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← Real Care Ltd

2024-08-31-accounts

Charity registration number 1113970

Company registration number 05296681 (England and Wales)

REAL CARE LTD

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

REAL CARE LTD

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees A Timothy - Chair
R Brown (Appointed 18 October 2024)
T Devereux (Appointed 18 October 2024)
M Barker
D Harrop
L McNally
G Stringer
Secretary G Waugh
Senior management M Matthewson Chief operating officer
Charity number 1113970
Company number 05296681
Registered office Learning for Life
Herbert Street
Consett
County Durham
DH8 6AE
Auditor Robson Laidler Accountants Limited
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
England
NE2 1TJ

REAL CARE LTD

CONTENTS

Page
Trustees' report 1 - 4
Independent auditor's report 5 - 7
Statement of financial activities 8 - 9
Balance sheet 10
Statement of cash flows 11
Notes to the financial statements 12 - 21

REAL CARE LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2024

The trustees present their annual report and financial statements for the year ended 31 August 2024.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's [governing document], the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

Real Care Ltd (operating as Learning for Life) is a North East provider of services for children Post-16 and adults who have a diverse range of disabilities based across two sites in Consett, County Durham and The John Marley Centre, Newcastle upon Tyne.

The charitable company's objects are to advance and support the Post-16 education of pupils from special schools within the North East region, their families and wider communities by:

The trustees are satisfied that in accordance with the Charity Commission guidelines, Real Care Ltd meet the public benefit requirements. The trustees have regard to this guidance when exercising any powers or duties to which the guidance is relevant.

Our ethos is to provide a personalised approach to learning which encourages: building confidence, enabling communication, fulfilling aspirations and promoting individual choice. Learning for Life aims to be a leading local provider of specialist education and social care, where our learners are given the most enriching and rewarding experience possible.

Achievements and performance

Achievements in Education

2024 has been a year of excellent progress for Real Care Ltd, operating as Learning for Life. Our educational services delivered impressive outcomes, with learners achieving results that surpassed expectations. We also had the privilege of hosting a successful Ofsted monitoring visit, which commended our commitment to high-quality post16 education. We also had a successful ESFA Audit.

Social Care Highlights

Our collaboration with Durham County Council and Newcastle City Council was further strengthened through highly successful visits that showcased the quality of our Social Care provision. These recognitions underline the dedication and professionalism of our teams in creating a nurturing and supportive environment for individuals with difficulties and disabilities.

Expansion at The John Marley Centre

A major milestone in 2024 was the continued development of our provision at The John Marley Centre in Newcastle. This expansion consolidated our ability to seamlessly provide both education and social care under one roof, mirroring the success of our Consett-based operations. The John Marley Centre now serves as a hub for innovative programs and a beacon of excellence for learners across the Newcastle area.

REAL CARE LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024

Financial review

Total income for the financial year was £1,441,992 (period ended 31.08.2023: £1,297,427) and total expenditure was £1,317,267 (2023: £1,149,437). The accounts therefore show a surplus for the year amounting to £124,725 (2023: £147,990). Unrestricted reserves at 31 August 2024 were £892,638 (2023: £805,869) and restricted reserves were £41,116 (2023: £3,160). The unrestricted reserves will enable the charity to maintain services in times ahead. The restricted reserves are ring fenced from operational funds and can only be used for the intention that the grant was made.

The Charity has no external debt financing following the repayment of a Bounce back loan on 30th November 2023 (as at 31 August 2023: £28,333).

Unlike many Charities which are primarily dependent upon fundraising to operate, most of Real Care Ltds income is generated from learner placements. Any grant funding which can positively benefit and impact upon our learners, or for the benefit of the Charity, will be applied for.

Going concern

Our Trustees diligently review the Charitable Company's reserves requirement, aligning with guidelines from the Charity Commission for England and Wales. In this process, the Trustees considered expenditure commitments, income flows, and the reliability and timing of funds. Factors such as future needs, opportunities, contingencies, and risks were thoroughly analysed and assessed.

On an annual basis, the Trustees establish the working capital requirement for the Charitable Company, ensuring operational alignment with the reserves policy and guidelines. As a charitable company limited by guarantee, the Charitable Company is committed to accumulating reserves. The Charity seeks to maximise revenue streams from both its operational sites.

The trustees aim to maintain free reserves in unrestricted funds at a level which is no lower than three months of total charitable expenditure. It is estimated that this expenditure currently equates to £323,223 (2023: £287,359). At this level of unrestricted reserves, the charity could maintain all operations for more than three months even if no income was being generated. Current free reserves, after adjusting for fixed assets and restricted funds, amount to £567,690 (2023: £440,025).

The charity enjoys good liquidity and has no issues meeting its liabilities when they fall due. The trustees are confident that the charity will continue to operate for at least the next twelve months.

Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Plans for future periods

In 2025 and beyond, we remain committed to excellence in education and care, ensuring that every learner receives the personalised attention and resources they deserve. We aim to expand partnerships, improve service delivery, and enhance governance to achieve sustainable growth.

Our strategic objectives for the next three years focus on creating confidence, competence, and a plan for the future.

REAL CARE LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024

The Board aims to:

  1. Continuously Improve Provision Quality:

  2. Develop a defined teaching and learning approach aligned with core values.

  3. Implement a clear provision improvement plan, fostering a culture of continuous improvement.

  4. Ensure Financial Viability and Sustainability:

  5. Maximise resources for growth through efficient business arrangements.

  6. Balance budgets while enhancing the quality of provision and exploring additional funding streams.

  7. Build an Effective Provision Improvement Team:

  8. Attract and retain talent, supporting career development.

  9. Implement a talent management strategy and develop a model of organisational improvement.

  10. Ensure Effective Leadership and Governance:

  11. Actively recruit skilled Trustees to enhance governance.

  12. Embed risk management, strategic focus, and provision improvement in governance structures

Structure, governance and management

Real Care Ltd is a company limited by guarantee, governed by its Memorandum and Articles of Association. The charitable company was incorporated on 25th November 2004 with registration number 05296681. It has been registered as a charity with the Charity Commission, number 1113970 since 2nd May 2006. There are currently seven members, each of whom agree to contribute £1 in the event of the charitable company winding up.

The Memorandum and Articles of Association allows for a Council of between two and ten trustees to administer the company.

The Directors of the company are also the Trustees for the purpose of Charity Law and are known collectively as the Board of Directors. The Board of Directors meet on a regular basis and are responsible for the strategic direction and policy of the charity.

All members of the Board of Directors give their time voluntarily and receive no benefits from the Charity.

Risk management

The trustees have assessed the major risks to which the charity is exposed, in particular those relating to the operation’s finances, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

Decision making arrangements

A line management system is in place with day to day responsibility for the management of the organisation resting with the Chief Operating Officer (Principal and Head of Services). The Chief Operating Officer is responsible for ensuring that the charity delivers the services specified and that key performance indicators are met. Day to day operational management is headed by individual team members using the reporting structures and line management to finally report to the Chief Operating Officer and trustees.

The charity may by ordinary resolution appoint a person who is willing to act to be a director. All new directors receive a welcome pack, which contains key policies, strategic plans, code of conduct etc. They also receive induction time with the Principal and Head of Services, and opportunities to visit services and activities as well as access to any relevant training.

Arrangements for setting pay and remuneration

Pay and remuneration is reviewed annually, usually at the same time as minimum wage becomes effective. The Senior Management Team prepare a schedule of recommendations for the Board to review and instruct upon. This will be agreed and recorded at the Board Meeting before any pay rates are communicated or changed.

REAL CARE LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

A Timothy - Chair R Brown (Appointed 18 October 2024) T Devereux (Appointed 18 October 2024) M Barker D Harrop L McNally G Stringer V Armstrong (Resigned 14 November 2023) C Rogers (Resigned 5 November 2024)

Statement of trustees' responsibilities

The trustees, who are also the directors of Real Care Ltd for the purpose 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).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

In accordance with the company's articles, a resolution proposing that Robson Laidler Accountants Limited be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

A Timothy - Chair

Trustee

19 February 2025

REAL CARE LTD

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF REAL CARE LTD

Opinion

We have audited the financial statements of Real Care Ltd (the ‘charity’) for the year ended 31 August 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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 charity’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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

REAL CARE LTD

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF REAL CARE LTD

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' 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:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The risk of material misstatement due to error or fraud has been assessed in conjunction with how internal controls may mitigate any such risk. These controls are reviewed as part of the audit by performing systems walkthroughs to ensure they are operating effectively. Analytical review and substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team;

The risk of management override of controls was also considered an area of potential misstatement due to fraud. Audit procedures performed included testing of manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business.

REAL CARE LTD

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF REAL CARE LTD

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable 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.

Nicholas Cunningham MSc BSc ACCA (Senior Statutory Auditor) for and on behalf of Robson Laidler Accountants Limited

4 March 2025

Statutory Auditor

Fernwood House Fernwood Road Jesmond Newcastle upon Tyne Tyne and Wear England NE2 1TJ

REAL CARE LTD

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2024

Current financial year
Unrestricted
Restricted
funds
funds
2024
2024
Notes
£
£
Income from:
Donations and legacies
3
36,087
38,775
Charitable activities
4
1,338,322
-
Other trading activities
25,069
-
Investments
3,739
-
Total income
1,403,217
38,775
Expenditure on:
Charitable activities
5
1,299,720
17,547
Total expenditure
1,299,720
17,547
Net income
103,497
21,228
Transfers between funds
(16,728)
16,728
Net movement in funds
7
86,769
37,956
Reconciliation of funds:
Fund balances at 1 September 2023
805,869
3,160
Fund balances at 31 August 2024
892,638
41,116		 Total
2024
£
74,862
1,338,322
25,069
3,739
1,441,992
1,317,267
1,317,267
124,725
-
124,725
809,029
933,754		 Total
2023
£
82,493
1,200,541
14,027
366
1,297,427
1,149,437
1,149,437
147,990
-
147,990
661,039
809,029

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

REAL CARE LTD

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2024

Prior financial year
Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income from:
Donations and legacies
3
34,232
48,261
Charitable activities
4
1,200,541
-
Other trading activities
14,027
-
Investments
366
-
Total income
1,249,166
48,261
Expenditure on:
Charitable activities
5
1,124,380
25,057
Total expenditure
1,124,380
25,057
Net income
124,786
23,204
Transfers between funds
20,544
(20,544)
Net movement in funds
7
145,330
2,660
Reconciliation of funds:
Fund balances at 1 September 2022
660,539
500
Fund balances at 31 August 2023
805,869
3,160		 Total
2023
£
82,493
1,200,541
14,027
366
1,297,427
1,149,437
1,149,437
147,990
-
147,990
661,039
809,029

REAL CARE LTD

BALANCE SHEET

AS AT 31 AUGUST 2024

2024
Notes
£
Fixed assets
Tangible assets
11
Current assets
Debtors
12
146,441
Cash at bank and in hand
637,317
783,758
Creditors: amounts falling due within
one year
13
(174,952)
Net current assets
Total assets less current liabilities
The funds of the charity
Restricted income funds
15
Unrestricted funds
16		 2023
£
£
324,948
79,897
509,655
589,552
(146,367)
608,806
933,754
41,116
892,638
933,754		 £
365,844
443,185
809,029
3,160
805,869
809,029

The financial statements were approved by the trustees on 19 February 2025

A Timothy - Chair Trustee

Company registration number 05296681 (England and Wales)

REAL CARE LTD

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2024

Notes
Cash flows from operating activities
Cash generated from operations
19
Investing activities
Investment income received
Net cash generated from investing
activities
Financing activities
Repayment of bank loans
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2024
£
3,739
(28,333)		 £
152,256
3,739
(28,333)
127,662
509,655
637,317		 2023
£
366
(10,000)		 £
95,795
366
(10,000)
86,161
423,494
509,655

REAL CARE LTD

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

1 Accounting policies

Charity information

Real Care Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is Learning for Life, Herbert Street, Consett, County Durham, DH8 6AE.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic 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 with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions 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 charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

REAL CARE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements 20% on cost and lease term
Fixtures and fittings 20% reducing balance
Computers 15% reducing balance
Motor vehicles 25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

REAL CARE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Income from donations and legacies

Unrestricted
Restricted
funds
funds
2024
2024
£
£
Donations and gifts
9,320
-
Grants
26,767
38,775
36,087
38,775
Grants
Lloyds Bank
24,375
-
William Trust
-
-
Sensory Sound and
Vision
-
-
Make Your Mark Fund
-
-
Volunteer Support
-
-
Outdoor Farm
-
-
Jubilee Fund
-
-
Other
2,392
2,301
Department for Education
-
21,474
Charities Trust
-
15,000
26,767
38,775		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
9,320
10,482
14,000
65,542
23,750
34,261
74,862
34,232
48,261
24,375
23,750
-
-
-
10,000
-
-
9,986
-
-
4,000
-
-
3,116
-
-
2,965
-
-
2,733
4,693
-
1,461
21,474
-
-
15,000
-
-
65,542
23,750
34,261		 Total
2023
£
24,482
58,011
82,493
23,750
10,000
9,986
4,000
3,116
2,965
2,733
1,461
-
-
58,011

REAL CARE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2024

4 Income from charitable activities

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Charitable activities
Education 462,604 643,280
Social Care 875,718 557,261
1,338,322 1,200,541

5 Expenditure on charitable activities

Charitable Charitable
activities activities
2024 2023
£ £
Direct costs
Staff costs 890,404 856,272
Depreciation and impairment 29,273 23,278
Rent and rates 35,042 43,868
Light and heat 12,092 7,959
Training 9,569 4,284
Telephone 4,437 3,959
Postage and stationery 6,888 8,542
Transport 7,056 6,473
Repairs and maintenance 41,846 34,966
Student activities 144,668 48,358
Subscriptions 7,824 4,948
Insurance 7,205 11,749
Sundry expenses 16,185 5,267
Bank interest and charges 1,024 1,439
1,213,513 1,061,362
Share of support and governance costs (see note 6)
Support 96,549 83,575
Governance 7,205 4,500
1,317,267 1,149,437
Analysis by fund
Unrestricted funds 1,299,720 1,124,380
Restricted funds 17,547 25,057
1,317,267 1,149,437

REAL CARE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024

6 Support costs allocated to activities

6
Support costs allocated to activities
Staff costs
Depreciation
Rent and rates
Light and heat
Professional fees
Governance costs
Analysed between:
Charitable activities
7
Net movement in funds
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements
Depreciation of owned tangible fixed assets		 2024
£
55,278
11,623
17,276
5,955
6,417
7,205
103,754
103,754
2024
£
7,205
40,896		 2023
£
53,027
7,759
14,367
2,653
5,769
4,500
88,075
88,075
2023
£
4,500
31,037

8 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

9 Employees

The average monthly number of employees during the year was:

Employees
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2024
Number
53
2024
£
877,859
55,095
12,728
945,682		 2023
Number
51
2023
£
857,973
40,412
10,914
909,299

REAL CARE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024

9 Employees

(Continued)

The number of employees whose annual remuneration was more than £60,000
is as follows:
£60,001 to £70,000
Remuneration of key management personnel
The remuneration of key management personnel was as follows:
Aggregate compensation		 2024
Number
1
2024
£
235,010		 2023
Number
-
2023
£
212,107

10 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

11 Tangible fixed assets

Leasehold
improvements
Fixtures and
fittings
Computers
£
£
£
Cost
At 1 September 2023
410,720
88,172
38,411
At 31 August 2024
410,720
88,172
38,411
Depreciation and impairment
At 1 September 2023
97,190
65,668
21,814
Depreciation charged in the year
22,539
6,734
6,668
At 31 August 2024
119,729
72,402
28,482
Carrying amount
At 31 August 2024
290,991
15,770
9,929
At 31 August 2023
313,530
22,504
16,597		 Motor
vehicles
£
19,820
19,820
6,607
4,955
11,562
8,258
13,213		 Total
£
557,123
557,123
191,279
40,896
232,175
324,948
365,844

REAL CARE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024

12 Debtors

12
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
13
Creditors: amounts falling due within one year
Notes
Bank loans
Other taxation and social security
Trade creditors
Other creditors
14
Retirement benefit schemes
Defined contribution schemes
Charge to profit or loss in respect of defined contribution schemes		 2024
£
144,897
1,544
146,441
2024
£
-
13,838
29,393
131,721
174,952
2024
£
12,728		 2023
£
58,429
21,468
79,897
2023
£
28,333
11,331
22,418
84,285
146,367
2023
£
10,914

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

15 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1 Incoming Resources Transfers At 31 August Transfers At 31 August
September resources expended 2024
2023
£ £ £ £ £
Social Care Fund - 16,100 (13,247) 16,037 18,890
Education Fund 3,160 1,200 (4,300) 691 751
ESFA - 21,475 - - 21,475
3,160 38,775 (17,547) 16,728 41,116

REAL CARE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024

15
Restricted funds
Previous year:
At 1
September
2022
Incoming
resources
Resources
expended
£
£
£
Social Care Fund
500
44,261
(24,217)
Education Fund
-
4,000
(840)
500
48,261
25,057		 (Continued)
Transfers At 31 August
2023
£
£
(20,544)
-
-
3,160
(20,544)
3,160

Use of restricted funds

Social Care Fund - this includes £2,890 for the purchase of virtual reality equipment (Sensory Sound and Vision) and £15,000 funding for a Transition Co-Ordinator.

Education fund - this relates to small amounts of unspent income carried forward into 2024/25

ESFA - Department for Education capital funding for use on the building.

16 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1
September
2023
Incoming
resources
Resources
expended
£
£
£
General funds
805,869
1,403,217
(1,299,720)
Previous year:
At 1
September
2022
Incoming
resources
Resources
expended
£
£
£
General funds
660,539
1,249,166
(1,124,380)		 Transfers At 31 August
2024
£
£
(16,728)
892,638
Transfers At 31 August
2023
£
£
20,544
805,869

REAL CARE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2024

17 Analysis of net assets between funds

Unrestricted
Restricted
funds
funds
2024
2024
£
£
At 31 August 2024:
Tangible assets
324,948
-
Current assets/(liabilities)
567,690
41,116
892,638
41,116
Unrestricted
Restricted
funds
funds
2023
2023
£
£
At 31 August 2023:
Tangible assets
365,844
-
Current assets/(liabilities)
440,025
3,160
805,869
3,160
18
Related party transactions		 Total
2024
£
324,948
608,806
933,754
Total
2023
£
365,844
443,185
809,029

There were no disclosable related party transactions during the year (2023 - none).

19
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase) in debtors
Increase/(decrease) in creditors
Cash generated from operations		 2024
£
124,725
(3,739)
40,896
(66,544)
56,918
152,256		 2023
£
147,990
(366)
31,037
(29,539)
(53,327)
95,795

REAL CARE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024

20 Analysis of changes in net funds
At 1 September Cash flows At 31 August
2023 2024
£ £ £
Cash at bank and in hand 509,655 127,662 637,317
Loans falling due within one year (28,333) 28,333 -
481,322 155,995 637,317