2020-08-31-accounts

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

Red Balloon Learner Centre Group Suite 3, Winship House Winship Road Milton Cambridge CB24 6AP

Tel: 01223 366052 Email: admin@group.rblc.org.uk Charity no: 1109606

www.redballoonlearner.org

My experience with Red Balloon has been amazing. I started here in 2018 and the first day I walked into the community room I was welcomed as if I had been a student for years.

I soon came out of my shell, and making friends here was almost effortless. The teachers at Red Balloon encouraged me to take my GCSEs which I never thought I’d ever be able to take in my life.

This school helps children like me who find mainstream school difficult, and turns them into students who can excel in any subject they choose, from Maths and English or even Design and Technology.

Jamie, Red Balloon Reading

For young people like Jamie, normal student life can seem a world away. It can fill them with dread to the extent that they simply can’t face going to school any more. Red Balloon provides a stepping stone to get their lives back on track.

Contents

Introduction from the Chair 4 About Red Balloon 6 Our year at a glance 7 Our locations 8 Message from the Director of Education 10 Our values, ethos and practice 13 Wellbeing 14 Education 16 Social re-engagament 18 Fundraising 20 Supporter case study 22 Our plans for the future 24 Student case study 26 Financial review 30 Risk assessment 32 Structure, governance and management 33 Administrative details 36 Independent auditor's report 40 Financial statements 43 Notes to the financial statements 47

Introduction from the

Chair

“Jamie has come so far. When I think back a few years, he was in such a delicate state. Jamie’s future is looking so much more positive now that I honestly don't think there is any stopping him! I cannot tell you how proud I am of him. Jamie would not be the person he is now if it wasn't for Red Balloon!”

Sometimes a mum’s words really stay with you, and I can’t tell you how delighted I was to hear of how Jamie has got his learning and his life back on track.

Red Balloon students have achieved great things this year. Of those who took GCSE maths, for example, 72% received grades 4 to 9 (the old grades C to A*), and 78% achieved the same in English. They gained a whole host of other qualifications alongside!

No grade on a certificate can ever express just how amazing our students are, however. Between them, they have overcome a whole range of challenges such as bullying, post traumatic stress disorder, severe anxiety and depression, complete loss of confidence and agoraphobia.

We are enormously proud of them, and while it can be an emotional time to see them go, we are comforted by the fact that 90% of learners successfully move on to further education, training or work after their time with Red Balloon. We wish them well and are looking forward to hearing about their futures.

But we know that helping children get back on an academic track is only part of what they need to overcome the challenges they face and prepare for their adult lives.

Students' wellbeing comes first and this year 84% of leavers reported improved wellbeing since joining Red Balloon; this is perhaps our most important marker of success.

More children should have this opportunity to succeed so we have ambitious plans for Red Balloon’s future, as outlined later in this report. We were delighted to welcome Rob Watson as our new Director of Education in January 2020 to help drive these developments forward. Rob joins us after 30 years as a secondary school teacher, including over 20 years as a senior leader. His previous roles have included Head of School, Deputy Head (Pastoral Care) and eight years as Executive Head Teacher of an Academy Trust.

We also look forward to reaching more young people like Jamie in the years to come, and thank you for being part of their journeys. We are so grateful for your ongoing support.

With warm regards

Bev Williams Chair of Trustees

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About Red Balloon

Our year at a glance

Red Balloon provides a full-time educational and therapeutic programme for young people aged 10 to 18 who are out of school and unable to attend due to severe bullying, anxiety or illness. Students come to us because they are missing out on their education and are becoming increasingly socially marginalised at home. They risk falling through the cracks of the education and mental health systems and failing to find their place in the adult world.

Thanks to the support we receive from generous donors, we are able to rebuild students’ self-confidence, rekindle their desire to learn and succeed, and enable them to move on to further education, training or work.

We know that school isn't for everyone, but we believe education should be. With potentially almost 60,000 children in England missing from state schools because of bullying, our work has never been more important.

In this annual report you'll see how, in partnership with our donors, commissioners and other supporters, we're doing all we can to ensure all the children we care for get the encouragement they need to find their feet again and thrive.

Our students achieve amazing things. Of those who ‘graduated’ from our Centres in July 2019:

100

----- Start of picture text -----
82%
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----- Start of picture text -----
75%
69%
achieved 9-4 grades in Science achieved 9-4 grades in Maths achieved 9-4 grades in English
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75 69%

This year, across 14 counties in England we supported:

children total

163 133

with Education and Health Care Plans

And provided over:

13,500 3100 2500

hours of teaching

hours of well-being support hours of mentoring

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Red Balloon Annual Report 201 89 / 19 20 | 07

Our locations

We have five Centres. Four are based in domestic houses in Cambridge, Norwich, NW London and Reading. They do not resemble schools.

The fifth is an online and face-to-face service based in Cambridge but covering more than 14 different counties, with several face-to-face hubs (also known throughout Red Balloon as satellite centres).

Red Balloon Learner Centre Group acts as the coordinating and service centre for the Centres. These entities are separately registered charities and companies limited by guarantee, with the local trustees as their directors; they operate under the Red Balloon name by way of an association agreement.

Red Balloon legally restructured in 2017-18: the Red Balloon Reading and Red Balloon Cambridge entities joined the Red Balloon consolidated group during 2017-18, together with Red Balloon of the Air, as required by UK accounting standards.

Red Balloon Learner Centres Red Ballon of the Air face-to-face hubs

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Message from the Director of Education

The unprecedented financial impact of the pandemic has made us further thankful for our donors whose means allowed them to continue to give during the year. Each donation has made a great impact and enabled further mental health support for our students to meet their increased needs during the uncertainty of the pandemic.

Red Balloon Learner Centre Group provides the underpinning support and organisational development for the network of Learner Centres. We provide strategic educational, wellbeing, IT, HR, fundraising, communications and administration support, so that staff in the Centres can focus on what they do best – changing the lives of bullied and vulnerable young people.

Despite the global climate, this year has delivered some exciting positives, with the first steps towards the fulfilment of our ambition to grow so as to support additional young people.

The impact of Covid-19 and lockdown from March 2020 was felt across Red Balloon Centres including Group. Our students, who are all classed as "vulnerable", typically due to their high levels of anxiety, reported declines in their overall wellbeing, mirroring the national mood but from their already low starting points. The student-facing work of our Centres became, and continues to be, critical in addressing this.

Our Centre at Cambridge has opened a second location in the city, and after a short time supporting students virtually, started welcoming face-to-face students. With a mixture of new and current staff across the two locations, the new school has allowed an additional 18 students to have places at Red Balloon.

Our staff have done an incredible job working flexibly, as rules and advice have changed, to remain safely open, be it remotely, face-to-face or a hybrid of both. They have ensured that students are receiving the individual support that is best for them, despite the pandemic.

This year also saw us launch our new website, updating our online home to better showcase the provision we offer and the experiences of young people who so kindly share their stories. We’ve also given higher profile to our fundraising appeals, events and impact to reiterate how important charitable gifts are in ensuring vulnerable children can grow up into independent, resilient young adults.

We are particularly thankful to our staff teams, who have shown incredible resilience and determination to keep supporting students throughout all the challenges of the year.

Students’ voices remain at the centre of all we do, and we will continue to support our young people through whatever challenges may lie ahead.

As we look to the future we know it will be another unusual year, but we remain positive about the continued support we will provide students. Our specialised education, wellbeing and social reengagement programme will continue. The support we offer; putting the student voice first, celebrating personal achievements of every kind, and placing the mental health of students front and centre, will be a constant in the shifting pandemic landscape.

Warm regards

Rob Watson Director of Education

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Our values, ethos and practice

Carrie Herbert MBE, Red Balloon’s Founder, gives an overview of Red Balloon’s values, ethos and practice

Red Balloon Learner Centres were created to be safe and supportive learning communities for vulnerable young people who have been severely bullied, lost their confidence or have suffered trauma or mental illness.

Our students have usually been out of school for some time, in some cases years, and have often lost their trust in peers, adults and the education system. But they can begin to learn again if they feel safe, are listened to, valued and respected. Building trusted, open, respectful and inclusive relationships are at the heart of all we do, and we put the student voice first.

Students are given the support they need to:

rebuild their self-esteem and grow as individuals develop resilience and a positive self-image

build the learning skills they need to succeed when they return to school, move on to further education or enter the world of work.

Step into any of our Centres and you will feel warmth and an air of supportive companionship, with small groups of students engaged in creative activity and serious learning. Children thrive thanks to the three core components of our programme - wellbeing, community and education - which provide them with holistic support. You can read more about each of our components in later pages.

To maintain our supportive learning communities we ensure that we:

treat our students with respect and kindness, using restorative approaches listen to our students and respond to their concerns establish communities to which our students and staff feel they belong and to which they contribute

design individualised, negotiated educational and wellbeing plans to enable students to meet their goals

combine academic study with social and emotional recovery programmes encourage creativity at all levels.

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Wellbeing

Psychological and emotional support to help students overcome their challenges

Mainstream schools didn't take time out to talk with me about what my problems and insecurities were. But with Red Balloon they were there supporting me from the get go and everything sort of worked around what I was comfortable doing.

Every child should have the support they need to grow into happier, more resilient, confident and independent adults.

The young people who join us have reached such a point of crisis in their lives, that they can no longer cope in a mainstream educational setting. Our approach allows them to develop their self-belief and re-engage with education at a pace that supports their recovery. Nurturing students’ wellbeing is of paramount importance, before and throughout their academic studies. At Red Balloon, trained therapists provide timetabled individual psychological support which may include talking, music, art, play or equine therapy so students can explore their personal wellbeing concerns and overcome their challenges.

Students are also offered wellbeing sessions from noncompetitive sports and physical exercise, to mindfulness walks, swimming, skateboarding and boxing. They may take part in yoga and meditation, alongside different assertiveness and relaxation techniques. Sometimes a member of staff even brings in their dog, which can be especially reassuring for those students who have trouble trusting people. Students are also encouraged to engage with the healing power of nature through activities such as gardening projects, forest school and the Duke of Edinburgh awards.

Many of our Red Balloon of the Air students are too anxious to attend a Centre, so in addition to timetabled therapy, mentors visit them at home. They support students’ social progress through gradual steps, from standing outside the front door, to walking the dog, to going into town. When they’re ready, students attend sessions at our community hubs in Milton and Danbury to join in wellbeing and social activities with their peers- such as Bake Off or crazy golf - and develop their social skills in a safe environment.

Our vulnerable students benefitted from the support of 16 wellbeing professionals and 33 mentors in 2019/20.

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Education

Individualised timetables to help students re-engage with learning

I really value the approach to ability and flexibility. The teachers are easy to approach and the lessons can be tailored to help the students. Because the class sizes aren't so huge, sessions can be individualised.

All children should be able to negotiate their own curriculum to ensure their academic interests and goals are being met.

This means that teachers use topics that students are passionate about such as horse riding, manga comics, paintball or car racing, and creatively link them to curricular subjects to rekindle their interest in learning. We understand that we all learn in different ways and Red Balloon embraces this principle to allow students to really thrive.

Sessions are carefully planned so each child can progress at their own pace. Over the course of their time with us, students progress from one-to-one to small group sessions of no more than six. Sessions are 45 minutes long and there are six sessions in the day.

The mood at Red Balloon is informal, with no uniform, and students call staff by their first names. At the heart of our Centres are big communal kitchens and dining spaces where students and staff come together, eat freshly cooked lunches, celebrate birthdays and other occasions, play games or discuss matters of the day.

All students have access to English, maths, science, humanities, and personal, social, health, and economic education (PSHEE). Some Centres also offer food technology, languages, psychology, history, design technology and PE, among other subjects. Children also take part in a whole host of extra-curricular opportunities which might include badminton and kayaking, for example.

For those studying with Red Balloon of the Air, they follow equally individualised timetables and take online, real-time lessons from home. Our teaching team makes use of innovative techniques and hands-on practicals delivered electronically to bring the curriculum to life.

Collaboration between Centres and Red Balloon of the Air ensures all students benefit from a bespoke curriculum pathway designed to inspire, educate and prepare them for the next stage of their journey in becoming successful adults.

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Social re-engagement

Supporting students to re-engage with their peers and the communities around them

I am now able to trust people and be more sociable and I have begun to develop longlasting friendships that I have not had for such a long time.

Every child should have a sense of belonging, be able to socialise with people who understand them and be equipped to make their way in the world.

Before joining Red Balloon, most of our students have excluded themselves from school and subsequently become stranded at home. Most have lost their friendships and routines, and become socially isolated. They begin to miss out on the day-to-day social interactions and development of personal skills which shape our lives.

Students may need help developing their confidence to use the bus independently, for example, make a phone call or use a cashpoint. As their time with Red Balloon comes to an end, mentors may help students plan the route to their college, familiarise them with the campus in advance, and identify where to go for help or to find quiet space.

This is particularly true for students studying with Red Balloon of the Air - most of whom have been missing from school for extended periods. For these vulnerable young people, mentors work skillfully to develop their selfconfidence at a pace that ensures their personal growth is sustainable.

Students may even need help to talk to someone outside of their immediate family, so mentors have to start their engagement by talking through the bedroom door, carefully coaxing them to meet in the dining room, take a step into the garden, take a walk with their dog and more, until they are ready take part in face-to-face sessions.

Celebration days and trips planned by students further support their personal and social development. These events push them to research, plan and organise together and to navigate real world tasks such as public transport, and are big achievements for students as well as being fun opportunities to experience something new.

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Fundraising: a year of amazing support

Very special thanks to:

The AB David Charity BBC Children In Need John Beddington Cambridgeshire Community Foundation Cooke Curtis and Co Clifford Curry DG Marshall of Cambridge Trust The Earley Charity Edie Eligator and Robert Sansom Naomi Feinstein Firebrand Associates Limited Garfield Weston Foundation Homelands Charitable Trust Nic Humphries

The Ingles Charitable Trust The National Lottery Community Fund Newmarket & Thurlow Pony Club Diarmuid Ó Séaghdha Patricia Routledge Charitable Trust Philip King Charitable Trust Pye Foundation Qualcomm Foundation Mike and Carol Romanos Simon Gibson Charitable Trust St James's Place Charitable Foundation The Tylers and Bricklayers Charitable Trust Bruce Urquhart The Worshipful Company of Cutlers

Supporters of Red Balloon Group, RBAir, RB-Cambridge and RB-Reading who have given £1,000 or more in donations or in kind in 2019/20.

Across Red Balloon in 2019/20, 90.5p of every £1 we received was spent directly on supporting students:

----- Start of picture text -----
90.5p
Supporting
students
7p
£1
Management
& support
2.5p
Fundraising
----- End of picture text -----

We cannot operate effectively without good management and fundraising efforts. Last year 7p of every £1 was spent on management and support and 2.5p was spent on raising funds.

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Supporter case study: Curiosity 2.0

BBC Children in Need is a great supporter of our work and we are proud to have them as a partner again. Their vision, that children and young people in the UK have a safe, happy and secure childhood and the chance to reach their potential, aligns so neatly with our own.

Their support enabled the creation of an extracurricular science club at our Cambridge and Red Balloon of the Air Centres.

Curiosity 2.0

Students and staff in the science club organised a trip to Shepreth Wildlife Park, here's what some of the students thought:

A partnership between BBC Children in Need and Wellcome, Curiosity

£63,624 from 2019 to 2021

It was fun. The animals were the best.

In collaboration with the Wellcome Trust, BBC Children in Need’s joint programme with Wellcome, Curiosity, provides funding for organisations which run exciting and engaging science activities. Students studying with Red Balloon of the Air and Red BalloonCambridge will benefit from this grant, following on from a pilot of the programme in 2018.

It was a good plan to get socially anxious students interacting in a fun environment.

Adam Southwell, science teacher at Red Balloon Cambridge, said:

“We are introducing a programme of visits and extra-curricular events to enrich the experiences of our children. We have a trip to Shepreth Wildlife Park planned, and are also hoping to make visits to the Leicester Space Centre, Fen Drayton Lakes Country Park and the Science Museums in London.”

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Our plans for the future

Our strategic objectives for the next three years are to:

Improve the way students are supported

We will work with the student body to improve the measurement tools we use to assess their progress and achievement.

We will make effective use of existing and explore new technologies to enhance students’ learning and wellbeing experiences.

We will continue to provide flexible and additional support to minimise the impact of COVID restrictions on students’ attainment.

Reach more isolated and vulnerable children

To meet growing need, we will expand Red Balloon so we can meet the needs of more bullied, anxious and traumatised children by:

opening Centres in two new locations

encouraging the expansion of two existing Centres - by 20 children each.

supporting the increase of the number of students on Red Balloon of the Air.

Manage our charity as effectively and efficiently as possible

Inspire more people to support our work

We will move towards a consolidated governance model across Red Balloon. We will continue to review processes to ensure transparency, accountability, responsiveness and compliance with relevant regulations and legislation.

We will continue to identify and manage major risks to the organisation.

We will diversify our funding sources to reflect the challenging fundraising landscape and to finance our growth plans.

We will continue to develop our donor stewardship so every one of our supporters has a positive experience, however they choose to support our work.

We will establish relationships with new charitable trusts and individual donors.

We will strengthen our national voice and influence regarding children missing from school because of bullying, anxiety and trauma.

We will reinforce to local authorities and other educational bodies the importance of

student wellbeing; particularly in regions which we have identified for growth.
We will maintain pressure on the Department for Education to accredit online education as per its commitment in June 2020
We will develop, implement and maintain a workforce plan that enables Red Balloon to recruit, motivate, train and retain staff with the skills and competencies required to meet needs now and in the future.
We will develop and implement a volunteer involvement programme to enrich students’ Red Balloon experience.
We will utilise appropriate existing and new technologies to enhance the ways that staff support students.

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Student case study: Nathan, Red Balloon NW London

I joined Red Balloon when I was 14. I found mainstream school extremely stressful and I was bullied. The pressure of travelling to and from school was overwhelming and my classmates were mischievous and judgemental.

After I left mainstream school I went to a hospital school temporarily for a year. Hospital school was more helpful and supportive, however the journey was still stressful. I did not do all of my lessons but enjoyed being creative and attending Maths. Once it ended I was given an EHCP and then I was given the choice of two schools and I chose Red Balloon.

Before I started I was worried about being in a new place and environment. I did not like the change from one school to another. Talking to new people was also a major worry for me.

However, when I arrived I was welcomed by the staff and they made me feel comfortable. Then I started talking to two other students which then built my confidence to talk to others.

The teachers are definitely helpful, they do care. I know this because they ask you every day. You get a lot of one to one support and challenges that help you grow in many ways. Sometimes not everything works well but a positive can always be found in their teaching.

You get opportunities you would not get at other schools - for example one to one chats that are encouraging. I liked my tailormade timetable, and I always felt there was a good sense of trust.

My time has definitely been full of many things which have had a good impact on me and I’ve learnt a lot about myself and other people. Education is key but it’s having a balance of learning and fun. People know me for certain things and I like that. My confidence has grown a lot.

Red Balloon is a place to flourish and build your personality, a good balance of fun and education.

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Financial review

Risk assesment Structure, governance and management

Financial review

Red Balloon Learner Centre Group (‘the Charity’) acts as the coordinating and service centre for a number of related Red Balloon Learner Centres in Cambridge, Norwich, North West London (in Harrow) and Reading, and an online provision, Red Balloon of the Air (‘RBAir’). These entities are separately registered charities and companies limited by guarantee, with the local trustees as their directors; they operate under the Red Balloon name by way of an association agreement.

Red Balloon legally restructured in 2017-18: the RB-Reading and RB-Cambridge entities joined the RB consolidated group during 2017-18, together with RBAir, as required by UK accounting standards.

Consolidated income increased by £47k on prior year to £3,017k (2019: £2,970k); £94k from increase in fee income, which was mainly due to 41% higher fee income in RB-Reading, partially offset by the decrease in fee income in RBAir. Income from donations and grants decreased by £31k on prior year to £757k (2019: £788k) and income from other trading activities decreased by £56k to £Nil (2019: £56k), due to fundraising events not taking place in 2019-20. Other income increased by £38k (2019: £Nil) in relation to the Coronavirus Job Retention Scheme grant claimed by the Charity.

Costs increased by £2k on prior year to £2,859k (2019: £2,857k) despite a 17% reduction of expenditure in RBAir, due to higher costs in the other three entities; 26%, 6% and 3% increases in RB-Reading, RB-Cambridge and the Charity respectively.

Overall, there was a consolidated surplus of £159k (2019: £113k), of which £28k (2019: £75k) was attributable to the Charity, £16k (2019: £61k) to RB-Cambridge, £127k (2019: £52k) to RBReading, £2k (2019: £54k deficit) to RBAir and the balance of £14k deficit (2019: £21k) due to consolidation adjustments.

RBAir’s fee income decreased by £144k in 201920 to £1,165k (2019: £1,309k) due to the drop in student numbers at the start of the year. In response to the fall in student numbers, a comprehensive restructure was carried out during the year, with the ultimate result of reducing the fixed costs and improving efficiencies across the board, placing RBAir in a strong position to weather any future fluctuations in income. These measures were complemented by a review of pricing strategy, and a renewed focus on marketing which led to a noticeable increase in demand. The result was a £278k reduction in expenditure. At 31 August 2020, RBAir held £148k (2019: £104k) of unrestricted reserves which provided approximately 1.2 months (2019: one month) of expenditure cover. With the comprehensive restructure of the business carried out in 2019-20 and the other strategies for growth, the Trustees and SLT of RBAir are aiming to gradually increase its unrestricted reserves over the following two years.

The Charity’s net assets increased by £28k to £1,899k (2019: £1,871k) in the year. Its income decreased by £17k to £996k (2019: £1,013k); £56k decrease due to no income being generated from fundraising events, £2k decrease from donations and grants income, £38k increase in relation to the Coronavirus Job Retention Scheme and £3k net increase in other income categories. Costs increased by £29k to £967k (2019: £938k) due to higher expenditure in the following areas: £47k in bursaries and grants awarded to other Red Balloons; £13k in premises costs and £4k in depreciation and amortisation charges. This was partially offset by lower expenditure of 23k in fundraising expenses due to no expenditure being incurred for fundraising events, £10k in recruitment and professional costs and £2k net decrease in other areas.

At 31 August 2020, the consolidated group’s net assets amounted to £2,540k (2019: £2,381k), of which approximately £1,624k (2019: £1,584k) is in fixed assets (net of mortgages).

Information on Red Balloon

Red Balloon is in the process of restructuring, and so only some entities are included in these consolidated accounts. Across all Red Balloon entities for a full year, the aggregated income amounts to £4,101k, a 3% increase on the previous year of £3,983k. Fee income increased by 4%, donations and grants income increased by 1%. Aggregate costs amounted to £3,623k, a 1% decrease on the previous year of £3,651k. The net surplus was £478k (2019: £332k).

Investment policy and performance

Surplus funds are split between CAF Bank savings accounts, paying interest at approximately 0.01% pa (2019: 0.15% pa) and funds held with Investec. Around 70% of the Investec funds are held as cash paying 0% pa (2019: 0.25% pa) interest, 10% in fixed interest investments and the remaining 20% in UK and international equities; in the year ended 31 August 2020, the average return on all Investec funds was 1.07% pa (2019: 1.14%). The Trustees believe this appropriately balanced the need for ready access, good security and investment return. Other investment options are being considered for the Investec cash funds.

Reserves policy

The trustees aim to keep reserves in line with Charity Commission guidance, and, having assessed the various risks to the Charity, believe a policy to maintain a level of free reserves at six months underlying operating costs is appropriate. Free reserves are calculated as unrestricted reserves, less fixed assets excluding fixed asset investments, net of mortgages. At 31 August 2020, the Charity held free reserves of £309k (2019: £270k), equating to around seven months (2019: six months) operating costs.

The Charity’s net costs have decreased in 2020-21 due to lower staff costs following redundancies and a role not being replaced. The Trustees of the Charity, however, will continue to closely monitor the reserves position in the forthcoming year. Monies donated for a specific purpose are held as restricted reserves and separately tracked and accounted for (see financial statements and accompanying notes).

Going concern

RBAir, RB-Cambridge and RB-Reading were able to maintain their provisions despite the challenges posed by the Covid-19 situation, and have seen no major adverse impact on operations as a result of the pandemic. The continued growth in enquiries for the three entities has not been impacted by Covid-19. In the Charity, grants and donations income has not been adversely affected by Covid-19 so far either, although due to uncertainties at the start of the pandemic, six employees of the Charity were placed on furlough for varying periods. Following detailed review of the Company’s forecasts and projections, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

There were no significant events affecting the Charity’s financial position during the year and the Charity's financial position at the end of the reporting period remained stable. Although the Covid-19 situation has had minimal impact on the financial situation of the Charity to date, steps were taken in the latter half of 2019-20 to reduce costs, due to the risk of decrease in grants and donations income in the 2020-21 and 2021-22 financial years.

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Risk assessment

The Trustees have assessed the major risks to which the Charity is exposed, and are satisfied that the appropriate actions, policies and procedures are in place to mitigate, but not totally eliminate, the exposure to the major risks. These are described below:

Major risks, and impact Mitigating actions and responses

Taster day for potential students to experience Red Balloon and agree to its operating principles.

Inadequate service provision – students fail to improve and to return to mainstream education or training.

Individually negotiated curriculum for each student, and proper assessment of their needs.

Recruitment of high-quality staff and counsellors who embrace Red Balloon’s way of operating.

Regular assessment of student’s holistic progress; student feedback and discussion; adaptation of curriculum and approach as needed. Training for staff to keep up to date with subject material and regulations.

Student safeguarding – students harmed or self-harming.

Management will ensure staff members are fully conversant and compliant with safeguarding policies, and ensure their training is up-to-date. Appropriate de-escalation procedures are in place in the event of an incident.

Health and safety risk assessment policies up-to-date and inspections carried out at appropriate intervals.

Central monitoring of compliance at Learner Centres and RBAir.

Monitoring of changes in regulation, policies and approach with government departments, regulators, commissioners and inspectorates, and adjusting Red Balloon policies, processes and provision as required. Monitoring the status of RBAir, and managing its online provision in line with all applicable regulations. Engagement with lawmakers and educators on support for bullied children, including acting as secretariat for the All-Party Parliamentary Group on Bullying.

Changes in government policy or regulation – adverse inspections of Learner Centres, and ability to deliver online provision through RBAir.

Focused fundraising by a dedicated development team; setting fees at an appropriate level; marketing of Red Balloon services to ensure an adequate pipeline of students. Proper budgeting and efficient cost management. Monitoring cash balances with an appropriate level of reserves on hand.

– Financial insolvency inadequate funding to cover expenditure

Loss of IT data and/or access to central systems – resulting in confidential data loss and/or operational disruption including online provision.

Ensuring software and virus protection on devices are up-to-date, as well as restricted physical access. Appropriate password protection maintained and offsite/cloud backup in line with IT policies. Confidential personal information is identified and encrypted. A second and distinct data line maintained for RBAir.

Structure, governance and management

Constitution

iv) The Financial Controller acquaints them with the financial basis of the Charity.

The Charity is registered as a charitable company limited by guarantee.

v) The trustees are given the documents issued by the Charity Commission regarding the duties of trustees ("The Essential Trustee"), together with "Red Balloon - An Introduction".

The Charity is constituted under a Memorandum of Association dated 21 February 2005 and its charity registration number is 1109606.

vi) All trustees are required to provide satisfactory DBS clearing, complete basic online PREVENT and Child Protection training, a Trustee Declaration of Interests and confirm that they are a suitable person to stand as a Trustee.

Method of appointment or election of trustees

vii) The induction process includes meetings with the main contact staff relevant to their specific job role and other trustees. Final election and confirmation as a Trustee is carried out at a full Trustee meeting.

The management of the Charity is the responsibility of the trustees who are elected and co-opted under the terms of the Articles of Association. Trustees are recruited to fulfil specific roles. Job roles are clearly described and the appropriate level of skills and experience required is clearly defined. Positions are advertised and formal applications requested. Interviews take place and candidates who most closely match the selection criteria are invited to attend a trustee meeting as an observer. No person or external body other than the trustees are entitled to appoint trustees.

Organisational structure and decision making

i) The Charity operates from its Offices at Winship House in Milton, Cambridge. The Executive Officer oversees individuals with responsibility for development and fundraising, marketing and communications, IT, finance and human resources.

Policies adopted for the induction and training of trustees

ii) Day-to-day decisions are made by the Executive Officer, who will refer to the Chair of Trustees, the President or another trustee for advice or guidance if necessary.

i) All new trustees are invited to visit an existing Red Balloon Learner Centre in order to appreciate how it differs from a school and how it operates. ii) All new trustees meet with the Chair, the Executive Officer, the President and the Financial Controller. The Chair explains the aims of the Charity.

iii) The Board of Trustees meets formally approximately every six weeks, when they receive and discuss written reports from the Executive Officer, Director of Fundraising and Communications and Financial Controller.

iii) The President describes the history of the founding and development of Red Balloon, defines 'bullying' with examples of the kind of treatment to which students were subjected in mainstream school and which led to them refusing or becoming unable to attend. She expounds the five core principles governing the operation of the individual Learner Centres.

iv) Major policy and project proposals are brought to the attention of the trustees by the Executive Officer, discussed, and decisions made are minuted and subsequently implemented. There is a schedule of matters reserved for the board. v) At each meeting, the Chair asks the trustees to record any potential conflict of interest.

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Structure, governance and management

Compliance with the Code of Fundraising Practice

Pay policy

A set of pay bands has been established which define a pay range for each group of staff, taking into account level of responsibility, qualifications and experience. Key management remuneration on appointment and any subsequent changes are authorised by the Trustees. An appropriate local set of pay bands has been implemented at other locations. Performance reviews take place for all staff. Key management remuneration details are included in note 10.

The Charity is registered with the Fundraising Regulator to demonstrate its commitment to transparent charity management and adhering to the Code of Fundraising Practice. Supporters have the right to know that the Charity can be trusted to be open and honest and that they will be treated with care and respect. The Charity’s fundraising promise is published on its website which explains what supporters can expect from it and what to do if they have any concerns.

Fund-raising standards information CA 162A

The data protection statement online has been expanded so supporters can see how the Charity manages and uses their data within the General Data Protection Regulations. They are invited to change the way the Charity communicates with them at any time. It has introduced Donorfy Customer Relationship Management system to ensure that its donor data is held appropriately and securely. This forms an integral part of achieving readiness for growth.

Red Balloon Learner Centre Group (RBLCG) raises some funds from the public.

i) RBLCG undertakes fundraising through our internal resources and we do not commission a professional fundraiser/commercial participator for these;

ii) RBLCG is not subject to an undertaking to be bound by any voluntary scheme for regulating fundraising, or voluntary standard for fundraising in respect of activities on behalf of the charity; iii) RBLCG monitors fundraising activities via the Director of Fundraising and Communications board report and via fortnightly meetings; iv) RBLCG received no complaints during the year about activities for the purpose of fundraising; v) RBLCG has adopted principles of GDPR legislation and also has safeguarding policies to protect the data of vulnerable people and other members of the public from:

The Charity's fundraising activities continue to be largely focused on approaches to grant-making bodies as well as high net-worth individuals, but it has been developing its stewardship of individual donors, to encourage regular giving and community fundraising.

Public benefit

The Trustees have had regard to the Charity Commission guidance on Public Benefit. Red Balloon Learner Centres provide an 'intensive care' full-time education, mainly for children aged 11 -18 who have been so seriously bullied or traumatised that they exclude themselves from school. There is no other purpose-made scheme to help this group of children recover and to restore them to normal life. They are provided with a safe environment with clear boundaries for behaviour and a bespoke full-time academic, pastoral and therapeutic programme.

a. Unreasonable intrusion on a person’s privacy; b. Unreasonable persistent approaches for the purpose of soliciting or otherwise procuring money or other property on behalf of the charity;
c. Placing undue pressure on a person to give money or other property.

Structure, governance and management

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 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.

According to research carried out by the National Centre for Social Research in 2011 (Estimating the Prevalence of Young People Absent from School because of Bullying), of the approximately 3.1 million 11 to 15 year olds in England, about five in one thousand, or 16,500 children, have been bullied to the point that they have left the mainstream educational system.

Experience in Red Balloon’s Centres and at RBAir causes us to believe that there is a need for much wider access in the UK to provision of the kind that Red Balloon offers. Red Balloon improves the skills and life opportunities of a group of socially isolated, anxious and ignored children. It contributes to stronger communities by identifying and addressing the problem of seriously bullied and traumatised children with the help of the community, and for the benefit of the community.

Disclosure of information to the auditor

Each of the persons who are trustees at the time when this Trustees' Report is approved has confirmed that so far as that trustee is aware, there is no relevant audit information of which the charitable company's auditors are unaware, and that trustee has taken all the steps that ought to have been taken as a trustee in order to be aware of any information needed by the charitable company's auditors In connection with preparing their report and to establish that the charitable company's auditors are aware of that information.

Trustees' responsibilities

The Trustees (who are also Directors of Red Balloon Learner Centre Group 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).

Auditor

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 the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to: select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP; make judgments and accounting estimates that are reasonable and prudent; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

The auditors, Price Bailey LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion re-appointing the auditors at a meeting of the Trustees. In preparing this report, the trustees have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the trustees on 20 May 2021 and signed on their behalf by:

Beverley Williams

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Administrative details of the charity, its trustees and advisors

Charity registration number 1109606

Company registration 05385341 number

Dr Carrie M H Herbert, President Ms Beverley A Williams, Chair Mr Michael A Frankl, Chair (resigned 21 May 2020) Revd Prof Michael J Reiss Mr Charles L Joseland (resigned 19 September 2019) Ms Josephine A Collier (appointed and resigned 19 September 2019) Mr Kevin J Taylor (resigned 17 September 2020) Ms Elizabeth M Allan Mr Edward A Bowers (appointed 2 April 2020 and resigned 16 October 2020) Mr Simon P Mace (appointed 19 November 2020)

Trustees and Directors

Executive Officer

Chief Executive Officer: Ms Lena Milosevic (resigned 5th October 2020) Director of Education: Mr Robert Watson (appointed 2 January 2020)

Dr Carrie M H Herbert

Company Secretary

Principal/Registered office

Winship House, Winship Road, Milton Cambridge CB24 6AP

Independent auditors

Price Bailey LLP Chartered Accountants & Statutory Auditors Tennyson House Cambridge Business Park Cambridge CB4 0WZ

Bankers

CAF Bank Ltd 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ

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Auditor's report and financial statements for the year ended 31 August 2020

Independent auditor's report to the members of Red Balloon Learner Centre Group

Opinion

We have audited the consolidated financial statements of Red Balloon Learner Centre Group (the ‘parent charitable company’) and its subsidiaries for the year ended 31 August 2020 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Independent auditor's report to the members of Red Balloon Learner Centre Group

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s 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.

In our opinion the financial statements:

give a true and fair view of the state of the group’s and parent charitable company’s affairs as at 31 August 2020, and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the trustees’ report (incorporating the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and the directors’ report has been prepared in accordance with applicable legal requirements.

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 group’s 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.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and parent 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 in relation to which the Companies Act 2006 require us to report to you if, in our opinion:

adequate and sufficient accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.

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RED BALLOON LEARNER CENTRE GROUP

Independent auditor's report to the members of Red Balloon Learner Centre Group

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 35, 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 group’s and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Helena Wilkinson BSc FCA DChA (Senior Statutory Auditor)

for and on behalf of PRICE BAILEY LLP Chartered Accountants Statutory Auditors Tennyson House Cambridge Business Park Cambridge CB4 0WZ

(a company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2020

Date: 27 May 2021

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RED BALLOON LEARNER CENTRE GROUP

(a company limited by guarantee)

REGISTERED COMPANY NUMBER: 05385341

CONSOLIDATED BALANCE SHEET

AS AT 31 AUGUST 2020

........................................................................................................... ........................................................................................................... Michael Reiss - Trustee

Beverley Williams - Trustee

(a company limited by guarantee) REGISTERED COMPANY NUMBER: 05385341

CHARITY BALANCE SHEET