The trustees present their annual report and financial statements for the year ended 31 August 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).
Real Care Ltd (operating as Learning for Life) is a North East provider of services for children Post-16 and adults who have a diverse range of disabilities based across two sites in Consett, County Durham and The John Marley Centre, Newcastle upon Tyne.
The charitable company's objects are to advance and support the Post-16 education of pupils from special schools within the North East region, their families and wider communities by:
Providing post-secondary, non-tertiary education and care for young people with profound and multiple learning difficulties;
Providing a stimulating and effective learning environment (Learning for Life) for all young people, including those experiencing more profound and multiple learning and physical difficulties;
Providing a care and support facility which provides a nurturing environment for young people with more profound disabilities and involvement in the wider community;
Developing further provision as young people progress into work and independent living.
The trustees are satisfied that in accordance with the Charity Commission guidelines, Real Care Ltd meet the public benefit requirements. The trustees have regard to this guidance when exercising any powers or duties to which the guidance is relevant.
Our ethos is to provide a personalised approach to learning which encourages: building confidence, enabling communication, fulfilling aspirations and promoting individual choice. Learning for Life aims to be a leading local provider of specialist education and social care, where our learners are given the most enriching and rewarding experience possible.
Achievements in Education
2024 has been a year of excellent progress for Real Care Ltd, operating as Learning for Life. Our educational services delivered impressive outcomes, with learners achieving results that surpassed expectations. We also had the privilege of hosting a successful Ofsted monitoring visit, which commended our commitment to high-quality post-16 education. We also had a successful ESFA Audit.
Social Care Highlights
Our collaboration with Durham County Council and Newcastle City Council was further strengthened through highly successful visits that showcased the quality of our Social Care provision. These recognitions underline the dedication and professionalism of our teams in creating a nurturing and supportive environment for individuals with difficulties and disabilities.
Expansion at The John Marley Centre
A major milestone in 2024 was the continued development of our provision at The John Marley Centre in Newcastle. This expansion consolidated our ability to seamlessly provide both education and social care under one roof, mirroring the success of our Consett-based operations. The John Marley Centre now serves as a hub for innovative programs and a beacon of excellence for learners across the Newcastle area.
Total income for the financial year was £1,441,992 (period ended 31.08.2023: £1,297,427) and total expenditure was £1,317,267 (2023: £1,149,437). The accounts therefore show a surplus for the year amounting to £124,725 (2023: £147,990). Unrestricted reserves at 31 August 2024 were £892,638 (2023: £805,869) and restricted reserves were £41,116 (2023: £3,160). The unrestricted reserves will enable the charity to maintain services in times ahead. The restricted reserves are ring fenced from operational funds and can only be used for the intention that the grant was made.
The Charity has no external debt financing following the repayment of a Bounce back loan on 30th November 2023 (as at 31 August 2023: £28,333).
Unlike many Charities which are primarily dependent upon fundraising to operate, most of Real Care Ltds income is generated from learner placements. Any grant funding which can positively benefit and impact upon our learners, or for the benefit of the Charity, will be applied for.
Our Trustees diligently review the Charitable Company's reserves requirement, aligning with guidelines from the Charity Commission for England and Wales. In this process, the Trustees considered expenditure commitments, income flows, and the reliability and timing of funds. Factors such as future needs, opportunities, contingencies, and risks were thoroughly analysed and assessed.
On an annual basis, the Trustees establish the working capital requirement for the Charitable Company, ensuring operational alignment with the reserves policy and guidelines. As a charitable company limited by guarantee, the Charitable Company is committed to accumulating reserves. The Charity seeks to maximise revenue streams from both its operational sites.
The trustees aim to maintain free reserves in unrestricted funds at a level which is no lower than three months of total charitable expenditure. It is estimated that this expenditure currently equates to £323,223 (2023: £287,359). At this level of unrestricted reserves, the charity could maintain all operations for more than three months even if no income was being generated. Current free reserves, after adjusting for fixed assets and restricted funds, amount to £567,690 (2023: £440,025).
The charity enjoys good liquidity and has no issues meeting its liabilities when they fall due. The trustees are confident that the charity will continue to operate for at least the next twelve months.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
In 2025 and beyond, we remain committed to excellence in education and care, ensuring that every learner receives the personalised attention and resources they deserve. We aim to expand partnerships, improve service delivery, and enhance governance to achieve sustainable growth.
Our strategic objectives for the next three years focus on creating confidence, competence, and a plan for the future.
The Board aims to:
1. Continuously Improve Provision Quality:
Develop a defined teaching and learning approach aligned with core values.
Implement a clear provision improvement plan, fostering a culture of continuous improvement.
2. Ensure Financial Viability and Sustainability:
Maximise resources for growth through efficient business arrangements.
Balance budgets while enhancing the quality of provision and exploring additional funding streams.
3. Build an Effective Provision Improvement Team:
Attract and retain talent, supporting career development.
Implement a talent management strategy and develop a model of organisational improvement.
4. Ensure Effective Leadership and Governance:
Actively recruit skilled Trustees to enhance governance.
Embed risk management, strategic focus, and provision improvement in governance structures
Real Care Ltd is a company limited by guarantee, governed by its Memorandum and Articles of Association. The charitable company was incorporated on 25th November 2004 with registration number 05296681. It has been registered as a charity with the Charity Commission, number 1113970 since 2nd May 2006. There are currently seven members, each of whom agree to contribute £1 in the event of the charitable company winding up.
The Memorandum and Articles of Association allows for a Council of between two and ten trustees to administer the company.
The Directors of the company are also the Trustees for the purpose of Charity Law and are known collectively as the Board of Directors. The Board of Directors meet on a regular basis and are responsible for the strategic direction and policy of the charity.
All members of the Board of Directors give their time voluntarily and receive no benefits from the Charity.
Risk management
The trustees have assessed the major risks to which the charity is exposed, in particular those relating to the operation’s finances, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
Decision making arrangements
A line management system is in place with day to day responsibility for the management of the organisation resting with the Chief Operating Officer (Principal and Head of Services). The Chief Operating Officer is responsible for ensuring that the charity delivers the services specified and that key performance indicators are met. Day to day operational management is headed by individual team members using the reporting structures and line management to finally report to the Chief Operating Officer and trustees.
The charity may by ordinary resolution appoint a person who is willing to act to be a director. All new directors receive a welcome pack, which contains key policies, strategic plans, code of conduct etc. They also receive induction time with the Principal and Head of Services, and opportunities to visit services and activities as well as access to any relevant training.
Arrangements for setting pay and remuneration
Pay and remuneration is reviewed annually, usually at the same time as minimum wage becomes effective. The Senior Management Team prepare a schedule of recommendations for the Board to review and instruct upon. This will be agreed and recorded at the Board Meeting before any pay rates are communicated or changed.
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:
The trustees, who are also the directors of Real Care Ltd for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In accordance with the company's articles, a resolution proposing that Robson Laidler Accountants Limited be reappointed as auditor of the company will be put at a General Meeting.
The trustees' report was approved by the Board of Trustees.
Opinion
We have audited the financial statements of Real Care Ltd (the ‘charity’) for the year ended 31 August 2024 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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and
the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit; or
the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
The risk of material misstatement due to error or fraud has been assessed in conjunction with how internal controls may mitigate any such risk. These controls are reviewed as part of the audit by performing systems walkthroughs to ensure they are operating effectively. Analytical review and substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team;
obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework, in which the charity operates and how the charity complies with that legal and regulatory framework
inquired with management and those charged with governance about their own identification and assessment of the risks of irregularities, including any know actual, suspected or alleged instances of fraud
discussed with management and those charged with governance any non-compliance with laws and regulations and how fraud might occur including assessments of how and where the financial statements may be susceptible to fraud.
The risk of management override of controls was also considered an area of potential misstatement due to fraud. Audit procedures performed included testing of manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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 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, for our audit work, for this report, or for the opinions we have formed.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Real Care Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is Learning for Life, Herbert Street, Consett, County Durham, DH8 6AE.
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 freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
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.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
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.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
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.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
The average monthly number of employees during the year was:
The remuneration of key management personnel was as follows:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
Use of restricted funds
Social Care Fund - this includes £2,890 for the purchase of virtual reality equipment (Sensory Sound and Vision) and £15,000 funding for a Transition Co-Ordinator.
Education fund - this relates to small amounts of unspent income carried forward into 2024/25
ESFA - Department for Education capital funding for use on the building.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
There were no disclosable related party transactions during the year (2023 - none).