Reach to Teach (A company limited by guarantee and not having a share capital) Company Number: 06002138 Registcred Charity Number: 1121101 CONSOLIDATED FINANCIAL STATEMENrs FOR THE YEAR ENDED 31st MARCH 2024
Reach to Teach Contents Page Trustees, Report 1-17 Auditor's Report 18-20 Consolidated Statement of Financial Activities 21 Consolidated and Charity Balance Sheets 22 Consolidated and Charity Statement of Cash Flov 23 Notes to the Financial Statements 24-33
Reach to Teach Trustees, Report For the year ended 31 March 2024 The Trustees present their report and the audited financial statements for the year ended 31, March 2024. These have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006, the Memorandum and ArticSes of Association, Financial Reporting Standard 102 and Accounting and Reporting by Charities: Statement of Recommended Practice (FRS 102) (effective I" January 2019). Objectives. Strategy and Service Offerbngs Objectives of the Charity The Charity's principal objectives are to promote and improve the quality of education outcomes in India across Grades I to 12, mainly focusing on Foundational Literacy and Numeracy. The Board has reviewed the objectives of the Charity and has complied with the duty in Section 17 of the Charities Act 2011 to have due regard to the 'public benefit requirement, guidance published by the Charity Commission and confirm these to be as follows: al To make educational grants and the provision of educational services to children in India; and bl To manage the assets of the Charity to support the sustainable making of grants. About Reach to Teach Reach to Teach partners with State Governments in India and provides technical support at scale to strengthen teaching and learning outcomes in Government schools through innovative interventions. Our vision is that every child will have access to quality education to become a confident social citizen with improved life chances. Our mission is to improve education outcomes by making learning joyful, and working with State Governments, partners, parents, and communities with foundational learning skills at the core. We believe every child has the right to quality education, and children learn best when they see, touch, hear and feel. Enhancing teacher agency is critical to strengthen learning outcomes. Engaging with stakeholders such as Governments, school leaders, teachers, and communities plays a pivotal role in children's education. By using locally available resources, leveraging the existing cultural context and strengthening teacher agency, we can create joyfu I learning experiences for all children. Our approach focuses on improving education outcomes through revamping pedagogy and course content, capacity building of teachers, school heads and System officials, Foundational
Reach to Teach Trustees, Report For the year ended 31st March 2024 - continued - Literacy and Numeracy, developing accreditation frameworks for schools and creating a Comprehensive School Transformation Programme for Grades I to 12 with an emphasis on Learning Recovery and Learning Enhancement. To monitor and evaluate our work, we have an embedded Monitoring Evaluation and Learning IMEL) framework for impact assessment We use technology as an enabler and a multi modal approach by using existing tech infrastructure in the State to create outreach. Reach to Teach's work is aligned with the Indian Government's National Education Policy 2020 and it supports the United Nations Sustainable Development Goals 4 (Quality Education), 10 {Reduced Inequalities) and 17 {partnerships for the Goals). Our Service Offerings Reach to Teach'5 work revolves around three central pillars: Governance, Capacity Development and Outreach. Additionally, we have a Comprehensive School Transformation Programme (CSTPI that includes different components of the various pillars in line with the ask of the State concerned. The individual service offerings are as follows: Accreditation: We design Accreditation Frameworks {based on NEP 20201 for State Education Departments to objectively evaluate school performance and critical areas of improvement using qualitative and quantitative indicators. Leadership Development: We engage with school leaders and Head Teachers to identify school improvement processes, build teacher capacity and strengthen good governance. Continuous Professional Development: Bespoke training modules are developed after assessing the needs of head teachers, teachers and other system actors to strengthen teaching practices and school governance. Foundational Literacy and Numeracy: In consultation with all relevant stakeholders, we design state-specific FLN/remedial interventions and carry out training for efficient delivery of the programme. School Readiness Programme: A six-week programme for Classes 1-5 at the beginning of the academic year to re-engage teachers and children on their return from school breaks. It focuses on interactive activities that ease children back into the routine of learning in brick-and-mortar structures. Learning Recovery Programme: Spanning Classes I to 12, the LRP is aimed at bridging students, learning gaps, enabling them to achieve gr3de-appropriate learning. Learning Enhancement Programme: This aims to get children to perform at a level above their grade.
Reach to Teach Trustees, Report For the year ended 31st March 2024 - continued - Reach to Teach also offers a composite service offering known as the Comprehensive School Transformation Programme (CSTP) covering Grades I to 12 where the focus is on assessing learning loss and bringing children up to grade-appropriate learning. By engaging with all stakeholders in the education ecosystem the programme focuses on improving teaching and learning outcomes, through academic reforms, capacity development, and governance reforms. Our Impact Before engaging directly with State Governments in 2019, Reach to Teach had worked for over a decade at the field level in Government schools in Gujarat. This work focused on strengthening learning, community engagement and bringing out-of-school children into formal schooling. From 2019 our strategy changed, and we started working systematically with the Education Departments of State Governments. This enabled us to leverage the learnings and experiences gathered at field level over the preceding years and to take it to scale. We transitioned from a localised approach to a State-wide model. Engaging directly with the Government provided both the outreach and scale required to take forward this learning. Today we work across 57,289 schools with 300,000 teachers and reach over 8.2 million children. Our Programmes We have continued to work in Gujarat and Haryana for the last year. Our Indian subsidiary, Reach to Teach Private Limited, also provided expertise and a donation to support the work of the Indian charity, the Reach to Teach Foundation, in Arunachal Pradesh and Meghalaya.
Reach to Teach Trustees, Report For the year ended 31st March 2024 - continued - HARYANA (2021) ARUNACHAL PRADESH (2022) GUJARAT (2007) MEGHALAYA (2023) Our work in each of these states is outlined below. Gujarat Reach to Teach has worked with the State Government of Gujarat since 2019. Our key focus areas have been the Mission Schools of Excellence Programme, for which we are the Academic and Technical Support Unit, strengthening the Accreditation Framework and supporting the Gujarat Council of Educational Research and Training IGCERTI. ?? *ni Jil Schools Total Teachers incl. Headteacher 1_,5 882 Children The Mission Schools of Excellence Programme implemented by the Government of Gujarat is a six-year programme which started in 2021 and is co-funded by the World Bank, the Asian Infrastructure Investment Bank, and the Gujarat Government under the Gujarat - Outcome for Accelerated Learning (GOAL) project. The programme aims to improve the quality of education by transforming 20,000 government primary schools, and secondary and higher
Reach to Teach Trustees, Report For the year ended 31st March 2024 - continued - secondary government schools into centres of excellence. The emphasis of the programme is on enhancing teaching and learning outcomes, strengthening school infrastructure and resources, and providing innovative learning experiences for children. These schools serve as the hubs for the improvement of satellite schools, and the interventions are being implemented across the State for the benefit of all schools in a classic hub and spoke approach. The programme has four defined Disbursement Linked Indicators IDLI) under education and as the Academic and Technical Support Unit, Reach to Teach is involved in designing and delivering these key educational components of the programme. During the last year, the key activities have been as follows: Teacher capacity development: We carried out a second Training Needs Assessment Report {TNA2), which was built on the first report last year. This showed an improvement in learning outcomes as measured by the reduction in learning hard spots from 180 last year to 133 this year. Based on the results of TNA2 we supported GCERT with the deveSopment of training programmes for teachers which GCERT used to train the 180,000 teachers in the state. Assessment Reforms: We advised State Officials on student assessment and helped develop training plans for 850 State Officials on conducting classroom assessments. We also designed formative and summative assessments for Grades 3 to 8. School Development Plans: We are supporting the preparation of School Development Plans and the development of training plans for School Management Committees which will be rolled out later this year. For the last four years, Reach to Teach has been providing programme management support for the implementation of the School Accreditation Programme known as Gunotsav 2.0. The programme's objective is to design and develop a robust accreditation framework for independent and objective validation of quantitative and qualitative parameters that define school quality and lead to continuous school improvement. We have closely supported the rollout of the programme, from design to implementation. This has included advising on the training of state and district teams on understanding the framework and developing training for the inspectors to carry out inspections and generate report cards. Since 2019, four annual cycles of school accreditation for all 32,500 schools in Gujarat have now been completed. The data analysis has provided valuable insights, which is leading to continuous improvements in the schools. In 2023 following the success of this programme, we were asked to help develop the Accreditation Framework for secondary schools. A pilot across 120 schools was completed by the end of 2023 and the first cycle for secondary schools is currently being rolled out.
Reach to Teach Trustees, Report For the year ended 31st March 2024 - continued - We have continued to support GCERT during the year in curriculum and material development and designing training programmes. We assisted with the review of the State Curriculum Framework and supported GCERT in identifying learning outcomes in Gujarati and English (grades 6 to 8). For teacher training, we helped develop and facilitate the online training for remedial teaching of Gujarati. We are also helping with creating materials, toys and books for Foundational Literacy and Numeracy. During last year, we have continued to support the Director of Primary Education with the access to education programme. This has involved providing support with the pre-enrolment survey and supporting the enrolment drive for the 2023-24 academic session by developing attendance monitoring templates. Haryana -'1 Government Primary Schools IGrades 1-81 ?oa40 01 r.7%1 Children Total Teachers incl. Headteacher Haryana is in the northern part of India, and it has a population of 25.4 million people. It has 14,562 Government schools educating over 2.6 million children. Reach to Teach started work with the Department of School Education (DSE), Haryana in 2021. The National Education Policy 2020 mandated that each State establish a State Schools Standard Authority to create an Accreditation Framework to enable school improvement at scale. Reach to Teach has been working in close collaboration with the Government of Haryana and has designed an Accreditation Framework based on our previous work. The design of the framework focused on both qualitative and quantitative parameters to ensure overall school improvement through the participation of teachers and other stakeholders. The School Accreditation Framework was launched on 25 October 2023 during the launch of the Pradhan Mantri Schools for Rising India (Pmshri) event held in Haryana. The event was inaugurated by Shri Dharmendra Pradhan, Hon'ble Minister of Education, Government of India and Shri Manohar Lal Khattar, Hon'ble Chief Minister of Haryana. The framework has been successfully piloted and is now being rolled out acr055 the whole State. During the last year we have also been developing a leadership development programme covering about 2,400 government middle schools (Grades 6 to 8) across Haryana. This programme includes the design of the training across all areas, including community engagement, governance, budget planning, school improvement and the coaching and mentoring of teachers.
Reach to Teach Trustees, Report For the year ended 31st March 2024 - continued - Recently we have been in discussions with the DSE about broadening out the work beyond accreditation and leadership development into a Comprehensive School Transformation programme. The DSE will decide thi5 later this year. Arunachal Pradesh and Meghalaya During the year to 31st March 2024, our Indian subsidiary, Reach to Teach Private Limited continued to support the work of the independent Indian charity, the Reach to Teach Foundation, through a donation of £48k and pro-bono support by its senior staff. Reach to Teach Foundation works in partnership with the State Education Departments of Arunachal Pradesh and Meghalaya to strengthen learning outcomes. The Foundation signed a tripartite agreement with NITI Aayog (Apex Public Policy think tank of the Government of India) and the Government of Arunachal Pradesh in 2022 and with the Education Department, Government of Meghalaya in 2023 to design and roll out the Comprehensive School Transformation Programme ICSTP) covering Kl2. Arunachal Pradesh and Meghalaya face several challenges particularly low population density spread thin over large areas, hilly terrain, limited road connectivity and intermittent internet availability. The CSTP aims to impact 10,704 schools with over 500,000 children across these two states During the last year, the main activities completed in Arunachal Pradesh were a six week School Readiness Programme for classes I to 5, a Learning Recovery Programme for Classes I to 12 across all 3,061 schools in the state and the development of the Exams and Beyond Toolkit's Teacher Handbook and Student Workbook for Classes 10 and 12. To date the main activities in Meghalaya have been building a learning outcome-based syllabus and competency based assessment framework for the state, the development of teacher handbooks for classes I to 5, the rollout of a pilot survey on learning levels and advice to the state officials on implementing NEP 2020. Going forward Reach to Teach Private Limited intends to continue supporting the work of the Reach to Teach Foundation, although it is anticipated that its donations to the Foundation will reduce as the Foundation is now raising funds from other sources within India. Financial Review During the yearto 31 March 2024 total income was £249k (2023 £556kl. Grants and donation5 totalled £7k which was much lower than the previous year. In that year the Charity received the final grant of £404k from the Larry Ellison Foundation ILEF). The Charity is working on
Reach to Teach Trustees, Report For the year ended 31st March 2024 - continued - securing new funding and expects funding in the current year to be substantially higher than in the year to 31 March 2024. Total expenses increased by 10 per cent from £1,891k in the year to 31 March 2023 to £2,078k in the year to 31 March 2024. Within this total expenditure on charitable activities was £1,804k and the spend on raising funds was £274k. In the year to 31 March 2023 Reach to Teach spent a substantial amount on working with external consultants who helped with the development of education content and this amount is shown separately in note 4. During the year to 31 March 2024 education content has been developed by our own staff working on the programmes and the cost has been included as part of the cost of these programmes. The main areas of charitable activity during the year continue5 to be the work with the Education Departments in Gujarat and Haryana. As Reach to Teach works in partnership with these Education Departments our people are the critical resources and therefore staff salaries are the main cost. The main areas of work in Gujarat were the Mission Schools of Excellence, supporting the school accreditation programmes for primary and secondary schools and supporting GCERT with developing the curriculum and material development. In Haryana the work has focused on setting up the school accreditation programme and developing a school leadership programme. The net loss for the year was £1,829k12023 loss of £1,335k). The loss reflects the much lower level of income and the fact that we continued to draw on the unspent grant brought forward from earlier years. As a result net assets decreased from £6,521k to £4,693k and the main change in the balance sheet was the reduction in the cash balances to £4,850k at 31 March 2024 from £6,176k at 31 March 2023. Future Developments As mentioned above, the final grant instalment of £404k received from the Larry Ellison Foundation was reflected in the financial statements for the year to 31 March 2023. Reach to Teach is very grateful for the support Larry Ellison has provided to Reach to Teach over the last 16 years, which has enabled the organisation to grow from running small field-based programmes in the State of Gujarat to one that works at a large scale with state governments in India seeking to design and implement large scale system strengthening interventions. As funding becomes available Reach to Teach aims to expand its work with State Education Departments in India to design and implement Statewide system-strengthening interventions in the states that face the most serious educational challenges. Going forward, Reach to Teach needs to secure long-term funding. The Strategic Partnership Team at Reach to Teach seeks to partner with bilateral agencies, Development Finance Institutions, international NGOS and high-net-worth individuals who are passionate about
Reach to Teach Trustees, Report For the year ended 31st March 2024 - contlnued - improving foundational learning and numeracy, teaching quality and learning outcomes in India. To date Reach to Teach has received two small grants from Team4Tech (received in March 2023 and May 2024 respectively), a non-profit accelerator, bridging the digital education gap to create opportunities for under-resourced learners. In addition to providing funding Team4Tech has arranged for its volunteer partners to work with Reach to Teach to help solve some of the problems in reporting pupil data and creating communities of practice for teachers in states where internet services are poor. More recently, Reach to Teach has been in advanced conversations with some international NGOS who have expressed interest in the work of Reach to Teach and we expect to secure new funding from these sources within the next 12 month5. Reserves Policy and Going Concern As a result of its scale, the Charity has significant legal, financial and moral commitments. The main obligations are made under the Memorandum of Understanding with the State Governments and the contractual obligations to our staff and other stakeholders. The trustees have also considered whether any possible events might cast significant doubt on the ability of the Charity to continue as a going concern. The Charity has unrestricted reserves on its balance sheet of £400k. This is relatively small but the Charity is satisfied with the position for two reasons. Firstly, the Charity holds substantial cash reserves which arose from the funding received from the Larry Ellison Foundation (LEFI, which has not been spent. At 31" March 2024, cash balances total £4,850k, which is sufficient to cover the costs of the Charity at least until March 2026. Secondly, the trustees believe that the Charity will raise funds in the next 12 months to secure its long-term future. For these two reasons the trustees are satisfied that adequate resources will continue to be available for the Charity for the foreseeable future. Investment Policy The grants received by the Charity from LEF are denominated in US dollars. Since most of the Charity costs are in Indian rupees and the US dollar is aligned more closely with the Rupee than the Sterling, our policy is to retain the majority of the cash funds in US dollars and only convert a sufficient amount to Sterling to cover our UK based costs. Our financial statements are denominated in Sterling, and since the US dollar weakened during the year (from an exchange rate of 0.81 in March 2023 to 0.78 in March 20241, this contributed significantly to the large unrealised105s shown in the financial statements.
Reach to Teach Trustees, Report For the year ended 31st March 2024 - continued - The Charity follows a conservative investment policy with its US dollar funds. Money is held in deposit accounts and short-term fixed deposits with significant banks yielding market rates of interest. Risk Management and Assessment The trustees have a duty to identify and review the risks to which the Charity is exposed to and ensure appropriate policies and procedures to minimize these risks. The Charitws risk framework is based upon the Charity Commission guidance. The written Risk Register contains details of each risk, including an assessment of the existing controls and monitoring activities and the further risk mitigation actions that will be put in place. Key reputational risk management processes and contingency plans for priority risks have also been developed. In addition, a monitoring and assessment process has been agreed upon, which includes a detailed annual review of risks by the Executive Team and the Board. The trustees believe that the risk framework provides an effective system to mitigate the risks the Charity faces. Details of the main risks and how these are managed are set out below. Key risk Details of risk Management of risk Availability of funding to sustain the Charity Funding risk,. Between 2007 and 2023, the Charity has had one funder, the Larry Ellison Foundation ILEF). The grant agreement with LEF has now ended, and the Charity has cash available to fund its activities until March 2026, so it must raise funding in the next 18 months. The Charity has fundraising teams in place in India and the UK nd is in advanced discussions with severa I international organizations and foundations. Black swan Black swan events such as a pandemic, natural disaster or war disrupt the Charitrfs work resulting in delays and repurposing of education budgets for disaster interventions. Covid learnings.. The Charity has built alternative frameworks using online processes and digitalization of education. Our geographical spread means we will be less susceptible to events in one State. Staff security policy in place, which includes c105e monitoring of employees, travel arrangements. events 10
Reach to Teach Trustees, Report For the year ended 31st March 2024 - continued - Our operations are flexible, and staff can be reassigned across projects. Safeguarding risks The risk of harm, exploitation or abuse of an individual during or as result of the Charity'5 Safeguarding policy and reporting procedures are in place with designated safeguarding staff at Board, management and operational levels, and training is regularly provided to all staff. The nature of our work with the government means there is very little direct access to children and communities. programmes. Reputational risks Damage to our reputation would affect our ability to work with state governments and impact our fundraising efforts. Maintenance relationships stakeholder levels. Clear policies and procedures to manage interactions with the media. Contingency plans are in place to manage reputational risks. good across 11
Reach to Teach Trustees, Report For the year ended 31st March 2024 - continued - Regulatory Details Constitution The Charity is a company limited by guarantee and governed by its Memorandum of Association. 06002138 Company Number Charity Number 1121101 Principal & Registered Office Qwest, Unit 3.14, Great West Road, Brentford, TW80GP Board of Trustees The Trustees, who are also the Directors under the Companies Act 2006, and who served st during the period from l April 2023 up until the date of signing this report were: Rakhee Ditta {Chair) Matthew Symonds (Deputy Chair) Neha Aviral Vijay Chhibber {resigned 12 September 20241 Arun Kapur (resigned 25 January 20241 Geeta Khehar Executive Team and Key Management Personnel The members of the executive team who served during the period from I, April 2023 up until the date of signing this report were: Chief Executive Officer: Ratna Viswanathan Chief Operating Officer: Shikha Mathur Principal Director of Finance: Anil Chaudhry tioined 21st August 20231 Principal Director of Programme Strategy and Operations: Bimlesh Kumar (resigned 30 October 20231 Principal Director of UK Operations and Finance: Peter Thomas 12
Reach to Teach Trustees, Report For the year ended 31st March 2024 - continued - Advisors to the Company Bankers: HSBC Metro Bank Pall Mall Commercial Centre 137 Chiswick High Road 5th Floor London 70 Pall Mall W4 2ED SWIY 5EZ Auditors: PKF Littlejohn LLP 15 Westferry Circus London E14 4HD Legal Advisers UK: Bates Wells Braithwaite 10 Queen Street Place London, EC4R IBE Legal Advisers India: Ashwathh Legal K19 Jangpura Extension New Delhi 110014 Auditors India: PKF Sridhar & Santhanam LLP 319, Third Floor, DLF Prime Towers Okhla Phase I New Delhi 110020 Accountants India: Hasmukh Shah & Co 409-410, Dalamal Chambers, New Marine Lines Mumbai 400 020 13
Reach to Teach Trustees, Report For the year ended 31st March 2024 - continued - Structure, Governance and Management Governing Documents The organisation is a charitable company limited by guarantee, incorporated on 17 November 2006 and registered as a charity on 8th October 2007. The company was established under a Memorandum of Association, which established the objects and powers of the charitable company. The Governance of the Charity The governance practices are set out in the Reach to Teach Board Handbook. The Board Handbook is in line with the Charity Governance Code issued in July 2017 by the steering group of charity umbrella bodies. The purpose of the Handbook is to assist the trustees in fulfilling their responsibilities and serve as a point of reference for all key aspects of the Charity's governance framework. The Board and Management of the Charity All major decisions relating to funding, strategy, financial plans and policies are taken by the trustees of the Charity. During the year, formal meetings of the trustees were held at regular intervals. The trustees also conferred regularly by telephone, e-mail and at informal meetings. The Charity has a formal nomination procedure for selecting new trustees. In identifying potential new trustees, the Board looks to bring in people with experience in education, institutional relations resource mobilization and Edtech. The day-to-day management of the Charity is entirely delegated to the Chief Executive Officer (CEO), and she is supported by an experienced executive team. The Charity's executive team is based in India and London. The India team includes the Chief Executive Officer, the Principal Director of Finance and four staff at Director level whose responsibilities include programmes, HR, Strategic Partnerships and Communications. The Principal Director, UK Operations and Finance is based in London. Indemnity Insurance The Charity has indemnity insurance in place, which provides cover for all the trustees and employees. 14
Reach to Teach Trustees, Report For the year ended 31st March 2024 - continued - Remuneration Policy und Senior Staff Remuneration The details concerning the remuneration paid to the Chief Executive during the year and the executive team are disclosed in the financial statements. The trustees carry out their duties on a voluntary basis. The key principle of the Charity's remuneration policy is to attract and motivate staff with the skills and expertise to ensure the delivery of the Charity's objectives while ensuring that pay levels and pay increases are appropriate in the context of the interests of our beneficiaries. In relation to deciding remuneration for the Charity's senior staff, the Charity takes into account the following principles: To ensure that the Charity can access the skills and experiences it requires in its senior staff. Pay is one part of a package that includes personal development, personal fulfilment and association with the public benefit delivered. The Charity has disclosed in note 7 the total remuneration of the executive team. Resource Mobilization Artivities During the year, the Charity received a grant from the Economist Charitable Trust of £6,133 and donations totalling £1,569. The Charity does not actively seek to raise funds from the public, and in recent years there have been very few donations from the public. As outlined above, the Charity is diversifying its f unding. The Charity complies with the Charities (Protection and Social Investment} Act 2016, including the guidance outlined by the Charity Commission for England and Wales (CC20 and CC15dl regarding trustee duties and reporting, respectively. The Charity has never received a complaint regarding its fundraising approach from the general public or any corporates or foundations. It also does not employ any third-party organization to conduct fundraising on its behalf. Trustees, Responsibilities in relation to the Financial Statements The trustees (who are also directors of the Charity 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 {the United Kingdom Generally Accepted Accounting Practice). 15
Reach to Teach Trustees, Report For the year ended 31st March 2024 - continued - Company Law requires the trustees to prepare financial statements for each financial year, which give an accurate and fair view of the State of the affairs of the charitable company and of its income and expenditure for that period. In preparing these financial statements, the trustees are required to: select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; state whether applicable accounting standards, including FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements; state whether a Statement of Recommended Practice (SORPI applies and has been followed, subject to any material departures which are explained in the financial statements; prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping proper accounting records that 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 to prevent and detect fraud and other irregularities. None of the Trustees had any beneficial interest in any contract to which the organization was a party during the year. In so far as the Trustees are aware: there is no relevant audit information of which the charitable company's auditor is unaware; and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. Auditors PKF Littlejohn LLP has indicated their willingness to continue in office and are deemed to be reappointed in accordance with section 487{21 of the Companies Act 2006. 16
Reach to Teach Trustees, Report For the year ended 31st March 2024 - continued - Small Company Exemption This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 and in accordance with the Financial Reporting Standard 102 (effective January 20191. th This report was approved by the Board of Trustees on 12 September 2024 and signed on their behalf by Ms Rakhee Ditta, Chair COMPANY NUMBER: 06002138 17
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF REACH TO TEACH Opinion We have audited the financial statements of Reach to Teach {the 'parent charitable company,) and ils subsidiaries (the 'group'l for the year ended 31 March 2024. which comprise of the Consolidated Stalement of Financial Activities lincorporaling an income and expenditure account). the Consolidated and Parent Charitable Company Balance Sheets, the Consolidated and Parent Charitable Company Cash Flow Statements and notes lo the financial slatemenls, including significant accounting policies. The financial reporting framework that has been applied in their preparalion is applicable law and United Kingdom Accounting Standards, including FRS 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 Irue and fair view of the state of the group's and the parent charitable company's affairs as at 31 March 2024, and of the group's incoming resources and application of resources, including its income and expenditure, for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements ofthe CompaniesAct 2006 and the Charities Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) IISAS {UKI) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial slatements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our olher ethical responsibilities in accordance with these requirements. We believe that Ihe audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to going concern In auditing Ihe financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial stalemenls is appropriate. Based on the work we have performed, we have nol identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the groLSP'S or parent charitable company's ability to continue as a going concern for a period of at least twelve months from when Ihe 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 informatlon The other information comprises the information included in the truslees, annual report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the trustees, annual report. Our opinion on the financial statemenls does not cover Ihe other information, 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 inconsislent with the financial statements or our knowledge obtained in the course of the audit, or otheiSe appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements. we are required to delemine whelher this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude Ihat there is a material misslatement 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 the audii- 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 have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the lighl of the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of Ihe audit, we have not identified material misstatements in the directors, report included within the trustees, annual report. We have nothing lo report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion.. adequate and sufficient accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us., or the parent charitable company's financial statements are not in agreement with the accounting records and returns; or certain disclosures of 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 ofthe small companies, exemptions in preparing the directors, report and from the requirements to prepare a strategic report. Responsibilities of trustees As explained more fully in the Trustees. Responsibilities statement in relation lo the Financial Stalements, the trustees {who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the group and parent charitable Company 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 group and parent charitable company financial statements, the trustees are responsible for assessing the group and parent charitable company's ability to continue as a going concern, disclosing, a5 applicable, matters related to going concern and using the going concern basis of accounting unless the truslees either intend to liquidate the group or the parent charitable company or to Cease operations. or have no r8alistic alternative but to do so. Auditor's responsibilitles for the audit of the financial statements We have been appointed audilor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts and relevant regulations or having effect thereunder. 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 delect a material misstatement when il exists. Misslalements 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 statemenls. Irregularities, including fraud, are instances of nonwcompliance 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 e(ent to which our procedures are capable of detecting irregularities, including fraud is detailed below..
We obtained an understanding of the group and parent charilable company and the sector in which they operate lo identify laws and regulations that could reasonably be expected to have a direct effecl on the financial statements. We obtained our understanding in this regard through discussions with management. seclor knowledge and application of cumulative audit knowledge and experience. We determined the principal laws and regulations relevant to the group and parent charitable company in this regard to be those arising from Companies Act 2006, Charities Act 2011, Financial Reporting standard 102, the Charities SORP and relevant employee legislation. We designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by the group and parent charitable company with those laws and regulations. These procedures included. but were not limited lo enquiries of management, review of minutes, review of legal and regulatory correspondence. We also identified the risks of material misstatement of the financial statements due to fraud. We considered, in addition to the non-rebuttable presumption of a risk of fraud arising from management override of controls. that there was a potential for management bias in the timing of recognition of grant income. We addressed this through review of grant income to ensure correct treatment under the Charities SORP, including consideration of the accounting period in which income should be recognised. We also identified potential for management bias in the judgments made around recoverability of debtors. We addressed this through examination of post year end cash received, review of correspondence with deblors and discussion of recoverability with management. We also identified potential for management bias in the allocation of support costs against charitable activity categories. We addressed this through reviewing Ihe method used for reasonableness, and re-performing the calculation to ensure it had been perfomied accurately in line with the slated method. As in all of our audits, we addressed the risk of fraud arising from management override ofconlrols by performing audit procedures which included, but were nol limited to.. the lesling of journals.. reviewing accounting estimates for evidence of bias. and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. 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 for the audit of the financial statements is located on the Financial Reporting Council's website al: www.frc.or .uklaudilorsres onsibililies. This description forms part of our audilor'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 stale to the charitable company s members those matters we are required lo slate lo 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 lo 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. Alastair Duke (Senior Statutory Auditor) For and on behalf of PKF Littlejohn LLP Statutory Auditor 15 Westferry Circus Canary Wharf London E14 4HD 18 October 2024
Reach to Teaeh Consolidated Statement of Financial Activities For the year ended 31st March 2024 (incorporating an income and expenditure account) Note Unrestricted Restricted Funds Funds 31441ar 2024 Unrestricted Restricted Funds Funds 31-Mar 2023 Income From: Grants and Donations Investment incorne 1,569 241,766 6.133 7,702 241.766 416.579 416,579 139,961 139,961 Totsl 243.335 6,133 249,468 139,961 416,579 556.540 Expenditure On: Ralslng Funds Charitable Actlvltles 274,305 1.803.738 274,305 1,803.758 18 60 244,475 1,646,903 244,493 1.646,963 20 Total 20 2,078.043 2,078.063 78 1.891,378 1.891,456 Net Income for the year 243,315 12.071.910) (1,828,595) 139.883 11.474,799) 11,334,916) Totsl funds broughtforward 1S 158,598 6.362.824 6,521,422 18.715 7,837,623 7 856.338 Total funds carried forward 15 401,913 4.290.914 4,692,827 158.598 6,362,824 6,521,422 All gains and losses arising are included in the slalemenl of financial a¢liviti¢s and arise ffom continuing a¢livities. The slalement of financial activities for the Charity is Sel out in note 2. The notes on pages 24 to 33 fom part of these finan¢ial stslemenls. 21
Reach to Teach Balance Sheets as at 31st March 2024 Group Charity Company number: 06002138 Note 2024 2023 2024 2023 Fixed assets Tangible assels Investments Fixed deposits with banks 11 12 10.118 16,427 967 785,871 795,989 16,427 967 Current Assets Debtors and prepayments Cash al bank and in hand 13 108.693 4.064.450 4,173,143 698,037 6,175,631 6.873,668 223,633 3,897,899 4,121,532 806,285 5,197,172 6,003,457 Current Liabilities Creditors.. amounts falling due one year 230,174 319.789 40,880 58.486 Net Current Assets 3,942,969 6.553,879 4.080.652 5,944,971 Creditors.. amounts falling due after one year 14b 46,131 48,884 Total Net Assets 4,692,827 6.521,422 4,081.619 5,944.971 Funds Restricted funds Unrestricted funds 15 15 4,290,914 401,913 6.362,824 158,598 3.756.978 324,641 5,810,557 134,414 Total Funds 4.692,827 6,521.422 4,081,619 5,944,971 These financial slatements have been prepared in accordance wrth the Provisions applicable to companies subject to the small companies, regime. The company has taken exemption from presenting its unconsolidated profit and loss accounl under section 408 of Companies Act 2006. The net loss of the parent for the year amounted to £1,863,352 (2023.. net loss was £1,488,280). The financial statements were approved by the trustees. and authorised for distribution. on 12th September 2024 and signed on their behalf by: akhee Ditta Trustee The notes on pages 24 to 33 form part of these financial statements. 22
Reach to Teach Cash Flow Statement as at 31st March 2024 Group Charity 2024 2023 2024 2023 Notes Net cash providèd by operating actlvities A (1.561.301) {1.918.026) {1,486,791) (1.899,2981 Cash flows from investing actlvities Interest received Cost of purchasing tangible fixed assets Net cash inflowl(ouffiow} from investment activities 241.766 5,775 235,991 139.631 14.080 125,551 188,678 1.160 187.518 115,699 115,699 Net oufflow in the year At 1 April 2023 Al 31 March 2024 (1.325.310) (1.792,475) (1.299,273) (1,783.5991 6.175,631 7.968,106 5,197,172 6.980.771 4.850.321 6,175,631 3,897,899 5.197,172 A Reconciliation of net oporating income to net cash flow from operating activities Group Charity 2024 2023 2024 2023 Net income Loss on sale of tangible fixed assets Sale proceeds of tangible fixed assets Interest received Forex revalualion of fixed assets Depreciation charges Movement in corporate tax Movement in debtors Movement in prepayments Movement in Greditors Net cash provided by operating activities (1.828,595) (1.334,916) (1,863,352) (1,488,280) 222 134 83 94 {241.766) (139,631) 453 1377) 11,328 14.774 5.396 (2,876) 182.556 {37,625) 406.788 (409.477) 97,766 8,126 1,561,301 1,918,026 {188,678) (115,6991 193 1,230 178,846 403,806 17,606 1,486,791 109,633 1404,618) 1,564 1.899,298 Analysis of changes in net debt Opening cash balance Cashflow in the year Closing cash balance ,175.631 1.325,310 4,850.321 7,968,106 1,792,475 6,175,631 5,197,172 1,299.273 3.897,899 6,980,771 1,783,599 5,197,172 23
Reach to Teach Notes to the Financial Statements For the year ended 31st March 2024 1 Accounting Policies al Basis of preparation These financial slalements for the period 1 April 2023 10 31 Marth 2024 are prepared on a going concern basis under the historical cost convention. The Charity is incorporated in the UK. The financial slatemenls have been prepared in accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021. The Charitable Group is a public benefit group for the purposes of FRS 102. Therefore the Charity also prepared its financial statements in accordance with the Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {The FRS 102 Charities SORP. 2nd Edilionl, the Companies Act 2006 and Groups {Accounls and Reports) Regulations 2008 ISI 20081410). the Charities Acl 2011. b) Going Concem The Iruslees have assessed whether the use of going concern is appropriate and have considered possible events or conditions that might cast significant doubl on the ability of the Charity lo continue as a going concern. The Iruslees have made this assessment for a period of al least one year from the dale of approval of these financial statements. In particular, the trustees have considered the Charitys cash position and financial forecasts. At 31 March 2024 Reach to Teath held cash balances of £4,850k which is sufficient to cover the group's costs until at least March 2026. Also. while the funding from the Larry Ellison Foundation has now ended, the Charily has made good progress in fundraising and expects to secure funding in the near future. As a result, the trustees have concluded that there is a reasonable expectation that the Charity has adequate resources lo continue in operational existence for Ihe foreseeable future. The Charity, therefore. continues to adopt the going concern basis in preparing ils financial slalements. c) Criti¢al accounting estimates and areas of judgement In the application of the group's accounting policies the Iruslees are required to make judgements, eslimales and assumptions, particularly in respect of the depreualion of assets and accruals. These judgements, eslimales and associated assumptions are reviewed on an ongoing basis and are based on historical experience and other factors that are considered lo be relevanl. The principal accounting policies adopled in the preparation of the financial statements are sel out below. dl Income Income is included in the Statement of Financial Activities when the Group has an enlillement to the funds., the amount can be quantified. and the receipt is probable. el Expenditure Liabilities are recognised once there is a legal or construdive obligation lo transfer economic benefit lo a third party, il is probable Ihat a transfer of economic benefits will be required in setllemenl and the amount of the obligation can be measured reliably. All expenditure is accounled for on an accruals basis and has been classified under headings that aggregate all cosls relaled to Ihe category. fl Allocation of overhead and support costs Oveihead and support costs are allocated between the cost of raising funds and charitable aclivilies. A small percentage of senior staff time is allocated to fundraising and this percentage is then applied to the total cost of salaries and the related overheads lo delermine the total cost of raising funds. gl Temiination payments Termination payments lo slaff are recognised in the financial statements when they are incurred. Al the year end. any lerminalion payments agreed but not paid are accrued in the financial statements. h) Fundraislng Fundraising expenditure consists of Ihe costs of raising funds. induding an apportionment of overhead and support costs. il Charitable Activities Costs of charitable activities include the dired costs and slaff cosls related lo our education programmes, the development of our education content and new initiatives together with an apportionmenl of overhead and support costs. 24
Reach to Teach Notes to the Financial Statements (Continued) For the year ended 31st March 2024 11 Tanglble Flxed Assets and Depreclation Tangible fixed assets are stated al cost less depretialion. Depreaalion is provided at rates calculated lo write off a percentage of the carrying amount of the asset each year al the followng rates.. Fixtures & Fittings 33Dh straight line Computer equipment 33Vh straight line The Charity only capilalises ilem$ $ting more than £250. Batches of items below this threshold are immediately expensed to SOFA. kl Penslon costs The Charity provides the option of contribution into the employees, personal pension plans for all employees. The pension cost charge represents contributions payable by the organisalion into the individual stakeholder plans. 11 Fund Accountlng Unre51rided funds are available for use al the Trustees. discretion in lurtheiance of the general obiectives of the Charity. Reslricled funds are funds that are lo be used in accordance with specific reslridions imposed by donors. The aim and use ol each reslricled luntj is sel oul in note 15 of the finan31 statements. ml Operating leases Rentals paid under operating leases are charged lo the income and expenditure account on a slraighl-line basis over the period of the lease. n) Olher flnanc5al Snstruments i. Cash and cash equivalents Cash and cash equivalents include cash al banks and in hand and short term deposits with a malurily date gf Ihiee months or less. Debtors and creditors Dgblors and creditors receivable of payable wlhin one yèar of the reporting dale are earried al their transaction priee. Debtors and creditors that are receivable or payable in more than one year and not subject lo a market interest rale are measured al the present value of the expected fulLbf6 reeeipls or payments discounted 41 a market rale ol interest. ol Foreign Exchangt Pollcy The grants received from the L8rry Ellison Foundation paNI lo the Charity in US dollars and the cash remaining from these 9ranls are held on deposit. Most of the Chariws costs are in Indian rupees and il incurs some cosls in slerlin9. The pollcy Is lo convert the dollars periodically lo Indian rupees and slerling to fund the Indian and UK operations as required. 2 Ststemgnt ol Financial Actlvltles for the Pargnt Charlty lexcludlng Indlan Subsldlaryl Unre$trl¢tod Restricted 31-Mar Funds Funds 2024 Unrestrlcted Restrl¢led Fund$ Funds 31.mar 2023 In¢omo Frorn: Grants and Donatlons Investments 1,569 188,678 6.133 7.702 188,678 416,579 416,579 11 S.699 115,699 Total 190.247 6.133 115,699 416.579 532,278 Expend5turo On Raising Funds Charitable Actlvitlos 65.067 65.7 20 1,994.645 1.994.665 18 66.979 60 1,953,501 66.997 1,953.561 Total 20 2.059.712 2.059.732 78 2,020,480 2,020,558 Net income for the year 190.227 {2,053,579111,863.352 115.621 11,603,901) 11,488,280) Total funds brought fotward 134.336 5,810,635 5.944.971 18,715 7,414,536 7,433,251 Total funds carrled forlvard 324.563 3,757,056 4,081,619 134,336 5.810,635 5,944,971 3 Grants Grants and Donations includes a grant from the Economisl Charitable Trust of £6.133 and other donations of £1.589. Last year Granls ar5d Donations consisted ol Iwo amounls.. £404.400 1$500.0001 which was the final amount received from the Larry Ellison Foundation under the lemis of the grant agreement signed in July 2018, and £12,179 1$15,0001 was a grant from Team4Tech. 25
Reacli to Teach Notes to the Financial Statements (Continued) For the year ended 31st March 2024 4 Charltable Actlvltles Dlrect costs Stsff costs Support Costs 31-Mar 2024 Y&ar to 31st March 2024 Government Programmes Education Conlenl Developmenl 91,510 958.609 753.619 1.803,738 753619 (See Note 51 1 803 738 (See Nole n Dlrect costs Staff costs Support Costs 31-Mar 2023 Year to 31st March 2023 Government Pfogrammes Education Conlenl Developmenl 1,140.210 167,368 14.753 33,657 1.154 963 201025 (See Nole 71 {See Note 51 In the year lo 31 March 2024 the development of educalion ¢onlenl development was carried out by our own slalf as part ol the work on Government Progfamme$. Last year we engaged a third party lo help us develop core malerials that would be used acros5 all programmes. 1,371,218 275,745 1646 963 227.335 290.975 S Support C¢yJis Charltablo Activities Ral$lng Funds Basls of allocatlon 31-Mar-24 Year to 31st March 2024 Sialf costs (Nole 71 Travellin9 Rent and office related costs Communications and IT Re¢ruilmenl Fees Foreign exchange loss Consulling and piofessional lees Legal lees Depre¢ialion Audit and accounling19ovemance costs) Corporate lax Donalion by Reach lo Teach Private Limited lo Reach lo Teach FoUndatn Miscellaneous costs 171.127 171.127 75.335 203.141 15.877 693 191.647 168.273 2.722 11,327 29,598 66,024 75.335 172,670 13,495 589 191,647 104.106 1,626 9,628 28,154 66,024 30,471 2,362 104 64,167 1,699 1.444 48,050 42.295 753.619 48,050 44,110 1,027,924 1.815 274.305 Charltable Actlvltles Ralslng Funds Basss of allocatlon 31-Mar-23 Year to 31st March 2023 Staff costs INole 71 Travelling Rent and office rolaled costs Communications and IT Recruilmenl Fees Foreign exchange gain Consulting and professional fees Legal lee5 Depre¢ialion Audrt and accounting Igovemance coslsl Corporate tax Donalion by Reach lo Teach Privale Limited lo Reach lo Teath Foundation Miscellaneous costs 156.091 1 56.091 104,670 186,025 20,014 4,154 1409.4251 166,414 15.375 14.774 30,104 59.543 104,670 163,702 17,612 3,656 1409.425) 106.589 15.023 13.001 28.894 59.543 22.323 2,402 498 59.825 352 1.773 1,210 51.672 46,088 201.025 51.672 46.107 445,518 19 244.493 lil Slaff lime is allocated lo 'Raisirg Funds. based on the approximale allocalion of staff lo this aclivty. li1} Based on actual costs. liiil Costs apportioned based ¢)n lolal dI¢t and staff costs. 26
Reach to Teach Notes to the Financial Statements (Continued) For the year ended 31st March 2024 6 Trustees. and Key Management Remuneration No remuneration was paid to trustees during the year. Details of trustee expenses are set out below 31-Mar 2024 Number 31-Mar 2023 Number 31-Mar 2024 31-Mar 2023 Expenses paid for Trustees 7 Staff costs In the year, the Key Management Personnel of Ihe Charity were the Chief Executive Officer, the Principal Director of Finance. the Chief Operating Officer. the Principal Director. Programme Strategy and Operations (resigned November 2023) and the Principal Director, UK Operations and Finance. Staff costs include the following amounts paid to the executive team= Note 31-Mar 2024 31-Mar 2023 Wage5 and salaries Termination and redundancy payments Social security costs Employers, pension contribution5 Staff Medical Insurance and other benefits 406,910 428,995 14,968 21,985 815 443,048 20.783 23,921 12,870 486,569 Total salary costs for Ihe group are set oul below 31-Mar 2024 31-Mar 2023 Wages and salaries Social security costs Employers. pension contributions Other employee benefits Total staff costs 1,049.993 13,689 57.180 8,874 1,129,736 1,195,507 19,866 69,148 26,533 1,311,054 Total staff costs Charitable aclivities Raising funds 958,609 171,127 1,129,736 1,154.963 156,091 1,311,054 Included in the above figures for wages and salaries were the emoluments of the Chief Executive Officer who served during the year of £147,904 (2023.. £154,508). The number of staff who received total emoluments over £60.000 were as follows.. Number of staff in Year to 31 March 2024 Number of staff in Year to 31 March 2023 Bands £60,000- £70,000 £100,000- £110,000 £150,000- £160,000 27
Reach to Teach Notes to the Financial Statements (Continued) For the year ended 31st March 2024 8 Staff numbers The average number of employees analysed by function was". 31-Mar 2024 Number 30.0 31-Mar 2023 Number 27.0 Charitable activities Raising funds 9 Net Income for the Year 31-Mar 2023 31-Mar 2023 The result is staled after charging.. Auditor's remuneration Auditor's remuneration - in respect of the subsidiary Loss {Gain} on exchange Operating leases Depreciation 12,000 7,970 191.647 127.961 11.328 12,060 7,957 1409,425) 141,103 14,774 10 Taxatlon The charitable company is a charity within the meaning of Para 1 Schedule 6 Finance Act 2010. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains within categories covered by Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Acl 1992, to the extent that such income or gains are applied exclusivety to charitable purposes. No UK tax charge arose in the period. However, rts subsidiary. Reach to Teach Private Limited. is liable for Indian corpofalion lax at 25 % on ils profits. The charge for Indian corporation tax was £66,024 11 Tangible Flxed Assets Group Fixtures & Fittings Computer Equipment Total Cost As at 1 April 2023 Exchange revaluation Additions Disposals As at 31 st March 2024 519 (19) 85,812 (2,637) 5,775 1,927 86,331 {2,656} 5,775 1,927 87,523 500 Depreciation As at 1 April 2023 Exchange revaluation Charge for the year Disposals As al 31st March 2023 211 (8) 77 69.693 (2.195) 11,251 1,624 77,125 69,904 (2,203) 11,328 1,624 77,405 280 Net Book Value As al 31st March 2024 As at 31st March 2023 220 308 9,898 16,119 10,118 16,427 28
Reach to Teach Notes to the Financial Statements (Continued) For the year ended 31st Mareh 2024 11 Tangible Fixed Assets (continued) Charity Computer Equipment Total Cost As al 1 April 2023 Additions Disposals As al 31st March 2024 11.955 1.160 11.955 1.160 13,115 13,115 Depreciation As al 1 April 2023 Charge for the year Disposals As al 31st March 2024 11,955 193 11.955 193 12,148 12,148 Net Book Value As al 31st March 2024 As al 31st March 2023 967 967 12 Investments R2T Overseas Limited (Company number 063018621 Nature of business.. Investment of charitable funds into India 2024 2023 holding 100 holdlng 100 Class of Share.. Ordinary Aggregate capital and reserves Result for the year 363 363 The fixed asset investment relates lo the investment in a wholly-owned subsidiary. R2T Overseas Limited, a limited company registered in England and Wales. whose regislered office is at Qwesl, Great West Road, Brentford, United Kingdom, TW8 OGP. The company, in tum, conlrols the Indian company, Reach lo Teach Private Limited. Reach lo Teach Prtvate Limited provides staff and operational resources lo support the activities of the Charity in India and has ils registered office at Raj Chamber, 5th Floor. New Nagardas Road, Mogra Pada, Andheri East. Mumbai 4CrfJ)53, India. The investments by the subsidiary company R2T Overseas Limited at the balan sheet date in the share capital of companies indude the following.. Reach to Teach Private Limited Nature of business.. Investment of chaTilable funds to advance education amongst children and young persons in India. Country o11ncooTrI1On.' India 2024 2023 holding holding Class of Shares Ordinary (beneficially owned) The remaining 10/0 of the share capital of Reach lo Teach Private Limited is owned directly by the Reach lo Teach parent entity. 99 99 29
Reach to Teach Notes to the Financial Statements (Continued) For the year ended 31st March 2024 12 Investments (continued) Results for the year ended 31 March 2024 Internal income (fees paid by Reach to Teach) Investment income Total income Administrative expenses Operating profit Corporate tax Results for the period Total funds brought forward at 1 April 2023 Total funds carried forward at 31 March 2024 2024 2023 1,616,322 53,088 1,669.410 (1,625,803 43,607 (66,024) (22,4171 524,936 502,519 1,989,035 24,262 2.013.297 {1,927,426 85.871 {59,543) 26,328 498,608 524,936 Balance Sheet at 31 March 2024 Fixed assets Fixed deposits with banks Ciirrent Assets Debtors Cash at bank and in hand Curenl Liabilities Creditors.. amounts falling due within one year Inlercompany payable Net current assets Creditors.. amounts falling due within one year Total net assets Capital and reserves Share capital 120,347 Profit and loss reserve 502.519 Shareholders funds 622.866 The profit was generated by a mark-up on the operating expenses incurred in India. 13 Debtors Group 9,151 785.871 16,427 1C6,745 166,551 350,530 978.459 (185.6011 (213.721) 126.026 46,130 622,866 (252,7301 (398,2141 678,045 148.882 645,590 120,347 524.936 645.283 Charity 2023 2024 2023 2024 Other Debtors Tax recoverable (i) Amounts due from group companies Prepayments and Accrued Income 87,107 37,989 231,674 7,010 1,363 213,721 398,214 21,586 428,374 2,902 406,708 108.693 698,037 223,633 806,285 The lax recoverable balance of £231.674 in 2023 relates to Goods and Service tax IGST) paid by the Indian subsidiary, Reach to Teach Private Limited, on the purchase of goods and services and this amount was recovered from the Indian government in the year to March 2024. 14a Creditors: amounts falling Group due within one year Charity 2023 2024 2023 2024 Creditors and Accruals Taxes and social security Amounts due to group companies Corporation tax 187,713 31,258 268,991 44,991 39,075 1.442 363 51,995 6,128 363 11.203 5,807 230,174 319,789 40,880 58,486 Included in the accruals figure is an amount of £605 (2023.. £1,063) in respect of outstanding pension contributions. 30
Reach to Teach Notes to the Financial Statements (Continued) For the year ended 31st March 2024 14b Creditors: amounts falling due after one year Group Charity 2024 2023 2024 2023 Creditors and Accruals 46,131 48.884 15 Funds Group 2024 BIFwd Income Expenditure CIFwd Restricted Funds Other donations and other income Grant income 314.826 6.047.998 6,133 (2,078,043} {1,757,084} 6,047,998 Total restricted funds Unrestricted Funds 6,362.824 158,598 6,521,422 6,133 243,335 249.468 (2,078,043) 20) {2,078,063) 4,290,914 401.913 4,692,827 Group 2023 BIFwd Income Expenditure CIFwd Restricted Funds Other donations and other income Grant income 314,826 7.522.797 314,826 6,047,998 416,579 1,891.378 Total restricted funds Unrestricted Funds 7,837,623 18.715 7,856.338 416.579 139,961 556.540 (1,891,378) 78 {1.891,4561 6,362,824 158,598 6,521,422 Charlty 2024 BIFwd Income Expenditure CIFwd Restricted Funds Other donations and investment income Grant income 268,770 5,541,787 6.133 {2,059,7121 (1,784,809) 5,541,787 Total reslricted funds Unrestricted Funds 5.810,557 134.414 5,944,971 6,133 190,247 196.380 (2,059,712} 20 (2,059,732) 3,756,978 324.641 4,081,619 Charlty 2023 BIFwd Income Expenditure CIFwd Restricted Funds Other donation5 and investment income Grant income 268,770 7.145.766 268,770 5,541,787 416,579 2,020,558 Total restricted funds Unrestricted Funds 7.414,536 18,715 7,433,251 416.579 115.699 532,278 (2,020,558) 5,810,557 134,414 5,944,971 (2,020.558) Grant income.. This fund arose by way of grants made to the charity to pursue the charity's objects within specified regions in India. Other donations and interest= This income will be used to support the charity's charitable activities in 2024 and onwards. 31
Reach to Teaeh Notes to the Financial Statements (Continued) For the year ended 31st March 2024 16 Net Assets Split Group 2024 unStrICted Funds Restricted Funds Total 2023 Tangible Assets Fixed deposits wilh banks Prepayments & Accrued Income Other Debtors Cash at bank and in hand Creditors 10,118 785,871 21,586 87,107 3.664,105 276,305 4.292.482 10,118 785,871 21,586 87,107 4,064,450 276,305 4,692,827 400.345 400,345 Group 2023 Unrestricted Funds Restricted Funds Total 2023 Tangible Assets Prepayments & Accrued Income Other Debtors Cash al bank and in hand Creditors 16,427 428,374 269.663 6,017,033 368,673 6,362.824 16.427 428.374 269,663 6,175,631 368.673 6.521,422 158,598 158,598 Charity 2024 Unrestricted Funds Restricted Funds Total 2023 Tangible Assets Prepayments & Accrued Income Other Debtors Cash al bank and in hand Creditors 967 2,902 220,731 3.573,258 40.880 3.756,978 967 2.902 220,731 3,897,899 40.880 4,081,619 324.641 324,641 Charity 2023 Unrestricted Funds Restricted Funds Total 2023 Tangible Assets Prepayments & Accrued Income Other Debtors Cash at bank and in hand Creditors 406,708 399.577 5,062,758 58,486 5,810,557 406,708 399,577 5,197,172 58,486 5,944,971 134,414 134,414 32
Reach to Teach Notes to the Financial Statements (Continued) For the year ended 31st March 2024 17 Related Parties One thousand shares in Reach to Teach Private Ltd (India) are held by R2T Overseas Limited, which is a subsidiary of Ihe Charity. To dale, almost all of the CharlS funding comes from the Larry Ellison Foundation I'lhe Foundation"). During the year to 31 March 2023, the Charity received the final grant of £404.400 from the Foundation under the grant agreement signed in July 2018 and amended in March 2023. The grant agreement sets out the detailed lemis and conditions with which the Charity musl comply. The key terms are a requirement to provide regular progress reports, including a detailed report on activities and expenditure each year. 18 Lease commitments At 31 March 2024 the Charity had total commitments under non<ancellable operating leases as follows.. 2024 2023 Operating leases expiring.. Within one year Within one to five years 7.283 168.884 96,335 36,190 33