Charity registration number 1112429 Company registration number 05485413 (England and Wales TURNING THE RED LIGHTS GREEN ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 TURNING THE RED LIGHTS GREEN LEGAL AND ADMINISTRATIVE INFORMATION Trustees thony lfjrk Hobson &Jllman &an Constsntine Roger Crabtree Peter Hains Philip Lane Jane Miller Fred Peeling Ruth Rogers Aelein Messinger (Appointed 15 May 2025) Secretary Elizabeth Taylor Chief Executive OffKer Elizabeth Taylor Charity number 1112429 Company number 05485413 Registered offKe Harvey's Bam Park End Svrdffftam &Jlbe¢k Cambridge Cambridgeshire United lfjngdom CB25 ONA Auditor Azets Audit Seryi¢es Westpoint Lynch Wood Peterborough Cambridgeshlre United Kingdom PE2 6FZ Bankers Uoyds Bank plc 48 High Street Newmarket Suffolk United lfjngdom CB8 8LF TURNING THE RED LIGHTS GREEN CONTENTS Page TNstees' report Independent auditorfs report Statsment of financlal aclivities Balance sheet Statement of cash IIow3 Notes to the financial statements 10-22 TURNING THE RED LIGHTS GREEN TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2025 The trustees present their annual report and finan(aal statements for the year ended 31 March 2025. The financial statements have been prepared in accordance with the accounting poli(aes set out in note 1 to tt)e financial statements and compty with the charity's goveming document, the Compantes Act 2006 and "Accounting and Reporting by Charities: Ststement of Recommended Practice applicable to ¢harities prepafing their accounts in accordance V￿th the FinanLial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). {effeclTrie 1 January 2019). Objectives and activities The charity's objects are to increase opporbjnities in ethcation, training, work and leisure for people V￿th disabilities and special needs and their carers in South and East Canl)ridgeshire. The trustees have paid due regard to guidance issued by the Charity Commission in deci(Ing ￿ffiat acliviiies the Charity should undertake. Achieven￿ts and perfommnce These are covered in the charity's 2025 annual report vthich is available at htfj)sJlred2green.orgl. Financial review The trustees seek to maintain a level of reserves whith ensure our fjnancial resilience and sustainability. This should take into account the obligations Ihe charity has to its clients, staff, funders and other stskeholders, recognising the risks identified in our risk register. Primarily this should ensure that Red2Green is sufficiently financially robust to carry out its core activities even during a period of unforeseen difficulty. The trustees have adopted a ￿-caSe, scenario in determining the target level of rese￿eS by seeking to retain sufficient funds in order lo manage the closure of the charty in an orderly manner equitable to all parties involved. Clearly, this would be a matter of last resort and, hopefully. such reseNes could also be employed in a manner to avoid such closure by seeking altemalive in(x)me streams or other mitigating actions to sustain tharity through a period of great dIffi￿lty. Regular financial forecasts are made throughout the year to compare with the approved budget and these are reviewed as part of our board meetings. Should such forecasts indicate that the reserves policy is under threat, the trustees V•ryll look to deterniine if this is likely to be a tempwary or a permanent siiualion and Ihen take appropriate action to nutigate the situation. The actual level of rese￿e5 may also exceed the reserves policy figure. This will provide the trustees with, for example. A buffer to cover short term cash flow movemerts. as are inherent in any organisation ￿lch invoices others for services provided. A fund to explore a new venture or investment designed to provide a long term benefit to the organisation or [15 Stakeholdet5. Funds to provide for the replacement of the charitys fixed assets or expansion of suth. To covLY a temporary shortfall in the level of grants obtained vthich, by their nature, are uncertain and variable. The reserves policy is reviewed annualty as part of the approval of the financial accounts and any recalculation of the amounts is carried out as part of the process. The reserves policy for 2025126 is £182,876 and a designaled fvnd has been created for this. A fvrther designated fund of £60,000 has been created for building and farAlity improvements. Available general reserves at the year end amount to £68,547 and restricted funds are £19,557. The trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining reser4es at current levels. Combined with an annual review of the controls over key fjnancial systems ￿ThI1 provide sufficient resources in the event of adverse conditions. The Irustees have also examined other operational and business risks faced by the tharity and confirm that they have established systems to mi1igate the significant risks. TURNING THE RED LIGHTS GREEN TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 structyre• governance and management The Charity is a company limited by guarantee ￿lch is govemed by its memorandum and artides of association. The trustees. who are also the directors for the purpose of company law, and who served thring the year and up to the date of signature of the financial ststements were: Anthony Kirk Emmanuel Akoju Hobson Bullman Sian Constantine Roger Crabtree Peter Hains Philip Lane Caragh M¢Mu Jane Miller Fred Peeling Ruth Rogers Aelein Messinger (Resigned 28 March 2025) (Resigned 28 March 2025} (Appointed 15 May 2025) Recwitment and Appoinlment of Trustees Red2Green re(￿lts trustees through open and values4ed processes, ensuring our board reflects a range of skills, experiences and perspectives aligned ￿ryth our mission. We welcome expressions of interest at any time from individuals share our comnwiment to indusion, independence and opportunity for athtts 16+ learning disabilities and autism. Vlthen seeking new trustees. we idenb'fy the expertise or lived experience needed to strengthen our board and may advertise roles, use trustee recruitment net*vorks, or approach individuals with relevant backgrounds. Prospeclive tntstees receive a candidate pack and are invited to meet Vlith the Chief Executive andlor trustees before being formally proposed for appointment. AJI new trustees recetve a comprehensive induction pack. indudrng govemance documents, role expedations and key organisational information. Trustees are expeded to engage V•ith our wxk belween board meetings through visits, subgroups or links V*ith speafic projects. We encourage ongoing learning and support trustees to contribute meaningfully to Red2Green's goveman¢e. development and long-teTm impa¢t. None of the trustees has any benefjcial interest in the company. All of the trustees are member5 of the company and guarantee to contribute £1 in the event of a winding up. Organisalional Struclure The Board of Trustees meets six times a year and provides oversight of Red2Green's strategic direction, performance and Complian￿. Trustees also contribute beiween meetings throu￿ visits, individual links with services, and subgroup participation. Two subgroups support the work of the Board.. Fit for the Future, made up of trustees, the Chief EXec￿tiVe and the Finance Manager. focuses on sustsinability, financial oversight and risk. The DeVelopn￿t Group, ththich includes trustees, the Chief Executive, service managers, the Finan Manager, and the Marketing and Partnerships Lead, oversees the strategic plan and organisational action plan. TURNING THE RED LIGHTS GREEN TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Day-to-day management is led by the Chief Executive, supported by Head Office. which indudes the Finance Manager, Marketing and Partnerships Lead, and administrative staff. Head Office provides finance. HR. marketing, premises and operational support across the organisation. Frontline delivery is structured around ith) core programmes: Aspirations - Supporting and promoting adults 16+ with aulism towards education, employment and life skills. This service is led by the Aspirations Manager, ￿TIh a team of bjtors, teaching assistants and support workers. Oplions - Supporling and promoting adults 16+ V*ith learning thsabilities towards life fulfilment through gaining and maintaining independence and life skills. This servtce is led by the Options Manager, supported by supervisors and a team of support v￿rkers. Services are delivered auoss sites in Swafftiam ￿lbeCk and Bottisham. with a strong fo¢us on personed in the relevant sedions of this report. Other inf0m￿tic The olher infomiation comprises the informalion induded in the annual report other than the financial statements and our auditor's report thereon. The ttustees are responsible for the other information contsined v4ithin the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance wndusion thereon. Our responsibilty is to read the other information and, in doing so, Consider vthether the other information is materially inconsistent vnth the fjnancial statements or our knowledge obtained in the course of the auitit, or othetwise appears to be materially misstated. If we ident'fy suth material inconsistenoes or apparent matefial misstatements, we are required to determtne v*hether this gives rise to a material misststement in the financial statements themselves. If, based on the work we have performed, we condude Ihat there is a material nwsstatement of this other informalion, we are required to report that fa¢t. We have nothing to report in this regard. Matters on which we are required to report by exception We have nothing to report in respect of the follo￿7ng matters in relalion to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: the information given in the financial statements is inconsistent in any malerial respect V4ith the trustees, report,. or sufficient a¢¢ounling records have not been kept: or the financial ststements are not in agreement ￿ry1h the accounting records" or we have not received all the information and explanats'ons we require for our audit. TURNING THE RED LIGHTS GREEN INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF TURNING THE RED LIGHTS GREEN Responsibililies of trustees As explained more fully in the statement of trustees. responsibililies, the trustees, who are also the directors of the charity for the purpose of Company law. are responsible for the preparation of the fjnancial statements and for being salisfied that they give a true and fair view. and for such intemal control as the trustees delermine is necessary to enable the preparation of financial statements that are free from material misstatement, thether due to fraud or error. In preparing Ihe financial statements, the trustees are responsible for assessing the charity's ability to ¢ontinue as a going con￿rn. thsdosing. as applicable. matters related to going concern and using the going concem basis of accounting unless the trustees either intend to liquidate the charitable ¢ornpany or to cease operalions, or have no realistic altemalive but to do so. Auditorfs reSp￿sIbIlitIeS for the audit of the financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in a¢cordanee with the Act and relevant regulalions made or having effect thereunder. Our obieclives are to obtsin reasonable assurance about whether the financial statements as a vthole are free from material misstatement, ￿ether due to fraud or e￿or, and to issue an audilor's report that indudes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted In accordance with ISAS (UIQ v4ill alvrays detect a material misststement ￿en 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 inlluen the econonNc decisions of users taken on the basis of these fffianaal statements. A further description of our responsibilities is available on the Financial Reporfing Council's website at: hlty)s:11 wwrfrf.frc.org.uklauditorsresponsibilities. This description forms part of our auditorfs report. Extent to vknich the audit was considered capable of detecting irregularities, including fraud Irregularities. including fraud, are instances of non-compliance with lav45 and regulations. We design procedures in line with our responsibitities, outlined above and on the Financial Reporling Council's website, lo detect material misstatements in respect of irregularities, including fraud. We obtain and update our understanding of the entity, its activities, its control environment, and likety future developments, including in relath'on to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understsnding. we identify and assess the risks of material rnisstatement of the financial ststements. whether due to fraud or erior, design and perform audit procedures responsive to those risks, and obtain autht evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by Ihe entity that were contrary to applicable laws and regula1ions, induding fraud. In response to the risk of I￿egUlaritieS and non-compliance vrfth and regjlations, including fraud, we designed procedures ￿lch induded: Enquiry of management and those charged with govemance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; Reviewing minutes of meetings of those charged wilh governance" Assessing the extent of compliance Vlith the laws and regulations considered to have a direct material effect on the financial statements or the operalions of the entity through enwiry and inspedion. Reviewing financial statement disdosures and testing to supporting documentab'on to assess compliance with applicable laws and regulations; Performing audit work over the risk of management bias and override of controls, induding testing of joumal entries and other adjustments foT appropriateness, evaluating the business rationale of signifficant transactions outside the normal course of business and revithing accounting estimates for indicators of potential bias. Because of the inherent limitations of an au(tht, there is a risk that we will not detect all irre￿larItIes, induding those leading to a material misstatement in the financial ststements or non-CA)nwliance V•ith regulation. This risk increases the more that compliance with a law or regulalion is removed from the events and transacts'ons rellected in the financial statements, as we will be less likely to become aware of instsn¢es of non-compliance. The risk of not deteding a material missLgtement resulling from fraud is higher than for one resulling from error. as fraud may involve collusion. forgery. intenlional omissions, misrepresentations, or the override of internal control. TURNING THE RED LIGHTS GREEN INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF TURNING THE RED LIGHTS GREEN Use of our report This report is made solely to the Charity's trustees. as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Ckjr audit work has been undertaken so that we might stste lo the charity's trustees those matters we are required to state to them in an auditorfs 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 tharity and the charity's trustees as a body, for our audit vrfork, for this report, or for the opinions we have formed. Tracey Richardson Bsc IHons) FCA (Senior Statutory Auditor) for and on behalf of Azets Audit Services Chartered Accountants ststutory Audbtor Westpoint Lynch Wood Peterborough Cambridgeshire United Kingdom PE2 6FZ ets Audit Services is eligible for appointment as auditor of the charity by virtue of its eligbilty for appointment as auditor of a company under section 1212 of the Companies Act 2006. ¢x+ a) cry o) 00 000 00 000 TURNING THE RED LIGHTS GREEN BALANCE SHEET AS AT31 MARCH 2025 2025 2024 Notes Fixed assets Tangible assets 11 4.498 Current assets Stocks Debtors Cash at bank and in hand 12 13 500 46,552 337,198 500 63,269 168,874 384.250 232.643 Creditors: aTr￿unts falling due within one year 14 (53,270) (20,730) Net ￿rrent assets 330,980 211.913 Total assets less current liabilities 330,980 216,411 Income funds Restricted ftjnds Unrestricted funds - designated General unrestricted funds 16 17 19,557 242,876 68.547 216,411 330,980 216,411 The company is entitled to the exemption from the audit requirement contained in sedion 477 of the Companies Act 2006, for the year ended 31 March 2025, alihough an autht has been Ca￿led out under section 144 of the Charities Act2011. The directors acknowledge their responsibilities for complying ￿ryth the requtrements of the Companies Act 2006 Ih respect to accounting records and the preparation of financial ststements. The members have not required the company to obtain an audit of its financial ststements under the requirements of the Companies Act 2006, for the year in question in accordance with seclion 476. These financial statements have been prepared in accordance ￿ryth the provisions applicable to companies subject to the small companies regime. The financial ststements were approved by the Twstees on Anthony Kirk TnAStee Company registrati(￿ number 05485413 TURNING THE RED LIGHTS GREEN STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 2026 2024 Cash flows from operating activities Cash generated froml(absorbed by) operations 21 168.324 (83,475) Net rAsh used in inveslwig xlivities Net Cash used in financing activities increasel(decrease) in cash and cash equivalents 168.324 (83,475) Cash and cash equivalents at beginning of year 168.874 252,349 Cash and cash equivalents at end of year 337,198 168,874 TURNING THE RED LIGHTS GREEN NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies Charity infornwtion Tuming The Red Lights Green is a private company limited by guarantee incorporated in England and Wales. The registered office is Harvevs Barn, Park End, Swaflham Bulbeck, Cambridge. Cambridgeshire. C825 ONA, United KFngdom. 1.1 Accounting convention The financial sLgtements have been prepared in accordance w?th the charitys goveming document, the Companies Act 2006, FRS 102 °The Financial Reporting Standard applicable in the UK and Repubhc of Ireland. {°FRS 102? and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance ￿1th the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Publtc Benefit Entity as defjned by FRS 102. The finanaal statements are prepared in sterling, V*hich is the functional cuffency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial ststements have been prepared under the historical cost ¢onvenli<)n. The principal accounting policies adopted are set out below. 12 Going concem At the time of approving the financial sL*ments. the trustees have a reasonable expectstion Ihat Ihe charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concem basis of accounting in preparing the fjnancial ststernents. 1.3 Chalitable funds Unrestrided funds are available for use at the discretion of the trustees in furtherance of their charitable objedives. Restricted ￿ndS are subpct to spe(xfic conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial ststements. Endowment funds are subject to specific conditions by donof5 thal Ihe caprtal must be maintained by the Gharity. 1A Income Income is recognised vknen the charity is legally entitled to it after any performance Conditi￿S have been met. the amounts can be measured reliably. and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the ¢harty has been notified of the donation. unless performance conditions require defe￿al of the amount. Income tsx recoverable in relation to donalions re￿iVed under Gift Nid or deeds of covenant is recognised at the time of the donalion. Legacies are recognised on receipt or otherv¥ryse if the charity has been notified of an impending distribution, the amount is knovffl, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. Income is only deferred vthen the chatity has to fulfil conditions before becotting entitled to it or vthere the donor has speciffied that the income is to be expended in a future period. 10- TURNING THE RED LIGHTS GREEN NOTES TO THE HNANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies (Continuedl 1.5 Expendiiure Expendiiure is recognised once there is a legal or conslructive obligation to transfer economic beneffit to a third party, it is probable that a transfer of economic benefjts will be required in settlement, and the amount of the obligalion can be measured reliably. Expenditure is dassified by acbwty. The costs of each aclivity are made up of the totsl of direct costs and shared costs. induding support costs invofved in undertaking each acttvity. Direct ¢osts attributable to a single activty are allocated directly to that activty. Shared costs vthtch contribute to more than one activty and support costs which are not altrlbutable to a single activity are apportioned belween those activilies on a basis consistent with the use of resources. 1.6 Tangible fixed assets Tangible fixed assets are initially measured al cost and subsequently measured at cost or valualion. nel of depre(?ation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over Iheir useful lives on the following bases: Garden Buildings Garden tools and office equipment Fixtures and ffttings Motor vehides 1 Ooh Straight line basis 100 % Straight line basis 33.330kn Straight ITne basis 25% Straight line basis The gain or loss arising on Ihe disposal of an asset is determined as the difference belween the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities. Expenditure on office equipment and garden tools is written off in the year in vthich it is incuffed. The trustees are of the opinion that such expenth'ture has no economic value. and that, in view of this and the nature of the organisation, such costs should not be capitalised. The charity only capitalises assets cosling in excess of £1,000. Typically assets under this value have an economic benefjt to the tharty of less than one year and are considered revenue in nature. 1.7 Impaimt of r￿ed assets At ea¢h reporting end date. the chaiity reviews the ￿nYIng amounts of its tangible assets to deternNne vthether there is any indication that those assets have suffered an impairment loss. If any such indtcation exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 1 A Stocks Stocks are staled al the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, vthere applicable. dired labour costs and those overheads that have been in￿￿ed in ￿Inging the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost. Net realisable value is the estimated selling price less all estimated costs of completion and costs to be inCu￿ed in marketing, selling and distribulion. 1.9 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call Viith banks, other short-tem liquid investments with original malurities of three months or less, and bank overdrafts. Bank overdrafts are shovm ithin bOrro￿lngS in cuThenl liabililies. 11 TURNING THE RED LIGHTS GREEN NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies (Continued) 1.10 Financial instNments The charity has elected to apply the provisions of Seclion 11 '8asic Financial Instruments, and Section 12 'other Financial Instruments Issues. of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charitys balance sheet when the charity becomes paty to the ¢ontraclual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settte on a net basis or to realise the asset and setue the liabilty simultaneousty- Basic financial assets Basi¢ financial assets, vthich indude debtors and cash and bank balances. are initially rneasured at transaction price including transaction costs and are subsequenty carried at amortised cost using the effective interest method unless the arrnngement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Basic financial liatslilies Basic fjnancial liabilities, including creditots and bank loan5 are initially recognised at transaclion pri￿ unless the arrangement constitutes a financing transaction, b*here the debt instrument is measured at the present value of the fulure payments discounted at a market rate of interest. Financial lia￿'1111eS dassified as payable ithin one year are not amortised. Debt instruments are subsequenty carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the orthnary course of operations from supplier5. Amounts payable awe dassified as (￿rrent liab4ilies if payment 15 Ikje within one year or less. If not. they are presented as nOn-￿Trent liabilities. Trade creditors are recognised initially at transaction Pri￿ and subsequently measured at aniortÉsed cost using the effective interest method. Derecognition of financial liathlities Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or cancelled. 1.11 Employee benefts The cost of any unused holiday entitlement is re¢ognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the charty is demonstrabty committed lo terminate the employment of an employee or to provide temynalion benefits. 1.12 Retirement beneffts Payments to defjned ¢ontribution retirement benefft schemes afe charged as an expense as they fall due. 12- TURNING THE RED LIGHTS GREEN NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Crilical accounling estimates and judgements In the application of the chaiivs accounting poKcies. the trustees are required to make judgements. estimates and assumptions about the Ca￿yIng amount of assets and liabililies that are nol readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors thal are considered to be relevant. Adual resutts may differ from these estimates. The estimates and underly¥ig assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the pefiod in vthich the estimate is revised where the revision affects only that period. or in the period of the revision and future periods vthere the revision affects both Current and future periods. 13- oononoo ¢0 OONOVOO In¢0 In￿￿or1D0(0 C•4 l&> * a• Thi i off>On COOOOV ¢ O *oooa) 000 0(4 ￿00 4Y)Ino 00 £JoUE(J<20 (DUOWWWWI- TURNING THE RED LIGHTS GREEN NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Charitable activities 2025 2024 Services provided under contract Other income 908,420 7,610 782,323 5,914 916,030 788,237 Inveslment inc