- Elswick Road. 8enwell, Newcastle upon Tyne. NE4 8ED TEL: 0191 2734558. Email. pxserv¢Ce@praxis-servirS.¢o.Uk. RSM UK Tax and Accounting Limited 1 Sl James, Gale Newcastle Upon Tyne NE14AD De8r Sirs INDEPENDENT EXAMINATION OF FINANCIAL STATEMENTS- 31 MARCH 2023 This representation letter is prowded in connection with your indendent examination of the financial slalemenls of Praxis Service for the year ènded 31 Mafch 2023. The financial reporting framework that h8s been applied in the preparation of the flnancial slalemenls Is 8ppIic8ble law and United Kingdom Generally Accepted Accounting Praclice. We confimi that lo the best of our knowledge and belief. and having made aPprOpSle enquiries of other Injslees and offici8ls of the charity..
- the charity Ls elwdible for independent examlnallon and that an audrt Is not required by18W, the charity's goveming document or for another reason. no material breach of trust has taken place in the use of charilable funds in the reportlng period.
- the Iruslees hève ¢onsldered and identified all related p8rlles and transactions wrth such relaled parties and confim all necessary related party disclosures have been m&Je gs required by SORP or FRS 102 induding trustee expenses and Iruslee remuneralion.
- There are no pos1 balance sheet events requiring adiustmenls to be made to the financial statements or disclosure in either the notes lo the financial 5talemenls or in the trustees, report. we have cartsd out an assessment of going concem In 8¢¢or(lance wlth the sp1¢able SORP having consNJeTed the financial circumstances of the charity al the reporting date including the financi81 and non-flnancial risks that we consider are skJnificanl lo the charity remaining a going concern for al lea5112 month5 from the d8te of approval of th8 financial slalemenls, and have explained lo you why we consider the chanty Is a going Goncern.
- that any maten81 uncert8inlies related to events or condrtions th81 cast significanl doubt on the charity's abilrty to continue as 8 going Concem are disclosed in the notes to the financi81 slalemenls. we have assessed what invoices, bills and commitments rna1n oulslanding at the end of the reporting period and confimi that these can be settled as and when they f811 due. We confim) that Ihe above representations are made on the basis of enquiTies of management and staff wflh relevant knowledge and experience (and, where appropriate, of inspection of supporting documentation) suffioienl 10 satisfy ourselves that we can propedy make each of the above fepresenlalions lo you. The contents of this letter were cons¥Jered and approved by the bD8r(l at its meeting on 2810612023. Yours faiihfully Suned on behalf of the board of PraS Service Trustee Date 04107123 Support Service Manager: Paula Gillingham BA Registered Charity Number. 1007319 A company limited by guafanlee reg Cardiff No.. 2281535
Charity Registration No. 1007319
Company Registration No. 02281535 (England and Wales)
PRAXIS SERVICE
REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
PRAXIS SERVICE
LEGAL AND ADMINISTRATIVE INFORMATION
| Director | M Robinson |
|---|---|
| Trustees | S Murthwaite |
| M Robinson | |
| Dr J Moore | |
| K Moore | |
| B McAloon | |
| Secretary | S E L Murthwaite |
| Charity number | 1007319 |
| Company number | 02281535 |
| Registered office | Praxis House |
| Park Close | |
| Newcastle upon Tyne | |
| Tyne and Wear | |
| NE4 6SB | |
| Independent examiner | RSM UK Tax and Accounting Limited |
| Chartered Accountants | |
| 1 St. James' Gate | |
| Newcastle upon Tyne | |
| United Kingdom | |
| NE1 4AD |
PRAXIS SERVICE
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2023
The trustees' present their report and financial statements for the year ended 31 March 2023.
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 Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (as amended for accounting periods commencing from 1 January 2016).
Following the coronavirus (COVID-19) pandemic, we have continued to take practical steps, and implement robust measures, to ensure the welfare of our service users, employees, and partners in line with government, public health, and industry guidance. Although there were dramatic changes in service delivery, Praxis continues to provide services throughout the pandemic and has now returned service delivery to normal after the reopening of our main offices and the resuming of our main activities.
Objectives and activities
Praxis Service (Praxis) exists for the benefit of the public through the provision of its services to any member of the public who is homeless and who is referred to Praxis through Newcastle City Council's homeless services. They are likely to have complex needs and include women with dependent children. All the services provided by Praxis are within the aims and objectives as set out in the Memorandum and Articles of Association.
Throughout the review of objectives and activities section of this report, we have identified and evaluated the benefits that individuals gain from accessing our services and maximizing independence through self-directed support.
In shaping our objectives for the year and planning our activities, the trustees have considered the charity commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity (PB2)’.
Objectives:
-
to promote and advance the social welfare and housing needs of people who are financially disadvantaged, suffering or recovering from mental illness, alcoholism, or chemical addictions.
-
to provide advice, treatment, and support through the provision of both community services and the development and management of housing schemes.
-
to provide accommodation for individuals or groups in special housing need, without distinction of sex, sexual orientation, race, political, religious, or other opinions; and to assist Service Users towards Moving On into their own independent accommodation.
Praxis continues to manage two major projects, comprising of six separate properties, within the Newcastle Citywide Supported Accommodation and resettlement support for homeless people contract. All the referrals to these projects are made through the Housing Advice Centre administered by Newcastle City Council. The system of referral of potential service users is computerised through the Gateway system. Both men and women (including women with dependent children), are homeless at the point of referral and come from a range of diverse backgrounds. They have complex needs and if accepted, are allocated a place in one of our two projects.
-
Their needs are assessed at the point of entry to our service and staff offer support, advice and assistance through a Support Plan to help address their need and move towards resettlement in their own tenancies.
-
Service Users are assisted to gain or retain meaningful relationships with their friends and families.
-
Service Users are assisted in their engagement and relationships with important agencies such as Social Services, the Department of Work and Pensions, Probation, Mental Health services and in links with the wider community.
-
Service users are encouraged to participate in a wide range of sport, leisure and work activities.
-
1 -
PRAXIS SERVICE
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2023
Review of the objectives and activities
In 2014, Praxis became part of a Consortium contractual arrangement, led by the Changing Lives organisation and two other partners, Action Foundation and Thirteen Care and Support. This established a new Supporting People Contract with Newcastle City Council which ended in April 2019. Thirteen Care and Support organisation have now withdrawn, and its housing services have been transferred to Changing Lives and the contract was renewed for an additional three years, up to March 2022, then an additional extension of the contracts to October 2024. The Consortium managers meet on a bi-monthly basis to review progress of the Contract and its constituent parts, and to consider new developments. Praxis' staff continue to benefit from shared training opportunities and assistance in the computerisation of records using the Inform system. This means that all support work of clients is centrally recorded and achieves a range of important purposes and outcomes. Praxis is also part of the Newcastle City Council’s Gateway system which allows for potential clients of Praxis Service to be promoted through this system and to help evaluate a range of important outcomes. These include length of stay in Praxis accommodation; move-on arrangements; reasons for leaving including eviction and the tabulation of the number of referrals over time and the number of acceptances and refusals.
Newcastle women and children project
This service continues to provide high quality accommodation for up to eight mothers with their dependent children. All of our families have complex needs and high percentages are involved with statutory services such as Social Service departments. Although some of our families are clearly identified as fleeing domestic violence, many of them do not fall straightforwardly into this category. Many of the women wish to maintain some relationship with their previous partners and Praxis staff work with other agencies to facilitate contact between fathers and their children.
This service specialises in work with the mothers with dependent children who may be involved with Newcastle Social Care and a range of complex situations. This involves a high degree of team working with our partner agencies and the work is intense and demanding. Amongst a range of important outcomes includes the prevention of children being looked after by the LA.
Praxis Service Project
We have two large-terraced houses at Normanton Terrace in the West End of Newcastle and provides high standard accommodation for twelve men and women.
Our third property is based at Praxis House. This property is a large detached modern house standing in its own, well stocked gardens. The property has been extensively renovated and provides very comfortable accommodation for up to seven men and women.
Brighton Grove, recently modernised is also in the West End of Newcastle. This is a large-terraced property for
the occupation of up to six Service Users.
Gloucester Way, Newcastle Women & Children’s project, is our fifth property based in the West End of Newcastle. This is a large-terraced property for the occupation of up to eight Service Users.
Our sixth and newest property is a five bedded terraced house in the West End of Newcastle. This has been updated to a very high standard. All six properties have HMO status through Newcastle City Council.
Achievements and performance
Financial review
The principle funding sources of Praxis are Housing Benefit income received from Newcastle City Council and Supporting People income. The total income from these sources is shown in note 3.
At 31 March 2023, the total unrestricted reserves stood at £1,675,830 (2022: £1,523,682), and restricted reserves at £nil (2022: £nil). Included within unrestricted reserves is a balance of £805,000 (2022: £764,500) which is designated as £750,000 (2022: £750,000) for a future women and children's project premises, and £55,000 (2022: £14,500) for property upgrades.
- 2 -
PRAXIS SERVICE
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2023
Reserves policy
The Support Service Manager has the power to invest in such investments, securities, or property as they see fit subject to any restrictions imposed by law.
The trustees identify that they wish to pursue a policy of holding sufficient cash deposits in our various bank accounts to cover various potential contingencies. This was achieved in the year.
The trustees consider that the target for free reserves should remain in the sum of £100,000. Excluding fixed assets and designated funds, the unrestricted reserves are £348,649 (2022: £230,797). The trustees are reviewing the reserves held in excess of this target to identify areas where Praxis can contribute further to its objectives, including identifying the need for additional staff resources or additional properties for the projects.
The charity participates in the Tyne and Wear Pension Fund and is notified of annual deficit contributions every 3 years. Provisions includes £nil (2022: £nil) in relation to the pension deficit contributions. Following a valuation at 31 March 2023, contribution rates from 1 April 2023 are 27.1%.
Key risks management
During the year the trustees reviewed their risk management plan. As part of the risk management process, the trustees have implemented a risk management strategy, which comprises of:
-
an annual review of the risks, which the Charity may face;
-
detailed action plans to mitigate those risks identified; and
-
the implementation of procedures designed to minimise any potential impact on the Charity should any of those risks materialise.
The risk management focused on the need to maximise returns from their current cash reserves, ensure new developments in the Supporting People requirements are kept abreast of and initiate compliance measures as and when appropriate.
Going concern
The trustees have reviewed the sources of income for Praxis and expect no material change in the levels of incoming resources. The trustees have also reviewed the levels of expenditure incurred by Praxis and expect no material change in the level of outgoing resources. Given the level of funds available, the trustees are confident that they have sufficient funds to ongoing expenditure and other liabilities as they fall due.
Based on the the cash reserves held by Praxis, and the consistency in the monthly management accounts, the trustees are confident that Praxis 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.
- 3 -
PRAXIS SERVICE
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2023
Structure, governance and management
Praxis Service is a charity which was registered with the Charity Commission on 13 January 1992, number 1007319. It is also a private company limited by guarantee and not having share capital, being registered with Companies House on 28 July 1988 under company number 02281535, governed by its Memorandum and Articles of Association.
The director who served the charity during the year and the since the year end was as follows: M Robinson
As well as the director a number of people act as trustees during the year, and these are:
S. Murthwaite
M. Robinson (Chair) Dr J. Moore (appointed 21 April 2022) K. Moore (appointed 21 April 2022) B. McAloon (appointed 21 April 2022)
Trustees can be appointed and/or leave the committee at any point during the year. Praxis advertises in the local press and on the Internet for new potential trustees. New trustees are given clear instruction and information on their range of new responsibilities as well as having the opportunity to attend training courses, particularly those run by Newcastle Council for Voluntary Services.
The staff team is managed by a Support Service Manager, P Gillingham BA and there is an organisational structure which includes two Senior Project Workers, an Administrator, a part-time Bookkeeper, and a team of Project Workers.
The trustees consider key management comprise the charity’s trustees and the service manager who are in charge of directing and controlling, running and operating the charity on a day-to-day basis. All trustees give their time freely and no trustee received remuneration in the year. Details of trustees’ expenses and related party transactions are disclosed in notes 9 and 16 to the accounts.
The pay of the support service manager is reviewed annually and normally increased in accordance with average earnings.
The Trustees' Report was approved by the Board of Trustees.
..............................
M Robinson Director 04/07/23 Dated: .........................
- 4 -
PRAXIS SERVICE
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF PRAXIS SERVICE
I report on the financial statements of the charitable company for the year ended 31 March 2023, which are set out on pages 7 to 20.
Responsibilities and basis of report
As the trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the company 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 your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145 (5)(b) of the 2011 Act.
An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the accounts present a ‘true and fair view’ and my report is limited to those specific matters set out in the independent examiner’s statement.
Independent examiner's statement
Since the company’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 material matters have come to my attention in connection with the examination giving me reasonable cause to believe that in any material respect:
-
(1) accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
-
(2) the accounts do not accord with those records; or
-
(3) the accounts 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 accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and 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 accounts to be reached.
- 5 -
PRAXIS SERVICE
INDEPENDENT EXAMINER'S REPORT (CONTINUED) TO THE TRUSTEES OF PRAXIS SERVICE
Lucy Robson Signed: Name: Lucy Robson Name of applicable listed body: ICAEW Relevant professional qualification or membership of professional body: FCA
On behalf of RSM UK Tax and Accounting Limited
Chartered Accountants 1 St. James' Gate Newcastle upon Tyne United Kingdom NE1 4AD
04/07/23 .........................
- 6 -
PRAXIS SERVICE
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023
| Unrestricted Restricted funds funds Notes £ £ Income from: Donations and legacies 2 2,069 - Charitable activities 3 730,785 - Investments 4 1,394 - Total income 734,248 - Expenditure on: Charitable activities 5 582,100 - Total resources expended 582,100 - Net income for the year and net movement in funds 152,148 - Total funds brought forward 1,523,682 - Total funds carried forward 1,675,830 - |
Total 2023 £ 2,069 730,785 1,394 734,248 582,100 582,100 152,148 1,523,682 1,675,830 |
Total 2022 £ 242 674,679 120 |
|---|---|---|
| 675,041 | ||
| 445,316 | ||
| 445,316 | ||
| 229,725 1,293,957 |
||
| 1,523,682 |
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.
- 7 -
Company Registration No. 02281535
PRAXIS SERVICE
STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2023
| Notes Fixed assets Tangible assets 10 Current assets Debtors 11 Cash at bank and in hand Creditors: amounts falling due within one year 12 Net current assets Total assets less current liabilities Funds General unrestricted funds 14 Designated fund 14 |
2023 £ £ 522,181 59,075 1,109,116 1,168,191 (14,542) 1,153,649 1,675,830 870,830 805,000 1,675,830 1,675,830 |
2022 £ £ 528,385 40,536 969,891 1,010,427 (15,130) 995,297 1,523,682 759,182 764,500 1,523,682 1,523,682 |
2022 £ £ 528,385 40,536 969,891 1,010,427 (15,130) 995,297 1,523,682 759,182 764,500 1,523,682 1,523,682 |
|---|---|---|---|
| 1,523,682 | |||
| 1,523,682 | |||
| 1,523,682 |
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 2023. No member of the company has deposited a notice, pursuant to section 476, requiring an audit of these financial statements.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
04/07/23
The financial statements were approved by the Director on .........................
..............................
M Robinson Director
- 8 -
PRAXIS SERVICE
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023
| Notes Cash flows from operating activities Cash generated from operations 17 Investing activities Purchase of tangible fixed assets Interest received Net cash used in investing activities Net cash used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year |
2023 £ (17,976) 1,394 |
£ 155,807 (16,582) - 139,225 969,891 1,109,116 |
2022 £ (15,450) 120 |
£ 235,077 (15,330) - 219,747 750,144 969,891 |
|---|---|---|---|---|
- 9 -
PRAXIS SERVICE
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
1 Accounting policies
Charity information
Praxis Service is a private company limited by guarantee incorporated in England and Wales. The registered office is Praxis House, Park Close, Newcastle upon Tyne, Tyne and Wear, NE4 6SB.
1.1 Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for charities applying FRS 102, the Companies Act 2006 and UK Generally Accepted Accounting Practice as it applies from 1 January 2015. 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 charitable company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
Financial Reporting Standard 102 requires, if appropriate, the charity’s financial statements are prepared on the going concern basis, which means that the charity is able to operate for the foreseeable future on the basis of known and reasonable projected resources.
The trustees have reviewed the sources of income for Praxis and expect no material change in the levels of incoming resources. The trustees have also reviewed the levels of expenditure incurred by Praxis and expect no material change in the level of outgoing resources. Given the level of funds available, the trustees are confident that they have sufficient funds to ongoing expenditure and other liabilities as they fall due.
Given the cash reserves held by Praxis, and the consistency in the monthly management accounts, the trustees are confident that Praxis 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 director in furtherance of their charitable objectives unless the funds have been designated for other purposes.
Designated funds are unrestricted funds that have been earmarked by the trustees for a specific purpose.
Restricted funds are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
1.4 Incoming resources
Income is recognised in the period in which the charitable company has entitlement to the funds, any conditions attached to the income have been met, it is probable that the income will be received and the amount can be measured reliably.
Donations and legacy income are included in the Statement of Financial Activities when receivable. In accordance with the Charities SORP (FRS102) general volunteer time is not recognised.
Income from charitable activities is recognised in the Statement of Financial Activities as received.
- 10 -
PRAXIS SERVICE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
1 Accounting policies (Continued)
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
1.5 Resources expended
Expenditure is all considered as expenditure on charitable activities. Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party; it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Resources expended are included in the Statement of Financial Activities on an accruals basis, inclusive of VAT. They include:
-
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of any indirect nature necessary to support them.
-
Governance costs include those costs associated with meeting the constitutional and the statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity.
1.6 Tangible fixed assets
Assets worth £250 or more are capitalised upon acquistion.
Tangible fixed assets are initially measured at cost and subsequently measured at cost, 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:
Freehold properties 2% straight line Plant and equipment 20% reducing balance
Subsequent costs, including replacement parts are capitalised only when it is probable that such costs will generate future economic benefits. Any replaced parts or remaining carrying amounts are then derecognised. All other costs of repairs and maintenance are charged to profit or loss as incurred.
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 net income/(expenditure) for the year.
1.7 Cash and cash equivalents
Cash and cash equivalents include cash in hand and deposits held at call with banks.
1.8 Financial instruments
The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charitable company's balance sheet when the charitable company 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.
- 11 -
PRAXIS SERVICE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
1 Accounting policies (Continued)
Basic financial assets
Basic financial assets, which include trade, other 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 other creditors, 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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
1.9 Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless these costs are required to be capitalised as an intangible or tangible fixed asset.
Certain employees are entitled to carry forward unused holiday entitlement at the reporting date. The cost of any unused entitlement is recognised in the period in which the employee’s services are required.
1.10 Retirement benefits
The charity participates in a multi-employer pension scheme for its employees. For the scheme, contributions are recognised as expenditure in the period to which they relate as there is insufficient information available to use defined benefit accounting.
Where applicable, a liability is recognised for contributions arising from an agreement with the multi-employer plan that determines how the charity will fund a deficit. Contributions are discounted, at a rate according to FRS102, when they are not expected to be settled wholly within 12 months of the period end. The unwinding of the discount rate is recognised as a finance cost.
1.11 Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
2 Donations and legacies
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Donations and gifts | 2,069 | 242 |
- 12 -
PRAXIS SERVICE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
| 3 Charitable activities Rents and supporting people income 4 Investments Bank interest receivable 5 Charitable activities Staff costs Share of support costs (see note 6) Share of governance costs (see note 6) Analysis by fund Unrestricted funds |
2023 £ 730,785 2023 £ 1,394 2023 £ 261,444 301,618 19,038 582,100 582,100 |
2022 £ 674,679 |
|---|---|---|
| 2022 £ 120 |
||
| 2022 £ 255,375 177,308 12,633 |
||
| 445,316 | ||
| 445,316 |
- 13 -
PRAXIS SERVICE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
| 6 Support costs Depreciation Office costs Printing, postage and stationery Outings Travel and subsistence Rehabilitation and welfare Food and catering Premises costs Repairs and renewals Head office rent Other costs Legal and professional Accountancy fees Independent examination fees Analysed between Charitable activities 7 Net movement in funds Net movement in funds is stated after charging: Depreciation of owned tangible fixed assets Independent examination fees Accountancy fees |
Support costs Governance costs 2023 £ £ £ 24,180 - 24,180 12,007 - 12,007 3,556 - 3,556 13,674 - 13,674 3,945 - 3,945 24,279 - 24,279 3,479 - 3,479 76,810 - 76,810 121,691 - 121,691 15,600 - 15,600 2,397 - 2,397 - 5,407 5,407 - 9,077 9,077 - 4,554 4,554 301,618 19,038 320,656 301,618 19,038 320,656 2023 £ 24,180 1,200 3,354 |
2022 £ 19,182 7,452 2,169 7,128 4,183 2,296 3,514 52,753 59,493 15,600 3,538 1,593 8,040 3,000 |
|---|---|---|
| 189,941 | ||
| 189,941 | ||
| 2022 £ 19,182 1,800 1,200 |
8 Employees Number of employees
The average monthly number employees during the year was:
| Number of employees The average monthly number employees during |
the year was: | |
|---|---|---|
| 2023 | 2022 | |
| Number | Number | |
| Employees | 6 | 8 |
- 14 -
PRAXIS SERVICE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
| 8 Employees (Continued) Employment costs Wages and salaries Social security costs Other pension costs |
2023 £ 220,698 18,870 21,876 261,444 |
2022 £ 212,542 17,685 25,148 |
|---|---|---|
| 255,375 |
The number of trustee's to whom retirement benefits are accruing under money purchase schemes was nil (2022: nil).
One employee earned in excess of £60,000 during the year (2022: 1).
Staff salaries (including pension)
| 2023 | 2022 | ||||
|---|---|---|---|---|---|
| £60,001-70,000 | : | 1 | 1 |
No expenses were reimbursed to the trustees during the year (2022: nil).
During the year the charity paid trustee’s indemnity insurance of £nil (2022: £nil).
9 Director and trustees
Key management comprises the trustees and the general manager. None of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the current or previous year.
The total remuneration of key management was £92,534 (2022: £89,758).
- 15 -
PRAXIS SERVICE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
| 10 Tangible fixed assets Freehold properties Plant and equipment £ £ Cost At 1 April 2022 645,067 165,796 Additions - 17,976 At 31 March 2023 645,067 183,772 Depreciation and impairment At 1 April 2022 157,363 125,115 Depreciation charged in the year 12,901 11,279 At 31 March 2023 170,264 136,394 Carrying amount At 31 March 2023 474,803 47,378 At 31 March 2022 487,704 40,681 11 Debtors 2023 Amounts falling due within one year: £ Trade debtors 20,361 Prepayments and accrued income 38,714 59,075 12 Creditors: amounts falling due within one year 2023 £ Other taxation and social security 5,894 Other creditors 2,294 Accruals and deferred income 6,354 14,542 |
Total £ 810,863 17,976 |
|---|---|
| 828,839 | |
| 282,478 24,180 |
|
| 306,658 | |
| 522,181 | |
| 528,385 | |
| 2022 £ 28,854 11,682 |
|
| 40,536 | |
| 2022 £ 6,138 4,192 4,800 |
|
| 15,130 |
- 16 -
PRAXIS SERVICE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
13 Retirement benefit schemes
The charity participates in a multi-employer pension plan, being the Tyne & Wear Superannuation Fund Scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The contributions payable by the charity charged to income and expenditure amounted to £21,876 (2022: £25,148).
The pension fund is run as a multi-employer scheme and as such it is not possible for the assets and liabilities of the fund to be identified separately. At as 31 March 2023, the Tyne and Wear Pension Fund was valued. Due to deficit funding the required employer's contribution rate from 1 April 2023 is 27.1%.
As at the balance sheet date, there were 1 (2022: 1) active members of the fund employed by the charity.
The current deficit funding is in place until March 2026 when the next valuation is due.
- 17 -
PRAXIS SERVICE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
14 Analysis of charitable funds
| Movement in funds Balance at 1 April 2022 Incoming resources Resources expended £ £ £ Unrestricted funds General 759,182 734,248 (582,100) Designated 764,500 - - 1,523,682 734,248 (582,100) Restricted funds - - - 1,523,682 734,248 (582,100) Movement in funds Balance at 1 April 2021 Incoming resources Resources expended £ £ £ Unrestricted funds General 1,034,457 675,041 (445,316) Designated 259,500 - - 1,293,957 675,041 (445,316) Restricted funds - - - 1,293,957 675,041 (445,316) |
Transfers Balance at 31 March 2023 £ £ (40,500) 870,830 40,500 805,000 - 1,675,830 - - - 1,675,830 Transfers Balance at 31 March 2022 £ £ (505,000) 759,182 505,000 764,500 - 1,523,682 - - - 1,523,682 |
|---|---|
Unrestricted funds
General funds are ‘free reserves’ after allowing for designated funds.
From unrestricted funds, the trustees have made the following designations:
-
an amount of £750,000 to purchase and refurbish two additional properties to expand the Newcastle women and children project; and
-
an amount of £55,000 has been allocated for property upgrades and repairs. These will be completed before March 2024.
-
18 -
PRAXIS SERVICE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
15 Analysis of net assets between funds
| Unrestricted | Designated | Restricted | Total funds | |
|---|---|---|---|---|
| funds | funds | funds | ||
| £ | £ | £ | £ | |
| Fund balances at 31 March 2023 are | ||||
| represented by: | ||||
| Tangible assets | 522,181 | - | - | 522,181 |
| Current assets | 363,191 | 805,000 | - | 1,168,191 |
| Current liabilities | (14,542) | - | - | (14,542) |
| 870,830 | 805,000 | - | 1,675,830 | |
| Unrestricted | Designated | Restricted | Total funds | |
| funds | funds | funds | ||
| £ | £ | £ | £ | |
| Fund balances at 31 March 2022 are | ||||
| represented by: | ||||
| Tangible assets | 528,385 | - | - | 528,385 |
| Current assets | 245,927 | 764,500 | - | 1,010,427 |
| Current liabilities | (15,130) | - | - | (15,130) |
| Provisions | - | - | - | - |
| 759,182 | 764,500 | - | 1,523,682 |
16 Related party transactions
There were no disclosable related party transactions during the year (2022: none).
| 17 Cash generated from operations Surplus for the year Adjustments for: Investment income recognised in statement of financial activities Depreciation and impairment of tangible fixed assets Movements in working capital: (Increase) in debtors (Decrease)/increase in creditors Cash generated from operations |
2023 £ 152,148 (1,394) 24,180 (18,539) (588) 155,807 |
2022 £ 229,725 (120) 19,182 (15,753) 2,043 235,077 |
|---|---|---|
18 Legal status of the charity
The charity is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.
- 19 -
PRAXIS SERVICE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
19 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 Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
- 20 -