Charity registration number 1113970
Company registration number 05296681 (England and Wales)
REAL CARE LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
REAL CARE LTD
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
A Timothy - Chair
R Brown
(Appointed 18 October 2024)
T Devereux
(Appointed 18 October 2024)
M Barker
D Harrop
L McNally
G Stringer
Secretary
G Waugh
Senior management
M Matthewson
Chief operating officer
Charity number
1113970
Company number
05296681
Registered office
Learning for Life
Herbert Street
Consett
County Durham
DH8 6AE
Auditor
Robson Laidler Accountants Limited
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
England
NE2 1TJ
REAL CARE LTD
CONTENTS
Page
Trustees' report
1 - 4
Independent auditor's report
5 - 7
Statement of financial activities
8 - 9
Balance sheet
10
Statement of cash flows
11
Notes to the financial statements
12 - 21
REAL CARE LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -

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).

Objectives and activities

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:

 

 

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 and performance

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.

REAL CARE LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
Financial review

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.

Going concern

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.

Reserves policy

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.

Plans for future periods

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.

REAL CARE LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -

The Board aims to:

 

1. Continuously Improve Provision Quality:

 

2. Ensure Financial Viability and Sustainability:

 

3. Build an Effective Provision Improvement Team:

 

4. Ensure Effective Leadership and Governance:

Structure, governance and management

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.

REAL CARE LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 4 -

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:

A Timothy - Chair
R Brown
(Appointed 18 October 2024)
T Devereux
(Appointed 18 October 2024)
M Barker
D Harrop
L McNally
G Stringer
V Armstrong
(Resigned 14 November 2023)
C Rogers
(Resigned 5 November 2024)
Statement of trustees' responsibilities

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.

Auditor

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.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

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

A Timothy - Chair
Trustee
19 February 2025
REAL CARE LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF REAL CARE LTD
- 5 -

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:

-

give a true and fair view of the state of the charitable company's affairs as at 31 August 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, 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.

REAL CARE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF REAL CARE LTD
- 6 -
Matters on which we are required to report by exception

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

-
certain disclosures of trustees' remuneration specified by law are not made; 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.

Responsibilities of trustees

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.

Auditor's responsibilities for the audit of the financial statements

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;

 

 

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.

REAL CARE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF REAL CARE LTD
- 7 -

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.

Nicholas Cunningham MSc BSc ACCA (Senior Statutory Auditor)
for and on behalf of Robson Laidler Accountants Limited
4 March 2025
Statutory Auditor
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
England
NE2 1TJ
REAL CARE LTD
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 8 -
Current financial year
Unrestricted
Restricted
Total
Total
funds
funds
2024
2024
2024
2023
Notes
£
£
£
£
Income from:
Donations and legacies
3
36,087
38,775
74,862
82,493
Charitable activities
4
1,338,322
-
1,338,322
1,200,541
Other trading activities
25,069
-
25,069
14,027
Investments
3,739
-
3,739
366
Total income
1,403,217
38,775
1,441,992
1,297,427
Expenditure on:
Charitable activities
5
1,299,720
17,547
1,317,267
1,149,437
Total expenditure
1,299,720
17,547
1,317,267
1,149,437
Net income
103,497
21,228
124,725
147,990
Transfers between funds
(16,728)
16,728
-
-
Net movement in funds
7
86,769
37,956
124,725
147,990
Reconciliation of funds:
Fund balances at 1 September 2023
805,869
3,160
809,029
661,039
Fund balances at 31 August 2024
892,638
41,116
933,754
809,029

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
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 9 -
Prior financial year
Unrestricted
Restricted
Total
funds
funds
2023
2023
2023
Notes
£
£
£
Income from:
Donations and legacies
3
34,232
48,261
82,493
Charitable activities
4
1,200,541
-
1,200,541
Other trading activities
14,027
-
14,027
Investments
366
-
366
Total income
1,249,166
48,261
1,297,427
Expenditure on:
Charitable activities
5
1,124,380
25,057
1,149,437
Total expenditure
1,124,380
25,057
1,149,437
Net income
124,786
23,204
147,990
Transfers between funds
20,544
(20,544)
-
Net movement in funds
7
145,330
2,660
147,990
Reconciliation of funds:
Fund balances at 1 September 2022
660,539
500
661,039
Fund balances at 31 August 2023
805,869
3,160
809,029
REAL CARE LTD
BALANCE SHEET
AS AT
31 AUGUST 2024
31 August 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
324,948
365,844
Current assets
Debtors
12
146,441
79,897
Cash at bank and in hand
637,317
509,655
783,758
589,552
Creditors: amounts falling due within one year
13
(174,952)
(146,367)
Net current assets
608,806
443,185
Total assets less current liabilities
933,754
809,029
The funds of the charity
Restricted income funds
15
41,116
3,160
Unrestricted funds
16
892,638
805,869
933,754
809,029
The financial statements were approved by the trustees on 19 February 2025
A Timothy  - Chair
Trustee
Company registration number 05296681 (England and Wales)
REAL CARE LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
152,256
95,795
Investing activities
Investment income received
3,739
366
Net cash generated from investing activities
3,739
366
Financing activities
Repayment of bank loans
(28,333)
(10,000)
Net cash used in financing activities
(28,333)
(10,000)
Net increase in cash and cash equivalents
127,662
86,161
Cash and cash equivalents at beginning of year
509,655
423,494
Cash and cash equivalents at end of year
637,317
509,655
REAL CARE LTD
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 12 -
1
Accounting policies
Charity information

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.

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 freehold properties and to include investment properties and 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 or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4
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.

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.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
REAL CARE LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 13 -
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
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
20% on cost and lease term
Fixtures and fittings
20% reducing balance
Computers
15% reducing balance
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7
Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8
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.

1.9
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.

REAL CARE LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 14 -
2
Critical accounting estimates and judgements

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

 

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

3
Income from donations and legacies
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2024
2024
2024
2023
2023
2023
£
£
£
£
£
£
Donations and gifts
9,320
-
9,320
10,482
14,000
24,482
Grants
26,767
38,775
65,542
23,750
34,261
58,011
36,087
38,775
74,862
34,232
48,261
82,493
Grants
Lloyds Bank
24,375
-
24,375
23,750
-
23,750
William Trust
-
-
-
-
10,000
10,000
Sensory Sound and Vision
-
-
-
-
9,986
9,986
Make Your Mark Fund
-
-
-
-
4,000
4,000
Volunteer Support
-
-
-
-
3,116
3,116
Outdoor Farm
-
-
-
-
2,965
2,965
Jubilee Fund
-
-
-
-
2,733
2,733
Other
2,392
2,301
4,693
-
1,461
1,461
Department for Education
-
21,474
21,474
-
-
-
Charities Trust
-
15,000
15,000
-
-
-
26,767
38,775
65,542
23,750
34,261
58,011
REAL CARE LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 15 -
4
Income from charitable activities
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Charitable activities
Education
462,604
643,280
Social Care
875,718
557,261
1,338,322
1,200,541
5
Expenditure on charitable activities
Charitable activities
Charitable activities
2024
2023
£
£
Direct costs
Staff costs
890,404
856,272
Depreciation and impairment
29,273
23,278
Rent and rates
35,042
43,868
Light and heat
12,092
7,959
Training
9,569
4,284
Telephone
4,437
3,959
Postage and stationery
6,888
8,542
Transport
7,056
6,473
Repairs and maintenance
41,846
34,966
Student activities
144,668
48,358
Subscriptions
7,824
4,948
Insurance
7,205
11,749
Sundry expenses
16,185
5,267
Bank interest and charges
1,024
1,439
1,213,513
1,061,362
Share of support and governance costs (see note 6)
Support
96,549
83,575
Governance
7,205
4,500
1,317,267
1,149,437
Analysis by fund
Unrestricted funds
1,299,720
1,124,380
Restricted funds
17,547
25,057
1,317,267
1,149,437
REAL CARE LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 16 -
6
Support costs allocated to activities
2024
2023
£
£
Staff costs
55,278
53,027
Depreciation
11,623
7,759
Rent and rates
17,276
14,367
Light and heat
5,955
2,653
Professional fees
6,417
5,769
Governance costs
7,205
4,500
103,754
88,075
Analysed between:
Charitable activities
103,754
88,075
7
Net movement in funds
2024
2023
£
£
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements
7,205
4,500
Depreciation of owned tangible fixed assets
40,896
31,037
8
Trustees
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
Employees
53
51
Employment costs
2024
2023
£
£
Wages and salaries
877,859
857,973
Social security costs
55,095
40,412
Other pension costs
12,728
10,914
945,682
909,299
REAL CARE LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
9
Employees
(Continued)
- 17 -
The number of employees whose annual remuneration was more than £60,000 is as follows:
2024
2023
Number
Number
£60,001 to £70,000
1
-
Remuneration of key management personnel

The remuneration of key management personnel was as follows:

2024
2023
£
£
Aggregate compensation
235,010
212,107
10
Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

11
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 September 2023
410,720
88,172
38,411
19,820
557,123
At 31 August 2024
410,720
88,172
38,411
19,820
557,123
Depreciation and impairment
At 1 September 2023
97,190
65,668
21,814
6,607
191,279
Depreciation charged in the year
22,539
6,734
6,668
4,955
40,896
At 31 August 2024
119,729
72,402
28,482
11,562
232,175
Carrying amount
At 31 August 2024
290,991
15,770
9,929
8,258
324,948
At 31 August 2023
313,530
22,504
16,597
13,213
365,844

 

REAL CARE LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 18 -
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
144,897
58,429
Other debtors
1,544
21,468
146,441
79,897
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
-
28,333
Other taxation and social security
13,838
11,331
Trade creditors
29,393
22,418
Other creditors
131,721
84,285
174,952
146,367
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
12,728
10,914

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.

15
Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1 September 2023
Incoming resources
Resources expended
Transfers
At 31 August 2024
£
£
£
£
£
Social Care Fund
-
16,100
(13,247)
16,037
18,890
Education Fund
3,160
1,200
(4,300)
691
751
ESFA
-
21,475
-
-
21,475
3,160
38,775
(17,547)
16,728
41,116
REAL CARE LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
15
Restricted funds
(Continued)
- 19 -
Previous year:
At 1 September 2022
Incoming resources
Resources expended
Transfers
At 31 August 2023
£
£
£
£
£
Social Care Fund
500
44,261
(24,217)
(20,544)
-
Education Fund
-
4,000
(840)
-
3,160
500
48,261
25,057
(20,544)
3,160

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.

 

16
Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 September 2023
Incoming resources
Resources expended
Transfers
At 31 August 2024
£
£
£
£
£
General funds
805,869
1,403,217
(1,299,720)
(16,728)
892,638
Previous year:
At 1 September 2022
Incoming resources
Resources expended
Transfers
At 31 August 2023
£
£
£
£
£
General funds
660,539
1,249,166
(1,124,380)
20,544
805,869
REAL CARE LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 20 -
17
Analysis of net assets between funds
Unrestricted
Restricted
Total
funds
funds
2024
2024
2024
£
£
£
At 31 August 2024:
Tangible assets
324,948
-
324,948
Current assets/(liabilities)
567,690
41,116
608,806
892,638
41,116
933,754
Unrestricted
Restricted
Total
funds
funds
2023
2023
2023
£
£
£
At 31 August 2023:
Tangible assets
365,844
-
365,844
Current assets/(liabilities)
440,025
3,160
443,185
805,869
3,160
809,029
18
Related party transactions

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

19
Cash generated from operations
2024
2023
£
£
Surplus for the year
124,725
147,990
Adjustments for:
Investment income recognised in statement of financial activities
(3,739)
(366)
Depreciation and impairment of tangible fixed assets
40,896
31,037
Movements in working capital:
(Increase) in debtors
(66,544)
(29,539)
Increase/(decrease) in creditors
56,918
(53,327)
Cash generated from operations
152,256
95,795
REAL CARE LTD
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -
20
Analysis of changes in net funds
At 1 September 2023
Cash flows
At 31 August 2024
£
£
£
Cash at bank and in hand
509,655
127,662
637,317
Loans falling due within one year
(28,333)
28,333
-
481,322
155,995
637,317
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