Charity registration number 1077228
Company registration number 03826440 (England and Wales)
RAINBOW SERVICES (HARLOW)
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
RAINBOW SERVICES (HARLOW)
LEGAL AND ADMINISTRATIVE INFORMATION
Chair
N Garala
Trustees
N Garala
A S J Brooking
J Das
C S Greenhill
P Robinson
F M Sinnott
Secretary and CEO
S P Summerfield
Charity number
1077228
Company number
03826440
Registered office
The Rainbow Centre
2 Wych Elm
Harlow
Essex
CM20 1QP
Independent examiner
Gary Howard FCA
Howard Wilson Chartered Accountants
36 Crown Rise
Watford
Hertfordshire
WD25 0NE
RAINBOW SERVICES (HARLOW)
CONTENTS
Page
Trustees' report
1 - 7
Independent examiner's report
8
Statement of financial activities
9 - 10
Balance sheet
11
Statement of cash flows
12
Notes to the financial statements
13 - 23
RAINBOW SERVICES (HARLOW)
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 March 2024.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

Rainbow Services (Harlow), known as Rainbow Services, works to alleviate the effects of disadvantage, poverty, deprivation, and social exclusion through imaginative projects that support, enable, and develop people and organisations, to stimulate beneficial change in the local community.

 

Rainbow Services aims to provide quality services and targets those services into areas where there are no existing provisions, or where those who are disadvantaged are poorly served.

 

Where appropriate, research will be undertaken to identify unmet need within the local community and, wherever possible, we will encourage community development through the provision of accessible and affordable services and activities.

 

All of our work is underpinned by our values of equality, inclusion, and collaboration, supporting our stated objects, which are to combat poverty and disadvantage, and to improve the quality of life for local groups and individuals.

Public benefit

The Trustees believe that the activities undertaken within the Charity, to fulfil the aims and objectives, are done so to further the public benefit.

 

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Achievements and performance

A massive thank you to our funders for funding us this year! It has been a busy one, as ever, and we are really proud of what we have achieved - Rainbow Services has an excellent reputation and is known for its delivery and partnership working.

 

Here are just a few of the highlights:

The Rainbow Centre and Infrastructure Support Services

The Rainbow Centre is a voluntary sector campus and hub, where a range of community-based organisations share office space, facilities and internal support services. Casual desk space, a library resource, meeting rooms, and access to IT facilities are also offered to local groups and organisations.

 

Rainbow Services offers infrastructure support and development services to other not for profit organisations in Harlow. This includes providing information, advice, networking and learning opportunities and taking on a representational and influencing role in working with statutory and government agencies. The representation and liaison role is undertaken with local and county wide strategic partnerships in situations where voluntary sector input is imperative to the planning, development and delivery process. This year we have been a part of 45 different steering groups, boards, and working groups.

RAINBOW SERVICES (HARLOW)
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

During this year, we had 215 local not-for-profit groups affiliated with us, all of which receive the following free of charge:

 

Our infrastructure project is funded by Essex County Council and Harlow Council.

Harlow Community Hub

The Harlow Community Hub is an excellent example of Rainbow Services using its place in the community to bring together a partnership that has had huge benefits for the community of Harlow. Born out of our response to the Covid 19 pandemic, the Harlow Community Hub is funded by Harlow Council, Harlow Health Centres Trust, and the Integrated Care Board.

 

By bringing together a partnership consisting of Rainbow Services, Harlow Council, Foodbank Harlow, and Citizens Advice Bureau, we have been able to establish a crisis service, consisting of a helpline for four hours each day, and pop-ups at key locations around Harlow.

 

The in-house partnership means this is more than just a signposting service, and with dedicated staff from each organisation it means we can respond in a fast holistic way to crisis, continuing to work with the family or individual for however long it takes to move them out of the crisis situation - this is one man’s story:

 

Jon (not real name) was placed in a Harlow hotel by his local authority. He had just come out of hospital after attempting to take his own life, He had been sectioned under the Mental Health Act, and was drinking heavily. He had no food and no way of cooking in the hotel room. He approached the Hub team at a pop-up they were holding at the hotel he was staying in.

The team provided Jon with hot food vouchers, and sessions with Mind to improve mental health and alcohol addiction. CAB talked to him about his housing situation, and he was provided with a slow cooker so that he could access Bounty Club food and cook for himself. The team continued to work with Jon, checking on his welfare regularly, and when he was ready, he began volunteering in a kitchen - Jon is a trained chef. Six months on and Jon has been re-housed back in Chelmsford near his son and support network. His mental health has improved greatly, he has stopped drinking, and he is starting to look for paid work again as a chef, using his volunteer experience to help him.

 

On the day that Jon left for his new home, he came into the Harlow Community Hub with his son to express his thanks to the whole team for everything they had done for him.

 

In the last year, the Harlow Community Hub has helped over 1,400 households in Harlow.

 

We also ran our Cook and Eat sessions funded by Active Essex, where people joined a four-week course, learned how to cook nutritious meals and took away a plug-in cooking appliance such as a slow cooker - especially useful for those staying in hotels without cooking facilities.

 

We also partnered with Michael Roberts Charitable Trust and Phoenix Resource Centre to run a school uniform exchange over the summer holidays. This proved hugely successful, and we combined our Hub service so that we could reach even more people.

 

In the winter, we could access and distribute various winter hardship funds to many groups and individuals. We used these to ensure vulnerable residents had access to food, essentials, and energy during the winter months and into the spring. We built partnerships with VCSE groups, schools, and businesses to enable this.

RAINBOW SERVICES (HARLOW)
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Youth Project

Our Youth Project works with young people aged 14-18 who have disengaged from education - we take referrals from schools, Essex Youth Services, the Police and Fire Services, parents, and other agencies, as well as working with the Youth Offending Team. The primary aim is to re-engage young people with education and positive role models, and we do this through teaching carpentry at our purpose-built workshop, demonstrating to the young people that there are ways of earning a good living and being part of a community without joining a criminal gang.

 

They are supported to develop their skills in communication, teamwork, initiative, and woodwork whilst also being encouraged to open up in a friendly, non-threatening environment.

 

In addition, young people can gain qualifications in carpentry and construction and are supported into other activities such as work experience and apprenticeships.

 

We work with around 130 young people each year, here is one young person’s story:

 

James (not real name) joined our 12-week programme aged 15 - he was no longer in school and was in frequent trouble with the police. Our youth team provide a unique style of working in our carpentry workshop which builds respect and trust - James quickly began to work well with the team and built a good relationship, opening up and talking about his experiences and his hopes for life.

 

As a result of our project, James has stopped getting into trouble with the police and he gained qualifications in Health and Safety and Carpentry Hand Tools. We then provided James with a funded place at Harlow Fire Station's Firebreak, where he excelled, and he was soon offered a place with the fire cadets - he now has aspirations of becoming a firefighter.

 

Following such significant improvements in behaviour, James was allowed to return to school to study English and Maths GCSE; and he has now joined our 12-week Community Project. James also now volunteers as a mentor to other young people on the project.

 

For his incredible achievements, James recently received the Jack Petchey Award.

 

The youth project at Rainbow Services continues to go from strength to strength. We now have six, half-day sessions each week, with around 12 young people in each cohort.

 

Our Youth project is funded by the Police Fire and Crime Commission, Police Violence and Vulnerability Unit, Postcode Lottery Trust, and The National Lottery.

Community Builder

Our Community Builder project aims to reduce social isolation and loneliness among those over 65. It is funded by The National Lottery and Mulberry Trust.

 

We have over 1000 beneficiaries across Harlow and run over 24 clubs each week. We also run larger events each month, including trips to the coast, Christmas dinner, theatre trips, afternoon tea, and safe and social events. These are events where organisations, such as the police, come in to talk about protecting against scams, for example. When asked in feedback “What does Rainbow Services mean to you?”, one club member replied “Everything!”.

 

We also have a dedicated Dementia role within the Community Builder team, and we run dementia-friendly clubs and activities, such as walks around the park, as well as training other individuals and organisations in Harlow to become dementia friendly.

 

The Community Builder team also offers seated exercise classes across all clubs to help build core strength to reduce the risk of falls and unnecessary hospitalisation.

RAINBOW SERVICES (HARLOW)
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Rainbow Family Contact Centre

The Rainbow Family Contact Centre is a supportive environment where non-resident parents can see their children if the parental relationship has broken down. This is funded by Essex Community

Foundation, The National Lottery, and Harlow Health Centres Trust.

 

This is Carl’s story:

Carl had not seen his father since 2021 due to alleged mental, emotional and physical abuse against both Carl and his mother.

The Family Contact Centre received a referral for bi-weekly 2-hour supported contact sessions. At our first meeting, Carl’s father shared that he finds it ‘unbearable that he cannot see Carl’ and is very eager for the contact to start.

Through contact sessions, Carl and his father started to slowly build a relationship, playing with Lego, building bricks, arts and craft and outside in the garden area, as well as enjoying snacks together. They used their time to get to know each other again. All with the encouragement and support of our team.

At the point of review, the family told us ‘Contact is going well, and we are having a lot of fun.

Following regular, successful contact at our centre, the court allowed community contact to start. We have supported this, and steps have been taken to ensure parents can communicate via a co-parent app on their phones. We guided the family through this process to ensure a smooth transition for Carl.

A short while later community contact started with the centre only being used as a venue for secure and safe handovers between parents. This has been a positive journey for all involved and soon contact for this family will move fully into the community, with no need for contact centre involvement.

Core20Plus5

Core20Plus5 - Our Health Matters is an NHS England funded project to tackle health inequalities. Our Project Co-ordinator works two days a week and recruits local health champions with lived experience to be a conduit for information both from the NHS but, more importantly, back into the NHS in order to influence pathways to care which might be leading to inequalities.

 

We have been working with the gypsy and traveller community in Harlow, partnering with Macmillan Cancer Care to influence outcomes for both cancer and mental health care within the community. We have already run a number of successful events and have signed up volunteers from the gypsy and traveller community.

 

This is John’s story:

John was bereaved through suicide just over a year ago and was finding life very difficult due to the deterioration to his mental health. John is a member of a Gypsy, Roma and Traveller community. They do not talk about mental health or suicide, and often do not seek any form of medical support for this.

 

Their beliefs and traditions mean they can be ostracized for seeking support when they really need the family to be there for them and they are often told to “man up” or “get on with life”. There is no confidentiality within the community so little chance to talk to others without everyone in the country knowing.

 

John engaged with us through his mother initially and then directly where we discussed his needs. He had already engaged with the GP and was being supported with medication. We discussed the services Chums (a counseling service for people bereaved by suicide) and decided that was more appropriate than any other form of counseling.

 

John was initially anxious and asked for a text contact before a phone call, but engaged well and is now undergoing weekly support. They come to our town and have a discreet venue to use. It has not been an easy process for John but he is seeing the benefits already. John is beginning to see the benefits and is now engaging with us regarding other matters that are important to him and that will support him further. He is engaging with other services which will make a considerable difference to his living situation and financial situation. And has recommended others to also engage with us over matters they would not ordinarily do.

RAINBOW SERVICES (HARLOW)
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
West Essex Community Action Network (WECAN)

WECAN is a consortium of Rainbow Services, in Harlow, Voluntary Action Epping Forest, in Epping Forest, and during this year, UCAN (Uttlesford CVS) in Uttlesford. Together we run projects that cover West Essex.

 

Rainbow Services is currently delivering the Find Your Active project for WECAN. We have employed one member of staff to cover West Essex, providing a one-to-one service to get people who are currently inactive and also possibly isolated, enjoying regular exercise to benefit both mental and physical health.

Financial review

During the year the charity received income of £577,332, an increase of £23,490 on the previous year (2023: £553,842). Our income comprises £119,417 for unrestricted charitable purposes a decrease of £14,306 on the previous year (2023: £133,723) and £457,915 for restricted charitable purposes, which represents an increase on the previous year of £37,796 (2023: £420,119).

 

Expenditure for the year totalled £474,724 which was a decrease of £30,037 on the previous year (£504,761). The expenditure comprises £72,749 for unrestricted charitable purposes a decrease of £47,916 on the previous year (2023: £120,665) and £401,975 for restricted charitable purposes, which represents an increase on the previous year of £17,879 (2023: £384,096).

 

At the year end the charity recorded a surplus of £118,159 including an unrealised gain on investments of £15,551 compared to a surplus of £46,737 after an unrealised loss on investments of £2,344 in the previous year. The surplus of £118,159 is made up of a surplus on unrestricted funds of £62,219 (2023: £10,714) and a surplus on restricted funds of £55,940 (£36,023).

 

The reserves carried forward at the year end total £423,530 (2023: £305,371) of which £331,567 is unrestricted and £91,963 is for restricted charitable purposes (see note 15). The Trustees have designated £24,500 of the unrestricted funds (see note 16) for specific purposes leaving free reserves of £307,067 which equates to just under six months’ worth of running costs.

 

The nature of charity funding is that grants are often received up front for projects that run over multiple accounting periods with the results that surpluses in the year of receipt and deficits in the year of expenditure are not uncommon. This year reflects the situation where we have received some funding upfront that is shown in income and whilst some of this has been expended during the year the balance will be expended next year, giving rise to fund balances carried forward at the year end, in the case of restricted funds these are shown in detail in note 15.

Policy on reserves

Rainbow Services is a flexible and reflective organisation that can respond quickly to opportunities, change, and emerging issues. As such the Trustees have decided that the organisation will hold reserves appropriate to the level of activities and to reflect the importance that beneficiaries and funders may place on the ongoing viability of the organisation. To underpin this, the reserves policy was developed, giving due consideration to all the risks and opportunities that the charity currently faces or may face in the future. Action relating to the management of the reserve position takes place when appropriate to ensure compliance with the accounting and reporting regulations and to promote best practice.

Major risks and management of those risks

An important aspect of the Trustees' governance responsibilities focuses on the organisation's risk management framework. This was developed to ensure a consistent approach to all areas of financial, organisational, and operational risk.

 

An action plan is in place to mitigate all identified risks and this is reviewed quarterly, amended appropriately, and any required actions implemented. The action plan and all associated risk areas are monitored by the internal Audit Committee which reports directly to the Board of Trustees.

 

The Trustees examine the major risks and opportunities that the charity faces each financial year when preparing, updating and monitoring the strategic plan. The charity has developed systems and processes to review and to control these risks and to mitigate any impact that they may have on the charity in the short, medium or longer term.

RAINBOW SERVICES (HARLOW)
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
Plans for future periods

Moving forward Rainbow Services will continue with its plans to be more financially sustainable, developing services which create income to support projects. To this end, we will concentrate on our consultancy and workshop services.

 

We would like to focus on growing the Youth Project, as we have identified a far greater need than we can currently support. We will be looking at the possibility of new premises for this project, and new ways to engage with young people. We will also look to enhance the range of experiences and qualifications we offer, for example by moving into other trades as well as carpentry.

 

We would like to further develop our impact assessments, to demonstrate more fully the impact our projects are having in the community. Demonstrating impact is notoriously hard in the voluntary sector, but we are working with academics and new impact tools to help achieve this.

Structure, governance and management

Rainbow Services (Harlow) has been an independent charity and company limited by guarantee since 16th August 1999, charity registration no.1077228, company no. 3826440. The charity is governed by its Memorandum and Articles of Association.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

N Garala
A S J Brooking
J Das
C S Greenhill
P Robinson
F M Sinnott
D Bartram
(Appointed 8 May 2024 and resigned 12 September 2024)
M Mandat
(Resigned 20 October 2023)
M Sortwell
(Resigned 13 June 2023)
Recruitment and appointment of trustees

Open recruitment takes place as and when there are Trustee vacancies, and all applicants are selected against a Trustee job description and person specification.

Organisational structure

Rainbow Services is governed by the Board of Trustees, who delegate operational responsibility to the CEO (Sharon Summerfield). Full Board meetings are held quarterly when financials and strategic direction are discussed and set. There are also sub-committees; Remuneration Committee, Audit Committee, and Communications Committee - which meet separately throughout the year.

Induction and training of trustees

All new Trustees are inducted using our Trustee welcome pack and training material.

Arrangements for setting key management personnel remuneration

Our Remuneration Committee meets in January to discuss staff salaries for the coming year. The Committee's recommendations are then taken to the full board in March to be ratified for implementation in April. We look at local market rates and inflation when setting salary uplifts, as well as national comparison reports from organisations such as the National Association for Voluntary and Community Action (NAVCA).

RAINBOW SERVICES (HARLOW)
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
Small companies provision statement
This report has been prepared in accordance with the small companies regime under the Companies Act 2006.

The trustees' report was approved by the Board of Trustees.

N Garala
Chair and Trustee
25 November 2024
RAINBOW SERVICES (HARLOW)
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF RAINBOW SERVICES (HARLOW)
- 8 -

I report to the trustees on my examination of the financial statements of Rainbow Services (Harlow) (the charity) for the year ended 31 March 2024.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

1

accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

2

the financial statements do not accord with those records; or

3

the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4

the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Gary Howard FCA
Howard Wilson Chartered Accountants
36 Crown Rise
Watford
Hertfordshire
WD25 0NE
Dated: 25 November 2024
RAINBOW SERVICES (HARLOW)
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
Current financial year
Unrestricted
Restricted
Total
Total
funds
funds
2024
2024
2024
2023
Notes
£
£
£
£
Income from:
Donations and legacies
3
1,008
21,591
22,599
28,771
Charitable activities
4
77,235
432,184
509,419
467,832
Other trading activities
5
35,588
4,140
39,728
56,327
Investments
6
5,586
-
5,586
912
Total income
119,417
457,915
577,332
553,842
Expenditure on:
Charitable activities
7
72,749
401,975
474,724
504,761
Total expenditure
72,749
401,975
474,724
504,761
Net income before investment gains/(losses)
46,668
55,940
102,608
49,081
Net gains/(losses) on investments
10
15,551
-
15,551
(2,344)
Net movement in funds
62,219
55,940
118,159
46,737
Fund balances at 1 April 2023
269,348
36,023
305,371
258,634
Fund balances at 31 March 2024
331,567
91,963
423,530
305,371

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
RAINBOW SERVICES (HARLOW)
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Prior financial year
Unrestricted
Restricted
Total
funds
funds
2023
2023
2023
Notes
£
£
£
Income from:
Donations and legacies
3
1,005
27,766
28,771
Charitable activities
4
79,162
388,670
467,832
Other trading activities
5
52,644
3,683
56,327
Investments
6
912
-
912
Total income
133,723
420,119
553,842
Expenditure on:
Charitable activities
7
120,665
384,096
504,761
Total expenditure
120,665
384,096
504,761
Net income before investment gains/(losses)
13,058
36,023
49,081
Net gains/(losses) on investments
10
(2,344)
-
(2,344)
Net movement in funds
10,714
36,023
46,737
Fund balances at 1 April 2022
258,634
-
258,634
Fund balances at 31 March 2023
269,348
36,023
305,371
RAINBOW SERVICES (HARLOW)
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
12
132,714
117,163
Current assets
Debtors
13
15,894
14,319
Cash at bank and in hand
472,101
334,104
487,995
348,423
Creditors: amounts falling due within one year
14
(197,179)
(160,215)
Net current assets
290,816
188,208
Total assets less current liabilities
423,530
305,371
Income funds
Restricted funds
15
91,963
36,023
Unrestricted funds
Designated funds
16
24,500
24,500
General unrestricted funds
307,067
244,848
331,567
269,348
423,530
305,371

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2024.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 25 November 2024
N Garala
Chair and Trustee
Company registration number 03826440
RAINBOW SERVICES (HARLOW)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
132,411
24,727
Investing activities
Investment income received
5,586
912
Net cash generated from investing activities
5,586
912
Net cash used in financing activities
-
-
Net increase in cash and cash equivalents
137,997
25,639
Cash and cash equivalents at beginning of year
334,104
308,465
Cash and cash equivalents at end of year
472,101
334,104
RAINBOW SERVICES (HARLOW)
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
1
Accounting policies
Charity information

Rainbow Services (Harlow) is a private company limited by guarantee incorporated in England and Wales. The registered office is The Rainbow Centre, 2 Wych Elm, Harlow, Essex, CM20 1QP.

1.1
Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4
Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected.

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included in the balance sheet as deferred income to be released.

RAINBOW SERVICES (HARLOW)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.5
Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

 

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6
Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.7
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

RAINBOW SERVICES (HARLOW)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.9
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2
Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Donations and legacies
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2024
2024
2024
2023
2023
2023
£
£
£
£
£
£
Donations and gifts
1,008
21,591
22,599
1,005
27,766
28,771
RAINBOW SERVICES (HARLOW)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
4
Charitable activities
2024
2023
£
£
Performance related grants
509,419
467,832
Analysis by fund
Unrestricted funds
77,235
79,162
Restricted funds
432,184
388,670
509,419
467,832
Essex County Council
46,944
59,991
Harlow District Council
115,750
129,052
National Lottery Fund
123,232
72,216
NHS West Essex Clinical Commissioning Group
18,062
73,354
Essex Police - Violence & Vulnerability Unit
48,172
26,934
Essex Community Foundation
16,298
23,606
Harlow Health Centre Trust
3,992
20,000
Garfield Weston Foundation
8,333
16,667
People's Postcode Lottery
40,000
-
NHS Hertfordshire and West Essex Integrated Care Board
30,860
-
Other
57,776
46,012
509,419
467,832
5
Other trading activities
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2024
2024
2024
2023
2023
2023
£
£
£
£
£
£
Trading activity income: other
35,588
4,140
39,728
52,644
3,683
56,327
6
Investments
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Interest receivable
5,586
912
RAINBOW SERVICES (HARLOW)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
7
Charitable activities
2024
2023
£
£
Staff costs
315,232
295,348

Other staff costs

3,072
446

Project costs

90,047
136,293

Premises costs

23,777
33,953

Insurance costs

2,776
2,611

Repairs and maintenance costs

625
2,976

Office costs

6,948
7,202

Computer costs

13,008
9,056

Volunteer expenses

1,341
939

Travel and subsistence costs

2,458
3,105

General expenses

5,894
3,612

Legal and professional costs

2,158
3,928

Advertising

4,149
1,456

Bank charges

334
311

Governance costs

2,905
3,525
474,724
504,761
Analysis by fund
Unrestricted funds
72,749
120,665
Restricted funds
401,975
384,096
474,724
504,761
Governance costs comprise independent examiners fees £2,905 (2023: £3,525).
8
Trustees remuneration and expenses
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
9
Employees

The average monthly number of employees during the year was:

2024
2023
Number
Number
Charitable activities
20
21
RAINBOW SERVICES (HARLOW)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
9
Employees
(Continued)
- 18 -
Employment costs
2024
2023
£
£
Wages and salaries
296,001
277,036
Social security costs
14,237
13,922
Other pension costs
4,994
4,390
315,232
295,348

The average number of persons (including senior management and leadership team) employed by the charity during the year expressed as full time equivalents was 21 (2023: 21)

There were no employees whose annual remuneration was more than £60,000.
10
Net gains/(losses) on investments
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Revaluation of investments
15,551
(2,344)
11
Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

12
Fixed asset investments
Listed investments
£
Cost or valuation
At 1 April 2023
117,163
Valuation changes
15,551
At 31 March 2024
132,714
Carrying amount
At 31 March 2024
132,714
At 31 March 2023
117,163
RAINBOW SERVICES (HARLOW)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,969
2,041
Other debtors
1,721
4,922
Prepayments and accrued income
9,204
7,356
15,894
14,319
14
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
10,891
4,584
Other creditors
560
2,307
Accruals and deferred income
185,728
153,324
197,179
160,215
RAINBOW SERVICES (HARLOW)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
15
Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
Movement in funds
Movement in funds
Balance at
1 April 2022
Incoming resources
Resources expended
Transfers
Balance at
1 April 2023
Incoming resources
Resources expended
Balance at
31 March 2024
£
£
£
£
£
£
£
£
Harlow Community Hub
-
152,682
(146,135)
14,000
20,547
130,587
(118,474)
32,660
Youth Project
-
59,119
(54,917)
-
4,202
122,387
(100,045)
26,544
Community Builder
-
127,625
(120,590)
-
7,035
155,454
(138,818)
23,671
Rainbow Family Contact Centre
-
7,587
(6,922)
-
665
19,315
(17,287)
2,693
Core20Plus5
-
18,638
(16,044)
-
2,594
30,172
(27,351)
5,415
Thriving Communities
-
50,065
(35,173)
(14,000)
892
-
-
892
COVID-19
-
1,342
(1,342)
-
-
-
-
-
Harlow Community Fund
-
3,061
(2,973)
-
88
-
-
88
-
420,119
(384,096)
-
36,023
457,915
(401,975)
91,963
RAINBOW SERVICES (HARLOW)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
15
Restricted funds
(Continued)
- 21 -

The specific purposes for which the funds are to be applied are as follows:

Harlow Community Hub - the aim of this project is to bring together various other local community based charities in order to further the main aims of the Charity. A variety of different events and initiatives were run to aid the local community including cooking courses and school uniform exchange. Income totalling £130,586 was received in the year from Harlow District Council, Essex County Council, Active Essex, NHS Herts and West Essex Integrated Care Board and People's Postcode Lottery as well as smaller donations.

Youth Project - this project aims to assist young people who have disengaged from education with the aim to re-enrol them back in school or other institutions such as Police and Fire Services. £122,387 was received in the year from a variety of donors - with the main benefactors being Essex Police - Violence & Vulnerability Unit, Essex PCC, People's Postcode Lottery and National Lottery Fund.

Community Builder - the project aims to reduce social isolation and loneliness among the over 65’s. Activities offered include trips to the coast, Christmas dinner, theatre trips, afternoon tea and other social events. We also have a dedicated Dementia role within the Community Builder team, and so we run dementia friendly clubs, and activities such as walks around the park, as well as training other organisations in Harlow to become Dementia Friendly. The Community Builder Team also offers seated exercise classes across all clubs to help build core strength to reduce the risk of falls and unnecessary hospitalisation. £155,424 was granted in the year from various benefactors including but not limited to Big Lottery, Garfield Western, Active Essex and NHS West Essex Clinical Commissioning Group.

Rainbow Family Contact Centre - this year we have opened the Rainbow Family Contact Centre, a supportive environment where non-resident parents can see their children if the parental relationship has broken down. This is funded by Essex Community Foundation and The National Lottery. This project has received funding in the year amounting to £19,315 - £13,242 was received from Essex Community Foundation, £3,992 from Harlow Health Centre Trust, £1,981 from the Big Lottery with the remaining £100 coming from other donations.

Core20Plus5 - Our Health Matters is an NHS England funded project to tackle health inequalities. Our Project Co-ordinator works two days a week and recruits local health champions with lived experience to be a conduit for information both from the NHS, but more importantly back into the NHS in order to influence pathways to care which might be leading to inequalities. Income in the year included West Essex Clinical Commissioning Group £18,062, Active Essex £5,000 and NHS Herts and West Essex Integrated Care Board £5,860.

Thriving Communities - also known as “Let’s Get Connected” - this project was a short-term project where Rainbow Services, for the first time, provided grants for not for profit organisations looking to pump prime local activities which got people back together following the Covid-19 pandemic. This was primarily funded by the Contain Outbreak Management Fund administered by the West Essex Clinical Commissioning Group (Now Herts and West Essex ICS).

RAINBOW SERVICES (HARLOW)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
15
Restricted funds
(Continued)
- 22 -

COVID-19 - Rainbow Services were at the forefront of the local response to the Covid-19 pandemic. We recruited an army of volunteers to help those isolating with shopping, collecting prescriptions, etc. Following the initial response to the pandemic, we helped rebuild people’s confidence in face to face interaction through projects such as Let’s Get Connected.

Harlow Community Fund - a local business very generously gave us their Christmas bonus to start the Harlow Community Fund. This fund helps people in Harlow to buy essential living items such as beds, cutlery, cookers etc., and works alongside our Harlow Community Hub project.

16
Designated funds
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
Movement in funds
Balance at
1 April 2022
Transfers
Balance at
1 April 2023
Incoming resources
Balance at
31 March 2024
£
£
£
£
£
Redundancy
21,000
-
21,000
-
21,000
IT & Equipment
5,000
(1,500)
3,500
-
3,500
26,000
(1,500)
24,500
-
24,500
RAINBOW SERVICES (HARLOW)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
17
Analysis of net assets between funds
Unrestricted funds
Restricted funds
Total
Unrestricted funds
Restricted funds
Total
2024
2024
2024
2023
2023
2023
£
£
£
£
£
£
Fund balances at 31 March 2024 are represented by:
Investments
132,714
-
132,714
117,163
-
117,163
Current assets/(liabilities)
198,853
91,963
290,816
152,185
36,023
188,208
331,567
91,963
423,530
269,348
36,023
305,371
18
Related party transactions

There were no disclosable related party transactions during the year (2023 - none).

During the year the charity had the following related party transactions:

 

West Essex Community Action Network (WECAN)

WECAN is a consortium of Rainbow Services that runs projects covering West Essex. Rainbow Services were paid £6,850 (2023: £4,033) during the year by WECAN.

 

No amounts were owed between the related parties at the year end.

19
Cash generated from operations
2024
2023
£
£
Surplus for the year
118,159
46,737
Adjustments for:
Investment income recognised in statement of financial activities
(5,586)
(912)
Fair value gains and losses on investments
(15,551)
2,344
Movements in working capital:
(Increase) in debtors
(1,575)
(4,654)
Increase/(decrease) in creditors
36,964
(18,788)
Cash generated from operations
132,411
24,727
20
Analysis of changes in net funds

The charity had no debt during the year.

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