## **Red Sky Foundation** ## **Charity No. 1188683** ## **Company No. CE021236** **Trustees' Report and Unaudited Accounts** **31 March 2023** **Red Sky Foundation Contents** ||Pages|| |---|---|---| |Trustees' Annual Report||2-18| |Independent Examiner's Report||19-32| Page 1 **Red Sky Foundation Trustees Annual Report** The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the unaudited financial statements of the charity for the year ended 31 March 2023. ## **REFERENCE AND ADMINISTRATIVE DETAILS** ## **Company No. CE021236** ## **Charity No. 1188683** ## **Registered Office** North Sands Business Centre Sunderland SR6 0QA ## **Directors and Trustees** The Directors of the charitable company are its Trustees for the purposes of charity law. We are grateful to our Patrons and Ambassadors, who lend us their support, advice and profile to raise awareness of Red Sky Foundation. We were honoured to welcome singer and actress Fayer Tozer-Smith and former lioness football and personality Jill Scott MBE to the Red Sky Foundation community as our patrons. The following Directors and Trustees served during the year: D. Bartell A. Bradley (Resigned 8 June 2023) G. Martin J. Milne - Reader C. Patnaik E. Petrucci B. Robinson ## **Accountants** Avery Martin Accountants Salvus House Aykley Heads Durham Co Durham DH1 5TS The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities. Page 2 **Red Sky Foundation Trustees Annual Report** The above report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime as set out in Part 15 of the Companies Act 2006 and in accordance with the Charities SORP (FRS 102). Signed on behalf of the board D. Bartell Trustee 21 December 2023 Page 3 Red Sky Foundatlon Independent Examlners Report I report to the charlty trustees on my examlnatlon of the financial ststements of Red Sky Foundation for the year ended 31 March 2023. As the charity's trustees of the company land also its directors forthe purposes of company lawl you are responsible for the preparation of the financial 5taternents In accordan￿ with the ￿uIreMents of the Companies Act 2(￿ I'the 2(￿6 ACL Having satisfied rny5elfthat the financial statements of the Charity are not required to be audited under Part 16 of the 2CI)6 Art and are eligible for independent examination. I report in respect of my examination of your charivs financial ststements as carried out under sectK>n 145 of the Charities Act 20111'the 2011 Art). In carrying out my examination I have followed the Direttions given ￿ the tharity C(Knmission under section 145{5) (bl of the 2011 Act Independent examlnerfs statement As the charity's gross income exceeded £250.IKKI your examiner must be a member of a body listed om in sectlon 145 ofthe 2011 Act. I can confim) l am qualified to undertake the examination because l am member of. the A5SOaation of International Accountants. which is one of the listed bodies. I have Completed my examination. I can confimi that no material matters have come to my attert￿On In connertion with the examinatlon gNing me cause to believe: • accounti￿8 records were not kept in accordance with section 386 of the 2l￿ Act.. or the finanaal statements do not accord with those records. or • the financial statements do not comply with the accounting requirements under section 396 of the 21x56 Art other than any requirement that the finanaal statements gt¥e a 'true and fairf view which s not a matter considered as part of an independent exarnination; or the financial 5tstements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reportin8 by tharities applicable to tharttles preparing their accounts in accordance with the Financial Remin8 Stsndard applicable in the UK and Republic of Ireland {FRS 1021. I have no concems and have come across no other matter5 In connection wlth the examlnation to whlth attentlon should be drawn in this repjrt in order to enable a proper understanding of the financial Statements to be reathed. A5$0ciation of International Accwntants Avery Martin Accountants Salvus House Aykley Heads Durham Co Durham OHI 5TS 21 December 2023 Page 4 **Red Sky Foundation Statement of Financial Activities** ## **for the year ended 31 March 2023** |**Notes**
**Income and endowments**
**from:**
Donations and legacies
4
Charitable activities
5
Other
6
**Total**
**Expenditure on:**
Raising funds
7
Charitable activities
8
Other
9
**Total**
Net gains on investments
**Net income**
Transfers between funds
**Net income before other**
**gains/(losses)**
**Other gains and losses**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**funds**
**2023**
**£**
87,726
314,690
1,448|**Restricted**
**funds**
**2023**
**£**
224,464
-
-|**Total funds**
**2023**
**£**
312,190
314,690
1,448|**Total funds**
**2022**
**£**
86,900
325,550
6,683| |---|---|---|---|---| ||403,864
111,090
245,769
88,543|224,464
-
-
-|628,328
111,090
245,769
88,543|419,133
91,565
150,776
49,661| ||445,402
-|-
-|445,402
-|292,002
-| ||(41,538)
-|224,464
-|182,926
-|127,131
-| ||(41,538)|224,464|182,926|127,131| ||(41,538)
168,393|224,464
-|182,926
168,393|127,131
41,262| ||126,855|224,464|351,319|168,393| Page 5 **Red Sky Foundation Summary Income and Expenditure Account for the year ended 31 March 2023** |Income
**Gross income for the year**
Expenditure
**Total expenditure for the year**
Net income before tax for the year
**Net income for the year**|**2023**
**£**
628,328
628,328
445,402
445,402
182,926
182,926|**2022**
**£**
419,133| |---|---|---| |||419,133| |||292,002| |||292,002| |||127,131| |||127,131| Page 6 **Red Sky Foundation Balance Sheet** ## **at 31 March 2023** |**Company No.**
**CE021236**
**Notes**
**2023**
**£**
**Fixed assets**
Tangible assets
12
34,544
34,544
**Current assets**
Debtors
13
27,251
Cash at bank and in hand
349,669
376,920
**Creditors:**Amount falling due within one year
14
(60,145)
**Net current assets**
316,775
**Total assets less current liabilities**
351,319
**Net assets excluding pension asset or liability**
351,319
**Total net assets**
351,319
**The funds of the charity**
**Restricted funds**
15
Restricted income funds
224,464
224,464
**Unrestricted funds**
15
General funds
126,855
126,855
**Reserves**
15
**Total funds**
351,319|**2022**
**£**
-| |---|---| ||-
18,910
161,017| ||179,927
(11,534)| ||168,393
168,393| ||168,393| ||168,393| ||-| ||-
168,393| ||168,393| ||168,393| These accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. For the year ended 31 March 2023 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts. Approved by the board on 21 December 2023 And signed on its behalf by: D. Bartell Trustee 21 December 2023 Page 7 **Red Sky Foundation Statement of Cash flows for the year ended 31 March 2023** |**Cash flows from operating activities**
**Net income per Statement of Financial Activities**
**Adjustments for:**
Dividends, interest and rents from investments
Increase in trade and other receivables
Increase in trade and other payables
**Net cash provided by operating activities**
**Cash flows from investing activities**
Dividends, interest and rents from investments
**Net cash from investing activities**
**Net cash from financing activities**
**Net increase in cash and cash equivalents**
**Cash and cash equivalents at the beginning of the year**
**Cash and cash equivalents at the end of the year**
**Components of cash and cash equivalents**
Cash and bank balances|**2023**
**£**
182,926
(1,448)
(8,341)
48,613
221,750
1,448
1,448
-
223,198
161,017
384,215
349,669
349,669|**2022**
**£**
127,131
(6,683)
(18,910)
11,533| |---|---|---| |||113,071
6,683| |||6,683| |||| |||-| |||| |||119,754| |||-| |||119,754| |||| |||161,017| |||| |||161,017| Page 8 **Red Sky Foundation Notes to the Accounts** ## **for the year ended 31 March 2023** - 1 **Accounting policies** ## **Basis of preparation** The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. ## **Change in basis of accounting or to previous accounts** There has been no change to the accounting policies (valuation rules and method of accounting) since last year and no changes have been made to accounts for previous years. ## **Fund accounting** - Unrestricted funds These are available for use at the discretion of the trustees in furtherance of the general objects of the charity. - Designated funds These are unrestricted funds earmarked by the trustees for particular purposes. Revaluation funds These are unrestricted funds which include a revaluation reserve representing the restatement of investment assets at their market values. - Restricted funds These are available for use subject to restrictions imposed by the donor or through terms of an appeal. ## **Income** - Recognition of Income is included in the Statement of Financial Activities (SoFA) when the charity income becomes entitled to, and virtually certain to receive, the income and the amount of the income can be measured with sufficient reliability. - Income with related Where income has related expenditure the income and related expenditure is expenditure reported gross in the SoFA. Donations and Voluntary income received by way of grants, donations and gifts is included in the legacies the SoFA when receivable and only when the Charity has unconditional entitlement to the income. - Tax reclaims on Income from tax reclaims is included in the SoFA at the same time as the donations and gifts gift/donation to which it relates. Donated services These are only included in income (with an equivalent amount in expenditure) and facilities where the benefit to the Charity is reasonably quantifiable, measurable and material. Volunteer help The value of any volunteer help received is not included in the accounts. Investment income This is included in the accounts when receivable. Gains/(losses) on This includes any gain or loss resulting from revaluing investments to market value revaluation of fixed at the end of the year. assets Gains/(losses) on This includes any gain or loss on the sale of investments. investment assets Page 9 **Red Sky Foundation Notes to the Accounts** ## **Expenditure** - Recognition of Expenditure is recognised on an accruals basis. Expenditure includes any VAT which expenditure cannot be fully recovered, and is reported as part of the expenditure to which it relates. - Expenditure on These comprise the costs associated with attracting voluntary income, fundraising raising funds trading costs and investment management costs. Expenditure on These comprise the costs incurred by the Charity in the delivery of its activities and charitable activities services in the furtherance of its objects, including the making of grants and governance costs. - Grants payable All grant expenditure is accounted for on an actual paid basis plus an accrual for grants that have been approved by the trustees at the end of the year but not yet paid. - Governance costs These include those costs associated with meeting the constitutional and statutory requirements of the Charity, including any audit/independent examination fees, costs linked to the strategic management of the Charity, together with a share of other administration costs. - Other expenditure These are support costs not allocated to a particular activity. ## **Taxation** The charity is exempt from corporation tax on its charitable activities. ## **Freehold investment property** Investment properties are measured initially at cost and subsequently at fair value at each balance sheet date and are not depreciated. All gains or losses are taken to the Statement of Financial Activities as they arise. ## **Stocks** Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market. ## **Trade and other debtors** Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. ## **Cash and cash equivalents** Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management. ## **Trade and other creditors** Short term creditors are measured at the transaction price. Other creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. Page 10 **Red Sky Foundation Notes to the Accounts** ## **Research and development** Expenditure on research and development is written off in the year in which it is incurred. ## **Foreign currencies** Monetary assets and liabilities denominated in currencies other than the functional currency of the charity are translated at the rates of exchange prevailing at the end of the reporting period. Transactions in currencies other than the functional currency of the charity are recorded at the rate of exchange on the date that the transaction occurred. All exchange differences are are taken into account in arriving at net income/expenditure. ## **Leased assets** Where the charity enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease. Leases which do not transfer substantially all the risks and rewards of ownership to charity are classified as operating leases. Assets held under finance leases are initially recognised as assets of the charity at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the charity's policy on borrowing costs. Assets held under finance leases are depreciated in the same way as owned assets. Operating lease payments are recognised as an expense on a straight-line basis over the lease term. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis. ## **Pension costs** The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations. The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds. ## **Receipt of donated goods, facilities and services** All donated goods, facilities and services received are recognised within incoming resources and expenditure at an estimate of the value to the charity. ## 2 **Company status** The company is a private company limited by guarantee and consequently does not have share capital. Page 11 **Red Sky Foundation Notes to the Accounts** ## 3 **Statement of Financial Activities - prior year** |**Income and endowments from:**
Donations and legacies
Charitable activities
Other
**Total**
**Expenditure on:**
Raising funds
Charitable activities
Other
**Total**
**Net income**
**Net income before other**
**gains/(losses)**
**Other gains and losses:**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**
4
**Income from donations and legacies**
5
**Income from charitable activities**|**Unrestricted**
**£**
41,831
45,895
87,726|**Restricted**
**£**
82,310
142,154
224,464
**Unrestricted**
**£**
314,690
314,690|**Unrestricted**
**funds**
**2022**
**£**
86,900
325,550
6,683
419,133
91,565
150,776
49,661
292,002
127,131
127,131
127,131
41,262
168,393
**Total**
**2023**
**£**
124,141
188,049
312,190
**Total**
**2023**
**£**
314,690
314,690|**Total funds**
**2022**
**£**
86,900
325,550
6,683| |---|---|---|---|---| |||||419,133
91,565
150,776
49,661| |||||292,002| |||||127,131| |||||127,131| |||||127,131
41,262| |||||168,393| |||||**Total**
**2022**
**£**
44,504
42,396| |||||86,900| |||||**Total**
**2022**
**£**
325,550| |||||325,550| Page 12 **Red Sky Foundation Notes to the Accounts** ## 6 **Other income** |7
**Expenditure on raising funds**
_Costs of generating voluntary_
_income_
_Fundraising trading costs_
8
**Expenditure on charitable activities**
_Expenditure on charitable_
_activities_
Grants made
_Governance costs_
9
**Other expenditure**
Employee costs
Motor and travel costs
Premises costs
General administrative costs
Legal and professional costs|**Unrestricted**
**£**
1,448
1,448|**Total**
**2023**
**£**
1,448
1,448|**Total**
**2022**
**£**
6,683| |---|---|---|---| ||||6,683| ||||| ||**Unrestricted**
**£**
109,686
1,404
111,090
**Unrestricted**
**£**
4,280
241,489
245,769
**Unrestricted**
**£**
514
54,430
1,370
23,722
5,432
3,075
88,543|**Total**
**2023**
**£**
109,686
1,404
111,090
**Total**
**2023**
**£**
4,280
241,489
245,769
**Total**
**2023**
**£**
514
54,430
1,370
23,722
5,432
3,075
88,543|**Total**
**2022**
**£**
91,565
-| ||||91,565| ||||**Total**
**2022**
**£**
69,903
80,873| ||||150,776| ||||**Total**
**2022**
**£**
-
45,722
224
-
1,352
2,363| ||||49,661| Page 13 **Red Sky Foundation Notes to the Accounts** ## 10 **Trustee remuneration and expenses** |Number of trustees paid expenses
11 **Staff costs**
Salaries and wages
Social security costs
Pension costs
No employee received emoluments in excess of £60,000.
12 **Tangible fixed assets**
**Cost or revaluation**
At 1 April 2022
At 31 March 2023
**Net book values**
At 31 March 2023
At 31 March 2022
13 **Debtors**
Trade debtors
Prepayments and accrued income
14 **Creditors:**
amounts falling due within one year
Trade creditors
Other taxes and social security
Other creditors
Accruals|**2023**
**Number**
-
**2023**
50,000
430
4,000
54,430
**2023**
**£**
28,251
(1,000)
27,251
**2023**
**£**
55,716
1,262
3,168
(1)
60,145|**£**
34,544
34,544
34,544
34,544|**2022**
**Number**
7
**2022**
41,250
472
4,000| |---|---|---|---| ||||45,722| ||||**£**
34,544| ||||34,544| ||||34,544| ||||34,544| ||||**2022**
**£**
18,910
-| ||||18,910| ||||**2022**
**£**
3,435
4,960
3,138
1| ||||11,534| Page 14 **Red Sky Foundation Notes to the Accounts** ## 15 **Movement in funds** |**At 1 April**
**2022**
**Restricted funds:**
**Restricted income funds:**
Restricted Fund
-
_Total_
-
**Unrestricted funds:**
**General funds**
168,393
**Total funds**
168,393
Purposes and restrictions in relation to the funds:
Restricted funds:
Restricted Fund
Equipment Purchase
16 **Analysis of net assets between funds**
Fixed assets
Net current assets
17 **Reconciliation of net debt**
Cash and cash equivalents
Net debt|**Incoming**
**resources**
**(including**
**other**
**gains/losses**
**)**
**£**
224,464
224,464
403,864
628,328|**Resources**
**expended**
**£**
-
-
(445,402)
(445,402)|**At 31**
**March**
**2023**
**£**
224,464| |---|---|---|---| ||||224,464| ||||126,855| ||||351,319| ||||| ||||| ||||| ||**Unrestricted**
**funds**
**£**
34,544
95,261
129,805
**At 1 April**
**2022**
**£**|**Restricted**
**funds**
**£**
-
221,514
221,514
**Cash flows**
**£**|**Total**
**£**
34,544
316,775| ||||351,319| ||||**At 31**
**March**
**2023**
**£**| ||161,017|188,652|349,669| ||161,017
161,017|188,652
188,652|349,669| ||||349,669| Page 15 **Red Sky Foundation Notes to the Accounts** ## 18 **Commitments** ## _**Operating lease commitments**_ Annual commitments under non-cancellable operating leases are as follows: ||**2023**|**2023**|**2022**|**2022**| |---|---|---|---|---| ||**Land and**
**buildings**|**Other**|**Land and**
**buildings**|**Other**| ||**£**|**£**|**£**|**£**| |Operating leases with expiry date:||||| |**_Pension commitments_**||||| |||**2023**||**2022**| |||**£**||**£**| |The pension cost charge to the company||||| |amounted to:||4,000||4,000| 19 **Related party disclosures** _**Controlling party**_ The company is limited by guarantee and has no share capital; thus no single party controls the company. Page 16 **Red Sky Foundation Detailed Statement of Financial Activities** ## **for the year ended 31 March 2023** |**Income and endowments from:**
Donations and legacies
Charitable activities
Other
**Total income and endowments**
**Expenditure on:**
Costs of generating donations and
legacies
Costs of other trading activities
**Total of expenditure on raising**
**funds**
Charitable activities
Grants made
**Total of expenditure on charitable**
**activities**
Other expenditure
Employee costs
Directors' remuneration
Employer's NIC
Pension costs
Motor and travel costs
Vehicles - General costs
Travel and subsistence|**Unrestricte**
**d funds**
**2023**
**£**
41,831
45,895
87,726
314,690
314,690
1,448
1,448
403,864
109,686
109,686
1,404
1,404
111,090
4,280
241,489
245,769
245,769
514
514
50,000
430
4,000
54,430
1,370
-|**Restricted**
**funds**
**2023**
**£**
82,310
142,154
224,464
-
-
-
-
224,464
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-|**Total funds**
**2023**
**£**
124,141
188,049
312,190
314,690
314,690
1,448
1,448
628,328
109,686
109,686
1,404
1,404
111,090
4,280
241,489
245,769
245,769
514
514
50,000
430
4,000
54,430
1,370
-|**Total funds**
**2022**
**£**
44,504
42,396| |---|---|---|---|---| |||||86,900| |||||325,550| |||||325,550| |||||6,683| |||||6,683| |||||419,133
91,565| |||||91,565| |||||-| |||||-| |||||91,565
69,903
80,873| |||||150,776| |||||150,776
-| |||||-| |||||41,250
472
4,000| |||||45,722| |||||-
224| Page 17 ## **Red Sky Foundation Detailed Statement of Financial Activities** |Premises costs
Rent
Rates
General administrative costs,
including depreciation and
amortisation
Bank charges
General insurances
Postage and couriers
Software, IT support and related
costs
Stationery and printing
Subscriptions
Sundry expenses
Legal and professional costs
Consultancy fees
**Total of expenditure of other costs**
**Total expenditure**
Net gains on investments
**Net income**
**Net income before other**
**gains/(losses)**
Other Gains
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|1,370
210
23,512
23,722
2,483
1,247
491
191
12
789
219
5,432
3,075
3,075
88,543
445,402
-
(41,538)
(41,538)
-
(41,538)
168,393
126,855|-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
224,464
224,464
-
224,464
-
224,464|1,370
210
23,512
23,722
2,483
1,247
491
191
12
789
219
5,432
3,075
3,075
88,543
445,402
-
182,926
182,926
-
182,926
168,393
351,319|224| |---|---|---|---|---| |||||-
-| |||||-| |||||471
-
74
102
131
574
-| |||||1,352| |||||2,363| |||||2,363| |||||| |||||49,661| |||||292,002
-| |||||127,131| |||||127,131
-| |||||127,131| |||||41,262| |||||168,393| Page 18 ## **RED SKY FOUNDATION** ## **Report of the Trustees for the Year Ended 31 March 2023** The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2023. The trustees have adopted the provisions of 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). ## **OBJECTIVES AND ACTIVITIES** Our vision and objectives are to relieve sickness and preserve the health of individuals across the North East and wider areas of the UK by assisting in the provision of grants, equipment and raising awareness in particular but not limited to the provision of grants to local community groups, local health services and other charitable organisations. Red Sky Foundation supports babies, children and adults living with complex heart conditions and this support is extended to funding specialist machinery and equipment, education programmes focused on healthy hearts and lifestyles while providing a funded counselling service. Our objective of preserving life by providing serviced defibrillators for local schools and public places is enhanced by providing training and education to the general public on the use of defibrillators and CPR to advanced support for babies, children and adults with heart problems and their families. ## **Public benefit** The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the aims and objectives and for future planning to deliver on the charity's goals and objectives. The charitable objectives are also set out in order to provide a clear and demonstrable public benefit. All of our charitable activities focus on saving the lives of people of all ages who are born with or those who develop complex heart conditions and supporting their families when and where required. Red Sky Foundation also aims to reduce the number of deaths from sudden cardiac arrest and a major focus on medical treatment and the preservation of life with the provision of machines, equipment and medical care to treat people with heart conditions or illness which can lead to cardiac complications. By providing these activities they further enhance our provision and charitable purpose for overall public benefit. Red Sky Foundation reviews its aims, objectives and activities each year and updates both the strategic development and operational delivery plans to reflect the decisions taken. The review considers the achievements and outcomes of the work over the previous 12 months. It evaluates the success of each key activity and the benefits brought to the communities we serve. It also considers barriers, challenges and failures experienced to ensure our services are effective and fit for purpose. In addition, it helps us ensure our aims, objectives and activities remain focussed on our purpose. Page 19 ## **RED SKY FOUNDATION** ## **Report of the Trustees for the Year Ended 31 March 2023** The Charity has referred to the Charity Commission's guidance on Public Benefit when reviewing our aims and objectives, and in planning our future activities. In particular, the Trustees consider how planned activities will contribute to the Charity's aims and objectives. Page 20 ## **RED SKY FOUNDATION** ## **Report of the Trustees for the Year Ended 31 March 2023** ## **ACHIEVEMENT AND PERFORMANCE** The objectives of the Charity do not restrict the delivery of activities to a specific geographical area, however much of the funding we currently raise are for services we provide for people living in Sunderland, South Tyneside, County Durham and Newcastle. The North East still has some of the worst cases of cardiac related illness and death rates in the UK. The North East is a region with large areas of deprivation and poor health which can contribute to cardiovascular conditions, congenital heart disease, heart attacks and sudden cardiac arrest. Much of the UK has experienced an impact on heart health. Many people waiting for consultations or first time appointments for diagnosis of heart conditions were unfortunately made to wait longer than normal and death rates due to cardiac illness are increasing. We work with community groups, schools, workplaces families and individuals from every socioeconomic background and see high levels of interest in our services from areas with high levels of social deprivation. We continue to deliver programmes that keep our beneficiaries including families and individuals in need of coronary care fully supported to the best of our ability. In addition, we have continued to progress and develop our defibrillator guardian database and support record system while enhancing our education programme designed to educate, inspire and help delegates understand the benefits of early CPR, the use of a defibrillator and what actions to take in the event of a medical emergency. With the introduction of learning about healthy lifestyles and small improvements to diet and exercise, learning about different food types and the impact food can have on heart health, Red Sky Foundation offers an encompassing approach to helping to change the way children and adults look after their bodies. Regular feedback from participants with regular reporting on the impact of our service allows Red Sky Foundation to enhance and see the difference we are making to our beneficiaries. This enables us to provide an up to date evidence­ based assessment to help external stakeholders and our partners engage with and understand our work helping us to work more effectively and efficiently whilst providing useful information to evaluate and perfect our objectives to the needs of our service users. A more detailed description of our activities and achievements for the year ended 31 March 2023 is provided below. In the year to 31 March 2023, Red Sky Foundation has: - Visited 27 schools and academies demonstrating providing healthy heart, CPR & Defibrillator skills - Visited 23 Community hubs and centres, work-spaces and sporting clubs - Guest Speaking slots at Sunderland University to students across all campuses. - Provided South Tyneside & Sunderland NHS Trust with a Fujifilm FDR Nano used for Page 21 ## **RED SKY FOUNDATION** ## **Report of the Trustees for the Year Ended 31 March 2023** mobile imaging providing high quality X-Ray imaging easily handled in a variety of settings for premature babies to examine heart function, brain and lung capacity. - Invested in securing 106 places in our second Great North Run raising over £28,000 - Partnered with registered charity CEO Sleepout for a second year to fundraise and increase awareness of cardiac health for homeless people living with addictions - Added to our network of defibrillators and placed them onto the national database for defibrillator network across the UK called the Circuit to register them with the emergency services. - Partnered with schools in Sunderland, Durham, South Tyneside and Newcaslte education network to demonstrate heart health, cpr and defibrillator awareness sessions. - Collaborated with another charitable organisation called IMP ACT North East to provide and engage with families affected by cardiac related illness and deaths. During the year we like many others Red Sky Foundation was still under covid restrictions and we had to adapt and continue to show agility, resilience and determination to find alternative ways to fundraise by the following: - We made use of digital online fundraising platforms attracting more partners and charity fundraisers introducing virtual events on enthuse and just giving. - Red Sky Foundation was awarded full ongoing official charity partnership status in the Sunderland Runs for a second year running. - The White Party was reintroduced while still adhering to the rules and lighter restrictions placed due to covid raising £50,000 - We also held another successful golf day, and we held our annual Red Sky Ball in March 2023 welcoming over 1000 guests to help raise over £110,000 in unrestricted charitable funds. During the year 2022/23 Red Sky Foundation: - Donated 101 defibrillators worth over £100,000 to grassroots football clubs all over the UK - Hosted the annual cycling challenge from Edinburgh to Sunderland with over 25 riders taking part raising unrestricted funds - We partnered with Pro-motiv8 holding a local football tournament for children, using it to train more than 250 children and their families in cpr - Hosted the annual Red Sky Golf Classic raising over £26,000. - Using innovation, design and technology we received a handmade interactive wishing well and to collect unrestricted funds inside of the Bridges Shopping Centre in Sunderland city centre - Entered into a new tenancy agreement inside of the Bridges in Sunderland enabling us to store our assets safely and securely - In December 2022 we participated in the Great Xmas Raffle with Chairty Escapes and Vertu motors - one of our Red Sky Foundation supporters Page 22 ## **RED SKY FOUNDATION** ## **Report of the Trustees for the Year Ended 31 March 2023** bought the winning ticket and won a brand new VW Polo helping to raise more awareness of the charity. - The annual reindeer dash took place as we extended our relationship with Sunderland Business Improvement District and another charity called The Foundation of Light - the event attracted children to run around the bridges shopping centre in a health and fitness initiative. During the year 2022/23 Red Sky Foundation (cont.): - Red Sky Foundation recorded record income in charitable funds - The charity bought a new van and gained financial support to pay for it through in kind sponsorship from Lookers Motor Group and Everyone Active. The vehicle helps with the transportation of life saving defibrillators to new sites, transports the educational resuscitation dolls for school and community visits. It is among the most valuable assets of the charity. ## **Community and Hospital Unit Cardiac Services Support** Red Sky Foundation provide support, education and guidance to schools, communities and work places keen to improve on the skills required to preserve life. Our focus is on increasing the safety and the chances of surviving out of hospital cardiac arrests and empowering them to make positive impacts in the region. Following a needs assessment, we work with the NHS and the North East Ambulance Service to develop a support plan for everyone with in our service areas to cover topics such as heart health, skills development, confidence to use a life saving defibrillator and an area demographic pinpointing the key areas to place an external automated device. The service is delivered in group sessions allowing Red Sky Foundation to bring individuals together and fill the gap around community loneliness and through our group work we are able to encourage conversation and personal development programmes. We currently deliver services in all over the North East and we have concentrated out efforts in South Tyneside and Sunderland where there is still a desperate need for an increase in defibrillators. However, we have identified these areas as places in need of our support and our cardiac equipment to help save lives, as a result we work with local counsellors and health professionals using restricted funds through grants awarded to Red Sky Foundation to fulfil the needs of our communities. Red Sky Foundation also delivers support for families and individuals affected by bereavement and the trauma involved in heart related death or ongoing treatment for such heart related conditions. The charity works closely with colleagues within local authorities around the North East, including close working Page 23 ## **RED SKY FOUNDATION** ## **Report of the Trustees for the Year Ended 31 March 2023** partnerships with Northumbria and Durham Police, the Fire Service and Ambulance Service from across the region. The charity receives valuable insight in to working requirements and needs from cardiologists, specialist nurses and cardiac consultants in heart units at the Freeman Hospital, Sunderland Royal Hospital and James Cook Hospital in Teesside. Red Sky Foundation work collaboratively with other specialist organisations and other charities to help those in need of our support and their families. As previous covered, during the year, Red Sky Foundation have provided education sessions at 50 different locations across the region to increase the awareness and knowledge providing in excess of 25,000 individuals with the skills needed to save a life in the event of a cardiac arrest. Our sessions focused on personal development, core values, healthy living with an emphasis on diet and regular exercise to demonstrate the results of following our advice can lead to a healthier lifestyle and increasing the chances of reducing cardiac related illnesses. ## **Healthy Hearts Programme for those using exercise in their daily routines.** Red Sky Foundation continues to partner with the leisure provider Everyone Active as a channel to deliver our projects to focus on swimming and cardiovascular exercise. We offer participating individuals and attendees of Red Sky Foundation events including those who attend our information sessions the chance to experience exercise by providing single and family access to exercise passes to the leisure centres who can provide further hints and tips to maintain a healthy heart lifestyle. These services were offered in Sunderland and Washington in Tyne & Wear. Page 24 ## **RED SKY FOUNDATION** ## **Report of the Trustees for the Year Ended 31 March 2023** Our Restart A Heart project is offered to communities, schools and work places all year round at zero cost to the recipient and it has reached nearly double the amount of schools we visited in the previous year. This year we visited 27 primary and secondary schools each engaging in the programme where every member of staff and each student are given the skills they need to be able to save a life. They are also given the skills which are transferrable to take home and demonstrate their newly acquired skills to others which will have a positive impact on them, their families and the wider community. Red Sky Foundation has been developing its partnership with Durham County Cricket Club Community Foundation and also with Grassroots Football UK to work with grassroots sports teams and a partnership has flourished with the South Tyneside Bowling Association. During the year the charity has bonded to collaborate with The Women's Institute across the North East, the University of the 3rd Age and other local sports and social clubs enabling many more individuals and group to access our services. Boxing Day Dip - we partnered with Lions International to organise the Sunderland Boxing Day dip to encourage fundraising to be shared equally between us both. We demonstrated our ability to host and organise a large scale public event in open space and attracted many supporters of local and national charities to take part raising money for lots of different causes. As the organiser, Red Sky Foundation gained huge awareness and many commendations from members of the public and the local authorities. ## **Hospital Trusts** Red Sky Foundation are in regular contact with specialist cardiac units specific to Freeman Hospital, Sunderland Royal Hospital and James Cook to help and support improve care for babies, children and adults in need of cardiac surgery and care. To better understand the individual needs and demands of each hospital and their relevant departments regular strategy meetings have been held throughout the year and the charity has offered support to fully fund specialist machinery for quicker patient diagnosis and treatment. Red Sky Foundation fulfilled its mission to purchase a specialist Fujifilm Nano Machine with ground breaking technology and the charity made a framework and timescale for us to commit to funding for the equipment and this was delivered on time. ## **Our Staff and Volunteers** The quality and effectiveness of our services are significantly influenced by the drive, determination, attitude and competence of our founder CEO and our board of trustees hence our commitment to continuous improvement through training and support is being realised. We have a bank of volunteers who are committed and passionate about the work we are delivering and the charity provides them with ongoing personal and professional development throughout Page 25 ## **RED SKY FOUNDATION** ## **Report of the Trustees for the Year Ended 31 March 2023** the time they offer. This directly impacts upon our ability to provide a quality user experience which delivers outcomes for beneficiaries, fundraisers and supporters. In addition, we currently have now have 35 regular and reliable volunteers who support our work in communities across South Tyneside, Durham, Newcastle and Sunderland. We aim to provide the best volunteering opportunities, experience and high­ quality support for those who volunteer with us. Our CEO provides them with a clear role, explaining what is expected and when they are needed to volunteer. A process is in place for them to be offered an induction to their role and any relevant training required is provided. Red Sky Foundation values the involvement of local people as volunteers in activities that enhance the experience of those who engage with our services. Without volunteers, supporters and fundraisers we wouldn't be able to deliver the outstanding services that we do today. The Charity's continued success in meeting its aims and objectives is a testimony to our people. We are grateful for their passion and commitment in their work and their sense of responsibility to the communities, hospitals, heart heroes and the families we exist to serve. Page 26 ## **RED SKY FOUNDATION** ## **Report of the Trustees for the Year Ended 31 March 2023** ## **Compliments, concerns and complaints** We genuinely want to hear feedback, compliments help us to do more of what works, concerns and complaints help us improve. Red Sky Foundation aims to deliver excellence and provide an unrivalled fundraising experience. Most of the time we do this but unfortunately in the very rare occasion sometimes we don't get it right. If anyone accessing our service feel that's the case, we encourage them to tell us straight away or as soon as they can. The charity has a robust policy and procedure in place and we ensure those accessing our services and other members of the public that they have the support to feedback to us. Red Sky Foundation is registered with the fundraising regulator who set a code of fundraising practice setting standards that apply to our fundraising activities. ## **Partnership Work** Red Sky Foundation is committed to the principle of partnership working and collaborating to maximise the effectiveness of our own services and we are keen to work with and learn from other organisations. In each of the areas in which we work, we have developed strong links at delivery, practitioner and strategic levels to ensure we can offer the best service to our stakeholders. ## **FINANCIAL REVIEW Principle sources of funding** We would like to give thanks to the individuals who have made personal donations to the charity over this year whose contributions allow us to make purchases for essential life saving equipment machinery and services. ## **Reserves policy** The policy of the trustees is to ensure the general reserve is sufficient to cover up to a maximum of 12 months running costs which is estimated to be £100,000. The reserves policy is reviewed annually and amended by the trustees if necessary. The trustees have the authority to invest in such assets they see fit. The unrestricted reserves of the charity amount to £126,855 for 2023 (2022: £168,393) at the year end. The trustees have restructured the budgets for the coming year and believe that this is sufficient to meet the running costs of the Charity. We want to strengthen the reserves to make the charity more resilient to unexpected development. The amount of funds which are restricted and not available for general purposes of the charity at the end of the reporting period is £224,464. This gives total funds the charity holds at the end of the reporting period of £351,319 at 31.03.2023 and (£168,393) Page 27 ## **RED SKY FOUNDATION** ## **Report of the Trustees for the Year Ended 31 March 2023** ## **FINANCIAL REVIEW** Services provided by Red Sky Foundation remain vital to our service users, the region's district hospitals, schools and our local communities. However, obtaining funding for the charity's work continues to be challenging. The charity's main funding sources are from fundraising events. The charity or any person acting on behalf of the charity have not been subject to an undertaking to be bound by any voluntary scheme for regulating fund-raising, or any voluntary standard of fund-raising, in respect of activities on behalf of the charity, The austerity measures of the previous years have led to reductions in funding to local authorities and other funding streams. As a result, grant funding for services has reduced and competition for grant funding is considerable. Within this environment and the charity's first year of existence Red Sky Foundation has successfully navigated the fine line between protecting the interests of service users, by continuing to offer vital services within our communities, whilst protecting the charity's financial integrity by ensuring that any service offered is financially viable. The consolidation of services the charity provides within the constitution leaves it with a more focussed range of services that are financially and operationally feasible. Against this background, we are pleased that we have been able to attract funding for core services and we have received generous donations to build our funding streams to expand our public defibrillator service and strengthen our reserves. Together with the charity's mIssIon and aims to stay sustainable following the pandemic with previous restrictions in place following Covid 19 this has led to a total rise in income in our third year with full charitable status from £419,133 to to £628,328 in the current financial year. An increase in expenses from £292,002 in 2022 to £445,402 for current year . This resulted in a net income of£ 182,926 (2022: net income of£ 127, 131. Trustees and our CEO continue to review and regularly monitor progress against the strategic, operational and financial plans through Trustee meetings and regular management meetings. Page 28 ## **RED SKY FOUNDATION** ## **Report of the Trustees for the Year Ended 31 March 2023** ## **FUTURE PLANS** Our Trustees are committed in continuing to invest time in strategic development. We will continue to focus on generating unrestricted income to allow the charity to remain agile in responding to the needs of those we serve in an even greater climate of uncertainty. Looking ahead, we will continue to work with current and potential new partners in developing agile and innovative solutions to solve complex problems arising in cardiac health. We will continue to explore new markets and develop new services ensuring that those who use our services have excellent experiences of our work. The Charity will focus on the following areas: - Strengthen organisational infrastructure and systems - Maintain and broaden existing relationships with local authorities and funding - providers. - Development of new commercial and social partnerships, responses and - approaches - Develop and expand the reach of our specialist services - Improve the communication and marketing of our offer to all stakeholders - Explore more sustainable income streams and fundraising opportunities. Page 29 ## **RED SKY FOUNDATION** ## **Report of the Trustees for the Year Ended 31 March 2023** ## **STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document** The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. ## **Recruitment and appointment of new trustees** Trustees/directors are appointed from people who have a specific interests in the operation of the Charity and its activities and are elected by the existing members. ## **Organisational structure** The Charity is run under the management of the Chief Executive Officer on a day­ to-day operational basis. The trustees oversee the strategic developments. ## **Induction and training of new trustees** As an introduction, any future new trustees are to be provided with details of the services provided, copies of the minutes of recent meetings, the latest accounts and a copy of the publication "Responsibilities of Charity Trustees" issued by the Charity Commission. ## **Pay Policy for Senior Staff** The board give their time freely and no trustees received remuneration in the year, they have considered who the Key Management Personnel (KMP) of the charitable company are, as noted in the Reference and Administration section. Together with the board, the KMP is in charge of directing and controlling, running and operating the activities of the charitable company on a day-to-day basis. The pay of the KMP is reviewed annually. The trustees benchmark against pay levels of other charities and similar organisations within the sector and the region. Pay levels are set using information together with budget and forecast information. Page 30 ## **RED SKY FOUNDATION** ## **Report of the Trustees for the Year Ended 31 March 2023** ## **REFERENCE AND ADMINISTRATIVE DETAILS** ## **Registered Charity number** 1188683 ## **Registered office** Red Sky Foundation North Sands Business Centre Liberty Way Sunderland SR60QA ## **Trustees** Glenn Martin Treasurer Jodine Milne-Reader Chinny Patnaik Ben Robinson Andrew Bradley Emma Petrucci David Bartell Chair Christopher March Resigned 10.08.21 ## **Independent Examiner** K Dawson A very Martin Accountants & Business Advisors Salvus House, Aykley Heads, Durham, DHl 5TS Page 31 ## **RED SKY FOUNDATION** ## **Report of the Trustees for the Year Ended 31 March 2023** ## **REFERENCE AND ADMINISTRATIVE DETAILS Bankers** Royal Bank of Scotland 4[th ] Floor 1 Hardman Boulevard Manchester M33AQ ## **Chief Executive Officer** Sergio Petrucci MBE This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. Approved by order of the board of trustees on 30.01. 202[4 ] and signed on its behalf by: & Chair Page 32