even more people.
In the winter, we were able to access and distribute to many groups and individuals various winter hardship funds. We used these to ensure vulnerable residents had access to food, essentials, and energy during the winter months and into the spring. We built partnerships with VCSE groups, schools, and caterers to enable this.
Youth Project
Our Youth Project works with young people aged 14-18 who have disengaged from education - we take referrals from schools, Essex Youth Services, the Police and Fire Services, parents, and other agencies, as well as working with the Youth Offending Team. The primary aim is to re-engage the young people with education and positive role models, and we do this through teaching carpentry at our purpose-built workshop, demonstrating to the young people that there are ways of earning a good living and being part of a community without joining a criminal gang. They are supported to develop their skills in communication, team working, initiative and woodwork whilst also being encouraged to open up in a friendly, non-threatening environment.
In addition, the young people can gain qualifications in carpentry and construction and are supported into other activities such as work experience and apprenticeships.
We work with around 130 young people each year, here is one young person’s story:
James (not real name) joined our 12-week programme aged 15 - he was no longer in school and was in frequent trouble with the police. Our youth team provide a unique style of working in our carpentry workshop which builds respect and trust - James quickly began to work well with the team and built a good relationship, opening up and talking about his experiences and his hopes for life.
As a result of our project, James has stopped getting into trouble with the police and he gained qualifications in Health and Safety and Carpentry Hand Tools. We then provided James with a funded place at Harlow Fire Station's Firebreak, where he excelled and he was soon offered a place with the fire cadets - he now has aspirations of becoming a fire fighter.
Following such significant improvements in behaviour, James was allowed to return to school to study English and Maths GCSE; and he has now joined our 12-week Community Project. James also now volunteers as a mentor to other young people on the project.
For his incredible achievements, James recently received the Jack Petchey award.
The youth project at Rainbow Services continues to go from strength to strength. We now have six, half day sessions each week, with around 12 young people in each cohort.
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Rainbow Services (Harlow)
Trustees' Report
Community Builder
Our Community Builder project aims to reduce social isolation and loneliness among the over 65’s. It is funded by The National Lottery, Garfield Weston, and Mulberry Trust.
We have over 800 beneficiaries across Harlow and run over 24 clubs each week. We also run larger events each month, including trips to the coast, Christmas dinner, theatre trips, afternoon tea, and safe and social events. These are events where organisations, such as the police, come in to talk about protecting against scams, for example. When asked in feedback “what does Rainbow Services mean to you?”, one club member replied “everything!”.
We also have a dedicated Dementia role within the Community Builder team, and we run dementia friendly clubs and activities, such as walks around the park, as well as training other organisations in Harlow to become dementia friendly.
The Community Builder team also offers seated exercise classes across all clubs to help build core strength to reduce the risk of falls and unnecessary hospitalisation.
In 2022-23 we secured a further three years of grant funding from The National Lottery to continue the service, as well as grants from Garfield Weston and The Mulberry Trust.
Rainbow Family Contact Centre
This year we have opened the Rainbow Family Contact Centre, a supportive environment where non-resident parents can see their children if the parental relationship has broken down. This is funded by Essex Community Foundation and The National Lottery.
The family contact centre had been running in Harlow for 28 years, but key members of the organisation running it wanted to retire. We worked with them to identify a new voluntary sector organisation to take over, but it was established that there wasn’t one in a position to do so, even in partnership with us. Rainbow took over the running at the end of 2022. Rainbow Services will never compete with another not-for-profit organisation - our projects are only there to fill gaps in local provision, and this was clearly a gap which needed to be filled.
When we reopened, there were parents who hadn’t seen their children since the centre closed due to Covid two years before, there were many very emotional reunions.
Core20Plus5
Core20Plus5 - Our Health Matters is an NHS England funded project to tackle health inequalities. Our project co-ordinator works two days a week and recruits local health champions with lived experience to be a conduit for information both from the NHS but, more importantly, back into the NHS in order to influence pathways to care which might be leading to inequalities.
We have been working with the gypsy and traveller community in Harlow, partnering with Macmillan Cancer Care to influence outcomes for both cancer and mental health care within the community. We have already run a number of successful events and have signed up volunteers from the gypsy and traveller community.
West Essex Community Action Network (WECAN)
WECAN is a consortium of Rainbow Services, in Harlow, Voluntary Action Epping Forest, in Epping Forest, and UCAN (Uttlesford CVS) in Uttlesford. Together we run projects which cover West Essex.
Rainbow Services is currently delivering the Find Your Active project for WECAN. We have employed one member of staff to cover West Essex, providing a one-to-one service to get people who are currently inactive and also possibly isolated, enjoying regular exercise to benefit both mental and physical health.
Page 5
Rainbow Services (Harlow)
Trustees' Report
Other events
Other notable events in the year include the request for us to open the new B&M store in Harlow alongside receiving a generous donation from all the team at B&M as well as our new recruit, Bob! He is a rescue dog belonging to Lesley Peacock who works at Harlow Community Hub for Rainbow Services. Bob has just passed his Pets as Therapy exam and he will be visiting our pop ups and outreach events to help people feel comfortable and talk about things that worry them.
Financial review
The total reserves of the Charity are £305,371 at the Balance Sheet date. Of this, £36,023 relates to restricted funds and so the Charity's available reserves, having deducted designated fund balances, amount to £244,848 which equates to just under six month's worth of expenditure.
Policy on reserves
Rainbow Services is a flexible and reflective organisation which can respond quickly to opportunities, change and emerging issues. As such the Trustees have decided that the organisation will hold reserves appropriate to the level of activities and to reflect the importance that beneficiaries and funders may place on the ongoing viability of the organisation. To underpin this, the reserves policy was developed, giving due consideration to all the risks and opportunities that the charity currently faces or may face in the future. Action relating to the management of the reserve position takes place when appropriate to ensure compliance with the accounting and reporting regulations and to promote best practice.
Trustees and officers
The trustees and officers serving during the year and since the year end were as follows:
Trustees: A S J Brooking (appointed 17 June 2022) J Das J S Frazer (resigned 10 June 2022) N Garala C S Greenhill M Mandat (appointed 2 September 2022 and resigned 20 October 2023) A Millar (resigned 10 June 2022) P Robinson (appointed 6 December 2022) F M Sinnott M Sortwell (appointed 17 June 2022 and resigned 13 June 2023) Chairman: C S Greenhill Secretary: S P Summerfield
Structure, governance and management
Nature of governing document
Rainbow Services (Harlow) has been an independent charity and company limited by guarantee since 16th August 1999, charity registration no.1077228, company no. 3826440.
The charity is governed by its Memorandum and Articles of Association.
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Rainbow Services (Harlow)
Trustees' Report
Recruitment and appointment of trustees
Open recruitment takes place as and when there are Trustee vacancies, and all applicants are selected against a Trustee job description and person specification.
Induction and training of trustees
All new Trustees are inducted using our Trustee welcome pack and training material.
Arrangements for setting key management personnel remuneration
Our Remuneration Committee meet in January to discuss staff salaries for the coming year. The Committee’s recommendations are then taken to the full board in March to ratify for implementation in April. We look at local market rates and inflation when setting salary uplift, as well as national comparison reports from organisations such as the National Association for Voluntary and Community Action (NAVCA).
Organisational structure
Rainbow Services in governed by the Board of Trustees, who delegate operational responsibility to the CEO (Sharon Summerfield). Full Board meetings are held once a quarter when financials and strategic direction is discussed and set. There are also sub-committees - a Remuneration Committee, an Audit Committee and a Communications Committee - which meet separately throughout the year.
Major risks and management of those risks
Consideration of risks by the Trustees
An important aspect of the Trustees' governance responsibilities focusses on the organisation's Risk Management Framework. This was developed to ensure a consistent approach to all areas of financial, organisational and operational risk.
An action plan is in place to mitigate all identified risk and this is reviewed quarterly, amended appropriately and any required actions implemented. The action plan and all associated risk areas are monitored by the internal Audit Committee which reports directly to the Board of Trustees.
The Trustees examine the major risks and opportunities that the charity faces each financial year when preparing, updating and monitoring the strategic plan. The charity has developed systems and processes to review and to control these risks and to mitigate any impact that they may have on the charity in the short, medium or longer term.
Small companies provision statement
This report has been prepared in accordance with the small companies regime under the Companies Act 2006.
The annual report was approved by the trustees of the charity on ................................................................................ 13 November 2023 and signed on its behalf by:
......................................... C S Greenhill Chairman and trustee
Page 7
Rainbow Services (Harlow)
Statement of Trustees' Responsibilities
The trustees (who are also the directors of Rainbow Services (Harlow) for the purposes 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), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". The report and accounts have been prepared in accordance with the provisions in the Companies Act 2006 relating to small companies.
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they 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 its income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records that can 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.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Approved by the trustees of the charity on ............................................................... and signed on its behalf by: 13 November 2023
......................................... C S Greenhill Chairman and trustee
Type text here
Page 8
Rainbow Services (Harlow)
Independent Examiner's Report to the trustees of Rainbow Services (Harlow) ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2023.
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 the Company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, 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:
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accounting records were not kept in respect of Rainbow Services (Harlow) as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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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
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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.
L K Greenwood
...................................... Lisa Greenwood FCCA Lambert Chapman LLP 3 Warners Mill Silks Way Braintree Essex CM7 3GB
13 November 2023 Date:.............................
Page 9
Rainbow Services (Harlow)
Statement of Financial Activities for the Year Ended 31 March 2023 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
| Note Income and Endowments from: Donations and legacies 3 Other trading activities 4 Investment income 5 Total income Expenditure on: Charitable activities 6 Total expenditure Gains/losses on investment assets Net income Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 17 |
Unrestricted funds £ 79,467 53,344 912 133,723 (120,665) (120,665) (2,344) 10,714 10,714 258,634 269,348 |
Restricted funds £ 403,599 16,520 - 420,119 (384,096) (384,096) - 36,023 36,023 - 36,023 |
Total 2023 £ 483,066 69,864 912 553,842 (504,761) (504,761) (2,344) 46,737 46,737 258,634 305,371 |
Total 2022 £ 412,466 67,771 361 |
|---|---|---|---|---|
| 480,598 | ||||
| (490,879) | ||||
| (490,879) 12,403 |
||||
| 2,122 | ||||
| 2,122 256,512 |
||||
| 258,634 |
Included within the Charity's restricted funds above is income which has been recognised under the requirements of the Statement of Recommended Practice where the expenditure will be incurred in a later period. The note related to restricted funds (Note 17) clearly identifies funds that are yet to be expended.
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2022 is shown in note 17.
The notes on pages 13 to 24 form an integral part of these financial statements. Page 10
Rainbow Services (Harlow)
(Registration number: 03826440) Balance Sheet as at 31 March 2023
| Note Fixed assets Investments 13 Current assets Debtors 14 Cash at bank and in hand 15 Creditors: Amounts falling due within one year 16 Net current assets Net assets Funds of the charity: Restricted income funds Restricted funds 17 Unrestricted income funds Unrestricted funds Total funds 17 |
2023 £ 117,163 14,762 333,661 348,423 (160,215) 188,208 305,371 36,023 269,348 305,371 |
2022 £ 119,507 9,665 308,465 |
|---|---|---|
| 318,130 (179,003) |
||
| 139,127 | ||
| 258,634 | ||
| - 258,634 |
||
| 258,634 |
For the financial year ending 31 March 2023 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
The financial statements on pages 10 to 24 were approved by the trustees.
They were authorised for issue on .......................................................... and signed on their behalf by: 13 November 2023
......................................... C S Greenhill Chairman and trustee
The notes on pages 13 to 24 form an integral part of these financial statements. Page 11
Rainbow Services (Harlow)
Statement of Cash Flows for the Year Ended 31 March 2023
| Note Cash flows from operating activities Net cash income Adjustments to cash flows from non-cash items Investment income 5 Revaluation of investments Working capital adjustments Increase in debtors 14 Decrease in creditors 16 Net cash flows from operating activities Cash flows from investing activities Interest receivable and similar income 5 Net increase in cash and cash equivalents Cash and cash equivalents at 1 April Cash and cash equivalents at 31 March Reconciliation of net cash flow to movement in net funds Increase in cash Net funds at 1 April 2022 Net funds at 31 March 2023 |
2023 £ 46,737 (912) 2,344 |
|---|---|
| 48,169 (5,097) (18,788) |
|
| 24,284 912 |
|
| 25,196 308,465 |
|
| 333,661 | |
| 25,196 308,465 |
|
| 333,661 |
All of the cash flows are derived from continuing operations during the above two periods.
The notes on pages 13 to 24 form an integral part of these financial statements. Page 12
Rainbow Services (Harlow)
Notes to the Financial Statements for the Year Ended 31 March 2023
1 Charity status
The charity is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £10 towards the assets of the charity in the event of liquidation.
The address of its registered office is: The Rainbow Centre 2 Wych Elm Harlow Essex CM20 1QP
2 Accounting policies
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Basis of preparation
Rainbow Services (Harlow) meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
Judgements
Apart from those judgements involving estimations, the management team have not made any judgements in the process of applying the Charity's accounting policies that have significant effect on the amounts recognised in the accounts.
Key sources of estimation uncertainty
There are no key assumptions concerning the future or other key estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
Income and endowments
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
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Rainbow Services (Harlow)
Notes to the Financial Statements for the Year Ended 31 March 2023
Donations and legacies
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.
Grants receivable
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
Deferred income
Deferred income represents income from grants for which recognition criteria has not yet been met. Deferred income is reported within the Statement of Financial Activities once the recognition criteria has been met.
Other trading activities
Other trading income relates to revenue streams outside of the Charity's main activities and includes consultancy work, DBS checks, management fees and rental charges.
Investment income
Bank interest is recognised when received in the bank.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources.
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including independent examination fees.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Fixed asset investments
Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.
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Rainbow Services (Harlow)
Notes to the Financial Statements for the Year Ended 31 March 2023
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the advancement of the charity's objects.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.
Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.
Restricted income funds are those provided for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
Pensions and other post retirement obligations
The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
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Rainbow Services (Harlow)
Notes to the Financial Statements for the Year Ended 31 March 2023
3 Income from donations and legacies
| Unrestricted funds General £ Donations and legacies; Grants 78,462 Donations 1,005 79,467 4 Income from other trading activities Unrestricted funds General £ Trading income; Other income 53,344 53,344 5 Investment income Unrestricted funds General £ Interest receivable and similar income; Interest receivable on bank deposits 912 |
Restricted funds £ 375,833 27,766 403,599 Restricted funds £ 16,520 16,520 Restricted funds £ - |
Total 2023 £ 454,295 28,771 483,066 Total funds £ 69,864 69,864 Total 2023 £ 912 |
Total 2022 £ 396,283 16,183 |
|---|---|---|---|
| 412,466 | |||
| Total 2022 £ 67,771 |
|||
| 67,771 | |||
| Total 2022 £ 361 |
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Rainbow Services (Harlow)
Notes to the Financial Statements for the Year Ended 31 March 2023
6 Expenditure on charitable activities
| Note Direct costs Sundry expenses Bank charges Staff training Volunteer expenses Rent and rates Light, heat and power Insurance Telephone and fax Computer software and maintenance costs Printing, postage and stationary Trade subscriptions Travel and subsistence Advertising Legal and professional fees Repairs and maintenance Cleaning Staff costs 10 Governance costs 7 |
Unrestricted funds General £ 7,725 1,022 112 - 240 4,080 5,333 493 803 3,215 2,650 361 908 381 1,915 2,976 4,345 82,183 1,923 120,665 |
Restricted funds £ 128,568 2,179 199 446 699 5,920 14,275 2,118 2,050 5,841 1,699 50 2,197 1,075 2,013 - - 213,165 1,602 384,096 |
Total 2023 £ 136,293 3,201 311 446 939 10,000 19,608 2,611 2,853 9,056 4,349 411 3,105 1,456 3,928 2,976 4,345 295,348 3,525 504,761 |
Total 2022 £ 164,826 3,009 309 1,852 1,176 7,500 17,827 2,710 3,053 14,605 4,171 697 2,191 1,362 3,605 2,720 7,912 250,104 1,250 |
|---|---|---|---|---|
| 490,879 |
Included within the expenditure analysed above, there are governance costs of £3,525 (2022 - £1,250) which relate directly to charitable activities. See note 7 for further details.
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Rainbow Services (Harlow)
Notes to the Financial Statements for the Year Ended 31 March 2023
7 Analysis of governance and support costs
Governance costs
| Independent examiner fees Examination of the financial statements Other fees paid to examiners 8 Net incoming/outgoing resources Net incoming/(outgoing) resources for the Other non-audit services |
Unrestricted funds General £ 760 1,163 1,923 year include: |
Restricted funds £ - 1,602 1,602 |
Total 2023 £ 760 2,765 3,525 2023 £ 3,525 |
Total 2022 £ 620 630 |
|---|---|---|---|---|
| 1,250 | ||||
| 2022 £ 1,250 |
9 Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year. No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
10 Staff costs
The aggregate payroll costs were as follows:
| Staff costs during the year were: Wages and salaries Social security costs Pension costs |
2023 £ 277,036 13,922 4,390 295,348 |
2022 £ 233,905 12,276 3,923 |
|---|---|---|
| 250,104 |
The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:
| Average head count | 2023 No 21 |
2022 No 18 |
|---|---|---|
No employee received emoluments of more than £60,000 during the year.
The total employee benefits of the key management personnel of the charity were £46,056.
Page 18
Rainbow Services (Harlow)
Notes to the Financial Statements for the Year Ended 31 March 2023
11 Independent examiner's remuneration
| 11 Independent examiner's remuneration | ||
|---|---|---|
| Examination of the financial statements Other fees to examiners All other assurance services |
2023 £ 760 2,765 |
2022 £ 620 |
| 630 |
12 Taxation
The charity is a registered charity and is therefore potentially exempt from taxation to the extent that income or gains are applied exclusively to charitable purposes.
13 Fixed asset investments
| 13 Fixed asset investments | ||||
|---|---|---|---|---|
| Other investments Other investments Cost or Valuation At 1 April 2022 Revaluation At 31 March 2023 Net book value At 31 March 2023 At 31 March 2022 |
2023 £ 117,163 Listed investments £ 119,507 (2,344) 117,163 117,163 119,507 |
2022 £ 119,507 |
||
| Total £ 119,507 (2,344) 117,163 117,163 119,507 |
Page 19
Rainbow Services (Harlow)
Notes to the Financial Statements for the Year Ended 31 March 2023
14 Debtors
| 14 Debtors | ||
|---|---|---|
| Trade debtors Prepayments Accrued income Other debtors 15 Cash and cash equivalents Cash on hand Cash at bank |
2023 £ 2,041 5,356 2,000 5,365 14,762 2023 £ 848 332,813 333,661 |
2022 £ 2,399 - - 7,266 |
| 9,665 | ||
| 2022 £ - 308,465 |
||
| 308,465 |
16 Creditors: amounts falling due within one year
| 16 Creditors: amounts falling due within one year | ||
|---|---|---|
| Trade creditors Other creditors Accruals |
2023 £ 4,584 2,307 153,324 160,215 |
2022 £ 8,329 24,367 146,307 |
| 179,003 |
Page 20
Rainbow Services (Harlow)
Notes to the Financial Statements for the Year Ended 31 March 2023
| 17 Funds Unrestricted funds General General Designated Designated - Redundancy Designated - IT & Equipment Total unrestricted funds Restricted funds Harlow Community Hub Youth Project Community Builder Rainbow Family Contact Centre Core20Plus5 Thriving Communities COVID-19 Harlow Community Fund Total restricted funds Total funds |
Balance at 1 April 2022 £ 234,134 21,000 3,500 24,500 258,634 - - - - - - - - - 258,634 |
Incoming resources £ 133,723 - - - 133,723 152,682 59,119 127,625 7,587 18,638 50,065 1,342 3,061 420,119 553,842 |
Resources expended £ (120,665) - - - (120,665) (146,135) (54,917) (120,590) (6,922) (16,044) (35,173) (1,342) (2,973) (384,096) (504,761) |
Transfers £ - - - - - 14,000 - - - - (14,000) - - - - |
Other recognised gains/(losses) £ (2,344) - - - (2,344) - - - - - - - - - (2,344) |
Balance at 31 March 2023 £ 244,848 21,000 3,500 |
|---|---|---|---|---|---|---|
| 24,500 | ||||||
| 269,348 | ||||||
| 20,547 4,202 7,035 665 2,594 892 - 88 |
||||||
| 36,023 | ||||||
| 305,371 |
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Rainbow Services (Harlow)
Notes to the Financial Statements for the Year Ended 31 March 2023
| Unrestricted funds General General Designated Designated - Redundancy Designated - IT & Equipment Total unrestricted funds Restricted Restricted Total funds |
Balance at 1 April 2021 £ 226,304 21,000 5,000 26,000 252,304 4,208 256,512 |
Incoming resources £ 137,828 - - - 137,828 342,770 480,598 |
Resources expended £ (143,901) - - - (143,901) (346,978) (490,879) |
Transfers £ 1,500 - (1,500) (1,500) - - - |
Other recognised gains/(losses) £ 12,403 - - - 12,403 - 12,403 |
Balance at 31 March 2022 £ 234,134 21,000 3,500 |
|---|---|---|---|---|---|---|
| 24,500 | ||||||
| 258,634 - |
||||||
| 258,634 |
Page 22
Rainbow Services (Harlow)
Notes to the Financial Statements for the Year Ended 31 March 2023
The specific purposes for which the funds are to be applied are as follows:
Harlow Community Hub - the aim of this project is to bring together various other local community based charities in order to further the main aims of the Charity. A variety of different events and initiatives were run to aid the local community including cooking courses and school uniform exchange. Income totalling £152,682 was received in the year from Essex County Council, Harlow District Council, Active Essex, Harlow Health Centre Trust, WECCG as well as smaller donations
Youth Project - this project aims to assist young people who have disengaged from education with the aim to re-enroll them back in school or other institutions such as Police and Fire Services. £59,119 was received in the year from a variety of donors - with the main benefactors being Essex Police and Essex Community Foundation contributing £48,629. Strawberry Star granted £6,000 specifically towards the workshop project.
Community Builder - the project aims to reduce social isolation and loneliness among the over 65’s. Activities offered include trips to the coast, Christmas dinner, theatre trips, afternoon tea and other social events. We also have a dedicated Dementia role within the Community Builder team, and so we run dementia friendly clubs, and activities such as walks around the park, as well as training other organisations in Harlow to become Dementia Friendly. The Community Builder Team also offers seated exercise classes across all clubs to help build core strength to reduce the risk of falls and unnecessary hospitalisation. £127,625 was granted in the year from various benefactors including but not limited to Big Lottery, Garfield Western and Mulberry Trust.
Rainbow Family Contact Centre - this year we have opened the Rainbow Family Contact Centre, a supportive environment where non-resident parents can see their children if the parental relationship has broken down. This is funded by Essex Community Foundation and The National Lottery. This project has received funding in the year amounting to £7,587 - £7,270 was received from Big Lottery with the remaining £317 coming from other donations.
Core20Plus5 - Our Health Matters is an NHS England funded project to tackle health inequalities. Our Project Co-ordinator works two days a week and recruits local health champions with lived experience to be a conduit for information both from the NHS, but more importantly back into the NHS in order to influence pathways to care which might be leading to inequalities. Income in the year came from WECCG and totalled £18,638.
Thriving Communities - also known as “Let’s Get Connected” - this project was a short-term project where Rainbow Services, for the first time, provided grants for not for profit organisations looking to pump prime local activities which got people back together following the Covid-19 pandemic. This was primarily funded by the Contain Outbreak Management Fund administered by the West Essex CCG (Now Herts and West Essex ICS).
COVID-19 - Rainbow Services were at the forefront of the local response to the Covid-19 pandemic. We recruited an army of volunteers to help those isolating with shopping, collecting prescriptions, etc. Following the initial response to the pandemic, we helped rebuild people’s confidence in face to face interaction through projects such as Let’s Get Connected.
Harlow Community Fund - a local business very generously gave us their Christmas bonus to start the Harlow Community Fund. This fund helps people in Harlow to buy essential living items such as beds, cutlery, cookers etc., and works alongside our Harlow Community Hub project.
Page 23
Rainbow Services (Harlow)
Notes to the Financial Statements for the Year Ended 31 March 2023
18 Analysis of net assets between funds
| Fixed asset investments Current assets Current liabilities Total net assets Fixed asset investments Current assets Current liabilities Total net assets |
Unrestricted funds General £ Designated £ 117,163 - 167,627 24,500 (39,942) - 244,848 24,500 Unrestricted funds General £ Designated £ 119,507 - 147,324 24,500 (32,697) - 234,134 24,500 |
Restricted funds £ - 156,296 (120,273) 36,023 Restricted funds £ - 146,306 (146,306) - |
Total funds at 31 March 2023 £ 117,163 348,423 (160,215) |
|---|---|---|---|
| 305,371 | |||
| Total funds at 31 March 2022 £ 119,507 318,130 (179,003) |
|||
| 258,634 |
19 Related party transactions
During the year the charity made the following related party transactions:
West Essex Community Action Network (WECAN)
WECAN is a consortium of Rainbow Services that run projects covering West Essex. Rainbow Services were paid £4,033 during the year by WECAN.
At the balance sheet date the amount due to/from West Essex Community Action Network (WECAN) was £Nil (2022 - £Nil).
Page 24