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← Redstart Educate

2023-12-31-accounts

Confidential

Registered in England and Wales (1170297) and Scotland (SC050276). Registered Office: 91 Charterhouse Street London EC1M 6HR, United Kingdom.

Confidential

Trustees’ annual report 2023

Thank you for opening our Trustees’ Report which covers RedSTART’s financial statement for the year ending on 31 December 2023. Our trustees have adopted the provisions of accounting and reporting in the Charities Statement of Recommended Practice.[1] Each year, we follow the Charity Commission’s guidance on public benefit when we set our strategy. Our trustees aim to ensure that RedSTART’s activities remain in line with our charitable aims.

1This applies to charities preparing their accounts in accordance with the Financial Reporting Standard in the UK and Republic of Ireland (FRS 102), effective 1 January 2019.

Confidential

Executive summary

Our ambition is to change the game for children’s financial education in the UK. We are committed to demonstrate to the government, backed by evidence, that teaching primary school children about money boosts financial literacy and enhances maths attainment. Furthermore, it builds confidence as they grow and begin to associate money with earning and the world of work.

In 2023, we furthered these ambitions and extended our reach. We delivered effective financial education to primary school children from communities of greater disadvantage across the UK, by:

2Each participating school must have an Index of Multiple Deprivation level of 5 or below.

Confidential

What does RedSTART do?

RedSTART gives the UK’s most disadvantaged children a head start on their financial futures.

We aim to provide financial education to transform the life chances of young people across the country. We do this in partnership with major financial institutions, local businesses and over 600 volunteers in seven key locations across the UK.

As a first step, we want financial education to be on the school curriculum in England, just as it is in the rest of the devolved nations of the UK.

It doesn’t end there though. We find that even where financial education is already on the curriculum, it isn't delivered consistently. We aim to help by developing a tried-and-tested blueprint for effectively implementing it in primary schools. Furthermore, we plan to offer various models to scale up the programme, which the government could adopt.

Getting a head start means starting early. Through seven years of primary school, we foster and track pupils’ development, running programmes and providing resources for teachers and parents. We teach children progressively, building on previous years’ knowledge.

We teach them how to earn, save, and grow money. They are also taught how to avoid debt traps and remain in control, so they can make informed decisions in the future. They are encouraged to think about how they will earn money and the opportunities that exist in the world of work.

We aim to close the charity down once our objectives are met, targeting 2030 for completion.

Confidential

Our achievements in 2023

We built on the momentum from 2022 and delivered on all our key objectives for 2023. Here are some of the highlights:

Supporting more schools and working with more year groups

By the start of the 23/24 academic year, we expanded the Change the Game programme from 45 to 61 schools across England, Scotland, and Wales, with a new hub in Cardiff. All schools also participated in the King’s College London (KCL) longitudinal study. Edinburgh City Council approved the programme, adding three schools in 2023, but later withdrew citing the study's paperwork and parental permissions as too onerous. A Sussex school which was set to close in summer 2024 also left the programme. By the end of the 23/24 year, 57 schools remained in the programme and study, still a sizeable increase of 13 schools.

We delivered 347 school-based activities and workshops in the 23/24 academic year, including 85 Year 6 workshops held in corporate offices, university campuses, city council offices, sports venues, and other workplaces.

We have extended the programme beyond what was delivered in the 22/23 academic year, to include a Year 2 workshop, as well as resources and activities for Year 1 and Reception. We now begin in Reception with the “Save Your Acorns” book, written by our co-founder and Trustee, Rob Gardner. The children read the book in class and act out the story using cuddly animal characters. At the end of the year, each child takes home a copy of the book, along with coloured crayons, a wooden squirrel to colour, and a cardboard crown of squirrels to remind them to save their “acorns.”

The new Year 1 activity is a board game based on the “Save Your Acorns” book and follows the theme of “saving your acorns”.

The Year 2 workshop was originally a school activity, but it became clear that, given the children’s age, teachers needed additional support from volunteers to achieve results. We changed the format and the new workshop includes a board game for tracking money, designing a superhero within a budget, choosing between spending and saving while understanding diverse choices, and evaluating the costs of various items.

Our Change the Game programme is a 7-year evaluation in partnership with KCL, measuring the impact of financial awareness on primary school children. Ultimately, we hope to put financial education on the primary school curriculum in England and ensure that ongoing education is delivered in a consistent and meaningful way.

Confidential

2023 was the final year for recruiting schools to the longitudinal study. In 2024, we will shift from recruiting member schools for impact evidence to building a tried-and-tested blueprint. This blueprint, sustainable and credible to government, will demonstrate how a public/private partnership can integrate the programme into school life.

As the programme matures, we will start training teachers in the existing member schools to deliver the programme instead of having a RedSTART team member lead each session. Additionally, any new member schools will be recruited on the understanding that their teachers will deliver all in-school activities and workshops within 12 months.

Confidential

The first report from the longitudinal study, expansion and future plans

The Policy Institute, King’s College London published the first annual report on the longitudinal study in February 2024, covering the 22/23 academic year. The key findings were overwhelmingly positive and validate our goals:

This report does not include the National Pupil Database content which has now been approved by the Department for Education for release to KCL. This data will allow for additional analysis of variations in impact related to a child’s ethnicity, gender, or Special Educational Needs and Disabilities (SEND) status.

In 2023, we expanded the research to include another cohort of children who joined Reception in the 23/24 academic year, adding 2,300 children from all 57 member schools. Given the age of the children, the schools were visited by researchers who were recruited and trained by KCL, and who led the children through a baseline survey in early 2023. These children will be surveyed again when they reach the end of Year 2.

Combining the two cohorts will allow us to measure the programme's impact and also determine how outcomes differ when starting in Reception, Year 2, or Year 3.

The 23/24 academic year will be the last for adding schools to the longitudinal study, which will continue until the participating children finish school. KCL wishes to extend the study to include work with parents, carers, and families in the home from 2024 onwards. We share this interest and will extend the contract if we secure sufficient funding to support the work.

Confidential

Developing the Money Management App

Enabling children to earn money through the Money Management App (MMA)remains a core part of the programme. The app rewards effort and consistency with bonuses for 100% scores and collects data on learning progress via pre- and post-workshop quizzes. It also encourages children to practice their maths through dedicated quizzes.

In 2023, we expanded from a narrow trial in three schools to a pilot involving all year groups in our treatment schools and Year 6 in our control schools. As a reminder, the treatment and control schools were determined by King’s College through a randomisation process to support the randomised control trial. The treatment schools receive all of our intervention and the control schools, a more limited set of delivery. Beyond that, they are asked to do whatever work they would have done on financial education if RedSTART did not exist.

We also moved to a continuous development contract with the app developer, SALT, from September 2023. This replaced the original three-phase contract, offering more flexibility for changes and new requirements. The new agreement supports a dynamic development agenda and allows us to respond to feedback from schools and Regional Managers.

By the end of 2023, 24 out of 57 eligible schools had adopted the MMA . Regional Managers reported that the effort required to set up the app in schools discouraged some from trying. Additionally, some schools struggled to find the 15 minutes a week needed for children to earn enough money to buy items in the shop.

We prioritised work to help teachers and Regional Managers run class and year group reports, allowing remote monitoring of activity levels and supporting school discussions. Regional Managers also spent more time in the schools during the last half of the academic year to support schools in adopting the MMA. It was agreed to continue encouraging the use of the MMA and review its status at the end of the 23/24 academic year.

Confidential

A steady funding stream, with support from our strategic partners

This year, we maintained our turnover thanks to the support and generosity of our funding partners[3] . In 2023, RedSTART received £941,840 in funding and as at 31 December 2023, we had a commitment of £650,000 for 2024 through multi-year funding agreements.

We carried over a cash balance of £419,704 from 2023 into 2024 due to outstanding commitments for KCL research, the Money Management App development, and school resources that hadn't been invoiced and paid by 31 December 2023.

We also recognise that our funding agreements' cash flow pattern requires us to hold a sufficient sum at year-end to cover committed expenses until the second quarter when we receive the next round of annual funding.

Since our income and expenditure align with the academic year rather than the calendar year, we have obtained Board approval to change our year-end to 31 August, effective from 31 August 2024.The next set of audited accounts will therefore cover the period 1 January 2024 to 31 August 2024, with the following set covering the period 1 September 2024 to 31 August 2025.

RedSTART aims to maintain reserves equating to three to six months of payroll and operational costs to ensure continued service to our beneficiaries.

3 for a full list of partners, please see slide 31

Confidential

Fond farewells

During 2023, RedSTART said goodbye to some valued colleagues and contributors:

Adam Jones, had been a Trustee on our Board since January 2018 and the lead trustee for IT and technology. Adam worked to ensure that the correct contracts were in place and that we were working with the best providers. He was a key part of the team developing the Money Management App.

Adam stepped down to concentrate on a new role and to spend time with his family. He was always a source of knowledge and expertise and a great sounding board. We wish him well.

Georgia Morrell, a volunteer who looked after our PR and communications, left us at the end of March after securing a permanent, full-time role in PR and communications.

John Grieve, Regional Manager for Edinburgh, left the organisation at the end of the Scottish 22/23 academic year, ahead of his planned return to New Zealand in the autumn.

Claire Fraser-Lim, Regional Manager for Lowestoft, left the organisation at the end of June to work as an Education Engagement Specialist on freelance basis.

Finally, Lucy Dowling, Regional Manager for South London, left in September to take up a role in Sustainability at Legal & General, one of our strategic funding partners.

We extend a huge thank you to everyone for your work and support.

Confidential

Serving regions in greater depth

To support the Change the Game strategy and its evolving requirements, we made some structural adjustments and welcomed the following new colleagues:

We were also working with the following contractors:-

Katie Burles: Facilitator and Product Development

Ronni Allsop: Facilitator

Emma Appleyard: Fundraising Manager

As at 31 December 2023, our structure was as follows:

Confidential

Where we work

We aim to provide the UK Government with evidence they say they need to put financial education on the primary school curriculum

Our Change the Game programme is being delivered to 57 schools in seven regional hubs – London (inside the M25), the North East, Edinburgh, Bristol, Lowestoft, Cardiff and South Wales, and Sussex.

----- Start of picture text -----

17,000
children In 2023/24
Edinburgh, Fife and Scottish Borders
9
Newcastle, Sunderland
& Gateshead
10
Lowestoft &
Suffolk/Norfolk borders
7
Cardiff – new hub for
23/24 academic year
6
Bristol, Bath and Weston
Super Mare
7
London, inside the M25
Sussex (Crawley & 24
Brighton) new hub for
23/24 academic year
1
----- End of picture text -----

Confidential

2023 audited accounts FINANCIAL REVIEW

Income for the period totalled £941,840 (2022: £804,367) of which £941,396 was received as donations and legacies.

Expenditure totalled £734,550 (2022: £475,445).

Total funds carried forward for the period amounted to £717,856 (2022: £510,566).

Reserves policy

RedSTART Educate aims to achieve reserves of three to six months of payroll and operational costs each year in order to be able to continue to provide a service to our beneficiaries. This amounts to c. £125,000 - £250,000

REGISTERED CHARITY NUMBER: 1170297

REPORT OF THE TRUSTEES AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

REDSTART EDUCATE

THP Limited Chartered Accountants and Statutory Auditors 34-40 High Street Wanstead London E11 2RJ

REDSTART EDUCATE

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

Page
Reference and Administrative Details 1
Report of the Independent Auditors 2 to 4
Statement of Financial Activities 5
Balance Sheet 6
Cash Flow Statement 7
Notes to the Financial Statements 8 to 13
Detailed Statement of Financial Activities 14 to 15

REDSTART EDUCATE REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2023

TRUSTEES J Letham
R Gardner
R R Mason
A Jones (resigned 27.11.2023)
C A Williams
C Lane
REGISTERED OFFICE C/O Stone King LLP
Boundary House
91-93 Charterhouse Street
London
EC1M 6HR
REGISTERED CHARITY NUMBER
1170297
AUDITORS THP Limited
Chartered Accountants
and Statutory Auditors
34-40 High Street
Wanstead
London
E11 2RJ

Page 1

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF REDSTART EDUCATE

Opinion

We have audited the accounts of Redstart Educate CIO (the 'charity') for the year ended 31 December 2023 which comprise the statement of financial activities, the balance sheet, the cash flow statement 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 applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The 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 Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

Page 2

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF REDSTART EDUCATE CIO

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the trustees are responsible for the preparation of the accounts 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 accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, 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.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the Charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 3

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF REDSTART EDUCATE CIO

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. 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 auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

for and on behalf of THP Limited Chartered Accountants and Statutory Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 34-40 High Street Wanstead London E11 2RJ Date: .............................................

Page 4

REDSTART EDUCATE

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023

2023
Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
941,396
Charitable activities
3
-
Investment income
4
444
Total
941,840
EXPENDITURE ON
Raising funds
5
63,633
Charitable activities
6
Financial education
670,917
Total
734,550
NET INCOME
207,290
RECONCILIATION OF FUNDS
Total funds brought forward
510,566
TOTAL FUNDS CARRIED FORWARD
717,856		 2022
Total
funds
£
802,978
1,378
11
804,367
46,367
429,078
475,445
328,922
181,644
510,566

The notes form part of these financial statements

Page 5

REDSTART EDUCATE

BALANCE SHEET 31 DECEMBER 2023

2023
Unrestricted
fund
Notes
£
FIXED ASSETS
Intangible assets
12
124,740
Tangible assets
13
8,668
133,408
CURRENT ASSETS
Debtors
14
197,360
Cash at bank
419,704
617,064
CREDITORS
Amounts falling due within one year
15
(32,616)
NET CURRENT ASSETS
584,448
TOTAL ASSETS LESS CURRENT LIABILITIES
717,856
NET ASSETS
717,856
FUNDS
16
Unrestricted funds
717,856
TOTAL FUNDS
717,856		 2022
Total
funds
£
-
12,498
12,498
163,979
443,555
607,534
(109,466)
498,068
510,566
510,566
510,566
510,566

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2023.

The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.

The trustees acknowledge their responsibilities for

These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011.

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

............................................. R R Mason - Trustee

The notes form part of these financial statements

Page 6

REDSTART EDUCATE

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023

Notes
Cash flows from operating activities
Cash generated from operations
19
Net cash provided by operating activities
Cash flows from investing activities
Purchase of intangible fixed assets
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2023
£
132,602
132,602
(155,925)
(972)
444
(156,453)
(23,851)
443,555
**419,704 **		 2022
£
276,477
276,477
-
(13,516)
11
(13,505)
262,972
180,583
443,555

The notes form part of these financial statements

Page 7

REDSTART EDUCATE

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

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

Going concern

These accounts are prepared on a going concern basis. The trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern.

Incoming resources

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. The following specific policies are applied to particular categories of income:

Donations and legacies

Donations, legacies and grants of a general nature are recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

Donated goods, services and facilities

These are only included in incoming resources (with an equivalent amount in resources expended) where the benefit to the charity is reasonably quantifiable, measurable and material. The value placed on these resources is the estimated value to the charity of the service or facility received.

Resources expended

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Computer equipment - Straight line over 3 years

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Critical accounting estimates and judgements

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

continued...

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REDSTART EDUCATE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

1. ACCOUNTING POLICIES - continued

Critical accounting estimates and judgements

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Software development costs

Software development costs relating to the Charity's educational money management app are capitalised and depreciated over 5 years on a straight line basis.

The Charity applies the rules set out in FRS102 when considering the capitalisation of software development costs. Therefore, the charity only recognises an intangible asset as an asset if, and only if:

(a) it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity; and

(b) the cost or value of the asset can be measured reliably.

The asset is initially recognised at cost, where cost comprises all directly attributable costs necessary to create, produce and prepare the asset to be capable of operating in the manner intended by management.

Any expenditure carried forward is amortised in line with the expected future life of the asset less any accumulated impairment losses.

All other computer software costs are expensed in the SOFA in the year incurred.

2.

3.

4.

5.

DONATIONS AND LEGACIES

DONATIONS AND LEGACIES
Donations
Donated goods and services
CHARITABLE ACTIVITIES
Income from charitable activities
INVESTMENT INCOME
Deposit account interest
RAISING FUNDS
Fundraising costs
Staff costs
Website expenses
Legal & professional fees
Fund raising events		 2023
£
885,396
56,000
941,396
2023
£
-
2023
£
444
2023
£
43,444
558
18,322
1,309
63,633		 2022
£
786,910
16,068
802,978
2022
£
1,378
2022
£
11
2022
£
35,109
216
10,424
618
46,367

continued...

Page 9

REDSTART EDUCATE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

6. CHARITABLE ACTIVITIES COSTS

Financial education
7.
SUPPORT COSTS
Financial education
Financial education		 Direct
Costs
£
409,609
Management
£
89,505
Administration
Human
and other
resources
costs
£
£
11,378
46,011

8. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Auditors' remuneration
Bookkeeping and payroll fees
Depreciation - owned assets
Software development costs amortisation		 2023
£
8,160
8,752
4,802
31,185		 2022
£
7,800
5,327
1,018
-

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022.

Trustees' expenses

No trustees have had expenses reimbursed, either in the current or prior year.

10. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Total staff		 2023
£
327,194
29,738
27,946
384,878
2023
8		 2022
£
181,821
14,623
25,039
221,483
2022
5

No employee received emoluments between £60,000 and £70,000 (2022: 0). One employee received emoluments between £70,000 and £80,000 (2022: 0).

Key management includes the Trustees, the Chief Executive and the Vendor & Project Manager. The compensation paid to key management staff for employee services is £129,929 (2022: £62,864).

continued...

Page 10

REDSTART EDUCATE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies 802,978
Charitable activities 1,378
Investment income 11
Total 804,367
EXPENDITURE ON
Raising funds 46,367
Charitable activities
Financial education 429,078
Total 475,445
NET INCOME 328,922
RECONCILIATION OF FUNDS
Total funds brought forward 181,644
TOTAL FUNDS CARRIED FORWARD 510,566
12. INTANGIBLE FIXED ASSETS
Software
development
costs
£
COST
Additions 155,925
AMORTISATION
Charge for year 31,185
NET BOOK VALUE
At 31 December 2023 124,740
At 31 December 2022 -
13. TANGIBLE FIXED ASSETS
Computer
equipment
£
COST
At 1 January 2023 13,516
Additions 972
At 31 December 2023 14,488
DEPRECIATION
At 1 January 2023 1,018
Charge for year **4,802 **
At 31 December 2023 5,820
NET BOOK VALUE
At 31 December 2023 8,668
At 31 December 2022 12,498

continued...

Page 11

REDSTART EDUCATE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Funds receivable
Prepayments and accrued income
15.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Social security and other taxes
Other creditors
Accrued expenses
16.
MOVEMENT IN FUNDS
Unrestricted funds
General fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
TOTAL FUNDS
Comparative net movement in funds, included in the above are as
Unrestricted funds
General fund
TOTAL FUNDS		 At 1.1.23
£
510,566
510,566
Incoming
resources
£
941,840
941,840
At 1.1.22
£
181,644
181,644
follows:
Incoming
resources
£
804,367
804,367		 2023
£
186,000
11,360
197,360
2023
£
2,584
9,596
-
20,436
32,616
Net
movement
in funds
£
207,290
207,290
Resources
expended
£
(734,550)
(734,550)
Net
movement
in funds
£
328,922
328,922
Resources
expended
£
(475,445)
(475,445)

continued...

Page 12

REDSTART EDUCATE

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

16. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 At 1.1.22
£
181,644
181,644		 Net
movement
in funds
£
536,212
536,212		 At
31.12.23
£
717,856
717,856

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

17.

Incoming
Resources		 Movement
resources
expended		 in funds
£ £ £
Unrestricted funds
General fund 1,746,207 (1,209,995) 536,212
TOTAL FUNDS 1,746,207 (1,209,995) 536,212
CAPITAL COMMITMENTS
2023 2022
£ £
Contracted but not provided for in the financial statements 25,024 207,278

The above balance relates to the amounts committed towards the charity's "Change the Game" study and development of a money management app for Redstart Educate.

18. RELATED PARTY DISCLOSURES

During the year the charity purchased £2,525 of books from an independent publisher (2022: £nil) that were written by one of the Trustees.

19. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the Statement of
Financial Activities)
Adjustments for:
Depreciation charges
Interest received
Increase in debtors
(Decrease)/increase in creditors
Net cash provided by operations
ANALYSIS OF CHANGES IN NET FUNDS
At 1.1.23
£
Net cash
Cash at bank
443,555
443,555
Total
443,555		 2023
2022
£
£
207,290
328,922
35,987
1,018
(444)
(11)
(33,381)
(158,979)
(76,850)
105,527
132,602
276,477
Cash flow
At 31.12.23
£
£
(23,851)
419,704
(23,851)
419,704
(23,851)
**419,704 **

20. ANALYSIS OF CHANGES IN NET FUNDS

Page 13

REDSTART EDUCATE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Donated goods and services
Charitable activities
Income from charitable activities
Investment income
Deposit account interest
Total incoming resources
EXPENDITURE
Fundraising costs
Wages
Social security
Pensions and benefits
Website expenses
Legal & professional fees
Fund raising events
Charitable activities
Wages
Social security
Pensions and benefits
Travel and entertainment
Merchandise costs - kit bags for schools
Product development
Volunteer training
Support costs
Management
Wages
Social security
Pensions and benefits
Finance
Finance costs
Software
Information technology
Computers and peripheral equipment
Software
Security and consultancy
Sundries
Website hosting and maintenance
Website design		 2023
£
885,396
56,000
941,396
-
444
941,840
36,249
3,616
3,579
558
18,322
1,309
63,633
215,926
18,404
17,599
28,566
51,127
72,449
5,538
409,609
75,019
7,718
6,768
89,505
85
750
835
-
-
79,402
4,107
1,283
1,805
86,597		 2022
£
786,910
16,068
802,978
1,378
11
804,367
27,851
2,546
4,712
216
10,424
618
46,367
108,286
7,751
13,070
7,561
10,713
117,822
5,831
271,034
45,684
4,326
7,257
57,267
1,041
593
1,634
551
5,345
33,878
58
6,110
4,698
50,640

This page does not form part of the statutory financial statements

Page 14

REDSTART EDUCATE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023

Information technology
Human resources
Background checks
Training
Software licences
Payroll and benefits administration
Sundries
Entertainment
Administration and other costs
Rent
Insurance
Other premises costs
Postage and stationery
Recruitment fees
Advertising and marketing
Development costs
Computer equipment
Governance costs
Auditors' remuneration
Bookkeeping and payroll fees
Insurance
Legal and professional fees
Total resources expended
Net income		 2023
£
6,152
8
1,337
-
3,283
598
11,378
-
-
-
2,194
7,560
270
31,185
4,802
46,011
8,160
8,752
1,820
8,250
26,982
734,550
207,290		 2022
£
-
22
842
350
4
700
1,918
1,344
10
1,636
641
18,360
265
-
1,018
23,274
7,800
5,327
1,097
9,087
23,311
475,445
328,922

This page does not form part of the statutory financial statements

Page 15

Confidential

Thank you for your support

We would like to say a huge thank you to the following organisations:

For being a strategic partner in 2023:

For supporting us financially, in the classrooms, in your offices and so much more:

For providing professional expertise and the people to help us get things done:

Confidential

Structure and management

RedSTART is a Charitable Incorporated Organisation (CIO), whose only voting members are its charity trustees. Its governing document is its constitution.

How do we do it?

New trustees are identified by the current trustees and appointed for a term of 3 years. There must be at least 3 charity trustees and a maximum of 12.

In selecting individuals for appointment, the charity trustees ensure they have regard to the skills, knowledge, and experience required for the effective administration of the CIO.

All new trustees are interviewed by the board, vetted, including disclosure and barring service checks (DBS), and given a full induction.

The current trustees ensure they give new trustees a copy of the current version of the constitution and the latest Trustees’ Annual Return.

All trustees provide their services as trustees for free.

No funds are held by custodian trustees on behalf of others.

There are no exemptions from disclosure.

Chief executive officer (CEO)

Our CEO is responsible for the day-to-day operation of the charity and manages the staff of the charity on behalf of the trustees. Our CEO, Sarah Marks, has been in the role since 1 August 2021.

Risk management

The trustees have assessed the risks the charity faces and have drawn up a risk matrix which identifies the major risks by type, the likelihood of the risks occurring, and the measures taken to manage them. The trustees review this risk matrix regularly at their board meetings. The most significant items at year end were identified as being:

The trustees are satisfied that systems are in place, and/or arrangements are in hand, to manage the risks that have been identified. The mitigation measures in place are as follows:

Confidential

Structure and management

Item

GDPR Policies and Procedures

Mitigation

Clarification required around role of “Controller”. GDPR Policies and procedures to be created by 31 December, with input from our lawyers.

  1. Training of the RedSTART team by 31 December.

  2. A list of all data types, purpose, storage location and deletion timescales has been drafted and will be finalised, so evidence is in place if we are challenged by the Information Commissioners Office or receive a Subject Access Request.

HR and Compliance Oversight

Create a role within the charity with responsibility for day-today recruitment, onboarding and HR matters. Recruit an additional trustee to the Board, with HR and/or charity compliance experience.

Confidential

Trustee declarations

Rhodri Mason, Chair of Trustees

Rhodri is an active chair and provides support and guidance to the CEO. He ensures that the charity is run in line with the board’s mandate. He meets the CEO regularly for progress updates and discussion.

Rob Gardner (Founder)

Rob is one of the founders and the lead trustee for fundraising. He works to promote RedSTART and supports the CEO with sales and marketing activity.

Cath Lane

Cath is the lead trustee for education. She leads on safeguarding policy and all decisions related to our work with our schools.

Johnathan Letham

Jonny is the lead for Scotland. He works to promote RedSTART within the Edinburgh community and provides support for the regional manager.

Cerian Williams

Cerian is the lead for finance. With changes in the charity’s cash flow, there is a greater need for oversight, and she ensures that the budget is regularly reviewed. She meets the CEO weekly to review income and expenditures.

Comment from the Chair of Trustees

I am extremely proud of everything achieved by our exceptionally talented and committed RedSTART team in 2023 and would like to extend my thanks to them all. Together we have made real progress toward improving the life chances of children right across the UK.

I would also like to take this opportunity to once again thank our many corporate partners for their continued support, both in terms of the incredibly important funding they are able to provide to the charity, and for putting us in touch with the many wonderful volunteers who generously give their time to support RedSTART as we run workshops throughout the academic year.

I very much look forward to continuing to work in partnership together on the next phase of our RedSTART journey.

Confidential

Statement of trustees’ responsibilities

The trustees are responsible for preparing the trustees' report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that year. In preparing accounts the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the accounts comply with the Charities Act 2011, the relevant Charity (Accounts and Reports) Regulations and the provisions of the trust deed. 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.

AUDITORS

The auditors, THP Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on ............................................. and signed on its behalf by:

...............................................................

R R Mason - Trustee