2023-08-31-accounts - Red Balloon Educational Trust

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Red Balloon Educational Trust Willow Lodge 37 High Street Milton Cambridge CB24 6DF

Tel: 01233 366052 Email: admin@rbet.ac

Charity no: 1109606

www.redballoonlearner.org

Red Balloon Educational Trust Annual Report 2022/23

Our son has gone from being out of school, unable to attend for two years, to attending every day and, more importantly, enjoying it.

His first year has been such a lovely journey to witness as a family with his many achievements. We just knew he needed to be in the right place and Red Balloon is certainly it!

Parent Red Balloon Worthing

When anxiety, stress, trauma or bullying make it impossible to be in the classroom, some young people are left with no hope. Red Balloon‘s support meets students where they are, helping get their education, confidence and happiness back on track, and putting their futures in their hands once more.

Red Balloon Educational Trust Annual Report 2022/23

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-engagement 18 Alumni Case Study 20 Fundraising 23 Supporter case study 24 Our plans for the future 26 Financial review 30 Risk assessment 33 Structure, governance and management 34 Administrative details 37 Independent auditor's report 40 Financial statements 44 Notes to the financial statements 48

Red Balloon Educational Trust Annual Report 2022/23

Introduction from the Chair

2022–2023 was a year for promoting Red Balloon Educational Trust, with new opportunities fast approaching.

One was the opening of Red Balloon Worthing, whose journey had begun in 2021 when a generous donor, Nick Munday, decided there was a need for a Red Balloon Centre in Worthing. He bought a care home, gathered together willing volunteers and set about its refurbishment. Local businesses supplied paint and carpets, organisations gave us furniture, musical instruments, kitchen equipment and much more, local funds were raised. By the beginning of September 2022 the head teacher and administrator had been appointed, teachers and mentors were being interviewed, and excellent local educators, business people and skilled volunteers had been invited to join the governing body.

It had been anticipated that we would have about three quarters of our maximum intake by the summer. But by Christmas we already had the names and details of twenty children who had been referred and while we accepted them gradually, we were full by Easter. There is now a waiting list, proving once again that, especially post-pandemic, a significant number of children are self - excluding school refusers who need an education. The Red Balloon Recovery Programme focuses on a young person’s wellbeing and social and emotional skills, as well as academic studies and exams.

Red Balloon Worthing had a successful first year and we could not be more proud of what has already been achieved in such a short space of time. Encouraged by this and the support we had from the West Sussex local.

authority, Nick Munday began making plans to open a second Centre in the area with the help of the local governors and RBET trustees

In September 2022 the property RBET owned in Earlham Road, Norwich became vacant and the trustees decided to refurbish it and open RBETNorfolk there, for 20 children daily and a further number accessing RBAir for academic studies and therapy, and then attending the Centre for social activities. By March 2023 we began getting ready to open the Centre, called RBET-Norfolk, later that year.

Pushing forward with our mission to reach more children across the country, we also opened a new Red Balloon of the Air student hub in Peterborough, expanding our capacity for face-toface sessions for local children.

The RBAir Centre at Danbury continues to flourish, but the property we rent is limited in space. We therefore intend to move this provision and establish a fully functioning Centre in nearby Chelmsford for daily students as well as those primarily educated online. The hunt is on for money from organisations, donors and charitable foundations.

In September 2022 RBET and Red Balloon of the Air moved into the newly purchased and refurbished property in Milton. Willow Lodge offers a space for the young people on RBAir to take part in community and social activities, such as arts and crafts, baking, science experiments and celebrations, and confidential rooms for therapy and mentoring, as well as office space for RBET.

The move to Willow Lodge with a smaller mortgage repayment than the rent for Winship House helped maintain financial stability during a

time of uncertainty and rising costs, putting us in a strong position to continue to create more places for those in need of Red Balloon.

I take the opportunity to congratulate our students for their achievements over the year. Across RBET in 2022, 48 students, many of whom had been out of school for months if not years, were able to sit exams and obtain qualifications. These young people had previously not been attending lessons and faced many additional mental health barriers to education, learning and to sitting exams. Despite these setbacks, 92% of Red Balloon of the Air students who sat a Maths GCSE received a 4-9 (the old A*- C grades) and all five students who sat for a qualification at Red Balloon Worthing, after only weeks on the RB Recovery Programme, obtained at least one qualification (in some cases more than one).

More broadly, our students have made strides in building their resilience, confidence and independence. Many joined field trips for the first time, went to the theatre, tried a new activity, and made new friends at their Centre. We’re pleased that 43 students this year had the skills and qualifications they needed to move on from Red Balloon and return to mainstream school or enter college, further training or employment.

In mid 2022 we were approached by Jane Cole from Aylesbury who wanted to open a small alternative provision for children finding it impossible to attend a mainstream school. With significant support from the William Harding’s Charity (WHC), and together with Jane as the Project Coordinator, we are now on our way to setting up a Centre in Aylesbury with the WHC buying and refurbishing a property for us to rent.

Finally, I should also like to pay tribute to the staff and supporters across RBET: the Heads of Centre, teachers, mentors, administrators, central services staff, therapists, housekeepers, and our generous volunteers for all they have done in the last 12 months to support the recovery of bullied and severely anxious, traumatised young people. Without this great team's spirit, skill, energy, focus and patience our young people would not have succeeded so wonderfully in taking the next steps in their journey of life. Thank you all for your sterling work as we strive to help more and more young people in need.

With warm regards,

Carrie Herbert Founder and Chair of Trustees

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About Red Balloon

Red Balloon is a safe haven for young people between the ages of 11 and 18 who are unable to attend mainstream schools due to serious social, emotional, and mental health difficulties, as well as trauma or unmet special educational needs in their previous schools. These students have missed out on months, if not years, of education and the resulting opportunities and experiences. They become increasingly isolated and lose their confidence and self-esteem. Without intervention, they risk falling through the cracks in our education and mental health systems, making their transition into adult life difficult.

With the generous support of our donors and volunteers, Red Balloon offers a comprehensive and holistic educational programme that focuses on social re-engagement, academic education, and wellbeing. Our students receive the care and support they need to recover their confidence and selfesteem. With us, they rediscover the joy of learning. We empower them to move forward in life by returning to mainstream education, entering into further education or training, or beginning employment.

Even with the pandemic still affecting our students, and with almost 100,000 children missing from schools (Centre for Social Justice, Lost but not Forgotten, 2022), Red Balloon's work is more critical than ever. We are working with commissioners and donors to meet this challenge and ensure that education remains accessible to all.

About Red Balloon Educational Trust

Red Balloon Educational Trust operates the Red Balloon of the Air provision (since Oct 21) and Red Balloon Worthing (opened Sept 22), as well as continuing to act as the coordinating and service centre for the other four physical Centres. These four Centres 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. The Red Balloon of the Air provision also operated through a separately registered charity and company limited by guarantee until Oct 21.

Our year at a glance

Our students achieve amazing things. Of the 50 students who took GCSE exams and other qualifications in the 2022-23 year:

75% pass rate in GCSE exams 96% pass rate in non-GCSE exams

This year, our students achieved:

This year, we supported:

70% attendance across all Centres

117

children total

This year, we provided:

25619 lessons 1293

after school clubs

wellbeing sessions

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Red Balloon Educational Trust Annual Report 2022/23 Red Balloon Annual Report 2018/19 | 07

Our locations

Our RBET Centre, based at Willow Lodge in Milton, on the outskirts of Cambridge, is home to the blended online and face-to-face provision, Red Balloon of the Air, but covering various different counties, with several face-to-face hubs. RBET's Central Services team is also based at Willow Lodge.

In September 2022 RBET opened a new physical Centre in Worthing, and in April 2022 another RBAir face-toface hub was opened in Peterborough.

The four other Red Balloon Learner Centres are run by four separately registered charitable companies limited by guarantee, operating under the Red Balloon name by way of an association agreement. They are based in domestic houses in Cambridge, Norwich, NW London and Reading.

RBET

Red Balloon of the Air face-to-face hubs

Red Balloon Educational Trust supports students across the counties highlighted above.

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New Centre: Red Balloon Worthing

In the autumn of 2022, we opened Red Balloon Worthing, our first physical Centre under the new Trust umbrella.

Red Balloon Worthing can take up to 20 students who attend on a full-time basis. In addition, up to 25 young people who are on Red Balloon of the Air can participate in the inperson elements of the programme such as community sessions, therapy or mentoring. This means Red Balloon Worthing has increased our capacity by 45 students.

Red Balloon Worthing is the result of an enormous amount of collaboration and generosity from the local community. Thanks to Nick Munday, a local businessman, benefactor, and now Trustee of RBET, we are able to rent our building at a significantly reduced rate, helping to ensure financial stability and longevity for the Centre and the students it will help. We were also able to refurbish the building to create a space that meets the specific needs of our cohort and allows us to use the building in the most effective way.

The refurbishment was completed with help from wonderful volunteers like those at the Carpenter Box Foundation, and we received many donations and gifts of furniture, musical instruments and other supplies that have made the Centre feel cosy, welcoming and a great place to begin learning again.

While we normally estimate a Centre will have 20 students by the end of its second year, Red Balloon Worthing reached this milestone in less than one. It has been wonderful to have such a full and vibrant student community so early on in the Centre’s life, but has also been indicative of a growing need we’re seeing across the country for a different kind of education.

Over the first year, the staff and students have had some amazing adventures and done a tremendous amount of work. Students have conducted science experiments, cleaned up their local beaches, visited museums and celebrated everything from Anti-Bullying Week to World Book Day to Lunar New Year! Towards the end of the academic year, five students took a courageous step and decided to sit exams. This in itself is a huge achievement, but as the cherry on top, all five students passed each exam they took, receiving at least one, and in some cases more than one, qualification.

We’re so thankful to all our supporters, donors and volunteers for helping us to bring this project to fruition, and most of all, we are proud of all the students and staff at Red Balloon Worthing, who have made this an exceptionally strong first year.

Worthing mayor Henna Chowdhury, East Worthing and Shoreham MP Tim Loughton and Rachel Munday, who helped set up the centre, cut the ribbon to officially open Red Balloon Worthing.

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Message from the Director of Education

Red Balloon Educational Trust consists of Red Balloon of the Air, Red Balloon Worthing and a central services team that provide the underpinning support and organisational development for the network of associated Learner Centres. During this reporting period the central services team provided strategic, educational, wellbeing, IT, HR, fundraising, communications and administrative support, so that staff in the Centres can focus on what they do best – changing the lives of bullied and vulnerable young people.

This year we continued to focus on growth and expansion. Our focus is always the young people who can benefit from our program, and we aim to assist as many as possible.

2022-23 saw the continuation of our plan to grow our operation to support more young people. The leaseholders of our property in Earlham Road, Norwich (Red Balloon - Norwich, a separate entity) moved to new premises allowing us to develop the building to provide a new facility, RBET - Norfolk, under the direct operational control of Red Balloon Educational Trust. The work to open this new Centre as a registered school will be completed in 2023-24.

Willow Lodge, the base for Red Balloon of the Air and Red Balloon Central Services acquired in 2021-22, has been further developed during this period to provide additional provision for post 16 students. This has been another area of growth for the charity, working with young people who benefit from additional time to build the social skills they need to become resilient, confident and self-sustaining members of the adult community.

Red Balloon Worthing was successfully registered as an independent school with the Department of Education and opened to students in September 2022. Demand exceeded expectations, and by the time this reporting period ended, it was operating at full capacity and was rapidly gaining a local reputation for excellence. This is a testament to the work of Kim Anderson, Head of Centre, and her team. The Centre anticipates its first formal Ofsted inspection in the 2023-24 reporting period and so it is focusing on establishing the systems, practices and processes that will ensure the excellence of its student provision is sustainable over time.

We are thankful for our donors whose generosity has allowed us to plan with increased certainty. Each donation has made a great impact and enabled further mental health support for our students to meet their increased needs. We operate in a climate that has seen the scale of need grow substantially, but access to services become increasingly limited. We are happy to be a part of the solution to this national crisis and are planning to do more. As ever, we wish weren’t needed, but as a country, we seem further away from this panacea than at any time in our history.

Warm regards,

Rob Watson Director of Education

“Student wellbeing is still at the centre of everything we do, and we'll keep helping our youth overcome any obstacles that may come their way.”

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Our values, ethos and practice

Red Balloon Learner Centres were established for the recovery of severely bullied, traumatised or highly anxious children and young people who are missing education.

The students are typically those who self-excluded and had been out of school for some time, in some cases years. They have lost their confidence in learning, making friends, their trust in adults and the education system. The Recovery Programme that was developed has three components: a robust and negotiated curriculum, an integrated therapy and creative arts programme, and local community activities.

The breakdown of these three areas is based on the learners’ needs. Often when they first arrive it is important to create a safe space, so therapy, community activities and the creative arts provide the opportunity to build confidence before academic learning can begin.

Students are given support to:

rebuild their self-esteem and grow as individuals
develop resilience and a positive self-image
build the necessary learning skills 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:

ie 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

a

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

Social, emotional and psychological support is critical to our young people's ability to recover, learn and succeed.

My mental health experience at Red Balloon has been so, so much better than at any of my other schools.

It's vital for every child to have a nurturing environment that promotes their self-confidence, resilience, and emotional and social wellbeing.

Wellbeing support is integral to all our sessions at Red Balloon. Not all young people can attend mainstream education due to reasons including bullying, trauma, mental ill-health, emotionalbased school avoidance, and lack of support. Our approach is to prioritise wellbeing for all students. By working closely with our licensed therapists, we help students regain their self-belief and self-worth. We ensure that psychological support is integrated into their daily schedule as a crucial part of their emotional recovery and further success.

At Red Balloon, we also offer a range of wellbeing activities, such as non-competitive sports, yoga, and meditation, to help students recharge and move beyond their comfort zones. For students who struggle with social interaction and trust, we provide animal-assisted therapy, which has been shown to be effective in encouraging students to come out of their shells.

Our mentors play a critical role in supporting students' emotional and social recovery. For students who are too anxious to attend in-person sessions, mentors visit them at home and work with them one-on-one to develop the confidence and skills needed to thrive outside their homes. They act as a role model, mentor, and first point of contact for students and support them in achieving their personal goals. When it's time for students to move on, mentors continue to offer support as they embark on their next venture.

We believe that students' wellbeing is key to their ability to learn, grow, and succeed. Mental health and emotional recovery are priorities for all of our young people.

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Education

Tailored lessons that match our students interests and abilities and goals to rekindle a passion and love of learning once more.

I’m so fortunate to be here at Red Balloon and finally love learning again.

Young people learn in all sorts of ways. When we give them the chance to collaborate on a learning plan that helps them reach their goals, includes their interests and meets their learning needs, they get excited to arrive and learn at Red Balloon every day.

Returning to learning after a long period away can be incredibly challenging, both academically and emotionally. It’s therefore vital that we make learning a fun, exciting and shame-free experience. With a negotiated curriculum we meet the student where they are and engage with their interests. We ask them about their goals and how they think they learn best. Together we create an individualised curriculum that prepares them for their next steps, builds their academic and critical thinking skills and helps them to feel confident in their skills, excited to learn and curious about the world around them.

To help ease the transition back into a learning environment students might start off with a few 1:1 sessions with their teacher. This helps them build a trusting relationship, and when they’re feeling a bit more confident, they’ll join a small group of others. This ensures they can work at their own pace, ask lots of questions and collaborate with their peers without getting overwhelmed.

For young people who’ve had very negative experiences with school or for those with additional sensory needs, the physical environment of a school building can be scary and overwhelming. Our Centres and Student Hubs are designed with this in mind, being in the main converted houses, so they immediately have a homely, safe feeling. We have comfy chairs, cosy corners and quiet spaces where students can go if they’re getting overwhelmed and need a break. Instead of uniforms, students get to wear clothes that feel comfortable to learn in and express their own personal style. To make it feel even less like a formal school, young people call staff by their first names and every day, the students and staff gather to enjoy a home cooked lunch, check in with each other and discuss matters for the day.

All students have access to English, Maths, Sciences, Humanities and Personal, Social, Health and Economic Education (PSHEE). Further subjects vary from Centre to Centre, depending heavily on student interest, but some popular subjects have been Psychology, Animal Care and Art. Of course, if a student has a particular area of interest they wish to pursue further or are looking to gain a qualification in, we make every effort to support them in this. Students also have access to extracurricular activities like trips and clubs.

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Social re-engagement

Helping students to develop the skills and confidence to comfortably engage with their peers and wider communities.

This year I’m most proud of the fact that I started going to social groups at the Centre. Everyone in the community has been really welcoming and nice. 99

We want our young people to build positive and genuine relationships, find a sense of belonging and feel confident engaging with the wider world.

Prior to finding Red Balloon, most of our students were not attending school and some were unable to leave their homes or even their bedrooms. Without the routine of school, many had lost connections with friends, and were missing out on the day-to-day interactions we take for granted. Losing these interactions not only means our students can become lonely and isolated, but means they miss out on the chance to develop vital interpersonal skills, making connecting with others even harder.

Students may need help, for example, with learning how to talk to new people, use the bus independently, make a phone call or use a cash point. Staff help students build their confidence to carry out these everyday interactions and to develop their self-confidence at a pace that ensures their personal growth is sustainable. This may mean carefully coaxing the young person to take a step outside, take a walk and more, until they decide they are ready to move to the next step.

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

When students are ready to move on from Red Balloon they may need help with moving into a new environment. This might include assisting them to plan their route to college, explore the campus in advance or identify and meet people who can help them if they need support.

Social re-engagement can be a slow process, but it is incredibly rewarding for students who, for a long time, didn’t have friends, didn’t feel they could trust the adults around them and had become increasingly fearful of everyday interactions with the wider world. It is wonderful when staff get to send them on to their next adventure and can visibly see the shift in their confidence and willingness to engage with others and take those everyday risks.

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Fundraising: a year of amazing support

We couldn't do what we do without our incredible supporters who have donated money, time, and expertise to keep our Centres running and help us reach more young people in need of our provision. It is thanks to them that our young people are able to turn their lives around.

A very special thanks to our supporters below

BBC Children in Need Birketts LLP

Cambridge Intelligence Cambridgeshire Community Foundation and the Marshall Community First Fund Caprice Wind Orchestra Carpenter Box Charitable Foundation Clare King Charitable Trust David Soanes Diarmuid Ó Séaghdha The Foyle Foundation The Garfield Weston Foundation Jane Cole

Katriona Scoffin National Philanthropic Trust and the Eligator and Sansom fund Network for Social Change Charitable Trust Nic Humphries

Philip King Charitable Trust Russel Matthews and Emma Helby The Stockwell / Cliffe Charitable Trust Tesco Stronger Starts The Armourers & Brasiers' Gauntlet Trust The Clare Foundation The Ingles Charitable Trust The New Inn

For every £1 we spent in 2022/23 in the Red Balloon Educational Trust consolidated group, 85.5p went on direct costs supporting students.

----- Start of picture text -----
85.5p
Supporting
students 11.6p
£1
Support and
Governance
2.9p
Fundraising
80.9%
15.8%
3.3%
----- End of picture text -----

We cannot operate effectively without good management and fundraising efforts.

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Supporter case study: Ralph Burditt ey | Local Cambridgeshire resident Ralph Burditt has supported Red Balloon since 2017, when he got involved a — with a fundraiser to refurbish Red Balloon Cambridge’s Art Room. Fundraising throughout the year Ralph and team raised a wonderful £2804.37. Since then he has been a stalwart supporter and an incredible ambassador, raising awareness of Red Balloon and all we do.

Supporter Ralph tells his story, from his first interactions with Red Balloon to his future plans.

I first heard about Red Balloon from a colleague at work. I was looking for a local charity for my team to support and as someone who was bullied at school themselves, the Red Balloon story spoke to me.

We decided to raise some money to help refurbish the Art Room and did an event at work called “Wear Red for Red Balloon” in which we encouraged employees to wear something red to work and make a donation. It went pretty well, and we raised around £300.

Our first event only raised about 1.5% of the total money needed, so we wanted to raise some more! A few of us ran the Greater Cambridge 10k together and raised almost £3,000, which was fantastic!

We’ve done more Wear Red for Red Balloons since that first, and four cycling events called Red Balloon Rides - which were born out of the need to have a remote event (as the office was empty). The Red Balloon Rides have been really successful and I’m really proud not only of how much we raised, but also that Red Balloon adopted them as an “official” event.

The rides have all been great in their own way, but my favourite was the last one in 2022, when I got the chance to visit all of the Centres and

meet some of the wonderful people who make Red Balloon tick. It also included some pretty epic bike rides, including 250km over two days to Worthing.

I’d like to find new and different ways to raise money, and to keep promoting Red Balloon so that they can reach more children in need of support.

Red Balloon’s work is absolutely essential. What really brought this home to me was when I was fortunate enough to meet some young people that Red Balloon has helped and to hear their stories. Hearing firsthand how Red Balloon has completely changed their lives was thoroughly inspiring. Some of the children which Red Balloon has helped have been completely isolated and at the point of wanting to end their lives. Red Balloon has got them back to feeling positive about themselves, back into education and looking forward to the future. That’s pretty great, if you ask me.

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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

Open more Red Balloon Centres and offer more places at each Centre, using RBAir, to meet the needs of the growing number of severely bullied and highly anxious children and those with trauma-informed backgrounds who are unable and unwilling to attend mainstream school

Raise the standards at all Red Balloon Centres with regard to our educational, wellbeing, and personal recovery programme. Ensure staff understand and apply RB's Philosophy and Practice and are at the forefront of best practice, offering a first-class support to students Provide opportunities for professional development through regular meetings with staff from each of our Centres to exchange best practice, discuss current trends in education and discuss relevant and challenging theories of learning

Continue to develop secure safeguarding systems, encouraging appropriate training for all staff and streamlining administrative processes and logistical tasks, thereby improving efficiency and reducing the time and costs associated with such work.

Inspire more people to support our work

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 that 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 raise the attention of local authorities and other educational bodies to the

importance of student wellbeing, particularly in regions which we have identified for growth.

Reach more isolated and vulnerable children

To meet the growing need, we shall expand Red Balloon provision so we can reach more bullied, anxious and traumatised children.

This past year we have achieved this goal by:

opening a new Centre in Worthing, West Sussex.

expanding Cambridge and NW London Centres - by 20 children each.

opening a hub in Peterborough.

And we will continue to work towards this aim by:

opening a further additional Centre in Aylesbury

planning to expand RBAir Danbury and move it to Chelmsford, and opening a second Centre in West Sussex

continuing to support an increasing the number of students on Red Balloon of the Air. exploring ways to establish hybrid Centres that offer places for 20 children to attend daily and for a further 25 children (who have academic studies and therapy online with RBAir) to have the opportunity to use the Centre in the late afternoons, for social and community activities as well as drama, art, music and science experiments.

Manage our charity as effectively and efficiently as possible

We will continue to open more Centres under the umbrella of Red Balloon Educational Trust. Red Balloon of the Air and Red Balloon Worthing are part of RBET.

We will continue to review our procedures to ensure transparency, accountability, responsiveness and compliance with relevant regulations and legislation.

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

We will maintain pressure on the Department for Education to accredit online education in line with 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 continue to develop and implement a volunteer involvement programme to enrich students’ Red Balloon experience.

We will utilise appropriate existing and new technologies, particularly at RBAir, to enhance the ways that staff support students.

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Financial review Risk assesment Structure, governance and management

Financial review

Red Balloon Educational Trust (RBET) (‘the Charity’) operates Red Balloon’s blended online and face-to-face provision, Red Balloon of the Air (RBAir Education Activity), since Oct 21, and Red Balloon Worthing (RB-W), which opened in Sept 22. Prior to Oct 21, the RBAir Provision was operated through a separately registered charity and company limited by guarantee, Red Balloon of the Air (‘RBAir Company’). In addition, RBET continues to act as the coordinating centre for a number of related Red Balloon Learner Centres in Cambridge, Norwich, North West London (in Harrow) and Reading. 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.

On 12 October 2021, the operations, assets and liabilities of RBAir Company, except for those in relation to a lease on the Danbury property, were transferred to its parent company, Red Balloon Educational Trust. The group results for 2022-23 and the prior year include RBAir Company, as required by UK accounting standards. During 2020-21, RB-Reading and RBCambridge were consolidated for part of the year, until their disposal in May 2021.

Consolidated income increased by £500k (2022: £1,057k decrease) on prior year to £2,904k (2022: £2,404k). Fees and related income increased by £870k (2021: £1,216k decrease) to £2,345k (2022: £1,475k), £449k (2022: £52k decrease) of which was due to 30.5% higher fee income (2022: 3.4% lower fee income) from RBAir Education Activity and the balance of £421k in respect of the new RB-W Centre. Income from donations and grants decreased by £177k (2022: £47k) on prior year to £429k (2022: £606k). Fundraising events, included in other trading activities decreased by £144.5k (2022: £147k increase) to £2.5k (2022: £147k), mostly in relation to a Giving Dinner held in Oct 2021 which had raised £143k.

The significant decrease in income in the prior year can mostly be attributed to RB-Reading and RB-Cambridge’s results being included for part of the year in 2020-21.

Consolidated expenditure increased by £453k (2022: £1,294k decrease) on prior year to £2,621k (2022: £2,168k). The large decrease in the prior year was due to £850k in relation to the disposal of RB-Reading and RB-Cambridge and £770k of their expenditure for part of the year having been included in 2020-21. There was £454k increase (2022: £326k), 21% (2022: 18%) in expenditure for RBET and RBAir Education Activity combined, £55k of which related to various set up costs for the new Red Balloon Educational Trust Norfolk (RBET-N) Centre (2022: £69k set up costs for RB-W).

Overall, there was a consolidated surplus of £283k (2022: £228k), of which £283k (2022: £241k) was attributable to the Charity and £Nil (2022: £13k deficit) to RBAir Company.

RBAir Education Activity’s fee income increased by £449k in 2022-23 (2022: £52k decrease) to £1,924k (2022: £1,475k) due to increase in fees and the increased proportion of high-needs students in the cohort. £Nil (2022: £148k) of the fees were in RBAir Company and £1,924k (2022: £1,327k) in RBET as all activity is now carried out through RBET. RBAir Education Activity’s expenditure increased by £133k (2022: £154k), £166k increase in staff costs but £94k decrease in property costs, due to the 5 months overlap of the Winship House and Willow Lodge properties in the prior year and the Willow Lodge property being more cost effective. At 31 August 2023, RBAir Company held £31k (2022: £31k) of unrestricted reserves and the only transactions going through RBAir Company in 2022-23 were in relation to the Danbury lease, which was recharged in full to RBET, and trivial amounts of bank interest received and bank charges.

RB-W Centre’s fee income was £421k (2022: £Nil) and their expenditure was £427k (2022: £69k set up costs).

The Charity’s net assets increased by £283k (2022: £607k) to £3,026k (2022: £2,743k) in the year. Its income increased by £262k (2022: £1,786k) to £2,904k (2022: £2,642k). £1,017k increase (2022: £1,327k) in fee income due to the additional fee income from RB-W Centre, increase in RBAir Education Activity fees as well as their entire year fees being generated through the Charity in 2022-23. £366k decrease (2021:£366k increase) in respect of the donation on the transfer of RBAir in the prior year, £171k decrease (2022: £108k increase) from donations and grants income, £Nil (2022: £5k decrease) in relation to the Coronavirus Job Retention Scheme, £145k decrease (2022: £147k increase) in income generated from fundraising events, £43k decrease (2022: £Nil) in investment income due to a reduction in rental income partly offset by interest income and £30k net decrease (2022: £157k) in other income categories, including levies and recharges to other Red Balloons, which are no longer charged to RBAir Company, following the transfer of the RBAir Education Activity to RBET. Costs increased by £596k (2022: £1,398k) to £2,621k (2022: £2,025k) due to higher expenditure in the following areas: £667k in staff costs (2022: £1,112k); £42k (2022: £25k) in education activity costs; £20k (2022: £Nil) dilapidations provision; £33k (2022: £16k lower) in depreciation and amortisation charges and £26k net increase (2022: £51k) in other areas. This was partially offset by lower expenditure of £1k (2022: 4k) in fundraising expenses, £8k (2022: £26k higher) in bursaries awarded; £39k (2022: £76k higher) in premises costs, £97k (2022: £81k higher) in recruitment and professional costs and £47k (2022: £47k higher) in respect of programme related investments impairment. Some of the increase in costs in the current year can be attributed to RBAir Education Activity’s costs being included for the entire year (2022: 10.5 months).

At 31 August 2023, the consolidated group’s net assets amounted to £3,057k (2022: £2,774k), of which approximately £1,570k (2022: £1,766k) is in fixed assets (net of mortgages).

Investment policy and performance

During 2022-23, surplus funds were held in CAF Bank savings accounts, paying interest at the end of the financial year at approximately 2.5% pa (2022: 0.5% pa). In the prior year, some funds were also held with Investec but during 2021-22, Investec funds were liquidated and transferred in full to the CAF Bank savings accounts. Around 65% of the Investec funds had been held as cash paying 0% pa at the start of the prior year and from April 2022, 0.15% interest. Of the 35% noncash Investec funds, 10% had been held in fixed interest investments and 25% in UK and international equities. In the first quarter of 2023-24, a COIF Charities Deposit Fund, categorised as a short-term Low Volatility Net Asset Value Money Market Fund, was opened with CCLA. There is no minimum holding period and allows for withdrawals on any business day, without having to pay a penalty. The trustees believe splitting surplus funds between the CAF Bank savings account, currently paying interest at 2.5% pa and the CCLA COIF Charities Deposit Fund, currently paying interest at approximately 5.1% pa, appropriately balances the need for ready access, good security and investment return.

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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 minimum level of free reserves at three to six months of the forecasted future annual operating costs is appropriate. Free reserves are calculated as unrestricted reserves, less fixed assets excluding fixed asset investments, net of mortgages. At 31 August 2023, the Charity held free reserves of £1,238k (2022: £755k), equating to around 4.6 months (2022: 4.3 months) operating costs. The trustees of the Charity will review its reserves policy and 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

The RBAir Education Activity student numbers had remained stable in 2022-23 but student intake and enquiries have been low in 2023-24, although it is forecast that a surplus will still be generated at a departmental level. RB-W Centre, having reached its full capacity in the first year of operations, has been operating steadily and continues to do so. RBET-N, with various further start up costs, has incurred significant expenditure in 2023-24. Grants and donations income has been lower again in 2023-24, compared to the previous couple of years but the focus has been to expand the Red Balloon provision and open further Centres to support more young learners, which will also lead to future sustainability. RBAir Education Activity and the RB-W Centre are both forecast a surplus; however this will not be enough to offset the deficit in other departments in 202324. RBET-N, having enrolled its first students in March 2024, an overall surplus in 2024-25 is expected. 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.

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. 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 students' overall 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.

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

Management will ensure staff members are 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 & safety risk assessment policies up-to-date and inspections carried out at appropriate intervals. Central monitoring of compliance at Learner Centres and RBAir.

Student safeguarding – students harmed or self-harming.

Monitoring of changes in regulation, policies and approach with government departments, regulators, commissioners and inspectorates, and adjusting Red Balloon policies, processes and provisions as required. Monitoring the status of RBAir, and managing its online provision in line with all applicable regulations. Engagement with educators on support for bullied, traumatised or highly anxious children.

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

Implementation of IT strategy that ensures compliance, ensuring hardware and software purchases can be centrally supervised. Training to ensure compliance with revised IT strategy. Improved multi-factor authentication procedures. Compliance with Government backed “Cyber Essentials” framework as of April 2023.

Cyber Security - resulting in a safeguarding risk, data breach (also see below), failure to conform to regulation

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.

Loss of IT data and/or access to

central systems – resulting in confidential data loss and/or operational disruption including online provision.

Confidential personal information is identified and encrypted. A second and distinct data line maintained for RBAir. Practices reviewed and updated in line with “Cyber Essentials” requirements.

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Structure, governance and management

Constitution

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". 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.

The Charity is registered as a charitable company limited by guarantee. The Charity is constituted under a Memorandum of Association dated 21 February 2005 and its charity registration number is 1109606.

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 are carried out at a full Trustees’ 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 trustees meeting as an observer. No person or external body other than the trustees is entitled to appoint trustees.

Organisational structure and decision making

i) The Charity operates from its premises at Willow Lodge in Milton, Cambridge. The Executive Officer oversees individuals with responsibility for the RBAir, RB-Worthing and RBET Norfolk provisions, 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 and Financial Controller. 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.

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

v) At each meeting, the Chair asks the trustees to record any potential conflict of interest.

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 11.

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.

Fundraising 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. Donorfy Customer Relationship Management system is used to ensure that its donor data is held appropriately and securely. This forms an integral part of achieving readiness for growth.

Red Balloon Educational Trust (RBET) raises some funds from the public.

1.RBET undertakes fundraising through our internal resources and we do not commission a professional fund-raiser/commercial participator for these;
2.RBET 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;

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.

3.RBET monitors fundraising activities via the board reports and via fortnightly meetings;
4.RBET received no complaints during the year about activities for the purpose of fundraising;
5.RBET 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:

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 (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.

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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 Educational Trust 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 reappointing 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 14 May 2024 and signed on their behalf by:

Caroline Herbert

Administrative details of the charity, its trustees and advisors

Charity registration number

1109606

Company registration number

05385341

Dr Carrie M H Herbert, Chair (from 21 August 2023) & President Ms Beverley A Williams, Chair (resigned 21 August 2023) Revd Prof Michael J Reiss Mr Simon P Mace (resigned 23 November 2022) Ms Jennifer R Raine (resigned 3 February 2023 and reappointed 23 August 2023) Mr Nicholas H P Munday (appointed 5 October 2022) Ms Elizabeth A Laybourn (appointed 23 August 2023) Ms Ruth Loshak (appointed 22 August 2023) Ms Janet Scotcher (appointed 30 April 2024)

Trustees and Directors

Executive Officer

Director of Education: Mr Robert Watson

Company Secretary Dr Carrie M H Herbert

Principal/Registered office

Willow Lodge 37 High Street Milton Cambridge CB24 6DF

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 2023

Independent Auditor’s Report to the

Members of Red Balloon Educational Trust

Opinion

We have audited the financial statements of Red Balloon Educational Trust (the ‘parent charitable company’) and its subsidiaries (the 'group') for the year ended 31 August 2023 which comprise the Group Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheet, the Group Cash Flow Statement and notes to the financial statements, including 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).

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 [date], 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

Independent Auditor’s Report to the Members of Red Balloon Educational Trust

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. The trustees are responsible for the other information. 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.

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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

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

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 responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors’ report included within the trustees' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the 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 requires us to report to you if, in our opinion:

adequate 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 trustees’ 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’ exemption in preparing the directors’ report and from the requirement to prepare a strategic report.

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Independent Auditor’s Report to the

Members of Red Balloon Educational Trust

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement in the Trustee’s report, the trustees (who are also the directors of the parent 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 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 group or parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

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:

We gained an understanding of the legal and regulatory framework applicable to the charitable company and how it operates and considered the risk of the group and the charitable company not complying with the applicable laws and regulations including fraud in particular those that could have a material impact on the financial statements. This included those regulations directly related to the financial statements. In relation to the group and the parent charitable company this included employment law, financial reporting and health & safety.

We reviewed systems and procedures to identify potential areas of management override risk. In particular, we carried out testing of journal entries and other adjustments for appropriateness. We reviewed accounting policies for evidence of management bias and ensured that the accounting policies were correctly applied to the financial statements.
We reviewed minutes of Trustee Board meetings, any correspondence with the Charity Commission and reviewed the procedures in place for the reporting of any incidents to the Trustee Board including serious incident reporting of these matters as necessary with the Charity Commission.
We agreed the financial statement disclosures to underlying supporting documentation, made enquiries of management and officers of the parent charitable company regarding laws and regulations applicable to the organisation and discussed whether there had been any known breaches of laws and regulations in order to consider any possible further considerations or impact upon the charity.

Independent Auditor’s Report to the Members of Red Balloon Educational Trust

Auditor responsibilities for the audit of the financial statements (continued)

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 is available on the FRC's website at:

https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-the-fi/descriptionof-the-auditor%E2%80%99s-responsibilities-for. 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.

Use of our report

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.

Suzanne Goldsmith FCA (Senior Statutory Auditor)

for and on behalf of

PRICE BAILEY LLP, Statutory Auditor Chartered Accountants Statutory Auditors Tennyson House Cambridge Business Park Cambridge CB4 0WZ

Date: 29 May 2024

We reviewed the risk management processes and procedures including a review of the Board assurance reporting.

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RED BALLOON EDUCATIONAL TRUST

(a company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2023

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

CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2023

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RED BALLOON EDUCATIONAL TRUST

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

RED BALLOON EDUCATIONAL TRUST

(a company limited by guarantee)

CHARITY BALANCE SHEET

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2023

AS AT 31 AUGUST 2023

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RED BALLOON EDUCATIONAL TRUST

(a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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RED BALLOON EDUCATIONAL TRUST

(a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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RED BALLOON EDUCATIONAL TRUST

(a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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RED BALLOON EDUCATIONAL TRUST

(a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

RED BALLOON EDUCATIONAL TRUST

(a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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RED BALLOON EDUCATIONAL TRUST

(a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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RED BALLOON EDUCATIONAL TRUST

(a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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RED BALLOON EDUCATIONAL TRUST

(a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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RED BALLOON EDUCATIONAL TRUST

(a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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RED BALLOON EDUCATIONAL TRUST

(a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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RED BALLOON EDUCATIONAL TRUST

(a company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

66 | Red Balloon Educational Trust Annual Report 2022/23

Red Balloon Educational Trust Annual Report 2022/23 | 67

RED BALLOON EDUCATIONAL TRUST