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RED BALLOON - NORWICH (A COMPANY LIMITED BY GUARANTEE) REPORT AND ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2022
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RED BALLOON - NORWICH REPORT OF THE TRUSTEES AND DIRECTORS FOR THE YEAR ENDED 31ST AUGUST 2022
| CONTENTS Report of the trustees and directors Accountant’s Report to the Trustees Statement of Financial Activities Balance Sheet Notes to the Accounts |
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|---|---|
COMPANY REGISTRATION NUMBER
5664446
REGISTERED OFFICE
289, Drayton Road Norwich NR3 2PW
REGISTERED CHARITY NUMBER
1117092
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RED BALLOON - NORWICH REPORT OF THE TRUSTEES AND DIRECTORS FOR THE YEAR ENDED 31ST AUGUST 2022
TRUSTEES AND DIRECTORS
The trustees and directors who served during the year to 31[st] August, 2022 were as follows:
A. Dunn D. Kelly D. Buxton resigned 23 June 2022 J Tate resigned 17 January 2022 C Smith resigned 18 April 2022 C Parry-Jones appointed 15 November 2021 M O Stolady appointed 17 January 2022 G L Crane appointed 23 June 2022
OBJECTS
The objects of the trust are to advance the education of students aged 9 to 18 at the Red Balloon Learner Centre, being students who are anxious school refusers and for the time being are unable to attend mainstream schools, by providing tuition and appropriate support for them in a safe learning environment until they are ready to return to mainstream education or employment.
STATUS
The company is limited by guarantee and as such does not have any share capital. The company is also a registered charity. The charity number is 1117092.
ACCOUNTS
The trustees and directors have pleasure in submitting their report, together with the unaudited financial statements for the year ended 31[st] August, 2022.
TRUSTEES’ AND DIRECTORS’ RESPONSIBILITIES
The trustees and directors are required 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 surplus or deficit of the charity for that period. In preparing those financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently.
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make judgements and estimates that are reasonable and prudent.
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state whether the applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the trust will continue in business.
The trustees and directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the trust and to enable them to ensure that the financial statements comply with the Charities Act 2011.
Page 3 They are also responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report has been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.
RED BALLOON - NORWICH REPORT OF THE TRUSTEES AND DIRECTORS FOR THE YEAR ENDED 31ST AUGUST 2022
Chairman’s report
STRUCTURE GOVERNANCE & MANAGEMENT
1. Governance of the Centre
The Board of Trustees, in consultation with the Head Teacher, makes decisions about staffing, budgeting, and performance reviews.
2 Local fundraising
The Trustees aim to raise funds, ideally, to be used to enhance the provisions we offer, to buy resources, equipment, cover the cost of essential repair and replacement, etc; these funds are also used to fund unfunded students.
3 Raising awareness
Trustees need to raise local public awareness of the needs of children who have been traumatized for whatever reason (eg family breakdown, bereavement, rape, bullying etc) that they cannot for the time being attend mainstream school. The aim is to draw attention to the fact that such children should be provided with a way to recover their health and full-time education. Red Balloon offers this service.
The trustees have identified two main concerns:
1 Sourcing of funding for students.
2 Sourcing of students
In 2013, Red Balloon Norwich was added to Norfolk County Council’s Rolling Select List as a provider of Day Education Services. Norfolk County Council issued a further Invitation to Tender in January 2017; our response was accepted in March 2017 and our new contract extends for a rolling five years. As a result, most of our students are directly funded by the Local Authority.
This year twenty students attended full-time for the whole year. The Local Authority funded all of these students – all students had education and healthcare plans. The Centre has been full.
Our capacity has been increased by agreement of the Department for Education to allow us to outsource the education of some students to Red Balloon of the Air or similar providers. Red Balloon Norwich negotiates the curriculum with, and meets the social, psychological and therapeutic needs of, these young people. Between six and nine students engaged with Red Balloon of the Air for the year.
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We are still open to receiving students who are directly funded by their parent schools and we also accept referrals directly from schools or parents/carers.
ACHIEVEMENTS & PERFORMANCE
Achievement and performance at Red Balloon (Norwich) is measured by the increase in self-esteem and confidence of each student, in their ability to hold their own in the wider world, in their understanding of themselves and others and in their recovery and return to mainstream or further education or employment.
RED BALLOON - NORWICH REPORT OF THE TRUSTEES AND DIRECTORS FOR THE YEAR ENDED 31ST AUGUST 2022
The Centre normally operates from 9.00am – 3.30pm each day for 36 weeks of the year. The Centre has been fully open for the entire year despite the COVID pandemic. All students successfully completed their statutory education with us and for the fifteen students who are leaving all have placements to move on to.
Despite some students having difficulties with the social isolation, most kept their attendance up. Overall attendance for the 20 students who attended regularly throughout the year was 72.2%. Nevertheless, ten students had attendance of 80% or more and four of these had attendance of 95% or more. We continue to have challenging students whose mental health, when they come to us, is quite poor.
Nine students took 25 GCSE examinations in thirteen subjects gaining five 7-9/A,A, twelve 4-6/B,C. Students are normally restricted to taking no more than five subjects in any year, because many of them will have missed months if not years of education and forty percent of their timetable is devoted to personal and social education. One student gained five GCSEs two at Grades 7-9/A,A and three at 4-6/B,C. Another gained four GCSEs two at Grades 7-9/A,A*, two at 4-6/B,C.
In addition, five students outsourced to RB-Air gained 11 GCSEs in six subjects gaining one 7-9/A,A*, seven 4-6/B,C
The success in achieving our aims can be attributed in large measure to the excellent leadership of the Coordinator, Heather Jolly, and to the outstanding teaching and support given by the dedicated staff.
FUNDRAISING
We are very grateful to the many donations made directly and through Virgin Money Giving during a year when fundraising was extremely difficult
We are grateful to Monarch for making signs for us and for donations from Taylor Investments, Laxon, Sweetbriar Holiday and the UEA.
The Trustees, Co-ordinator and staff were unable to hold the Christmas Carol Concert due to COVID restrictions
CENTRE RELOCATION
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76, Earlham Road had served the charity well for 14 years, however, there was demand for more places and Earlham Road was restricted to 20 students. After an extensive search, the charity bought Galley Hill, 289, Drayton Road, which had been extensively refurbished by the previous owner. Following the grant of planning permission for change of use, the purchase was completed on 3 May 2022. Modifications to meet the charity’s requirements were completed in time for the new Centre to open to students on 7 September 2022.
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RED BALLOON - NORWICH REPORT OF THE TRUSTEES AND DIRECTORS FOR THE YEAR ENDED 31ST AUGUST 2022
FINANCIAL REVIEW
Total receipts on unrestricted funds were £589,636. Trading income (£580,663) comprises the fees received to fund the education of those students whilst outside mainstream education.
Staff numbers have been kept aligned to the number of students. Income and expenses were broadly in line with expectation. The Trustees manage and review the budget at each Trustee’s meeting and work closely with the Co-ordinator to ensure that costs are controlled.
RESERVES POLICY
It is the policy of Red Balloon Norwich to maintain at least three and a half months free reserves or £150,000 whichever is the greater. We have to cover salaries in the event of late fee payment and we have to be prepared for a drop in student numbers at the beginning of the academic year – our aim is to help our students back into society, so most of our students are only with use for two years. The decision to reduce the reserves was taken in order to free up funds for expansion.
PUBLIC BENEFIT
Red Balloon Learner Centres provide an 'intensive care' full-time education for children (10-17) who have been so traumatised (by bullying, physical violence, family breakdown, bereavement, rape etc) that they exclude themselves from school. There is no other purpose-made scheme to recover this group of children and to give them back their 'life'. More than half of the students at Red Balloon have attempted or 'seriously considered' suicide. They are provided with a safe environment with clear boundaries for behaviour and an individual full-time academic, pastoral and therapeutic programme.
Of the approximately 6.1 million 10 to 17 year olds in the UK, about three in one thousand is so anxious that he/she has left the mainstream educational system. This represents 16,500 children. Experience in existing Balloons causes us to believe that there is a need for such a Centre in every town and city in the UK.
Once up and running each Balloon takes up to 20 children at any one time and is selffunding. Red Balloon improves the skills and life opportunities of a group of socially isolated, confidence-lacking and ignored children. Red Balloon contributes to stronger communities by identifying and addressing the problem of seriously bullied / traumatised children with the help of the community and for the benefit of the community.
On behalf of the Trustees and Directors
-----------------------D. Kelly 22[nd] December, 2022
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RED BALLOON - NORWICH ACCOUNTANT’S REPORT TO THE TRUSTEES
FOR THE YEAR ENDED 31ST AUGUST 2022
I report on the accounts of the company for the year ended 31[st] August, 2022, which are set out on pages 7 to 11.
Respective responsibilities of trustees and examiner
The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:
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examine the accounts under section 144 of the 2011 Act;
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follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the 2011 Act, as amended); and
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state whether particular matters have come to my attention.
Basis of independent examiner’s report
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
Independent examiner’s statement
In connection with my examination, no matter has come to my attention:
(1) which gives me reasonable cause to believe that in any material respect the requirements:
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to keep accounting records in accordance with section 386 of the Companies Act 2006; and
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to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities
have not been met; or
(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
M.J. Ruffles F.C.A.
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Mark J. Ruffles & Co. Accountants 22[nd] December, 2022
4 Baron Court Werrington Peterborough
RED BALLOON - NORWICH SOURCE AND APPLICATION OF FUNDS AS AT 31ST AUGUST 2022
| NotesRestrictedUnrestricted | NotesRestrictedUnrestricted | NotesRestrictedUnrestricted | NotesRestrictedUnrestricted | 2022 | 2021 | |
|---|---|---|---|---|---|---|
| Funds | Funds | Total | Total | |||
| £ | £ | £ | £ | |||
| INCOMING RESOURCES: | ||||||
| Donations and grants received | - | 5,633 | 5,633 | |||
| 471 Fundraising activities |
3 | - | ||||
| 3,303 3,303 - |
||||||
| Interest receivable | - | 37 | 37 | |||
| - | ||||||
| Tuition fees | - | 580,663 | 580,663 | |||
| 651,045 | ||||||
| -- | ---------- | ---------- | ---------- | |||
| Total incoming resources | - | 589,636 | 589,636 | 651,045 | ||
| = | ====== | ====== | ====== | |||
| RESOURCES EXPENDED: | ||||||
| Cost of generating funds | 3 | - | 100 | 100 | - | |
| Direct charitable expenditure | 20,000 | 499,328 | 512,328 | |||
| 577,347 | ||||||
| Support costs | 4 | - | 33,676 | 33,676 | 31,606 | |
| --------- | ---------- | ---------- | ---------- | |||
| Total resources expended | 20,000 | 526,104 | 546,104 | 608,953 | ||
| ===== | ====== | ====== | ====== | |||
| NET MOVEMENT IN FUNDS | - | 43,532 | 43,532 | 42,563 | ||
| FUND BROUGHT FORWARD | 50,000 | 412,083 | 462,083 | 419,520 | ||
| -------- | --------- | --------- | --------- | |||
| FUNDS CARRIED FORWARD | £30,000 | £475,615 | £505,615 | £462,083 | ||
| ===== | ====== | ====== | ====== |
The notes on page 9 to 11 form part of these financial statements.
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RED BALLOON – NORWICH BALANCE SHEET AS AT 31ST AUGUST 2022
| Notes | 2022 | 2021 | ||||
|---|---|---|---|---|---|---|
| £ | £ £ |
£ | ||||
| FIXED ASSETS | ||||||
| Tangible fxed assets | 5 | 700,535 | 1,407 | |||
| CURRENT ASSETS | ||||||
| Cash at bank and in hand | 334,236 471,992 |
|||||
| Debtors | 6 | - 522 |
||||
| ---------- --------- |
||||||
| 334,236 472,514 |
||||||
| CREDITORS: amounts due within one year7 | 178,378 11,838 |
|||||
| -------- -------- |
||||||
| 155,858 | 460,676 | |||||
| ---------- | ---------- | |||||
| 856,393 | 462,083 | |||||
| CREDITORS: amounts due after 12 months | 8 | 350,778 | - | |||
| ---------- | ---------- | |||||
| NET ASSETS | £505,615 | £462,083 | ||||
| ====== | ====== | |||||
| FINANCED BY: | ||||||
| Restricted funds | 9 | 30,000 | 50,000 | |||
| Unrestricted funds | 10 | 475,615 | 412,083 | |||
| ---------- | ---------- | |||||
| £505,615 | £462,83 | |||||
| ====== | ====== |
For the year ended 31[st] August, 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476,
Directors’ responsibilities:
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts,
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.
On behalf of the board
D. Kelly 22[nd] December, 2022
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RED BALLOON - NORWICH NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2022
1 ACCOUNTING POLICIES
Accounting convention
The financial statements have been prepared in accordance with the applicable accounting standards and the Charities accounting statement of recommended practice. There have been no changes in accounting policies.
The financial statements were drawn up under the historical cost convention and in accordance with the provisions of Section 1A “Small Entities” of Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” and the Companies Act 2006.
Fixed Assets
During the year the charity purchased a property to be its new learner centre, replacing the previously rented property. The new property required refurbishment and significant modification works and was officially brought into use in September 2022, being the start of the new academic year. As this was after the year-end date of these statements, no depreciation of the building has been provided.
Grants and voluntary income
All grants and voluntary income are accounted for gross in the period to which they relate.
Expenditure
All expenditure is accounted for gross in the period to which it relates.
Direct charitable expenses
The directors consider that direct charitable expenditure includes all direct costs associated with the objects of the trust.
2022 2021 £ £ 2 OPERATING (DEFICIT)/SURPLUS This is stated after charging: Directors’ remuneration - - Depreciation of fixed assets 1,407 4,264 Accountancy 300 300 ==== ====
3 FUNDRAISING ACTIVITIES
The Trustees held one event, in November, which raised nearly £3,000. Unfortunately,
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the annual Christmas Concert had to be cancelled due to Covid.
RED BALLOON - NORWICH NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2022
| 2022 | 2021 | |||
|---|---|---|---|---|
| £ | £ | |||
| 4 SUPPORT COSTS | ||||
| Professional services | 17,184 19,042 |
|||
| Red Balloon National Annual Levy | 8,000 | 8,000 | ||
| Mortgage interest | 6,785 | - | ||
| Depreciation of ofce equipment | 1,407 | 4,264 | ||
| Accountancy | 300 | 300 | ||
| -------- | -------- | |||
| £33,676 | £31,606 | |||
| ===== | ===== | |||
| 5 FIXED ASSETS | ||||
| Freehold | ||||
| Property | Equipment | Total | ||
| £ | £ £ |
|||
| Cost | ||||
| At 1stSeptember, 2021 | 39,111 39,111 |
|||
| Additions | 700,535 | - | 700,535 | |
| ----------- | -------- ----------- |
|||
| At 31st August, 2022 | £700,535 | 39,111 | 739,646 | |
| ----------- | -------- | ----------- | ||
| Depreciation | ||||
| At 1stSeptember, 2021 | - | 37,704 37,704 |
||
| Charge for the year | - | 1,407 | 1,407 | |
| -- | -------- | --------- | ||
| At 31st August, 2022 | - | 39,111 | 39,111 | |
| = | -------- | --------- | ||
| Net book value | ||||
| At 31stAugust, 2022 | £700,535 | £- | £700,535 | |
| ===== | = | ====== | ||
| At 31stAugust, 2021 | £- | £1,407 | £1,407 | |
| = | ==== | ==== | ||
| 2022 | 2021 | |||
| £ | £ | |||
| 6 DEBTORS |
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Fee income
RED BALLOON - NORWICH NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST AUGUST 2022
| 2022 | 2021 | ||||
|---|---|---|---|---|---|
| £ | £ | ||||
| 7 CREDITORS: AMOUNTS FALLING DUE WITHIN | ONE YEAR | ||||
| Accruals | 146,166 | 7,018 | |||
| Mortgage | 27,290 | - | |||
| Other taxes and social security costs | 4,922 | 4,820 | |||
| ---------- | -------- | ||||
| £178,378 | £11,838 | ||||
| ===== | ===== | ||||
| 8 CREDITORS: AMOUNTS FALLING DUE WITHIN | AFTER | YEAR | |||
| Mortgage | £350,778 | £- | |||
| ===== | = | ||||
| 9 RESTRICTED FUNDS | |||||
| Balance at | Incoming | Resources | Balance at | ||
| 01/09/21 | Resources | Expended | 31/08/22 | ||
| Legacy | 50,000 | - | 20,000 | 30,000 | |
| -------- | -- | ---------- | -------- | ||
| 50,000 | - | 20,000 | 30,000 | ||
| ===== | = ===== ===== |
||||
| 10 UNRESTRICTED FUNDS | |||||
| General purpose funds | 412,083 | 589,636 526,104 475,615 |
|||
| ====== | ====== ====== ====== |