**Charity registration number 1180754 (England and Wales)**
**Company registration number 11067711**
## **FIRST STAR SCHOLARS UK**
# **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
## **FIRST STAR SCHOLARS UK**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** Stuart Irvine Jason Arday Peter Samuelson Emily Hollis (Appointed 18 October 2024) Tom Brighton (Appointed 18 October 2024) Monica Henao-De-Castro (Appointed 20 October 2024) Teshie Monae (Appointed 18 October 2024) **Secretary** Stuart Irvine **Charity number** 1180754 **Company number** 11067711 **Registered office** 167-169 Great Portland Street London W1W 5PF **Independent examiner** Critchleys Audit LLP First Floor, Park Central 40-41 Park End Street Oxford OX1 1JD
## **FIRST STAR SCHOLARS UK**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 8|
|Independent examiner's report|9|
|Statement of financial activities|10|
|Balance sheet|11|
|Notes to the financial statements|12 - 19|
## **FIRST STAR SCHOLARS UK**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
The trustees present their annual report and financial statements for the year ended 31 March 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's memorandum and articles of association, the Companies Act 2006 and "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).
## **Our Mission, Values, Aims and Objectives**
## **Purpose and Aims**
Our charity's purposes as set out in the objects contained in the company's articles of association are to:
- To provide relief and assistance to people in need who are young people in the United Kingdom who have entered into the social care system in particular but not exclusively by providing them with academic and life skills education and caregiver engagement.
- To advance the education of people in need who are young people in the United Kingdom who have entered into the social care system in particular but not exclusively by providing them with academic and life skills education and caregiver engagement.
## **First Star Scholars UK Mission**
First Star improves the lives of Looked-after Children and Young People by partnering with universities, virtual school heads, schools and designated teachers, social services, carers, and local authorities to ensure looked-after young people have the academic, life skills, and adult support needed to successfully transition to higher education and adulthood. We pursue our mission through innovative university- preparatory programmes, providing professional assistance to stakeholders, and advocating for policy change. To provide a nationally recognised programme that nurtures aspiration and life potential for every care experienced young person.
Our aims and objectives remain rooted in the aspirations we hold for our scholars. During this year we reviewed our original business/strategic plan, and with major goals achieved, undertook a review.
These have been revised and reviewed. Stakeholders including staff, alumni, scholars and carers were consulted and the values of First Star re-established.
Belonging: We are a caring organisation. We nurture the uniqueness of each young person in our programmes. We appreciate their voice, their experiences, beliefs and ambitions and we offer our support and guidance unconditionally, with patience and with kindness.
Empowerment: We believe every young person in our programmes can achieve their potential. We provide an enabling environment that offers them freedom to explore their goals and builds their confidence to achieve them. We support our scholars into adulthood, offering sustaining networks and encouraging them throughout early adult transitions.
Commitment: We continuously support each young person in our programmes to achieve educational and early adulthood success and we will act as their advocates as we seek transformational change for our organisation and our scholars that will improve outcomes for all young people in care.
Partnership: We depend on our partners and the communities in which we work. We seek to work as “one team” with our stakeholders, united in our commitment to support young people in care. In doing so we hold ourselves to the highest standards of educational quality, professional care, and ethical probity.
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## **FIRST STAR SCHOLARS UK**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **Achievements and Performance 2023-2024**
First Star Scholars UK continues to demonstrate significant impact on the lives of care-experienced young people by addressing educational barriers, improving life outcomes, and setting a national benchmark for achievement. Below is a summary of key performance outcomes for the year 2023-2024:
## **1. Educational Achievement**
- **68.6% of First Star Scholars** passed GCSE English and Maths at Grade 4+ (compared to the national average of **18%** for care-experienced young people).
- **46% of Scholars** achieved Grade 5+ in GCSE English and Maths (compared to the national average of **12%** ).
- These results represent **exponential progress** , demonstrating the effectiveness of our academic interventions and tailored support.
## **2. Higher Education Pathways**
- **50% of First Star Scholars** transitioned to university, compared to just **6% of care-experienced young people nationally** .
- This success highlights First Star’s commitment to fostering aspiration, providing academic preparation, and ensuring access to higher education for young people in care.
## **3. Stability and Housing**
- **0% of First Star Scholars** experienced homelessness. Nationally, **40% of care leavers** are at risk of homelessness.
- Our comprehensive alumni support programme, including micro-grants, life skills training, and mentoring, ensures that graduates have the tools to maintain stable housing and independence.
_Strategies for achieving aims and objectives_
## **4. Criminal Justice Engagement**
- **0% of First Star Scholars** had any involvement with the criminal justice system, compared to a national average of **34%** .
- This result underscores the value of proactive interventions, positive role models, and structured programming that equips scholars with life-affirming opportunities and guidance.
## **5. Alumni Success**
- **45% of First Star Graduates** are in further education, training, or employment.
- **5% of graduates** are identified as NEETs (Not in Education, Employment, or Training), a significant improvement compared to national care-leaver figures.
Through our alumni programme, graduates continue to receive one-on-one support, budget advice, study sessions, and opportunities to network and engage socially, ensuring their continued success.
## **Conclusion**
First Star Scholars UK continues to outperform national benchmarks and transform outcomes for care-experienced young people. Our data-driven approach, holistic support systems, and strong partnerships with educational institutions ensure that scholars achieve their full potential in education, housing, and life skills.
Our 2023-2024 performance demonstrates that with sustained intervention, care-experienced young people can defy expectations, thrive academically, and successfully transition into adulthood.
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## **FIRST STAR SCHOLARS UK**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **2.2 Expenditure**
**Total Expenditure:** £337,318 (2023: £294,691) – a **14% increase** .
## **Breakdown of Expenditure:**
- **Staff Costs:** £150,354 (2023: £172,134) – 45% of total costs.
- **Project and Programme Costs:** £19,920.
- **Summer Residential Costs:** £12,322.
- **Consulting:** £49,220.
- **Travel and Subsistence:** £19,244.
## **Analysis:**
- Expenditure rose by **£42,627** , reflecting increased program delivery and consulting costs.
- **Staff costs** decreased by **13% (£21,780)** , potentially linked to staff restructuring or reduced salaries.
- **Consulting costs** (£49,220) and **project delivery** reflect the charity’s investment in program development, though these areas may warrant review for cost-efficiency.
- Travel and subsistence (£19,244) indicate efforts to maintain program delivery, collaboration, and governance.
## **2.3 Net Movement in Funds**
- **Deficit:** £29,193 (2023: Surplus of £17,710).
## **Analysis:**
- The deficit resulted from increased program and consulting expenditures, exceeding available unrestricted income.
- Despite the deficit, strong restricted income growth supported targeted program delivery, highlighting funder confidence.
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## **FIRST STAR SCHOLARS UK**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **2.4 Fund Balances**
- **Restricted Funds:** £108,753 (2023: £59,902)
- Major contributors:
- University of Winchester: £81,867
- FS2U Programme: £26,886
- **Unrestricted Funds:** £15,474 (2023: £93,518)
- **Net Assets:** £124,227 (2023: £153,420).
## **Analysis:**
- Restricted funds grew by **81%** , reflecting increased program-specific funding.
- Unrestricted funds dropped by **£78,044** , reducing flexibility for operational costs and highlighting the need for further unrestricted income generation.
## **2.5 Assets and Liabilities**
- **Tangible Fixed Assets:** £11,474 (Office Equipment).
- **Current Liabilities:** £58,221 (trade creditors, accruals, and taxes).
## **Analysis:**
- Liabilities are manageable but should be closely monitored to ensure cash flow stability.
## **3. Qualitative Analysis**
## **3.1 Achievements and Performance**
First Star Scholars UK successfully secured significant restricted funding to deliver core programs, including support from the University of Winchester and FS2U Programme. The charity’s ability to maintain a steady income of over £300,000 demonstrates strong relationships with funders and donors.
Key highlights include:
- **Program Delivery:** Investment in summer residentials and programs directly supported young people in care, aligning with the charity’s mission.
- **Donor Engagement:** Unrestricted donations remained strong, showcasing donor trust.
## **3.2 Challenges and Risks**
1. **Financial Deficit:** The £29,193 deficit highlights a reliance on restricted funds, with fewer resources available for operational costs.
2. **Cost Management:** Increased consulting and program costs contributed to the deficit. Balancing program delivery with cost-efficiency will be key in the upcoming year.
3. **Unrestricted Income:** The decline in unrestricted funds poses risks to flexibility and sustainability.
## **3.3 Future Plans**
To address the financial deficit and ensure long-term sustainability, the charity will focus on:
- **Diversifying Income:** Expanding corporate sponsorship, individual donor campaigns, and exploring grant opportunities for unrestricted funding.
- **Cost Control:** Reviewing consulting and project delivery costs to improve efficiency without compromising impact.
- **Program Impact:** Strengthening reporting on program outcomes to attract new funders and retain existing supporters
## **4. Conclusion**
First Star Scholars UK remains committed to improving the lives of young people in care. While the financial year ended with a deficit, the substantial growth in restricted funds highlights funder confidence in the charity’s mission and programs. Moving forward, efforts to rebuild unrestricted funds, control costs, and diversify income will be essential for financial stability and continued impact.
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## **FIRST STAR SCHOLARS UK**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **Income**
The charity’s income is generated through grants, donations, and other minor income streams. Restricted funding supports specific programmes and projects, while unrestricted income provides operational flexibility to deliver the charity’s mission and maintain core activities. The vast majority of this was from Trust and Foundations in 2023-24.
## **Expenditure**
Expenditure is allocated to direct charitable activities, programme delivery, and operational support costs. A significant portion of funds is invested in the provision of academic and life skills education for young people in care, including mentoring, residential programmes, and specialised initiatives. Support costs encompass staff salaries, project consulting, IT, and administrative expenses necessary for programme execution and day-to-day operations.
## **Contextual situation 2023-24**
2023-24 there were numerous programmes that were due to run such as at Emmanuel College in Cambridge. These could not run as the finance could not be secured to finances these and there was a consensus reached that these were to be delayed until finance was secured as once we start the programme, we need to be able to complete it.
## **Staffing**
The staffing model was agreed in early 2024, that it was not appropriate and action would need to be taken. This was due to a mixture of reasons including a model that didn’t support the aims and objectives of the charity within the context of our funding, it was agreed that all permanent staff would be made redundant at the end of the 202324 financial year, which happened. The charity continued operating with a lean and effective workforce instead. The workforce was made up of two headteachers, safeguarding and education experts. A small team now manages the organisation’s delivery, supported by consultants where needed. Employee costs in 2023-24 reflect wages, social security contributions, and pension obligations, ensuring compliance with employment standards. There was a reflection that full time staff members need to have a more rigorous approach to benchmarking of salaries moving forward and a maximum cost set for transport (£100 per scholar), no international travels and other measures to remain lean.
## **Assets and Liabilities**
The charity holds minimal tangible fixed assets, primarily office equipment, which are maintained and depreciated over their useful life. Short-term liabilities, such as trade creditors and accruals, are managed prudently to ensure financial stability.
## **Funds Management**
- **Restricted Funds** : These are used exclusively for the purpose specified by funders, including programme delivery, residential costs, and commissioned projects.
- **Unrestricted Funds** : These support the charity’s core activities and operational sustainability. Trustees oversee their allocation to maximise impact.
- **Partnership fees** : Usually £12,000 for the support of our partnership.
Although not for the 2023-24 accounts a full review of finance, the incoming CEO is tasked with creating a model based on the major issues in both philanthropy across the UK and globally coupled with Universities struggling with finances, that will be sustainable moving forward using Pupil premium funding.
## **Governance and Compliance**
The trustees ensure that resources are managed in alignment with the charity’s goals. There were some remuneration payments to trustees, and expenses incurred for travel and subsistence are reimbursed. The charity complies with tax regulations and maintains exemption status as a recognised public benefit entity.
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## **FIRST STAR SCHOLARS UK**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **The Board of Trustees**
The Board of Trustees are directors for the purpose of company law and trustees for the purpose of charity law, who served during the year and up to the date of this report are set out in the accompanying document.
In accordance with company law, as the company's directors, we certify that:
“so far as we are aware, there is no relevant audit information of which the company's independent examiners are unaware; and as the directors of the company we have taken all the steps that we ought to have taken in order to make ourselves aware of any relevant audit information and to establish that the charity's independent examiner is aware of that information.”
## **Public benefit**
The Trustees have complied with the duty in Section 17(5) of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.
## **Independent Examiners**
Critchley's were re-appointed as the charitable company's Independent Examiners providing unaudited accounts and have expressed their willingness to continue in that capacity.
This report has been prepared in accordance with the requirements of the Companies Act 2006. The Independent Examiner is satisfied that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination. The Independent Examiners Report accompanies this document.
## **Reserves policy**
Reserves Policy The Board of Trustees considered the charity's requirements for reserves in light of the main risks to the charity. It has established a policy whereby the unrestricted funds not committed by the charity should be a minimum of 3 months of the expenditure. The reserves target agreed by Trustees is three months in general funds.
The present level of reserves available to the charity of £124,227 exceeds this target level which is considered a minimum level. This is considerably higher than our reserves, but reflects the annual build up towards our time of year in the summer when we have the most expenditure. . Some programmes such as the Cambridge programme are not happening due to not receiving the required levels of funding to begin, and we don't begin programmes without being full funded. The advocacy research, the annual lecture and the evaluation and monitoring activity all happened at an event in the House of Commons. The annual lecture has not yet resumed, however in-depth research into the league table of university providers and access to Higher Education has been completed and was published in summer 2023. First Star has given great focus to the evaluation and monitoring of programmes, beyond simple metrics of GCSE outcomes and developed a project with a partner university in the summer of 2023. The charity continues with a work-from-home policy with appropriate online and face-to-face meetings. Face-to-face meetings have been established as a monthly event wherever possible. Reserves available are £164,664. The timing of donations can affect the held reserves throughout the year.
Restricted funds: The board noted that restricted funds of £156,889 were received.
Restricted funds were spent in compliance with the restrictions of the grant-giving funder.
• The University of Winchester – First Star received funds that were restricted to and expended upon the delivery of this programme - £117,538.
• First Star received funds that were restricted to and expended upon the launch and delivery of the FS2U programme - £27,500.
• The Cambridge Community Foundation - First Star received funds that were restricted to and expended upon the delivery of this programme - £11,851.
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## **FIRST STAR SCHOLARS UK**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **Structure, governance and management**
The charitable company was incorporated as a company limited by guarantee on 16 November 2017.
The governing document of First Star Scholars UK is its Memorandum and Articles of Association.
The Board of Trustees appoints any new Trustees.
On 12 February a resolution was passed to change the name of the charitable company to First Star Scholars UK.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Stuart Irvine Nawtej Dosanjh (Resigned 15 April 2024) Jason Arday Marta Drummond (Resigned 16 April 2024) Peter Samuelson Jade Standley (Appointed 15 June 2023 and resigned 22 April 2024) Colette Fletcher (Appointed 15 June 2023 and resigned 11 April 2024) Imogen Beecroft (Appointed 15 June 2023 and resigned 16 April 2024) Emily Hollis (Appointed 18 October 2024) Catherine Dovey (Resigned 16 April 2024) Tom Brighton (Appointed 18 October 2024) Monica Henao-De-Castro (Appointed 20 October 2024) Teshie Monae (Appointed 18 October 2024)
## **Recruitment and appointment of trustees**
The Directors of the company are also charity trustees for the purposes of charity law and under the company's Articles are known as Trustees. All Trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in the accounts in the accompanying document. First Star's work focuses upon young people in care. The Board of Trustees seeks to ensure that the needs of this group are appropriately reflected through the diversity of the trustee body. Ongoing recruitment of trustees reflects the Board’s focus on breadth of expertise, and lived experience reflecting scholars' lives; and on sustainability and governance. Recruitment reflects the young people in care/care leaver focus of the charity. Two scholar special advisors are nominated annually to attend the Board and represent the newly developed Scholar’s Council and the views and ideas of scholars from all programmes. In addition, the strategic plan has been revised and updated to reflect our expansion intent, advocacy activity and sustainability plans. Stakeholder engagement was sought with empathises on input from scholars and alumni. Four values developed through consultation:
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## **FIRST STAR SCHOLARS UK**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
The trustees' report was approved by the Board of Trustees.
.............................. Stuart Irvine **Trustee** 18 December 2024 Date: .............................................
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## **FIRST STAR SCHOLARS UK**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF FIRST STAR SCHOLARS UK**
I report to the trustees on my examination of the financial statements of First Star Scholars UK for the year ended 31 March 2024.
## **Responsibilities and basis of report**
As the trustees charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
## **Independent examiner's statement**
Since the charity’s gross income exceeded £250,000, the independent examiner must be a member of a body listed in section 145 of the Charities Act 2011. 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 that in any material respect:
- 1 accounting records were not kept in respect of the charity as required by section 386 of the Companies Act 2006.
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the accounting requirements of section 396 of the Companies Act 2006 other than any requirement that the financial statements give a true and fair view, which is not a matter considered as part of an independent examination; or
- 4 the financial statements 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 financial statements 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 financial statements to be reached.
Elinor Upjohn ACA **Critchleys Audit LLP**
First Floor, Park Central 40-41 Park End Street Oxford OX1 1JD
19 December 2024 Dated: .........................
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## **FIRST STAR SCHOLARS UK**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 MARCH 2024**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2024**
**2024**
**Notes**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
151,066
156,889
Investments
**4**
170
-
Other income
**5**
-
-
**Total income**
151,236
156,889
**Expenditure on:**
Charitable activities
**6**
229,280
108,038
**Total expenditure**
229,280
108,038
**Net income/(expenditure) and**
**movement in funds**
(78,044)
48,851
**Reconciliation of funds:**
Fund balances at 1 April 2023
93,518
59,902
**Fund balances at 31 March**
**2024**
15,474
108,753|**Total**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2024**
**2023**
**2023**
**£**
**£**
**£**
307,955
187,280
124,500
170
-
-
-
621
-
308,125
187,901
124,500
337,318
230,093
64,598
337,318
230,093
64,598
(29,193)
(42,192)
59,902
153,420
135,710
-
124,227
93,518
59,902|**Total**
**2023**
**£**
311,780
-
621|
|---|---|---|
|||312,401
294,691|
|||294,691|
|||17,710
135,710|
|||153,420|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
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## **FIRST STAR SCHOLARS UK**
## **BALANCE SHEET**
## _**AS AT 31 MARCH 2024**_
|**Notes**
**Fixed assets**
Tangible assets
**10**
**Current assets**
Debtors
**11**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**12**
**Net current assets**
**Total assets less current liabilities**
**The funds of the charity**
Restricted income funds
**14**
Unrestricted funds
**15**|**2024**
**£**
6,000
164,974
170,974
(58,221)|**£**
11,474
112,753
124,227
108,753
15,474
124,227|**2023**
**£**
-
159,380
159,380
(17,131)|**£**
11,171
142,249|
|---|---|---|---|---|
|||||153,420|
|||||59,902
93,518|
|||||153,420|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2024.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
18 December 2024
The financial statements were approved by the trustees on .........................
.............................. Stuart Irvine **Trustee**
Company registration number 11067711 (England and Wales)
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## **FIRST STAR SCHOLARS UK**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **1 Accounting policies**
## **Charity information**
First Star Scholars UK is a private company limited by guarantee incorporated in England and Wales. The registered office is 167-169 Great Portland Street, London, W1W 5PF.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's articles of association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
## **1.4 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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## **FIRST STAR SCHOLARS UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **1 Accounting policies**
**(Continued)**
## **1.5 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.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Office equipment
Straight line depreciation over 4 years.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
## **1.7 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.
## **1.8 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
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## **FIRST STAR SCHOLARS UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **1 Accounting policies**
## **(Continued)**
## **1.9 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.10 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **2 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.
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.
## **3 Donations and legacies**
||**Unrestricted**|**Restricted**|**Total**|Unrestricted|Restricted|Total|
|---|---|---|---|---|---|---|
||**funds**|**funds**||funds|funds||
||**2024**|**2024**|**2024**|2023|2023|2023|
||**£**|**£**|**£**|£|£|£|
|Grants|53,827|145,038|198,865|91,948|9,500|101,448|
|Donations|97,239|11,851|109,090|95,332|115,000|210,332|
## **4 Income from investments**
||**Unrestricted**|**Unrestricted**|
|---|---|---|
||**funds**|**funds**|
||**2024**|**2023**|
||**£**|**£**|
|Interest receivable|170|-|
- 14 -
## **FIRST STAR SCHOLARS UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **5 Other income**
|||**Unrestricted**|**Unrestricted**|
|---|---|---|---|
|||**funds**|**funds**|
|||**2024**|**2023**|
|||**£**|**£**|
||Other income|-|621|
|**6**|**Charitable activities**|||
|||**2024**|**2023**|
|||**£**|**£**|
||**Support costs**|||
||Staff costs|150,354|172,134|
||Depreciation and impairment|4,574|2,994|
||Advertising and marketing|3,874|891|
||Office costs|10,550|8,814|
||Travel and subsistence|19,244|17,460|
||Information technology|8,360|6,215|
||Other costs|3,084|9,302|
||Independent examination fees|3,360|3,168|
||Accountancy and payroll fees|7,779|4,854|
||Professional fees|602|4,159|
||Recruitment fees|-|7,704|
||Donations given|-|21,112|
||Summer residential costs|12,322|-|
||Consulting|49,220|-|
||Project costs|19,920|-|
|||293,243|258,807|
||**Activities undertaken directly**|||
||Provision of academic and life skills education to children in social care|44,075|35,884|
|||337,318|294,691|
||**Analysis by fund**|||
||Unrestricted funds|229,280|230,093|
||Restricted funds|108,038|64,598|
|||337,318|294,691|
- 15 -
## **FIRST STAR SCHOLARS UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **7 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
## **8 Employees**
The average monthly number of employees during the year was:
|**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2024**
**Number**
6
**2024**
**£**
138,152
7,385
4,817
150,354|**2023**
**Number**
6|
|---|---|---|
|||**2023**
**£**
154,487
11,910
5,737|
|||172,134|
Redundancy and termination payments totalling £6,611 (2023: £Nil) were made in the reporting period.
The number of employees whose annual remuneration was more than £60,000 is as follows:
|||**2024**|**2023**|
|---|---|---|---|
|||**Number**|**Number**|
|£70,001|- £80,000|1|1|
## **9 Taxation**
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
- 16 -
## **FIRST STAR SCHOLARS UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2024**_
|**10**
**Tangible fixed assets**
**Cost**
At 1 April 2023
Additions
At 31 March 2024
**Depreciation and impairment**
At 1 April 2023
Depreciation charged in the year
At 31 March 2024
**Carrying amount**
At 31 March 2024
At 31 March 2023
**11**
**Debtors**
**Amounts falling due within one year:**
Accrued Income
**12**
**Creditors: amounts falling due within one year**
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income
**13**
**Retirement benefit schemes**
**Defined contribution schemes**
Charge to profit or loss in respect of defined contribution schemes|**Office**
**equipment**
**£**
16,240
4,877
21,117
5,069
4,574
9,643
11,474
11,171
**2024**
**2023**
**£**
**£**
6,000
-
**2024**
**2023**
**£**
**£**
4,048
3,801
44,926
10,507
705
243
8,542
2,580
58,221
17,131
**2024**
**2023**
**£**
**£**
4,817
5,737|**Office**
**equipment**
**£**
16,240
4,877
21,117
5,069
4,574
9,643
11,474
11,171
**2024**
**2023**
**£**
**£**
6,000
-
**2024**
**2023**
**£**
**£**
4,048
3,801
44,926
10,507
705
243
8,542
2,580
58,221
17,131
**2024**
**2023**
**£**
**£**
4,817
5,737|
|---|---|---|
|||21,117|
|||5,069
4,574|
|||9,643|
|||11,474|
|||11,171|
|||**2023**
**£**
-|
|||**2023**
**£**
3,801
10,507
243
2,580|
|||17,131|
|||**2023**
**£**
5,737|
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
- 17 -
## **FIRST STAR SCHOLARS UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **14 Restricted funds**
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
||**At 1 April**|**Incoming**|**Resources**|**At 31 March**|
|---|---|---|---|---|
||**2023**|**resources**|**expended**|**2024**|
||**£**|**£**|**£**|**£**|
|University of Winchester|8,000|117,538|(43,671)|81,867|
|FS2U|51,014|27,500|(51,628)|26,886|
|Cambridge Community Foundation|-|11,851|(11,851)|-|
|The Portal Trust|888|-|(888)|-|
||59,902|156,889|(108,038)|108,753|
|**Previous year:**|**At 1 April**|**Incoming**|**Resources**|**At 31 March**|
||**2022**|**resources**|**expended**|**2023**|
||**£**|**£**|**£**|**£**|
|University of Winchester|-|38,000|(30,000)|8,000|
|FS2U|-|55,000|(3,986)|51,014|
|FSS Summer School staffing|-|9,500|(9,500)|-|
|The Portal Trust|-|22,000|(21,112)|888|
||-|124,500|(64,598)|59,902|
University of Winchester - First Star received funds that were restricted to and expended upon the delivery of the programme at the University of Winchester. The programme aims to improve outcomes for looked-after children by boosting their engagement in higher education and includes two annual residentials on campus.
FS2U - First Star received funds that were restricted to and expended upon the launch and delivery of the FS2U programme
FSS Summer School staffing - First Star received funds that were restricted to and spent on staffing the FS2U programme
The Portal Trust - First Star received a restricted grant from the Portal Trust for the commissioning of our Report
Card and League Table. These funds were spent commissioning CIVITAS to undertake this report.
Cambridge Community Foundation - First Star received funds that were restricted to and expended upon the delivery of the programme at Emmanuel College, Cambridge. The programme is dedicated to academic enrichment, year-round mentoring and life skill workshops including a three-week summer campus immersion experience.
- 18 -
## **FIRST STAR SCHOLARS UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2024**_
## **15 Unrestricted funds**
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
||**At 1 April**|**Incoming**|**Resources**|**At 31 March**|
|---|---|---|---|---|
||**2023**|**resources**|**expended**|**2024**|
||**£**|**£**|**£**|**£**|
|General funds|93,518|151,236|(229,280)|15,474|
|**Previous year:**|**At 1 April**|**Incoming**|**Resources**|**At 31 March**|
||**2022**|**resources**|**expended**|**2023**|
||**£**|**£**|**£**|**£**|
|General funds|135,710|187,901|(230,093)|93,518|
## **16 Analysis of net assets between funds**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2024**
**2024**
**£**
**£**
**At 31 March 2024:**
Tangible assets
11,474
-
Current assets/(liabilities)
4,000
108,753
15,474
108,753
**Unrestricted**
**Restricted**
**funds**
**funds**
**2023**
**2023**
**£**
**£**
**At 31 March 2023:**
Tangible assets
11,171
-
Current assets/(liabilities)
82,347
59,902
93,518
59,902|**Total**
**2024**
**£**
11,474
112,753|
|---|---|
||124,227|
||**Total**
**2023**
**£**
11,171
142,249|
||153,420|
## **17 Related party transactions**
During the year ended 31 March 2024, trustee expenses were paid two trustees for travel and subsistence totaling £8,882 (2023: £4,977 to one trustee).
Total trustee donations in the year were £101 (2023: £3,767).
- 19 -