**Registered number: 10978174 Charity number: 1175826**
# **RED BALLOON LEARNER CENTRE CAMBRIDGE (A company limited by guarantee)**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 AUGUST 2023**
## **RED BALLOON LEARNER CENTRE CAMBRIDGE**
## **(A company limited by guarantee)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and administrative details of the charity, its Trustees and advisers**|1|
|**Trustees' report**|2 - 8|
|**Independent examiner's report**|9 - 10|
|**Statement of financial activities**|11|
|**Balance sheet**|12|
|**Statement of cash flows**|13|
|**Notes to the financial statements**|14 - 29|
## **RED BALLOON LEARNER CENTRE CAMBRIDGE (A company limited by guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2023**
|**Trustees**|Mr Ian Swain, Chair|
|---|---|
||Ms Lauren Allin (resigned 20 September 2022)|
||Mrs Lynne Harries (resigned 18 July 2023)|
||Mrs Judith Haste (appointed 9 June 2023)|
||Mr Richard Howitt (resigned 16 September 2022)|
||Ms Lucy Johnstone (resigned 28 November 2022)|
||Mr Peter Law (appointed 5 June 2023)|
||Mrs Kathleen McGuire (appointed 23 January 2023)|
||Mr Mark Patterson (appointed 20 March 2023)|
||Ms Lesley Steinitz (appointed 29 November 2022, resigned 22 November 2023)|
|**Company registered**
**number**
10978174
**Charity registered**
**number**
1175826
**Registered office**
Herbert House
57 Warkworth Terrace
Cambridge
CB1 1EE
**Coordinator**
Ms Jessica Lechner
**Independent examiner**
C P J Dougherty FCA
Lakin Rose Limited
Chartered Accountants
Pioneer House
Vision Park
Histon
Cambridge
CB24 9NL||
Page 1
## **RED BALLOON LEARNER CENTRE CAMBRIDGE (A company limited by guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2023**
The Trustees present their annual report together with the financial statements of the charity for the year 1 September 2022 to 31 August 2023. The annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the annual report and financial statements of the charity comply with the current statutory requirements, the requirements of the charity's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the charity qualifies as small under section 382 of the Companies Act 2006, the strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
## **Objectives and activities**
## **a. Policies and objectives**
The objects of the charity are set out in the Articles of Association registered at Companies House on 23rd September 2017.
‘To advance the education of children aged 7 to 19 at the Red Balloon Learner Centre, being students who are the victims of bullying, or by reason of other emotional trauma or illness, are for the time being unable to attend mainstream schools, including, but not limited to, providing them with tuition and appropriate face-to-face and on-line support in a safe learning environment until they are ready to return to mainstream education or take up training or employment.”
We achieve our objects through the provision of an ‘intensive care’ full time education and support programme. Therapy and counselling are offered to students and families. Continuing use is made of volunteers to work with students. All volunteers have enhanced DBS checks.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
## **b. Main activities undertaken to further the charity's purposes for the public benefit**
The charity provides full-time education for children who self-exclude from school. There is no other purposemade scheme to support the recovery of this group of children and to give them their ‘life’ back. Another important aspect of the work that the charity does is to offer support to the parents and carers of these children.
The Trustees have had regard to the Charity Commission guidance on public benefit.
## **c. Management**
The trustees, in consultation with the Coordinator, make decisions about staffing, budgeting and performance reviews. Trustees, directors and consultants of Red Balloon Educational Trust with specialist knowledge may be consulted about employment and other human resource issues.
Trustees work to raise local awareness of the needs of children who have been so badly bullied or suffer from severe emotional trauma or mental health issues that they cannot attend mainstream school. The aim is to draw attention to the fact that such children should be provided with full time education.
Page 2
## **RED BALLOON LEARNER CENTRE CAMBRIDGE (A company limited by guarantee)**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023**
## **Achievements and performance**
## **a. Main achievements of the charity**
The Trustees are satisfied with the performance of the charity during the year ended 31st August 2023.
The objectives of the charity are only achieved through the skill, hard work and dedication of the staff and volunteers at Red Balloon Learner Centre, Cambridge and as trustees we are indebted to the team. Achievement and performance at Red Balloon Learner Centre, Cambridge are measured by the increase in selfesteem and confidence of each of the students, their ability to hold their own in the wider world and their understanding of themselves and others, as well as through academic progress and results.
The last few years have been a time of growth and expansion for Red Balloon Learner Centre, Cambridge. In September 2020 we were able to open a second centre in Cambridge. The successful opening of this second centre allowed us to double the amount of places that we are able to offer to students each year. Since then we have built a cohesive community between the two buildings with a ‘one centre’ approach. This includes many staff members working across both centres and students having the opportunity to take some shared lessons together and take part in joint projects and excursions.
We are strongly committed to offering a wide range of curriculum subjects to all students. These include English, Maths, Science, Humanities, Art, Music, Media, Drama, Languages (including British Sign Language), PE, ICT, Life Skills and Citizenship. In addition to offering GCSEs, we have a range of qualifications, including Unit Awards and project qualifications to motivate and recognise those students who thrive in vocational and practical areas. In addition we are able to offer LAMDA exams and ASDAN training.
## **b. ISI Inspection - March 2023**
In March 2023, we were inspected by the Independent Schools Inspectorate (ISI). This was a Focused Compliance and Educational Quality inspection. We are very pleased that the inspection found Red Balloon Learner Centre, Cambridge to be excellent in every category. The full report is available to read on our website.
## **c. Exams**
In the school year 2022/23, nine students took a total of twenty-one GCSE qualifications. Subjects included Maths, English Literature, English Language, Biology, Art, MFL and Psychology. In addition to the GCSEs taken this year, some students undertook other examinations which included Maths Awards, a Free-Standing Maths Qualification (B) and LAMDA exams.
We supported our learners to prepare for these exams so that they could do their best. We are very proud of the set of results that our students achieved and we have noted that there is clear progress in our exam results.
Page 3
## **RED BALLOON LEARNER CENTRE CAMBRIDGE (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023**
## **Achievements and performance (continued)**
## **d. Activities, trips and excursions**
Red Balloon does not just care about academic results, and significant time, energy and expertise are given to ensuring that the students have a wider learning experience through regular activities and special events such as cooking and baking, museum trips, board games, dog-walking, DIY, swimming, circle time, Life Skills sessions and day trips. These activities promote increased self-esteem, emotional regulation, enhanced social skills and a level of confidence that cannot always be developed in a classroom. In addition, many of our students benefit from weekly therapy or counselling sessions. We also work collaboratively with other schools and local groups to develop partnerships across different organisations.
During the school year 2022/23, we were able to offer students a range of educational visits and excursions throughout the year. We are especially grateful for a Children In Need Curiosity Grant which enabled us to provide a range of Science based excursions, workshops and activities. These included STEM workshops run by the Cambridge Science Centre and nature drawing workshops. Students were able to take part in a visit to Bletchley Park. There were also excursions to The Raptor Foundation and to visit Queenholme Alpacas to learn about animal care.
This funding also supported our student residential excursions to the Lake District in summer term 2023. We ran two five-day trips to enable as many students as possible to participate. Students were able to participate in a range of outdoor pursuits including kayaking, canoeing, abseiling, hiking, rafting, caving, archery, orienteering. This gave much opportunity for students to develop team building skills.
We have found over the years that this residential trip has a range of benefits for students. Being on a residential excursion moves them outside of their comfort zone and gives opportunities to develop self-esteem. In many cases, it is perhaps the only time they have been away from home in this way. For this reason the visit helps to build confidence and their own sense of self. The students develop both camaraderie within the group and at the same time independence.
During this school year, we also had a cross-curricular theme of looking at different world religions and each half term we explored a different religion. This allowed students to participate in excursions to local religious centres including a Jewish synagogue, a Christian church, a Muslim mosque, a Buddhist centre and a Sikh Gurdwara. Students also had the opportunity to explore the various religions through cooking and baking activities to sample some traditional foods eaten during religious festivals. Activities also included looking at church floor design in Maths, painting symbols from Sikhism and Judaism in Art, looking at the Science behind Buddhist meditation and exploring Henna hand painting as part of the half term on Hinduism.
We were also able to provide an excursion to The Tate Modern in London for some of our Art students as well as trips around Cambridge to museums and educational places of interest. The excursions enhance the student experience and provide opportunities for the young people to widen their view of the world.
Students also had the opportunity to go on a day out to Thorpe Park as a treat to end the summer term and to continue to foster a sense of community across both centres. The end of the school year always includes a celebration of the accomplishments of all our young learners and each student receives an annual Record of Achievement highlighting special moments. We also held our annual school prom which is a very popular event amongst the students. All students are invited to attend and to celebrate their achievements and bid farewell to the students who are at the end of their final year at Red Balloon.
Page 4
## **RED BALLOON LEARNER CENTRE CAMBRIDGE**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023**
## **Achievements and performance (continued)**
## **e. Duke of Edinburgh's Award activities**
During the previous school year, a group of staff undertook training activities and courses to enable us to offer the Duke of Edinburgh’s Award. As a result, we were very pleased to be able to offer this to the first cohort of students in the 22/23 school year.
A group of students took part with enthusiasm and the programme offered them lots of opportunities. Some of the students took part in volunteering activities including work at a local library, supporting at a karate club, assisting at The Girl Guides, dog walking and childcare. The students were able to learn new skills and also take part in various physical activities including swimming, archery, martial arts, dancing and cycling.
Five students took part in an overnight expedition walking 12 miles on the first day. The group navigated using maps and compasses, camped overnight and did another four mile walk the following day.
In preparation, the students did lots of practice walking sessions around Cambridge, undertook training in First Aid, map reading and coordinates, route planning and cooking outside. We are very proud of their achievements and all the students that took part progressed at least one module towards the bronze award and gained a certificate.
## **Financial review**
## **a. Going concern**
After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
## **b. Reserves policy**
The Trustees have decided that unrestricted reserves should be equivalent to five months’ worth of expenditure. At the level of expenditure for 2022/23, this should equal around £370,000 _(2022: £348,000)_ . At 31 August 2023, unrestricted reserves defined as unrestricted funds less fixed assets was £499,291 _(2022: £481,451)_ .
## **c. Financial review**
Total unrestricted income during the year was £910,878 _(2022: £955,004)_ . Of this, £870,452 _(2022: £917,695)_ came from fees or bursaries. Total restricted donations and grants income in the year was £7,076 _(2022: £19,764)_ , see note 15 for details of these funds.
Total expenditure was £922,760 _(2022: £849,356)_ and was incurred in the performance of the charitable activities of the company including staffing, rent, utilities and other general running costs. £897,560 _(2022: £835,359)_ was spent from unrestricted funds and £25,200 _(2022: £13,997)_ spent from restricted funds.
An unrestricted surplus of £13,318 _(2022: £119,645)_ was recorded, bringing total unrestricted funds to £531,724 _(2022: £518,406)_ .
Page 5
# **RED BALLOON LEARNER CENTRE CAMBRIDGE (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023**
## **d. Material investments policy**
The trustees’ policy on investment is to retain surplus funds in interest-bearing deposit accounts.
## **e. Principal risks and uncertainties**
The Trustees have examined the major strategic and operational risks which the charity faces. The two main areas for concern are:
Sourcing of funding for students
- Safeguarding of students
The trustees and the Coordinators have developed a fee pricing structure that reflects the varying support and educational needs of each student.
Safeguarding of students is of the highest priority. Ongoing staff training in Child Protection and Health & Safety is provided regularly and all trustees complete Level 1 Safeguarding when appointed. In addition, a full range of policies are regularly reviewed by staff and trustees together.
## **Structure, governance and management**
## **a. Constitution**
The company is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 23rd September 2017.
## **b. Governance**
The Board of Trustees has the power to appoint new trustees by resolution at a special meeting. An open and transparent recruitment process is undertaken. People who come to the trustees’ attention as having relevant experience, interest or expertise are asked if they would consider becoming a trustee, are interviewed by other trustees and, if it is considered appropriate, are introduced to all of the trustees. All trustees are subject to enhanced DBS checks and must provide a Declaration of Interests and confirm that they are ‘fit’ to serve as a charity trustee.
The Board aims to meet twice per term and holds an AGM in the Spring. At each meeting student progress is reviewed along with progress on the School Development Plan. Regular management accounts are also provided for each meeting.
Page 6
## **RED BALLOON LEARNER CENTRE CAMBRIDGE (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023**
## **Plans for future periods**
We continue to work on enhancing the ‘one centre approach’ and having as much collaboration between students at both centres wherever possible.
In recent years, we have been able to expand our offering of support to the families of our young learners through the offer of therapy sessions for parents. We were able to set up a new programme of Family Therapy which has proved very successful. We are now able to offer some parents a series of therapy sessions to support them as well as their child. We are finding that this is of great benefit to many of the families of the young people that we support. It is our aim to be able to continue to expand this programme and to be able to offer this therapy in a broader way.
During the year, we expanded the group of trustees and welcomed on board some new trustees who bring with them areas of expertise that very much support our work. We plan to continue to expand the Board over the next few years.
The current and future school development plans will continue to be based on a full review of our progress in all areas, particularly using the Independent Schools Association’s own Self Evaluation Process.
## **Members' liability**
The Members of the charity guarantee to contribute an amount not exceeding £10 to the assets of the charity in the event of winding up.
## **With Special Thanks**
The special relationship that Red Balloon has with schools and local authorities in Cambridgeshire and beyond, and organisations and individuals who provide many types of support (such as the Leys school), all contribute to providing the best possible education and care for those children that need our help.
We are grateful to all the organisations and individual donors who have generously supported the work that we do. With thanks to DG Marshall of Cambridge Trust and Marshall of Cambridge (Holdings) Ltd, Qualcomm, The Betty Lawes Foundation, The National Lottery, The Patricia Routledge Charitable Trust and The Pye Foundation. We are also very appreciative of continued support from a Children in Need Curiosity Grant towards Science activities and excursions.
Page 7
RED BALLOON LEARNER CENTRE CAMBRIDGE
IA company limited by guarantee)
TRUSTEES, REPORT ICONTINUEDI
FOR THE YEAR ENDED 31 AUGUST 2023
Statement of Trustees. responsibilities
The Trustees Iwho are also the directors of the charity for the purposes of company law} are responsible for
preparing the Trustees. report and the financial slalemenls in accordance with applicable law and United
Kingdom Accounting Standards Iuniled Kingdom Generally Accepted Accounting Practice}.
Company law requires the Trustees lo prepare financial statements for each financial year. Under company law,
the Trustees must not approve the financial slalements unless they are satisfied that they give a true and fair
view of the state of affairs of the charity and of its incoming resources and application of resources, inclLJding its
income and expenditure, for that period. In preparing these financial statements, the Trustees are required lo..
select suitable accounting policies and then apply them consistentl,
observe the methods and principles of the Charities SORP IFRS 1021-
make judgements and accounting estimates that are reasonable and prudent;
slate whether applicable UK Accounting Standards IFRS 1021 have been followed, subject to any material
departures disclosed and explained in the financial ststemenls.,
prepare the financial statements on the going concern basis unless it is inappropriate lo 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 al any ts'me the financial posits'on of the charity
and enable them lo 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.
Approved by order of the members of the board of Trustees on
behalf by.
14 May 2024
and signed on their
Djn¢dty.
8È7È>t17É¥45E
Mr lan Swain
Chair of trustees
Page 8
## **RED BALLOON LEARNER CENTRE CAMBRIDGE**
## **(A company limited by guarantee)**
**INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 AUGUST 2023**
## **Independent Examiner's Report to the Trustees of Red Balloon Learner Centre Cambridge ('the charity')**
I report to the charity Trustees on my examination of the accounts of the charity for the year ended 31 August 2023.
## **Responsibilities and Basis of Report**
As the Trustees of the charity (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent Examiner's Statement**
Since the charity's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Page 9
# **RED BALLOON LEARNER CENTRE CAMBRIDGE (A company limited by guarantee)**
## **INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023**
This report is made solely to the charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the charity's Trustees those matters I am required to state to them in an independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's Trustees as a body, for my work or for this report.
Signed: Dated: 22 May 2024
C P J Dougherty, FCA
## **Lakin Rose Limited**
Chartered Accountants Pioneer House Vision Park Histon Cambridge CB24 9NL
Page 10
## **RED BALLOON LEARNER CENTRE CAMBRIDGE**
## **(A company limited by guarantee)**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2023**
|**Note**
**Income from:**
Donations and grants
3
Charitable activities
4
Investments
5
Other income
6
**Total income**
**Expenditure on:**
Charitable activities
7
**Total expenditure**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Restricted**
**funds**
**2023**
**£**
**7,076**
**-**
**-**
**-**
**7,076**
**25,200**
**25,200**
**(18,124)**
**27,809**
**(18,124)**
**9,685**|**Unrestricted**
**funds**
**2023**
**£**
**29,137**
**870,452**
**3,019**
**8,270**
**910,878**
**897,560**
**897,560**
**13,318**
**518,406**
**13,318**
**531,724**|**Total**
**funds**
**2023**
**£**
**36,213**
**870,452**
**3,019**
**8,270**
**917,954**
**922,760**
**922,760**
**(4,806)**
**546,215**
**(4,806)**
**541,409**|_Total_
_funds_
_2022_
_£_
_45,326_
_917,695_
_161_
_11,586_|
|---|---|---|---|---|
|||||_974,768_|
|||||_849,356_|
|||||_849,356_|
|||||_125,412_|
|||||_420,803_
_125,412_|
|||||_546,215_|
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 14 to 29 form part of these financial statements.
Page 11
RED BALLOON LEARNER CENTRE CAMBRIDGE
IA company limited by guarantee)
REGISTERED NUMBER: 10978174
BALANCE SHEET
AS AT 31 AUGUST 2023
2023
2022
Note
Fixed assets
Tangible assets
12
32.433
36,g55
32.433
36,955
Current asset5
Debtors
Cash al bank and in hand
13
29,862
505.352
15,609
515.889
535,214
531.49B
Creditors.. amounts falling due within one
year
14
126,2381
(22,238)
Net current assets
508.976
509,260
Total net assets
541,409
546,215
Charity funds
Restricted funds
15
9,685
531,724
27,809
518,406
Unrestricted funds
15
Total funds
541.409
546,215
The charity was entiued to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the company lo obtain an audit for the year in question in accordance with
seelion 476 of Companies Act 2006.
The Trustees acknowledge their responsibilities for complwng with the requirements of the Act with respect to
accounting recoids and prep8ralion of financial slatemenls.
The financial slalemenls have been prepared in accordance with the provisions applicable to entities subject to
the small companies regime.
The financial statements were approved and authorised for issue by the Trustees on
signed on their behalf by.
14 May 2024
and
B7t22847EgF45E
Mr lan Swain
Chair of trustees
The notes on pages 14 to 29 form part of these financial slalements.
Page 12
## **RED BALLOON LEARNER CENTRE CAMBRIDGE**
## **(A company limited by guarantee)**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2023**
|**Cash flows from operating activities**
Net cash generated by operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
**Net cash used in investing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
The notes on pages 14 to 29 form part of these financial statements|**2023**
**£**
**(8,488)**
**(2,049)**
**(2,049)**
**(10,537)**
**515,889**
**505,352**|_2022_
_£_
_138,789_
_(1,258)_
**(1,258)**
**137,531**
_378,358_
_515,889_|
|---|---|---|
Page 13
**RED BALLOON LEARNER CENTRE CAMBRIDGE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **1. General information**
The charity is a private charitable company limited by guarantee and is incorporated in England and Wales. The address of the registered office is Herbert House, 57 Warkworth Terrace, Cambridge CB1 1EE.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Red Balloon Learner Centre Cambridge 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.
## **2.2 Going concern**
The Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they have adopted the going concern basis in preparing the financial statements.
## **2.3 Legal status of the charity**
There is no share capital as the company is limited by guarantee. Each member has guaranteed an amount, not exceeding £10, towards the company’s liabilities in the event of a winding up, provided that a member has not ceased to be a member one year prior to any winding up order.
## **2.4 Income**
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Grants are included in the statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Where the donated good is a fixed asset, it is measured at fair value, unless it is impractical to measure this reliably, in which case the cost of the item to the donor should be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset class and depreciated over the useful economic life in accordance with the charity's accounting policies.
On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
Page 14
**RED BALLOON LEARNER CENTRE CAMBRIDGE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **2. Accounting policies (continued)**
## **2.4 Income (continued)**
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
## **2.5 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
## **2.6 Tangible fixed assets and depreciation**
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
|Leasehold improvements|-|10% straight line|
|---|---|---|
|Office equipment|-|33% straight line|
|Computer equipment|-|50% straight line|
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
## **2.7 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Page 15
**RED BALLOON LEARNER CENTRE CAMBRIDGE (A company limited by guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **2. Accounting policies (continued)**
## **2.8 Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **2.9 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the statement of financial activities as a finance cost.
## **2.10 Financial instruments**
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **2.11 Pensions**
The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.
## **2.12 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
Page 16
## **RED BALLOON LEARNER CENTRE CAMBRIDGE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **3. Income from donations and grants**
|Donations
Grants
_Total 2022_|**Restricted**
**funds**
**2023**
**Unrestricted**
**funds**
**2023**
**£**
**£**
-
20,137
7,076
9,000
7,076
29,137
_19,764_
_25,562_|**Total**
**funds**
**2023**
**£**
**20,137**
**16,076**
**36,213**
_45,326_|_Total_
_funds_
_2022_
_£_
_15,562_
_29,764_|
|---|---|---|---|
||||_45,326_|
|||||
## **4. Income from charitable activities**
|**Unrestricted**
**funds**
**2023**
**£**
Teaching and support of bullied children
870,452
_Total 2022_
_917,695_
**5.**
**Investment income**
**Unrestricted**
**funds**
**2023**
**£**
Deposit account interest
3,019
_Total 2022_
_161_|**Total**
**funds**
**2023**
**£**
**870,452**
_917,695_
**Total**
**funds**
**2023**
**£**
**3,019**
_161_|_Total_
_funds_
_2022_
_£_
_917,695_|
|---|---|---|
|||_Total_
_funds_
_2022_
_£_
_161_|
||||
Page 17
## **RED BALLOON LEARNER CENTRE CAMBRIDGE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **6. Other incoming resources**
|School lunches
Miscellaneous income
_Total 2022_|**Unrestricted**
**funds**
**2023**
**£**
5,818
2,452
8,270
_11,586_|**Total**
**funds**
**2023**
**£**
**5,818**
**2,452**
**8,270**
_11,586_|_Total_
_funds_
_2022_
_£_
_6,758_
_4,828_|
|---|---|---|---|
||||_11,586_|
|||||
## **7. Analysis of expenditure on charitable activities**
## **Summary by fund type**
|Teaching and support of bullied children
_Total 2022_|**Restricted**
**funds**
**2023**
**Unrestricted**
**funds**
**2023**
**£**
**£**
25,200
897,560
_13,997_
_835,359_|**Total**
**2023**
**£**
**922,760**
_849,356_|_Total_
_2022_
_£_
_849,356_|
|---|---|---|---|
|||||
## **8. Analysis of expenditure by activities**
|Teaching and support of bullied children
_Total 2022_|**Activities**
**undertaken**
**directly**
**2023**
**£**
839,133
_792,796_|**Support**
**costs**
**2023**
**£**
83,627
_56,560_|**Total**
**funds**
**2023**
**£**
**922,760**
_849,356_|_Total_
_funds_
_2022_
_£_
_849,356_|
|---|---|---|---|---|
||||||
Page 18
**RED BALLOON LEARNER CENTRE CAMBRIDGE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **8. Analysis of expenditure by activities (continued)**
## **Analysis of direct costs**
|Staff costs
Depreciation
Red Balloon of the Air
Therapy
General resources
Food
Student travel
Examination fees
Special activities
Educational resources
Tuition
Well-being
Careers and college transition
Rates and utilities
Staff welfare
Rent
Staff and volunteer travel
Educational grants
Miscellaneous
_Total 2022_|**Activities**
**2023**
**£**
680,184
6,571
11,927
11,180
3,781
12,447
12,458
2,991
3,940
8,515
4,544
654
548
10,941
933
67,406
113
-
-
839,133
_792,796_|**Total**
**funds**
**2023**
**£**
**680,184**
**6,571**
**11,927**
**11,180**
**3,781**
**12,447**
**12,458**
**2,991**
**3,940**
**8,515**
**4,544**
**654**
**548**
**10,941**
**933**
**67,406**
**113**
**-**
**-**
**839,133**
_792,796_|_Total_
_funds_
_2022_
_£_
_634,200_
_7,621_
_20,660_
_2,160_
_3,209_
_10,173_
_15,158_
_2,236_
_5,393_
_7,525_
_3,055_
_265_
_2,246_
_7,286_
_712_
_65,335_
_543_
_4,507_
_512_|
|---|---|---|---|
||||_792,796_|
|||||
Page 19
**RED BALLOON LEARNER CENTRE CAMBRIDGE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **8. Analysis of expenditure by activities (continued)**
## **Analysis of support costs**
|Legal and professional
Support fee (Red Balloon Group)
Training costs
Insurance
Renewals and repairs
Office costs
Bank fees
Bad debts
Profit on disposal of fixed assets
Travel
Governance costs
_Total 2022_|**Activities**
**2023**
**£**
11,845
8,000
2,721
6,094
21,685
10,999
60
10,382
-
347
11,494
83,627
_56,560_|**Total**
**funds**
**2023**
**£**
**11,845**
**8,000**
**2,721**
**6,094**
**21,685**
**10,999**
**60**
**10,382**
**-**
**347**
**11,494**
**83,627**
_56,560_|_Total_
_funds_
_2022_
_£_
_8,156_
_8,000_
_1,997_
_5,941_
_8,895_
_13,357_
_93_
_-_
_(469)_
_-_
_10,590_|
|---|---|---|---|
||||_56,560_|
|||||
## **9. Independent examiner's remuneration**
The independent examiner's remuneration amounts to an independent examiner fee of £1,800 _(2022 - £1,800)_ , and accountancy services of £3,600 ( _2022_ - _£3,600_ ).
## **10. Staff costs**
|Wages and salaries
Social security costs
Contribution to defined contribution pension schemes|**2023**
**£**
**609,198**
**48,528**
**22,458**
**680,184**|_2022_
_£_
_569,098_
_43,780_
_21,322_|
|---|---|---|
||||
|||_634,200_|
Page 20
**RED BALLOON LEARNER CENTRE CAMBRIDGE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **10. Staff costs (continued)**
The average number of persons employed by the charity during the year was as follows:
||**2023**|_2022_|
|---|---|---|
||**No.**|_No._|
|Employees|**31**|_32_|
No employee received remuneration amounting to more than £60,000 in either year.
The Trustees consider the key management personnel to comprise 4 people being the Coordinator and three Deputy Coordinators. The aggregate cost of remuneration of key management personnel during the year was £124,447 _(2022 - £120,730)_ .
## **11. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits _(2022 - £NIL)_ .
During the year ended 31 August 2023, expenses totalling _£_ 171 were reimbursed or paid directly to 1 Trustee _(2022 - £nil_ ). The expenses related to travel costs and DBS checks.
Page 21
## **RED BALLOON LEARNER CENTRE CAMBRIDGE**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **12. Tangible fixed assets**
|**Cost or valuation**
At 1 September 2022
Additions
At 31 August 2023
**Depreciation**
At 1 September 2022
Charge for the year
At 31 August 2023
**Net book value**
At 31 August 2023
_At 31 August 2022_|**Leasehold**
**improvements**
**£**
**54,343**
**-**
**54,343**
**18,631**
**5,434**
**24,065**
**30,278**
_35,712_|**Fixtures and**
**fittings**
**£**
**10,855**
**630**
**11,485**
**10,029**
**609**
**10,638**
**847**
_826_|**Computer**
**equipment**
**£**
**8,736**
**1,419**
**10,155**
**8,319**
**528**
**8,847**
**1,308**
_417_|**Total**
**£**
**73,934**
**2,049**|
|---|---|---|---|---|
|||||**75,983**|
|||||**36,979**
**6,571**|
|||||**43,550**|
|||||**32,433**|
|||||_36,955_|
Page 22
**RED BALLOON LEARNER CENTRE CAMBRIDGE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **13. Debtors**
|**Due after more than one year**
Other debtors
**Due within one year**
Trade debtors
Other debtors
Prepayments and accrued income|**2023**
**£**
**10,732**
**10,732**
**15,943**
**1,368**
**1,819**
**29,862**|_2022_
_£_
_10,732_|
|---|---|---|
|||_10,732_
_2,186_
_13_
_2,678_|
||||
|||_15,609_|
Included in other debtors due after more than one year is an interest free loan to Red Balloon Learner Centre Group of £10,732 _(2022 - £10,732)_ which is repayable at over 12 months’ notice (i.e. 366 days).
## **14. Creditors: Amounts falling due within one year**
|Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income|**2023**
**£**
**2,544**
**10,424**
**150**
**13,120**
**26,238**|_2022_
_£_
_4,139_
_11,654_
_-_
_6,445_|
|---|---|---|
||||
|||_22,238_|
Page 23
## **RED BALLOON LEARNER CENTRE CAMBRIDGE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **15. Statement of funds**
## **Statement of funds - current year**
|**Unrestricted funds**
General Funds
**Restricted funds**
Funding for garden studio
Parent support fund
16+ provision fund
BBC Children in Need Curiosity fund
Erasmus project fund
Funding for Covid-19 support
Other restricted funds
**Total of funds**|**Balance at 1**
**September**
**2022**
**£**
**518,406**
**486**
**4,939**
**1,096**
**8,562**
**6,692**
**6,034**
**-**
**27,809**
**546,215**|**Income**
**£**
**910,878**
**-**
**-**
**-**
**6,964**
**-**
**-**
**112**
**7,076**
**917,954**|**Expenditure**
**£**
**(897,560)**
**(486)**
**(2,665)**
**(377)**
**(15,526)**
**-**
**(6,034)**
**(112)**
**(25,200)**
**(922,760)**|**Balance at**
**31 August**
**2023**
**£**
**531,724**|
|---|---|---|---|---|
|||||**-**
**2,274**
**719**
**-**
**6,692**
**-**
**-**|
|||||**9,685**|
|||||**541,409**|
Funding for garden studio - Funding received from Qualcomm to build, decorate and equip a garden office studio.
Parent support fund – Donations received from Co-op to support parents via parent support group and Family therapy.
16+ provision fund – Grant received from Qualcomm to provide transition support to former students as they move into further education, training and employment.
BBC Children in Need Curiosity fund – Grant received to fund Science based learning activities.
Erasmus project fund - Funding for a collaborative project between a group of schools in the UK, Cyprus and Poland.
Funding for Covid-19 support - Funding from the National Lottery to support students and their families through the pandemic and beyond. This includes Family therapy.
Other restricted funds - Donation towards the costs of art supplies.
Page 24
## **RED BALLOON LEARNER CENTRE CAMBRIDGE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **15. Statement of funds (continued)**
## **Statement of funds - prior year**
|**Unrestricted funds**
General Funds
**Restricted funds**
Refurbishment & resources fund
Funding for garden studio
Parent support fund
16+ provision fund
BBC Children in Need Curiosity fund
Erasmus project fund
Funding for Covid-19 support
Funding for remote learning
Duke of Edinburgh Awards
**Total of funds**|_Balance at_
_1 September_
_2021_
_£_
_398,761_
_240_
_1,012_
_5,163_
_1,873_
_3,879_
_8,973_
_-_
_902_
_-_
_22,042_
_420,803_|_Income_
_£_
_955,004_
_-_
_-_
_-_
_-_
_6,706_
_2,258_
_8,800_
_-_
_2,000_
_19,764_
_974,768_|_Expenditure_
_£_
_(835,359)_
_(240)_
_(526)_
_(224)_
_(777)_
_(2,023)_
_(4,539)_
_(2,766)_
_(902)_
_(2,000)_
_(13,997)_
_(849,356)_|_Balance at_
_31 August_
_2022_
_£_
_518,406_|
|---|---|---|---|---|
|||||_-_
_486_
_4,939_
_1,096_
_8,562_
_6,692_
_6,034_
_-_
_-_|
|||||_27,809_|
|||||_546,215_|
Page 25
## **RED BALLOON LEARNER CENTRE CAMBRIDGE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **15. Statement of funds (continued)**
Refurbishment & resources fund – Grant received from Qualcomm for the refurbishment of the art room and the purchasing of art materials.
Funding for garden studio - Funding received from Qualcomm to build, decorate and equip a garden office studio.
Parent support fund – Donations received from Co-op to support parents via parent support group and Family therapy.
16+ provision fund – Grant received from Qualcomm to provide transition support to former students as they move into further education, training and employment.
BBC Children in Need Curiosity fund – Grant received to fund Science based learning activities.
Erasmus project fund - Funding for a collaborative project between a group of schools in the UK, Cyprus and Poland.
Funding for Covid-19 support - Funding from the National Lottery to support students and their families through the pandemic and beyond. This includes Family therapy.
Funding for remote learning - Funding from The Leys School, Cambridge to support remote learning with IT equipment.
Duke of Edinburgh Awards - Funding towards costs of students participating in the Duke of Edinburgh Awards Scheme.
## **16. Summary of funds**
## **Summary of funds - current year**
|General funds
Restricted funds|**Balance at 1**
**September**
**2022**
**£**
**518,406**
**27,809**
**546,215**|**Income**
**£**
**910,878**
**7,076**
**917,954**|**Expenditure**
**£**
**(897,560)**
**(25,200)**
**(922,760)**|**Balance at**
**31 August**
**2023**
**£**
**531,724**
**9,685**|
|---|---|---|---|---|
|||||**541,409**|
Page 26
## **RED BALLOON LEARNER CENTRE CAMBRIDGE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **16. Summary of funds (continued) Summary of funds - prior year**
|||_Balance at_||_Balance at_|
|---|---|---|---|---|
|||_1 September_||_31 August_|
|||_2021_|_Income_|_Expenditure_
_2022_|
|||_£_|_£_|_£_
_£_|
|General funds||_398,761_|_955,004_|_(835,359)_
_518,406_|
|Restricted funds||_22,042_|_19,764_|_(13,997)_
_27,809_|
|||_420,803_|_974,768_|_(849,356)_
_546,215_|
|**Analysis of net assets between funds**|||||
|**Analysis of net assets between funds - current year**|||||
||||**Restricted**|**Unrestricted**
**Total**|
||||**funds**|**funds**
**funds**|
||||**2023**|**2023**
**2023**|
||||**£**|**£**
**£**|
|Tangible fixed assets|||-|32,433
**32,433**|
|Debtors due after more than one year|||-|10,732
**10,732**|
|Current assets|||9,685|514,797
**524,482**|
|Creditors due within one year|||-|(26,238)
**(26,238)**|
|**Total**|||9,685|531,724
**541,409**|
|**Analysis of net assets between funds - prior year**|||||
||||_Restricted_|_Unrestricted_
_Total_|
||||_funds_|_funds_
_funds_|
||||_2022_|_2022_
_2022_|
||||_£_|_£_
_£_|
|Tangible fixed assets|||_-_|_36,955_
_36,955_|
|Debtors due after more than one year|||_-_|_10,732_
_10,732_|
|Current assets|||_27,809_|_492,957_
_520,766_|
|Creditors due within one year|||_-_|_(22,238)_
_(22,238)_|
|**Total**|||_27,809_|_518,406_
_546,215_|
||||||
## **17. Analysis of net assets between funds**
Page 27
**RED BALLOON LEARNER CENTRE CAMBRIDGE (A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **18. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net income/expenditure for the year (as per Statement
Activities)
**Adjustments for:**
Depreciation charges
Loss on the sale of fixed assets
Decrease/(increase) in debtors
Increase/(decrease) in creditors
**Net cash generated by operating activities**
**19.**
**Analysis of cash and cash equivalents**
Cash in hand
**Total cash and cash equivalents**
**20.**
**Analysis of changes in net debt**
Cash at bank and in hand|of Financial
**At 1**
**September**
**2022**
**£**
**515,889**
**515,889**|**2023**
_2022_
**£**
_£_
**(4,806)**
_125,412_
**6,571**
_7,621_
**-**
_235_
**(14,253)**
_16,502_
**4,000**
_(10,981)_
**(8,488)**
_138,789_
**2023**
_2022_
**£**
_£_
**505,352**
_515,889_
**505,352**
_515,889_
**Cash flows**
**At 31**
**August 2023**
**£**
**£**
**(10,537)**
**505,352**
**(10,537)**
**505,352**|
|---|---|---|
Page 28
## **RED BALLOON LEARNER CENTRE CAMBRIDGE**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023**
## **21. Pension commitments**
The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £22,458 _(2022 - £21,322)_ . Contributions of £150 _(2022 - £nil)_ were payable to the fund at the balance sheet date and are included in creditors.
## **22. Operating lease commitments**
At 31 August 2023 the charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:
||||**2023**|_2022_|
|---|---|---|---|---|
||||**£**|_£_|
|Not later than|1|year|**31,331**|_23,365_|
Page 29