OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

← Breakthrough - Transformation Trust

2023-08-31-accounts

Company registration number: 07962125 Charity registration number: 1148238

Breakthrough - Transformation Trust

(A company limited by guarantee)

Annual Report and Financial Statements

for the Year Ended 31 August 2023

Breakthrough - Transformation Trust

Contents

Reference and Administrative Details 1
Trustees' Report 2 to 14
Strategic Report 8
Independent Auditors' Report 15 to 18
Statement of Financial Activities 19
Balance Sheet 20
Statement of Cash Flows 21
Notes to the Financial Statements 22 to 34

Breakthrough - Transformation Trust Reference and Administrative Details

Trustees Deborah Dugdall Jose Luis De Silva Angus Dugdall Philip Reynolds Simeon Bale Charity Registration Number 1148238 Company Registration Number 07962125 The charity is incorporated in England & Wales. Registered Office Cannamore House Avonwick South Brent Devon TQ10 9HA Auditor Westcotts (SW) LLP 80 Oxford Street Burnham-On-Sea Somerset TA8 1EF

Page 1

Breakthrough - Transformation Trust

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 2023.

Objectives and activities

Public benefit

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Structure, governance and management

Constitution

The charity (Number 1148238) is a company limited by guarantee (Number 07962125), incorporated on 23rd February 2012 and is governed by its Memorandum and Articles of Association. It is administered and led by a Board of Trustees, details of which are given on page 1.

Method of appointment of election of trustees

The management of the charity is the responsibility of the Trustees, who are elected and co-opted under the terms of the Memorandum and Articles of Association.

Trustees are appointed to the Board of Trustees by an open recruitment process, inviting applications with appropriate skills, experience and/or qualifications. The successful applicants are invited to formal Interview in accordance with the Safer Recruitment procedures, (this is applied to all voluntary as well as paid positions within the organisation) with the Trustees prior to their appointment at a Board Meeting.

Policies adopted for the induction and training of trustees

All newly appointed Trustees meet with the Trustees and are introduced to the Centres of Operation. They meet with staff and are given a reading list of relevant documentation, policies, systems and procedures. There is an expectation that Trustees will, where possible, visit centres to meet with staff and students, to do learning walks and to check on records and documentation.

Page 2

Breakthrough - Transformation Trust

Trustees' Report

Organisational structure and decision making

The Board of Trustees are responsible for agreeing the strategic direction of the organisation, ratifying policy and ensuring compliance with internal governance and external regulations and legislation.

The Board of Trustees convenes regularly and where required for extraordinary meetings.

Day-to-day management of the organisation is delegated to the Chief Executive and thereafter to the Executive Team. The Executive Team is defined as the Chief Operations Officer, and the Chief Finance Officer.

The charity operates broadly in four areas: therapeutics, families, education, and business.

• Business is overseen by the Chief Executive Officer and work experience is overseen by the Head of Therapeutic Education.

The charity has been operating out of four centres in Devon and also works in the community using public buildings, and where appropriate makes visits to homes.

Health and safety

Health and Safety (H & S) is a top priority at Breakthrough - Transformation Trust. There is a trained Health and Safety Trustee and also a trained Health and Safety Lead who reports to the Chief Executive Officer, and who oversees all areas of operation, in all locations, for the organisation. Each individual centre has its own Health and Safety Representative. The H & S Lead has revised and, where necessary, re-written policies and has been involved in training the new policies into each of the centres.

Page 3

Breakthrough - Transformation Trust

Trustees' Report

Safeguarding

As an organisation, Breakthrough - Transformation Trust takes its duty to safeguard all in its care to the highest possible standards.

Safeguarding is overseen by Strategic Manager for SEND, who is also the Designated Safeguarding Lead for the organisation. The organisation trains all staff including new recruits, to Group 2 Level in Safeguarding, during induction and refreshing annually. In addition they all train in Keeping Children Safe in Education (KCSIE), Prevent Strategy and Female Genital Mutilation. . There has customarily been a group of 5 staff including one trustee, who have been trained to Group 3 Level in Safeguarding. The intention is to increase the number of Group 3 Level trained staff to 12 and training for this has begun.

In the last year, the Strategic Lead for SEND and Safeguarding has appointed a Deputy Designated Safeguarding Lead in each of our Centres. They are one and the same person as the SEND Support staff - please see paragraphs below.

In October and November 2022 we opted as an organisation to undergo a root and branch inspection of Safeguarding throughout the organisation. This was undertaken by Lara Stead, the Education Safeguarding Officer of Babcock on behalf of the Local Authority. Evidence was taken for all four centres, Cannamore Farm, Brocks Farm, Lilcott Farm and The Lighthouse. It sought to review all record-keeping systems and procedures, including safer recruitment and safeguarding logs. There was also a physical inspection, taking a site walk on each site and conversations with students to see if they felt safe, listened to and whether they knew to whom to report in the event of a safeguarding disclosure. The report concluded that at each centre, as well as within central management, overall the results were very good. There was acknowledgement of the rigour and accuracy which the Designated Safeguarding Lead and her team had carried out their duties. We were given considerations about what we might add to the safeguarding and strategic development plan.

Special Educational Needs and Disabilities

In the previous year (2021-2022) we increased our SEND Team with the addition of SEND Support staff at each centre. This was very successful, and in the year 2022-2023, this resulted in greater efficiency in carrying out reviews and in the ability to keep up with the ever growing volume of paperwork. In particular, internal monitoring was increased and a comprehensive range of detailed reporting became available which evidences all layers of engagement within the organisation.

Page 4

Breakthrough - Transformation Trust

Trustees' Report

Mental Health

Mental Health has been front and centre of the organisation. The Strategic Lead for Mental Health has now recruited two Counsellors originating from outside the organisation and one Counsellor who has been trained to Level 4 in Counselling within the organisation. They operate across all the centres. In addition, the SL for Mental Health has appointed and trained Mental Health Assistants from within the pool of existing staff. This has considerably up-graded our response to Mental Health, to our response to and our capacity to provide recovery from Trauma. Many of our students have experienced complex trauma, both from their life circumstances and from their own cognitive neuropsychological presentations. Equipping the organisation with highly qualified and experienced Mental Health practitioners is paving the way for next year’s focus to be on Mental Health.

Specialist Interventions

The SL for Mental Health has also overseen the practice of our Specialist Intervention Practitioner (SIP), who is a qualified AIM3 Assessor. The SP is tasked with relevant interventions for High Risk Behaviours as well as being able to assess and respond to Harmful Sexualised Behaviours in a bespoke manner, depending on the needs and circumstances of the student and their family or care setting.

This now means that this organisation has a range of highly qualified specialisms and appropriate interventions to respond to and to help to treat the most challenging behaviours.

UK Government changes in Education and Social Care

On 29th March, 2022, the Department for Education and Department of Health and Social Care published their Consultation Outcome: ‘SEND review: right support, right place, right time. In March 2023, the Green Paper was published, setting out bold proposals to deliver a generational change for a more inclusive system.

At Breakthrough we offer Alternative Provision for a small number of pre-16 age children. They spend up to 15 hours a week in our provision under the statutory oversight of their schools or the statutory oversight of the 0-25 SEND Team if they are Educated Other Than At School (EOTAS). The main part of our work is commissioned by Local Authorities for children and young people over the age of 16 and as such we may be described as a type of Specialist SEND College. The changes at Government level, plus very significant changes within the Local Authority, resulting in the movement of education support services from March, Babcock into Devon Education Services, meant that as an organisation, we needed to be responsible to change and to make sure that our already high quality provision keeps in step with changes in an appropriate and efficient way.

Throughout the whole of the past year, we explored and subsequently planned to become registered under Section 41 of the Children and Families Act 2014. This would make us visible on the ‘Local Offer’ for post-16 children and young people with Education Health Care Plans (EHCPs) and would qualify us for inspection by the Department for Education. This is due to come into effect on 1st September 2023.

Page 5

Breakthrough - Transformation Trust

Trustees' Report

Sale of Lilcott Farm

We have been operating out of Lilcott Farm in North Devon for the past two years, where we have been providing services for post-16 young people and their families or care settings. With the introduction of new Government policy mentioned in the section above, together with the onset of major changes within the Local Authority and a significant number of our service users receiving input and education from us in the community rather than travelling in to the centre, it gradually became obvious that running a physical centre in North Devon would not continue to be necessary. We are able to meet needs in the community very effectively from South Devon centres. Therefore, we closed the centre at the end of the Academic year in mid-July. Sadly this meant that we needed to make a number of staff redundant, both from Lilcott Farm and also a small number of central staff, although some central staff members still continue to work with us from North Devon, regularly travelling south. This is working extremely well and has been well received by the staff involved. The timely decision-making and subsequent efficient and precisely executed actions, has meant that our actions have strengthened and consolidated our organisation and ensured the continued high quality of our offer.

South Devon Centres

Our South Devon Centres have continued to receive a steady flow of new students and most existing students are continuing their courses with us. Development of the estates has continued, with increased facilities and with ongoing repairs and maintenance of facilities and grounds.

The Organisation

All the above changes, including obtaining Section 41 Registration will put us in a strong position going forwards.

Therefore we continue:

• To provide therapeutic interventions, education, independent living skills and a robust transition into education, employment, training, volunteering and/or supported living.at the end of the student’s time at Breakthrough

Our purpose

To progress our provision to be inclusive of and to address more needs within the locality and to provide services and interventions where these are not currently in place. To establish our presence in the locality so that those in need know where to come for help.

Page 6

Breakthrough - Transformation Trust

Trustees' Report

Our vision

This charity exists to empower and equip individuals and families who experience serious life challenges to take competent charge of their lives and to be able to contribute effectively and positively to the wider community.

Our core values

Unconditional love

To accept people as they are To be inclusive and non-judgmental To be kind and compassionate, in all we think and say To speak excellence into people's lives To give every student a fresh start each day

Total Commitment

To be the best that we can be

To reflect together to analyse and improve practice through concepts, skills and attitudes To encourage each other

To create a ‘functional family’ feel within the organisation

Professionalism

To give our personal best To recognise professional excellence and practice lifelong learning To accept support from and offer support to colleagues, building and maintaining a unified team To be flexible and patient

To make a difference and leave a powerfully supportive legacy

Page 7

Breakthrough - Transformation Trust

Trustees' Report

Strategic Report for the Year Ended 31 August 2023

Meeting needs of service users

The charity has maintained the uptake of its services in the years 2022-2023. The recent redundancies have been very carefully and deliberately decided in order not to make any deleterious ‘arterial’ cuts to the scope and quality of our services.

The ending of Covid restrictions has brought its challenges for some students, who found it a trigger for anxiety as they began to come out of their homes after lockdown and there has been a detailed and significant amount of work which has been undertaken by the Families’ Team and by Counsellors, who are now allocated to each centre. It does not cease to be an important aspect of the work of Families’ Workers and Practitioners to bridge the gap between the desire some parents have to avoid the harder parts of parenting and the need for parents to be able to assert the need and model the confidence to their children that it is safe to come in to college. With the addition of Counselling, this has strengthened and up-skilled this area of our service.

Training

The Board of Trustees would like to record its appreciation of the commitment to the charity of all staff and volunteers.

Breakthrough Transformation Trust is committed to investing in staff training and development throughout all departments. The team provides professional and personal development courses throughout each year, both through internal training and external nationally recognised qualifications. Where appropriate, the charity also engages with external training suppliers to provide courses. This is particularly important for areas of high accountability such as Control and Restraint, First Aid, Fire Marshalling, Group 3 Safeguarding and Health and Safety.

Breakthrough recognises its social and statutory duty to employ persons with additional needs and individuals on Government-assisted work schemes wherever possible and strategic planning has been rolled out to assist in providing openings for these within the organisation.

Our supporters in the community

In addition to the help mentioned in the previous paragraph, the charity has during the period in question, received regular donations from independent supporters. There have also been a number of one- off donations. We would like to express our sincere thanks to everyone who has participated in this support.

Page 8

Breakthrough - Transformation Trust

Trustees' Report

Strategic Report for the Year Ended 31 August 2023

Achievements and performance

In setting objectives and planning activities for the year, the Trustees gave careful consideration to ensuring that the charity's activities are to the public benefit, having due regard to the guidance issued by the Charity Commission.

  1. Delivery of excellent practice to those whom we serve through therapeutics, families work, education, and within the community - through measurement, reflective practice, and completion of inspections and audits.

  2. Provision of excellent value for money for commissioners, providing a high-quality service, where the quality of teaching and learning, of therapeutic interventions, of assessment, progression and transition, and every aspect of the service is monitored through a Quality of Provision process which will undergo root and branch restructuring now and be developed throughout the next academic year.

  3. The three South Devon centres provide a broad spectrum of therapeutic and educational services and this is resulting in noticeable progress which is being reported via our systems and procedures.

  4. Independent Living Skills has been developed across the organisation, being pivotal for students’ ability to live lives that are as independent, safe and well-informed as possible. Students are assessed using two nationally recognised assessment tools and skills are taught to them to address their own most pressing needs. We are then able to transition students who will need continued support into Adult Social Care.

  5. A range of therapeutic interventions has been in operation alongside the Mental Health suite of practices, to include Speech and Language Therapy, Complex Communications, Occupational Therapy and the therapeutic use of the art, music and singing.

  6. The charity is mindful of its need to be relevant in the sector and the Directors and Senior Leadership Team liaise with the Local Authorities and receive regular updates from Stakeholders and Government.

  7. We are increasingly aware of the political agenda for Alternate Provisions in the light Government policy.

  8. We are working closely with our commissioners to meet the needs of students in the most cost effective way at the same time as maintaining our high standards and the integrity of our provision.

  9. We are mindful of the need for the improvement and development of our facilities and additional office facilities

a. To continue to repair and maintain all buildings

b. To liaise with the Heads of Centre to ensure that there is adequate high quality space for learning and therapeutic interventions

c. To continue to develop enhanced outdoor facilities at all centres

d. Updating hardware and software for IT facilities

e. Increased provision of musical instruments and resources

f. Provision of learning resources

g. Replacement of old vehicles beyond repair and provision of extra second-hand cars as pool vehicles for the transportation of service users

Page 9

Breakthrough - Transformation Trust

Trustees' Report

Strategic Report for the Year Ended 31 August 2023

Financial review

The results for the year are shown on page 19. The total income for the year is £3,929,207 (2022: £4,076,482) and the total expenditure is £4,269,814 (2022: £3,743,467) which gives a net movement of funds of (£340,607) (2022: £333,015). The unrestricted fund balance at 31 August 2023 is £1,573,319.

The principal source of funding is via Element 3, which is the funding required over and above the place funding to enable a child with high needs to participate in education and learning and covers education, health, and care. The majority is commissioned by Devon County Council.

Reserves policy

Reserves are required in order that the charity is protected against future events, known and unknown and is able to maximise future opportunities and weather any future challenges that could possibly arise.

The charity has a long-term commitment to participant service users and it requires long-term plans. The charity's short-term commitment is up to 1 term; medium-term commitment to be up to 2 terms and long-term commitment to be 3 terms or longer (many courses for post-16 require at least two years to complete the syllabus.

Where it is deemed correct and right to place an individual within our service, it is usual that the Devon County Council 0-25 Special Educational Needs Team, together with, or independent from Devon County Council Children or Adult Social Services will commit to educate them for at least the remainder of that Academic Year, and usually beyond that time. Most young people are commissioned to be with the charity for three days a week, and rarely for more days than this, but the same principle normally applies. Therefore, there is some stability of income during the Academic Year.

The benefit of a reserves Policy is:

• To assist in strategic planning, for example, considering how new projects or activities will be funded

• To inform the budget process, for example, is it a balanced budget, or do reserves need to be drawn down or built up?

• To inform the budget and risk management process by identifying any uncertainty in future income streams

• To demonstrate to beneficiaries, donors, funders and the wider public that the charity is being protected from future challenges and changes in economic circumstances

Page 10

Breakthrough - Transformation Trust

Trustees' Report

Strategic Report for the Year Ended 31 August 2023

Guiding principles to justify the level of reserves and their use:

• To protect and sustain the charity's activities should income or expenditure become seriously out of line with expectations

• To have a level of funds available to support the payment of mortgages and staff wages in the event of having to downsize the services of the charity while seeking further funding

• To have a sufficient level of funds available to support new long term charitable initiatives in their launch phase and before fundraising support can be fully realised.

Level of Reserves to meet policy objectives:

• To avoid closure if funding difficulties were to happen, the Board of Trustees has agreed to keep a certain level of financial reserves to ensure that all charitable activities can continue for a period of three months. The main concerns are to ensure: that staff can continue working, primarily to secure new funding, and that as a last resort, beneficiaries are supported to move on to other services. It has been calculated that reserves of £535,000 are sufficient to cover staff wages plus our mortgage commitment for 2 months. This reserve would be made up in the ratio 1 part cash reserves and 2 parts equity from property owned by the charity. Given the level of reserves at the year end of £1,573,319 this is deemed achievable.

• It is anticipated that should such an event take place, during the period of grace provided by the existence of reserves, that the activities of the charity may be re-designed.

• If strategic cash reserves fall below £100,000 that would trigger an immediate review of income and expenditure to ensure no further cash loss.

Strategic considerations on the level of reserves:

To support long term strategic objectives and improve the charity's overall financial security, in the event of the negative impact of any financial challenges, the Board of Trustees have agreed to review reserves annually, streamlining expenditure, and not detracting from the quality, quantity or nature of the service.

Investment policy and performance

The charity continues where possible to invest in the upgrading and development of its properties so that there is more room for the demand which it is experiencing for its services. Reserves are required to be held in an account with quick, penalty-free availability in order that we should be able to purchase and install safety features at Brocks Farm.

Future investments will be strategically planned after consultation with financial advisors.

Page 11

Breakthrough - Transformation Trust

Trustees' Report

Strategic Report for the Year Ended 31 August 2023

Attitude to risk:

Breakthrough Transformation Trust relies on its income from commissioners to support operating costs. The key risks to the long-term sustainability of the charity are:

(i) changes in Government policy regarding non-registered Alternative Provision - this will be mitigated by our becoming an Independent specialist College in September 2023.

(ii) changes in Central Government or Local Government regulations which would adversely affect a funding stream

(iii) ensuring that Element 3 Funding costs are accurately calculated

(iv) catastrophic mishandling of funds or fraud

(v) a catastrophic safeguarding or health and safety breach, which would call into question the trustworthiness and competence of the charity

(vi) a catastrophic global event such as a pandemic which may result in a range of irreversible staffing deficits; loss of students through sickness or a long period of time whereby college would be closed and therapeutic education and families work adversely affected.

• Strict measures are in place so that Trustees work together with Accountants, Auditors and external advisers to mitigate financial risks.

• Strict measures are in place so that there are sufficient members of staff and directors who can ensure safeguarding and health and safety are maintained to the highest possible standards, to review and analyse data and to train, refresh and improve facilities and resources accordingly.

Time Horizon

The Board of Trustees of Breakthrough Transformation Trust have the intention that the charity should exist into perpetuity and that investments and funds should be handled wisely so that it can both develop and consolidate reliably. Therefore, it is intended to adopt a long-term investment time horizon.

Reviewing and Reporting

The Trustees will regularly consider whether there is a need to revise its Policy Statement and keep under review the arrangements under which finances are invested.

The charity has now grown to the point at which, subject to income remaining in the current regions, a yearly Audit is required.

Events after the end of the reporting period

Particulars of events after the reporting date are detailed in note 25 to the financial statements.

Page 12

Breakthrough - Transformation Trust

Trustees' Report

Statement of trustees' responsibilities

The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.

In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the applicable Charities SORP;

• make judgments and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

Each of the persons who is a trustee at the date of approval of this report confirms that:

• so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and

• they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.

The trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Page 13

Breakthrough - Transformation Trust

Trustees' Report

Small companies provision statement

This report has been prepared in accordance with the small companies regime under the Companies Act 2006.

The annual report was approved by the trustees of the charity on 25 April 2024 and signed on its behalf by:

......................................... Deborah Dugdall Trustee

......................................... Philip Reynolds Trustee

Page 14

Breakthrough - Transformation Trust

Independent Auditor's Report to the Members of Breakthrough - Transformation Trust

Opinion

We have audited the financial statements of Breakthrough - Transformation Trust (the 'charity') for the year ended 31 August 2023, 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).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 the provisions available for small entities, in the circumstances set out in note to the financial statements, 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.

Page 15

Breakthrough - Transformation Trust

Independent Auditor's Report to the Members of Breakthrough - Transformation Trust

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.

Opinion on other matter 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 charity 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 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 13), 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 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.

Page 16

Breakthrough - Transformation Trust

Independent Auditor's Report to the Members of Breakthrough - Transformation Trust

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:

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.

Page 17

Breakthrough - Transformation Trust

Independent Auditor's Report to the Members of Breakthrough - Transformation Trust

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. 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.

...................................... David Wright (Senior Statutory Auditor) For and on behalf of Westcotts (SW) LLP, Statutory Auditor

80 Oxford Street Burnham-On-Sea Somerset TA8 1EF

2 May 2024

Page 18

Breakthrough - Transformation Trust

Statement of Financial Activities for the Year Ended 31 August 2023 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
4
Investment income
5
Other income
6
Total income
Expenditure on:
Charitable activities
7
Total expenditure
Net (expenditure)/income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£
1,140
3,908,622
1,137
18,308
3,929,207
(4,269,814)
(4,269,814)
(340,607)
(340,607)
1,913,926
1,573,319		 Total
2023
£
1,140
3,908,622
1,137
18,308
3,929,207
(4,269,814)
(4,269,814)
(340,607)
(340,607)
1,913,926
1,573,319		 Total
2022
£
3,991
4,069,704
30
2,757
4,076,482
(3,743,467)
(3,743,467)
333,015
333,015
1,580,911
1,913,926

All of the charity's activities derive from continuing operations during the above two periods.

The notes on pages 22 to 34 form an integral part of these financial statements. Page 19

Breakthrough - Transformation Trust

(Registration number: 07962125) Balance Sheet as at 31 August 2023

Note
Fixed assets
Tangible assets
13
Current assets
Debtors
14
Cash at bank and in hand
15
Creditors: Amounts falling due within one year
16
Net current liabilities
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
17
Net assets
Funds of the charity:
Unrestricted income funds
Unrestricted funds
Total funds		 2023
£
3,059,797
18,945
181,738
200,683
(407,086)
(206,403)
2,853,394
(1,280,075)
1,573,319
1,573,319
1,573,319		 2022
£
3,796,146
56,288
333,380
389,668
(602,607)
(212,939)
3,583,207
(1,669,281)
1,913,926
1,913,926
1,913,926

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

The financial statements on pages 19 to 34 were approved by the trustees, and authorised for issue on 25 April 2024 and signed on their behalf by:

......................................... Deborah Dugdall Trustee

......................................... Philip Reynolds Trustee

The notes on pages 22 to 34 form an integral part of these financial statements. Page 20

Breakthrough - Transformation Trust

Statement of Cash Flows for the Year Ended 31 August 2023

Note
Cash flows from operating activities
Net cash (expenditure)/income
Adjustments to cash flows from non-cash items
Depreciation
Investment income
5
Profit on disposal of tangible fixed assets
Working capital adjustments
Decrease/(increase) in debtors
14
(Decrease)/increase in creditors
16
Net cash flows from operating activities
Cash flows from investing activities
Interest receivable and similar income
5
Purchase of tangible fixed assets
13
Sale of tangible fixed assets
Net cash flows from investing activities
Cash flows from financing activities
Repayment of loans and borrowings
16
Net decrease in cash and cash equivalents
Cash and cash equivalents at 1 September
Cash and cash equivalents at 31 August		 2023
£
(340,607)
93,335
(1,137)
(18,308)
(266,717)
37,343
(172,855)
(402,229)
1,137
(94,592)
755,914
662,459
(411,872)
(151,642)
333,380
181,738		 2022
£
333,015
96,626
(30)
(1,475)
428,136
(41,123)
43,871
430,884
30
(1,158,709)
5,325
(1,153,354)
436,063
(286,407)
619,787
333,380

All of the cash flows are derived from continuing operations during the above two periods.

The notes on pages 22 to 34 form an integral part of these financial statements. Page 21

Breakthrough - Transformation Trust

Notes to the Financial Statements for the Year Ended 31 August 2023

1 Charity status

The charity is limited by guarantee, incorporated in England & Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

The address of its registered office is: Cannamore House Avonwick South Brent Devon TQ10 9HA

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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

Breakthrough - Transformation 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 notes.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.

Page 22

Breakthrough - Transformation Trust

Notes to the Financial Statements for the Year Ended 31 August 2023

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal related actual outcome.

Incoming resources

All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

Page 23

Breakthrough - Transformation Trust

Notes to the Financial Statements for the Year Ended 31 August 2023

Expenditure

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Tangible fixed assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amount are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

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

Freehold property 1% straight line Plant and machinery 25% reducing balance Fixtures and fittings 20% straight line Motor vehicles 25% reducing balance

Page 24

Breakthrough - Transformation Trust

Notes to the Financial Statements for the Year Ended 31 August 2023

Impairment of fixed assets

A review of indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

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.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Fund structure

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

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.

Page 25

Breakthrough - Transformation Trust

Notes to the Financial Statements for the Year Ended 31 August 2023

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.

3 Income from donations and legacies

Donations and legacies;
Donations from individuals		 Unrestricted
funds
General
£
1,140
1,140		 Total
2023
£
1,140
1,140		 Total
2022
£
3,991
3,991

4 Income from charitable activities

Service fees
Student lunches
Other income		 Unrestricted
funds
General
£
3,898,763
7,759
2,100
3,908,622		 Total
2023
£
3,898,763
7,759
2,100
3,908,622		 Total
2022
£
4,061,259
8,208
237
4,069,704

Page 26

Breakthrough - Transformation Trust

Notes to the Financial Statements for the Year Ended 31 August 2023

5 Investment income

Interest receivable and similar income;
Interest receivable on bank deposits
6
Other income
Gains on sale of tangible fixed assets for charity's
own use
Solar power income
7
Expenditure on charitable activities
Note
Activities undertaken directly
Support costs
Governance costs
8		 Unrestricted
funds
General
£
1,137
Unrestricted
funds
General
£
18,308
-
18,308
Unrestricted
funds
General
£
3,236,039
962,452
71,323
4,269,814		 Total
2023
£
1,137
Total
2023
£
18,308
-
18,308
Total
2023
£
3,236,039
962,452
71,323
4,269,814		 Total
2022
£
30
Total
2022
£
1,475
1,282
2,757
Total
2022
£
2,785,093
903,275
55,099
3,743,467

Page 27

Breakthrough - Transformation Trust

Notes to the Financial Statements for the Year Ended 31 August 2023

8 Analysis of governance and support costs

Support costs allocated to charitable activities

Wages and salaries
Staff NIC (Employers)
Trustees remuneration
Recruitment expenses
Staff training
Rent
Light, heat and power
Telephone
Office expenses
Subscriptions and licences
Sundry expenses
Motor expenses
Travel and subsistence
Student and exam expenses
Bank charges
Bank interest payable
Depreciation
Governance costs
Audit fees
Audit of the financial statements
Other fees paid to auditors
Legal fees		 Analysis of
support
costs
£
367,612
36,106
62,084
7,999
39,808
33,200
60,995
20,039
27,562
6,154
14,007
45,047
37,262
6,520
936
103,786
93,335
962,452
Unrestricted
funds
General
£
12,350
7,000
51,973
71,323		 Total
2023
£
367,612
36,106
62,084
7,999
39,808
33,200
60,995
20,039
27,562
6,154
14,007
45,047
37,262
6,520
936
103,786
93,335
962,452
Total
2023
£
12,350
7,000
51,973
71,323		 Total
2022
£
350,544
34,768
60,100
25,543
41,178
58,183
47,241
10,407
30,868
5,499
12,175
40,423
38,891
4,341
614
45,874
96,626
903,275
Total
2022
£
7,500
7,500
40,099
55,099

Page 28

Breakthrough - Transformation Trust

Notes to the Financial Statements for the Year Ended 31 August 2023

9 Trustees remuneration and expenses

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

received remuneration of £193,000 (2022: £185,300) and £2,171 (2022: £2,701) of expenses were reimbursed to during the year.

Further details on the above transactions are provided on Note 21.

10 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs
Trustees wages		 2023
£
2,906,898
265,053
62,119
193,000
3,427,070		 2022
£
2,449,219
222,500
48,428
185,300
2,905,447

The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:

Trustees
Teachers
Core Workers
Families
Therapy
Administration		 2023
No
3
58
38
6
13
17
135		 2022
No
3
38
58
-
7
19
125

During the year, the charity made redundancy and/or termination payments which totalled £44,889 (2022 - £Nil).

The number of employees whose emoluments fell within the following bands was:

£60,001 - £70,000 2023
No
3		 2022
No
3

The total employee benefits of the key management personnel of the charity were £516,127 (2022 - £491,899).

Page 29

Breakthrough - Transformation Trust

Notes to the Financial Statements for the Year Ended 31 August 2023

11 Auditors' remuneration
Audit of the financial statements
Other fees to auditors
Other fees paid to auditors		 2023
£
12,350
7,000		 2022
£
7,500
7,500

Page 30

Breakthrough - Transformation Trust

Notes to the Financial Statements for the Year Ended 31 August 2023

12 Taxation

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

13 Tangible fixed assets

Cost
At 1 September
2022
Additions
Disposals
At 31 August
2023
Depreciation
At 1 September
2022
Charge for the
year
Eliminated on
disposals
At 31 August
2023
Net book value
At 31 August
2023
At 31 August
2022		 Land and
buildings
£
3,900,591
46,598
(748,958)
3,198,231
267,454
31,983
(14,295)
285,142
2,913,089
3,633,137		 Furniture
and
equipment
£
268,970
25,399
(940)
293,429
134,986
49,147
(812)
183,321
110,108
133,984		 Motor
vehicles
£
55,155
21,345
(6,675)
69,825
26,130
11,892
(3,860)
34,162
35,663
29,025		 Biological
assets
£
-
1,250
-
1,250
-
313
-
313
937
-		 Total
£
4,224,716
94,592
(756,573)
3,562,735
428,570
93,335
(18,967)
502,938
3,059,797
3,796,146

The disposal of Land and Buildings in the year relates to the sale of Lilicott farm, as detailed in the Trustee’s report.

The properties held by the charity were revalued in September 2019 by Barclays, an independent valuer. At the date of the valuations, it was determined that the market values of the properties were below the net book value recognised within the financial statements. This incurred an impairment loss in 2019 of £125,476 which was recognised in the Statement of Financial Activities. Following the revaluation, further additions have been made to the properties and these are recognised at cost.

Page 31

Breakthrough - Transformation Trust

Notes to the Financial Statements for the Year Ended 31 August 2023

14 Debtors

Trade debtors
Prepayments
15 Cash and cash equivalents
Cash on hand
Cash at bank
16 Creditors: amounts falling due within one year
Bank loans
Trade creditors
Other taxation and social security
Other creditors
Accruals		 2023
£
1,686
17,259
18,945
2023
£
599
181,139
181,738
2023
£
66,456
19,627
10,353
284,993
25,657
407,086		 2022
£
39,719
16,569
56,288
2022
£
392
332,988
333,380
2022
£
89,122
31,380
69,736
391,062
21,307
602,607

17 Creditors: amounts falling due after one year

Bank loans

2023 2022
£ £
1,280,075 1,669,281

Included within creditors: amounts falling due after more than one year is an amount of £1,014,252 (2022: £1,312,793) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.

There were four commercial bank loans at the beginning of the year, first one for £411,781 maturing in 2035, second one for £490,071 maturing in 2037, third one for £356,882 maturing in 2041 however this was fully paid off in the year and the fourth one for £499,669. The interest rate is approximately 3.25% per annum on the first two loans and approximately 3% per annum one the final loan still held at the year end.

All loans are secured on the freehold properties.

Page 32

Breakthrough - Transformation Trust

Notes to the Financial Statements for the Year Ended 31 August 2023

18 Obligations under leases and hire purchase contracts

Operating lease commitments

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

Within one year
Between one and five years		 2023
£
1,897
3,257
5,154		 2022
£
28,028
844
28,872

19 Analysis of net assets between funds

Tangible fixed assets
Current assets
Current liabilities
Creditors over 1 year
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Creditors over 1 year
Total net assets		 Unrestricted
funds
General
£
3,059,797
200,683
(407,086)
(1,280,075)
1,573,319
Unrestricted
funds
General
£
3,796,146
389,668
(602,607)
(1,669,281)
1,913,926		 Total funds
at 31 August
2023
£
3,059,797
200,683
(407,086)
(1,280,075)
1,573,319
Total funds
at 31 August
2022
£
3,796,146
389,668
(602,607)
(1,669,281)
1,913,926

Page 33

Breakthrough - Transformation Trust

Notes to the Financial Statements for the Year Ended 31 August 2023

20 Financial instruments

Categorisation of financial instruments

Categorisation of financial instruments
2023
£
Financial assets that are debt instruments measured at amortised cost
Financial assets that are debt instruments measured at amortised
cost
1,686
Financial liabilities measured at amortised cost
Financial liabilities measured at amortised cost
1,651,151		 2022
£
39,719
2,180,845

21 Related party transactions

During the year the charity made the following related party transactions:

Three of the trustees and a number of their family members were employed by the charity, some of which are at a senior management level. The trustees' remuneration, pension contributions and other benefits amounted to £193,000 (2022 - £185,300). The three trustees remunerated for their employment with the charity were Mrs D Dugdall, Mr A Dugdall and Mr P Reynolds. At the balance sheet date the amount due to/from was £Nil (2022 - £Nil).

22 Analysis of changes in net debt

Cash at bank and in hand
Debt due within one year
Debt due after one year
Cash at bank and in hand
Debt due within one year
Debt due after one year		 At 1 Sep 2022 Cash flows At
31
Aug
2023
333,380
(151,642)
181,738
(89,122)
22,666
(66,456)
(1,669,281)
389,206
(1,280,075)
1,425,023
(260,230)
1,164,793
At 1 Sep 2021 Cash flows At
31
Aug
2022
619,787
(286,407)
333,380
(65,267)
(23,855)
(89,122)
(1,257,073)
(412,208)
(1,669,281)
702,553
722,470
1,425,023

Page 34