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2022-08-31-accounts

Company registration number: 06895421 Charity registration number: 1130309 and SC041036

Read for Good

(A company limited by guarantee)

Annual Report and Financial Statements

for the Year Ended 31 August 2022

Read for Good

Contents

Reference and Administrative Details 1
Trustees' Report 2 to 9
Statement of Trustees' Responsibilities 10
Independent Auditors' Report 11 to 13
Statement of Financial Activities 14
Balance Sheet 15
Statement of Cash Flows 16
Notes to the Financial Statements 17 to 26

Read for Good

Reference and Administrative Details

Chairman Mr Kevin Underwood Chief Executive Officer Ms Justine Daniels Trustees Ms Anne Everall Mr Stephen Morgan Ms Helen West Ms Rachel Bolton Ms Paula Regan Mr Kevin Underwood Principal Office 26 Nailsworth Mills Avening Road Nailsworth Gloucestershire GL6 0BS The charity is incorporated in United Kingdom. Company Registration Number 06895421 Charity Registration Number 1130309 and SC041036 Bankers Co-Operative Bank 1 Balloon Street Manchester M60 4EP Auditor Hazlewoods LLP Staverton Court Staverton Cheltenham GL51 0UX

Page 1

Read for Good

Trustees' Report

The Trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 31 August 2022.

Trustees

Ms Anne Everall

Mr Stephen Morgan

Mr Michael Walker (resigned 6 November 2022)

Ms Helen West

Ms Rachel Bolton

Ms Paula Regan (appointed 7 December 2021)

Mr Kevin Underwood (appointed 7 October 2022)

In shaping our objectives for the year and planning our activities, the Trustees have considered the Charity Commission’s guidance on public benefit.

Reading - why our work matters

Reading is nothing short of life changing

Reading for pleasure is not just a pastime and it should never be just a ‘nice-to-have’. Reading for pleasure is one of the most accessible, cost-effective and powerful ways that a child can improve their own future.

The benefits are far-reaching: in the long-term, a child who reads for pleasure is more likely to have improved academic results, a higher paying job and better health and well-being; in the short-term, they will have improved vocabulary, increased empathy and understanding of the world, a tool they can readily use to reduce their stress and anxiety, and access to much-needed escapism, away from life’s digital demands.

Whilst we face the economic challenges ahead, where providing food and heating will be difficult for many, we should not overlook or dismiss the power a book can have to support a child's educational success and mental health.

In today’s challenging world, we should all be encouraging our children to pick up a book and to share a story, as the results can be profound.

Read for Good’s role

In the last decade, built on nearly 40 years’ worth of experience, Read for Good has transformed how we work, ensuring our programmes and resources are as relevant, useful and effective as possible for the parents and professionals working with children whom we support.

Our small team delivers effectively and efficiently, well-governed by our Board of Trustees, and supported by our freelance professional storytellers and a team of regular volunteers. We value collaborating with expert partners to augment the work we do. We pride ourselves on ‘punching above our weight’ and ensuring exceptional value for money. We work with agility and ambition to deliver pragmatic solutions.

Whilst there are ever-more distractions from reading, Read for Good will work ever-harder to develop accessible, effective, creative tools and resources to motivate young people to read, and to ensure that children can access the very best books and stories, in turn fostering a life-long love of reading.

Page 2

Read for Good

Trustees' Report

Read for Good's activities for achieving objectives

In schools

Supporting children and young people to love reading is at the heart of Read for Good. Our tried and tested Readathon® harnesses children’s empathetic nature, motivating them to read as much as they can because the sponsorship money they raise helps to buy new books and storyteller visits for children in hospital.

Combined with free resources for teachers, amazing author and illustrator events, and brand new books for the school library, Readathon offers schools a complete package of support for children to develop a positive reading habit.

In 2021-2022, Read for Good:

●Provided resources for 1,246 schools to run Readathon with approximately 400,000 pupils;

●Provided £73,364 worth of free book vouchers in partnership with Scholastic Book Clubs;

●In partnership with National Book Tokens, provided £10,020 of Book Tokens to pupils taking part in Readathon;

●Gave over £55,000 worth of books to schools in desperate need of high-quality reading for pleasure books for their schools through our Brilliant Box of Books programme;

●Hosted an exclusive event with Michael Rosen, reaching over 120,000 children with a positive message about reading for pleasure;

●Provided free access to Track My Read® - a web-based app designed to motivate pupils to read daily, while providing essential reading behaviour insights and choices for teachers, librarians, schools and parents;

●Curated and maintained first class reading content and resources for schools and pupils at home delivered via an engaging communications programme;

●Provided book recommendations to support teachers, librarians, parents and pupils in their book reading choices;

●Hosted a special event for Readathon schools showcasing a variety of leading authors and illustrators to get children excited about reading;

●And beamed Bear Grylls to a winning school delighting pupils and teachers alike with his inspiring messages!

Page 3

Read for Good

Trustees' Report

In hospitals

Children in hospital risk double jeopardy - suffering not only from illness or injury, but also from the consequences of educational deprivation. Research shows that reading for pleasure can improve all academic results, and our unique service in hospitals helps to maintain education standards.

Whilst life in many places has returned to normal since the pandemic, COVID-19 has continued to have an impact on our work in hospitals. Throughout 2021-2022, many of the 30 hospitals in which we work continued to operate under stringent protocols to prevent the spread of disease. This meant our storytelling programme was offered as a mix of in-person and virtual storytelling. Where possible, our team of professional storytellers visited children in hospital in person, bringing much-valued face-to-face experiences, supported by virtual visits where necessary.

However, rather than present virtual visits as somehow ‘second best’, our storytelling team embraced the benefits of the virtual visit - using the computer’s camera alongside props, pictures and performance to create visuallyand aurally-captivating stories. We’ve learnt that our virtual storytelling visits can bring together children who would otherwise be isolated in hospital, helping them feel less alone.

Our books remain an important source of entertainment, distraction and comfort in hospitals, allowing children to exercise choice and providing a much-needed escape from all that’s going on around them.

Our appealing bookcases are accessible in most hospitals throughout the year, 24 hours a day, often when few other services are available, helping children and their parents cope in the most distressing of circumstances.

In February 2022, Read for Good ran our first BBC Radio 4 Appeal, spotlighting the story of William, as spoken by his mum, Hannah. Hannah movingly shared with the nation how Read for Good’s books and stories helped her teenage son, William, and his family, cope with his shocking cancer diagnosis and treatment. We partnered with National Book Tokens and the Booksellers Association who generously match-funded the Appeal, and together we optimised the reach and impact of Hannah’s message.

We leveraged the Appeal not only as an important fundraising opportunity, but also as a chance to promote the profound impact that books and stories can have on a child’s life.

In 2021-2022, Read for Good continued to support seriously ill children in the UK's 30 major children's hospitals, from Aberdeen to Truro, Belfast to Norwich, with:

• 160 days (103 in person; 57 virtual) of magical, professional storytelling sessions.

In total this year, our books and stories reached around 30,000 of the UK's most seriously ill children and their families.

Page 4

Read for Good

Trustees' Report

In communities

Citywide programme: Our citywide programmes bring the best of both Readathon and the hospital programme together; harnessing the enthusiasm of whole communities around a major children’s hospital, to inspire children and young people to read for pleasure. Local partner organisations are engaged, resources are tailored to the localised need, and special author and illustrator events are provided to those in school, in home and in hospital, to create a real buzz about reading, and inspiring children to read for pleasure across whole communities.

The planned programme of citywides was disrupted by COVID-19, but we were pleased to get back on track with the fourth Liverpool Readathon in Spring 2022.

●Schools across the city smashed the Two Million Minute Reading Challenge - using our new free digital web-based app Track My Read:

●On World Book Day schools, communities and workplaces took part in a Drop Everything and Read (DEAR), creating a wonderful campaign ‘moment’ that united the city;

●We ran online author events with Emma Carroll, Sarah McIntyre and Philip Reeve, inspiring more than 6,000 children;

●In partnership with World Book Day, we distributed 3,000 World Book Day £1 books directly to pupils in schools removing the barrier of visiting a bookshop;

●50 targeted schools received a Brilliant Box of Books to kickstart their reading and contributed to almost £19,000 worth of books and vouchers donated to the most disadvantaged schools, boosting school libraries with books that pupils want to read.

We will be working in the city of Leicester in Spring 2023, bringing together a raft of reading tools and resources, author events and communications support to help schools, families and the community to support reading for pleasure.

Having launched READ Gloucestershire in early 2021 just as another Covid lockdown took a grip, we are delighted to be revitalising it in a sustained three-year programme to improve children’s reading rates throughout the county.

Disadvantaged and marginalised groups: In 2021-2022 we sought ways in which we could help schools and medical settings that fall outside of the mainstream to access our tools and resources, adapting them to meet the specific needs of the children they serve. Often the children and young people in their care are some of the most marginalised and disadvantaged members of society - unable to access mainstream services and education. This important pilot work continues into 2022-2023, when we plan to showcase the results, case studies, tailored resources and tools on our website for other similar settings to access.

In addition, we invite any setting working with children to apply for one of our Brilliant Boxes of Books - a selection of targeted and curated books provided to settings in need throughout the year.

Looking ahead

Today, the founding principles of Read for Good - building a love of reading through choice, freedom and motivation - remain as relevant as ever. Read for Good is well positioned to build upon our expertise in reading for pleasure, to reach even more children and young people with pragmatic and effective programmes.

Read for Good’s programmes contribute to six of the UN Sustainable Development Goals, which acknowledge that ending poverty goes “hand-in-hand with strategies that improve health and education, [and] reduce inequality”. Our mission for every child in the UK to fulfil their potential through the many benefits of reading for pleasure has become even more urgent; success will in turn improve economic stability and social equality.

This is why Read for Good is determined to champion the importance of reading for pleasure, working harder than ever to ensure we give our children the very best chances in life.

Page 5

Read for Good

Trustees' Report

With thanks to our supporters

We are incredibly grateful to the schools running Readathon, and the friends and families who support participating pupils, as well as individual givers, corporate supporters and trusts and foundations who give generously to make our work possible.

In 2021/22 we received 84 grants under £5,000 from a wide range of grant making trusts and foundations across the UK. These smaller gifts are the lifeblood of our hospital programme and many are restricted to particular geographical areas. Just three or four smaller grants can fund the programme in one hospital for an entire year, reaching a minimum of 1,000 children, and we are extremely grateful to these funders. A number of trusts also fund us year on year, and we value these long-standing relationships enormously. Whilst we can’t acknowledge all 84 funders in this report please know that if you are one of them, or have asked to remain anonymous, we couldn't run the hospital programme without you and we are hugely appreciative of your kind support. Thank you.

We would like to extend a special thank you to the following trusts, foundations, corporate partners and individuals who have given grants or donations of £5,000 or more this year, some of which has been carried forward to be spent in the following year:

BBC Children In Need Postcode Community Trust The Hugh Fraser Foundation
Claire Woodhouse Richard Brooks The Jones 1986 Charitable
Trust
Edith Murphy Foundation The Canbrick Charitable Trust The Lawson Settlement Trust
Inclusive Books for Children The Chalk Cliff Trust The Notgrove Trust
Jennifer Hayward and Richard
Waite		 The Claire Milne Trust The Souter Charitable Trust
Literacy Capital plc The Edward Gostling
Foundation		 The Taylor Family Foundation
National Book Tokens and The
Booksellers Association		 The Edwina Dunn and Clive
Humby Educational Foundation		 Ulster Garden Villages Ltd
Newby Trust The Eveson Trust Unum Community Fund
Pilkington Charities' Fund The Halbard Charitable Trust

Read for Good has also been long supported by National Book Tokens who provide £10 worth of National Book Tokens for each participating Readathon school. This year, National Book Tokens and the Booksellers Association lent their substantial weight to our BBC Radio 4 Appeal, supporting it financially and by building awareness of the Appeal, contributing significantly to its success.

Free book vouchers to the face value of £73,364 were given to schools in the UK to spend on books. The cost of these vouchers was shared equally with Scholastic Book Clubs. The value of this year’s vouchers has been included in the Statement of Financial Activities as a donation in and out.

We continue to be incredibly proud of our long-standing partnerships, which help us to reach more children, with greater impact. We are thankful to our partners, including Scholastic Book Clubs, National Book Tokens, Oscar's Book Prize and World Book Day for their continued support. In addition, we appreciate the generous support received from a wide variety of publishers, authors and illustrators who partner with us, promote our work and provide gifts in kind through book donations and events.

Page 6

Read for Good

Trustees' Report

Financial review

Policy on reserves

Reserves at 31 August 2022 include £193,673 (2021: £nil) restricted by donors for specific projects and £55,512 (2021: £66,894) in relation to tangible fixed assets held by the Charity. Read for Good has designated £134,650 (2021: £100,000) to deliver specific projects in 2022/2023 including the provision of 120 Brilliant Boxes of Books to settings in need, provision for book vouchers for schools, continued development of training films and resources to support parents, carers and professionals working with children, and improvements to streamline donor payment processes. This leaves free reserves of £587,819, which is in line with our reserves policy.

The Charity has purposefully made efforts to bring forward fundraising to enable the delivery of more strategic and ambitious programmes in the year ahead. This has the effect of increasing the levels of restricted funds and is a prudent response to the increasing uncertainties of the economic climate.

The Trustees review the level of reserves at least annually. Because the charity relies entirely on donations, and given the likely impact of the cost of living crisis on top of the pandemic, the current level of free reserves of approximately £600,000 is appropriate; this will represent approximately 7 months' worth of operating costs in 2022-2023.

Principal funding sources

The principal funding source is voluntary income from a combination of donations from members of the public, primarily through Readathon®, and grants from trusts and foundations.

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.

Structure, governance and management

Nature of governing document

Read for Good is registered as a Charitable Company limited by guarantee and was set up by a Memorandum and Articles of Association on 5 May 2009, as amended by a special resolution on 11 June 2009.

The charity registered with the Charity Commission on 24 June 2009 and with the Office of the Scottish Charity Regulator (OSCR) on 17 November 2009.

The name of the Charity was changed from Readathon to Read for Good by a resolution on 11 November 2010.

Recruitment and appointment 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.

Induction and training of Trustees

The Board of Trustees constantly reviews the number of Trustees and recruits when required. Any new Trustees will have their responsibilities explained by the existing Trustees and other professional advisors as appropriate.

Organisational structure

As previously stated, the business of the Charity is conducted by the Board of Trustees which has legal responsibility for the organisation. Decisions are made collectively by the Board of Trustees which meets at least four times per annum. The day to day management of the Charity is delegated to the Chief Executive Officer and through her, the members of the staff team. The team works to deliver Read for Good's agreed strategic plan and targets, which are aligned to its core aims and objectives ensuring its current activities have maximum relevance and impact.

Page 7

Read for Good

Trustees' Report

Pay policy for senior staff

The pay of the senior staff is reviewed annually, along with that of all employees, and normally increased in accordance with inflation and annual earnings.

Pay benchmarking is carried out as part of the recruitment of new posts through internet searching for similar posts and discussion with sector specialists.

Fundraising approach

Fundraising is essential for Read for Good’s charitable delivery. Donors can be assured that Read for Good complies with the regulatory standards for fundraising. We are registered with the Fundraising Regulator and are committed to the Fundraising Promise and adherence to the Code of Fundraising Practice. There were no compliance issues during the course of the year.

Following a specific strategy to diversify our sources of income over recent years, Read for Good has a healthy mix of income from a variety of sources, boosted this year by our BBC Radio 4 Appeal. We continue to seek increased fundraising support from corporate and individual donors.

We monitor and review our fundraising practices, maintain training for staff, and work hard to comply with current guidance and best practice. The majority of our fundraising is carried out by in-house fundraisers employed by Read for Good; on occasion, we work with, and closely monitor, professional fundraisers governed by a contract in line with the Code of Fundraising Practice. We do not conduct telephone or door-to-door fundraising. Where appropriate we have Commercial Participator Agreements in place. We ensure that our fundraising approach is appropriate for our audiences and always protecting the public. We welcome feedback and input from our donors, of any size, and operate a first-class stewardship programme for all donors to thank them and engage them further in our work.

We remain incredibly grateful to the schools and pupils running Readathon®, and to their families and friends, the trusts and foundations, organisations and individuals who support our work financially.

Our website outlines our Complaints Policy for the public and clearly explains how an individual can complain. We received zero complaints relating to fundraising in the financial year (2021: zero).

We acknowledge all complaints within two working days and respond in full within four weeks. Complaints are dealt with in-line with our Complaints Policy. The most serious complaints are escalated to the CEO or Chair of the Board of Trustees.

Read for Good endeavours to assist its supporters to make an informed decision about the support they choose to give us. We do not accept donations where we have reason to believe that the donor may be experiencing vulnerable circumstances and accepting the donation would be ethically wrong and/or harmful to the donor.

Our Safeguarding Policy is available on our website and reviewed annually. Safeguarding is discussed at each Board meeting.

Read for Good®, Readathon® and Track My Read® are registered trademarks of Read for Good.

Page 8

Read for Good Trustees. Report Volunteers We are en￿MOUS1Y gratelul to the team of regular volunteers who support our work In addibon to Ihe seNice provided by our TNstees, during 21r22 our volunteers donated 535 hours of time foss the year, despite the conb"nuerJ ¢hallenge of Covid. INe have arwnd ten vdunteers. ￿ more than half of Ihem giving their time regularty at our offi¢e in Nailsw¢Jth. Thank y￿j to all ol oui volunteers for their valuable Major rlsks and management of those rlsks Fin8ncial risk The Trustees are satisfied thal there are ade¢wale contrd syste￿￿ in ￿a¢e to provide reasonable assurance against misstaternent or loss. These include a strate9ic bu%ness plan reviewed by Ihe Trustees regulady, rnonthly reviews of performance ag•nst tsrgets. monthly bvd9el reconcilia"ons, ￿le98b'On of aulhority to spend wthin defined limrts and segregation of <th"es where appropriate. Other extemd risk5 to whKh Ihe Charity rnay be exposed are identified and discussed at regular Tntstee meelings any appropnale actions iwpl8m8nt8d. Plans for future pertods As the county recovers from Ihe ongoing effects of the pa)denNc. n¢)w faces conbnued uncertainty vrith the cost of living Cri￿$, Read for Good is fo¢used on conb"nuing to dÈvelop programmes that help prOfes￿on￿lS and parents to pnoritise re8ding for plea￿re. ensuring that the (th"on's children can experience Ihe many, and life-long, benefits of reading lor pleasure. It is incumbent on us to enwre we ¢onb'nue to h8ve a well-governed. well-5trudured organisal.on that is equipped lo iespond to the urgent needs. Dlsclosure ol Informatloft to audltor Eth Trustee has taken steps that they ought to have tsken as a Trustee in order to rnake themselves aware of any relevant audit lnf0rrnab.￿ to eslablish that the charitys au¢&tor is •are of that informa"on. The Trustees confirm that1he￿ is no relevrt infi)m)abon that they know of and of they know the audttor is unawe. Reappointment of audltor The auditors. Hazlewoods LLP, have inthcated their willingness to contiwe in office. The desiwated Trustee5 will propose a motion re8ppoinb.ng the auditors at a rneets.ng ofthe Trustees. The an ort was apwoved by Ihe Twstees ofthe iarity c￿. . and sgned on its beh4f by. Mr Kevin Underwood Chairman and Trustee Page 9

Read for Good Statement of Trustees. Responsibilities The Trustees (who are also the d'rector5 of Read for Good for Ihe pu￿05e$ of company lawl ¥e Tespon&ble for preparing the ' report and the finanu4 statements in xcord¢e vAth the United lfjngdom A(tounting Stsndards (United ￿ngdoM Generally Accepted A¢¢ounbng Prthl and app1￿&11e law regUl￿"On$. Cofrpany law requires the Trustees to prepare fin￿CId statements for exh finanoal year. Under ¢ornpany law the Trustees must not apwove Ihe ffinan¢ial ststements unless Ihey are satisfied that they gve a true and fair ew of the ststs of affai￿ of the charitable ¢onwany and of it5 incofftng reswrces and application of resour￿, including its income and expend'ture. for that period. In prep￿n9 these financial statements, the Trustees are required to.. sele¢tsuitable acc¢Junting pdicaes and appty U)em conystenty. observe the methods and pnnoples in the Charities SORP". make judgements e$￿'￿￿teS Ihat are ieasonaNe and prudent state whether applicable UK Accwnbng Standard5 have been followed. subjed to any material departures disclosed and explained in the finanuJ statements." prepare the financi￿ statements on the going concem bags unless it is inappropriate to pregjme Ihat the charitable conpany will continue in bu&ness. The fru5tees are responsible for keeping adequate acc¢JUn￿.ng fe¢ords that ¥e gJffi¢ient to show and explain Ihe tharit8ble cOr￿)￿Y'S transactsons and disclose with reasonable x¢urw at any b.rne the fina￿#81 positon of Ihe charitable ¢ompany an¢J enable them to enyJre that the fin￿cIal statements conyly ith the Cornpanies A¢t 2fKJ6. They are also respongble for safeguarth.ng the assets of the thantable ¢ornpany and hence for taknng reasonable $t8psfor the wevenbon and detedion of fraud Olher irrewlwti'e$. ro dbytheT tees of the charty on_ nd signed on its behalf by.. vin Unde￿ood Chaim)an and Trustee Page 10

Read for Good

Independent Auditor's Report to the Members of Read for Good

Opinion

We have audited the financial statements of Read for Good (the 'charity') for the year ended 31 August 2022, which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).

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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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 original financial statements were 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 Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page 11

Read for Good

Independent Auditor's Report to the Members of Read for Good

Opinion on other matters prescribed by the Companies Act 2006

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Statement of Trustees' Responsibilities (set out on page 10), the Trustees 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 charity'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’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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.

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:

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

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Read for Good

Independent Auditor's Report to the Members of Read for Good

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.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charitable company's Trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's Trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. 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 charitable company and its Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

...................................... Scott Lawrence (Senior Statutory Auditor) For and on behalf of Hazlewoods LLP, Statutory Auditor

Staverton Court Staverton Cheltenham GL51 0UX

Date:............................. 13/12/2022

Page 13

Read for Good

Statement of Financial Activities for the Year Ended 31 August 2022 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Investment income
4
Total income
Expenditure on:
Raising funds
5
Charitable activities
6
Total expenditure
Net income
Other recognised gains and losses
Other gains/losses
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
Note
Income and Endowments from:
Donations and legacies
3
Investment income
4
Total income
Expenditure on:
Raising funds
5
Charitable activities
6
Total expenditure
Net income
Other recognised gains and losses
Other gains/losses
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£
592,308
2,960
595,268
(77,280)
(514,557)
(591,837)
3,431
(7)
3,424
774,557
777,981
Unrestricted
funds
£
388,822
4,505
393,327
(37,454)
(241,076)
(278,530)
114,797
68
114,865
659,692
774,557		 Unrestricted
funds
£
592,308
2,960		 Restricted
funds
£
505,491
-		 Total
2022
£
1,097,799
2,960
595,268 505,491 1,100,759
(77,280)
(514,557)		 -
(311,818)		 (77,280)
(826,375)
(591,837) (311,818) (903,655)
3,431
(7)		 193,673
-		 197,104
(7)
3,424
774,557		 193,673
-		 197,097
774,557
777,981 193,673 971,654
Restricted
funds
£
360,838
-
360,838
-
(360,838)
(360,838)
-
-
-
-
-		 Total
2021
£
749,660
4,505
754,165
(37,454)
(601,914)
(639,368)
114,797
68
114,865
659,692
774,557

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 18.

The notes on pages 17 to 26 form an integral part of these financial statements. Page 14

Read for Good (Registration number: 06895421) Balance Sheet as at 31 August 2022 2022 2021 Flxed assets Tangible assets Investments 12 13 55,512 384 66,894 391 55,896 Current assets Debtors Cash at bank and in h￿d 14 15 60,036 1,014,599 42.143 821214 1.074.635 863.357 Credltors.. Amounts lalllng due lthln <)ne ￿3T 16 158877 156,085 Net current assets 915.758 707.272 Net assets 971.654 774.557 Furtds ofthe charfty: Restrfcted Income fvnds Restricted funits 193.673 UnresMcte<l Income funds Unrestricted lunds 777,981 774.557 Total funds 971,654 774.557 The Trustees knowledge their responwlM"libes for comptying ￿ Ihe rewirements of the A¢t r8spect to a¢counb"ng records and preparab.on of fin￿¢181 statements The financi￿ statements have been prepared in the Pro￿￿On5 appI￿able to ents'ties subject to the small companies regime. e finonoal ststernents on pages 14 to 26 were approved by the Trustees. and aulhorised for issue on nderwood Charrn8n and TNstee The ngtes on pages 17 to 26 form *b intewal part of Ihese ffin8noal statements. Page15

Read for Good

Statement of Cash Flows for the Year Ended 31 August 2022

Note
Cash flows from operating activities
Net cash income
Adjustments to cash flows from non-cash items
Depreciation
5
Investment income
4
Revaluation of investments
Working capital adjustments
(Increase)/decrease in debtors
14
Increase in creditors
16
Net cash flows from operating activities
Cash flows from investing activities
Interest receivable and similar income
4
Net increase in cash and cash equivalents
Cash and cash equivalents at 1 September
Cash and cash equivalents at 31 August		 2022
£
197,097
11,382
(2,960)
7
205,526
(17,893)
2,792
190,425
2,960
193,385
821,214
1,014,599		 2021
£
114,865
13,274
(4,505)
(68)
123,566
5,199
4,180
132,945
4,505
137,450
683,764
821,214

All of the cash flows are derived from continuing operations during the above two periods. The Charity has no external debt.

The notes on pages 17 to 26 form an integral part of these financial statements. Page 16

Read for Good

Notes to the Financial Statements for the Year Ended 31 August 2022

1 Charity status

The charity is limited by guarantee, incorporated in United Kingdom, and consequently does not have share capital. Each of the Trustees is liable to contribute an amount not exceeding £10 towards the assets of the charity in the event of liquidation.

The principal place of business is: 26 Nailsworth Mills Avening Road Nailsworth Gloucestershire GL6 0BS

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with 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) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.

Basis of preparation

Read for Good meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

The financial statements have been prepared on a going concern basis.

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 one year from the date of approval of the financial statements.

Judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Income and endowments

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 the income receivable can be measured reliably.

Donations and legacies

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

Donated goods and services are included at fair value and the income is recognised within income from donations and legacies.

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Notes to the Financial Statements for the Year Ended 31 August 2022

Grants receivable

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £1,000.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate Short term leasehold property improvements 10 years straight line Office equipment 3 years straight line Computer equipment 3 years straight line

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Notes to the Financial Statements for the Year Ended 31 August 2022

Fixed asset investments

Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal.

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Fund structure

Unrestricted income funds are general funds that are available for use at the Trustees's discretion in furtherance of the objectives of the charity.

Designated funds are unrestricted funds set aside for specific purposes at the discretion of the Trustees.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

3 Income from donations and legacies

Donations and legacies;
Donations from companies, trusts
and similar proceeds
Grants, including capital grants;
Government grants		 Unrestricted
funds
General
£
592,308
-
592,308		 Restricted
funds
£
505,491
-
505,491		 Total
2022
£
1,097,799
-
1,097,799		 Total
2021
£
719,207
30,453
749,660

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Notes to the Financial Statements for the Year Ended 31 August 2022

Government grant income of £nil (2021: £30,453) is all in relation to the Coronavirus Job Retention Scheme (CJRS) Grant.

Of the income received from donations and legacies £505,491 (2021: £360,838) was restricted.

4 Investment income

Unrestricted
funds
General
£
Other investment income
2,960
5
Expenditure on raising funds
Direct costs
£
Costs of generating donations and legacies
77,280
6
Expenditure on charitable activities
Unrestricted funds
Restricted
Note
Designated
£
General
£
funds
£
Staff costs
-
143,235
136,400
Depreciation and
amortisation
11,382
-
-
Other costs
51,243
308,697
175,418
62,625
451,932
311,818
Activity
undertaken
directly
£
Staff costs
279,635
Depreciation and amortisation
11,382
Hospital Reading Programme excluding staff costs and
overheads
183,149
Schools Reading Programme excluding staff costs and
overheads
247,598
Consultancy
393
Travel costs
597
Storage
1,944
Bank charges
261
Office costs
51,302
Direct costs
41,120
Auditors remuneration
7,700
Other governance costs
1,294
826,375		 Total
2022
£
2,960
Total
2022
£
77,280
Total
2022
£
279,635
11,382
535,358		 Total
2021
£
4,505
Total
2021
£
37,454
Total
2021
£
267,345
13,274
321,295
826,375 601,914
2022
£
279,635
11,382
183,149
247,598
393
597
1,944
261
51,302
41,120
7,700
1,294
826,375		 2021
£
267,345
13,274
115,732
138,552
377
-
1,944
137
34,095
25,006
5,000
452
601,914

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Notes to the Financial Statements for the Year Ended 31 August 2022

7 Net incoming/outgoing resources

Net incoming resources for the year include:

Depreciation of fixed assets 2022
£
11,382		 2021
£
13,274

8 Trustees remuneration and expenses

During the year the charity made the following transactions with Trustees:

During the year ended 31 August 2022, expenses totalling £307 (2021: £389) were reimbursed or paid directly to 1 Trustee and the CEO (2021: 1 Trustee). The expenses reimbured were mileage claims for attendance at Board meetings.

No Trustee, nor any persons connected with them, have received any remuneration from the charity during the year.

9 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs		 2022
£
307,808
31,090
7,078
345,976		 2021
£
266,734
25,844
6,295
298,873

The monthly average number of persons (including senior management team) employed by the charity during the year was as follows:

2022 2021
No No
11 9

No employee received emoluments of more than £60,000 during the year.

The key management personnel of the Charity comprises the Chief Executive Officer, Chief Operating Officer and Head of Development. The total employee benefits, including employers national insurance contributions, of the key management personnel of the charity were £81,312 (2021: £58,166).

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Notes to the Financial Statements for the Year Ended 31 August 2022

10 Auditors' remuneration

10 Auditors' remuneration
Other fees to auditors
Audit-related assurance services
Taxation compliance services		 2022
£
7,300
400
7,700		 2021
£
5,000
-
5,000

11 Taxation

The charity is a registered charity and is therefore exempt from taxation.

12 Tangible fixed assets

Cost
At 1 September 2021
At 31 August 2022
Depreciation
At 1 September 2021
Charge for the year
At 31 August 2022
Net book value
At 31 August 2022
At 31 August 2021		 Land and
buildings
£
156,799
156,799
89,905
11,382
101,287
55,512
66,894		 Furniture and
equipment
£
4,059
4,059
4,059
-
4,059
-
-		 Computer
equipment
£
8,183
8,183
8,183
-
8,183
-
-		 Total
£
169,041
169,041
102,147
11,382
113,529
55,512
66,894

Included within the net book value of land and buildings above is £Nil (2021 - £Nil) in respect of freehold land and buildings and £55,512 (2021 - £66,894) in respect of leaseholds.

13 Fixed asset investments

13 Fixed asset investments
2022 2021
£ £
Other investments 384 391

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Notes to the Financial Statements for the Year Ended 31 August 2022

Other investments

Cost or Valuation
At 1 September 2021
Revaluation
At 31 August 2022
Net book value
At 31 August 2022
At 31 August 2021
14 Debtors
Prepayments
Other debtors
15 Cash and cash equivalents
Cash at bank
16 Creditors: amounts falling due within one year
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 Listed
investments
£
391
(7)
384
384
391
2022
£
24,745
35,291
60,036
2022
£
1,014,599
2022
£
80,426
7,475
500
70,476
158,877		 Listed
investments
£
391
(7)
384
384
391
2022
£
24,745
35,291
60,036
2022
£
1,014,599
2022
£
80,426
7,475
500
70,476
158,877		 Total
£
391
(7)
384
384
391
2021
£
29,386
12,757
384
384
391
2022
£
24,745
35,291
60,036
2022
£
1,014,599
2022
£
80,426
7,475
500
70,476
158,877
42,143
2021
£
821,214
2021
£
40,152
6,669
1,742
107,522
156,085

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Notes to the Financial Statements for the Year Ended 31 August 2022

17 Obligations under leases and hire purchase contracts

Operating lease commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

Other
Within one year
Between one and five years
After five years
18 Statement of Funds
Balance at 1
September
2021
£
Unrestricted funds
General
General
funds
607,663
Designated
Fixed assets
66,894
Projects
100,000
166,894
Total
unrestricted
funds
774,557
Restricted
funds
Hospital
programme -
specified
-
BBC Radio
4 appeal
-
Total
restricted
funds
-
Total funds
774,557		 Incoming
resources
£
595,268
-
-
-
595,268
440,472
65,019
505,491
1,100,759		 Resources
expended
£
(529,212)
(11,382)
(51,243)
(62,625)
(591,837)
(311,818)
-
(311,818)
(903,655)		 2022
£
14,652
57,088
7,136
78,876
Transfers
£
Other
recognised
gains/(losses)
£
(85,893)
(7)
-
-
85,893
-
85,893
-
-
(7)
-
-
-
-
-
-
-
(7)		 2021
£
15,794
57,468
21,408
94,670
Balance at
31 August
2022
£
587,819
55,512
134,650
190,162
777,981
128,654
65,019
193,673
971,654

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Notes to the Financial Statements for the Year Ended 31 August 2022

Balance at 1
September
2020
£
Unrestricted funds
General
General
funds
535,524
Designated
Fixed assets
80,168
Projects
44,000
124,168
Total
unrestricted
funds
659,692
Restricted
Hospital
programme -
specified
-
Total funds
659,692		 Incoming
resources
£
393,327
-
-
-
393,327
360,838
754,165		 Resources
expended
£
(265,256)
(13,274)
-
(13,274)
(278,530)
(360,838)
(639,368)		 Transfers
£
Other
recognised
gains/(losses)
£
(56,000)
68
-
-
56,000
-
56,000
-
-
68
-
-
-
68		 Balance at
31 August
2021
£
607,663
66,894
100,000
166,894
774,557
-
774,557

Designated funds

Fixed assets

Funds have been designated for the purchase of fixed assets which has now taken place. The deignated funds represents the net book value of fixed assets and is reduced each year by the depreciation of those fixed assets.

Projects

In 2021/2022, £51,243 was spent to complete the development of Track My Read.

In 2022/2023, up to £134,650 will be required to:

  1. Supplement income from grant-making trusts to fund the hospital programme, up to the value of £32,000;

  2. Enable Read for Good’s book box programme, in which we collate a range of children’s books for schools and medical settings in need, up to the value of £33,000. This includes £3,000 in relation to Community Brilliant Boxes of Books, to provide 120 boxes of donated books. We hope to fundraise for this programme, but this designation allows us to progress the programme immediately.

  3. Provide book rewards to schools running Readathon, up to the value of £34,650.

  4. Enable programme optimisation for Storyteller Training Films and Track My Read, up to the value of £15,000, to ensure key resources are well known and well used.

  5. Tailor new versions of the Storyteller training films to reach new audiences, up to the value of £10,000.

  6. Complete a new IT project to replace the Charity's existing Information Access and Technology Systems, up to the value of £10,000.

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Notes to the Financial Statements for the Year Ended 31 August 2022

Restricted funds

Hospital programme is an initiative started in 2010 which provides books and storytellers to children in hospital.

The BBC Radio 4 appeal was a specific fundraising appeal carried out during 2021/2022 in order to raise money to provide books and storytellers to children in hospitals.

Grants received

The Charity has received specific donations towards the costs of running programmes in hospitals. Some of the donors are detailed in the Trustees' Report.

19 Analysis of net assets between funds

Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Total net assets		 Unrestricted
funds
General
£
55,512
384
880,962
(158,877)
777,981
Unrestricted
funds
General
£
66,894
391
863,357
(156,085)
774,557		 Restricted
funds
£
-
-
193,673
-
193,673
Restricted
funds
£
-
-
-
-
-		 Total funds at
31 August
2022
£
55,512
384
1,074,635
(158,877)
971,654
Total funds at
31 August
2021
£
66,894
391
863,357
(156,085)
774,557

20 Related party transactions

There were no related party transactions in the year.

Page 26