Company Registered Number: 06546261 Charity Registered Number: 1129683
THE REACH FOUNDATION
(A Company Limited by Guarantee)
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
THE REACH FOUNDATION
(A Company Limited by Guarantee)
CONTENTS
| Page | |
|---|---|
| Reference and Administrative Details of the Charity, its Trustees and Advisers | 1 |
| Trustees' Report | 2 - 10 |
| Trustees' Responsibilities Statement | 11 |
| Independent Auditor's Report on the Financial Statements | 12 - 14 |
| Statement of Financial Activities | 15 |
| Balance Sheet | 16 |
| Statement of Cash Flows | 17 |
| Notes to the Financial Statements | 18 - 30 |
THE REACH FOUNDATION
(A Company Limited by Guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2022
| Trustees | J Baxter |
|---|---|
| N Jennings | |
| J McGoh | |
| T Roberts | |
| J Tacon | |
| M Trebilco | |
| L Gledhill | |
| A Mroz (appointed 3 November 2021) | |
| N Anum (appointed 1 September 2021) | |
| Company registered number 06546261 Charity registered number 1129683 Registered office Floor 5 Axiom House Feltham TW13 4AU Independent auditor MHA 6th Floor 2 London Wall Place London EC2Y 5AU |
Page 1
THE REACH FOUNDATION (A Company Limited by Guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2022
The Trustees present their annual report together with the audited financial statements of the Charity for the year ended 31 August 2022. The Annual Report serves the purposes of both a Trustees' Report and a Directors' Report under company law. The Trustees confirm that the Annual Report and financial statements of the Charity comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) as amended by Update Bulletins 1 and 2.
Since the Charity qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
Objectives and activities
a. Policies and objectives
At the Reach Foundation, we believe that every child deserves a life of choice and opportunity. Starting in Feltham, the Charity acts locally through a community based cradle to career model, grounded in great schools. We also work nationally to drive systemic change towards cradle to career provision for all young people.
The Reach Foundation works alongside the Reach Academy Trust in Feltham. The Reach Children’s Hub, an initiative of the Charity, provides an integrated pipeline of provision and support for children and families that complements the work of the school. The Foundation has launched the Feltham Convening Partnership, a cross sector community partnership to improve outcomes of children and young people. The school, Reach Children’s Hub and Feltham Convening Project together represent the Reach Cradle to Career Model.
The Charity is now working with communities beyond Feltham. It has codified its cradle to career model and is delivering leadership programmes and a ‘Cradle to Career’ partnership model. The Charity continues to foster innovation – notably incubating Oak National Academy in response to the Covid-19 pandemic.
b. Strategies for achieving objectives
Starting in Feltham, the Charity seeks to have a transformative impact on communities, making them beacons of social mobility and opportunity for young people, and developing evidenced-based best practice for effectively tackling the complex difficulties affecting vulnerable families. It also seeks to provide new models and challenge for the system. Across the range of its activities, the Foundation seeks to influence policy and practice through its well-documented, codified and stress tested approach to delivering change.
The Charity has created a community hub in Feltham that works alongside Reach Academy Feltham to offer a pipeline of support that enables children and young people to live lives of choice and opportunity, by supporting them to be safe and well supported; healthy; academically successful; and to have strong relationships and networks.
c. Activities undertaken to achieve objectives
In order to deepen our impact in Feltham, the Charity has:
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Strengthened the work of the Reach Children’s Hub to support children and families across the age range, with particular progress in our perinatal support strand
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Developed the Feltham Convening Partnership taking a collective impact approach to solving complex problems affecting young people in Feltham.
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THE REACH FOUNDATION (A Company Limited by Guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2022
Objectives and activities (continued)
To grow our impact beyond Feltham, the Charity has:
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Created and launched a Head Teacher development programme (SW100) to develop school leaders with the knowledge, vision and relationships to develop Cradle to Career models in their communities
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Created and launched the Cradle to Career Partnership. This is a structured programme of support for schools and multi-academy trusts that are developing cradle to career models.
The Charity has also further developed the work of Oak National Academy to support children across the country to learn during the pandemic. At the end of the year, Oak transitioned into a new government-funded Arms Length Body.
e. Volunteers
The Reach Children’s Hub has been developing a volunteer strategy to support the local community. A cohort of volunteers have been trained and are now supporting children and families in Feltham.
f. Main activities undertaken to further the Charity's purposes for the public benefit
Over the course of this year, the Charity has:
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Further developed our robust pipeline of support for families between 0-2.
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Delivered a Foundation Degree to local practitioners, thereby strengthening the Early Years workforce in Feltham.
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Established working groups focusing on priority outcomes for young people in Feltham through the Feltham Convening Partnership
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Launched a structured programme of support for schools and Trusts interested in developing their own Cradle to Career model.
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Delivered a highly successful first cohort of SW100 - training leaders and recruiting a strong second cohort.
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Continued to support Oak National Academy, which has continued to provide remote learning support to children and teachers.
Achievements and performance
a. Key performance indicators
Reach Children’s Hub
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Further developed our robust pipeline of perinatal support, which midwives and Health Visitors can refer into; 185 parents accessed support between September 2021 and Aug 2022.
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Delivered Kingston University’s Early Years Foundation Degree to 27 local practitioners, representing 15 different local settings; combined with the Early Years Network, we are empowering practitioners who work with over 600 children.
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Engaged over 120 parents regularly in our various community and Stay & Play groups, and trained 18 Parent Volunteers to co-facilitate activities.
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Provided 1:1 careers advice for over 180 students through our Feltham Futures offer; over 100 schoolleavers also accessed alumni support.
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THE REACH FOUNDATION (A Company Limited by Guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2022
Feltham Convening Partnership
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Consistently convened 71 individuals, representing 22 different cross-sector organisations, since September 2021.
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Established 3 Working Groups focused on our priority outcomes: post-16 opportunities, mental health and wellbeing, Early Years and SEND; as well as a Steering Group, Young Researchers Group and Feltham Youth Activists.
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Conducted a listening campaign of over 350 students across 5 local secondary schools to identify ongoing priority areas.
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Established and co-facilitate a Primary Mental Health Cluster for 9 local schools.
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Delivered pilot apprenticeship training (initial cohort 45) and a Transition Buddies programme (initial cohort 30) to support students and staff in schools.
SW100 Head Teacher development programme
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Grown partnership of Multi-Academy Trusts co-designing and leading regional leadership programme for the South West from 5 Trusts to 9 Trusts.
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Trained and developed 15 primary and secondary school leaders in the first cohort of SW100.
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Recruited 21 primary and secondary school leaders in the second cohort of SW100.
Cradle to Career Partnership
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Designed Cradle to Career Partnership programme to support schools and Multi-Academy Trusts with the process of developing cradle to career models.
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Supported five partner schools and MATs through the partnership. They are focused on two regions: Yorkshire and the South West. Recruited a further eight clusters to start work in September 2023.
b. Review of activities
Reach Children’s Hub workstream highlights
Perinatal Support (0-2)
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Over 330 babies and toddlers have been reached through our perinatal services this year.
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30 parents attended a 5 week antenatal course; 100% said they had a very good understanding of the birth process and were confident in accessing available support.
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70 attended a 5 week Baby Massage group; 96% expressed a far better understanding of their baby.
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51 parents accessed our Baby Talk & Play course on early language; 75% reported a good level of knowledge around their baby’s communication development.
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13 parents on average attend our weekly ‘Tea, Listening & Chat’ baby group drop-in.
Early Years Workforce Development
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We are now accredited to deliver the City & Guilds Level 1 Caring for Children Diploma, extending our EY workforce development offer, in order to support the recruitment and training of high quality local practitioners; there are 10 learners (all local parents) enrolled to start in September 2022.
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Our first cohort of Foundation Degree students successfully graduated in July 2022 and 6 students are proceeding to the next level: a top-up year with Kingston University to complete their full BA degree, which will then enable them to progress onto teacher training.
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94% of our students reported that the degree has had a positive impact on the outcomes of children in their settings; 88% felt better able to assess children’s learning and 100% applied research from the course to their practice.
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THE REACH FOUNDATION (A Company Limited by Guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2022
Community Engagement
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Over 40 parents regularly engage with Our House, a weekly drop-in all-day session at a local community centre; 88% reported their self-confidence has improved, 81% reported that their child’s social and emotional development had improved and 94% said they felt they belonged.
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The Local Authority awarded us £9000 to distribute 360 food vouchers to families throughout the summer holidays, as a result of our strong relationships with the community and ability to prioritise families most in need of support; we have been asked to repeat this support at Christmas.
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Working in partnership with the local Children’s Centre and the Family Nurse Partnership service, we have recently co-produced a weekly Dads’ Group. Through further listening to parents, we are also introducing a new Toddler Group in September to bridge the gap in provision between our perinatal services and supporting children and families into Nursery.
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We continue to deliver Family Links nurturing parenting programmes, which was accessed by 40 parents during the academic year.
Feltham Futures
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14 pupils were identified as at risk of being not in education, employment or training (NEET) at the start of Year 11 in September 2021: 13 have now been supported by Feltham Futures to secure courses at Feltham College or other local colleges and 1 is receiving support with their Apprenticeship pathway.
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We launched our offer of support for alumni students in July with a celebration event attended by 100 young people and staff; social and networking events will continue to be offered alongside more targeted initiatives such as Joining the Dots, a partnership offer of support between universities and schools that will launch in September 2022.
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Royal Holloway University of London’s Widening Access team delivered a series of events and programmes for Reach students throughout the year, focused on careers, university experiences, enrichment opportunities and mentoring.
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We have employed a Careers & Youth Engagement Officer to increase capacity from September 2022.
Feltham Convening Partnership
Our Evaluation Partner, Kingston University, produced an interim Progress Report (due for publication in September 2022) which was informed by interview and survey data from 26 partners who have consistently engaged with FCP since January 2021. They supplemented this information by conducting a focus group with FCP’s Feltham Youth Activists and a review of all the Steering Group and Working Group minutes and postmeeting feedback surveys.
Highlights:
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There are clear signs of joined-up, collaborative working, based on strong community involvement and FCP partner engagement. We are seeing this contributing to cross-sector leadership through the actions within different priority areas.
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Young people feel that their involvement matters, and there are clear signs that they feel they are contributing to change through being involved.
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The data suggests that as relationships have deepened between the different partners, they are realising the benefits of working more closely together. In some cases this has led to partners starting to work in a joined-up way outside of the work of the FCP working groups, beginning to blur some of the distinctions between different organisations.
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THE REACH FOUNDATION (A Company Limited by Guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2022
Challenges:
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Collecting, analysing and sharing a wide range of high quality data about the local system; developing a culture around collective data sharing and agreeing on what “counts” as data, what data to share, when and how.
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Setting shared agendas, goals and priorities across the different organisations represented on the working groups; shifting from individual to institutional buy-in to tackle complex social issues and work differently together.
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Better engaging the wider Feltham community, including finding ways to effectively share information about our work and create robust feedback channels.
Feltham Teacher Programme
The Foundation has supported the Reach Academy Trust’s teacher training offer by offering a limited number of bursaries to support trainee teachers from non-traditional backgrounds.
Oak National Academy
Introduction
From 2020 to September 2022, Reach Foundation established, incubated and significantly supported Oak National Academy (Oak). It is a free national teaching resource and online classroom, initially set up in response to the COVID-19 pandemic. It hosts complete lessons for remote learning and flexible resources to use in the classroom. It has received generous support from both the Department for Education and the Mohn Westlake Foundation.
Over 500 teachers and partners, including those from Reach Academy alongside many other schools and educational organisations, created 10,000 fully-sequenced online lessons, offering a full curriculum covering EYFS to Year 11. Oak also offers a Teacher Hub, providing downloadable slides, worksheets and quizzes for every lesson, allowing teachers to use the resources to support their in-class activity.
Shift in focus beyond the pandemic
While previously primarily focused on providing remote education, across 2021/2022 the use of Oak continued to shift, as the immediate disruption caused by the pandemic waned. Teachers used Oak for a range of other use cases. Research from July 2022 found teachers used it for:
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lesson planning (59% of teacher-users);
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cover lessons (49%);
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teaching in class (41%);
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curriculum planning (30%).
It still had significant use, with research from Teacher Tapp finding that 39% of all teachers in the country used it between January and June 2022. On average 32,000 teachers and 170,000 pupils used Oak’s resources each week across the year.
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THE REACH FOUNDATION (A Company Limited by Guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2022
Impact and evaluation
At the end of 2021/22 ImpactEd completed their annual evaluation of Oak’s work. It found that amongst teachers who use Oak:
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42% saved on average 3 hours each week
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48% improved the quality of their lesson delivery
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47% improved their school’s overall curriculum
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50% increased confidence in curriculum design
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64% rated Oak’s curriculum content quality as high
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Show significantly better wellbeing scores vs non-users and the national benchmark
Transfer to Department for Education
With the ending of the immediate direct impacts of the pandemic, the future of Oak was considered. Following consultation with partners and stakeholders, the Foundation’s Trustees agreed that, at the end of the academic and financial year, Oak would transfer from Reach to become a new independent arm’s length body of the Department for Education. This reflected a desire from the Department to continue its operations, but the shift in its role to supporting teachers with curriculum and lesson planning and resources.
Acknowledgments
Oak National Academy has only been possible thanks to the hard work of hundreds of teachers and educators, with support from an incredible range of schools, businesses, charities, academy trusts, publishers, professional services, local government and technology companies, and the financial support of the Department for Education and the Mohn Westlake Foundation.
c. Fundraising activities and income generation
We have not undertaken any direct fundraising from the general public. Our funding is primarily derived from grants from Trusts and Foundations, our partnership with Save The Children, and individual donors.
Financial review
a. Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
b. Reserves policy
The Trustees consider the level of reserves on a regular basis and are satisfied these are sufficient as at 31 August 2022.
c. Principal risks and uncertainties
The Trustees have assessed the major risks to which the charity is exposed, in particular, those related to the operations and finances of the Charity and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.
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THE REACH FOUNDATION (A Company Limited by Guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2022
Structure, governance and management
a. Constitution
The Reach Foundation is registered as a charitable company limited by guarantee and was set up by a Trust deed.
b. Methods of appointment or election of Trustees
The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed.
c. Organisational structure and decision-making policies
The Trustees met as a Board 6 times during the year. Changes in the Board are set out on page 1. During the year, the Board also established a set of Committees to provide more detailed challenge and support on key areas of the charity’s programmatic delivery.
Ed Vainker is the Chief Executive Officer (CEO).
The Trustees have delegated the day-to-day management of the Reach Foundation to Ed Vainker and his leadership team.
The CEO attends the Board meetings. All Trustees give of their time freely and no Trustee remuneration was paid during the year.
d. Policies adopted for the induction and training of Trustees
New Trustees meet with the Chief Executive Officer and the Chair of the Foundation to discuss their role and responsibilities. As part of their onboarding process the Trustees receive a governance handbook and induction pack from the governance professional. This gives an opportunity to answer any questions and clarify the content of any written documentation circulated to the new trustee. The Chief Executive ensures Trustees are kept up to date with any developments in law changes in conjunction with the clerk and this is achieved through briefings at the Board meetings and circulated written information.
e. Pay policy for Key Management Personnel
The Trustees consider the CEO and the Directors of the Reach Children’s Hub and of Growth Strategy to represent the Executive team of The Reach Foundation.
Changes to the salary of senior members of staff take place after their annual Performance management reviews. It is determined by the Chair of Trustees in coordination with a committee of other Trustees.
f. Related party relationships
The Foundation has a Service Level agreement with the Reach Academy Trust in order to access human resources and services. Further details can be found in Note 19.
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THE REACH FOUNDATION (A Company Limited by Guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2022
Plans for future periods
Reach Children’s Hub and Feltham Convening Partnership
Our main priority for the coming year is to work with the London Borough of Hounslow to support the delivery of the national Family Hubs agenda. We aim to ensure that our work is effectively integrated into that agenda as far as is possible and that the implementation of Family Hubs most effectively supports our community in Feltham.
We will continue to work with our partners Kingston University and Royal Holloway University to strengthen our workforce development pipeline, adding Foundation Degree courses in Special Education, and to improve the quality of support and advice available to young people in Feltham to take them into and through their postschool options.
Leadership Programmes
We will implement the second cohort of our SW100 leadership programme while continuing to support the first cohort into Headship and help them once they are in their roles. We intend to explore the viability of similar programmes in other parts of the country and work with our partner Trusts in the South West to develop an aspiring Trust leader programme.
Cradle to Career Partnerships
We will work with a further eight Trusts serving a total of 50 schools in the coming year, further refining our support model and develop an evidence base around what works in terms of supporting clusters of schools to make their work more coherent. We will aim to make a more public case for the value of a cradle to career approach and ensure that Trusts around the country are aware of the opportunity to partner with us.
Members' liability
The Members of the Charity guarantee to contribute an amount not exceeding £1 to the assets of the Company in the event of winding up.
Disclosure of information to auditor
Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:
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so far as that Trustee is aware, there is no relevant audit information of which the Charity's auditor is unaware, and
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that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
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THE REACH FOUNDATION (A Company Limited by Guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2022
Auditor
Following a rebranding exercise on 15 May 2023 the trading name of the Company’s independent auditor changed from MHA MacIntyre Hudson to MHA.
Approved by order of the members of the Board of Trustees and signed on their behalf by:
………………………………………. J McGoh Trustee Date: 30/05/2023
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THE REACH FOUNDATION
(A Company Limited by Guarantee)
STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2022
The Trustees (who are also the 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 (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgements and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of Trustees and signed on its behalf by:
................................................ J McGoh Trustee Date: 30/05/2023
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THE REACH FOUNDATION
(A Company Limited by Guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE REACH FOUNDATION
Opinion
We have audited the financial statements of The Reach Foundation (the 'Charity') for the year ended 31 August 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the Charity's affairs as at 31 August 2022 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
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THE REACH FOUNDATION (A Company Limited by Guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE REACH FOUNDATION (CONTINUED)
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
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the information given in the Trustees' Report is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of Trustees
As explained more fully in the Statement of Trustees' Responsibilities, the Trustees (who are also the Directors of the Charity for the 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 Charity or to cease operations, or have no realistic alternative but to do so.
Auditor responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made 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 detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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THE REACH FOUNDATION
(A Company Limited by Guarantee)
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE REACH FOUNDATION (CONTINUED)
Irregularities, including fraud, are instances of non-compliance 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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Obtaining an understanding of the legal and regulatory frameworks that the entity operates in, focusing on those laws and regulations that had a direct effect on the financial statements;
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Enquiry of management to identify any instances of known or suspected instances of fraud;
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Enquiry of management and those charged with governance around actual and potential litigation and claims;
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Enquiry of management about any instances of non-compliance with laws and regulations;
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Performing audit work over the risk of management override of controls, including the testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
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Reviewing minutes of meetings of those charged with governance; and
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Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
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 at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
Use of our report
This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Charity's Trustees those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and its Members, as a body, for our audit work, for this report, or for the opinions we have formed.
Rakesh Shaunak FCA
Statutory Auditor London, United Kingdom
Date: 30/05/2023
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313). MHA are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
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THE REACH FOUNDATION
(A Company Limited by Guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2022
| Note Income from: Charitable activities 3 Total income Expenditure on: Charitable activities 5 Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2022 £ 1,582,597 1,582,597 1,035,746 1,035,746 546,851 1,522,854 546,851 2,069,705 |
Restricted funds 2022 £ 5,155,874 5,155,874 5,115,549 5,115,549 40,325 4,257 40,325 44,582 |
Total funds 2022 £ 6,738,471 6,738,471 6,151,295 6,151,295 587,176 1,527,111 587,176 2,114,287 |
Total funds 2021 £ 4,778,090 4,778,090 5,505,917 5,505,917 (727,827) 2,254,938 (727,827) 1,527,111 |
|---|---|---|---|---|
The Statement of Financial Activities includes all gains and losses recognised in the year.
All income and expenditure derives from continuing operations.
The notes on pages 18 to 30 form part of these financial statements.
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THE REACH FOUNDATION
(A Company Limited by Guarantee) REGISTERED NUMBER: 06546261
BALANCE SHEET AS AT 31 AUGUST 2022
| Note Current assets Debtors 10 Cash at bank and in hand 15 Creditors: amounts falling due within one year 11 Net current assets Total net assets Charity funds Restricted funds 12 Unrestricted funds 12 Total funds |
2,016,849 1,449,988 3,466,837 (1,352,550) |
2022 £ 2,114,287 2,114,287 44,582 2,069,705 2,114,287 |
1,186,312 765,344 1,951,656 (424,545) |
2021 £ 1,527,111 |
|---|---|---|---|---|
| 1,527,111 | ||||
| 4,257 1,522,854 |
||||
| 1,527,111 |
The entity was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
However, an audit is required in accordance with section 144 of the Charities Act 2011.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
................................................
J McGoh Trustee Date: 30/05/2023
The notes on pages 18 to 30 form part of these financial statements.
Page 16
THE REACH FOUNDATION
(A Company Limited by Guarantee)
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022
| Note Cash flows from operating activities Net cash used in operating activities 14 Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 15 |
2022 £ 684,644 684,644 765,344 1,449,988 |
As restated 2021 £ (1,018,470) |
|---|---|---|
| (1,018,470) 1,783,814 765,344 |
The notes on pages 18 to 30 form part of these financial statements
Page 17
THE REACH FOUNDATION (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
1. General information
The Reach Foundation is a charitable company limited by guarantee registered with the Charity Commission (Charity Registered Number: 1129683) and the Registrar of Companies (Company Registered Number: 06546261) in England and Wales.
The address of the registered office is given in the Charity information on page 1 of these financial statements.
The nature of the Charity's operations and principal activities are detailed within the Trustees Report.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The financial statements have been presented in pounds sterling, which is also the functional currency of the Charity and are rounded to the nearest pound.
2.2 Going concern
The Trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the Academy Trust has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the Charity's ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.
2.3 Income
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Page 18
THE REACH FOUNDATION (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
2. Accounting policies (continued)
2.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
2.5 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.6 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
2.7 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.
2.8 Financial instruments
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
Page 19
THE REACH FOUNDATION
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
2. Accounting policies (continued)
2.9 Financial instruments
The Charity does not have a material holding in complex financial instruments. The Charity only holds basic Financial Instruments. The financial assets and financial liabilities of the Charity are as follows:
Debtors – trade and other debtors (including accrued income) are basic financial instruments and are debt instruments measured at amortised cost as detailed in Note 10. Prepayments are not financial instruments.
Cash at bank – is classified as a basic financial instrument and is measured at face value.
Liabilities – trade creditors, accruals and other creditors will be classified as financial instruments, and are measured at amortised cost as detailed in Note 11. Taxation and social security are not included in the financial instruments disclosure. Deferred income is not deemed to be a financial liability, as in the cash settlement has already taken place and there is simply an obligation to deliver charitable services rather than cash or another financial instrument.
2.10 Operating leases
Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight-line basis over the lease term.
2.11 Pensions
The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.
2.12 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 are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Page 20
THE REACH FOUNDATION
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
3. Income from charitable activities
| Unrestricted funds 2022 £ Charitable activities 1,582,597 Unrestricted funds 2021 £ Charitable activities 1,385,067 |
Restricted funds 2022 £ 5,155,874 Restricted funds 2021 £ 3,393,023 |
Total funds 2022 £ 6,738,471 |
|---|---|---|
| Total funds 2021 £ 4,778,090 |
4. Income from charitable activities - by type
| Grants Consultancy Income Coaching courses Other self generated income Grants Coaching courses Other self generated income |
Unrestricted funds 2022 £ 1,359,203 20,581 127,213 75,600 1,582,597 Unrestricted funds 2021 £ 1,254,000 86,637 44,430 1,385,067 |
Restricted funds 2022 £ 5,049,103 104,921 1,850 - 5,155,874 Restricted funds 2021 £ 3,393,023 - - 3,393,023 |
Total funds 2022 £ 6,408,306 125,502 129,063 75,600 6,738,471 |
|---|---|---|---|
| Total funds 2021 £ 4,647,023 86,637 44,430 4,778,090 |
Page 21
THE REACH FOUNDATION
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
5. Analysis of expenditure on charitable activities - by fund
| Unrestricted funds 2022 £ Charitable activities 1,035,746 Unrestricted funds 2021 £ Charitable activities 2,094,713 |
Restricted funds 2022 £ 5,115,549 Restricted funds 2021 £ 3,411,204 |
Total 2022 £ 6,151,295 |
|---|---|---|
| Total 2021 £ 5,505,917 |
Page 22
THE REACH FOUNDATION
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
6. Analysis of expenditure on charitable activities - by type
| Charitable activities Charitable activities Analysis of support costs Office costs Other support costs Governance costs Hotels, travel and subsistence Total 2022 |
Activities undertaken directly 2022 £ 5,738,875 Activities undertaken directly 2021 £ 5,416,261 |
Support costs 2022 £ 412,420 Support costs 2021 £ 89,656 Total funds 2022 £ 103,314 299,306 9,800 - 412,420 |
Total funds 2022 £ 6,151,295 |
|---|---|---|---|
| Total funds 2021 £ 5,505,917 |
|||
| Total funds 2021 £ 580 73,734 11,069 4,273 89,656 |
Other support costs of £299,306 (2021 - £73,734) includes £289,484 (2021 - £37,416) which relates to Oak National Academy and £9,822 (2021 - £36,318) which relates to Reach Foundation.
In the year ended 31 August 2022, the Foundation leased office space, the cost of which is included in 'Office costs' above.
Page 23
THE REACH FOUNDATION
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
7. Auditor's remuneration
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Fees payable to the Charity's auditor for the audit of the Charity's annual | ||
| accounts | 4,500 | 4,200 |
| Fees payable to the Charity's auditor in respect of: | ||
| All non-audit services not included above | 1,000 | 800 |
8. Staff costs
| Wages and salaries Social security costs Pension costs |
2022 £ 2,435,617 285,633 265,620 2,986,870 |
2021 £ 1,823,188 190,768 210,358 |
|---|---|---|
| 2,224,314 |
The average number of persons employed by the Charity during the year was as follows:
| 2022 | 2021 | |
|---|---|---|
| No. | No. | |
| Employees | 51 | 42 |
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
| 2022 | 2021 | ||
|---|---|---|---|
| No. | No. | ||
| In the band £60,001 | - £70,000 | - | 4 |
| In the band £70,001 | - £80,000 | 4 | 4 |
| In the band £80,001 | - £90,000 | 5 | 3 |
| In the band £90,001 | - £100,000 | 3 | 2 |
Of the above, the following pertained to Oak National Academy:
£60,001 - £70,000 - 0 (2021 - 4) £70,001 - £80,000 - 4 (2021 - 2) £80,001 - £90,000 - 3 (2021 - 2) £90,001 - £100,000 - 2 (2021 - 2)
Page 24
THE REACH FOUNDATION
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
9. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2021 - £NIL) .
During the year ended 31 August 2022, no Trustee expenses have been incurred (2021 - £NIL).
10. Debtors
| Due within one year Trade debtors Prepayments and accrued income Of the above, the following pertained to Oak National Academy: Accrued income - £1,612,645_(2021 - £877,289)_ |
2022 £ 311,556 1,705,293 2,016,849 |
2021 £ 275,933 910,379 |
|---|---|---|
| 1,186,312 | ||
11. Creditors: Amounts falling due within one year
| Trade creditors Other taxation and social security Accruals and deferred income Other creditors |
2022 £ 58,776 91,686 1,196,735 5,353 1,352,550 |
2021 £ 29,811 64,463 330,271 - |
|---|---|---|
| 424,545 |
Of the above, the following pertained to Oak National Academy:
Accruals and deferred income - £1,089,417 (2021 - £303,404)
Page 25
THE REACH FOUNDATION
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
12. Statement of funds
Statement of funds - current year
| Unrestricted funds General funds Restricted funds Oak Academy - DfE Save the Children Coaching Collective Other restricted funding Total of funds |
Balance at 1 September 2021 £ 1,522,854 - - - 4,257 4,257 1,527,111 |
Income £ 1,582,597 4,688,471 313,068 1,850 152,485 5,155,874 6,738,471 |
Expenditure £ (1,035,746) (4,688,471) (313,068) (1,850) (112,160) (5,115,549) (6,151,295) |
Balance at 31 August 2022 £ 2,069,705 |
|---|---|---|---|---|
| - - - 44,582 44,582 |
||||
| 2,114,287 |
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
Save The Children Funding: the funding from Save the Children has funded the Early Learning Community, which seeks to improve outcomes in Feltham in the Early Years. The Feltham Early Learning Community is one of four that have been set up.
DfE Funding - Oak Academy: the funding from the DfE enabled Oak National Academy to be launched in April 2020 and has supported its work since.
Page 26
THE REACH FOUNDATION
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
12. Statement of funds (continued)
Statement of funds - prior year
| Unrestricted funds General funds Restricted funds Oak Academy - DfE Oak Academy - Mohn Westlake Foundation Save the Children Coaching Collective Heathrow Community Rank Foundation Other restricted funding Total of funds |
Balance at 1 September 2020 £ 796,856 - 1,435,644 326 18,866 3,246 - - 1,458,082 2,254,938 |
Income £ 1,385,067 3,047,601 - 298,029 - - 25,400 21,993 3,393,023 4,778,090 |
Expenditure £ (2,094,713) (3,047,601) - (298,355) (18,866) (3,246) (25,400) (17,736) (3,411,204) (5,505,917) |
Transfers in/out £ 1,435,644 - (1,435,644) - - - - - (1,435,644) - |
Balance at 31 August 2021 £ 1,522,854 |
|---|---|---|---|---|---|
| - - - - - - 4,257 4,257 |
|||||
| 1,527,111 |
Further breakdown of the Oak Academy expenditure is as follows:
| Lesson development Platform development School support and sector engagement IT and other costs Professional costs |
2022 £ 1,469,174 1,555,150 530,656 690,543 442,948 4,688,471 |
2021 £ 1,761,389 758,206 297,761 119,682 110,563 3,047,601 |
|---|---|---|
Page 27
(A Company Limited by Guarantee)
THE REACH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
13. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Current assets Creditors due within one year Total Analysis of net assets between funds - prior year Current assets Creditors due within one year Total |
Unrestricted funds 2022 £ 3,422,255 (1,352,550) 2,069,705 Unrestricted funds 2021 £ 1,947,399 (424,545) 1,522,854 |
Restricted funds 2022 £ 44,582 - 44,582 Restricted funds 2021 £ 4,257 - 4,257 |
Total funds 2022 £ 3,466,837 (1,352,550) 2,114,287 Total funds 2021 £ 1,951,656 (424,545) 1,527,111 |
|---|---|---|---|
14. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income/expenditure for the year (as per Statement of Financial Activities) Adjustments for: Decrease/(increase) in debtors 10 Increase/(decrease) in creditors 11 Net cash provided by/(used in) operating activities |
2022 £ 587,176 (830,537) 928,005 684,644 |
2021 £ (727,827) 774,868 (1,065,511) (1,018,470) |
|---|---|---|
Page 28
THE REACH FOUNDATION
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
15. Analysis of cash and cash equivalents
| Cash in hand Total cash and cash equivalents |
2022 £ 1,449,988 1,449,988 |
2021 £ 765,344 |
|---|---|---|
| 765,344 |
16. Analysis of changes in net debt
| Cash at bank and in hand | At 1 September 2021 £ 765,344 765,344 |
Cash flows £ 684,644 684,644 |
At 31 August 2022 £ 1,449,988 1,449,988 |
|---|---|---|---|
17. Pension commitments
The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost charge represents contributions payable by the Charity to the fund and amounted to £265,620 (2021 - £210,358) . Contributions of £32,733 (2021 - £24,024) were payable to the fund at the Balance Sheet date and are included in creditors.
18. Operating lease commitments
At 31 August 2022 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:
| Not later than 1 year Later than 1 year and not later than 5 years |
2022 £ 32,000 56,000 88,000 |
2021 £ - - |
|---|---|---|
| - |
Page 29
THE REACH FOUNDATION
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022
19. Related party transactions
The Charity has a service level agreement with the Reach Academy Trust in order to access human resources and other services. During the year a total of £199,436 ( 2021 - £215,065 ) was recharged by Reach Academy Trust in respect of those services. None of this transfer relates to Oak National Academy operational costs for which the Charity retained no costs.
20. Post balance sheet events
With effect from 1 September 2022, the Oak National Academy operation was transferred from the Foundation to a new independent arm's length body of the Department of Education.
Page 30
Private and Confidential The Reach Foundation 53-55 High Street, Feltham TW13 4AB
MHA MacIntyre Hudson 6[th] Floor 2 London Wall Place London EC2Y 5AU
Dear Sirs
CONFIRMATION OF REPRESENTATIONS
This representation letter is provided in connection with your audit of the financial statements of The Reach Foundation for the year ended 31 August 2022. We note that your audit was performed for the purpose of expressing an opinion as to whether the financial statements give a true and fair view of the financial position of The Reach Foundation as at 31 August 2022 and of the results of its operations for the year then ended in accordance with the United Kingdom Accounting Standards (UK Generally Accepted Accounting Practice) (UK GAAP) financial reporting framework.
We confirm that the following representations are made to the best of our knowledge and belief, having made appropriate enquiries of other directors and officials of the company with relevant knowledge and experience, (and where appropriate, inspection of supporting documentation) sufficient to satisfy ourselves that we can properly make each of the following representations to you:
GENERAL
-
We have fulfilled our responsibilities as directors, as set out in the terms of your engagement letter under the Companies Act 2006, for preparing financial statements that give a true and fair view in accordance with applicable law and UK GAAP, for being satisfied that they give a true and fair view and for making accurate representations to you as auditors. The financial statements are free of material misstatements, including omissions. We confirm that we have held prior discussion with you to ensure that there is complete agreement on the meaning of all confirmations that we are making to you.
-
We confirm that all accounting records have been made available to you for the purpose of your audit and that all the transactions undertaken by the company have been properly reflected and recorded in the accounting records. All other records and related information, including minutes of all management and shareholders’ meetings, have been made available to you. We have not withheld any information, the knowledge of which could cause you to take a materially different view in your report.
-
We note that the requirements of the Financial Reporting Council’s Ethical Standard apply to this engagement. We acknowledge receipt of your letter addressing ethical threats and any required safeguards to ensure your independence and objectivity. There have been no subsequent changes and we are not aware of any further matters which may impact auditor independence and objectivity.
ASSETS AND LIABILITIES
-
We confirm that the company has satisfactory title to all assets and there are no liens or encumbrances on the company’s assets, except for those that are disclosed in the notes to the financial statements.
-
We have recorded or disclosed, as appropriate, all liabilities, both actual and contingent, and have disclosed in the notes to the financial statements all guarantees that we have given to third parties.
-
We have no plans or intentions that may materially alter the carrying value and, where relevant, the fair value measurements or classification of assets or liabilities reflected in the financial statements.
-
We confirm we have no plans to abandon product lines or other plans that will result in any excess or obsolete stock.
ACCOUNTING ESTIMATES
- The methods, data and significant assumptions used by us in making accounting estimates, and their related disclosures, are appropriate to achieve recognition, measurement and disclosure that is reasonable in the context of the UK GAAP financial reporting framework.
SUBSEQUENT EVENTS
- We confirm that there have been no events since the balance sheet date which require disclosing or which would materially affect the amounts in the financial statements, other than those already disclosed or included in the financial statements.
LOANS AND ARRANGEMENTS
- We confirm that the company has not granted any advances or credits to or made guarantees on behalf of directors.
RELATED PARTIES
- Related party relationships and transactions have been appropriately accounted for and disclosed in the financial statements. We have disclosed to you all relevant information concerning such relationships and transactions and are not aware of any other matters which require disclosure in order to comply with the requirements of company law or accounting standards.
CAPITAL COMMITMENTS
- We confirm that the company has not contracted for any capital expenditure other than as disclosed in the financial statements.
LEGAL CLAIMS
- We confirm that we have disclosed to you all claims in connection with litigation that have been, or are expected to be received and such matters, as appropriate, have been properly accounted for and disclosed in the financial statements.
LAWS AND REGULATIONS
- Other than charity law and related regulation, we confirm that there are no other laws or regulations that are central to the company’s ability to conduct its business
INTERNAL CONTROLS AND FRAUD
-
We acknowledge our responsibility for the design, implementation and maintenance of internal controls to prevent and detect fraud and error. We confirm that we have disclosed to you the results of our own risk assessment that the financial statements may be materially misstated as a result of fraud.
-
We are not aware of any actual or suspected instances of fraud involving management or employees who have a significant role in internal control or that could have a material effect on the financial statements. We also confirm that we have disclosed to you all information in relation to allegations of fraud or suspected fraud affecting the company’s financial statements communicated by current or former employees, analysts, regulators or others.
GOING CONCERN
- We confirm that in our opinion the company’s financial statements should be prepared on a going concern basis on the grounds that the current and future sources of funding or support will be more than adequate for the company’s needs. We also confirm our plans for future action required to enable the company to continue as a going concern are feasible. We have considered a period of twelve months from the date of approval of the financial statements. We believe that no further disclosures relating to the company’s ability to continue as a going concern need to be made in the financial statements.
AUDIT ADJUSTMENTS
- There were no unadjusted items.
PUBLICATION OF FINANCIAL STATEMENTS
- We intend to distribute or publish the financial statements in electronic form.
CONTROLLING PARTY
- We confirm that the company’s ultimate controlling party is as disclosed in the financial statements.
DISCLOSURE OF INFORMATION TO AUDITORS
-
We acknowledge our legal responsibilities regarding disclosure of information to you as auditors and confirm that:
-
so far as each director is aware, there is no relevant audit information of which you as auditors are unaware, and
-
each director has taken all the steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that you are aware of that information.
Yours faithfully
Signed on behalf of the Board of Directors by:
Director…………………………………………………………………
Date………………………………………………………………….
Date of approval of the financial statements by the Board………………………..