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2023-03-31-accounts

Break (A company limited by guarantee)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 March 2023

Charity number 286650 Company number 01699685

Break

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 March 2023

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Contents Page No.
Charity Reference and Administrative Details 1
Report of the Board of Trustees
(Including Directors’ Report and Strategic Report) 2 - 17
Independent Auditor’s Report 18 - 21
Statement of Financial Activities
(Including Income and Expenditure Account) 22
Balance Sheet 23
Statement of Cash Flows 24
Notes to the Financial Statements 25 - 44

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CHARITY REFERENCE AND ADMINISTRATIVE DETAILS

FOR THE YEAR ENDED 31 March 2023

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Charity Registration Number: 286650 Company Registration Number: 01699685 Registered Office and Schofield House Operational Address: 1 Spar Road Norwich Norfolk NR6 6BX

Board of Trustees

Sub Committee member Mrs B Hall B.Ed (Hons) NPQH, PgD, SSStJ (Chair) Ca, No Mr F M E Shippam FCA, DChA (Treasurer) Fi Mrs J Allan (appointed 06.03.23) In Mrs N Bramford (appointed 06.03.23) Ca Mrs M Corti FCCA, MBA Ca, No, Fi, Ri Ms J Darlington MA (Cantab) (resigned 19.07.22) Fi Mr N Dobson (appointed 04.04.22) Fi, In Mr S Fowler TD, LLB Ca, No Mrs S Harvey Ri Mr T Krykant (appointed 20.04.22) In Mrs P Ledward Ca Mrs A L Ovens FCCA, DiplFR, MIoD Fi, In Mr J Sam MBCS, CITP, MIoD No, In, Ri Mr J Stanley (resigned 15.07.22) Ca Mr E Sutaria (appointed 24.04.23) Ca, Ig

Sub committee groups:- Ca = Care, Fi = Finance, In = Income Generation, Ri = Risk HR & Governance, No = Nominations

Presidents and Co-founders

Mrs J A Davison Reverend Canon L J Morley

Chief Executive Officer

Ms R Cowdry BA (Hons), MA DipSW, Diploma

Executive Team

Mr A Flack FCCA (Director of Finance) Mrs R Leslie BA (Hons) MA DIPSW (Director of Care Services) Mr D Crouch BSc (Hons) (Director of Income Generation) Mr M Hudson (Deputy Chief Executive Officer) (resigned 17.10.22)

Company Secretary

Mr A Flack

Auditor

Price Bailey LLP, Anglia House 6 Central Avenue St Andrews Business Park Thorpe St Andrew NR7 0HR

Solicitors

Butcher Andrews, 1 Old Post Office Street, Fakenham, Norfolk, NR21 9BL Clapham & Collinge, St Catherine’s House, All Saints Green, Norwich NR1 3GA

Bankers

Lloyds Bank plc, The Undercroft, Queens Street, Norwich, NR2 4SG

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REPORT OF THE BOARD OF TRUSTEES (INCLUDING DIRECTORS’ REPORT AND STRATEGIC REPORT)

FOR THE YEAR ENDED 31 March 2023

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The Trustees, who are also directors for the purposes of company law, present their report and the audited financial statements of the Charity for the year ended 31 March 2023 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019.

Trustees of the Charity

The Trustees who have served during the year and since the year end are shown on Page 1.

Objectives and Activities

The Memorandum and Articles of Association state that Break’s charitable objectives and principal activities are:-

The objectives and aims are achieved by the implementation of individual unit and departmental business plans.

The objectives have been met by providing the following services:-

Break’s policy is to work in partnership with Local Authorities, Housing Associations and other relevant agencies to provide the best possible service. We maintain strong working connections with Norfolk County Council Children’s Services and work closely with Cambridgeshire/Peterborough and Suffolk Children’s Services on a range of successful projects and commissioned placements.

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REPORT OF THE BOARD OF TRUSTEES (INCLUDING DIRECTORS’ REPORT AND STRATEGIC REPORT)

FOR THE YEAR ENDED 31 March 2023

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Public Benefit Statement

The Board have paid due regard to the Charity Commission’s guidance on public benefit.

In the terms of the Charities Act 2011, Break’s Objectives fall within two definitions of charitable activity, “the relief of those in need by reason of ill-health, disability or other disadvantage” and “the advancement of education”. On both counts Break provides benefits, irrespective of their financial circumstances, to a number of distinct groups of the public including: children and young people; families; and young people with learning and physical difficulties.

Detailed information on the services provided, and the benefits which accrue to the service users, is set out in this Report and on the Break website, www.break-charity.org

Strategic Report

A) Achievements and Performance

We support a wide range of young people across East Anglia to achieve great things. We are proud to push the boundaries of innovation. We have co-production at the heart of the services we provide for our young people, enabling them to influence both their own future and the development of our Charity.

OUR VISION

Break will strive to ensure all young people, whatever their start in life, have equal opportunities and the relationships they need to succeed.

OUR MISSION

Giving children on the edge of care, in care and leaving care the love, support and ambition they need

OUR VALUES

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REPORT OF THE BOARD OF TRUSTEES (INCLUDING DIRECTORS’ REPORT AND STRATEGIC REPORT)

FOR THE YEAR ENDED 31 March 2023

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A safe place to call home for looked after children

At Break we are proud that our children’s homes are somewhere safe that young people can call home, with adults who love, care and look out for them. We provide a home where young people can belong, begin to flourish and embrace their future with confidence and hope.

Every year we have young people move in and out of our homes but not our hearts. Although young people move on from our homes that is not where our support stops as we are with our young people through their life through our other services.

In the year, we cared for 21 (2021/22 - 20) young people within our four homes. All four of the homes are rated as ‘Good’ by Ofsted. Our average length of placement at the end of March 2023 was 1.6 years, with 2 young people living at their Break Home for 3 years or more. 6 of our current 13 young people living in our homes moved in over the last year. At 31 March 2023, 60% (2021/22 – 55%)of the young people living in our children’s homes were in full time education.

In 2020, Norfolk County Council recognised a requirement for more specialist services to meet the needs of the most complex young people in their care. We have two homes dedicated to this service. The service offers solo or dual placements and intensive support to young people in care who find it too difficult to live with other young people. During the year we have worked with a young person who has had a difficult journey with mental health and finding a placement that is right for him. Over a year later, we are really proud he considers Break his home and has really embedded himself, he loves dogs, and we listened to this and now regularly have dogs in the house that help him get through those more difficult days. We loved taking him away to Wales on his first holiday with us. The sense of adventure and exploring gave him the holiday bug, and he is keen for us to get back down this summer, when we get to make more wonderful memories!

To deliver this more intensive service, the teams access comprehensive training programmes and develop their skills and confidence to meet the needs of young people. We have 3 young people currently within this service who have all been with us for over 1 year with 1 home rated as ‘Good’ by Ofsted and the other ‘Requires improvement’.

We work closely with Norfolk Commissioning teams to ensure placements are suitable, a lot of emphasis is put into pre-planning and with careful management and joined up working from the team around the child the transition for the young people is smooth and is a big factor in the successful transition. Break has worked in collaboration with the local authority to manage and respond to high risks. The service along with all our other ones is supported by the Break Therapeutic Team where we discuss strategies and carry out reflective practice looking at what is going well and what we are finding difficult. The nature of the provision is that we do face a variety of challenging situations. This puts a lot of importance on a close and committed team which our teams do incredibly well.

Therapeutic Support

Break Therapeutic Services (BTS) has been at the heart of Break’s drive to move towards a more trauma informed way of working.

The team have increased their work within our homes. Working alongside children and young people who have experienced trauma is complex, requiring teams and professionals to remain empathetic, sensitive and focussed on the young people’s needs. For the staff team to do this, they need to understand where our young people’s struggles come from and that the behaviours we see are trauma responses. BTS practitioners spend time in our homes, providing reflective spaces to think about young people and their needs on an individual and team level. All staff receive a two-day Foundation Trauma and Attachment training course.

The team of therapists and social workers also offer support to children and young adults outside of Break’s homes who have had adverse childhood experiences. Many have experienced trauma, abuse and neglect and no longer live with their birth families. The support is provided through therapy sessions that take place in school or in our purpose built suite of therapeutic rooms, using creative techniques such as play, drama and art to enable children to explore their experiences and recognise and process their emotions. Children are supported to emotionally cope and are better able to access social and learning opportunities. BTS aims to strengthen relationships and support families, individuals and professionals to understand and process the difficulties that are being experienced. The Emotional Wellbeing Service supports care experienced young people to enjoy enhanced emotional wellbeing, improving their potential to access opportunities and successfully transition to independence. Referral routes include social workers, personal advisors from local authorities and young people accessing Break’s Staying Close Staying

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REPORT OF THE BOARD OF TRUSTEES (INCLUDING DIRECTORS’ REPORT AND STRATEGIC REPORT)

FOR THE YEAR ENDED 31 March 2023

_____________ Connected (SCSC). The Emotional Wellbeing Service is a flexible service tailored to meet the need of our young people.

Mentoring

During the year, the Break Mentoring Service supported 27 (2021/22 – 29) volunteer mentors who were matched with young people. Our mentoring programme offers positive outcomes and adds value for our young people. The young people Break support have had contact with care professionals throughout their lives. The young people report that they especially value their volunteer mentor who is choosing to be there for them. The aim is to empower young people to learn how to maintain a relationship, experience new activities and create a solid foundation to build their future self. Having someone outside their everyday network whom they can speak openly to and who support them in building their self-esteem, self-worth and confidence. Our aspiration is that all young people within Break will have access to a volunteer mentor.

As well as the core Mentoring Service we also facilitate Peer Mentoring. The focus of Peer Mentoring is for young people who have first-hand experience of living in care to share their stories and advice. Empowering those they speak with through shared knowledge, skills and being able to speak openly to someone who they can relate to.

Over the past 12 months we have seen several of our mentoring partnerships grow and adapt as they have supported the young person into independence. The mentor’s involvement in this process allows there to be a consistent figure of support for the young person.

Fostering

We provide long term therapeutic foster placements for children and young people between the ages of 3 and 18. During the year we had 13 (2021/22 – 9) young people in placements.

Our service offers predominantly intensive placements providing a family placement for young people who have experienced extreme trauma in their lives and cannot live in a “mainstream” foster home. Our team works hard to begin to heal some of the hurt through the relationships they build with the young people and through the therapeutic support offered.

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REPORT OF THE BOARD OF TRUSTEES (INCLUDING DIRECTORS’ REPORT AND STRATEGIC REPORT)

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Staying Close, Staying Connected

Staying Close, Staying Connected (SCSC) offers a framework for young people as they leave residential care. As in the prior year, through funding from CHK Foundation, we have extended this offer to those leaving Foster care. SCSC offers the young people lifelong relationships.

The Department for Education Innovation Fund has supported the Break SCSC project since April 2018. Quarterly project boards with representation from our partners (Cambridgeshire County Council, Norfolk County Council and Peterborough City Council) have overseen the SCSC strategy and project direction.

In the year our SCSC service provided 22 houses and flats containing 39 beds across the region. Each house provided much-needed stability to young people as they moved on from their children’s home. In response to the needs of the service we now lease 4 one bed flats. Staying Connected coordinators continued to support young people to identify important people in their lives, and to find ways of building opportunities to engage with these people.

Lifelong Support – the Staying Connected Service

Since 2009, Break has charitably funded a service to support the transition to adulthood, and to provide a sense of stability for young people leaving Break’s care. The service ensures the young people have support to call on in times of crisis.

Support for families – Hazeldene

Break’s residential family Assessment Centre, Hazeldene, provides a safe environment for parents who have had difficulties in caring for their children. We offer tailored packages to meet the needs of each individual family. Families are referred to Break by local authorities from across the country. The service received a Good rating from Ofsted during the year.

We promote and assess parenting skills to ensure that children are safe and protected and offer families an opportunity for intensive support to help them recognise the needs of their children. Safeguarding vulnerable children is our prime focus and the clarity of our assessments inform the referrers whether a child’s needs can be adequately met by parents or carers, or whether there is a need for intervention and alternative care arrangements that will secure the longer term future for the child. In the year, we supported 23 (2021/22 – 21) families .

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REPORT OF THE BOARD OF TRUSTEES (INCLUDING DIRECTORS’ REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 March 2023

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Services for Children and young people with disabilities

The Break services for children with disabilities gives young people access to opportunities to enable them to make progress. We operate three homes across Norfolk, together with a mobile service delivering in the community.

Nelson Lodge offers residential short breaks for children and young people with disabilities who live in Norfolk. The young people have time away from their families in a safe, secure environment while their parents and siblings enjoy a break from their 24/7 care responsibilities. Break’s skilled and dedicated staff support young people to enjoy a range of activities, building confidence, independence skills and helping to form friendships. The service also provides opportunities for our young people to have experiences that would otherwise be out of reach due to the challenges that their disability brings, this has included in the year trips to climbing walls, ski slopes and an indoor skydiving centre.

We provided short breaks for our 25 young people for a total of 950 nights (2021/22 25/959) . Many of our families report that without the support of our service, their children would be in full-time residential care, and due to the lack of availability this will often be in a different county. This year one of our young people got to experience being a zookeeper for the day, learning about and feeding various animals including a giraffe and a tiger. Another young person visited Legoland. The home has recently purchased a VR headset which will allow our young people to “experience” even more opportunities virtually such as concerts, skydives and trips to other countries. This will also benefit our young people that don’t know what to expect from a trip/activity and can do a practice run in the safety of our living room.

Morley House is a residential children’s home for young people with learning disabilities and complex needs. During the year we supported 4 (2021/22 – 5) young people with everything they needed to lead happy, safe and enjoyable lives. We helped them to manage their wellbeing, work on their life skills, make choices and decisions to have fun in whatever they wanted to do. We have put a lot of effort in supporting their communication skills so they could tell us what they wanted us to do. We did many miles going out for drives, visiting fair grounds, water park, trampoline parks or supporting them to spend time with their families. Throughout the year all the young people spent as much time with their families as possible. We shared celebrating big events like Christmas and birthdays.

In the past year we concentrated on finding forever homes for two of our young people and we think we are very close to achieving that goal.

For most of the year all our young people were in full time education. In the second part we supported one of them to find an alternative learning style that would be more suited to his needs.

Trafalgar Lodge is a children’s home which provides individually focused and child-centred professional care and support for children and young people who have learning disabilities, physical disabilities, and communication difficulties. Trafalgar offers a safe environment that is caring and homely. Young people can enjoy activities, are encouraged to make choices, pursue their wishes and achieve personal goals. During the year we supported 4 (2021/22 – 6) young people.

We have been successful in our tender application to remain on the short breaks provider framework in Norfolk and will remain on the framework up until 2026. The Activity Breaks service continues to give young people with disabilities the opportunity to do many of the things their peers take for granted and that would otherwise be denied to them because of their disability. We provide a range of supported community-based activities that are centered around the young person and what they want to do.

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REPORT OF THE BOARD OF TRUSTEES (INCLUDING DIRECTORS’ REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 March 2023

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Pathways to Work – Opportunities team

Break knows how important it is to expand the horizons of our young people and support them to achieve their potential as care experienced young people aged between 16 and 20 are four times more likely to be unemployed than their peers. Break offers safe environments with appropriate support to enable our young people to explore, build skills, have great experiences, test ideas and experiment.

Our aspiration projects continue to offer new experiences and opportunities for our young people to try new things and develop their peer network. We have hosted 7 residential and camping events which give our young people the chance to co-produce their experience over several days and take part in all kinds of activities both indoors and outdoors and while developing life skills such as cooking, cleaning, budgeting and living together. They have been able to stay in some really amazing spaces from rolling fields to 500-year-old properties exploring the history of their local communities while bonding with their peers. One of the most exciting of our residential experiences was our Excelsior sailing trip where our young people got the chance to spend a week sailing on a 100 year old fishing vessel. Through working together to ensure the ship was set up to sail the seas hoisting sails and navigating their way round the country they were able to bond as a crew, develop new skills, and make new friendships. Over the year 36 (2021/22 – 42) young people from a range of our care services were able to access these residencies. All these activities give our young people the opportunity to build friendships and develop their support network with their peers. We have seen some great bonds develop over the year with many of our young people meeting up independently and socializing outside of our break events.

We continue to develop strong partnerships with other organisations which help us to deliver the aspirational work that we do, one of those is with Wrongs Covert where our young people get the opportunity to be in nature for the day or over a few weeks to understand conservation and to detox from their normal lives. Through facilitators at this site we can offer our young people opportunities to work in nature conservation and develop a site that they can continue to use for years to come. We were lucky enough run our greening communities project again this year where our young people worked first hand on building board walks and path ways to make this space more accessible, something they have been so proud of and which has led to even more opportunities for volunteering and employment in the local community.

During the course of the year the coffee van has attended over 51 events from small car park gatherings for some of our corporate supporters, working with our fundraising team to support the art trails marathon events as well long term trading spots at caravan parks. We have continued to work with our all of young people providing coffee making workshops with all of our care services including fostering SCSC and residential. We have delivered barista training sessions for 4 young people and offered work to 5 young people (2021/22 9/7) .

We continue to see our young people moving through our employment pathways and realizing the benefits of going

to work and we are so pleased that over the last year we have seen 2 of our young baristas move onto new jobs or apprenticeships as well as provided continued support to our young people in work who need help and advice on how to deal with the different challenges they face

Our construction workshop gives our young people the chance to develop their skills in construction and explore the potential careers on offer there. The project has supported 10 (2021/22 – 16) young people and is working regularly with students in further education to provide additional tutoring for those in need of extra support. This project has also supported our young people work in their local community and gain city and guilds qualifications in painting and decorating as well as qualification with open awards exploring work opportunities in the construction sector. We have taken this a step further and are working with young people in this project to get them ready to start apprenticeship courses in 2023

Over the course of the year Our lifelong opportunities team has supported 64 different young people through 188 different activities and over 4000 supported hours.

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REPORT OF THE BOARD OF TRUSTEES (INCLUDING DIRECTORS’ REPORT AND STRATEGIC REPORT)

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Our Shops

Break’s shops are valuable assets for the Charity. They generate income to help fund our charitable services and provide vital links with the local community, offering opportunities for people to support our work by donating goods or volunteering their time. Our volunteers are able to give something back, learn new skills and meet new people within a friendly environment. We are grateful for the many good quality donations of clothing, household items, toys and books we receive which we sell in our shops. Items not suitable for sale are recycled whenever possible to avoid them going to landfill.

During the year 712 (2021/22 – 671) volunteers worked in our shops.

At the year end, Break had 45 shops plus an online operation , 31 in East Anglia and 14 in the West Country. Next year we plan on extending our online offer.

Fundraising

Much of the support offered by Break to children, young people and families is funded by charitable income from fundraising. The team developed some key income streams encompassing:

Trails - The two-year GoGoDiscover Trail across Norfolk and Norwich, culminated in a charity auction at Norwich Cathedral in autumn 2022, with proceeds exceeding previous Break trails to date. The project team's focus

has turned to 2024, with a hugely successful launch of the 'Cambridge Standing Tall' sculpture trail of giraffes, due to be delivered in spring 2024.

Corporate - As well as engagement in trails, there has been a continued growth of corporate relationships and developing new partnerships across the region and support from a variety of sectors. This has resulted in an increase in corporate donations, in kind support, charity of the year partnerships and volunteering.

Events - Following on from the recovery post-pandemic, we continue to focus on our most successful regular and popular events, alongside the introduction of new challenges and activities to extend our reach across our region. This has led to increased individual engagement and participation and great return on investment.

Individuals and Community - We continue to develop this area and have been working to reignite e-newsletters for supporters and are working to engage with a wider community beyond just Norwich.

Trusts and Foundations - Support from trusts and foundations is invaluable to our work with children and young people. We are working with local Norfolk and Cambridgeshire trusts and national grant-makers. These donations fund project work which is supporting children and young people with a care background to achieve successful life paths and challenge the national statistics of poor outcomes. Trusts and foundations are also supporting Break to test new project initiatives and gather evidence which contributes to bigger projects and can lead to systemic change for care services nationally. Please contact us if you are a trust that aligns with our work as we would be grateful to start a conversation on how we can work together to make a meaningful difference.

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REPORT OF THE BOARD OF TRUSTEES (INCLUDING DIRECTORS’ REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 March 2023

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The table below shows some of the restricted grant funding we received in the year following successful grant applications.

Funder Break Service Amount
Esmee Fairbairn Foundation Staying on Track £84,629
The Thompson Family Charitable Trust Opportunities Team £50,000
Norfolk Construction Charitable Trust Opportunities Team £38,953
CHK Foundation Staying Close, Staying Connected -
Fostering Futures		 £30,000
Alan Boswell Group Charitable Trust Opportunities Team / Education Officer £19,000
Norfolk County Council Education officer £12,388
Norfolk Community Foundation through the Public
Health – Empowering Communities for Mental
Health and Wellbeing Fund		 Mentoring £10,000
Insurance Industry Charitable Foundation Opportunities Team £9,300
BBC Children in Need Break Therapeutic Service £5,938
Norwich Forum for the Construction Industry Opportunities Team £5,422
The Wellard Trust Mentoring £5,000
The Ranworth Trust Opportunities Team £5,000
Norfolk Community Foundation through Sir Norman
Lamb Mental Health and Wellbeing Fund		 Opportunities Team £5,000
Norfolk Community Foundation through the Love
Norfolk 2022'		 Opportunities Team £4,992
Norfolk
Community
Foundation
through
the
Greening our Communities'Fund		 Opportunities Team £4,950
Norfolk Community Foundation through the West
Norfolk Lives Fund		 Opportunities Team £4,400
The Places Foundation Opportunities Team £4,000
R C Snelling Charitable Trust Opportunities Team £3,000
The Outlook Fund – Cambridge Community
Foundation		 Staying Close, Staying Connected £3,000
Norfolk Community Foundation through the New
Endeavour Rangers Fund		 Break Therapeutic Service £2,000
Social Investment Business Opportunities Team £1,500
Norfolk Community Foundation SCSC £3,364
Active Norfolk Opportunities Team £1,386
The Beer Harris Memorial Trust Opportunities Team £1,000

We would also like to thank the following supporters of Break where the value of support has exceeded £5,000 Active Norfolk Norwich BID Alan Boswell Group Charitable Trust Paragraph Publishing Bailey Fisher Executive Search Pentaco Construction Limited Cambridge BID Production Bureau ltd Castle Quarter QD Chantry Place Richardsons Leisure Clapham & Collinge Solicitors Roarr! Dacre Property Holdings Royal Norfolk Agricultural Association David Utting Engineering The Beer Harris Memorial Trust Furthermore Marketing The Ellerdale Trust John Lewis Partnership The Forum Trust Ltd Junkyard Market Wild in Art Longwater Construction Supplies Candour Mark Province of East Anglia [Freemasons] Xaar Plc Nielson Brandbank

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B) Financial Review

Results

Break incurred a deficit of £504k (2021/22 £286k surplus) for the year, this includes a revaluation loss of £349k (2021/22 £Nil) following on from the valuation of the Charity’s property portfolio at the year end which decreased the property value to £3.4m. The total loss for the year comprised a surplus of £174k (2021/22 £358k) before the adjustment for the valuations, £175k (2021/22 £358) deficit after valuation adjustment on unrestricted funds, a deficit of £43k (2021/22 £174k surplus) on designated funds and a deficit of £286k (2021/22 deficit £246k) on restricted funds. The value of net assets decreased from £5,933k to £5,429k . Of these, unrestricted funds accounted for £5,314k (2021/22 £5,677k) (including designated funds of £808k (2021/22 £794k)).

Reserves Policy

Free reserves are unrestricted funds that are available to be spent on any of the Charity’s objectives. Tangible fixed assets, and the connected bank loans, are not included in free reserves as these assets are essential to the Charity’s activities. Their disposal would adversely impact the Charity’s ability to deliver its aims.

The level of free reserves is set by the Board of Trustees on an annual basis and regularly monitored throughout the year. Action is taken if actual free reserves fall significantly outside the target level established. The Finance Committee reviewed the Reserves Policy in February 2023 alongside the budget for April 2023 to March 2026 and recommended to the Board of Trustees a target for free reserves of £992k.

In determining the level of free reserves, Trustees consider the financial impact of the risks facing the Charity, including the loss of income from partner agencies and voluntary donations, and balance the need to hold sufficient reserves to enable the Charity to:

Free reserves as at 31 March 2023 were £1,061k (2021/22 £1,061k). Free reserves are in line with the Charity’s policy.

As at 31 March 2023, the Charity had Designated Funds of £808k (2021/22 £794k). Designated Funds are funds set aside by the Trustees out of unrestricted funds to support specific future purposes and projects. Details of the Designated Funds, together with movements during the year, are given in Note 20 to the financial statements.

As at 31 March 2023, the Charity had Restricted Funds of £115k (2021/22 £256k). Restricted Funds are funds received for undertaking an activity specified by the donor when making the gift, or may result from the terms of an appeal for funds. Details of the Restricted Funds, together with movements during the year, are given in Note 20 to the financial statements.

Funding Sources

Break has three main funding sources; service level agreements and spot purchase contracts from local authorities, retail and fundraising.

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Investment Policy

The Charity holds cash to fund expenditure in the short and medium terms. The cash is held on deposit accounts as capital preservation is of particular importance, as is the ready availability of a substantial proportion of the assets to meet immediate cash flow requirements. Given these parameters, the Charity seeks to produce the best financial return within an acceptable level of risk. In implementing the Investment Policy, the Charity will have regard to the spread of risk, future liquidity requirements and ethical considerations. The treasury and investment position is regularly reported to and monitored by the Finance Committee.

Principal Risks and Uncertainties

The Trustees undertake continual assessment of the principal risks facing the Charity and are satisfied that adequate controls and procedures are in place to mitigate these risks. The Risk, Governance and HR committee is responsible for overseeing the approach to risk across the whole of the Charity’s activities. During the year the Charity reviewed and revised its risk management system to aid improved reporting at both operational and strategic level whilst continued assurance that all risks are assessed and reported. All risks identified are logged and initially assessed as a risk (with no mitigation), mitigations and controls are then applied with the aim of reducing the risk to an acceptable level.

Risks are scored on impact and likelihood which give an overall risk score. Any risk scoring over 16 is reported to the board through the agreed board reporting processes, operational risks are managed by the relevant manager. The Executive review the risks on a fortnightly basis. Board sub committees review their strategic risks at their meetings during the year.

The key risks identified by the Trustees are:

All the above risks have been reviewed by the Trustees during the year, who consider that the controls and mitigations in place for each risk area is appropriate. Measures that are in place to mitigate the above key risks include:-

The strategic risk analysis is reviewed by the Trustees on an annual basis.

Key Performance Indicators

Trustees monitor the Charity’s Key Performance Indicators (KPIs) on a regular basis. If a situation arises, as happened during the pandemic, meetings are increased in frequency to enable a closer level of scrutiny during those times. The financial KPIs are reviewed periodically and the results reported through the Management Accounts. The KPIs include performance against budget, occupancy, net current assets, reserve levels and staff costs compared with income.

Going concern

The Trustees have carefully considered all available information impacting the finances and operations of the Charity for 12 months from the date of this Report. Information from budgets and forecasts for income, expenditure and cash-flow, including the availability of unrestricted funds and reserves, credit facilities and any other forms of financial assistance have been considered. The Trustees are confident that there are no going concern issues.

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C) Plans for future periods

The Trustees anticipate a challenging year ahead for the Charity in light of inflationary rises impacting expenditure which is not always matched in income, especially that which is restricted by contractual terms.

We have seen a strong return to our income streams from our retail and fundraising activities, sustaining these levels is key.

Our Strategy 2023-2025

The Board have signed off a three-year strategy focussed on four themes: Relationships, Quality, Ambition and Added Value. We will ensure that we drive our charitably funded services to ensure that we continue to pioneer and innovate.

We will do this by:

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D) Structure, Governance and Management

Governing Document

Break is a charitable company limited by guarantee, incorporated in England and Wales on 15 February 1983 and registered as a charity on 6 May 1983. Break’s Memorandum of Association establishes its objects and powers, which are governed under Break’s Articles of Association. In the event of the Charity being wound up, the members are required to contribute an amount not exceeding £10.

Recruitment and Appointment of Trustees

The directors of the company are Trustees for the purpose of charity law. It is the Board of Trustees’ collective responsibility to ensure that the Charity is fit for purpose and to determine and support its strategic direction in order to enable it to attain its stated objective. The Charity follows the Code of Governance for the Voluntary and Community Sector.

New appointments to the Board are made after completion of a Trustee skills gap analysis and an open recruitment process to attract volunteers with appropriate skills. During the year, in accordance with the Memorandum and Articles of Association a third of all Trustees in office are required to retire each year. The Trustees who are required to retire by rotation are those who have been longest in office since their appointment or reappointment. The Trustees take into account the Charity Commission’s recommendation that the total length of office should not normally exceed nine years; however, the total period of appointment may be varied in any particular case if the other Trustees then serving at the time determine that it would be in the interests of the charity to do so. The names of all Trustees are listed on page 1.

Trustee Induction and Training

All Trustees receive a full induction pack and training needs are assessed periodically.

Organisational Structure

The Board may delegate any of its powers to any committee consisting of one or more members of the Board or Executive Officers. Break has 4 sub-committees on Finance, Income Generation, Care Services, and Risk, Governance and HR. These are chaired by Board members and involve Executive Officers and some of the wider staff team.

The Governance and Management Structures operate under the shared principles of:

Trustee attendance

During the year there were a total of 18 (2021/22 21) Board and sub-committee meetings, overall attendance at the meetings was 83% (2021/22 88%).

Pay policy for key management personnel

The key management personnel are paid on Grades 1-3 of a 7 point ranking that is used for all managerial and administrative support staff. The grades all have a scale with a minimum appointment rate, standard job value and maximum job rate. Progress towards the top of the scale is through performance not service.

An Executive Pay Committee, with Trustee input, determines any performance related pay increases for Grades 3- 7. Pay increases for the CEO and Directors (Grades 1 and 2) are determined solely by the Trustees and limited by the confines of the scales that are transparently published within the Charity.

No bonuses are paid to key management and employer pension contributions are set at 5% of salary for all eligible Break employees.

14

Break

REPORT OF THE BOARD OF TRUSTEES (INCLUDING DIRECTORS’ REPORT AND STRATEGIC REPORT)

FOR THE YEAR ENDED 31 March 2023

_____________

Risk Management

The Trustees believe that the major risks to which the Charity are exposed to have been identified, reviewed and assessed. Systems are established to mitigate those risks, The principal risks and uncertainties and the response to specific risks are set out on Page 12.

Fundraising Practices

Break manages all its fundraising activities in-house and does not use external, professional fundraisers. Members of Break’s fundraising team organise and support fundraising events and activities for our corporate, community and individual supporters. Commercial participators are exclusively involved with the GoGoSculpture trails by written agreement with Break. Break complies with the Fundraising Regulator’s Code of Fundraising Practice.

No complaints about fundraising activity were received in the year (2021/22 – none).

Break has signed up to the Fundraising Regulator’s Code of Fundraising Practice and is a member of the Chartered Institute of Fundraising. All of Break’s fundraising guidance and working practices are compliant. Some of the staff in the fundraising team are also individual members of the Chartered Institute of Fundraising. Volunteer fundraisers are given a full induction and briefing before they raise funds for Break.

All direct marketing is undertaken by the fundraising department. It is neither unreasonably intrusive or persistent and is only sent to people who have consented to engage with Break. Break never make cold calls. All marketing material or information sent from Break contains clear instructions on how a person can remove themselves from mailing lists. All of Break’s processes are GDPR compliant. Break’s work is with vulnerable people and Break has an agreed operating procedure to protect vulnerable people. All Break’s fundraisers are familiarised with the Code of Fundraising Practice to ensure that it is applied properly.

Staff and volunteers

Break’s staff and volunteers are critical to the ongoing success of the Charity. Their time, skill, passion and dedication ensure Break is able to deliver the best possible services for the children and families supported. Break’s volunteers continue to provide invaluable input throughout the Charity, but especially to the retail operations. A conservative estimate of their contribution to the Charity is equivalent to £300,000 (2021/22 - £285,000) of paid salary hours.

Employee engagement

Break actively encourages the engagement of employees and welcomes constructive comments on the running of the Charity. The principal structure for this is the Staff Consultation Forum, a staff body of 25 representatives from all disciplines, departments and services. The Forum meets three times a year and is attended by senior members of the Executive and Trustees.

We also carried out an Employee Engagement Questionnaire this year and, based on the feedback, have changed the way we work. Some of the changes we made are:

Break was reviewed and awarded a Gold standard by Investors In People this year and we continue to develop our engagement activity through well-being groups, staff champions and regular communication of key messaging.

Break continued the communication with employees and volunteers during the year. The frequency of a news update from the CEO remained weekly. The Director of Care also reports on a weekly basis to all colleagues in care services covering achievements and activities in the division. We have migrated to Microsoft 365 over the last 6 months and this has worked well. Our next steps are to fully integrate its use for version control, team working and internal communications.

15

Break

REPORT OF THE BOARD OF TRUSTEES (INCLUDING DIRECTORS’ REPORT AND STRATEGIC REPORT) FOR THE YEAR ENDED 31 March 2023

_____________

Policy for employment of disabled persons

Break welcomes applications for employment from all prospective employees regardless of disabilities. Break is committed to developing practices that not only meet the requirements of equalities legislation but which actively promote equality of opportunity and maximise the abilities, skills, and experience of all employees. Break already has the Department for Work and Pensions designation of “Disability Confident – Committed” and is working towards recognition at an enhanced level of this scheme.

Break’s commitment is to ensure that employees are managed in an inclusive way, taking into account individual differences and giving employees the confidence to disclose a disability should they so wish. If an employee discloses that they have a disability or become disabled during the course of their employment we will engage in a discussion with them to determine what they need to be successful in their role and seek to make reasonable adjustments to facilitate this. These could include, for example, training, specialist technology or equipment. In deciding what is reasonable, the practicalities and resources available to Break, including through the government funded “Access to work scheme”, are taken into account.

The Environment

We are committed to improving our environmental awareness and reducing the impact of the Charity on our environment, both now and in the future. We recognise climate change is one of the most serious environmental challengers currently threatening the global community and we understand we have a role to play in reducing greenhouse gas emissions.

During the pandemic many of the ways we operate changed, as we come out of those times we have taken learnings from then and adapted to different ways of working that reduce our impact, these include

We have mapped 12 months of continuous consumption data for of our premises the table below details the usage across the Charity. The period covered was the calendar year to 31 December 2022. The BEIS’ greenhouse gas conversion factors for company reporting, published in June 2022 were used in the calculations.

Jan – Dec 2022 Use in Kwh Carbon Emissions
tCO2e
Total electric use 765,808 159
Total gas use 459,577 106
Total transport fuel 151,044 151
Total energy from other fuels 203,775 45
Total energy use (all sources) 1,580,204 461
Total estate size 12,007sqm
Carbon intensity ratio 38.37KgCO2e per sqm

We will map out where investment can be prioritised to achieve greatest impact as part of our facilities review plan. Further work needs to be done to routinely monitor water consumption and waste to further stretch aur environmental impact reduction targets. We will be looking at our procurement of services over the coming months and how we can improve our impact on the environment.

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Break REPORT OF THE BOARD OF TRUSTEES (INCLUDING DIRECTORS. REPORT AND STRATEGIC REPORTI FOR THE YEAR ENDED31 March 2023 Responslbllltles of the Board of Trustees The Board of Trustees (who are atso directors of Break for the purposes of company lawl are responsible for preparing the Report of the Board and the financial statements in accordance with applicabte law and United Kingdom Accounting Standards (United Kingdom Genernliy Accepted Accounting Practice). Company law requires the Board ofTrusteeslo preparefinancial statements for each financial year. Undereornpany law the trustees must not approve the financial stslements unless they are satisfied that they gNe a true and fair view of the state of affairs of the charitable company and of the incoming resources 8nd applicat￿)n of resources, including the income and expenditure. of the charitsble company for that period. In preparing these financial statements. the Board of Trustees are required to: select suitable accounting policies and then appty thern conssstentty: observe the methods and principles in the Charities SORP 2019 IFRS1021'. make judgements and estimates that are reasonable and pnJdenL state whether applicable UK Aceounting Standards have been followed, subject lo any material departures disclosed and explained in the financial statements., prepare the financial slatemenls on the going concem basis un￿5 it is inappropriate to presume that the charitable company will continue in operatKJn. The Board of Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy al any lime the financial position of the charitable company and enab￿ them lo ensure that the financial statements compty wf(h the Companies Act 20(￿. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and det￿tIOn of fraud and other irregularities. Auditor Following a compelilTrie tender prLess in 2022 the Board appointed Price Bailey LLP as the Charity's auditors for the yearended 31 March 2023 and will recommend to IheAGM that they should ￿ntinUe to be engaged as auditors for the fcsrthcoming year. Dlsclosure of infomiation to the auditor We. the directr)rs of the company who held offits at the date of approval of these Financial Statements as sel out above each confimi, so far as we are aware, thaL' there is no relevant audit infomiation of which the coMpan￿S auditor unaware,. and we have tsken all the steps that we ought to have taken as directors lo make ourselves aware of any relevant audit infomialion and to e5tabli5h that the company's aLMlitor is aware of that inform81ion. We have disclosed to the company's auditor all forecasts and W0￿1n9S based on current knowledge and actions, including the effect on cash flow, reserves and funds. to validate our eonclusion thal Break's accounts should be prepared on a going•concem basis. The Board of Trustees are responsible for the Maintenar￿e and integrity of the corpore and financial infoTmation included on the charitable company'5 website. Legislation in the United Kingdom goveming the preparation and dissemination of financial slalements may dfftr from legislation in otherjurisdictions. In approving the Truslee$' Annual Report. we also approve the St￿ey1¢ Report in our capacity as company directors. Approved by the Board of Trustees on 19th Juty 2023 and signed on its behalf by: Beverley Hall. Trustee 17

Break

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS

FOR THE YEAR ENDED 31 March 2023

_____________

Opinion

We have audited the financial statements of Break (the ‘charitable company’) for the year ended 31 March 2023 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:

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 charitable company 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 charitable company’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 trustees 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, except to the extent otherwise explicitly stated in our report, 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.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS

FOR THE YEAR ENDED 31 March 2023

_____________ Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or 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 auditor under the Companies Act 2006 and report in accordance with this Act.

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS

FOR THE YEAR ENDED 31 March 2023

_____________

We gained an understanding of the legal and regulatory framework applicable to the charity and how it operates and considered the risk of the charity not complying with the applicable laws and regulations including fraud, in particular those that could have a material impact on the financial statements. This included those regulations directly related to the financial statements. In relation to the charitable company this included employment law, financial reporting, data protection and health & safety.

The risks were discussed with the audit team and we remained alert to any indications of non-compliance throughout the audit. We carried out specific procedures to address the risks identified. These included the following:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-andguidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-foraudit.aspx. This description forms part of our auditor’s report.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS

FOR THE YEAR ENDED 31 March 2023

_____________

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members and its 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 charitable company and the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Helena Wilkinson BSc FCA DChA Senior Statutory Auditor

For and on behalf of PRICE BAILEY LLP

Chartered Accountants and Statutory Auditors

Anglia House 6 Central Avenue St Andrews Business Park Thorpe St Andrew Norwich NR7 0HR

Date: ………………………….……… 12 September 2023

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STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 March 2023

_____________

Note
Unrestricted
Funds
Designated
Funds
Restricted
Funds
2023
Total
£000
£000
£000
£000
Income from:
Donations and legacies
2
424
556
1,008
1,988
Charitable activities
3
7,343
-
411
7,754
Other trading activities
4
4,569
7
-
4,576
Investments
5
23
-
-
23
Other
6
5
-
-
5



Total
12,364
563
1,419
14,346
Expenditure on:
Raising funds
7
4,036
297
-
4,333
Charitable activities
7
8,154
309
1,705
10,168



Total
7
12,190
606
1,705
14,501
Net income / (expenditure)
174
(43)
(286)
(155)
Transfers between funds
20
(202)
57
145
-
Losses on revaluation of
fixed assets
12
(349)
-
-
(349)



Net movement in funds
(377)
14
(141)
(504)
Reconciliation of funds
Total funds brought forward
4,883
794
256
5,933



Total funds carried forward
20
4,506
808
115
5,429		 2022
Total
£000
2,295
7,171
4,095
1
46

13,608
4,182
9,140

13,322
286
-
-

286
5,647

5,933

The statement of financial activities includes all gains and losses in the year. All income and expenditure derives from continuing activities

The notes on pages 25 to 44 form part of these financial statements

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Break BALANCE SHEET AS AT 31 Mar¢h 2023 CIXIPANY NUMBER:01699685 2023 2022 Note £000 £000 £000 £000 Flxed assets Tangible fixed assets Investments 12 13 3,437 3,814 3.822 Current assets Stock Debtors Cash al bank and in hand 14 15 16 1.233 1.638 2.101 2.871 3.097 Current liabilitles Creditors.. amounts falling due within one year 17 1685} 1611} Net current assets 2.186 2,486 Totsl assets less current liabilities 5.631 6.308 Long-temi Ilablllties Credi(ors' amounts falling due after more than one year 18 1202) (375) Total net assets 5.429 5,933 The funds of the Charity Restricted funds 20 115 256 Unrestrlcted funds Designated funds General funds Revaluation ieseNe 20 20 20 794 4.248 635 662 5.314 5.677 5.429 5,933 The finaneial slalements were approved and authorised for ISS￿ by the Board of Trustees on 1W Juty 2023. Signed on behalf of the Board of Trustees beverley Hall. Trustee Frank Shippam, Trustee The notes on page5 25 10 44 form part of these financial statements 23

Break

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 March 2023

_____________


Note

Cash flows from operating activities
23
Cash flows from investing activities
Purchase of tangible fixed assets
Proceeds from the sale of tangible assets
Interest paid
Interest received
Net cash flow from investing activities
Cash flows from financing activities
Repayment of mortgage
Net cash flow from financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at 1 April 2022
Cash and cash equivalents at 31 March 2023
Cash and cash equivalents consist of:
Cash at bank and in hand
Short term deposits
Cash and cash equivalents at 31 March 2023		 2023

£000

(271)

-
7
(19)
23

10
(203)

(203)
(463)
2,101
1,638
142
1,496
1,638		 2022
£000
842

(17)
-
(29)
1

(45)
(1,073)

(1,073)
(276)

2,377
2,101

446
1,655

2,101

The notes on pages 25 to 44 form part of these financial statements

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

_____________

1. Accounting Policies

The Charity is a private company limited by guarantee registered in England and Wales. The address of the registered office is Schofield House, 1 Spar Road, Norwich, NR6 6BX.

The principal accounting policies, judgements and key sources of estimation and uncertainty adopted in the preparation of the financial statements are as follows:

a) Basis of preparation

The accounts (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 issued in October 2020, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The Charity constitutes a public benefit entity as defined by FRS 102.

The financial statements are prepared under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the Charity and rounded to the nearest £000.

b) Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable in the circumstances. The most significant of these judgements relates to the valuation of the Charity’s properties as per accounting policy g) below

c) Going concern

The financial statements have been prepared on a going concern basis as the Trustees consider that the Charity’s ability to continue operating is beyond reasonable doubt.

In particular, the Trustees have carefully considered all available information about the effect of inflationary pressures on the finances and operations of the Charity for 12 months from the time of approving these financial statements. The Trustees have had regard to information from budgets and forecasts for income, expenditure and cash-flow, including the availability of unrestricted funds and reserves.

The Trustees consider that the budgeted income and expenditure is sufficient with the level of reserves for the Charity to be able to continue as a going concern.

d) Group financial statements

The Charity's subsidiary company remained dormant for the year ended 31 March 2023 and has therefore not been consolidated.

e) Income

All income is included in the Statement of Financial Activities when the Charity is entitled to the income and the amount can be quantified with reasonable accuracy. Income is allocated as unrestricted and restricted in accordance with fund accounting rules. Analysis of restricted funds is detailed in note 20.

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

_____________

1. Accounting Policies (continued)

The following specific policies are applied to particular categories of income:

Income from donations and legacies includes grants and donations and is included in full in the Statement of Financial Activities when receivable.

Legacies are included in the Statement of Financial Activities when the Charity becomes aware of its entitlement to the gift and the amount involved can be quantified, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.

Government grants are received in respect of the Staying Close Staying Connected project and in previous years support relating to the Covid-19 pandemic. Income from government and other grants are recognised at fair value when the Charity has entitlement after any performance conditions have been met, it is probable that income will be received and the amount can be measured reliably. If entitlement is not met, then these amounts are deferred.

Donated goods, facilities and services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably, and the Charity has control over the item. Fair value is determined on the basis of the value of the gift to the Charity, for example the amount the Charity would be willing to pay on the open market for such facilities. A corresponding amount is included in expenditure.

Clothing and other items donated for resale through the Charity's shop are included as income within other trading activities when they are sold.

Income from investments is included when receivable.

Income from other trading activities is accounted for when earned.

f) Expenditure

Expenditure is recognised on an accrual basis as a liability is incurred, split between unrestricted and restricted funds. An analysis of restricted funds is detailed in note 20.

Expenditure on raising funds comprises those costs associated with attracting donations and legacies and the costs of other trading activities including the Charity's shops.

Expenditure on charitable activities comprises those costs incurred in the delivery of services to beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs are those associated with meeting the constitution and statutory requirements of the Charity including the audit fees and costs linked to the strategic management of the Charity.

Identifiable direct costs are allocated between expenditure categories of the Statement of Financial Activities on an actual basis. All other costs are allocated on a departmental 'head count' basis.

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

_____________

1. Accounting Policies (continued)

g) Freehold property

The Board have adopted a policy of revaluing freehold property as permitted by FRS 102. The Board have elected to conduct a periodic revaluation of the Charity’s properties. The properties held by the charity were revalued in June 2023 by Brown & co.

Freehold property is not depreciated on the basis that it relates to properties which have a very long useful life and the residual value is likely to be not materially different from the carrying amount. Annual impairment reviews are carried out. Where a revalued property’s carrying amount exceeds its recoverable amount, an impairment loss is recognised as a revaluation decrease within the SoFA.

It is the policy of the Board to maintain all properties to a very high standard with all maintenance and refurbishment costs being charged to the Statement of Financial Activities.

h) Tangible assets

Tangible assets are initially recorded at cost and subsequently stated at cost less any accumulated depreciation and impairment losses. Assets costing over £2,500 are capitalised.

i) Depreciation

Depreciation is calculated to write off the cost or valuation less estimated residual values of tangible fixed assets, excluding freehold property (see above), over their estimated useful lives using the following rates:

Leasehold property Over the period of the lease
Office furniture and fittings 15% straight line
Care homes furniture 20% straight line
Computer equipment and software 33 1/3% straight line
Motor vehicles 25% straight line

The expenditure on furnishing new care homes is capitalised and depreciated over five years. Expenditure on the replacement of furniture, fixtures and fittings is written off in the year the cost is incurred.

j) Investments

Investments in unquoted securities are included at a valuation estimated by the Board. Any gains or losses arising on revaluation are included in the Statement of Financial Activities.

k) Leasing

Rentals payable and receivable under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

l) Pension schemes

Break operates two defined contribution schemes. The assets of the schemes are held separately from those of Break in independently administered funds. The charge in the Statement of Financial Activities is the contribution payable by Break to the funds for the year.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 March 2023

_____________

1. Accounting Policies (continued)

m) Fund accounting

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity.

Designated funds are funds that have been set aside by the Trustees for particular purposes.

Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.

n) Stock

The fair value of donated stock has not been included in these accounts on the basis that it is impractical to obtain a fair value due to the volume of low-value items received and the absence of detailed stock control systems and records. New goods purchased for sale within the shops are measured at the lower of cost and net realisable value.

o) Redundancies

Where an obligation to make a redundancy or termination payment exists, the costs incurred by the Charity are accounted for on an accruals basis and included within employee benefits.

p) Taxation

The Charity is exempt from corporation tax as surplus income and gains are applied for charitable purposes.

q) Debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

r) Cash at bank

Cash at bank and in hand includes cash and short term highly liquid investments with a maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 March 2023

_____________

2. Income from donations and legacies

Unrestricted
£000
Designated
£000
Restricted
£000


Grants & donations
277
556
347
Government Grants:-
Service Delivery
-
-
661
RHLG
-
-
-
CBILs
-
-
-
Legacies
147
-
-


424
556
1,008		 2023
£000


1,180
661
-
-
147
1,988		 2022
£000
1,248
840
163
11
33
2,295

Income from grants and donations in 2021/2 was £1,248k, of which, £177k was attributable to unrestricted funds, £644k to designated funds and £427k to restricted funds.

Income from government grants in 2021/22 was £1,014k, of which, £174k was attributable to unrestricted funds and £840k was attributable to restricted funds.

Income from legacies in 2021/22 was £33k of which all was attributable to unrestricted funds.

Service Delivery Government Grants are for the Staying Close Staying Connected project. Unrestricted Government Grants received in 2021/22 were

3. Income from charitable activities

Unrestricted
£000
Designated
£000
Restricted
£000


Fees for care services
7,327
-
12
Housing income
20
-
399
Training income
(4)
-
-



7,343
-
411		 2023
£000


7,339
419
(4)
7,754		 2022
£000
6,741
418
12
7,171

Income from fees for care services in 2021/2 was £6,741k, of which, £6,726k was attributable to unrestricted funds, and £15k to restricted funds.

Income from housing income in 2021/22 was £418k, of which and £271k was attributable to restricted funds.

Income from training income in 2021/22 was £12k of which all was attributable to unrestricted funds.

29

Break

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 March 2023

_____________

4. Income from other trading activities

2023 2022
Unrestricted Unrestricted
£000 £000
Rental income from property - 5
Fundraising sale of new goods 8 2
Coffee van sales 10 12
Retail income – see analysis below 4,558 4,076

4,576
4,095

Included within Fundraising sale of new goods is £7k relating to designated income (2021/22 £Nil)

Analysis of retail income
Retail income
Sale of new goods
Insurance income (Note 6)
Government Support*
RHLG Grants (Note 2)
CJRS Grants (Note 6)
Retail costs
Surplus		 2023
£000
4,545
12
5

-
-
£000
4,562
-

4,562
(3,741)

821		 2022
£000
£000
4,062
14
-
4,076
163
23
186

4,262
(3,504)

758

*All goods, except where stated above, sold in Break’s shops have been donated.

5. Income from investments

Unrestricted Unrestricted
2023 2022
£000 £000
Interest receivable 23 1

23
1

30

Break

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 March 2023

_____________

6. Other income

Unrestricted Unrestricted
2023 2022
£000 £000
Miscellaneous income 5 14
Coronavirus Job Retention Scheme - 32

5
46

The Coronavirus Job Retention Scheme income relates to furloughed employees across the Charity

7. Analysis of expenditure by activity

31.03.2023
Charitable expenditure

Young people in care
Children with disabilities
Family support
Children at risk
Support services
Raising funds
Retail and other trading activities
Fundraising		 Direct
costs
£000

3,006
2,537
1,265
1,422
-

8,230
3,374
535

3,909

12,139		 Support
costs


£000

668
529
372
335
34

1,938
377
47

424

2,362		 2023
Total

£000

3,674
3,066
1,637
1,757
34
10,168
3,751
582
4,333
14,501		 2022
Total
£000
2,985
2,701
1,635
1,731
88
9,140
3,515
667
4,182
13,322

Charitable expenditure includes £1,705k attributed to restricted funds (2021/22 £1,799k) and £309k (2021/22 £10k) relating to designated funds, all other expenditure was unrestricted.

Expenditure on raising funds includes £Nil (2021/22 £Nil) attributed to restricted funds and £297k (2021/22 £460k) relating to designated funds, all other expenditure was unrestricted.

31

Break

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 March 2023

_____________

Analysis of expenditure by activity - Continued

31.03.2022
Charitable expenditure

Young people in care
Children with disabilities
Family support
Children at risk
Support services
Raising funds
Retail and other trading activities
Fundraising		 Direct
costs
£000

2,467
2,247
1,346
1,419
-

7,479
3,050
613

3,663

11,142		 Support
costs


£000

518
454
289
312
88

1,661
465
54

519

2,180		 2022
Total

£000

2,985
2,701
1,635
1,731
88
9,140
3,515
667
4,182
13,322		 2021
Total
£000
3,024
2,591
1,532
1,473
-
8,620
3,039
376
3,415
12,035

Charitable expenditure includes £1,799k attributed to restricted funds (2020/21 £1,420k) and £10k (2020/21 £1k) relating to designated funds, all other expenditure was unrestricted.

Expenditure on raising funds includes £Nil (2020/21 £Nil) attributed to restricted funds and £460k (2020/21 £121k) relating to designated funds, all other expenditure was unrestricted

Governance costs



Governance costs (included within support costs below) comprise:
Salaries
Travel
Audit fees
Auditors’ remuneration for taxation and services
Other professional fees and support costs
Expenditure includes:
Depreciation (owned assets)
(Profit) / loss on disposal of assets
Operating lease rentals land and buildings
Auditors’ remuneration		 2023
£000


34
1
12
1
1


49


25
(4)
881
12		 2022
£000
59
1
12
1
-

73

91
30
857
12

32

Break

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 March 2023

_____________

8. Analysis of support costs

9.
Interest payable
Basis of allocation

Direct support costs

Operational management
Direct expenditure
Training
Head count
Maintenance
Direct expenditure
Central overheads
Head office establishment
Direct expenditure
Finance
Direct expenditure
Health and safety
Head count
Human resources
Head count
Information technology
Head count
Communications
Direct expenditure
Chief Executive’s office / governance
Direct expenditure
Total


On mortgages not wholly repayable within five years


2023

£000

419
317
149
885
186
243
104
275
184
170
315
1,477
2,362
2023
£000


19		 2022
£000
376
300
144
820
183
247
73
231
209
131
286
1,360
2,180
2022
£000
29

10. Staff costs



Wages and salaries
Social security costs
Pension contributions and life insurance		 2023
£000


8,455
733
437

9,625		 2022
£000
7,817
614
417

8,848

The figure for staff costs includes taxable benefits of £28k in relation to life assurance (2021/22 £28k) The number of employees who received total employee benefits (excluding employer pension costs of more than £60,000 is as follows:

33

Break

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 March 2023

____________
The average number of employees, excluding Board members, during the year


£60,000 to £69,999
£70,000 to £79,999


Care
Retail
Fundraising
Administration		 _______
were:
2023
No.


3
1
2023
No.


255
7
139
42

443		 ______
2022
No.
2
-
2022
No.
260
7
132
39

438

The average number of full time equivalents employed during 2023 was; Care 175 (2021/22 193); Retail 78 (2021/22 77); Fundraising 6 (2021/22 6); Administration 35 (2021/22 34)

Redundancy/termination payments of £58k (2021/22 £19k) were made in the year. No amounts were outstanding at the year end (2021/22 £Nil).

11. Trustees’ and key management personnel’s remuneration and expenses

No members of the Board received any remuneration during the year.

No members of the Board received expenses in the course of their duties during the year in respect of travelling and subsistence (2021/22 £Nil).

Key management personnel are considered to be the Chief Executive and the Executive team as detailed on Page 1. The total amount of employee benefits received by key personnel is £418k (2021/22 £377k).

34

Break

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 March 2023

_____________

12. Tangible fixed assets

Cost or valuation
At 1 April 2022
Disposals
Revaluations
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
Depreciation on
disposals
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Freehold
property
Leasehold
property
Furniture,
fixtures
and
fittings
Computer
equipment
and
software
£000
£000
£000
£000
3,749
359
685
178
-
-
-
-
(349)
-
-
-
3,400
359
685
178
-
326
681
178
~~-~~
12
2
-
~~-~~
-
-
-
-
338
683
178
3,400
21
2
-
3,749
33
4
-		 Motor
vehicles
£000
100
(18)
-

82

72
11
(15)

68

14

28		 Total
£000
5,071
(18)
(349)
4,704
1,257
25
(15)
1,267
3,437
3,814

All fixed assets are held for charitable purposes. All freehold property is non-depreciable.

The freehold properties were revalued following the year end by an independent registered Chartered Surveyor. The properties are valued on the basis of them being converted back to residential private dwellings except for two of the properties (Nelson Lodge and Morley House) which are valued on the basis of alternative use as offices. Expenditure to convert the properties for sale has been taken into account in the valuations. The Board have adopted a policy of revaluing freehold property as permitted by FRS 102 and will review the need for revaluation of the Charity’s properties on an annual basis.

On an historical cost basis, the cost and depreciation of these freehold properties would have been as follows:

2023 2022
Cost Depreciation
 Cost
Depreciation
£000 £000
 £000
£000
Freehold property 3,673 667 3,673
630

35

Break

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 March 2023

_____________

13. Fixed asset investments

Investment holdings
Unquoted
investments


£000

Market value at 1 April 2022
8

Market value at 31 March 2023
8

Unquoted investments


Subsidiary undertaking:
Break Trading Company Limited
Helpcards Holdings Limited
(0.67% holding)		 Total
2023

£000

8
8
2023

£000

-
8
8		 2022
£000
8
8
2022
£000
-
8
8

The investment of £100 in Break Trading Company Limited (01300043), a company incorporated in England, represents 100% of the issued share capital of that company. The company has remained dormant throughout the year. The aggregate amount of net assets attributable to Break is £Nil (2021/22 £Nil). As at 31 March 2023 the company owed £877 (2021/22 £877) to Break.

In the opinion of the Board, on the basis of income received, the value of the investments in Helpcards Holdings Limited is unchanged from 2021/22.

14. Stocks

ebtors


Retail goods for resale


Trade debtors
Accrued income
Other debtors
Prepayments		 2023
£000


-
2023
£000


596
296
130
211

1,233		 2022
£000
-

2022
£000
204
461
133
198

996

15. Debtors

36

Break

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 March 2023

_____________

16. Cash in bank and in hand

17.
Creditors: amounts falling due within one year


Current accounts
Treasury and other deposits
Cash in hand and imprest accounts


Mortgages
Trade creditors
Social security and other taxes
Accruals
Deferred income
Other creditors
Secured creditors included above are as follows:
Mortgages: Secured by fixed charges over the Charity’s freehold
properties
Deferred income included above is as follows:
Brought forward
Released during the year
Deferred during the year
Carried forward		 2023
£000


105
1,496
37

1,638

2023
£000


45
235
158
185
-
62

685

45

1
(1)
-

-		 2022
£000
406
1,655
40

2,101

2022
£000
75
255
147
81
1
52

611

75

41
(41)
1

1

37

Break

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 March 2023

_____________

18. Creditors: amounts falling due after more than one year



Mortgages: secured by fixed charges over the Charity’s freehold properties
Mortgages are analysed as follows:
Between one and two years
Between two and five years
Over five years
Within one year		 2023
£000


202
41
80
81
202
45
247		 2022
£000
375

56
141
178

375
75

450

Mortgages include a loan of £292k drawn from Lloyds Bank plc in September 2011 repayable over 15 years at a variable rate of 2.25% above the Bank of England Base Rate, a loan of £176k drawn from Lloyds Bank plc in June 2013 repayable over 10 years at a variable rate of 2.34% above the Bank of England Base Rate and a loan of £166.5k drawn from Lloyds Bank plc in April 2019 repayable over 15 years at a fixed rate of 4.58%. During the year the loan of £166.5k drawn from Lloyds Bank in June 2013 at a variable rate of 2.75% above the Bank of England Base Rate was paid off in full. The loans are secured on various freehold properties.

19. Operating lease commitments

The total future minimum lease payments under non-cancellable operating leases are as follows:



Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years		 Land &
buildings
2023

£000

538
977
400
1,915		 Land &
buildings
Motor
vehicles
2022
2023

£000
£000

594
103
1,396
152
489
-
2,479
294		 Motor
vehicles
2022
£000
121
139
-
260

38

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 March 2023

_____________

20. Funds

2022/23


Restricted Funds
Centre funds
SCSC
Young Persons Celebration
Norwich Consolidated Charities
Staying on Track
Fostering Futures
Education Officer
Mentoring
Make a dream
Opportunities Team
Designated Funds
Wellbeing & Services Added
Value(My Break 50)
Organisational Well-being
Adding Value (Go-Go Hares)
Commercial Development
Apprenticeships
Cambridge Trail
Charms Development
Go-Go Discover
Standing Tall Trail
Go-Go Break
Building repairs
Unrestricted Funds
Revaluation reserve
General Funds
Total unrestricted funds
Total Funds		 Balance
as at
01.04.22
£000

18
4
3
19
37
74
-
-
-
101
256
32
10
28
50
125
91
13
53
-
240
152
794
635
4,248
4,883
5,677
5,933		 Income
Expenditure
£000
£000
29
(30)
1,047
(1,160)
-
(2)
-
(5)
85
(90)
43
(117)
17
(20)
21
(20)
15
(15)
162
(246)

1,419
(1,705)
-
(19)
-
-
-
-
-
-
-
(23)
-
-
-
(13)
469
(241)
94
(56)
-
(200)
-
(54)

563
(606)
-
-
12,364
(12,190)

12,364
(12,190)

12,927
(12,796)

14,346
(14,501)		 Transfers
Valuation
Losses
Balance as
at 31.03.23
£000
£000
£000
-
-
17
112
-
3
-
-
1
-
-
14
-
-
32
-
-
-
3
-
-
-
-
1
-
-
-
30
-
47

145
-
115
38
-
51
(10)
-
-
(28)
-
-
150
-
200
-
-
102
-
-
91
-
-
-
(281)
-
-
-
-
38
136
-
176
52
-
150

57
-
808
-
27
662
(202)
(376)
3,844

(202)
(349)
4,506

(145)
(349)
5,314

-
(349)
5,429

39

Break

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 March 2023

_____________

Transfers Between funds 2022/23

During the year transfers were made between funds as follows:-.

SCSC, Education Officer and Opportunities – Funds transferred from the Designated Go-Go Discover fund to cover shortfall of income in services.

Wellbeing and Services added value (Previously My Break 50) – The balances from Organisational Wellbeing and Adding value have been added to this fund to amalgamate into one fund.

Commercial Development – £150k has been transferred from unrestricted funds to fund future tender and bid support.

Go-Go Discover – These funds have been used to support SCSC, Education Offer and Opportunities as above, with the balance then transferred into the Go-Go Break fund.

– Building Repairs £52k has been transferred from unrestricted funds to cover future repair costs across the organisations buildings.

Transfers Between funds 2021/22

During 2021/22 transfers were made between funds as follows:-.

Centre funds & Staying on Track – allocation of related expenditure incurred in general funds in the year.

Cambridge Trail – costs incurred in previous years relating to the Cambridge trail incurred in General funds Go-Go Hares – allocation to adding value to support SCSC , Moving on Team, Mentoring and the new quality and performance manager.

Building Repairs – Transfer from general funds to build reserves for repairs on the Charity’s properties.

40

Break

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 March 2023

_____________

Funds (continued)

2021/22

Balance as
at 01.04.21
£000

Restricted Funds
Centre funds
59
Children in Need
-
Break Therapeutic Service
-
SCSC
78
Young Persons Celebration
3
Norwich Consolidated Charities
-
CHK Foundation Fund
41
Staying on Track
64
Fostering Futures
-
Education Officer
-
Mentoring
7
Opportunities Team
250
502
Designated Funds
Building Futures(My Break 50)
32
Organisational Well-being
10
Adding Value (Go-Go Hares)
29
Commercial Development
50
Apprenticeships
133
Cambridge Trail
-
Charms Development
13
Go-Go Discover
16
Go-Go Hares
373
Building repairs
77
733
Unrestricted Funds
Revaluation reserve
635
General Funds
3,777
4,412
Total unrestricted funds
5,145
Total Funds
5,647		 Income
Expenditure
£000
£000

6
(39)
6
(6)
3
(3)
1,113
(1,208)
-
-
19
-
-
(41)
84
(89)
117
(43)
28
(28)
11
(27)
166
(315)

1,553
(1,799)
-
-
-
-
-
(2)
-
-
-
(8)
294
(147)
-
-
350
(313)
-
-
-
-

644
(470)
-
-
11,411
(11,053)

11,411
(11,053)

12,055
(11,523)

13,608
(13,322)		 Transfers
Balance as
at 31.03.22
£000
£000
(8)
18
-
-
-
21
4
-
3
-
19
-
-
(22)
37
-
74
-
-
9
-
-
101

-
256
-
32
-
10
1
28
-
50
-
125
(56)
91
-
13
-
53
(133)
240
75
152

(113)
794
-
635
113
4,248

113
4,883

-
5,677

-
5,933

41

Break

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 March 2023

_____________

Restricted Funds

Centre funds - relates to all income restricted to spending on equipment etc. at the various care homes.

Children in Need - provides funding for Time for Me projects which helps children aged 4-15 who are finding it difficult to cope with the effects of their parents’ separation.

Break Therapeutic Service - Grants received to deliver specific sessions for children.

Staying Close Staying Connected (SCSC) - a programme funded by the Department for Education to provide housing and support for care leavers.

Young Persons' Celebration - grants from the A Boswell CT and the Ardwick Trust to support the YP's Celebration in 2022.

Norwich Consolidated Charities - Grant for a housing support worker in Norwich.

CHK Foundation fund - grants from CHK Foundation to support aspirational projects with young people.

Staying on Track - a grant from Esmee Fairbairn Foundation to provide an emotional well-being service to young people aged 18 - 24.

Fostering Futures - a CHK funded project providing housing and support to foster care leavers.

Make a Dream - Project funded by the Free masons giving service users the chance to live out their dreams. Education officer, Mentoring and Opportunities funds are specific funding received to carry out services in these areas.

Designated Funds

Building Futures (My Break 50) - This is now the Wellbeing and Service added value fund , which provides wellbeing activities to staff throughout the organisation and added value to young people in services by accessing additional activities and resources outside statutory funding.

Organisational Well-being - This has now been combined to the Wellbeing fund mentioned earlier, to foster and encourage good practice in the care and development of Break's staff.

Adding Value (Go-Go Hares) - a fund from the profits of the Hares trail to make special provision for the users of Break's services, this has now been combined to the first fund.

Commercial Development - a fund set up to provide start-up funding for innovative income generating projects.

Apprenticeships - a fund to create apprenticeship opportunities for our young people.

Cambridge Trail - a fund to provide development funding for the 2022 Cambridge Sculpture Trail and from the proceeds of the trail to invest in care services in Cambridgeshire.

Charms Development - to promote, develop and expand the use of the Charms data collection and management systems within Break's care services.

Go-Go Discover - for income and expenditure for the future Go-Go Discover Trail.

Go-Go Break (Go-Go Hares renamed) - the profits of the Go-Go Trails used to support young people leaving care and services adding value to the organisation.

Building repairs - this fund has been created to set aside monies for major works to properties such as boiler replacement and roof repairs.

42

Break

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 March 2023

_____________

21. Analysis of net assets between funds

Unrestricted
Designated
Restricted
£000
£000
£000
Tangible fixed assets
3,437
-
-
Investments
8
-
-
Current assets
1,948
808
115
Current liabilities
(685)
-
-
Long-term liabilities
(202)
-
-



Total net assets
4,506
808
115



2021/22
Unrestricted
Designated
Restricted
£000
£000
£000
Tangible fixed assets
3,814
-
-
Investments
8
-
-
Current assets
2,047
794
256
Current liabilities
(611)
-
-
Long-term liabilities
(375)
-
-



Total net assets
4,883
794
256		 Total
£000
3,437
8
2,871
(685)
(202)
5,429

Total
£000
3,814
8
3,097
(611)
(375)
5,933

22. Company status

Break is a company limited by guarantee and has no share capital. Each of the 13 (2021/22 - 13) members undertakes to contribute such amounts (not exceeding £10) as may be required in the event of a winding up.

23. Reconciliation of net expenditure to net cash flow from operating activities



Net income for the year
Interest receivable
Interest payable
(Profit) / loss on disposal of tangible assets
Depreciation
Decrease in stocks
(Increase) / decrease in debtors
Increase in creditors
Net cash flow from operating activities		 2023
£000


(155)
(23)
19
(4)
25
-
(237)
104

(271)		 2022
£000
286
(1)
29
30
91
1
341
65

842

43

Break

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 March 2023

_____________

24. Analysis of changes of net debt

At start of Other At end of
year Cash flows changes year
£000 £000 £000 £000
Cash 446 (304) - 142
Cash equivalents 1,655 (159) - 1,496
Loans falling due within 1 year (75) 30 - (45)
Loans falling due after more than 1 year (375) 173 - (202)
Total net assets 1,651
(260)		 - 1,391

25. Pension and other post-retirement benefits

Defined contribution plans

The Charity operates a defined contribution pension plan for its employees. The amount recognised as an expense in the period was £408k (2021/22 £390k). At the year end £50k (2021/22 £51k) was payable to the scheme.

26. Contingent liability

On the retirement of two of the founders of Break in late 2002 and early 2003, the Charity entered into separate agreements with the retiring founders. Under the agreements, annual indexed linked payments of £3,500 were to be paid for life, with an additional 50% annual payment to the surviving spouse for their lifetime. This additional payment commenced in April 2017 upon the death of one of the retired founders. The current annual payment for the surviving spouse is £7,010 (£6,906) per annum (as adjusted for inflationary increases). Based on standard actuarial assumptions, Break calculates the value of the future potential liability at £68k as at 31 March 2023 (2022 £74k).

This arrangement has been agreed by the Charity Commission.

27. Related party transactions

During the year the Charity received sponsorship income of £7,000 (2021/22 £5,000) towards the current Trail from the Aspiration Europe Limited, owned 100% by Mrs A Ovens, who is a Trustee of Break. There is £Nil (2021/22 £Nil) due from the company as at 31 March 2023.

H Walker, spouse of R Cowdry, Chief Executive Officer (and a member of key management personnel), is employed by the Charity as a Grants and Growth Co-ordinator. H Walker's appointment was made in open competition and R Cowdry was not involved in the decision-making process regarding appointment. H Walker is paid within the normal pay scale for her role and receives no special treatment as a result of her relationship to the Chief Executive Officer.

28. Financial instruments

The carrying amounts of the Charity's financial instruments are as follows:



Financial assets
Equity instruments measured at cost less impairment:
Fixed asset unlisted investments		 2023
£000
2022
£000
8
8

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