Cornpany wislration number.. 06895421 Charity reg￿tration number.. 1130309 and SC041036 Read for Good IA company lirnrted by guarantee) Annual Report and Financial Ststements for the Year Ended 31 August 2023 Read tor Good Contents Reference and Administrative Details Tru5te85' Report 2to 11 Statement of Trustees, ResponsSbilitles 12 lThJepen¢Jent Audltor9' Reptsrt 13to16 statement of Financial A¢livile$ 17 Balance Sheet 18 Statement of Cash Flow8 19 Not8s to Ihe Financpl Statements 201029 Read for Good Reference and Administrative Details Chalrman Mr Kevin Underwood Ghlef Executlve Offi￿r Ms ￿$tine Danie15 Trustees Ms Anng Everall Ms He18n West Ms Rachel Bolton Ms Paula Regan Mr Kewn Underwood Ms Amanda Shlelds PrincipBI Office 26 N8ilsworth Mills Avening Road Nailsworth Gl(¥Jcestershire GL6 OBS The ¢harity is incorporated in United Kingdom. Company Registratlon Number 06895421 Charlty Regl$tratlon Number 1130309 and SC041036 Bank•rs Co-operative 8ank 1 Balloon Street Man¢h8St8r M604EP Audllor Hazlewoods LLP Staverton Court Stsverton Chellenham GL51 OUX Pago 1 Read for Good Trustees. Report The Trustees, who are directors for the purposes of company law. p￿sent the annual report togelherwilh the rina￿CIal statements and audiiors. report of the charitable company for the year ended 31 August 2023. Trust••s M5 Amn8 Everall Mr Stephen Morgan Iresigned 20 October 2023) Mr Micha81 WaLkgr (resigned 6 November 20221 Ms Helen Wesl Ms Rachel Bdton Ms Paula Regan Mr Kev(n Underwood lappjinted 7 Octob8r 20221 MS Amanda Shields lapptsinled 14 July 20231 In shaping ouroblecuves for the year and planning our act5v￿e$, the Trustèes have conskjered the Chèrfty Commission's guidance public benefit. Why r•adlng matters Read for Good's mlsslon is lo enable. empower and nK)livate chiklren and young people to discover the loy of reading. Reading for pleasu￿ can level.up a child s life Chan￿$. regardless of sociooconornic background- it can literally thange a child's lile. Children who choose to read foT fun are more likely lo achieve academic success, get better jobs and lead happier lives. Reading is 3 simple, effecuve and Iow-COSt actfvlty, a¢￿sSIble by most chlldren and young people. Byl to In$iil a lif8-changing love of reading. children need access to good-quality, new books,. they need a vibrant and dwerse choice of reading materials., and they n88d to b8 in5pir8d to read, to read rnor8 often, and to read more wid81y. This is wheié Read for Good cornes in. For nearly 40 years, Read for Good has helped teachers ond school librarians to inspire a love ol readlng with Readalhon@)- high-quality, W811-consider8d r8sources. and the all-import8nl motivation of helping children in hospital. Our unique work in hospitals- provKliro seriously ill children with the magic of books and stories- dernonslrates the Inc￿dible impact reading for pleasure Can have on a child's wellbeing and happiness. Despite a golden age of children'5 publishing, children's reading enjoyment 15 in worrying decline and ourwork remains vital. W8're responding wth more ways to help more children foster a lrfe-changing love of reading, COV8red in rnore detail laleT In Ihis report. Read for Good wants lo extend our reach and acce58ibility, ensuring ¢hiklren can acc&$s and b￿￿fft from thg life**Balance Sheet as at 31 August 2023**|| |---|---| |**Note**
**2023**
**£**
**Fixed assets**
Tangible assets
12
46,746
Investments
13
-
46,746
**Current assets**
Debtors
14
82,007
Cash at bank and in hand
15
998,879
1,080,886
**Creditors: Amounts falling due within one year**
16
(162,529)
**Net current assets**
918,357
**Net assets**
965,103
**Funds of the charity:**
**Restricted income funds**
Restricted funds
18
64,936
**Unrestricted income funds**
Unrestricted funds
18
900,167
**Total funds**
965,103|**2022**
**£**
55,512
384| ||55,896| ||60,036
1,014,599| ||1,074,635
(158,877)| ||915,758| ||971,654| ||193,673
777,981| ||971,654| 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 on pages 17 to 29 were approved by the Trustees, and authorised for issue on .................... and signed on their behalf by:18/12/2023 ......................................... Mr Kevin Underwood Chairman and Trustee ......................................... Mr Kevin Underwood Chairman and Trustee The notes on pages 20 to 29 form an integral part of these financial statements. Page 18 Read for Good Statement of Cash Flows for the Year Ended 31 August 2023 2023 2022 Cash flow5 frorn operatlng actlvltles Net cash (expenditu￿vIn¢Ome 16,5511 197,097 Adjustmènts to cash flows from non4ash Itèms D8preciation Investment incorne Revaluation ol investments 11,754 16.0121 14 11,382 12,9601 17951 205,526 Working capital adjustm8nt5 Incre8$9 in d8btors Increase In creditors 14 16 121.9711 3.652 117,8931 2.792 Net cash flows from operating a¢tivities 19.114 190.425 Cash flows from investing activities Interest r8c6ivablè and similar incomè Purchase of tangible fixed assets Sale of investments 6,012 12,9881 370 2,960 12 Net cash flows frorn invesling aetiwties 3.394 2.960 Net Idècrèasolllncrease in cash and cash equlvalents 115,7201 193,385 Cash and cash equivalents at 1 September 1,014,599 821,214 Cash and cash equivalents at 31 Augusl 998.879 1,014 599 All of the cash flows are derived from continuing operations during the above Iwo periodg. The Charity has no èxternal debt. The notes on page5 20 to 29 form an integral part ol these financial statements. Page 19 Read for Good Notes to the Financial Statements for the Year Ended 31 August 2023 1 Charlty status The charity is limiied by guarantee, incorporated in United Kingdom. and consequently does not have shar capitsl. Ea¢h of the Trustees is liable to contribute an amount not eX￿dIng £10 towards the assets of the charity In the event of liquidation. Th8 principal place of business is.. 26 Nailsworth Mills Avening Road Nailsworth Gloucestershire GL6 OBS 2 A¢¢ountlng policies Summary of signlfficant accountlng policles and key accounting estimates The principal accounting polioes applled in the preparation of these financial statements are sel oyl below. These policies have been o)nsistently applied lo all the years presented. unless othemise stated. Statement of compliance The f5nancial Statements have been prepared in accordance wth Accounting and Rewrting by Charities.. statement of Recommended Practice applicable to charities preparing their ac¢ounis in accordance with th8 Financial Reporting Standard applicab￿ in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20151- (Charities SORP IFRS 10211, the Financial Reporting Standard applicable In the UK and Republic ol Ireland IFRS 1021. They also comply with the Companies Act 2006 and Charibes Act 2011. Basls of pmparatlon Read for Good meets the definition of a public benefit entity under FRS 102. Asset5 and liabili118s are initially reco9nised at historical cost or transaction value unless otheThwse stated in the retevant auountsng policy note$. Golng concorn The f(nantsal statements hav8 b8en prepared on a going concem basis. The Truste8s assess whether the use of going concem is appropriate i.e. whether there are any mal8rial uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continu8 as a going concern. The Trustees mak8 this ass88Srn8nt in respèct of a pèrio(l tsf one year from the dale of approval of the financial slalernents. Judgements Estirnates and judgements are continually evaluated and a￿ based on historical experience and otherfactors, including expectations of future events that are believed to be reasonable un¢Jer the circumstances. Income and endowmènts l income is recogni5ed once the charity has entitlement to the incotne, it is probable that the income wil be raceived and th8 arnounl of the income rec8ivab18 can b8 m8a5ured reli3bly. Pag& 2 Read for Good Notes to the Financial Statements for the Year Ended 31 August 2023 Donations and lega¢les Donations are re¢ognised when the charity has been notffied in vrriting of both lh8 arn￿1nt and setuement dale. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity 15 entitled to the funds, the income Is deferred and not recognised until either those conditions are fully met. or the fulfilment of those conditions 15 wholty within the control of the charity and rt is probable Ihal Ihese conditions will be fulfilbd in the T9p￿ting p9ri0d. Donalsd goods and sèNlces are Included at fair value and the Income Is recognised within income frorn donations and legacies. Expenditure All expenditure is recognised once there is a legal or con5tructiV8 obligation to that expenditure, it TS probable settlement is ￿qUIred and the arnounl can be measured reliably. All costs are allocated to the applicable exper)dilure heading that a99￿gate similar costs to that category. Where costs cannot be directly attribut￿ to particular headings they have been alloGated on a basis consistent with the use ol resources, with cRnlral $laff costs allocat8d on th8 basis of time spent, and depreciation charges allocated on the pothon of Ihe asset's use. Other support costs are allocated based on the sp￿ad of staff costs. Ral$lng funds These are costs incUr￿d in attracting voKJntary income. the management of inve5tment5 and those incurr8d in trading 8ctiMties that raise funds. Charltal)le acllvl¢les Charitable expenditure cornprises those costs Incurred by the charity in the dejivgry of its activities and s8rvices for ils beneficiarres. It include5 both costs that can be allocated d1￿ctlY to such activities and those costs of an indirect nature necessary to support thern. Taxatlc*n The charity is considered to pas$ the t85ts s8t out in Paragraph 1 Schedule 6 of the Finance Act 2010 and Iherefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is pot&ntially 6xempt Irom taxation in respect of income or Capital gains r8C8ived within categories covered by Chapter 3 Part 11 of the corporatio￿ Tax Act 2010 or Section 256 01 the Taxation of Chargeable Gains Act 1992. lo the extent ihat such incom8 or gains ara ap￿i$d èxclusively to charitable purposes. Tanglbl¢ flx¢d a$sots In¢Jividual fixed assets costing £1.000 or more are initially recordèd at cost, less any subsequent accumulated depreciation and subsequent accumulated irnpairn￿nt losses. Dèpr•elatlon and amortlsatlon Dep￿ciatIon is provided on tangible fixed assets so as to writ8 off th8 Cost orvaluation, less any e5tirnated rèsidual value, over thelr expeeted useful economlc life as follows.. Asset class Short term leasehold properly irnprovements Offic8 8qUiPtnent Computer equipment Depr8ciatlon method and rate 10 y8ar5 Straight line 3 years straighl lin8 3 years straSght line Page 21 Read for Good Notes to the Financial Statements for the Year Ended 31 August 2023 Fixed asset investment8 Fixed asset inveslmenls, other than programme related investments, are included at rnarkel value al the balance sheet date. Realised gains and losses on Investsnents are calculated as the dlfference betsveen sales proceeds and their market value al the start of the year, or their subsequent cost, and are charged or credited to the Slat6mènt of Financial AC￿'vitieS in the p8riod of disposal. Unrealised gains and losses represent the movemen¢ in rnarkel values during the year and are cr&Yited or charged lo the Statement of Financial Actimties based on the market value at the year end. Trade debtors Trade debtor5 are amounts due from customer5 for merchandise sokl or seTvice5 perftsmed in the tsrdinary eour5e of busin8SS. Trade debtors ara iecognised initially al thè transaction pricè. They aro Subs￿U•n1IY measured at amortised ¢￿st U￿ng the effectiv8 interest method, lèss provision for Impaifment. A provlsion for the impalrment of trade debtors IS 85tablished when there is objective evidence that the charity will not b8 able to collect all arnounts du8 arLording lo the original terms ol the re¢eivable$. Cash and cash equlvalents Cash and cash equivalent5 comprise Gash on hand and call deposits, and other short-term highly liquid investmtrnts that are readily convertible to a known amount of cash and are subject to an irisignificant risk of change in value. Trade ¢redltors Trade ¢reditors are obligations to pay for uoods c￿ services that have been acquired in the ordinary course of business from suppli9rs, kcounts payable are classified as tur￿￿1 liabilities if the charity does not have an unconditional right, at the end of the reporbng period. lo defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to dgfer settlement for al loasl Iwelve rnonths after tha reporting date. they a￿ presented as non-current liabilities. Trad8 creditors sre recognised initially 8t th8 Iransactiori pric8 8nd $ub5èqU8ntty rn8asurad 8t amortised cost u%ng the effective inierest method. Fund structure Unrestricted income funds are general funds that are avallable for use al the Truslees's dIsC￿tIOn in ftjrtherance of the objectlves of the charity. Designaied funds are unreslricled funds Set aside for sp9cifi¢ purp¢)ses at the diKretion of th8 Trust8e5. Restricted income lund5 ar8 thos6 donated for use in a partiCu￿r a￿a or for specffjc purposes, the use of which 1$ restrictèd to that area or purp089. 3 Income from donatlons and199acles Unr¢strlct¢d funds General Restricted funds Total 2023 Total 2022 Donatlons from cornpanies, Iwsts and similar proceeds 698,546 398,960 1,097.506 1,097.799 Of the income ￿e1Ved from donations and legades e398,96012022'. £505,491) was reslricled. Page 22 Read for Good Notes to the Financial Statements for the Year Ended 31 August 2023 4 Investment In¢ome Unrestricted funds General Total 2023 Total 2022 Other inve51ment irKome 6,012 2,960 5 Expendlture on ralslng fundo Total 2023 Total 2022 Olrect ¢ost$ Costs of g8n8rating donations and 18gaci•s 50,513 50,513 77.280 6 Expenditure on charitable activiti05 Unre$¢rlcted funils Designated Gen8r81 Restricted funds Total 2023 Total 2022 Note Staff costs Dsprocialion and amortisation Other costs 173.854 184.185 358,039 279.635 11.754 113,532 11.754 689.749 11,382 535,358 232,705 343,512 125.286 406.559 527,697 1,059,542 826.375 Activity undgrtak¢n dlre¢tly 2023 2022 Staff costs Depre￿￿tIOn and amortisation Hospital Reading Programme excluding stsff ¢08tS and overheads Schools R9ading Progrdrnm8 8xcluding staff costs and overheads Consultancy Tr8vg1 costs Storage Bank charges Office costs Dir8Ct costs Auditors remuneration Other governance costs 358,039 11.754 358,039 11.754 279.635 11.382 265,788 265,788 183,149 327,972 856 1.554 2,040 743 44.500 34.773 10,068 1.455 327,972 856 1,554 2.040 743 44.500 34.773 10,068 1,455 247,598 393 597 261 51,302 41.120 7,700 1,294 1,059,542 1,059.542 826,375 Pag& 23 Read for Good Notes to the Financial Statements for the Year Ended 31 August 2023 7 Net incomingloutgolng resources Nèt loutgoingyincorning resou￿9$ for the year include.. 2023 2022 Oepreciation offixed assets 11,754 11,382 8 Trustees remuneratlon and ¢xpen$•$ During th8 year the charity mad8 the folk)wiThJ transactions with Trustees.. During the year ended 31 August 2023. expenses totalling £74612022.. £3071 ware reimbursed or paid dlrectty to 1 Trustee and the CEO12022.. 1 Trusiee and the CEOI. The expenses ￿1Mb￿r$ed were mileage claims for attendance at Board meetings and other general charity expenses. No Tru5t88, nor any persons connected with them. havg received any rernuneralion from th8 charily during thè 9 Staff costs The a99￿gate payroll costs were as follows-. 2023 2022 Staff ¢o$ts durtng the year were: Wages and salaries Social sècu¥ity cos15 P8nsion costs 357,559 36,085 7.656 307.808 31,090 7,078 401,300 345,976 The monthly average number of persons (including senior management teaml em￿ayed by the charity during the yearwas as fo]lows'. 2023 2022 No empknyetr received effloluments of Tnore than £60,000 during the year. Thè key tnanagemenl personnel of the Charity comprises the Chi8f Executive Officer, Chief Operaling Officer and Head of DevelopmenL The total employee benefits. including employers national insurance contrthulion5. of th& key management personnel ol the charity were £150,13812022'. £81.3121. As part of the charills growth with the aim ol incr8a5ing our reach and impad. over the year the charity expanded its senior management team and this is ￿fleCted in the total salaries for Key Management this yoar. Page 24 Read for Good Notes to the Financial Statements for the Year Ended 31 August 2023 10 Audltors. remuneratSon 2023 2022 Otherfees to audltors Audtrt-related assurance s•￿e•S Taxation compliance seNces 10,068 7,300 400 10,068 7,700 11 T&xatlon The charity is a registered charily and is therefore exempt f¥orn taxation. 12 Tangible fixed assets Land and buildings Furniture and equipmènt COMp￿er èqulpment Totsl Cost At 1 September 2022 Additions Disposals 156.799 1.609 4,059 1,379 8,183 169,041 2.988 8,183 8,183 At 31 August 2023 158,408 5.438 163,846 Dèpre¢latlon At 1 September 2022 Charge for thè yèar Eliminated on disposals 101.287 11,754 4,059 8,183 113.529 11,754 8,183 8,183 At 31 August 2023 113,041 4,059 117,100 Net book valu• At 31 August 2023 45,367 1.379 46,746 At 31 August 2022 55,512 SS.512 Included within the net book value of land and bulldlngs above Ss £Nil12022= £Nill in respe¢t of freehokl18nd and buildings and £45.36712022.. £55.5121 in respect of18a5eholds. 13 Fixed asset Inve$tment$ 2023 2022 other Investments Page 25 Read for Good Notes to the Financial Statements for the Year Ended 31 August 2023 Other Investments Listed Inwstments Total Co$t or Valuation At 1 Septernb8r 2022 Revaluation Disposals 1141 370 {141 3YO At 31 August 2023 Net book value At 31 August 2023 At 31 August 2022 384 384 14 Debtors 2023 2022 Prepaym6nls Olher debtors 27,564 54,443 24,745 35.291 82,007 60,036 15 Cash and cash wuivalènts 2023 2022 Cash at bank 998,879 1,014,599 16 Credltors= amounts fallln9 due wlthln one year 2023 2022 Trade CTeditors Other taxation and $o¢ial security Other credllors Ac(xu815 8nd dgferred ino)rne 85,790 11.096 2.394 63,249 80.426 7,475 500 70.476 162,529 158,877 2023 2022 Dèfarr¢d incomè al start of the yèar Resources deferred in the year Amounts released Irotn the prevlous year 8.500 945 8.500 92,440 8.500 92,440 Deferred income al end of the year 945 8.500 Deferred Income at 31 August 2023 relates to amounts re￿iVed before the year-end, in relation to thè hospital prograrnm8. for sessions that ar8 du8 to be h81¢J after the year-end. Page 26 Read for Good Notes to the Financial Statements for the Year Ended 31 August 2023 17 Obligations under leaswa and hlre purchase contracts Opèratlng ￿ase commltments Total future minlmum lease payments under nondcAnc811able op8rating lea58s ar8 as follows.. 2023 2022 other Within one year 8etsveen one and five years Afterfive years 19,898 69,151 14,852 57,088 7.136 89.049 78,876 The arnount ol non-¢allcell8ble operoting18asè paymènts rocognised as an expgnse durin9 thg ygar was £16,81512022." £15,794). 18 Statement of Funds Balance at 1 Septemb•r 2022 Other recosnis•d gainslllossesl Balance at 31 August 2023 In¢omln9 resources Resources expended Transfers Unrestrl¢ted funds General General funds 587,819 704,558 {457,0721 18,130 1141 853,421 D•slgnated Fixed assets Projects 55,512 134,650 111.754} 113,532 2.988 21.118 46.746 190.162 125,286 18,130 46.748 Total unrestricted funds 777,981 704,558 582,358 14 900,167 Restrlded funds H05Pital and schools prograrnmes - specified BBC Radlo 4 8PP8al 128,654 398,960 1462.6781 65,019 65,019 Total re$trl¢ted lunds 193.673 398.960 527,697 64,936 Totsl funds 971.654 1,103.518 1,110,055 74 965,103 Page 27 Read for Good Notes to the Financial Statements for the Year Ended 31 August 2023 Balance at 1 September 2021 other recogn15ed Tran$f•rs galnslllossesl Balan¢e at 31 August 2022 Incomlng r•sources Resources expended Unr¢$tri¢ted funds General General fund5 607,663 595,268 1529,2121 185,8931 171 587,819 Designated Fixed assets Projects 66,894 100.000 111.3821 51,243 55,512 134,650 85.893 166,894 62,625 85,893 190,162 Totsl unre5trict8d funds 774,557 595,268 591,837 77Y.981 Rostricted Hospital and s¢ho(4s programrnes speafied BBC Radio 4 appeal 440,472 1371,8181 128.654 65,019 65,019 Total r*stricted fund5 S05,491 311.818 193,673 Totslfvnd$ 774 557 1,100.759 903 855 971,654 D•slgnat•d lunds Thg amount designat8d lor fixed a5S8ts 15 8quivalant to the net book valu8 of fix8d assats on the Balance Sheet. The Trustees are d1￿Cting a proportion of the surplus f￿ndS to support Read for Good 5 Strategic objecb'ves to reach 1 million children and young people annL¢ally by 2028. by investing in the ¢hariWs growth through personnel and planned activikn'es to improve fundraising potential and lo increa58 overall reach, delivery and impacL R851rict8d funds Hospital progrdrnm8 is an initiats've started in 2010 whieh pmvides books aTKI storytellers to children In hospltal. The 88C Radio 4 appeal was a specific fundraisSng appeal carrfed out durfng 202112022 in order to raise money to provid8 books and storytellers to thiidr8n in h05Pitals. Grants received The Charity has receivéd specfflc donatkns towards the costs of runnlng programmes In hospitals. Sorne of the donors are detailed in the Trustees. Report. Pago 28 Read for Good Notes to the Financial Statements for the Year Ended 31 August 2023 19 Analysls of net assets betwgen funds Unre$trl¢ted funds General Totsl funds at 31 August 2023 Restrlcted funds Tangible fLYed assets Current assets Current Ikgbililies 46.746 1.015,950 162.529 46,746 7,080.886 162.529 64.936 Total net assets 900.167 64,936 965.103 Unrestrlcted funds General Total funds at 31 August 2022 Restrl¢ted funds Tangiblg fiKed assets Fixed asset investments Current assets 55,512 384 880,962 158,877 55,512 384 1.074.635 158,877 193,673 Total nel assets 777,981 193,673 971,654 20 Deflned contrlbutlon ponslon $¢homo The charity operate5 a defined contribution pension scheme. The pensSon cost charge for the year repiesents contributions payable by the charity to the 5cherne and arnounted to £7,65612022.. £7.0781. Contributlons totallng £2,39412022.- £Nill were payable to the scheme al the end of the year and are included i creditors. 21 R•lat•d party transactlons Tharè waw no rdatad party transactions in the year. Pago 29