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2020-08-31-accounts

Report of the Trustees and Financial Statements for the Year End 31 August 2020 for Rainbow Hub NW Ltd RAINBOW HUB ROIn￿ Hvb is thg irading nome ol Rainbow Hub NW lid. Rainbow Hub NW Lld is o compony1itniled by guaranlee re9islered in Englund ond Wolc5, reg151ered oftite tsddre55'. Suli Pit Lane, MawdeslEy, Orm5kiik. L40 2QX. rg151erEd coFnpony nymber.. 6725399," and a thorily regisiered in England and WalÈ. registered chtsrity nDtnber_. 1127498

For the year ended 31 August 2020

Page
Chairpersons Report ]
Report ofthe Trustees 2-10
Report of the Independent Auditors 11-12
Statement of Financial Activities 13
Balance Sheet 14
Cash Flow Statement 15
Notes to the Cash Flow Statement 16
NotestotheFinancialStatements 17-27

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CHAIRPERSONS REPORT
For the year ended 31 August 2020
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This year has proved to be one of the most challenging in the history of Rainbow Hub. Like many other charities, we have had to adapt the way we deliver our services to comply with Government guidelines surrounding Covid-19 whilst ensuring that we continue to meet the needs of the children and families we support.

As the pandemic took hold, March saw Rainbow Hub having to close the site and think creatively about how to provide ongoing services. We became one the first cenires to offer virtual Conductive Education sessions. At that time we also said goodbye to our Chief Executive, Corole Cochrane CBE and welcomed our Head of Fundraising, Lyndsay Fahey, into the Interim Chief Executive role. We are extremely grateful to Carole for her commitment and dedication to Rainbow Hub and we wish her well in her retirement.

Since the start of the pandemic we have focussed on getting through this challenging period as safely and effectively as possible. It soon became clear that our families needed us more than ever. Many of their other avenues of support and therapy were stopped over night and we becamea lifeline for them during the lockdown period. With thanks to emergency funding from trusts including The National Lottery Community Fund, The Steve Morgan Foundation, the Lancashire and Merseyside Community Foundation, John Laing Group and INEOS Enterprises and with the support of our major donors we were able to continue offering vital therapy to disabled children from across the North West throughout the year.

Despite the challenges brought by Covid-19 we have still made a huge impact on the lives of the children and families we support. That would not have been possible without the incredible support we have received from our funders, the community, our staff and our amazing volunteers.

We would like to thank all those who helped Rainbow Hub through 2019/20 as we look forward to the future and the re-opening of the site in September 2020.

Pauline Clare CBE

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Report of the Trustees
for the year ended 31 August 2020
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The trustees who are also directors of the charity for the purposes of the Companies Act 2006, presant their report with the financial statements of the charity for the year ended 31 August 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Stendard applicable in the UK and Republic of Ireland (FRS 102} teffective 1 January 2019).

The charitable company passed a special resolutian on 21 August 2019 changing its name from The Legacy Rainbow House to Rainbow Hub NW Ltd. The Charity works to the shortened name of Rainbow Hub.

Rainbow Hub is a Charitable Company Limited by Guarantee employing 14 staff {a mixture of full and part time staff] and supporting over 85 families.

Rainbow Hub was established in direct response to the needs of parents of disabled children. The service has grown in boih scope and scale offering an increasing range of services to increased numbers of children and young people.

OBJECTIVES AND ACTIVITIES

Objectives

To achieve the education and relieve the suffering of people (mainly children) with physical disabilities and life reducing conditions and to provide information, advice and guidance for their families ond carers in particular by means of education, conductive education, rehabilitation and the provision of participation in sport and other recreation’.

Public benefit statement

Rainbow Hub works for the public benefit through its work delivering a range of education, enablement and support services to disabled children and young people and their families. The Trustees have complied with their duty to note and pay due regard to public benefit guidance published by The Charity Commission. The Trustees are commitied fo ensuring the Charity remains responsive fo, and respeciful of, the diverse needs of those with disabilities and their families and the local community, enabling families to pursue ordinary lives and to see their disabled family member achieve their full potential.

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STRATEGIC REPORT

Achievement and performance

Charitable activities

This year has been a challenging time for Rainbow Hub. As a charity providing hands on therapies to children with neurological conditions, many of whom are extremely vulnerable to serious illness if they were to contract Covid-19, we have had difficult decisions to make, balancing the safety of our beneficiaries with their need for our services.

Between September 2019 and March 2020 we were delivering Conductive Education, physiotherapy, Rebound Therapy and family support to over 90 children each week. In November 2019 we launched our new name and brand in front of 200 guests at our much anticipated annual ball and we were looking forward to our next phase of development. In March 2020, as the country began to realise the severity of the situation, the Board of Trustees made the difficult but necessary decision to suspend all onsite services. It was also necessary to furlough the majority of our employees in order to protect the future and financial stability of Rainbow Hub.

However, it quickly became apparent that our services were desperately needed as families told us of their desperation. Statutory and respite support had stopped overnight and disabled children were unable to access the physical therapies so vital to their progression. We quickly became one of the first organisations to offer virtual Conductive Education sessions. We adapted our way of working so as well as virtual therapy sessions we were also able to provide home learning programmes, video, telephone calls and email support for families.

We are extremely proud of our staff team who have worked tirelessly through a very difficult year. Despite the challenges we can celebrate a number of achievements, perhaps the greatest of which is continuing to be there for our beneficiaries when they needed us the most.

Our Performance

From September 2019 to March 2020 we provided:

. 4000 hours of Conductive Education ta over 94 children . 100 hours of one te one physio to 15 children ® 200 hours af one to one parent support ° 50 hours of Rebound Therapy to 30 children ‘ A Dad's Day Out to Preston North End FCO , Enabled 20 families to enjoy a trip to Gulliver's World, Warrington e Hasted a family Christmas party enjoyed by over 50 families , Supported 10 families at the Kidz to Adultz North event ° Helped 12 families to successfully complete forms and be awarded Disability Living Allowance

From April 2020 io August 2020 we provided:

’ 440 hours of virtual Conductive Eclucation to over 40 children ° 20 hours of virtual communication group sessions to over 15 children ° Video, telephone and email support to 50 shielding families * Provided 30 hours of access to our sensory room and active movement room to allow individual house olds time away from home in a safe environment ‘ 8 children learned to push up from e sitting position into standing and hald this position {whilst holding the bars and with close supervision} ° 5 children learned how fo push into the 4 point kneeling pasition and hold this for seconds and in some cases minutes . 1 child learned to transfer from a seat to their wheelchair and from the floor to a bench d 18 children learned to walk with aids {ladders and bars) . 10 children have been able to indicate they want something specific

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STRATEGIC REPORT

In addition to these bigger achievements there have also been many smaller achievements which are just as important and significant for the children involved:-

. 8 children have been able to bring their hands to midline . 8 children have been able to bring their arms up/down ° 10 children have been able to engage with toys ° 3 children are able to step without crossing their legs- thus giving them a more natural gait

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These are no small victories.

FINANCIAL REVIEW

Financial position

Rainbow Hub has had a successful year after receiving substantial Covid-19 emergency funding from several donors including The National Lottery Community Foundation, Community Foundation for Lancashire and Merseyside and the Steve Morgan Foundation. The value of these donations is set out in note 2.

We are also fortunate to have the support of several major donors who have continued to support Rainbow Hub throughout the pandemic.

This provides a sound start to 20/21, a year in which we anticipate raising funds will prove difficult.

The cash balances as at 31st August 2020 were £327,572 (2019: £112,902) and the closing net assets were £1,028,842 (2019: £781,896).

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STRATEGIC REPORT
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How we raised the money
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Other: 1.0%
Events: 13.0% \ |
/ Donations: 55.0%
Grant Funding: 31.0% /
GB Donations MlGrantFunding MB Events Mi Other
How we spent the money
Other: 2.0%
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Raising Funds: 27.0% |
Charitable Activities: 71.0%
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MM Charitable Activities {MJ RaisingFunds Mj Other
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Reserves policy

It is the policy of the Charity to maintain unrestricted funds, adjusted for the property value less the associated borrowings, at a minimum level which equates to approximately three months unrestricted expenditure. This provides sufficient funds to cover management, administration and support costs and to respond to emergency applications for grants, which arise from time to time, At present free reserves are at target level,

The Trustees review this policy on an annual basis.

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STRATEGIC REPORT
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Principal risks and uncertainties

The Trustees of Rainbow Hub ensure there is an up to date Risk Register covering principle risks and uncertainties facing the Charity. The Risk Register focuses on the key areas of Finance; Funding; Management; Govemance; Compliance; Services; Health and Safety and Safeguarding.

Trustees guide the strategic direction of the Charity by following an agreed Business Plan. Responsibility for delivering the Business Plan is delegated to the Charity Chief Executive and the staff team, who ensure robust plans are in place and followed for key areas of the organisation.

Trustees meet quarterly and review Key Performance Indicators. They sign off an annual financial budget and review progress against it through detailed management accounts.

Rainbow Hub has strong policies and procedures covering all functions. We follow strict Limits of Authority procedures regarding finance service delivery and fundraising. Two authorised officials are required to sign off decisions or financial transactions at significant levels or outside of the budget.

A Business Management Plan and adequate levels of insurance are in place to reduce the risk of service delivery, reputational, building, IT or HR issues.

Both internal and external training is provided fo all staff and volunteers fo a level appropriate for their roles and responsibilities and all Trustees, staff and volunteers undertake Safeguarding Level 2 training.

Future plans

We are preparing for a change in leadership. The Chair of the Board, Pauline Clare CBE DL, retires in December 2020 after successfully leading the organisation for five years and following the retirement of our former CEO, Carole Cochrane CBE in March 2020.

This focus of this year has very much been raising funds and continuing services throughout the pandemic. Trustees, together with the CEO, will review the Business Plan and create a strategic approach for the next three years which will include:

° Reaching more families ° Developing a more diverse referral pathway ° Implementing an efficient outcome measurement tool . Expanding our Conductive Education service , Expanding our physiotherapy service ° Expanding our Rebound Therapy service ° Developing our outdoor area by updating our sensory area and creating a memory garden ° Working with the Conductive Education Consortium to increase awareness of Conductive Education and its benefits

We are very much aware that the Charity has a difficult year ahead. Our focus for the next year must be on securing sufficient funds and meeting the needs of our beneficiaries whilst minimising risk.

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STRATEGIC REPORT

Our approach to fundraising

We were fortunate enough to benefit from emergency funding made available as a result of the Covid-19 pandemic however we anticipate a reduction in income from many funding streams over the coming 12 months.

In view of this our budget for 20/21 accounts for a substantial reduction in funds generated from community and corporate fundraising. We are also unable to host our annual events as we have in previous years. We will be hosting alternative virtual events but our budget reflects a reduction in income.

implementation of Services

The vulnerability of our beneficiaries and the legislation around Covid-19 has resulted in our services being delivered in a very different way than usual. To minimise risk to families, volunteers and staff we will continue to run smaller group sessions, ensure staff wear adequate PPE, limit visitors to Rainbow Hub and practice social distancing, hand washing and good respiratory hygiene.

We are hoping for a future where these measures are no longer necessary and we can once again focus on the growth and development of Rainbow Hub.

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STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

The Charity is governed by its Memorandum and Articles of Association with the activities of the organisation being entrusted to a Board comprising of at least thrae Trustees. The Trustees are drawn from different backgrounds both in business and as parents of children with disabilities, bringing o broad range of skills, experience and knowledge to Board deliberations.

New Trustees are appointed by resolution of the Trustees, in accordance with the provisions of the Articles of Association. All new Trustees appointed in the year are familiarised with their statutory responsibilities, their role as Board members, the governance framework within Rainbow Hub, the work of the Charity and the risk environment. Ongoing training is arranged as and when identified.

Organisational structure

The Board of Trustees meets quarterly to set the direction and oversees the management and delivery of services. They delegate day to day management to the Chief Executive. Staff are periodically invited to attend Board meetings to present on their areas of work thus enhancing relationships between staff and Trustees and for Trustees to learn more about our services from those delivering them.

The Charity operates with a Senior Management Team comprising of ihe Chief Executive, Office Manager, Lead Conductor and Head of Fundraising.

The Chief Executive works closely with the Senior Management Team who meet on a weekly basis. These meetings help inform the strategic direction and ensure the effective management of the organisation. The meetings ensure close moniforing of services and finances and enable the Chief Executive to raise any relevant issues with the Board at the earliest opportunity,

Our Chair communicates formally with the Chief Executive, monthly as a minimum, to ensure progress against plans is focussed and delivered in line with expectations. Our Treasurer also communicates with the Chief Executive, monthly as a minimum, to discuss finances and ensure expenditure is within budget.

Dacision making

The Chief Executive works with a Senior Management Team which comprises Finance Manager, Head of Conductive, Charity Manager (Resources) & Head of Fundraising. These meetings help inform the strategic direction and ensure the whole organisation is able to participate at all levels throughout the organisation. These Senior Management Team meetings also ensure close monitoring of services and finances and to be able to raise any relevant issues to the Board at the earliest opportunity.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number Registerad office: Rainbow Hub 06725399 (England and Wales) Salt Pit Lane Moawdesley Registered Charity number Ormskirk 1127498 Lancashire L40 2QX

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STRUCTURE, GOVERNANCE AND MANAGEMENT

TRUSTEES

PA Clare (Chair)
KMAbbott (Treasurer)
AV Dewhurst
GE
Jones
K L Macpherson
P Maddison
M Mewha
L D'Arcy
PJ Halmes {appointed 16/12/2019)
LAFarrant (appointed16/12/2019)

KEY MANAGEMENT

L Fahey {interim Chief Executive - appointed June 20, previously Head of Fundraising)
KGee (Office Manager}
C Cochrane (Chief Executive - leftMarch 20)
JAshcroft (LeadConductor}

AUDITORS

McMillan & Co LLP Chartered Accountants and Statutory Auditor 28 Eaton Avenue Matrix Office Park Buckshaw Village Chorley Lancashire PR? 7NA

BANKERS

Barclays Bank pic 38 Fishergate Preston PR] 2AD

National Westminster Bank pic 46 Market Street Chorley Lancashire PR7 2RZ

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STRUCTURE, GOVERNANCE AND MANAGEMENT

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Rainbow Hub NW Limited for the purposes of company law} are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland"

Company law requires the trustees to prepare financial statements for each financial year which give a frue and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for ihe prevention and detection of fraud and other irregularities.

in so far as the trustees are aware:

AUDITORS

The auditors, McMillan & Co LLP will be proposed for re-appointment at the forihcoming Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on ...Ae™Oetemfet leote and signed on the board's behalf by:

K M Abbott - Trustee

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REPORT OF THE INDEPENDENT AUDITORS TO
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Opinion

We have audited the financial statements of Rainbow Hub NW Limited (the ‘charitable company} for the year ended 31 August 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including @ summary of significant accounting policies. The financial reperting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland’.

In our opinion the financial statemenis:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)} and applicable law. Our responsibilities under those standards are further described in the Auciitors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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REPORT OF THE INDEPENDENT AUDITORS TO
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Matters on which we ore required fo report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matiers where the Companies Act 2006 requires us to report to you if, in our opinion: ° adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our rasponsibilities for the audit of the financial statements

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.fre.org. uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors! report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Neil McMillan FCA (Senior Statutory Auditor}

for and on behalf of McMillan & Co LLP Chartered Accountants and

Statutory Auditor 28 Eaton Avenue Matrix Office Park Buckshaw Village Chorley

PR7 7NA Page 12

ee

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 August 2020

2020 2019
Unrestricted Restricted Total Total
funds funds funds funds
Notes € € £ £
INCOME AND ENDOWMENTS FROM
Donations Zz 502,437 199,783 702,220 429,347
Charitable activities 5
Charitable activities 300 2 300 22,154
Events 3 109,587 = 109,587 122,569
Investment Income 4 267 - 267 18
Total 612,591 199,783 812,374 574,085
EXPENDITURE ON
Ralsing funds 6 150,166 : 150,166 184,799
Charitable activities Z
Charitable activities 174,755 194,183 368,938 376,395
Depreciation 34,649 - 34,649 35,958
Other 1]p74 * 11,674 -
Total 371,244 194,183 565,427 597,152
NETINCOME/{EXPENDITURE) 241,347 5,600 246,947 (23,067)
RECONCILIATIONOF FUNDS
Total funds broughtforward 781,896 < 781,896 804,963
TOTAL FUNDS CARRIED FORWARD 1,023,243
>>		 5,600
——______-}		 1,028,843
————————}		 731,896
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BALANCE SHEET For the year ended 31 August 2020

2020 2019
Unrestricted
fund		 Restricted
funds		 Total
funds		 Total
funds
Notes £ € £ £
FIXED ASSETS
Tangible assets 13 1,200,502 - 1,200,502 ~—«‘1,222,761
CURRENT ASSETS
Debtors
Cash at bank		 14 35,341
321,972		 -
5,600		 35,341
327,572		 13,266
112,902
357,313 5,600 362,913 126,168
CREDITORS
Amounts falling due within oneyear 15 (122,329) - (122,329) (119,797)
NETCURRENTASSETS 234,984 5,600 240,584 6,371
TOTAL ASSETS LESS CURRENT LIABILITIES
1,435,486 5,600 1,441,086 ‘1,229,132
CREDITORS
Amountsfalling due aftermorethan oneyear 16 (412,243) . (412,243) (447,236)
NETASSETS 1,023,243 5,600 1,028,843 781,896
FUNDS 20
Unrestricted funds 1,023,243 781 ,896
Restricted funds §,600 -
TOTAL FUNDS 1,028,843 781B96
SS ————
ey

The financial statements were approved by the Board of Trustees and authorised far issue on salle? DECOMIC 2ete.......... and were signed on Its behalf by:

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CASH FLOW STATEMENT For the year ended 31 August 2020

2020 2019
Notes £ £
Cash flowsfrom operating activities
Cash generatedfrom operations
Interest paid		 1 276,370
(14,584)		 95,499
(17,480)
Netcash provided byoperating activities 261,786 78,019
Cash flowsfrom Investing activities
Purchase oftangible fixedassets
Interest recelved		 {12,390}
267		 (18,020)
18
Netcash used In Investing activites {12,123} (18,005)
Cash flowsfrom financing activities
Mortgage repayments In year		 (34,993) (32,904)
Netcash used in financing activities (34,993) (32,904)
Change In cash and cash equivalents In
the reporting period		 214,670 27,110
Cash and cash equivalents atthe
beginning ofthe reporting perlod		 112,902 85,792
Cash and cash equivalents attheend of
the reporting period 327,572
—————		 112,902
SSS

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NOTES TO THE CASH FLOW STATEMENT For the year ended 31 August 2020

1s RECONCILIATION OF NET INCOME/{EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

ACTIVITIES
2020 2019
£ £
Net Income/(expenditure) for the reporting period (as per theStatement
of Financial Activitfes) 246,947 (23,067)
Adjustments for:
Depreciation charges 34,649 35,958
Interest received (267) (15)
Interest paid 14,584 17,480
{Increase)/decrease In debtors (22,075) 14,009
Increase In creditors 2,532 51,134
Net cash provided by operations 276,370
———————F		 95,499
————

2: ANALYSIS OF CHANGES IN NET DEBT

At 1/9/19 Cash flow At31/8/20
£ £ £
Net cash
Cash atbank 112,902 214,670 327,572
112,902 214,670 327,572
Debt
Debts falling duewithin 1 year (40,000) z {40,000}
Debtsfalling due after 1 year (447,236) 34,993 (412,243}
(487,236) 34,993 (452,243}
Total (374,334)
—————		 249,663
———		 (124,671)
—S——

Total

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NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 August 2020
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  1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to chorities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 Jonuary 2019)', Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Rainbow Hub NW Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recorded at historical cost unless otherwise stated in the relevant accounting policy note(s).

The presentational currency of the charity is pound sterling (£) and the amounts in the financial statements have been rounded to the nearest £1.

There are no material uncertainties about the charity's ability to continue.

Going concarn

The financial statements have been prepared on the going concern basis on the Trustees' assumption that the Charity will continue to meet ifs obligations as they fall due. This depends on the Charity's ability to raise sufficient finance to fund its unrestricted operations. Due to the nature of the Charity's income, much of which is received from public donations, it is difficult to forecast a large proportion of the income with any degree of certainty. Current cash flow forecasts, prepared by the Trustees indicate that the Charity has operational funds for the next twelve months from the balance sheet date. The Trustees have taken steps to increase income, and reduce expenditure and are therefore confident that sufficient funds will be raised fo enable the Charity to continue as a going concern.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and ihe amount can be measured reliably.

Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold. Donated facilities are included at the value to the Charity where this can be quantified and a third party is bearing the cost. No amounts are included in ihe financial statements for services donated by volunteers.

Expenditure

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered and is classified under headings of the Statement of Financial Activities to which it relates:

Company siatus

The Charity is a company limited by guarantee. The directors of the company are the trustees named on page 1. in the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per director of the charity.

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NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 August 2020
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  1. ACCOUNTING POLICIES - continued

Allocation and apportionment of costs

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the aclivities they contribute to on a reasonable, justified and consistent basis.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property - 2% on cost Fixtures and fittings - 33% on cost and 10% on reducing balance Motor vehicles - 20% on cost

Toxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Restricted funds can only be used for particular restricted purposes within the objects of the Charity. Restrictions arise when specified by the donor or when funds ore raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the nates to the financial statements.

Financial instruments

Financial instruments are classified and accounted for according to the substance of the contractual arrangement as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabifities.

2. DONATIONS . 2020 9019
£ £
Donations and gjfts 448,404 342,589
Trusts and grants 253,816 86,758
702,220 429,347
—_ ——

Page 18

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2020

2. DONATIONS- continued

Grants received, included in the above, are as follows:

£ £
Steve Morgan Foundation 33,762 32,209
Henry Smith
General
GroundworkUK (Tesco)		 -
3,102
3,000		 30,000
:
+
UK Heart Foundation 7,202 .
HSBC - Active Movement Room : 13,926
The Edward Gostling Foundation §,000 5,000
Marks& Spencer - 432
Epic Kidz = 613
Eccleslastloal Grant 3 2,500
Bryan Lancaster's Trust ‘ 400
The Annandale Charitable Trust : 1,678
Community Link Foundation 1,950 -
Proven Trust 300 -
The Robert& Evelyn Maud Hall Charitable Trust §00 -
Shepherd StreetTrust 2,500 .
Lancashire Community Fund Community Foundation for Lancashire
The National LotteryCommunity Fund		 §,000
110,000		 -
-
Ineos Holdings
Percy Bilton		 10,000
§,000		 -
-
The CaseyTrust 1,500 -
Souter Charttable Trust Donation 2,000 <
TheWR Foundation 1,000 -
The Nestor Foundation 1,000 “
The John Slater Foundation 4,000 -
The Sportech Foundation 30,000 -
The BarbaraWard Foundation
Laing InvestmentManagement		 6,000
20,000		 -
:
Other granis 1,000 -
253,816 86,758
——————_ ——
2. EVENTS
2020 2019
£ £
Annual Balls 79,551 68,355
Fire walk - 5572
Ladies lunch - 8,532
Ramble
Workoutathon		 23,939
3,677		 21,116
5,910
Others 2,420 13,084
109,587 122,569

Page 19

Se

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2020

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |4.|INVESTMENT|INCOME| |2020|2019| |£|£| |Deposit|account|Interest|267|15| |=>|aaa| |5.|INCOME|FROM|CHARITABLE|ACTIVITIES| |2020|2019| |Parental|Income|ActivityCharitable|activities|£300|22,154£| |Beets|==| |6.|RAISING|FUNDS| |Ralsing|donations|and|legacies| |2020|2019| |£|£| |Staff|costs|108,004|123,118| |Advertising|and|promotion|178|1,485| |Fundraising|events|25,082|37 ,220| |Support|costs|16,902|22,976| |150,166|184,799| |7.|CHARITABLE|ACTIVITIES|COSTS| |Support| |Direct|costs|(see| |Costs|note|8)|Totals| |£|£|£| |Charitable|activities|325,523|43,415|368|938| |Depreciation|34,649|-|34,649| |360,172|43,415|403,587| |8.|SUPPORT|COSTS| |Governance| |Monagement|Other|costs|Totals| |£|£|£|£| |Rolsing|donations|and|fegacles|10,270|3,859|2773|16,902| |Other|resources|expended|10,752|922|-|11,674| |Charitable|activities|20,420|11,902|11,093|43,415| |41,442|16,683|13,866|71,991| |SSE|EES SSRSS|—=—__|—===|

----- End of picture text -----

Page 20

----- Start of picture text -----
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 August 2020
----- End of picture text -----

9. NET INCOME/{EXPENDITURE)

Net income/(expenditure} is stated after charging/ (crediting):

income/(expenditure} is stated after charging/ (crediting):(crediting):
2020 2019
£ £
Auditors' remuneration 1,200 1,200
Depreciation -owned assets 34,649
_————4		 35,958
—————
  1. TRUSTEES' REMUNERATION AND BENEFITS There were no trustees’ remuneration or other benefits for the year ended 31 August 2020 nor for the year ended 31 August 2019.

Trustees’ expenses

There were no trustees! expenses paid for the year ended 31 August 2020 nor for the year ended 31 August 2019.

11. STAFF COSTS

STAFF COSTS
2020 2019
£ £
Wages and salaries
Social security costs		 267,565
20,904		 372,391
27,578
288,469 399,969
Theaverage monthly number of employees during the yearwas as follows:
2020 2019
Generating voluntary income § 4
Charitable activities im 14
Support 2 3
18 21
———————) oe

No employees recelved emoluments in excess of £60,000.

12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted
fund
£		 Restricted
funds
£		 Total
funds
£
INCOME AND ENDOWMENTS FROM
Donations 371,990 57,357 429,347
Charitable activities
Charitable activities 22,154 : 22,154
Events
Investment Income		 122,569
15		 7 122,569
15
Total 516,728 §7,;357 574,085

Page 21

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2020

12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - Continued
Unrestricted Restricted Total
fund funds funds
£ £ £
EXPENDITURE ON
Raising funds 179,799 5,000 184,799
Charitable activities
Charitable activities 324,038 §2,357 376,395
Depreciation 35,958 Z 35,958
Total 539,795 57,357 597,152
NET INCOME/{EXPENDITURE} (23,067) ‘ (23,067)
RECONCILIATION OF FUNDS
Total funds brought forward 804,963 F 804,963
TOTALFUNDS CARRIED FORWARD 781,896 - 781,896
13. TANGIBLE FIXED ASSETS
Fixtures
Freehold and Motor
property fittings vehicles Totals
£ £ £ £
COST
At 1 September2019 1,200,596 412,531 15,500 1,628,627
Additions - 12,390 - 12,390
At31 August2020 1,200,596 424,921 15,500 1,641,017
DEPRECIATION
At 1 September2019 145,446 244,920 15,500 405,866
Charge foryear 16,012 18,637 - 34,649
At31 August2020 161,458 263,557 15,500 440,515
NETBOOKVALUE
At 31 August2020 1,039,138 161,364 - 1,200,502
At31August2019 1,055,150 167,411 - 1,222761

Page 22

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August e020

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020 2019
£ £
Trade debtors 11,000 693
Otherdebtors 7,635 -
Prepayments and accrued Income 16,706 12,573
35,341
=—S—		 13,266
———
15. TANGIBLE FIXED ASSETS
2020 2019
£ £
Mortgage (see note 17) 40,000 40,000
Trade creditors 19,994 16,756
Social securityand othertoxes 3,659 6,135
Accruals and deferred income 58,676 56,906
122,329 119,797
——————————7 ———__——_=
16. CREDITORS: AMOUNTS FALLING DUE AFTERMORE THAN ONE YEAR
2020 2019
£ £
Mortgage(seenote17) 412,243 447,236

The mortgage due after more than 5 years Is repald at a quarterly amount of £4,185.30 and attracts Interest at 2.7% per annum.

17. LOANS

An analysis of the maturity of loans Is given below:

2020 2019
£ £
Amounts falling due within one yearon demand:
Mortgage		 40,000 40,000
Amounts falling between one and two years:
Mortgage - 1-2 years 40,000
S=—=—=—=—=		 40,000
—
Amounts falling due between two and fiveyears:
Mortgage - 2-5 years 120,000 120,000
Amounts falling due In more than five years:
Repayable by instalments:
Mortgagedueover5years 252,243 287,236

Page 23

|

----- Start of picture text -----
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 August 2020
----- End of picture text -----

18. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2020 2019
£ £
Between one and five years 5,250 7,350
— ed
SECURED DEBTS
The following secured debts are Included within creditors:
2020 2019
€ £
Morigage 452,243
on		 487,236
_——————

19. SECURED DEBTS

The following secured debts are Included within creditors:

The mortgage Is secured by a fixed charge over the property of the Charity.

20. MOVEMENT IN FUNDS

Net
At 1/9/19 movement
in funds		 At
31/8/20
£ £ £
Unrestricted funds
General fund 781,896 24],347 1,023,243
Restricted funds
Active Movement Room - 2,600 2,600
The Outdoor Sensory Garden - 3,000 3,000
- 5,600 5,600
TOTALFUNDS 781,896 246,947 1,028,843

Page 24

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2020

20. MOVEMENT IN FUNDS - Continued

Net movement in funds, Included In the above are as follows:

Incoming Resources Movement
resources expended Infunds
£ £ £
Unrestricted funds
General fund 612,591 (371,244) 241,347
Restricted funds
PPE 50 {50} ,
Support for Families in Merseyside and
Cheshire
Support for Families in Merseyside		 29,525
300		 (29,525)
(300)		 =
-
Active MovementRoom
The OutdoorSensoryGarden		 27,827
3,000		 (25,227)
:		 2,600
3,000
Contribution Towards Laptops
Covid 19		 2,668
29,237		 (2,668)
(29,237)		 “
-
Magic Carpet Projection Equipment
Marketing Project
Training
Virtual services		 12,202
85,474
3,000
5,000		 (12,202)
(85,474)
(3,000)
(6,000)		 -
-
‘
>
Support for Families in the Manchester
Area 1,000 (1,000)
Supportfor Familfes in Southport 500 (500) -
199,783 (194,183) 5,600
TOTAL FUNDS 812,374
+——__}		 {565,427}
;—_}		 246,947
f——___}
Comparatives for movement In funds
Net
movement At
At 1/9/18 in funds 31/8/19
£ E £
Unrestricted funds
General fund 804,963 (23,067) 781,896
TOTALFUNDS 804,963 (23,067) 781,896

Page 25

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2020

20. MOVEMENT IN FUNDS - Continued

Comparative net movement in funds, Included in the above are as follows:

Incoming
resources		 Resources
expended		 Movement
Infunds
£ £ £
Unrestricted funds
General fund 516,728 {539,795} (23,067)
Restricted funds
Family Days 3,178 {3,178} -
Supportfor Families In Merseysideand
Cheshire		 32,208 (32,208) -
Supportfor Families in Merseyside 2,000 (2,000) -
Active Movement Room 13,926 (13,926) -
CE Salary support
The Outdoor Sensory Garden		 §,000
432		 (5,000)
(432)		 -
-
Contribution Towards Laptops 613 (613) -
57,357 (57,357) s
TOTALFUNDS 574,085
f————__—_J		 (597,152)
———_		 (23,067)
—_

21. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 August 2020 or for the year ended 31 August 2019.

22. RESTRICTED FUNDS

Restricted funds are to be opplied as follows:

Restricted Fund - PPE

This fund is to provide personal protective equipment. The amount held in this fund as at 31 August 2020 was £Nil (2019: €Nil).

Restricted Fund - Support for Families in Merseyside and Cheshire

This fund is supported by the Steve Morgan Foundation for the use of providing conductive education for families specifically from the Merseyside and Cheshire area. The amaunt held in this fund as at 31 August 2020 was £Nil (2019: ENil).

Restricted Fund - Support for Families in Merseyside

This fund is for the use of providing conductive education for families from the Merseyside area. The amount held in this fund as at 31 August 2020 was £Nil (2019: £Nil).

Restricted Fund - Active Movement Room

This fund is to provide capital contribution towards the active movement room. The amount held in this fund as at 31 August 2020 was £2,600 (2019: £Nil).

Restricted Fund - Contribution towards Laptops

This fund is to provide support towards the cost of iPads and laptops. The amount held in this fund as at 31 August 2020 was £Nil (2019: Nil)

Restricted Fund - Covid 19 Funding

This fund is to help towards providing the core services and running costs during the Covid 19 pandemic. The amount held in this fund as at 31 August 2020 was E£Nil (2019: £Nil).

Page 26

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2020

22. RESTRICTED FUNDS - Continued

Restricted Fund - Magic Carpet Projection Equipment

This fund is to provide projection equipment for use on the Magic Carpet. The amount held in this fund as at 31 August 2020 was ENil (2019: ENil).

Restricted Fund - Marketing Project

This fund is to provide support towards the marketing costs of the Charity. The amount held in this fund as at 31 August 2020 was £Nil (2019: SNil).

Resiricted Fund - Training

This fund is to provide support towards the cost of training within the Charity. The amount held in this fund as at 31 August 2020 was ENil (2019: ENil).

Restricted Fund - The Outdoor Sensory Garden

This fund is to provide support towards the cost of creating the Outdoor sensory garden. The amount held in this fund as ct 31 August 2020 was £3,000 (2019: £Nil).

Restricted Fund - Virtual Services

This fund is for the use of providing conductive education for families from the Merseyside area. The amount held in this fund as at 31 August 2020 was £Nil (2019: £Nil).

Restricted Fund - Support for Familias in Southport

This fund is for the use of providing conductive education for families from the Southport area. The amount held in this fund as at 31 August 2020 was £Nil (2019: £Nil).

Page 27

Our Performance

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----- End of picture text -----

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----- End of picture text -----

From April 2020 to August 2020 we provided:

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The difference we made RAINBOW HIJE3 cliild learned lo transfer fron) a seat lo iheir wheelchair and from the floor to o bench. children look their firsl st8PS childreri leoriied to sil iiidependently children learned to push up froin a sitting position into staiidir)g and hold ihis posilion children have been able to indicote they want soineiliing specif ic children leari)ed lo walk with C4id:, children leorned how lo push inlo the 4 point kneeling posilioii and liold this for seconds and in soine cases minute5. children learned to crawl cliildreii l)¢ve beeii able to eiigcicJe wilh loy£ children learned io move around ihe floor- by way of rolling and coininaiido crawling