**Charity registration number 1199932 (England and Wales)**
**THE RAINBOW FOUNDATION, WREXHAM ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025**
## **THE RAINBOW FOUNDATION, WREXHAM**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** Ms Joanne Kember Ms Rona Williams Ms Toni Slater Mr John McCusker Mr Geoffrey Mason Mr Paul Whittaker Ms Caroline Tudor-James Ms Elizabeth Carnie **Chief Executive Officer** Caroline Tudor-James **Charity number (England and Wales)** 1199932 **Principal address** Whitchurch Road Penley Wrexham LL13 0GB **Auditor** UHY Hacker Young 4th Floor Merchants House Crook Street Chester CH1 2BE **Bankers** The Co-operative Bank plc 1 Balloon Street Manchester M4 4BE Santander UK plc 2 Triton Square Regent's Place London NW1 3AN **Solicitors** Slaughter and May One Bunhill Row London EC1Y 8YY
## **THE RAINBOW FOUNDATION, WREXHAM**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 8|
|Independent auditor's report|9 - 11|
|Statement of financial activities|12|
|Balance sheet|13|
|Statement of cash flows|14|
|Notes to the financial statements|15 - 28|
## **THE RAINBOW FOUNDATION, WREXHAM**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 31 MARCH 2025**_
The Trustees present their report for the period 1 November 2023 to 31 March 2025 with financial statements for the year ended 31 March 2025 (first 12 months of trading) as the newly formed Charitable Incorporated Organisation
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 governing document, the Charities Act 2011, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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)".
## **Objectives and activities**
Our focus is on benefiting the inhabitants of North East Wales and our Shropshire and Cheshire borders by the services offered by the Rainbow Foundation. In shaping our objectives for the year and planning our activities, the trustees have paid due regard to the Charity Commission's guidance on public benefit, including the 'public benefit: running a charity (P82)'.
Charitable Objects as set out within our Constitution;
TO PRESERVE AND PROTECT THE HEALTH OF THE INHABITANTS OF WREXHAM MAELOR, NORTH EAST WALES AND ITS CHESHIRE AND SHROPSHIRE BORDERS IN PARTICULAR BUT NOT EXCLUSIVELY BY PROVIDING ADVICE, SUPPORT AND CARE SERVICES SO AS TO PROMOTE INDEPENDENT LIVING AND SELF-CARE, IMPROVE HEALTH AND REDUCE LONELINESS AND ISOLATION.
## **Charitable activities:**
The Rainbow Foundation is recognised as an Ageing Well Centre of Excellence, dedicated to improving physical health, mental wellbeing, and overall quality of life within our communities. Our integrated model (see Figure 1) delivers a range of interventions and services designed to:
- Promote independence, participation, and self-care
- Address the key determinants of active ageing
- Improve health and wellbeing outcomes
- Reduce frailty, loneliness, and social isolation
- Provide care and support closer to home
## **Figure 1: Rainbow’s Model as an Ageing Well Centre of Excellence**
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## **THE RAINBOW FOUNDATION, WREXHAM**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
## **Ensuring our work reflects our aims:**
The Board of Trustees meet quarterly to oversee the work of the charity and to consider the recommendations made at various committees that meet outside of the quarterly meetings. These committees are responsible for Safeguarding, Health & Safety, Legal Issues, Human Relations, and Finance and Resources. They are comprised of trustees and employees. Monthly monitoring records are kept of the usage and users of all our services. Questionnaires, impact assessments and evaluations are used to gauge the quality of the services offered and the outcomes of our work are reported to be beneficial to the clients we serve. Any adverse comments are taken seriously and addressed.
This is the first full trading period and associated annual report for the Rainbow Foundation as a Charitable Incorporated Organisation (CIO) since it began trading on 1 April 2024, following its transition and merger with the previous charity. This change reflects our commitment to strengthening governance and ensuring long-term sustainability. The organisation continues to build on the achievements of its predecessor, which delivered significant growth and investment, and this trend has been maintained throughout this reporting period. For the year ended 31 March 2025, the Rainbow Foundation’s income reached £1,989,963 (including funding for capital projects) and represents our continued ability to deliver our revenue services.
During the previous accounting period (under charity no 1100479), we were delighted to secure £1.2 million in central government funding through the Shared Prosperity Fund, some of which has transferred to this COI, enabling capital improvements at our sites in Marchwiel and Penley to be completed during this financial year. These works include reinstating the community garden at Marchwiel and installing a Changing Places facility to better serve clients with higher care needs in Penley.
This years income has allowed us to maintain our core service offer while delivering innovative programmes such as ‘Active Futures’ (strength and falls prevention), ‘Fit Futures’ (graduate programme), and future care planning support—all promoting active ageing, dignity, and choice. We have also revisited feasibility studies and system benefit analyses for our two major pipeline projects, ‘In My Place’ and the ‘Penley Pathway Project,’ evidencing their potential to alleviate NHS system pressures and bring care closer to home.
## _Strategies for achieving aims and objectives_
Our primary purpose is to serve the community in line with our Vision and Mission and Values.
**Figure 2: Our Vision, Mission and Values**
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## **THE RAINBOW FOUNDATION, WREXHAM**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
The charity aims and objectives are constant, but the ways we meet them changes to take account of current issues affecting our service users and the wider community. We are conscious of the careful planning required to ensure that both these objectives are maintained.
## **Context: ageing profile and health challenges in North East Wales**
We have an ageing community profile. North East Wales has one of the fastest ageing populations in Wales, with over 21% of residents aged 65 and above and numbers projected to rise significantly over the next decade. The proportion of people aged 75+ is increasing sharply, driving demand for health and social care.
Dementia prevalence mirrors national patterns, with 1 in 14 people over 65 living with dementia, and rates escalating with age—from 0.9% at 60–64 to over 40% by age 95+. Frailty is widespread: Welsh studies show that more than 80% of older adults conveyed to hospital by ambulance present with some level of frailty, often overlapping with dementia and creating complex care needs.
Many older adults will live with poor health for up to 20 years before entering residential care, placing sustained pressure on families and services.
Social isolation and transport barriers compound these challenges. Rural communities face limited public transport, with bus services reduced by 45% since 2018, leaving many older people cut off from healthcare and social opportunities. Meanwhile, cost-of-living pressures remain acute: rising energy bills, food prices, and housing costs force many older people to cut back on heating and nutrition, directly impacting health and wellbeing.
## **Achievements and performance**
## _Significant activities and achievements against objectives_
Rainbows holistic model is designed to reverse negative trends and health challenges across North East Wales. Through our Day Opportunities, dementia-friendly programmes, and frailty support, we provide safe, social environments that improve wellbeing and delay decline. Our community transport partnerships and outreach initiatives reconnect older people with essential services and social networks. Programmes such as Active Futures tackle frailty through movement and strength-building, while social prescribing and community engagement initiatives reduce isolation and improve mental wellbeing. By integrating physical activity, cognitive stimulation, and social connection, we are enabling older people to live longer, healthier lives and reducing demand on acute and residential care.
Significant achievements during this period include:
- Reached and supported over 5,537 individuals across all our services
- Delivered over 455 events and activities across six wellbeing hubs
- Supported 310 older adults through Active Futures. Launched Fit Futures graduate programme with 85% retention rates, which is now open to the wider community.
- Extended our Social Prescribing service, delivering over 1,000 appointments and issuing 500 social prescriptions.
- Fully utilised the remainder of the £1.2m Shared Prosperity Fund award from the previous year for capital works and service expansion. Renovated Piercy Hall, Marchweil and the Rainbow Centre, Penley into active ageing and dementia-friendly hubs as part of our wider Ageing Well Centre of Excellence for Wales.
- Delivered Penley Polish Heritage Project engaging 101 volunteers and attracting international visitors, with new funding secured from the Heritage Lottery Fund to launch a heritage walking tour and digital assets.
- Built on our participation in Wrexham 10k with clients and staff participating to build momentum for active ageing, encouraging older adults to move more and age better. This campaign aligns with our WHO AgeFriendly principles and supports our mission to challenge ageism and promote physical activity
- Undertook a comprehensive review of our assets and rebranded the organisation to reflect on our evolution into a Centre of Excellence for Ageing Well. This included the launch of a new logo and refreshed visual identity aligned with our model, ensuring we remain fit for the future and resonate with stakeholders.
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## **THE RAINBOW FOUNDATION, WREXHAM**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
## **How Our Services Are Delivered**
Operational responsibility for delivering our services is delegated to the Chief Executive Officer and the wider management team, who ensure that resources are effectively managed and aligned to our strategic priorities. We have a professional staff team working across a range of service areas to ensure we have the right skills and experience to deliver against each of our core priorities.
Volunteering is an essential part of our organisation, enabling us to extend our reach and impact across the communities we support. Volunteers contribute through a wide range of activities, including peer support groups, transport, and meal delivery, and more recently through our Polish Heritage Project. Without their commitment, many of these services would be significantly curtailed.
We are proud to maintain the Investors in Volunteers Quality Mark, which demonstrates our commitment to best practice in volunteer management and ensures that volunteers are supported, valued, and equipped to make a meaningful difference.
## **Social impact**
We embed social value measurement across all services, which is reported upon in depth within our Impact Report for this accounting period.
Our impact is reflected in measurable improvements to clients’ physical and mental health, increased self-care, and stronger community connections, all aligned with the Six Ways to Wellbeing.
The impact of volunteering is significant: last year, volunteers contributed thousands of hours, helping us deliver vital services that improve wellbeing, reduce isolation, and strengthen community resilience.
Beyond individual outcomes, our work alleviates pressure on NHS systems and drives preventative care, delivering both social and economic benefits at scale.
## **Significant factors**
We have continued to develop services in line with our Strategic Approach and work remains ongoing to:
-
-
- Develop our Community Transport Service
- Grow our Domiciliary Care Service, enabling Wrexham Council commissioning costs to lower as we benefit from economies of scale
- Expand Social Prescribing services to act as Community Builders, extending our reach
- Continue to develop the Rainbow Foundation as a Centre of Excellence for Ageing Well, supporting the needs of our ageing population—particularly those living with dementia, frailty, and loneliness
- Investigate service development to address deconditioning after hospital stays (step-down rehabilitative care) and provide end-of-life support through our two projects under development: Penley Pathway Project and In My Place
-
- Encourage our communities to:
- become more active – building resilience against poor health and frailty
- become dementia and age friendly
- stay connected
- challenge ageism and embrace positive ageing
- plan for future care and end of life
- Embed a culture of learning and generous leadership, sharing best practice and supporting other charities through RISE Consultancy and sector-wide collaboration
- Strengthen external partnerships and advocacy, ensuring older people’s voices are heard at local, regional, and national levels
- Invest in quality and innovation, including gaining relevant quality marks, and embedding Social Return on Investment across all services
- Launch our new website in line with our refreshed branding
- Lead the Active Ageing agenda, developing Rainbow Foundation Active Ageing Awards and promoting WHO principles
- Implement workforce ISO standards and develop an environmental sustainability plan to achieve net zero by 2030
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## **THE RAINBOW FOUNDATION, WREXHAM**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
## **Financial review**
While the primary purpose of the Rainbow Foundation is to offer a service to the community as described in the objectives, it can only continue to offer these if it has sufficient funds for its immediate requirements but also has developed detailed structured budgets for the future. To date both of these criteria are being met.
Whilst our overall income continues to increase from the previous year, we also saw a continued rise in costs associated with growing staff numbers and the rising cost of utilities, fuel and food. The free reserves and the budgets for the coming year indicate continued viability.
The following actions will be taken to ensure our income remains steady and services financially viable for the coming year, we will:
- Strengthen financial and risk oversight through robust management and review at every trustee meeting.
- Grow participation in our Day Opportunities Service by continuing to attract and retain clients.
- Scale up our Domiciliary Care offer while reducing senior management costs to make the service more competitive for commissioners. We will work closely with Wrexham County Borough Council to secure appropriate commissioning and target support for those most in need.
- Secure investment funding to sustain and expand our Active Futures programme and launch the Polish Heritage walking tour.
- Advance plans for the Penley Pathway Project, developing our step-down care model to meet local health system needs.
- Continue to attract wider grant and contract funding aligned with our Vision and Strategic Approach, ensuring resources are focused on delivering maximum impact.
## _Going concern_
After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
## _Reserves policy_
It is the charity’s policy to maintain unrestricted funds, not designated for specific purposes, at a level equivalent to three to six months of expenditure. The trustees believe this level of reserves provides financial stability and ensures that, in the event of a significant reduction in income, the charity can continue its core activities while exploring options to secure additional funding.
For this reporting period, reserves have been maintained at just over three months of expenditure, in line with policy, ensuring continuity and resilience throughout the year.
The charity's free reserves (unrestricted reserves excluding fixed assets) at 31 March 2025 were £306,430.
## _Major risks_
Risks include funding volatility and workforce recruitment; mitigated through diversification and robust governance.
Any risks to which the charity is exposed, as identified by the senior management team and trustees, are reviewed and systems established to mitigate those risks. When determining the level of risk that the charity faces the team consider a number of risk categories, in particular, governance, operational, financial, external and compliance with law and regulations. The trustees accept that there are risks that cannot be avoided if activities are to continue, they take action to mitigate such risks by, for example, implementing internal financial control systems, ensuring adequate insurance cover is in place, employing professionals to advise on employment law, human resources and health and safety, and ensuring disaster recovery plans are in place.
## **Plans for future periods**
In the coming year, we will continue to focus on maintaining existing services and developing new ones in line with our strategic plan, while ensuring compliance with government guidelines and safeguarding the wellbeing of our service users, staff, and volunteers.
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## **THE RAINBOW FOUNDATION, WREXHAM**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
We will progress the following priorities:
- Extend our Community Transport Service to improve connectivity for rural and isolated communities.
- Grow our regulated care services, including the Domiciliary Care Service and the possible commissioning of Penley Pathway Step-Down project.
- Expand unregulated care services, including our Day Opportunities programme and the launch of In My Place.
- Develop our services to build resilience across the communities we serve.
- Position the Rainbow Centre as a Centre of Excellence for Active Ageing, supporting the needs of our ageing population—particularly those living with dementia, frailty, and loneliness.
- Invest in our workforce and volunteers, increasing training opportunities such as Mental Health First Aid and ILM Level 5 Leadership and Management qualifications.
- Embed impact measurement across the organisation, including implementing Social Return on Investment and supporting staff to become accredited Social Value Practitioners.
- Promote a culture of learning and generous leadership, sharing best practice through RISE Consultancy and sector-wide collaboration.
- Advance quality and innovation, including pursuing Quality Mark accreditations, and implementing ISO standards for workforce and environmental sustainability.
## **Structure, governance and management**
The charity is a Charitable Incorporate Organisation (COI) registered with the Charity Commission and Care Inspectorate Wales. Its governing document a Constitution dated August 2022.
The trustees who served during the year and up to the date of signature of the financial statements were: Ms Joanne Kember Ms Rona Williams Ms Toni Slater Mr John McCusker Mr Geoffrey Mason Mr Paul Whittaker Ms Caroline Tudor-James Ms Elizabeth Carnie
## _Recruitment and appointment of trustees_
Under the requirements of our constitution, members of the Board of Trustees are elected to serve for a period of three years, after which they must retire and may be re-elected at the next full trustee meeting held each autumn. The Chair and Vice Chair are elected by the Board of Trustees and hold office for 12 months. All Trustees give their time voluntarily and receive no benefits from the charity, and no expenses are reclaimed.
When a vacancy arises for a replacement or additional trustee, it is publicly advertised. Individuals expressing interest are invited to meet with the Chair and Vice Chair to discuss the role, ask questions, and tour the charity with the Chief Executive Officer. The Board considers skills audits and strategic needs to ensure new trustees bring relevant expertise and local knowledge. Candidates must be nominated by a proposer and seconder who are current trustees.
The charity will continue, prior to the appointment of a new trustee, to examine the strengths and weaknesses of the organisation to ensure that any new appointee will be able to offer the relevant expertise. As such, consideration is given to people with a specific skill set that would be beneficial based on our strategic plan; and informed by trustees skills audits, as well as to people with local knowledge as well as existing users of the centre; these considerations are set out from the outset and form part of the open advertisements for trustees.
They must then be nominated by a proposer and a seconder who are current trustees. If not reappointed at the Autumn Trustee Meeting the person will vacate office at the conclusion of the meeting.
None of the trustees have any beneficial interest in the CIO.
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## **THE RAINBOW FOUNDATION, WREXHAM**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
## _Organisational structure_
The Rainbow Foundation has a board of trustees of between a minimum of 4 and a maximum of 8 trustees, plus one ex officio trustee (the Chief Executive Officer), who meet quarterly.
At Board meetings, reports are presented by the Chair of the various committees as well as the Operational Director reporting against the Operational Plan and the Chief Executive Officer reporting against the Strategic Plan. They highlight significant activity since the last meeting and any problems that have arisen, safeguarding is core agenda item at every meeting. Any areas of significant policy change that are required are then discussed and action agreed.
Quorum for decision making: a quorum is four charity trustees, or the number nearest to one-third of the total number of charity trustees (whichever is greater), or a larger number if trustees decide. Trustees with a conflict of interest are not counted in the quorum for that decision.
Operational responsibility for delivering our services is delegated to the Chief Executive and the wider management team, who ensure that resources are effectively managed and aligned to our strategic priorities.
## _Induction and training of trustees_
All trustees to the Rainbow Foundation received an induction pack clearly setting out their roles and responsibilities. The induction pack includes:
- A copy of the trustee handbook, detailing roles and responsibilities of trustees
- Latest Annual Report and Accounts
- A copy of the Constitution
- Declaration of interests and ability to act
- Trustee declaration
- An induction from our Chief Executive Officer, including a tour of the Rainbow Foundation and introduction to our staff team and services
- Meeting with the Chair
- Training on safeguarding (compulsory)
- Access to wider training and development opportunities
- Copies of relevant reporting and monitoring documents
## _Remuneration policy_
All staff, including the Chief Executive Officer, are paid in line with sector benchmarks for organisations of similar size and turnover. Pay and conditions are determined by a Personnel & Staffing Sub-Committee of the Board, comprising the Chair, Vice Chair, and one other trustee. The Chief Executive does not sit on this committee and is excluded from any discussions or decisions relating to their own remuneration.
The Chief Executive serves as an ex officio trustee to provide operational insight at board level but receives no remuneration for trustee duties. Their salary relates solely to their role as Chief Executive Officer. Any potential conflicts of interest are managed in accordance with the charity’s constitution and the Charities Act 2011.
The wider organisational structures continued to expand with our growth. We are flexible in our recruitment and working practices to accommodate part time working.
We are an accredited Real Living Wage employer and as an organisation we are fully committed to a fair employment policy, non-discriminatory and sensitive to wellbeing and personal development.
## **Other matters**
Our named Trustee for Safeguarding continues to audit our safeguarding practices to ensure they are embedded across the organisation with relevant training in place for all staff, this work dovetails the work of Care Inspectorate Wales in auditing our Home Care services and evidences our approach to safeguarding is robust across the organisation.
We have also appointed trustees as our named Health and Safety lead, Legal lead and Finance Lead.
The charity's interest in the leasehold land and buildings is currently held by trustee Geoffrey Mason as nominee. The trustees are currently engaging with solicitors to arrange the transfer of legal title over to the CIO.
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## **THE RAINBOW FOUNDATION, WREXHAM**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
## **Statement of trustees' responsibilities**
The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees' report was approved by the Board of Trustees.
Mr Geoffrey Mason
## **Trustee**
9 December 2025
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## **THE RAINBOW FOUNDATION, WREXHAM**
## **INDEPENDENT AUDITOR'S REPORT**
## **TO THE TRUSTEES OF THE RAINBOW FOUNDATION, WREXHAM**
## **Opinion**
We have audited the financial statements of The Rainbow Foundation, Wrexham (the ‘charity’) for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 March 2025 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the _Auditor's responsibilities for the audit of the financial statements_ section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
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## **THE RAINBOW FOUNDATION, WREXHAM**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE RAINBOW FOUNDATION, WREXHAM**
## **Responsibilities of trustees**
As explained more fully in the statement of trustees' responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the charity and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the charity, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to inflated revenue and the charity's net income for the year.
Audit procedures performed included: review of the financial statement disclosures to underlying supporting documentation, review of any correspondence with legal advisors, and enquiries of management and those charged with governance around actual and potential litigation and claims, enquiries with charity’s staff to identify any instances with non-compliance with laws and regulations, enquiries of management and review of monthly management accounts and reports in so far as they related to the financial statements, testing of journals and evaluating whether there was evidence of bias by the Trustees that represented a risk of material misstatement due to fraud, undertaking detailed substantive testing of material items and a sample of other items, consideration of the reasonableness of the figures and analytical review, including comparison with previous years and expected trends, and review of the compliance with and effectiveness of internal controls.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## **Other matters**
Your attention is drawn to the fact that the charity has prepared financial statements 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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.
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## **THE RAINBOW FOUNDATION, WREXHAM**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE RAINBOW FOUNDATION, WREXHAM**
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
UHY Hacker Young, Statutory Auditor 4th Floor Merchants House Crook Street Chester CH1 2BE 9 December 2025
UHY Hacker Young is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
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## **THE RAINBOW FOUNDATION, WREXHAM**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 MARCH 2025**_
|||**Unrestricted**|**Restricted**|**Total**|**Unrestricted**|**Restricted**|**Total**|
|---|---|---|---|---|---|---|---|
|||**funds**|**funds**|**12 months**|**funds**|**funds **|**5 months to**|
|||||**to 31 March**|||**31 March (as**|
||||||||**restated)**|
|||**2025**|**2025**|**2025**|**2024**|**2024**|**2024**|
||**Notes**|**£**|**£**|**£**|**£**|**£**|**£**|
|**Income and endowments from:**||||||||
|Grants, donations and||||||||
|legacies|**3**|46,955|1,108,413|1,155,368|18,332|134,134|152,466|
|Charitable activities|**4**|829,618|-|829,618|424,477|2,392|426,869|
|Other trading activities|**5**|1,191|-|1,191|448|-|448|
|Investments|**6**|3,636|-|3,636|688|-|688|
|Other income|**7**|150|-|150|-|-|-|
|**Total income**||881,550|1,108,413|1,989,963|443,945|136,526|580,471|
|**Expenditure on:**||||||||
|Raising funds|**8**|446|-|446|631|-|631|
|Charitable activities|**9**|786,614|692,937|1,479,551|389,021|138,659|527,680|
|**Total expenditure**||787,060|692,937|1,479,997|389,652|138,659|528,311|
|**Net income and movement in**||||||||
|**funds**||94,490|415,476|509,966|54,293|(2,133)
52,160||
|**Reconciliation of funds:**||||||||
|Fund balances at 1 April|2024|230,230|427,825|658,055|175,937|429,958|605,895|
|**Fund balances at 31 March**||||||||
|**2025**||324,720|843,301|1,168,021|230,230|427,825|658,055|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
- 12 -
## **THE RAINBOW FOUNDATION, WREXHAM**
## **BALANCE SHEET**
## _**AS AT 31 MARCH 2025**_
|**Notes**
**Fixed assets**
Tangible assets
**15**
**Current assets**
Debtors
**16**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**17**
**Net current assets**
**Total assets less current liabilities**
**The funds of the charity**
Restricted funds
**19**
Unrestricted funds
**20**|**31 March 2025**
**£**
**£**
842,777
85,224
516,447
601,671
(276,427)
325,244
1,168,021
843,301
324,720
1,168,021|**31 March 2024**
**(as restated)**
**£**
**£**
449,108
32,558
276,698
309,256
(100,309)
208,947
658,055
427,825
230,230
658,055|**31 March 2024**
**(as restated)**
**£**
**£**
449,108
32,558
276,698
309,256
(100,309)
208,947
658,055
427,825
230,230
658,055|
|---|---|---|---|
||||658,055|
||||427,825
230,230|
||||658,055|
The financial statements were approved by the trustees on 9 December 2025
Mr Geoffrey Mason **Trustee**
- 13 -
## **THE RAINBOW FOUNDATION, WREXHAM**
## **STATEMENT OF CASH FLOWS**
## _**FOR THE YEAR ENDED 31 MARCH 2025**_
|**Twelve months to**
**31 March 2025**
**Notes**
**£**
**£**
**Cash flows from operating activities**
Cash generated from/(absorbed by)
operations
**26**
647,822
**Investing activities**
Purchase of tangible fixed assets
(411,859)
Proceeds from disposal of tangible
fixed assets
150
Investment income received
3,636
**Net cash (used in)/generated from investing**
**activities**
(408,073)
**Net cash generated from financing activities**
-
**Net increase/(decrease) in cash and cash**
**equivalents**
239,749
Cash and cash equivalents at beginning of year
276,698
**Cash and cash equivalents at end of year**
516,447|**Five months**
**to 31 March**
**2024**
**£**
**£**
(72,175)
-
-
688
688
-
(71,487)
348,185
276,698|
|---|---|
- 14 -
## **THE RAINBOW FOUNDATION, WREXHAM**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2025**_
## **1 Accounting policies**
## **Charity information**
The Rainbow Foundation, Wrexham is a charitable incorporated organisation (CIO).
## 1.1 **Reporting period**
These financial statements are the first accounts prepared for the new CIO. Merger accounting has been adopted and comparative figures presented for the final period of accounts of the unincorporated charity which was a five month period to 31 March 2024. As a result of this, the figures presented in these financial statements are not comparable due to the different length of accounting period.
## **1.2 Accounting convention**
The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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)". The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
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.
## **1.3 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.
## **1.4 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.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
## **1.5 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.
- 15 -
## **THE RAINBOW FOUNDATION, WREXHAM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
## **1 Accounting policies**
**(Continued)**
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.
Grant income is recognised to the extent that any performance related conditions have been satisfied, receipt is probable and the amount can be estimated reliably.
Income from contracted services is recognised by reference to the stage of completion.
## **1.6 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
## **1.7 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:
|Leasehold land and buildings|Straight line over the lease term|
|---|---|
|Leasehold improvements|20 years straight line|
|Fixtures and fittings|10 years straight line|
|Motor vehicles|7-10 years straight line|
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.
## **1.8 Impairment of fixed assets**
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
## **1.9 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. Bank overdrafts are shown within borrowings in current liabilities.
- 16 -
## **THE RAINBOW FOUNDATION, WREXHAM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
## **1 Accounting policies**
## **(Continued)**
## **1.10 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 and bank loans 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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## **1.11 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.
## **1.12 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
- 17 -
## **THE RAINBOW FOUNDATION, WREXHAM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
## **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 Income from grants, donations and legacies**
||**Unrestricted**|**Restricted**|**Total**|**Unrestricted**|**Restricted**|**Total**|
|---|---|---|---|---|---|---|
||**funds**|**funds**|**12 months**|**funds**|**funds 5 months to**||
||||**to 31 March**|||**31 March**|
||**2025**|**2025**|**2025**|**2024**|**2024**|**2024**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|Donations and gifts|23,120|-|23,120|8,609|-|8,609|
|Grants|5,335|1,108,413|1,113,748|2,015|134,134|136,149|
|Donated facilities|18,500|-|18,500|7,708|-|7,708|
||46,955|1,108,413|1,155,368|18,332|134,134|152,466|
## **Donated goods and services**
The charity has free use of the property Piercy Hall, Marchwiel where some of the charity's activities are carried out. A donation in kind of £18,500 (2024: £7,708) and corresponding rent expense has been recognised in these financial statements.
- 18 -
## **THE RAINBOW FOUNDATION, WREXHAM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
## **4 Income from charitable activities**
||**Unrestricted**|**Unrestricted**|**Restricted**|**Total**|**Unrestricted**|**Restricted**|**Total**|
|---|---|---|---|---|---|---|---|
||**funds**||**funds**|**12 months**|**funds**|**funds **|**5 months to**|
|||||**to 31 March**|||**31 March**|
||**2025**||**2025**|**2025**|**2024**|**2024**|**2024**|
|||**£**|**£**|**£**|**£**|**£**|**£**|
|**Day opportunities**||||||||
|Sale of goods|60,085||-|60,085|29,823|-|29,823|
|Services provided under||||||||
|contract|255,541||-|255,541|97,368|-|97,368|
|Charitable rental income||134|-|134|20|-|20|
|**Home care**||||||||
|Sale of goods|10,225||-|10,225|903|-|903|
|Services provided under||||||||
|contract|321,608||-|321,608|113,484|-|113,484|
|Performance related||||||||
|grants||-|-|-|-|1,892|1,892|
|**Community wellbeing**||||||||
|Sale of goods|15,661||-|15,661|3,888|-|3,888|
|Services provided under||||||||
|contract|166,234||-|166,234|177,174|-|177,174|
|Performance related||||||||
|grants||-|-|-|-|500|500|
|Charitable rental income||130|-|130|1,817|-|1,817|
||829,618||-|829,618|424,477|2,392|426,869|
|**Income from other trading activities**||||||||
||||||**Unrestricted**||**Unrestricted**|
|||||||**funds**|**funds**|
|||||||**12 months**|**5 months to**|
||||||**to 31 March**||**31 March**|
|||||||**2025**|**2024**|
|||||||**£**|**£**|
|Letting and licensing arrangements||||||1,191|448|
**5 Income from other trading activities**
- 19 -
## **THE RAINBOW FOUNDATION, WREXHAM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
## **6 Income from investments**
|||**Unrestricted**|**Unrestricted**|
|---|---|---|---|
|||**funds**|**funds**|
|||**12 months**|**5 months to**|
|||**to 31 March**|**31 March**|
|||**2025**|**2024**|
|||**£**|**£**|
||Interest receivable|3,636|688|
|**7**|**Other income**|||
|||**Unrestricted**|**Unrestricted**|
|||**funds**|**funds**|
|||**12 months**|**5 months to**|
|||**to 31 March**|**31 March**|
|||**2025**|**2024**|
|||**£**|**£**|
||Net gain on disposal of tangible fixed assets|150|-|
|**8**|**Expenditure on raising funds**|||
|||**Unrestricted**|**Unrestricted**|
|||**funds**|**funds**|
|||**12 months**|**5 months to**|
|||**to 31 March**|**31 March**|
|||**2025**|**2024**|
|||**£**|**£**|
||**Fundraising and publicity**|||
||Seeking donations, grants and legacies|446|631|
- 20 -
## **THE RAINBOW FOUNDATION, WREXHAM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
## **9 Expenditure on charitable activities**
||**Day**|**Home care **|**Community**|
**Total**|**Day**|**Home care **|**Community**|**Total**|
|---|---|---|---|---|---|---|---|---|
||**opportunities**||**wellbeing**||**opportunities**||**wellbeing**||
||**2025**|**2025**|**2025**|**12 months**|**2024**|**2024**|**2024 5 months to**||
|||||**to 31 March**||||**31 March**|
|||||**2025**||||**2024**|
||**£**|**£**|**£**|**£**|**£**|**£**|**£**|**£**|
|**Direct costs**|||||||||
|Staff costs|228,422|380,272|336,155|944,849|93,920|119,720|144,635|358,275|
|Depreciation and impairment|17,668|-|-|17,668|3,759|-|-|3,759|
|Charitable Expenditure|69,116|55,640|170,496|295,252|25,608|12,325|27,341|65,274|
||315,206|435,912|506,651|1,257,769|123,287|132,045|171,976|427,308|
|**Share of support and governance costs (see note 10)**|||||||||
|Support|59,824|79,680|77,013|216,517|27,262|29,838|39,902|97,002|
|Governance|1,342|2,120|1,803|5,265|884|1,126|1,360|3,370|
||376,372|517,712|585,467|1,479,551|151,433|163,009|213,238|527,680|
|**Analysis by fund**|||||||||
|Unrestricted funds|195,957|254,451|336,206|786,614|116,501|119,308|153,212|389,021|
|Restricted funds|180,415|263,261|249,261|692,937|34,932|43,701|60,026|138,659|
||376,372|517,712|585,467|1,479,551|151,433|163,009|213,238|527,680|
- 21 -
## **THE RAINBOW FOUNDATION, WREXHAM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
## **10 Support costs allocated to activities**
|||**12 months to**||**5 months to**|
|---|---|---|---|---|
|||**31 March 2025**|**31**|**March 2024**|
|||**£**||**£**|
||Staff costs|150,816||63,619|
||Depreciation|522||158|
||Premises costs|32,728||15,828|
||Office costs|23,592||10,516|
||Training costs|536||4,976|
||Other|8,188||1,905|
||Governance costs|5,400||3,370|
|||221,782||100,372|
||**Analysed between:**||||
||Day opportunities|61,166||28,146|
||Home care|81,800||30,964|
||Community wellbeing|78,816||41,262|
|||221,782||100,372|
|**11**|**Net movement in funds**|**2025**||**2024**|
|||**£**||**£**|
||The net movement in funds is stated after charging/(crediting):||||
||Fees payable for the audit or independent examination of the charity's financial||||
||statements|5,400||3,420|
||Depreciation of owned tangible fixed assets|18,190||3,917|
||Profit on disposal of tangible fixed assets|(150)||-|
## **12 Trustees**
## **Remuneration**
None of the trustees received any remuneration or benefits from the charity for their role as a trustee.
Under paragraph 10 (2) of the Charity's constitution, the Chief Executive Officer (CEO) is an ex-officio trustee of the charity. The CEO receives a salary due to the executory nature of the role in managing the day to day operations of the charity. In the year ended 31 March 2025 the CEO received remuneration in the £60,001 to £70,000 which included employer pension contributions of £1,321.
## **Expenses**
None of the trustees received any reimbursement of expenses from the charity during the year.
- 22 -
## **THE RAINBOW FOUNDATION, WREXHAM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
## **13 Employees**
The average monthly number of employees during the year was:
|The average monthly number of employees during the year was:|||
|---|---|---|
||**12 months to**|**5 months to**|
||**31 March 2025**|**31 March**|
|||**2024**|
||**Number**|**Number**|
||53|54|
|**Employment costs**|**12 months to**|**5 months to**|
||**31 March 2025**|**31 March**|
|||**2024**|
||**£**|**£**|
|Wages and salaries|1,012,037|391,017|
|Social security costs|68,254|26,431|
|Other pension costs|15,374|4,446|
||1,095,665|421,894|
|The number of employees whose annual remuneration was more than £60,000|||
|is as follows:|||
||**12 months to**|**5 months to**|
||**31 March 2025**|**31 March**|
|||**2024**|
||**Number**|**Number**|
||1|-|
|**Remuneration of key management personnel**|||
|The remuneration of key management personnel was as follows:|||
||**12 months to**|**5 months to**|
||**31 March 2025**|**31 March**|
|||**2024**|
||**£**|**£**|
|Aggregate compensation|75,816|27,261|
Under FRS 102, 'compensation' includes gross salary, employer’s National Insurance contributions and employer’s pension contributions.
## **14 Taxation**
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
- 23 -
## **THE RAINBOW FOUNDATION, WREXHAM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2025**_
## **15 Tangible fixed assets**
|**Leasehold**
**land and**
**buildings**
**Leasehold**
**improvements**
**Fixtures and**
**fittings**
**£**
**£**
**£**
**Cost**
At 1 April 2024
501,610
-
3,786
Additions
-
410,426
1,433
At 31 March 2025
501,610
410,426
5,219
**Depreciation and impairment**
At 1 April 2024
73,785
-
536
Depreciation charged in the year
5,118
8,647
522
At 31 March 2025
78,903
8,647
1,058
**Carrying amount**
At 31 March 2025
422,707
401,779
4,161
At 31 March 2024
427,825
-
3,249|**Motor**
**vehicles**
**£**
33,250
-
33,250
15,217
3,903
19,120
14,130
18,034|**Total**
**£**
538,646
411,859|
|---|---|---|
|||950,505|
|||89,538
18,190|
|||107,728|
|||842,777|
|||449,108|
The charity's main operating premises in Penley is held under a 99 year lease agreement which ends in January 2108. The annual rent payable is £1.
## **16 Debtors**
|**Debtors**|||
|---|---|---|
||**31 March 202531**|**March 2024**|
|**Amounts falling due within one year:**|**£**|**£**|
|Trade debtors|82,589|29,742|
|Prepayments and accrued income|2,635|2,816|
||85,224|32,558|
|**Creditors: amounts falling due within one year**|||
||**31 March 202531**|**March 2024**|
||**£**|**£**|
|Other taxation and social security|17,468|13,675|
|Trade creditors|221,594|18,688|
|Other creditors|54|-|
|Accruals and deferred income|37,311|67,946|
||276,427|100,309|
## **17 Creditors: amounts falling due within one year**
- 24 -
## **THE RAINBOW FOUNDATION, WREXHAM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2025**_
|**18**|**Retirement benefit schemes**|||
|---|---|---|---|
|||**2025**|**2024**|
||**Defined contribution schemes**|**£**|**£**|
||Charge to profit or loss in respect of defined contribution schemes|15,374|4,446|
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.
## **19 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**|
|---|---|---|---|---|
||**2024**|**resources**|**expended**|**2025**|
||**£**|**£**|**£**|**£**|
|Wales Council for Voluntary Action|-|16,228|(16,228)|-|
|Utley Trust- Dementia Choir|-|1,125|(1,125)|-|
|Shared Prosperity|-|1,083,039|(662,445)|420,594|
|Step Challenge|-|7,985|(7,985)|-|
|Art Class|-|36|(36)|-|
|Fixed asset fund - Penley Rainbow Centre|427,825|-|(5,118)|422,707|
||427,825|1,108,413|(692,937)|843,301|
|**Previous Period:**|**At 1**|**Incoming**|**Resources**|**At 31 March**|
||**November**|**resources**|**expended**|**2024**|
||**2023**||||
||**£**|**£**|**£**|**£**|
|Wales Council for Voluntary Action|-|9,016|(9,016)|-|
|Utley Trust- Dementia Choir|-|500|(500)|-|
|Shared Prosperity|-|125,118|(125,118)|-|
|Three Counties North Wales|-|1,892|(1,892)|-|
|Fixed asset fund - Penley Rainbow Centre|429,958|-|(2,133)|427,825|
||429,958|136,526|(138,659)|427,825|
- 25 -
## **THE RAINBOW FOUNDATION, WREXHAM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
## **20 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**|
|---|---|---|---|---|
||**2024**|**resources**|**expended**|**2025**|
||**£**|**£**|**£**|**£**|
|General funds|230,230|881,550|(787,060)|324,720|
|**Previous Period:**|**At 1**|**Incoming**|**Resources**|**At 31 March**|
||**November**|**resources**|**expended**|**2024**|
||**2023**||||
||**£**|**£**|**£**|**£**|
|General funds|175,937|443,945|(389,652)|230,230|
|**Analysis of net assets between funds**|||||
|||**Unrestricted**|**Restricted**|**Total**|
|||**funds**|**funds**||
|||**£**|**£**|**£**|
|**At 31 March 2025:**|||||
|Tangible assets||18,290|824,487|842,777|
|Current assets||572,366|29,305|601,671|
|Current liabilities||(265,936)|(10,491)|(276,427)|
|||324,720|843,301|1,168,021|
|||**Unrestricted**|**Restricted**|**Total**|
|||**funds**|**funds**||
|||**2024**|**2024**|**2024**|
|||**£**|**£**|**£**|
|**At 31 March 2024:**|||||
|Tangible assets||21,283|427,825|449,108|
|Current assets||208,947|27,703|208,947|
|Current liabilities||-|(27,703)|-|
|||230,230|427,825|658,055|
## **21 Analysis of net assets between funds**
## **22 Events after the reporting date**
The charity ceased to provide our Regulated Domiciliary Care service, which was retuned to Wrexham County Borough Council in house team, following a TUPE transfer of staff on 1st October 2025.
## **23 Related party transactions**
There were no disclosable related party transactions during the year (2024 - none).
- 26 -
**THE RAINBOW FOUNDATION, WREXHAM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
## **24 Application of merger accounting on conversion to CIO**
On 1 April 2024, the activities of the Rainbow Foundation, Wrexham - an unincorporated charity (reg no. 1100479) - were transferred to a charitable incorporated organisation (CIO) with the same name and charitable objects. In accordance with FRS 102 and the Charities SORP, the principles of merger accounting have been applied. The assets, liabilities and funds of the combining charities have been aggregated and presented as though they had always been part of the same reporting charity.
Comparative information has been presented based on the final period of accounts for the unincorporated charity. This was a five month period from 1 October 2023 to 31 March 2024. These CIO accounts report the income and expenditure for a full year to 31 March 2025 and the figures are therefore not comparable due to the different length of reporting periods.
Although the CIO was formed on 2 August 2022, there had been no activity until the transfer on 1 April 2024. The comparative information presented in the statement of financial activities is therefore wholly represented by the unincorporated charity. Likewise the net assets and funds immediately prior to the date of the transfer were all held by the unincorporated charity.
There have been no adjustments resulting from alignment of accounting policies as the accounting policies of the unincorporated charity are fully aligned with those of the CIO.
## **25 Prior year adjustment**
The previously prepared financial statements of the unincorporated predecessor charity had not recognised the leasehold building at Penley Rainbow Centre which was built at a cost of £501,610 in 2009-10 using funding predominantly obtained from The Lottery Foundation. The charity's interest in the leasehold is held in the name of the trustees.
A prior year adjustment has been made to restate the leasehold land and building asset and corresponding restricted fixed asset fund balances so as to recognise the net book value of building based on it's depreciated cost over the 99 year lease term.
A prior year adjustment has also been made to recognise a donation in kind and corresponding rent expense in respect of the charity's free use of Piercy Hall, Marchwiel.
## **Impact financial position**
A restricted fixed asset fund of £429,958 as at 1 November 2023 and £427,825 at 31 March 2024 has been recognised, this being the start and end of the comparative period, where no such fund had been recognised in previously reported financial statements. Leasehold land and buildings with a net book value of £429,958 at 1 November 2023 and £427,825 at 31 March 2024 has also been recognised where previously no such asset had been reported.
## **Impact on financial performance**
The comparative period expenditure has been restated to include a depreciation charge of £2,133. The net movement in funds of £54,293 as previously reported for the period ended 31 March 2024 has been restated to £52,160.
There is no impact on the net movement in funds previously reported as a result of recognising the donation in kind.
- 27 -
## **THE RAINBOW FOUNDATION, WREXHAM**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2025**_
|**26**
**Cash generated from/(absorbed by) operations**
Surplus for the year
**Adjustments for:**
Investment income recognised in statement of financial activities
Gain on disposal of tangible fixed assets
Depreciation and impairment of tangible fixed assets
**Movements in working capital:**
(Increase)/decrease in debtors
Increase/(decrease) in creditors
**Cash generated from/(absorbed by) operations**
**27**
**Analysis of changes in net funds**|**2025**
**2024**
**£**
**£**
509,966
52,160
(3,636)
(688)
(150)
-
18,190
3,917
(52,666)
61,488
176,118
(189,052)
647,822
(72,175)|
|---|---|
The charity had no material debt during the year.
- 28 -