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← The Reach Foundation

2023-08-31-accounts

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 2023

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 - 11
Trustees' Responsibilities Statement 12
Independent Auditor's Report on the Financial Statements 13 - 15
Statement of Financial Activities 16
Balance Sheet 17
Statement of Cash Flows 18
Notes to the Financial Statements 19 - 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 2023

Trustees J Baxter
N Jennings
J McGoh
T Roberts
J Tacon
M Trebilco
L Gledhill
A Mroz
N Anum
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 2023

The Trustees present their annual report together with the audited financial statements of the Charity for the year ended 31 August 2023. 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 charitable company 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) (effective 1 January 2015) as amended by Update Bulletins 1 and 2.

Page 2

(A Company Limited by Guarantee)

THE REACH FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

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

The Reach Foundation strives to ensure that every child can enjoy a life of choice and opportunity. To secure this, the Foundation is building individual, organisational and systemic capacity to deliver innovative, place-based models of ‘cradle to career’ support around the country—grounded in great schools.

Locally, in Feltham, the Foundation works in partnership with the local community, existing institutions and local professionals to deliver an integrated pipeline of support for children and families that complements the work of local schools. In 2018, the Foundation launched the Feltham Convening Partnership—a cross-sector community partnership to improve outcomes for babies, children and young people. Taken together, this represents our local ‘cradle to career’ model.

Building on the work in Feltham, the Foundation is now working with around 40 school trusts in England—from Teeside in the North East to Newquay in the South West—to establish the commitment, knowledge and conditions required for ‘cradle to career’ models to thrive elsewhere. The Foundation is building the organisational capacity required for schools and school trusts to design, develop and deliver these models through its ‘Cradle-to-Career Partnership and bespoke work with Trusts. Meanwhile, the Foundation is building the individual capacity to lead these models through a series of school and trust leadership programmes; now operational in three regions across England (East of England, South West, Yorkshire and the Humber).

The Foundation continues to foster innovation to ensure babies, children and young people growing up in communities, which have been historically underserved or disadvantaged, are better supported. Notably, this year, the Foundation launched ‘Languages for All’—a pilot programme to increase the number of students studying modern languages at A-Level and at university.

b. Strategies for achieving objectives

Starting in Feltham, the Charity seeks to enact systems change through local action. We identify and nurture community leaders who create the conditions for others to flourish. We have identified three necessary conditions that matter most to initiating and sustaining local action: people, place and partnerships.

We vigorously adapt what we do to anticipate and respond to the issues most affecting the people we serve. We have a commitment to, and track record in, bringing people and organisations together to incubate and scale innovative, high-impact solutions to system-wide challenges.

Page 3

THE REACH FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Objectives and activities (continued)

c. Activities undertaken to achieve objectives

In order to deepen our impact in Feltham, the Charity has:

To grow our impact beyond Feltham, the Charity has:

d. Grant-making policies

The Foundation does not currently make grants and therefore has not formulated a policy in this area.

e. Volunteers

The Reach Foundation is not currently working with any volunteers.

f. Main activities undertaken to further the Charity's purposes for the public benefit

Over the course of this year, the Foundation has:

Page 4

THE REACH FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Achievements and performance

a. Key performance indicators

Direct Delivery in Feltham

Collective Impact in Feltham

School and Trust Leadership Development Programmes

Cradle to Career Partnership

b. Review of activities

Reach Children’s Hub workstream highlights

Page 5

THE REACH FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Achievements and performance (continued)

As planned, Oak National Academy transitioned out of the Foundation on the 31st August 2022 to become an Arms Length Body. As a result of this planned change, this year has seen a significant drop in income, expenditure and headcount.

Feltham Convening Partnership

Our Evaluation Partner, Kingston University, produced an interim Progress Report (due for publication in September 2023) which was informed by qualitative and quantitative evidence collected throughout the year: 32 Partners completed a survey, an additional 14 Partners were interviewed and focus groups were conducted with 12 Young Leaders.

Highlights:

The level of engagement in the Partnership has increased over the past year, with particular growth in engagement of young people and local primary schools. This engagement has developed across two dimensions: developing existing relationships and building new connections, bringing new cross-sector Partners into the work. The impact of stronger relationships means that Partners are more closely aligning their goals and exploring the challenges they face together. There is an increased amount of collaborative activity taking place outside the formal structures of FCP, which is a clear indicator of how FCP is catalysing wider systems change.

Page 6

(A Company Limited by Guarantee)

THE REACH FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Achievements and performance (continued)

Challenges:

Despite the reported success of increased collaboration amongst Partners, the rigid Working Group structure can act as a barrier to greater collaboration, so we are planning to explore different convening formats from September 2023. Whilst there is clear evidence of how resources are being shared across FCP in service of the intermediate and long-term goals, these resources do not currently include finances or resources linked directly to teaching and learning. This links to the issue around shared data and the different types of data that are more readily shared across institutions - and those that aren’t. However, it is encouraging that the majority of Partners feel there has been a shift in attitudes about sharing data so this will also be a focus for next year.

School and Trust leadership development programmes

Recognising the crucial role played by school and Trust leaders in enabling all children to enjoy lives of choice and opportunity, we placed significant energy in 2022/23 towards growing our leadership development offer. Having worked with a group of partner school Trusts to develop and trial the SW100 (a leadership development model grounded in strong commitment to children experiencing disadvantage; strong regional and local contextual understanding; and a very strong relationships between cohort members) we are now set-up for national growth (with Yorks100 and West100 programmes launching in September 2023).

We have also been able to build on learning from the SW100 to build LeadingTrusts, a programme for aspiring school Trust CEOs. Like SW100, the programme will be locally rooted and nationally connected and build strong relationships between participants such that they are set-up to become breakthrough Trust CEOs.

Cradle to Career Partnership

Over the course of 2022/23, we were able to support our 13 Cradle to Career Partners to make substantial progress in the development of their Cradle to Career models of support. We saw partners instigate new ways of working with families (leading to a significant improvement in attendance); build partnerships with local community centres; and build relationships between staff across phases of education - leading to a more coherent educational offer. In some cases, partners have hired staff members to lead their community engagement work and/ or launched charitable Foundations to further support their communities.

We also recruited an additional 17 schools or groups of schools to join the Cradle to Career in September 2024, creating an overall partnership of 30 partners from Middlesbrough in the North East to Newquay in the South West.

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. The Trust awarded ten bursaries to nontraditional entrants into the teaching profession.

Page 7

THE REACH FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Achievements and performance (continued)

c. Fundraising activities and income generation

We have not undertaken any direct fundraising from the general public. Our funding is primarily derived from income earned from delivering our programmes, 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 2023.

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.

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.

Page 8

THE REACH FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Structure, governance and management (continued)

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 on boarding process the Trustees receive a governance handbook and induction pack from the Clerk. 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 Director of the Reach Children’s Hub 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.

Page 9

THE REACH FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Plans for future periods

Reach Children’s Hub and Feltham Convening Partnership

Our main priority for the coming year is to successfully deliver our commissioned work for the London Borough of Hounslow’s Family Hubs model, and contribute as required to the evaluation process and sustainability of the policy (beyond the current 2025 deadline).

Next year will also see the end of our long-term partnership with Save the Children UK, so we will be evaluating the 5 year Early Learning Community initiative, sharing learnings across our professional networks and celebrating its success with local stakeholders and funders.

We will also be completing the 2nd and final year of the Specialist Home Engagement Leads programme, which we deliver on behalf of Hounslow Education Partnership (HEP). The priority will be to support the successful completion of this programme for the five local schools involved, and work with HEP and the Local Authority’s Early Help team to ensure its legacy is sustained.

We continue to work in partnership with Kingston University and will be focused on launching the first cohort of SEN in Practice Foundation Degree students, with a new teaching team.

We also remain focused on securing political and financial support for a youth zone in Feltham, and will continue to campaign through our Citizens UK alliances and local networks.

School and Trust Leadership Programme s

During the 2023/24 academic year, we will:

Cradle to Career Partnerships

During the 2023/24 academic year, we will:

Members' liability

The Members of the Charity guarantee to contribute an amount not exceeding £1 to the assets of the Charity in the event of winding up.

Page 10

THE REACH FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Disclosure of information to auditor

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

Approved by order of the members of the board of Trustees and signed on their behalf by:

==> picture [69 x 36] intentionally omitted <==

................................................ J McGoh Trustee Date: 29 May 2024

Page 11

THE REACH FOUNDATION

(A Company Limited by Guarantee)

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2023

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:

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:

==> picture [65 x 35] intentionally omitted <==

................................................ J McGoh Trustee Date: 29 May 2024

Page 12

(A Company Limited by Guarantee)

THE REACH FOUNDATION

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 2023 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:

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.

Page 13

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:

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.

Page 14

(A Company Limited by Guarantee)

THE REACH FOUNDATION

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:

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

29 May 2024

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.

Page 15

(A Company Limited by Guarantee)

THE REACH FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2023

Note
Income from:
Donations and legacies
3
Charitable activities
4
Total income
Expenditure on:
Charitable activities
6
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2023
£
20,298
1,697,523
1,717,821
1,721,520
1,721,520
(3,699)
1,378,994
(3,699)
1,375,295		 Restricted
funds
2023
£
-
626,966
626,966
1,147,663
1,147,663
(520,697)
735,293
(520,697)
214,596		 Total
funds
2023
£
20,298
2,324,489
2,344,787
2,869,183
2,869,183
(524,396)
2,114,287
(524,396)
1,589,891		 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

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 19 to 30 form part of these financial statements.

Page 16

THE REACH FOUNDATION (A Company Limited by Guarantee) REGISTERED NUMBER: 06546261

BALANCE SHEET AS AT 31 AUGUST 2023

Note
Current assets
Debtors
11
Cash at bank and in hand
17
Creditors: amounts falling due within one
year
12
Net current assets
Total net assets
Charity funds
Restricted funds
14
Unrestricted funds
14
Total funds		 340,589
1,492,509
1,833,098
(243,207)		 2023
£
1,589,891
1,589,891
214,596
1,375,295
1,589,891		 2,016,849
1,449,988
3,466,837
(1,352,550)		 2022 (as
restated)
£
2,114,287
2,114,287
735,293
1,378,994
2,114,287

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:

==> picture [75 x 39] intentionally omitted <==

................................................ J McGoh Trustee Date: 29 May 2024

The notes on pages 19 to 30 form part of these financial statements.

Page 17

THE REACH FOUNDATION

(A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2023

Note
Cash flows from operating activities
Net cash used in operating activities
16
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
17
The notes on pages 19 to 30 form part of these financial statements		 2023
£
42,521
42,521
1,449,988
1,492,509		 2022
£
684,644
684,644
765,344
1,449,988

Page 18

THE REACH FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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 19

THE REACH FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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 20

THE REACH FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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 11. 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 12. 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.

3. Income from donations and legacies

Unrestricted Total Total
funds funds funds
2023 2023 2022
£ £ £
Donations 20,298 20,298 -

Page 21

(A Company Limited by Guarantee)

THE REACH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

4. Income from charitable activities

Unrestricted
funds
2023
£
Charitable activities
1,697,523
Unrestricted
funds
2022
£
Charitable activities
1,582,597		 Restricted
funds
2023
£
626,966
Restricted
funds
2022
£
5,155,874		 Total
funds
2023
£
2,324,489
Total
funds
2022
£
6,738,471

5. Income from charitable activities - by type

Unrestricted
funds
2023
£
Grants
1,212,677
Consultancy Income
-
Coaching courses
484,846
Other self generated income
-
1,697,523
Unrestricted
funds
2022
£
Grants
1,359,203
Consultancy Income
20,581
Coaching courses
127,213
Other self generated income
75,600
1,582,597		 Restricted
funds
2023
£
547,366
-
79,600
-
626,966
Restricted
funds
2022
£
5,049,103
104,921
1,850
-
5,155,874		 Total
funds
2023
£
1,760,043
-
564,446
-
2,324,489
Total
funds
2022
£
6,408,306
125,502
129,063
75,600
6,738,471

Page 22

(A Company Limited by Guarantee)

THE REACH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

6. Analysis of expenditure on charitable activities - by fund

Unrestricted
funds
2023
£
Charitable activities
1,721,520
Unrestricted
funds
2022
£
Charitable activities
1,035,746		 Restricted
funds
2023
£
1,147,663
Restricted
funds
2022
£
5,115,549		 Total
2023
£
2,869,183
Total
2022
£
6,151,295

Page 23

(A Company Limited by Guarantee)

THE REACH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

7. Analysis of expenditure on charitable activities - by type

Charitable activities
Charitable activities
Analysis of support costs
Office costs
Other support costs
Governance costs
Total 2023		 Activities
undertaken
directly
2023
£
2,665,211
Activities
undertaken
directly
2022
£
5,738,875		 Support
costs
2023
£
203,972
Support
costs
2022
£
412,420
Total
funds
2023
£
184,529
4,739
14,704
203,972		 Total
funds
2023
£
2,869,183
Total
funds
2022
£
6,151,295
Total
funds
2022
£
103,314
299,306
9,800
412,420

Other support costs of £4,739 (2022 - £299,306) includes £nil (2022 - £289,484) which relates to Oak National Academy and £4,739 (2022 - £9,822) which relates to Reach Foundation.

Page 24

(A Company Limited by Guarantee)

THE REACH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

8. Auditor's remuneration

2023 2022
£ £
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts 7,500 6,500
Fees payable to the Charity's auditor in respect of:
All non-audit services not included above 1,500 1,000

9. Staff costs

Wages and salaries
Social security costs
Pension costs		 2023
£
588,354
96,005
96,086
780,445		 2022
£
2,435,617
285,633
265,620
2,986,870

The average number of persons employed by the Charity during the year was as follows:

2023 2022
No. No.
Employees 19 51

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2023 2022
No. No.
In the band £60,001 - £70,000 2 -
In the band £70,001 - £80,000 - 4
In the band £80,001 - £90,000 2 5
In the band £90,001 - £100,000 1 3

Of the above, the following pertained to Oak National Academy:

£60,001 - £70,000 - 0 (2022 - 0) £70,001 - £80,000 - 0 (2022 - 4) £80,001 - £90,000 - 0 (2022 - 3) £90,001 - £100,000 - 0 (2022 - 2)

Page 25

(A Company Limited by Guarantee)

THE REACH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2022 - £NIL) .

During the year ended 31 August 2023, no Trustee expenses have been incurred (2022 - £NIL).

11. Debtors

Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 2023
£
231,493
6,633
102,463
340,589		 2022
£
311,556
-
1,705,293
2,016,849

Of the above, the following pertained to Oak National Academy:

Accrued income - £Nil (2022 - £1,612,645)

12. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 2023
£
92,691
26,380
8,373
115,763
243,207		 2022
£
58,776
91,686
5,353
1,196,735
1,352,550

Of the above, the following pertained to Oak National Academy:

Accruals and deferred income - £Nil (2022 - £1,089,417)

13. Prior year reclassification

In the prior year restricted funds were misstated in respect of the Oak Academy - DFE amount whereby expenditure should have been £690,711 lower and unrestricted expenditure should have been £690,711 higher. As a result closing restricted funds at 31 August 2022 have been increased to £735,293 and closing unrestricted funds at 31 August 2022 have been reduced to £1,378,994.

Page 26

(A Company Limited by Guarantee)

THE REACH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

14.
Statement of funds
Statement of funds - current year
Unrestricted funds
General funds
Restricted funds
Oak Academy - DfE
Save the Children
Other restricted funding
The 88 Foundation RAF teaching training
burseries
Feltham and related local authority projects
SHEL Project
Total of funds		 Balance at 1
September
2022
£
1,378,994
690,711
-
44,582
-
-
-
735,293
2,114,287		 Income
£
1,717,821
-
293,250
-
50,000
254,116
29,600
626,966
2,344,787		 Expenditure
£
(1,721,520)
(690,711)
(293,250)
(24,563)
(48,666)
(90,473)
-
(1,147,663)
(2,869,183)		 Balance at
31 August
2023
£
1,375,295
-
-
20,019
1,334
163,643
29,600
214,596
1,589,891

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 until 1 September 2022 when the Oak National Academy operation was transferred from the Foundation to a new independent arm's length body of the Department of Education.

Page 27

(A Company Limited by Guarantee)

THE REACH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

14. Statement of funds (continued)

Statement of funds - prior year

Balance at
1 September
2021
£
Income
£
Unrestricted funds
General funds
1,522,854
1,582,597
Restricted funds
Oak Academy - DfE
-
4,688,471
Save the Children
-
313,068
Coaching Collective
-
1,850
Other restricted funding
4,257
152,485
4,257
5,155,874
Total of funds
1,527,111
6,738,471
Further breakdown of the Oak Academy expenditure is as follows:		 Expenditure
£
(1,726,457)
(3,997,760)
(313,068)
(1,850)
(112,160)
(4,424,838)
(6,151,295)		 Balance at
31 August
2022 (as
restated)
£
1,378,994
690,711
-
-
44,582
735,293
2,114,287
Lesson development
Platform development
School support and sector engagement
IT and other costs
Professional costs		 2023
£
690,711
-
-
-
-
690,711		 2022
£
1,761,389
758,206
297,761
119,682
110,563
3,047,601

Page 28

(A Company Limited by Guarantee)

THE REACH FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

15. Analysis of net assets between funds Analysis of net assets between funds - current year

Unrestricted
funds
2023
£
Current assets
1,618,502
Creditors due within one year
(243,207)
Total
1,375,295		 Restricted
funds
2023
£
214,596
-
214,596		 Total
funds
2023
£
1,833,098
(243,207)
1,589,891

16. 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
Increase/(decrease) in creditors
Net cash provided by operating activities
17.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents		 2023
£
(524,396)
1,676,260
(1,109,343)
42,521
2023
£
1,492,509
1,492,509		 2022
£
587,176
(830,537)
928,005
684,644
2022
£
1,449,988
1,449,988

Page 29

THE REACH FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

18. Analysis of changes in net debt

Cash at bank and in hand At 1
September
2022
£
1,449,988
1,449,988		 Cash flows
At 31
August 2023
£
£
42,521
1,492,509
42,521
1,492,509		 Cash flows
At 31
August 2023
£
£
42,521
1,492,509
42,521
1,492,509
1,492,509

19. 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 £96,086 (2022 - £265,620) . Contributions of £14,255 (2022 - £32,733) were payable to the fund at the Balance Sheet date and are included in creditors.

20. Operating lease commitments

At 31 August 2023 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		 2023
£
32,000
24,000
56,000		 2022
£
32,000
56,000
88,000

21. 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 £350,000 ( 2022 - £199,436 ) 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.

Page 30