RELEASING POTENTIAL Releasin Potential Limited Annual Report of the Trustees and Financial Statements For the year ended 31 August 2024 RELEASING POTENTIAL
Executive Summary At the start of the 2023-24 academic year, we introduced several new systems and structures designed to strengthen our school and enhance the learning environment. These initiatives marked an exciting step forward for Releasing Potential, allowing us to build on previous guidance and establish a strong foundation for future growth. In November, Ofsted visited and recognised the significant progress we had made in addressing previous recommendations. They acknowledged the substantial improvements in our systems and structures, which were well on their way to full integration. As a result of our hard work and dedication, we achieved a higher rating in their assessment - a fantastic milestone for our school I March brought another significant development as we successfully restructured our Outdoor Education provision, leading to the launch of our Alternative Provision. This expansion enabled us to support even more students by catering for those registered at other schools. In June, a follow-up Ofsted monitoring visit further highlighted our progress. Inspectors praised the positive engagement of our students and the meaningful outcomes we are achieving, reinforcing our commitment to continuous improvement. We also made great strides in enhancing our facilities. By expanding classroom space at the Havant Offices, centralising our financial administration team, and creating dedicated office space for staff, we improved our operational efficiency. Additionally, the transformation of the Emsworth Outboards building into an Alternative Provision Centre provided a dedicated space for students in the programme, further strengthening our support for their education. Through innovation, dedication, and teamwork, we continue to build a stronger, more inclusive learning environment for all. RELEASING POTENnAL
Releasing Potential Ltd August 2024 Year End 1nfo@releasingpotential.com Contents Charity information Reflections by Chief Executive Officer Objects and activities for the public benefit Review of the year 3to5 Looking ahead Financial results Structure, governance and management 6t07 Statement of Trustees, responsibilities 7t08 Report of the independent auditors 9t012 Statement of financial activities 13 Balance sheet 14 Statement of cash flows 15 Notes to the financial statements 16to24 RELEASING POTENTIAL
Charity information for the year ended 31 August 2024 Trustees: P Suter D Carman-jones (appointed 10/02/2025) E Eminson (resigned 07/10/2024) S Garrett M Honeychurch (resigned 20/10/2023) P Jenkins M King M Lavington (appointed 10/02/2025) P Stanway Chief executive officer and company secretary: MAKing Registered office: 7 Kingscroft Court Ridgway Havant Hampshire P09 ILS Registered number: 4622100 (England and Wales) Registered charity number: 1097440 Independent auditor: Scott Vevers Ltd Chartered Accountants and Registered Auditors 65 East Street Bridport Dorset DT6 3LB Bankers: HSBC Bank PIC 118 Commercial Road Portsmouth Hampshire POI IEP RELEASING POTENnAL
Reflections by Chief Executive Officer We were excited to move forward with developing the school in a way that truly reflected the ethos of our practice while meeting Ofsted's requirements. Initially, we anticipated that this process would take a year, but as we progressed, we recognised that to be truly effective, a more extended timeline was necessary. The newly established school management structure brought clarity and accountability by designating specific staff members responsible for Safeguarding, Behaviour, and Curriculum. This improved organisation has strengthened our ability to support students effectively. We are delighted with the expansion of teaching spaces, alongside enhancements in the quality of our buildings. The implementation of Health & Safety-compliant systems has ensured that we meet the expectations of all inspections. We now have the highest number of indoor teaching areas we have ever had, providing high-quality learning environments. Working with a School Improvement Partner has been an invaluable opportunity. Their expertise in high-quality alternative provision has guided us through Ofsted's expectations and helped us refine our approach. Their honest insights have deepened our understanding of our methodology and encouraged reflective practice. l am incredibly grateful to everyone who has contributed to this journey. The commitment of our staff team, Trustees, and School Governors has been instrumental in ensuring our children are well-equipped to contribute meaningfully to society. Mike King, CEO, August 2024 RELEASING POTENTIAL
The Trustees who are also directors of the charity for the purposes of the Companies Act present their report together with the financial statements of the charity for the year ended 31 August 2024 which are also prepared to meet the requirements for a directorfs report and accounts for Companies Act purposes. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). Objects and activities for the public benefit The charity's objects as stated in the memorandum of association are: (a) to advance the education of young people including those who may have special needs or who are excluded from mainstream education in such ways as the Trustees may from time to time think fit. (b) to provide training to equip groups and individuals to provide education for young people. (c) to advance in life and relieve the social needs of young people through the provision of recreational and leisure time activities provided in the interest of social welfare and support and activities which develop their skills to enable them to participate in society as mature and responsible individuals. The objects are achieved through a variety of different methods. full time small group and one to one SEN core provision, outdoor mentoring, sail training, residentials, short term intervention projects and holiday activities. The activities we provide are sailing, canoeing, kayaking, orienteering, navigation, climbing, abseiling, mountain biking, and various team- building activities. On the residential programmes, young people participate in outdoor activities as a personal and social development programme. In planning our activities for the year, the Trustees kept in mind the Charity Commission's guidance on public benefit. Review of the year With the appointment of an interim Head Teacher at the end of the previous academic year, we successfully embedded a new school management structure. In November 2023, an Ofsted inspection recognised the strength of our practices, highlighting that "staff develop warm professional relationships with children, staff constantly check what pupils have learned and alter what they teach them next to build on and reinforce learning." Our Ofsted ratings included: Quality of Education- Good Behaviour and Attitudes- Good Personal Development- Good RELEASING POTENTIAL
While Governance and Leadership were identified as areas requiring improvement, we were encouraged by the recognition of our progress and commitment to enhancing our structures, Health & Safety systems, and Governance effectiveness. Following the inspection, we submitted an Action Plan to Ofsted, outlining key improvements, including: Expanding the number of Trustees Establishing a School Governing Board Providing Safeguarding training for staff and Trustees Enhancing our website Increasing the number of Designated Safeguarding Leads (DSLS) Implementing Management Information Systems for Safeguarding, Curriculum, and Student Data While our initial proposal required further specificity to meet the Independent School Standards, we took the opportunity to refine our approach. Throughout this process, we maintained transparency with commissioning officers, who continued to support our school by continuing all placements- a testament to their confidence in our abilityto deliver high-quality education. Physical Developments Alongside operational improvements, we made significant physical developments: Havant site: Opened new classrooms and a charity office in Unit 8 Created a commercial-grade kitchen in Unit 7 Completed the installation of a climbing wall in Unit 9 Chichester site: Established a new outdoor kit store Blue Brew Café: Installed new sheltered seating areas The Farm: Developed a new raised beds area These developments have expanded our capacity, enabling us to provide even greater support to our students. RELEASING POTENTIAL
Monitoring Visit and Continued Progress In June, Ofsted conducted a monitoring visit to assess our progress since the November inspection. We were pleased that the Inspector recognised our improvements, confirming that our practices were safe and encouraging us to continue on our current path. This positive outcome allowed us to accept new student referrals and further expand our capacity. By the end of the academic year, we had: Enrolled our largest cohort of students to date Expanded our learning facilities Established an Alternative Provision programme within the Outdoor Education team Achieved industry-standard compliance in multiple Health & Safety systems Appointed a new Head of School This academic and financial year presented challenges, but Releasing Potential has emerged stronger. The groundwork laid this year sets a solid foundation for the future. Looking ahead Our next steps focus on three key areas: Charity: Establishing our values across all services and ensuring that industry- standard systems are embedded in our practices. Outdoor Education: Expanding the Alternative Provision programme, increasing staff capacity, and further developing our vision for outdoor education. School: Continuing our journey toward full compliance with the Independent School Standards, preparing for the next Ofsted monitoring visit, and supporting our new Head of School in shaping the institution according to our core values. With a clear vision and dedicated team, we are excited about the opportunities ahead. The progress we have made this year positions us well for continued success and growth, ensuring the best possible outcomes for the children we serve. RELEASING POTENTIAL
Financial results The statement of financial activities shows net incoming resources of £84,172 (2023: £9,072). Reserves at 31 August 2024 were £975,974, including £815 restricted funds. The principal source of funds continued to be amounts paid by schools and local authorities for the services provided. All staff at Releasing Potential, including key management personnel, are paid on a scale which reflects a balance between outdoor industry and teaching profession levels. Pay scales are reviewed annually and any changes are ratified by Trustees. Decisions on pay increases for the Charity SLT are made directly by the Trustees. All Trustees give of their time freely and no Trustee received remuneration in the year, in their capacity as a Trustee. Reserves The Trustees have established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets ('the free reserves,) held by the charity should be sufficient to enable the charity to continue operating in the short term in the event of a significant drop in funding. At the end of the year, reserves comprise: Restricted funds for projects £815 (to be spent over next 12 months) Funds invested in fixed assets £621,916 Free reserves £353,243 Total £975,974 Structure, governance and management The charity is a company limited by guarantee and was incorporated on 19 December 2002. It is governed by its memorandum and articles of association. The members of the company who are also the directors and Trustees are named on page l. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The appointment of all Trustees is governed by the articles of association of the company and new Trustees are recruited from those who are interested in and connected to work with young people in the local community. New Trustees are given an induction pack containing information on all aspects of the charity's affairs and are expected to visit the office to meet staff and at least one project. Training is given as required, including sessions for the whole Trustees, team. The Trustees meet regularly throughout the year to review performance and set charitable policy and strategy. They have appointed a School Governing Body to oversee the 'attendance, attainment, progress and safeguarding, of students within the school. Day to day management is delegated to the chief executive, who line manages other staff. ING AL
The Trustees have carried out an assessment of the major risks to which the charity is exposed and have put in place procedures and systems to mitigate these risks. The highest potential risks identified that would have the biggest impact were: Risk School could fail to move up a grade in the Ofsted judgement at next inspertion Controls Extensive work on curriculum to improve outcomes and evidence. An effective School Governing Body appointed, meeting termly and receiving external training. H&S Officer appointed to oversee building improvements. Safeguarding practices to adopt systems for staff and Trustees. Established 2-year training programme of accredited awards Increased pay above industry levels across the board. Increased annual leave entitlement to a level comparable with colleges of FE. Rigorous safeguarding systems in place throughout the organisation. All staff trained with regular refresher courses. Designated Safeguarding Leads appointed and deputies will be in place and appropriately trained. Safeguarding Trustee is in place and regular structured meetings take place. Difficulties recruiting and retaining good quality staff limits capacity Serious safeguarding incidents could significantly impact referrals and potentially close our provision Statement of Trustees, responsibilities The Trustees are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year. Underthat law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 net movement in funds of the charitable company for that year. In preparing these financial statements, the Trustees are required to: select suitable accounting policies and then apply them consistently. observe the methods and principals in the Charities SORP make judgements and estimates that are reasonable and prudent. state whether the policies adopted are in accordance with the Companies Act 2006 and with applicable accounting standards and statements of recommended practice, subject to any material departures disclosed and explained in the financial statements. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to RELEASING POTENTIAL
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 also responsible for ensuring that the assets are properly applied in accordance with charity law. Statement as to Disclosure of Information to Auditors So far as the Trustees are aware, there is no relevant audit information of which the charitable company's auditors are unaware, and each Trustee has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information. Auditors The auditors, Scott Vevers Ltd, have signified their willingness to remain in office and a resolution for their re-appointment will be proposed at the forthcoming annual general meeting. This report has been prepared in accordance with the small companies, regime under the Companies Act 2006. On ehalf of the board P Suter- Trustee Date: 19 May 2025 RELEASING POTENTIAL
Report of the independent auditors to the Trustees of Releasing Potential Limited Opinion We have audited the financial statements of Releasing Potential Limited (the 'charitable company,) for the year ended 31 August 2024 set out on pages 13 to 24. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (U nited Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements give a true and fair view of the state of the charitable company's affairs as at 31 August 2024 and of the incoming resources and application of resources, including its income and expenditure, for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the Charities Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern We have nothing to report in respect of the following matters in relation to which the ISAS (UK) require us to report to you where: the Trustees, use of the going concern basis of accounting in the preparation of the financial statements is not appropriate. or the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable companws ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. RELEASING POTENTIAL
10 Other information The Trustees are responsible for the other information. The other information comprises the information included in the Trustees, annual report, otherthan the financial statements and our auditorfs report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors, report. We have nothing to report in respect of the following matters to which the Charities Act 2011 requires us to report to you if, in our opinion: the information given in the financial statements is inconsistent in any material respect with the Trustees, Annual Report. or the charitable company has not kept adequate accounting records. or the charitable company financial statements are not in agreement with the accounting records and returns; or we have not received all the information and explanations we require for our audit. Responsibilities of Trustees As explained more fully in the Trustees, Responsibilities Statement set out on pages 7 and 8, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charitable companws ability to continue as a going concern, disclosing, as applicable, matters related to a going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. RELEASING POTENTIAL
11 Auditorfs responsibilities for the audit of the financial statements We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; we identified the laws and regulations applicable to the charity through discussions with Trustees and other management, and from our commercial knowledge and experience of the charity sector; we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud. and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: performed analytical procedures to identify any unusual or unexpected relationships. tested journal entries to identify unusual transactions; assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias. and investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: agreeing financial statement disclosures to underlying supporting documentation reading the minutes of meetings of those charged with governance; enquiring of management as to actual and potential litigation and claims. RELEASING POTENTIAL
12 Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc,org.uk/auditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the charitable companws Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibilityto anyone other than the charitable company and the charitable company's Trustees as a body, for our audit work, for this report, or for the opinions we have formed. Scott Vevers Ltd 65 East Street Bridport Dorset. DT6 3LB Chartered Accountants and Registered Auditors Date: li Ic)s Ill Scott Vevers Ltd is eligible to act as auditor in terms of section 1212 of the Companies Act 2006. RELEASING POTENTIAL
RELEASING POTENTIAL LIMITED 13 STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2024 Notes Total Funds 2024 Total Funds 2023 Unrestrirted Restricted funds funds Incoming resources Incoming resourcesfrom generatedfunds.. Donations and similar sources 5,883 5,883 132 Charitable activities.. Grants received for activities Fees charged for activities 22,000 22,000 1,862,375 2,500 1,882,681 1,862,375 Investment income 8,977 8,977 5,692 Total incoming resources 1,877,235 22,000 1,899,235 1,891,005 Resources expended Costs of generating funds Charitable activities.. Educational activities 318 318 30,494 1,793,060 21,685 1,814,745 1,851,439 Total resources expended 1,793,378 21,685 1,815,063 1,881,933 Net movement in funds 83,857 315 84,172 9,072 Reconciliation of funds Total funds at I September 2023 891,302 500 891,802 882,730 Total funds at 31 August 2024 975,159 815 975,974 891,802 Changes in Resources Applied for Fixed Assets for Charity Use Net movement in funds Net resources invested in fixed assets 84,172 (54,731) 29,441 9,072 (179,434) (170,362) Funded by reserves and other funding sources All amounts derive from continuing activities. All gains and losses recognised in the year are included in the statement of financial activities. The notes on pages 16 to 24 form part of these financial statements RELEASING POTENTIAL
RELEASING POTENTIAL LIMITED 14 BALANCE SHEET AS AT 31 AUGUST 2024 Notes 2024 2023 Fixed Assets Tangible assets Investments 621,916 668,527 10 10 621,916 668,537 Current assets Stocks Debtors Cash at bank and in hand 11 12 794 114,152 306,537 7,524 46,276 422,379 421,483 476,179 Creditors: Amounts falling due within one year 13 (67,425) (252,914) Net current assets 354,058 223,265 Net Assets 975,974 891,802 The funds of the charity: Restricted income funds 14 815 500 Unrestricted income funds: 14 975,159 891,302 Total charity fvnds 975,974 891,802 These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime under the Companies Act 2006. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 in respect of accounting records and preparation of accounts. Whilst the company is exempt from audit under Section 477 of the Companies Act 2006 relating to small companies and the members have not required an audit under section 476 of the Act, the company is subject to audit under the Charities Act 2011. The financial statements were approved by the board on 19 May 2025. Mr P Suter- Trustee The notes on pages 16 to 24 form part of these financial statements RELEASING POTENTIAL
RELEASING POTENTIAL LIMITED 15 STATEMENT OF CASH FLOWS AS AT 31 AUGUST 2024 Notes 2024 2023 Cash flow from operating activities 17 97,822 152,574 Cash flow from investing activities Payments to acquire tangible fixed assets Receipts from sales of tangible fixed assets Investment income received (54,731) 14,812 8,977 (179,434) 10,767 5,692 Net cash flow from investing activities (30,942) (162,975) Cash flow from financing activities Repayment of long term loans Interest paid (180,861) (1,861) (18,965) (11,709) Net cash flow from financing activities (182,722) (30,674) Net increase / (decrease) in cash and cash equivalents (115,842) (41,075) Cash and cash equivalents at I September 2023 422,379 463,454 Cash and cash equivalents at 31 August 2024 306,537 422,379 The notes on pages 16 to 24 form part of these financial statements RELEASING POTENTIAL
RELEASING POTENTIAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 16 l General information Releasing Potential Limited is a charitable company, limited by guarantee, incorporated in England and Wales under the Companies Act 2006 and Charities Act 2011. The address of the registered office is provided in charity information on page l. Details of the Charitvs operations are provided in the Annual Report of the Trustees. 2 Accounting policies The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows: 2.1 Basis of preparation The Charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared on a going concern basis, under the historical cost convention 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) (Charities SORP 2019 (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the Charities Act 2011. 2.2 Accounting convention The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the Charity to be able to continue as a going concern. 2.3 Income All income is included in the statement of Financial Activities when the Charity is legally entitled to the funds, any performance conditions attached to the income have been met, it is probably that the income will be received and the amount can be measured reliably. 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 before the Charity is entitled to the funds, the income is deferred and not recognised until those conditions are fully met. Gift aid is recognised in the period trading subsidiaries have made an irrevocable commitment to pay their taxable profits. When donors specify that donations and grants, including capital grants, are for particular restricted purposes, which do not amount to pre-conditions regarding entitlement, this income is included in incoming resources of restricted funds when receivable. 2.4 Expenditure Liabilities are recognised on the accruals basis. Expenditure is recognised in the period in which it is incurred and includes any attributable VAT which cannot be recovered. Costs which are identified as relating to restricted activities are allocated directly to those activities. Costs which relate to the general running of the Charity are allocated against unrestricted funds, and within the statement of financial activities these expenses are shown as costs of generating funds and costs in furtherance of charitable objects. An apportionment of certain costs has been carried out on the basis of time spent by staff on the various activities. 2.5 Tangible fixed assets and depreciation Tangible fixed assets costing more than £500 are capitalised at cost. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows: Freehold buildings equal annual instalments over 50 years Boats equal annual instalments over 5 to 10 years Plant and machinery 25Yo on reducing balance Motor vehicles 25Yo on reducing balance Fixtures and office equipment 25Yo on reducing balance RELEASING POTENTIAL
RELEASING POTENTIAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 2.6 Stocks Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate. 17 2.7 Restricted and designated funds Restricted funds are funds subject to specific conditions imposed by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts. The net book value of fixed assets at each year end not subject to mortgage or other loans is shown as a separate designated fund. 2.8 Leasing commitments Rentals paid under operating leases are charged to the Statement of Financial Activities as incurred. 2.9 Pension contributions The Charity contributes to individual staff personal pension plans in accordance with their contracts of employment. Contributions payable for the year are included in the Statement of Financial Activities. 2.10 Taxation The Charity is an exempt Charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph I Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. 2.11 Financial instruments Classification Financial assets and financial liabilities are recognised when the Charity becomes a party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangement entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Charity after deducting all of its liabilities. Recognition and measurement All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transactions. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for similar debt instruments. Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the Charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the Charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the Charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party. Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires. RELEASING POTENTIAL
RELEASING POTENTIAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 18 3 Donations and similar income Unrestricted Restricted funds funds 2024 2023 Donations 5,883 5,883 132 5,883 5,883 132 4 Grants received for activities Unrestricted Restricted funds funds 2024 2023 Foyle Foundation Maurits Mulder Canter Charity Oakmoor Charitable Trust Tesco Community Grant 2,000 2,000 2,000 20,000 20,000 500 22,000 22,000 2,500 5 Investment income Unrestricted Restricted funds funds 2024 2023 Bank interest Rents received 7,957 1,020 7,957 1,020 4,972 720 8,977 8,977 5,692 6 Costs of raising funds Unrestricted Restricted funds funds 2024 2023 Emsworth Outboards Web site and other promotional costs 30,166 328 318 318 318 318 30,494 RELEASING POTENTIAL
RELEASING POTENTIAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 19 7 Expenditure on charitable activities Unrestricted Restricted funds funds 2024 2023 Staff costs inc. training Direct costs Support costs Governance costs 1,362,208 186,528 229,837 14,487 1,362,208 208,213 229,837 14,487 1,814,745 1,414,220 224,234 195,962 17,023 1,851,439 21,685 1,793,060 21,685 Unrestricted Restricted funds funds 2024 2023 Staff costs Employee costs Recruitment Training Clothing Other staff costs Subcontractors and external provision 1,308,073 3,669 7,312 2,207 650 40,297 1,362,208 1,308,073 3,669 7,312 2,207 650 40,297 1,362,208 1,289,908 1,957 18,288 3,722 1,149 99,196 1,414,220 Direct costs Activity costs and equipment Boat costs Insurance Motor and travel costs Depreciation (Profit)/loss on sale of assets 56,011 10,603 21,725 54,112 43,580 497 21,685 77,696 10,603 21,725 54,112 43,580 497 99,360 9,090 19,669 51,707 48,016 (3,608) 224,234 186,528 21,685 208,213 ort costs Property costs Office costs Finance charges and interest 154,249 73,727 1,861 154,249 73,727 1,861 125,049 59,204 11,709 229,837 229,837 195,962 Governance costs Auditor's remuneration Professional fees Other governance costs 5,818 2,318 6,351 14,487 5,818 2,318 6,351 6,402 8,266 2,355 14,487 17,023 Outgoing resources includes: Operating lease payments property other 75,741 7,922 73,112 5,650 RELEASING POTENTIAL
RELEASING POTENTIAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 20 8 Employee costs No remuneration or expenses were paid to Trustees in the year (2023: £nil). The costs of the remaining staff employed by the Charity were: 2024 2023 Wages and salaries Social security costs Pension costs 1,137,434 97,907 72,732 1,135,227 102,823 51,858 1,308,073 1,289,908 During the year, l employee earned more than £60,000 (2023: 1). The average full time equivalent number of staff employed during the year were as follows: 2024 No 30.33 6.78 1.05 38.16 2023 No 33.25 6.74 0.53 40.52 Operational Support Governance The average number of staff employed by the Charity (Headcount) 42.67 47.30 9 Tangible fixed assets Fixtures & office equipment Freehold Property Plant & Machinery Motor vehicles Boats Total Cost At I September 2023 Additions Disposals At 31 August 2024 612,226 24,770 32,238 (19,675) (21,682) 592,551 35,326 137,443 11,803 (11,454) 137,792 103,427 5,250 (3,240) 105,437 58,596 5,440 (5,663) 58,373 936,462 54,731 (61,714) 929,479 Depreciation At I September 2023 Charge for the year Eliminated on disposals At 31 August 2024 62,475 10,491 5,272 7,065 (3,952) 8,385 83,046 13,692 79,734 6,430 37,408 5,902 267,935 43,580 (3,952) 307,563 72,966 96,738 86,164 43,310 Net book value At 31 August 2024 519,585 26,941 41,054 19,273 15,063 621,916 At 31 August 2023 549,751 19,498 54,397 23,693 21,188 668,527 RELEASING POTENTIAL
RELEASING POTENTIAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 21 10 Fixed asset investment - Charity 2024 2023 Company Number Shareholding 10626819 Ordinary shares of £1 each Wholly owned subsidiary company Releasing Potential Enterprises Ltd 10 10 The company holds IOOYO of the issued share capital of all subsidiary companies. Releasing Potential Enterprises Ltd ceased trading on 31 August 2023 and the company was dissolved on 7 January 2025. 11 Stocks 2024 2023 Goods for resale 794 7,524 12 Debtors: amounts falling due within one year 2024 2023 Operational debtors Other debtors and prepayments 8,668 105,484 114,152 72 46,204 46,276 13 Creditors: amounts falling due within one year 2024 2023 Repayments due on bank loans Operational creditors Social security and other taxes Other creditors and accruals 180,861 23,476 21,996 26,581 252,914 23,939 21,475 22,011 67,425 The bank loan is secured by a legal charge over the freehold properties, together with a fixed and floating charge over all the other assets of the Charity. The book value of the freehold properties at 31 August 2024 was £519,585. The mortgage was fully redeemed on 19 September 2023. RELEASING POTENTIAL
RELEASING POTENTIAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 14 Funds 22 Balance at Incoming I September resources 2023 Resources expended Balance at 31 August 2024 Transfers 2024 Restricted income funds Equipment Grant Sailing Programme 500 2,000 20,000 22,000 (1,685) (20,000) (21,685) 815 500 815 Unrestricted income funds Designated fixed asset reserve General fund 487,666 403,636 891,302 134,250 (1,793,378) (134,250) (1,793,378) 621,916 353,243 975,159 1,877,235 1,877,235 Total funds 891,802 1,899,235 (1,815,063) 975,974 Balance at Incoming I September resources 2022 Resources expended Balance at 31 August 2023 Transfers 2023 Restricted income funds Capital Grants Equipment Grant Sailing Programme 700 2,000 500 (2,700) 500 23,616 24,316 (23,616) (26,316) 2,500 500 Unrestricted income funds Designated fixed asset reserve General fund 343,741 514,673 858,414 143,925 (143,925) 487,666 403,636 891,302 1,888,505 1,888,505 (1,855,617) (1,855,617) (1,881,933) Total funds 882,730 1,891,005 891,802 (a) Grants were received from private trusts to fund specific programmes in outdoor leadership and sailing. (b) The balance on the designated fixed asset reserve represents the net book value of fixed assets financed by Charity reserves. RELEASING POTENTIAL
RELEASING POTENTIAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 15 Analysis of net assets between funds- 23 Unrestricted Designated funds funds Restricted funds Total funds 2024 Tangible fixed assets Investments Net current assets 621,916 621,916 353,243 353,243 815 815 354,058 975,974 621,916 Unrestricted Designated funds funds Restricted funds Total funds 2023 Tangible fixed assets Investments Net current assets 668,527 668,527 10 223,265 891,802 10 403,626 403,636 (180,861) 487,666 500 500 16 Operating lease commitments At 31 August 2024 the Charity has future minimum lease commitments as follows: Property Other Total Not later than l year Later than l year and not later than 5 years Later than 5 years 54,176 82,311 29,875 166,362 6,602 17,329 60,778 99,640 29,875 190,293 23,931 17 Reconciliation of net income to net cash flow from operating activities 2024 2023 Net income for the year 84,172 9,072 Investment income receivable Interest payable Depreciation and impairment of tangible fixed assets (Profit) / loss on disposal of tangible fixed assets Loss on disposal of fixed asset investment VAT claimed on pre~registration fixed asset costs (Increase) / decrease in stock (Increase) / decrease in debtors Increase / (decrease) in creditors Net cash flow from operating activities (8,977) 1,861 43,580 497 10 42,453 6,730 (67,876) (4,628) (5,692) 11,709 48,016 (3,608) 20 3,010 92,886 (2,839) 97,822 152,574 RELEASING POTENTIAL
RELEASING POTENTIAL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 18 Financial Instruments Categorisation of financial instruments 24 2024 2023 Financial assets that are debt instrument measured at amortised costs 322,909 538,156 Financial liabilities measured at amortised costs 67,425 252,914 Items of income, expense, gains or losses The total interest income for financial assets not measured at fair value through profit or loss is £7,957 (2023: £4,972). 19 Defined contribution pension scheme The Charity operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the Charity to the scheme and amounted to £72,732 (2023: £51,858). There was £11,804 (2023: £8,182) outstanding contributions at the end of the financial year. 20 Related party transactions No Trustee has received any remuneration, expenses or benefits from the Charity during the year, in their capacity as a Trustee. Mr M King (Trustee) was employed during the year as the Chief Executive Officer and his salary is included in note 8. Mr M King abstained from any decisions related to his employment. Mr P Stanway's (Trustee) son Mr D Stanway was employed during the year and his salary is included in note 8. Mr P Stanway abstained from any decisions related to his employment. RELEASING POTENTIAL