Registered number: 07094662 Charity number: 1135811
R.E.A.L. FOUNDATION TRUST (A company limited by guarantee)
UNAUDITED
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021
R.E.A.L. FOUNDATION TRUST
(A company limited by guarantee)
CONTENTS
| Page | |
|---|---|
| Reference and administrative details of the Company, its Trustees and advisers | 1 |
| Trustees' report | 2 - 9 |
| Independent examiner's report | 10 |
| Statement of financial activities | 11 |
| Balance sheet | 12 |
| Notes to the financial statements | 13 - 24 |
R.E.A.L. FOUNDATION TRUST
(A company limited by guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2021
| Trustees | Ms J R Byatt (appointed 29 November 2021) |
|---|---|
| Mr D Collins (appointed 14 June 2021) | |
| Mr R Day (appointed 14 June 2021) | |
| Ms J A W Evans (appointed 14 June 2021) | |
| Ms J Keely (appointed 14 June 2021) | |
| Mr B C Smith (appointed 14 June 2021) | |
| Mr S F Ryan | |
| Ms C F Ryan | |
| Ms A T Bailey (resigned 1 September 2020) |
Company registered number 07094662 Charity registered number 1135811 Registered office Kingsmill House 1 Kings Mill Way Mansfield Nottinghamshire NG18 5ER
Page 1
R.E.A.L. FOUNDATION TRUST
(A company limited by guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2021
The Trustees present their annual report together with the financial statements of the Company for the year 1 September 2020 to 31 August 2021. The annual report serves the purpose 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 2019).
Since the Company 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.
Chair's report
The R.E.A.L. Foundation Trust continues to provide a range of safe risk managed opportunities for young people with individual needs across the East Midlands 3 largest counties: Nottinghamshire, Derbyshire and Leicestershire.
Over the past year, restrictions due to the Covid-19 virus, particularly the closure of public spaces and the anxieties around social mixing, understandably limited the reach of our efforts. However, with a national focus on food poverty, the Trust has received increased applications to support the nutritional wellbeing of young people. This is an area which fits well with our objectives, and we are pleased to say we have assisted in several ways. This includes food parcels to families and free lunches during holiday time. As Trustees, we place significant emphasis on elements that contribute to successful learning. Food poverty and personal wellbeing are two key areas that are emerging post Covid that we shall seek to address.
Although the proposed Coast to Coast sponsored cycle ride again had to be cancelled, we are happy to report the annual golf tournament was reinstated. This was greatly appreciated by all participants and the effort of volunteers was acknowledged through record revenues.
I am pleased to report that despite Covid restrictions, phase 1 of the development of the Charity’s new headquarters at Pleasley was undertaken and we were able to open several areas in June 2021. This is a significant landmark in the Charity’s development and will be the keystone of our future developments in the coming years.
The organisational restructure that has accompanied this development has enabled the Trust to prioritise services and support for out of school activities and initiatives. This will enable us to drive the core objects of the charity to support the continuity of learning time outside of the hours of statutory education. In addition to this, the Trustees are aware of the continuing impact of food poverty and access to digital devices on the life chances of the young people we work with. These will be at the forefront of our strategy in the coming years. It is hoped that collaboration with other like-minded organisations will be a key driver in successfully addressing these areas.
The Children in Need grant continues to provide access to social opportunities for young people as we come out of the Covid restrictions. It has enabled us to successfully obtain further grants to provide continuity to the project. This includes three-year funding for a coordinator for a new project - “Freetime”. The “Freetime” project will build on the current key themes to provide an increasing range of personal leisure time activities to promote independence and confidence for our target group.
During the course of the year, we have been fortunate in appointing 5 new Trustees to the board who bring a variety of experience and backgrounds to the Trust, and I look forward to working with them in the coming years as the Trust seeks to grow its services and opportunities for young people.
Sean Ryan
Chair of Trustees
To know more, visit our website: www.realft.org or telephone Nicky Holland on 01623 423411.
Page 2
R.E.A.L. FOUNDATION TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021
Objectives and activities
a. Policies and objectives
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
The purposes of the charity are:
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advancing in life and helping young people by developing their skills, capacities and capabilities to enable them to participate in society as independent, mature and responsible individuals;
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advancing education;
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relieving unemployment;
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providing recreational and leisure time activity in the interest of social welfare for people who have need by reason of their youth, age, infirmity or disability, poverty or social and economic circumstances with a view to improving the conditions of life of such persons;
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the promotion of healthy lifestyles and the provision of advice on the same.
The vision is shaped by the R.E.A.L. Foundation Trust through seeking to raise the aspirations of children, young people and their families who have become disengaged from education and their communities and have consequently become significantly hard to reach. In partnership with schools, colleges and specialist organisations it provides opportunities to stabilise situations in order to develop their skills, capacities and capabilities.
Through the building of quality relationships and experiences, the R.E.A.L. Foundation Trust aims to enable young people to build up their self-esteem to enable them to participate as independent, mature and responsible individuals within their communities and wider society.
The Trustees take the holistic view that the re-engagement in Education and communities needs a broad approach; and attention to the detail of a young person's needs is a key to success in this work. It endeavors to support complementary approaches and working environments focused on encouraging the re-engagement of children and young people with their learning. It seeks to provide assistance in all areas of a young person's wellbeing and personal development. In re-engaging and guiding young people onto the most appropriate accredited pathways and offering advice, information and guidance, the R.E.A.L. Foundation Trust aims to promote employability and future economic wellbeing of the young people it works for.
Page 3
R.E.A.L. FOUNDATION TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021
Objectives and activities (continued)
b. Strategies for achieving objectives
The strategies employed for achieving our objectives within local communities include:
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the provision of sports and recreational activities to promote healthy lifestyles;
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identifying individuals, groups and organisations that require our support and work in partnership to develop progression in these areas;
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supporting delivery from organisations and individuals across a number of venues in Nottinghamshire, Leicestershire and Derbyshire;
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delivering stimulating and safe experiences for young people whilst looking particularly to develop the skills for independence and work.
Putting these strategies into action moving forward we shall have two major areas of activity which are: out of school programmes that meet the needs of local communities and, in particular, provision for young people with additional needs within their own communities.
Funding for this is drawn mainly from donations and fundraising events. In order to grow and develop opportunities we have established a bid writing team and a range of further fundraising events.
During the next year we shall develop a commissioning model to roll out the “Freetime” project to help deliver the core objectives and provide additional revenue.
c. Activities undertaken to achieve objectives
During the course of the year, the Trustees continued to look at ways to fund proposals that will meet the charitable aims and enhance the educational experience and outcomes for disadvantaged and hard to reach children and young people.
Fundraising activities were less restricted by the Covid-19 situation this year, but will need a significant focus in the coming year. There are a number of additional events planned.
The focus for the past year has been the development of the Freetime project to run alongside the work undertaken with the Children in Need grant. This will ensure continuity when the current grant expires and provide a long term, sustainable resource for young people’s leisure time. The charity manager has been successful with Local Authority commissioning bids for this service. This will bring additional income over the coming year.
d. Volunteers
The R.E.A.L. Foundation Trust is extremely grateful to those who gave their services voluntarily over the past year.
Achievements and performance
a. Key performance indicators
The progress made with the Freetime project, the development of the Pleasley headquarters and the provision within it and the success of commissioning bids has placed the Trust on a healthy foundation for the coming year. The Trust balance sheet continues to be healthy and, in the circumstances, fundraising income has been pleasing. The breadth of new donors has placed fundraising in a much stronger position, and we look for this trend to continue. We continue to review the structured approach to bid writing and work on specific projects is well advanced. We look forward to more success in this area.
Page 4
R.E.A.L. FOUNDATION TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021
Achievements and performance (continued)
b. Review of activities
For a considerable part of the year, there was a significant stress placed on the activities of the Trust because of the necessary restrictions imposed during the Covid-19 outbreak. However, the Trust used its position in the community to play a positive role in ensuring the wellbeing of a large number of children and young people. The Trust’s success in securing grants from local councils enabled support through the provision of food parcels for pupils and their families who would normally receive free school meals during the holiday periods.
The grants contributed towards the costs incurred for providing the food, transportation and expenses incurred for this much needed support. During this time we supported a significant number of families and in addition provided much needed socially distanced contact with the families, a visible continued supportive presence and a conduit for additional support when needed.
In the Autumn term, holiday clubs that included trips to football matches, places of local interest and other local leisure time activities were run in conjunction with Children in Need. In the Summer term, with further support of grants from Persimmon, well supported holiday clubs were run at the new Pleasley headquarters. These included sports days, a cinema club, arts and craft and technology sessions. Feedback was again excellent and the intention will be to run these regularly in future holidays and open these up to after school clubs in term time.
There have been a number of funding applications for personalised leisure time activities. These have been limited due to the impact of Covid restrictions. Focus will be targeted at creating more group opportunities post Covid to encourage social opportunities for young people in the light of restrictions over the past two years and we shall seek to fund new initiatives. Work has been limited but services available when possible.
The Charity manager has undertaken training in financial management, safeguarding, and leadership.
c. Fundraising activities and income generation
The major fundraising event was the golf day in July 2021 which achieved record revenue after costs of around £5.5k. The Trust was also successful in securing grant funding from several sources to achieve its objectives.
Moving forward to 21/22, the provision of services for the “Freetime” project will further support income generation.
d. Investment policy and performance
There were no surplus funds to invest during the course of the year.
e. Factors relevent to achieve objectives
The unique relationships the charity has developed to ensure the quality delivery of services to children and young people in need are a key to developing its profile as a major contributor to this area of work, particularly in the East Midlands where it is based.
Financial review
a. Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the company 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.
Page 5
R.E.A.L. FOUNDATION TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021
b. Reserves policy
Reserves are that part of the Trust’s unrestricted funds that is freely available to spend on any of the Charity’s purposes. Unrestricted reserves at 31 August 2021 was £36,220. The Trust maintains unrestricted reserves to:
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Provide a level of working capital that protects the continuity of its core work
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Provide funding to develop unexpected opportunities
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Provide cover for risks such as unforeseen expenditure or unanticipated loss of income
The Board of Trustees will apply the above criteria with reference to the annual plans and determine the target level of reserves accordingly. The Board will at times designate funds from free reserves for significant project costs or the replacement/purchase of major assets.
c. Principal risks and uncertainties
The Trustees have assessed the major risks to which the Trust is exposed. At a time of increasing competition for funding streams and reductions in local authority spending, it is clear that direct funding will be limited and the margins for any services will come under scrutiny. The trustees have identified some core areas for development that will help to maintain the Trust's momentum and support future growth and security. This includes a review of existing areas of delivery to consider other revenue and delivery possibilities.
As a consequence the charity manager has reviewed current demand for places within the local Short Breaks offer and has produced a three year plan to develop internal services in line with growing demand. This has been supported with grants from local charities for key staff and approval from local authorities to provide services.
Increased competition for funding opportunities has indicated that a more structured and sustained approach needs to be taken to project development. The charity manager will continue to develop this area of work.
At a time when local authority cutbacks are having significant impact, the trustees identify that although there will be risk and uncertainty, this will also provide the Trust with opportunities to increase their profile and outreach to young people in need.
d. Financial risk management objectives and policies
By keeping overheads to a minimum, the Trustees limit any financial risks. Such risks as may occur are continually monitored.
All fund raising events are safeguarded by sponsorship and a policy of assessing the risk and ensuring breakeven before confirmation.
e. Principal funding
The Charity has been funded by small grants from local and national organisations. The support of a fundraising team and administration will further aid the development of additional funding streams in the future. This will be sponsored through a Service Level Agreement with R.E.A.L. Education Limited.
Page 6
R.E.A.L. FOUNDATION TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021
Structure, governance and management
a. Constitution
The company is registered as a charitable company limited by guarantee.
The company is a registered charity number 1135811.
The principal object of the company is to provide support to young people who present with the most challenging individual needs in terms of additional support and complexity. It supports delivery from organisations and individuals across a number of venues in the East Midlands.
The focus is very much on delivering stimulating and safe experiences for young people whilst looking particularly at organisations who offer real outcomes and promote skills for work and life. There is a particular emphasis on achieving accredited outcomes within the National Framework that are appropriate to an individual's needs and capabilities.
b. Methods of appointment or election of Trustees
The management of the Company is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed.
c. Policies adopted for the induction and training of Trustees
It is the R.E.A.L. Foundation Trust’s policy that Trustees should be supported in all aspects of charitable training that is needed in conjunction with their role. It will be made available as required. Opportunities have been identified for Trustees to attend courses and funding can be applied for directly from the Charity to support this.
d. Pay policy for key management personnel
The charity has no staff directly employed.
e. Related party relationships
The R.E.A.L. Foundation Trust maintains a register of all Trustees' interests and any potential conflicts that may arise during the course of their business. There is a clear structure within all meetings for the declaration of third party interests and these are minute. All Trustees are aware of the related “Conflicts of Interest” policy that sets out guidelines for their involvement.
Page 7
R.E.A.L. FOUNDATION TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021
Structure, governance and management (continued)
f. Financial risk management
Trustees are aware that the development of the new headquarters and the “Freetime” service, will create an element of financial risk. These have been mitigated with long-term sub-letting agreements that will cover a significant overhead. In addition, tight financial controls will be in place to manage the growth of the “Freetime” services and the support of long-term grants to cover principal wages will go a long way to reduce risk and uncertainty.
By keeping tight controls on overheads, Trustees will limit any financial risk.
The charity has in place a Service Level Agreement with R.E.A.L Education Limited that funds the secondment opportunities and services at no cost. This further alleviates financial risk.
The Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
g. Trustees' indemnities
In furtherance of the Articles of the charity:
To provide indemnity insurance to cover the liability of the Trustees (or any Trustee) which by virtue of any rule of law would otherwise attach to them in respect of any negligence default breach of trust or breach of duty of which they may be guilty in relation to the Company Provided that any such insurance shall not extend to any claim arising from any act or omission which the Trustees (or any Trustee) knew to be a breach of trust or breach of duty or which was committed by the Trustees in reckless disregard of whether it was a breach of trust or breach of duty or not and provided that any such insurance shall not extend to the costs of an unsuccessful defence to a criminal prosecution brought against the Trustees (or any Trustee) in their capacity as Trustees (or Trustee) of the Company. Indemnity Insurance provision is made through brokers: Cowans (Mansfield).
Plans for future periods
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To provide resources to develop STEAM (Science, Technology, Engineering, The Arts and Maths) facilities around the East Midlands for disadvantaged students to access quality provision in this field. The development of a Centre of Excellence at Landmarks Centre, Pleasley
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To develop “Freetime” services and facilities;
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To add to the Trustee membership and to broaden the range of expertise;
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To develop further opportunities and broaden the range of fundraising activities;
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To continue to raise the profile of the charity within the East Midlands.
Members' liability
The liability of the Members is limited. Every Member of the Company undertakes to contribute such amount as may be required (not exceeding one pound) to the assets of the Company in the event of its being wound up while he is a member or within one year after he ceases to be a Member for payment of the debts and liabilities of the Company contracted before he ceases to be a Member and of the costs charges and expenses of winding-up and for the adjustment of the rights of the contributories among themselves.
Page 8
RE.AL. FOUNDATION TRUST (A company Ilmlted by guarantee) IRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST2021 Statement of Tru$tO0s' rosponslbllftles Trusle8s {who are also the dir•ctor5 of the Ccynpany for the purposes of company I> are respJnsibFe for preparing the Trustees, rort and the financial statements in accordance with applicabk arKI Unitod lQngdom Accounting Standards (Unrted Kingdom G8nerally Accepted Accounting Praclicel. Company law requires the Trusle8S lo prepare financial ststemenls for each financial year. Under company18W, the TrLtslees musl not approve the financial statements unles5 they are satisfied that they give a true arKI fair view of the slal& of affairs of the Company and of its incoming resources and application of resourcès, including rts inrA)me ar expenditure, for th* kyiol. In pr8paring these Itnancial slal8ments, Ihe Trus188s are requirèd to.. select suitable accounting policies and then apply them consistently., observe th8 rnethods and principles of the Charilvas SORP IFRS 1021,. make judgments and accounting eslimales th81 are reasonable and prudent-, stsla whether applicable UK Accounting Standards IFRS 1021 have been followed, Su"ect to any malorial departures disdosed and explained in the financial slalements-, prepare the finan¢ial Statements on the going concern basis unless 11 is inappropriate to presume th81 the Company will ccnlinue in bJsinoss. The Trustees ar8 responsibl8 for keeping adequate accountirrfJ records that ar? Sufficient lo show and exp18in the Company's transadiMs and disdose wrth reasonable accuracy al any lime the finarrial position of the Company and enabl8 them to ensure that the financial statements comply with the Companies Act 20(K. They are also rèsponsible for safeguarding the ass&ts of the Company and hence for taking r8asonable steps for th8 prevention and detaction of fraud and other irregularities. Approved by ord8r of the members of the board of Truslaes and signed on their behaK by.. MrSF Ryan Dale.. 30 June 2022 Page 9
R.E.A.L. FOUNDATION TRUST
(A company limited by guarantee)
INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 AUGUST 2021
Independent examiner's report to the Trustees of R.E.A.L. Foundation Trust ('the Company')
I report to the Trustees on my examination of the accounts of the Company for the year ended 31 August 2021.
Responsibilities and basis of report
As the Trustees of the Company (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Company's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
This report is made solely to the Company's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Company's Trustees those matters I am required to state to them in an independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Company and the Company's Trustees as a body, for my work or for this report.
Signed: Dated: 30 June 2022 Mike Stevenson
Stevenson & Sons Ltd Grammar School Rd Brigg DN20 8AF
Page 10
R.E.A.L. FOUNDATION TRUST
(A company limited by guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2021
| Note Income from: Donations and grants 2 Charitable activities 3 Total income Expenditure on: Charitable activities 4 Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2021 £ 33,148 43,568 76,716 79,161 79,161 (2,445) 38,665 (2,445) 36,220 |
Restricted funds 2021 £ 46,111 - 46,111 34,478 34,478 11,633 42,777 11,633 54,410 |
Total funds 2021 £ 79,259 43,568 122,827 113,639 113,639 9,188 81,442 9,188 90,630 |
Total funds 2020 £ 175,751 44,125 219,876 864,498 864,498 (644,622) 726,064 (644,622) 81,442 |
|---|---|---|---|---|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 13 to 24 form part of these financial statements.
Page 11
R.EAL. FOUNDATION TRUST IA company limltod by guaranto01 BALANCE SHEET FOR THE YEAR ENDED 31 AUGUST2021 2021 2020 Note Flxed assets Curret7t assets Debtors Cash at bank and in hand 23.760 131,920 42.2B4 94,456 155.680 136, 740 Creditors.. aMntS falling due within one year 10 166,0601 (55,298) Nèt curront a8Sat8 90,630 81.442 Total net assets 90,630 81,442 Charity funds Restricted funds Unrestricted funds 11 11 64410 36.220 42, 777 38,6S5 Total funds 90,630 81,442 The Company was enlilled lo exemption from audit und6r 58Ction 477 of the Companies Act 20C6. The members have not required the company lo obtain an audit for the year in qUestn in accordance with section 476 of Companies Act 20C6. The Tnjstees ackrKJwledge their resKx)nsibilities for complying with the requirements of the Act with resp&¢l lo accounting records and preparation of financial statements. The finanaal statements have been prepared in 8ccord8nce with the provisions applicable to entities 5uty.ect to the small companies regime. The financial slalemenls were approv6d and authorised for issue by thè Truste68 and Signed on their tehalf by.. MrSFRyan Date.. 30 June 2022 The notes on pages 13 to 24 fonn part of these financial slatemenls. Page 12
R.E.A.L. FOUNDATION TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
1. Accounting policies
1.1 Basis of preparation of financial statements
R.E.A.L. Foundation Trust is a private company limited by guarantee and incorporated in the United Kingdom. The address of the registered office is given in the company information of these financial statements. The company's registration number is 07094662 and the charity registration number is 1135811.
The financial statements have been prepared on a going concern basis. 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 2019) - (Charities SORP (FRS 102)) and the Companies Act 2006.
R.E.A.L. Foundation Trust 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.
The financial statements are prepared in Sterling and rounded to the nearest £1.
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.
1.2 Company Status
The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liablity in respect of the guarantee is limited to £1 per member of the company.
1.3 Income
All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Company has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Company, can be reliably measured.
Where the donated good is a fixed asset, it is measured at fair value, unless it is impractical to measure this reliably, in which case the cost of the item to the donor should be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset class and depreciated over the useful economic life in accordance with the Company's accounting policies.
On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the Company which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Page 13
R.E.A.L. FOUNDATION TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
1. Accounting policies (continued)
1.4 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 Company's objectives, as well as any associated support costs.
1.5 Tangible fixed assets and depreciation
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .
Depreciation is provided on the following basis:
- Fixtures and fittings 20% reducing balance/ 10%-33% straight line
1.6 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.
1.7 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.
1.8 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.
1.9 Financial instruments
The Company 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 14
R.E.A.L. FOUNDATION TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
1. Accounting policies (continued)
1.10 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 Company 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 Company 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.
2. Income from donations and grants
| Unrestricted funds 2021 £ Donations 33,148 Grants - Total 2021 33,148 Total 2020 - |
Restricted funds 2021 £ - 46,111 46,111 175,751 |
Total funds 2021 £ 33,148 46,111 79,259 175,751 |
Total funds 2020 £ - 175,751 |
|---|---|---|---|
| 175,751 | |||
3. Income from charitable activites
Income from fundraising events
| Unrestricted funds 2021 £ Golf tournament 9,835 Other - Mansfield 5K - Total 2021 9,835 Total 2020 3,501 |
Total funds 2021 £ 9,835 - - 9,835 3,501 |
Total funds 2020 £ 80 2,591 830 |
|---|---|---|
| 3,501 | ||
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R.E.A.L. FOUNDATION TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
3. Income from charitable activites (continued)
Income from other charitable activites
| Unrestricted funds 2021 £ Rental Income 33,733 Donation from subsidary undertaking - Total 2021 33,733 |
Total funds 2021 £ 33,733 - 33,733 |
Total funds 2020 £ 3,333 37,291 |
|---|---|---|
| 40,624 |
4. Analysis of expenditure by activities
| Charitable activites Total 2020 |
Activities undertaken directly 2021 £ 39,638 853,558 |
Support costs 2021 £ 74,001 10,940 |
Total funds 2021 £ 113,639 864,498 |
Total funds 2020 £ 864,498 |
|---|---|---|---|---|
Analysis of direct costs
| Total | Total | |
|---|---|---|
| funds | funds | |
| 2021 | 2020 | |
| £ | £ | |
| Charitable activites | 39,638 | 853,558 |
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R.E.A.L. FOUNDATION TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
4. Analysis of expenditure by activities (continued)
Analysis of support costs
| Depreciation Donated Management Time Premises Expenses Rent Rates Bank Charges Printing Energy Accountancy Fees Legal and Professional Fees Total 2021 |
Charitable activites 2021 £ - 32,881 131 11,825 4,940 151 207 21,534 1,955 377 74,001 |
Total funds 2021 £ - 32,881 131 11,825 4,940 151 207 21,534 1,955 377 74,001 |
Total funds 2020 £ 19 - 2,008 4,146 - 182 - - 3,035 1,550 |
|---|---|---|---|
| 10,940 |
5. Independent examiner's remuneration
The independent examiner's remuneration amounts to an independent examiner fee of £1,000.
6. Staff costs
The average number of persons employed by the Company, including Trustees, during the year was as follows:
| 2021 | 2020 | |
|---|---|---|
| No. | No. | |
| Trustees | 8 | 3 |
There are no employees directly employed by the company and no Trustees received remuneration amounting to more than £60,000 in either year.
7. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .
During the year, no Trustee expenses have been incurred (2020 - £NIL) .
Page 17
R.E.A.L. FOUNDATION TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
8. Tangible fixed assets
| Cost or valuation At 1 September 2020 At 31 August 2021 Depreciation At 1 September 2020 At 31 August 2021 Net book value At 31 August 2021 At 31 August 2020 Debtors Due within one year Trade debtors Amounts owed by group undertakings Other debtors Prepayments and accrued income |
2021 £ 3,630 - 858 19,272 23,760 |
Fixtures and fittings £ 140 |
|---|---|---|
| 140 | ||
| 140 | ||
| 140 | ||
| - | ||
| - | ||
| 2020 £ - 37,291 - 4,993 42,284 |
9. Debtors
Page 18
R.E.A.L. FOUNDATION TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
10. Creditors: Amounts falling due within one year
| Trade creditors Amounts owed to group undertakings Other creditors Accruals and deferred income Deferred income at 1 September 2020 Resources deferred during the year Amounts released from previous periods |
2021 £ 3,082 - 44,727 17,241 65,050 2021 £ 18,576 - (13,801) 4,775 |
2020 £ 3,371 23,934 - 27,993 |
|---|---|---|
| 55,298 | ||
| 2020 £ - 18,576 - |
||
| 18,576 |
Page 19
R.E.A.L. FOUNDATION TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
11. Statement of funds
Statement of funds - current year
| Unrestricted funds General Funds - all funds Restricted funds Student Enterprise Community Outreach Savoy Trust Sporting Heritage Florence Turner Donations Leicestershire & Rutland Trust Nottinghamshire County Council Persimmon Building Futures Sir John Eastwood Mansfield District Council National Lottery Children in Need Total of funds |
Balance at 1 September 2020 £ 38,665 5,972 1,981 32,410 375 540 1,499 - - - - - - 42,777 81,442 |
Income £ 76,716 - - - - - - 1,960 1,000 3,000 2,000 10,000 28,151 46,111 122,827 |
Expenditure £ (79,161) - - - - - (367) (1,960) (1,000) (3,000) - - (28,151) (34,478) (113,639) |
Balance at 31 August 2021 £ 36,220 |
|---|---|---|---|---|
| 5,972 1,981 32,410 375 540 1,132 - - - 2,000 10,000 - |
||||
| 54,410 | ||||
| 90,630 |
Page 20
R.E.A.L. FOUNDATION TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
11. Statement of funds (continued)
Student Enterprise is a restricted fund for students across the organisation to use in enterprise activities.
Community Outreach is a grant from the Co-Operative for a community initiative to enable students to reach out to isolated pensioners. This is being used to establish regular social events in conjunction with a local care company.
The Savoy Trust donation is funding for the purchase and installation of cafeteria facilities at one of our hubs.
Sporting Heritage is funding for a project to allow our young people to research, collate and display examples of local sporting heritage.
The Florence Turner donation is a donation is for a sports related project in Leicester.
Leicestershire and Rutland donation is a donation for a sports related project in Leicester.
Nottinghamshire County Council's COVID-19 Community fund is funding to support provision of free school meals over lockdown.
Persimmon Building Futures is funding to provide activity resources to equip the Trust's summer camps.
Sir John Eastwood is a grant to support capital costs in refurbishing the Landmark.
Mansfield District Council is a grant to support continued food access to vulnerable families throughout lockdown.
National Lottery is a capital grant to support the development of the outside area at the Landmark.
The Children in Need is funding to support a project called ‘REAL Futures’ comprising of befriending services, holiday clubs, careers support and advice for young people.
Page 21
R.E.A.L. FOUNDATION TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
11. Statement of funds (continued)
Statement of funds - prior year
| Unrestricted funds General Funds - all funds Restricted funds Donations Student Enterprise Community Outreach Savoy Trust Charles Waterfield Donation Sporting Heritage Florence Turner Donation Leicestershire & Rutland Trust Nottinghamshire County Council Total of funds Summary of funds Summary of funds - current year General funds Restricted funds |
Balance at 1 September 2019 £ 114,948 800 6,195 1,981 - 600,000 - 540 1,600 - 611,116 726,064 Balance at 1 September 2020 £ 38,665 42,777 81,442 |
Income £ 6,834 - 142 - 32,410 125,000 375 - - 2,000 159,927 166,761 Income £ 76,716 46,111 122,827 |
Expenditure £ (83,117) (800) (365) - - (725,000) - - (101) (2,000) (728,266) (811,383) Expenditure £ (79,161) (34,478) (113,639) |
Balance at 31 August 2020 £ 38,665 |
|---|---|---|---|---|
| - 5,972 1,981 32,410 - 375 540 1,499 - |
||||
| 42,777 | ||||
| 81,442 | ||||
| Balance at 31 August 2021 £ 36,220 54,410 |
||||
| 90,630 |
12. Summary of funds
Page 22
R.E.A.L. FOUNDATION TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
12. Summary of funds (continued)
Summary of funds - prior year
| Balance at | Balance at | |||
|---|---|---|---|---|
| 1 September | 31 August | |||
| 2019 | Income | Expenditure | 2020 | |
| £ | £ | £ | £ | |
| General funds | 114,948 | 6,834 | (83,117) | 38,665 |
| Restricted funds | 611,116 | 159,927 | (728,266) | 42,777 |
| 726,064 | 166,761 | (811,383) | 81,442 | |
| Analysis of net assets between funds | ||||
| Analysis of net assets between funds | - current year | |||
| Unrestricted | Restricted | Total | ||
| funds | funds | funds | ||
| 2021 | 2021 | 2021 | ||
| £ | £ | £ | ||
| Current assets | 96,495 | 59,185 | 155,680 | |
| Creditors due within one year | (60,275) | (4,775) | (65,050) | |
| Total | 36,220 | 54,410 | 90,630 | |
| Analysis of net assets between funds | - prior year | |||
| Unrestricted | Restricted | Total | ||
| funds | funds | funds | ||
| 2020 | 2020 | 2020 | ||
| £ | £ | £ | ||
| Current assets | 75,387 | 61,353 | 136,740 | |
| Creditors due within one year | (36,722) | (18,576) | (55,298) | |
| Total | 38,665 | 42,777 | 81,442 |
13. Analysis of net assets between funds Analysis of net assets between funds - current year
Page 23
R.E.A.L. FOUNDATION TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
14. Operating lease commitments
At 31 August 2021 the Company 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 Later than 5 years |
2021 £ 29,000 116,000 24,167 169,167 |
2020 £ 12,083 116,000 53,167 |
|---|---|---|
| 181,250 |
15. Members' liability
Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £1 for the debts and liabilities contracted before he/she ceases to be a member.
16. Related party transactions
At 31 March 2022, £238 was due from a company with directors that are close family members of a Trustee.
During the year, the charitable company made purchases of £50,007 from a company with a director that is a close family member of a Trustee. Sales/recharges were made to the company of £69,216. £45,217 was owed to the company at the year end.
17. Controlling party
The Trust is a charity and has an independent board of Trustees. Until 28 June 2021, R.E.A.L. Education Limited was the only member of the Trust and had ultimate control by the powers vested in it by the Trust's constitutional documents. After this date, R.E.A.L. Education Limited ceased to be a member and all Trustees became members of the charitable company under a new constitution.
Page 24