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2021-03-31-accounts

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

Registered number: 02592100 Charity number: 1007918

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the Company, its Trustees and advisers 1 - 2
Trustees' report 3 - 14
Independent auditors' report on the financial statements 15 - 18
Consolidated statement of financial activities 19
Consolidated balance sheet 20 - 21
Company balance sheet 22 - 23
Consolidated statement of cash flows 24
Notes to the financial statements 25 - 53

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021

Trustees

Mr D L Robson, Chair Mr M Charlton, Vice Chair Mr M J Cuthbertson, Vice Chair Mrs C A Donnelly Dr C A Ferguson Mr D O'Mahoney Mr J D Owen Mrs D Pearce Cllr J Perry (resigned 25 May 2021) Ms A Siddall Ms D Turton Mr A Whittaker Mr S Brand (appointed 19 August 2021) Mr A Thurston (appointed 23 September 2021) Councillor A Strike (appointed 23 September 2021)

Company registered number

02592100

Charity registered number

1007918

Registered office

The Eco Centre Windmill Way Hebburn Tyne and Wear NE31 1SR

Company secretary

Mr D L Robson

Chief executive officer

Mr A Watts

Independent auditors

Ryecroft Glenton Chartered Accountants & Statutory Auditor 32 Portland Terrace Newcastle upon Tyne NE2 1QP

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DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Bankers

Royal Bank of Scotland 31 Grey Street Newcastle upon Tyne NE1 6ES

Solicitors

PGS Law 10 Coronation Street South Shields Tyne and Wear NE33 1AZ

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DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their annual report together with the audited financial statements of the Group and the Charitable Company, Groundwork South and North Tyneside Limited (the Charitable Company and the Group) for the year 1 April 2020 to 31 March 2021. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the group and the Company qualify as small under section 383 of the Companies Act 2006, the Group strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

I NTRODUCTION

The following information about the financial year 2020/21 is presented in the format required by The Charity Commission.

Groundwork’s vision is of a society made up of sustainable communities which are vibrant, healthy and safe, which value the local and global environment and where individuals and enterprise prosper.

Groundwork’s purpose is to build sustainable communities through joint action.

The consolidated accounts incorporate both Windmill and TEN as both are now wholly owned by the Groundwork Trust. Groundwork has delivered services through Windmill for a number of years as these further our charitable objects. In addition, we integrated TEN into the Groundwork family in 2018 to enable us to further deliver our charitable objects around Supporting Long Term Unemployed and Supporting Young People. The integration has been a huge success for both parties and we continue to investigate new opportunities around the group structure.

Objectives and activities

Policies and objectives

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

The governing objects of the Charitable Company are:

  1. To promote the conservation, protection and improvement of the physical and natural environment anywhere within the local Government boundaries of the Metropolitan Boroughs of South Tyneside and North Tyneside.

  2. To provide facilities in the interests of social welfare for recreation and leisure time occupation with the objective of improving the conditions of life for those living in or working in or resorting in the Metropolitan Boroughs of South Tyneside and North Tyneside.

  3. To advance public education in environmental matters and of the ways of better conserving, protecting and improving the same where so ever.

4 To promote for the public benefit, urban or rural regeneration in areas of social and economic deprivation within the Metropolitan Boroughs of South Tyneside and North Tyneside by all or any of the following means:

(a) The relief of poverty in such ways as may be thought fit;

(b) The relief of unemployment in such ways as may be thought fit including assistance to find employment;

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DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Objectives and activities (continued)

(c) Such other means which may from time to time be determined subject to the prior written consent of the Charity Commissioners for England and Wales.

  1. To provide facilities in the interests of social welfare for recreational, cultural and leisure time occupation with the objective of improving the conditions of life for those living in or working in or resorting in the Metropolitan Boroughs of South Tyneside and North Tyneside through:

(a) The operation of leisure, cultural and heritage sites, venues or projects;

(b) Holding or owning a historic or cultural collection;

  1. To promote sustainable development for the benefit of the public by:

(a) preservation, conservation and the protection of the environment and the prudent use of resources,

(b) the relief of poverty and the improvement of the conditions of life in socially and economically disadvantaged communities;

(c) the promotion of sustainable means of achieving economic and social growth and regeneration.

  1. To advance the education of the public in subject relating to sustainable development and the protection, enhancement and rehabilitation of the environment and to promote study and research in such subjects provided that the useful results of such study are disseminated to the public at large.

  2. To promote the efficiencies and the effectiveness of the charities in direct furtherance of their objects (or any one of them) by the provision of the information, advice and assistance in the establishment, administration and management of such charities including assistance of any types in connection with raising and distribution of funds.

  3. To promote the efficiencies and the effectiveness of the Voluntary Sector for the benefit of the public by the provision of information, support and advice to local community groups.

Activities undertaken to achieve objectives

To achieve the above objects, the Charitable Company uses the following six major areas of work to maximise the impact to the communities it serves:

Working with communities to build stronger neighbourhoods. Working to realise the potential of young people. Through education, promoting learning, citizenship and sustainability. Working to reconnect people with places. Working to provide training for employment and stimulating enterprise. Working to help businesses succeed.

In addition to the above Groundwork delivers three cross cutting themes:

We promote health and well-being by providing the facilities and support to help people become more physically active and make healthier lifestyle choices.

We work closely with housing organisations to plan neighbourhood wide improvements, raise the quality of the housing stock and engage communities to promote greater cohesion.

We promote sustainability and combating climate change by encouraging adults and children to change their behaviour.

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DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Objectives and activities (continued)

Volunteers

A continued support mechanism to the Charitable Company are volunteers both corporate and local community who provide invaluable support to local projects and supporting local communities. Over the past few years, the Charitable Company has developed its corporate volunteering model with the support of SAGE, during 2020/21 and the impact of Covid-19, this engagement was undertaken on-line with eco challenges and staff engagement, it’s hoped that face to face volunteering will recommence in late 2021.

The Charitable Company has a core of project volunteers who provide support and dedication on a weekly basis to support community projects or local sites such as Jarrow Hall and West Boldon Lodge. Last year, again due the impact of Covid-19, the volunteering opportunities were reduced, however, thanks to the dedication of our volunteers and additional controls they provided over 7500 volunteering hours to support our vision of changing places, changing lives which equates in total to over £45k in volunteer time.

Achievements and performance

Key performance indicators

The Charitable Trust ensures that it manages the challenging operating environment due to the current economic climate; the Trust continues to split the annual Key Performance Indicator’s (KPIs) into three business priority areas, finance, development and quality which form the basis of sub committees’ of the main Board. The priority areas will form the basis for our business model for the forthcoming year.

Resources Committee

This priority will concentrate on financial and business management through short term performance management, cost efficiencies and maintaining quality standards to ensure that we deliver quality services within budget and timescales.

Through the performance management framework, the Trust will review the following areas on a regular basis and implement the necessary action plans.

Business Development Committee

This priority will focus on business development to ensure the Trust maximises business opportunities in-line with our 5 year strategy, whilst responding to emerging markets within the private and public sector. The management team will develop a framework to monitor progress against the below areas:

During the year, the Charitable Company created a joint Strategic Development Committee with our neighbouring Federation Charitable Company, Groundwork North East and Cumbria. The new Committee also includes representatives from TEN North East Charitable Company.

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DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

This new framework ensures a regional approach to business development, building on knowledge and avoiding duplication.

Compliance and Quality Committee

This priority will focus on the development of our quality and standards to enhance our quality delivery and ensure compliance with quality standards / accreditations. The management team review performance against the below areas:

During the year, the Charitable Company created a joint Compliance Development Committee with our neighbouring Federation Charitable Company, Groundwork North East and Cumbria. The new Committee also includes representatives from TEN North East Charitable Company.

This new framework ensures a regional approach to compliance, building on expertise and avoiding duplication.

Route 2 Work Governors

To oversee the quality, compliance and learning standards at our Route 2 Work College, the Charitable Company has established a new Governors Committee. The role of the committee is to support and challenges the quality of the outcomes, achievements, personal development and quality improvement plan. The Committee provide the full Board with a quarterly update on progress.

Jarrow Hall Managing Committee

To oversee the implementation and monitoring of the Masterplan, the Charitable Company has created a Jarrow Hall Managing Committee. The role of the committee is to support the outcomes and actions of the Masterplan whilst overseeing the collection management of the Bede Museum. The Committee provide the full Board with a regular progress report.

Review of activities

Operational Performance

In 2020/21 the Charitable Company was significantly impacted by the Covid-19 restrictions but through the support of funders, Government support packages and the commitment of the team, the financial performance in 2020/21 was very stable. Through the support mechanism put in place by Government, Funders and Partners, the Charitable Company was able to access significant new funds to support our work within our communities which were needed more than ever.

Where services were unable to be delivered, the Charitable Company was able to utilise the furlough scheme to support those staff, as of the 1st April, the Charitable Company had very few staff being supported by the furlough scheme.

Despite, the impact and challenges of Covid-19, the Charitable Company integrated a number of new operating systems and controls that enable our projects and services to operate in a very controlled and safe environment. Through these controls and public re-assurance, our income during the lockdown was in-line with business plan targets.

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DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

To support staff and our projects during 2020/21, the Charitable Company has made significant improvements and operating changes to enable the management of an ever changing activity portfolio effectively and further work has been undertaken on operating systems in 2020 to maximise the benefits of agile working.

During the year, the Charitable Company major partnership assets at One Trinity Green and The Beacon continued to increase occupancy and directly support the charitable aims through business support, training and enterprise. The Charitable Company’s traditional operations remain stable with growth within the majority of the portfolios which has allowed the Charitable Company to manage the financial changes as mentioned within the report.

In addition, the Charitable Company continued to deliver a number of service contracts including the Big Local for Central Jarrow. The service contracts allowed the Charitable Company to deliver quality outcomes through inspiring people and creating greener spaces for people to live, work and play.

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DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

To deliver our objects and aims of TEN, the charity has delivered services and support under the following programmes during the 2020/21 financial year: · Building Better Opportunities in partnership with the Wise Group · Young Carers through external funding from Children in Need, National Lottery, Community Foundation, Police and Crime Commissioner, Tesco – Carrier for Causes, Awards for All, Mind, Rise and local donations.

The Charitable Company would also like to thank the South Tyneside Young Carers CIC for their support during the year, their fundraising has supported enrichment and respite activities for our young carers.

Contribution to Local Communities

Set out below are some of the ways in which our activities have helped the communities we serve:

Creating Better Places

It has been proven beyond doubt that having access to good quality green space – a local park, allotment or play area – improves our health and wellbeing and supports children’s educational and social development. The projects we deliver provide a meaningful opportunity for us to work with local communities to have a say around the quality of their local environment and support practical activities that create enhanced green spaces for people to live, work and play.

Last year, Groundwork: -

Improving People’s Prospects

We believe that a person’s background or circumstances should not hinder their future prospects and we are committed to ensuring that those we support receive the help they need to realise their true potential. A unique approach is designed to benefit both individuals, the local environment and neighbourhoods. We provide opportunities for people to further their education, training and employment prospects by providing grass root solutions.

Last year, Groundwork: -

In addition, TEN delivered a wide range of young and employment outcomes, please refer to TEN website for details.

Promoting Greener Living and Working.

Building sustainable communities involves changing behaviours, through our project we have helped individuals, households and whole organisations think and act differently to conserve natural resources as well as providing practical solutions to help reduce household bills and improve health and wellbeing.

Last year, Groundwork provided: -

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DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

External Challenging Factors Relevant to Achieve Objectives

During the financial year, the main significant external factors that have challenged the Charitable Company during this period was the Covid-19 pandemic, as mentioned above this had a significant impact on operations and staff during the year.

The continued reduction of public sector funding has had an effect on grants provided to the charitable sector. This alongside increased demand on grant funding bodies has resulted in fewer grant applications being funded and therefore the Charitable Company continues to look at self-financing models and the introduction of financial contribution to selected community based services.

In addition to the above challenges, the economic climate has reduced the number of job opportunities for the beneficiaries completing our Employment & Skills programmes which has led to a smaller number than anticipated entering the field of employment. We continue to work with partners to look at new opportunities of embedding further support mechanisms into our employment programmes to provide the best possible support packages to individuals to prepare them for the labour market.

Asset Management

The Charitable Company undertook a detailed asset review of all freehold and leasehold assets held within the fixed assets.

The Trustees remain aware that efforts will continue to be required to cut fixed asset costs and asset reduce overheads and to benefit from economies of scale through potential further development opportunities within the trading subsidiary. The Charitable Company will also continue developing its service delivery utilising our community based assets as service hubs.

Fundraising activities and income generation

The Charitable Company undertook a small number of local fundraising activities during the year, these fundraising activities were undertaken directly by Groundwork staff with the aim of raising funds for bespoke work within our local projects such as Jarrow Hall and West Boldon Lodge, all of the fundraising was undertaken in-accordance to the regulations and advice was sort from local authority partners. During this period, the Charitable Company received no complaints relating to fundraising and all activities were community based fundraising with no door-knocking or unreasonable approaches to local community. The Charitable Company has established a fundraising single central register to monitor local fundraising activities.

Investment policy and performance

The Trustees have the power to invest in such assets as they see fit.

The Charitable Company may need to react quickly to particular needs and therefore has a policy of keeping surplus liquid funds in short term deposits which can be readily accessed.

The Board undertake an annual review of the investment strategy / policy to ensure that funds are utilised and provide the most beneficial return to the Charitable Company, this annual review also informs the reserves policy.

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DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Financial review

Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Charitable Company has adequate resources to continue in operational existence for the foreseeable future. The Charitable Company has accessed a number of grants throughout the year to support its charitable activities as well as accessing government support such as Furlough. The Charitable Company has been able to respond to the challenges of Covid 19 during the year and into 2021 with the majority of charitable activities recommencing in early 2021 leading to a stable operating model and financial performance despite the challenges of Covid-19. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

Reserves policy

The Trustees have reviewed the Charitable Company's reserves requirement in accordance with the guidelines issued by the Charity Commission for England and Wales.

In formulating the policy, the Trustees have taken into account the Charitable Company's expenditure commitments and the sources, reliability and timing of its income flows. In addition, future needs, opportunities, contingencies and risks have been analysed and assessed.

The Trustees agree on an annual basis the agreed working capital requirement for the Charitable Company that enables the organisation to operate in-line with the reserves policy and guidelines.

Principal risks and uncertainties

The Charitable Company produces an annual Risk Register that sets out the principle risks to the organisation and the necessary contract required to manage such risks. The risk registered is managed by the Executive Team with an annual report presented to the Board.

The main risks to the Charitable Company are relationship management of key stakeholder, effective management of health & safety, continued reduction in government funding and management of higher risk activities. Below is a summary of the main areas of risk, for which we have the necessary strategies / risk management plans in place:

Financial risk management objectives and policies

The Charitable Company as part of its annual Business Plan sets out a number of Financial Objectives that are overseen by Resources Committee. These objectives relate to the level of working capital, total funds available, management of higher risk activities and investments. The committee measure performance against these objectives on a quarterly basis with a report presented to the Board of Trustees.

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DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Overview

The Charitable Group's turnover was £1,844,334 with an additional income via Beacon Partnership of £107,338 giving a total income of £1,951,672 compared to £2,148,934 last year.

The Group's net movement in funds was £113,193.

The Group's figures incorporate the results of the Charitable Company’s subsidiary undertakings, Windmill Sustainable Business Solutions Limited and Ten North East Limited. Windmill made a pre tax profit of £1,154 (2020 loss of £2,059) and Ten North East Limited a deficit of £5,367 (2020: deficit of £8,350).

During the financial year the Charitable Company secured contracts, service level agreements and grant funding from many organisations including Newcastle City Council, South Tyneside Metropolitan Borough Council, South Tyneside Public Health, National Lottery Community Fund, Big Local, South Tyneside College, Land Trust, Ward Improvement Fund, National Grid, South Tyneside Homes, Sir James Knott Trust, Barbour Foundation, Ballinger Trust, Tesco, Agility Eco, Freemasons, Community Foundation, LGA Foundation, Museum Development North East, Banks Group and Hadrian Trust.

The Charitable Company wishes to thank the partnership organisations that have supported the Company over the past year.

During the year, the Charitable Company released £204,000, as shown in note 8 . This fund is an exceptional release of funds relating to a historical funding agreement with South Tyneside Council which both parties have agreed to front-load to one-off lump sum due to the level of administration required on the historical agreement.

At the end of the year the Charitable Group's total funds were £2,924,246 (2020: £2,811,053) comprising restricted funds of £198,215 (2020: £250,656) and unrestricted funds of £2,726,031 (2020: £2,560,397).

Held as part of the reserves are Freehold and Leasehold properties valued as fixed assets at £2,331,405. There are no designated or otherwise committed funds. The reserves, after allowing for the above properties and other tangible assets required to operate the Charitable Company was £341,873 (2020: £89,674).

Structure, governance and management

Constitution

The Charitable Company is a charitable company limited by guarantee and was set up by a Memorandum of Association on 15 March 1991. There are three Company Members each of whom have undertaken to contribute an amount not exceeding £1 in the event of winding up. The Members are:

The Federation of Groundwork Trusts South Tyneside Metropolitan Borough Council North East Chamber of Commerce.

The group accounts include both Windmill Sustainable Business Solutions Limited and Ten North East Limited who are wholly owned by Groundwork.

The Charitable Company is constituted under a Memorandum of Association dated 15 March 1991 and is a registered charity number 1007918. The principal object of the Charitable Company is to build sustainable communities through joint action. The Charitable Company's memorandum and articles of association were amended in June 2017 to include cultural and heritage activities.

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DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management (continued)

Methods of appointment or election of Trustees

The Charitable Company and Group is governed by a Board of Trustees comprising of both co-opted and nominated individuals / representatives who are elected and re-elected on a 3 year term under the terms of the Articles of Association.

Any nominated co-opted Trustee must be endorsed by the Board of Trustees before being appointed.

.

Organisational structure and decision-making policies

Groundwork South and North Tyneside is one of a national network of eighteen independent Charitable Trusts, and is part of the Groundwork Federation.

The Groundwork Federation is a national regeneration organisation working with partners to improve the quality of the local environment, the lives of local people and the success of local businesses in those areas in need of investment and support. The Federations support the independent charitable trusts with external funding, development of national programmes, business development, national campaigns and distribution of national policies.

Policies adopted for the induction and training of Trustees

The Charitable Company and Group has a procedure for the induction of new Trustees to ensure that all necessary information and governance procedures are fully understood. The induction also includes tours of the organisations assets and projects to obtain first-hand experience of the range of services.

Pay policy for key management personnel

The Resource Committee of the Board are responsible for the setting remuneration for the organisations staff including the Executive Team. The organisation has a robust annual appraisal process that monitors past performance and sets the forthcoming year’s key performance indicators and contribution to the Business Plan.

Financial risk management

The Trustees have examined the major strategic, business and operational risks which the Group and Charity face and confirm that systems have been established to enable regular reports to be produced so that steps can be taken to lessen these risks. These risks are linked to the above principal risks and uncertainties.

Plans for future periods

The Charitable Company in 2020 adopted the Groundwork Federation strategy that sets out its plans and vision for the future of the Charitable Company, below is a summary of the strategy:

Over the next few years, we will continue to provide services that enable us to deliver our vision of ‘Changing Places and Changing Lives’. We will do this by embedding innovation and sustainability in all we do, maximising impact and outcomes.

Groundwork is a federation of charities mobilising practical community action on poverty and the environment across the UK. We’re passionate about creating a future where: -

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DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Plans for future periods (continued)

We believe that working with local communities to build their resilience is vital in facing up to the challenges of a globalised economy and a changing climate.

Why this Matters:

Our Impact and Change we deliver:

Our work supports people facing multiple challenges – living in isolation or with significant health issues, in communities with few facilities, limited employment prospects and vulnerable to extreme weather events.

Due to the Covid-19 pandemic, the Charitable Company has accessed a number of external emergency grants during 2020/21 to support the organisation and communities through this difficult time, these funds will be committed in-line with the funding agreements, and the Charitable Company will continue to work with partners and stakeholders to access funds to support local communities. The next two years will continue to be impacted by the pandemic but through the new government programmes such as Green Recovery Fund and Plans for Jobs, the Charitable Company has many opportunities to support the local and national recovery priorities.

To support the plans for the future, a number of KPI’s are agreed by the Trustees’ of the Charitable Company on an annual basis. The Charitable Company holds an annual Business Development Session where the Trustees and Executive Team review existing strategic direction and activities and set the future direction of the Charitable Company.

The Charitable Company is looking to expand its charitable operations especially with our communities team linked to wider education services and community events. Further, through the integration of TEN North East into Groundwork, the Charitable Company hopes to expand its training & development and young carers services as well as working across the Groundwork Federation especially through the Groundwork in the North to develop enhanced collaboration and business development.

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DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Members' liability

The Trustees of the Charitable Company guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up.

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Company for the purposes 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 . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Company 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 Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditors

The auditor, Ryecroft Glenton, has indicated his willingness to continue in office. The designated Trustees will propose a motion to be given powers at the meeting to appoint the auditors for the coming year.

Approved by order of the members of the board of Trustees on 30 November 2021 and signed on their behalf by:

Mr M Charlton

Mr D L Robson

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DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

Opinion

We have audited the financial statements of Groundwork South and North Tyneside Limited (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2021 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

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DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' 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.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

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

Page 16

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED (CONTINUED)

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 Auditors' 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 the audit was considered capable of detecting irregularities including fraud

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

We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: -

Page 17

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED (CONTINUED)

To address the risk of fraud through management bias and override of controls, we: -

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which include, but are not limited to: -

There are inherent limitations in our anticipated audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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, and to the charitable company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 Auditors' 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Detlev Anderson (Senior statutory auditor)

for and on behalf of

Ryecroft Glenton

Chartered Accountants & Statutory Auditor 32 Portland Terrace Newcastle upon Tyne NE2 1QP

30 November 2021

Page 18

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

Note
Income from:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investments
7
Other income
8
Total income
Expenditure on:
Raising funds
Charitable activities
9
Other expenditure
Total expenditure
Net (expenditure)/ income
Transfers between funds
20
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Restricted
funds
2021
£
3,803
816,161
-
-
-
819,964
-
1,020,725
-
1,020,725
(200,761)
148,320
(52,441)
250,656
(52,441)
198,215		 Unrestricted
funds
2021
£
256,189
504,445
88,341
62,276
220,457
1,131,708
123,693
694,063
-
817,756
313,952
(148,320)
165,632
2,560,397
165,632
2,726,029		 Total
funds
2021
£
259,992
1,320,606
88,341
62,276
220,457
1,951,672
123,693
1,714,788
-
1,838,481
113,191
-
113,191
2,811,053
113,191
2,924,244		 Total
funds
2020
£
28,532
1,710,773
329,382
60,009
20,238
2,148,934
264,583
1,945,535
30
2,210,148
(61,214)
-
(61,214)
2,872,267
(61,214)
2,811,053

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

The notes on pages 25 to 53 form part of these financial statements.

Page 19

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED (A company limited by guarantee) REGISTERED NUMBER: 02592100

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2021

Note
Fixed assets
Tangible assets
14
Current assets
Stocks
16
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one
year
18
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
19
Total net assets
Charity funds
Restricted funds
20
Unrestricted funds
20
Total funds		 158,703
373,052
498,879
1,030,634
(448,048)		 2021
£
2,384,158
2,384,158
582,586
2,966,744
(42,500)
2,924,244
198,215
2,726,029
2,924,244		 141,582
466,375
164,278
772,235
(431,905)		 2020
£
2,470,723
2,470,723
340,330
2,811,053
-
2,811,053
250,656
2,560,397
2,811,053

Page 20

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED (A company limited by guarantee) REGISTERED NUMBER: 02592100

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2021

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

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

The financial statements were approved and authorised for issue by the Trustees on 30 November 2021 and signed on their behalf by:

Mr D L Robson Mr M Charlton

The notes on pages 25 to 53 form part of these financial statements.

Page 21

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED (A company limited by guarantee) REGISTERED NUMBER: 02592100

COMPANY BALANCE SHEET AS AT 31 MARCH 2021

Note
Fixed assets
Tangible assets
14
Investments
15
Current assets
Stocks
16
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one
year
18
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
19
Total net assets
Charity funds
Restricted funds
20
Unrestricted funds
20
Total funds		 157,380
416,098
395,867
969,345
(437,849)		 2021
£
2,378,909
3
2,378,912
531,496
2,910,408
(42,500)
2,867,908
166,298
2,701,610
2,867,908		 141,237
482,851
97,135
721,223
(429,729)		 2020
£
2,459,005
3
2,459,008
291,494
2,750,502
-
2,750,502
232,402
2,518,100
2,750,502

Page 22

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED (A company limited by guarantee) REGISTERED NUMBER: 02592100

COMPANY BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2021

The Company's net movement in funds for the year was £ 117,406 (2020 - £(109,101)) .

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

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

The financial statements were approved and authorised for issue by the Trustees on 30 November 2021 and signed on their behalf by:

Mr D L Robson

Mr M Charlton

The notes on pages 25 to 53 form part of these financial statements.

Page 23

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Note
Cash flows from operating activities
Net cash used in operating activities
23
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Cash inflows from new borrowing
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
24
The notes on pages 25 to 53 form part of these financial statements		 2021
£
296,796
(12,195)
(12,195)
50,000
334,601
164,278
498,879		 2020
£
(69,101)
(7,583)
(7,583)
-
(76,684)
240,962
164,278

Page 24

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. General information

The Charitable Company is a company limited by guarantee (company registered number 02592100, charity registered number 1007918). There are three members, each of whom have undertaken to contribute an amount not exceeding £1 in the event of a winding up. The members are:-

Federation of Groundwork Trusts; South Tyneside Metropolitan Borough Council; North East Chamber of Commerce, Trade and Industry;

The registered office address of the charitable company is The Eco Centre, Windmill Way, Hebburn, Tyne and Wear, NE31 1SR.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Groundwork South and North Tyneside Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Company and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis.

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.

2.2 Going concern

The financial statements have been prepared on a going concern basis. The trustees have reviewed and considered relevant information, including the annual budget and future cash flows, in making their assessment. In particular, the recovery from the Covid-19 pandemic and the recommencing of operations and government funding opportunities. Furthermore, the majority of charitable activities recommencing in early 2021 leading to a stable operating model and financial performance despite the challenges of Covid-19.

Over the past year, the charitable company has accessed a number of business support and emergency grants to reduce the impact of the Covid-19 pandemic on the charitable company. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the trustees have concluded that they can continue to adopt the going concern basis in preparing the annual report and financial statements.

Page 25

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.3 Income

All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Consolidated statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.4 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 allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of financial activities over the expected useful lives of the assets concerned.

The Charitable Company has accessed a number of business support and emergency grants including Furlough Scheme to reduce the impact of the Covid-19 pandemic on the company.

Project grants are included in creditors and are released to the statement of financial activities over the life of the project.

2.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

Page 26

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.7 Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities incorporating income and expenditure account.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

Freehold property - 2% straight line
Long-term leasehold property - 2% straight line
Short-term leasehold property - 2% straight line
Plant and machinery - 6.67% straight line
Motor vehicles - 20% straight line
Fixtures and fittings - 20% straight line
L/Term leasehold Land - straight line over lease term
Computer equipment - 33.3% straight line
Wastage equipment - 40% straight line

2.8 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated statement of financial activities.

Investments in subsidiaries are valued at cost less provision for impairment.

2.9 Work in progress

Work in progress is valued at the lower of cost and net realisable value and represents costs on ongoing projects where there is a reasonable probability that the costs will be recovered.

2.10 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Page 27

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.11 Cash at bank and in hand

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

2.12 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost.

2.13 Joint arrangements

These financial statements recognise only Groundwork South Tyneside and Newcastle upon Tyne's share of the income, expenditure, assets and liabilities of joint arrangement projects.

2.14 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.15 Operating leases

Rentals paid under operating leases are charged to the Consolidated statement of financial activities on a straight line basis over the lease term.

Page 28

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.16 Pensions

The Charitable Company operates a defined contribution scheme through the Groundwork Federation which is currently administered by Aegon Scottish Equitable. The scheme is available to all employees. The assets of the scheme are held separately from those of the Charitable Company. The annual contributions payable are charged to the statement of financial activities.

Some current and previous employees of the Charitable Company participate in Tyne and Wear Pension Fund, a defined benefit scheme. Contributions payable to this scheme are charged to the income and expenditure account so as to spread the cost of the pension over the employees' expected working life. The pension charge is calculated on the basis of actuarial advice. The contributions are invested separately from the Charitable Company's assets.

The scheme is a multi-employer scheme and whilst it is a defined benefit scheme, the Charitable Company is unable to identify its share of the underlying assets and liabilities. Accordingly, as directed by FRS17, the contributions to the scheme have been accounted for as if it were a defined contribution scheme.

2.17 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

2.18 Joint arrangements

These financial statements recognise only Groundwork South Tyneside and Newcastle upon Tyne's share of the income, expenditure, assets and liabilities of joint arrangement projects.

Page 29

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

3. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Critical areas of judgment:

Work in progress:

The accounts include work in progress amounting to £157,380 (2020: £141,237) in respect of costs incurred on projects that were ongoing at the year end. These projects have not yet been completed and therefore the overall outcome of the project is not yet known. There is therefore a degree of judgment by the managers of the charitable company at the year end in determining the likelihood of these costs being recovered in the following year.

Depreciation:

Tangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation and maintenance programmes are taken into account. Residual values consider such things as future market conditions, the remaining life of the asset and projected disposal values. This estimation policy is consistent with previous years.

4. Income from donations and legacies

Government grants
Government furlough grants
Government - other Covid 19 support grants
Subtotal detailed disclosure
Donations
Core funding
Other grants
Subtotal		 Restricted
funds
2021
Unrestricted
funds
2021
£
£
-
173,448
-
68,647
-
242,095
-
4,050
-
10,044
3,803
-
3,803
14,094
3,803
256,189		 Total
funds
2021
£
173,448
68,647
242,095
4,050
10,044
3,803
17,897
259,992

Page 30

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

4. Income from donations and legacies (continued)

Donations
Core funding		 Unrestricted
funds
2020
£
18,206
10,326
28,532		 Total
funds
2020
£
18,206
10,326
28,532

5. Income from charitable activities

Project income - Employment
Project income - Business
Project income - Education
Project income - Communities
Project income- Land
Ten North East activities
Project income - Employment
Project income - Business
Project income - Education
Project income - Communities
Project income - Land
Ten North East activities		 Restricted
funds
2021
Unrestricted
funds
2021
£
£
251,000
-
76
107,415
44,433
46,504
260,571
239,519
36,783
111,007
223,298
-
816,161
504,445
Restricted
funds
2020
Unrestricted
funds
2020
£
£
259,913
-
1,682
133,653
10,692
135,696
444,173
326,149
53,250
35,782
228,582
81,201
998,292
712,481		 Total
funds
2021
£
251,000
107,491
90,937
500,090
147,790
223,298
1,320,606
Total
funds
2020
£
259,913
135,335
146,388
770,322
89,032
309,783
1,710,773

Page 31

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

5. Income from charitable activities (continued)

Included in project income is the released element of the following grants:

To deliver our objects and aims of TEN, the charity has delivered services and support under the following programmes during the 2020/21 financial year: · Building Better Opportunities in partnership with the Wise Group · Young Carers through external funding from Children in Need, National Lottery, Community Foundation, Police and Crime Commissioner, Tesco – Carrier for Causes, Awards for All, Mind, Rise and local donations.

The Charitable Company would also like to thank the South Tyneside Young Carers CIC for their support during the year, their fundraising has supported enrichment and respite activities for our young carers.

Page 32

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

6. Income from other trading activities

Income from non charitable trading activities

Unrestricted
funds
2021
£
Trading income - Windmill
84,639
Jarrow Hall shop takings
3,702
88,341
Investment income
Unrestricted
funds
2021
£
Share of rents received from Eco Centre
62,095
Interest receivable
181
62,276		 Total
funds
2021
£
84,639
3,702
88,341
Total
funds
2021
£
62,095
181
62,276		 Total
funds
2020
£
316,064
13,318
329,382
Total
funds
2020
£
58,952
1,057
60,009

7. Investment income

8. Other incoming resources

Unrestricted
funds
2021
£
Other income
218,279
Sale of electricity to network
2,178
220,457		 Total
funds
2021
£
218,279
2,178
220,457		 Total
funds
2020
£
18,913
1,325
20,238

Other income of £218,279 includes £204,000 received from South Tyneside Council. This is an exceptional release of funds relating to a historical funding agreement with South Tyneside Council which both parties have agreed to front-load to a one-off lump sum due to the level of administration required on the historical agreement.

Page 33

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

9. Analysis of expenditure on charitable activities

Summary by fund type

Employment
Business
Education
Communities
Land
Ten North East activities
Employment
Business
Education
Communities
Land
Ten North East activities		 Restricted
funds
2021
Unrestricted
funds
2021
£
£
296,935
10,767
112
130,651
52,343
59,996
416,579
338,065
41,318
126,987
213,438
27,597
1,020,725
694,063
Restricted
funds
2020
Unrestricted
funds
2020
£
£
299,232
25,987
1,795
169,624
29,724
163,847
382,197
445,526
44,577
57,643
236,097
89,286
993,622
951,913		 Total
funds
2021
£
307,702
130,763
112,339
754,644
168,305
241,035
1,714,788
Total
funds
2020
£
325,219
171,419
193,571
827,723
102,220
325,383
1,945,535

Page 34

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

10. Analysis of expenditure by activities

Employment
Business
Education
Communities
Land
Ten North East activities		 Activities
undertaken
directly
2021
£
228,882
125,075
82,177
547,804
120,751
187,005
1,291,694		 Support
costs
2021
£
78,820
5,688
30,162
206,840
47,554
54,030
423,094		 Total
funds
2021
£
307,702
130,763
112,339
754,644
168,305
241,035
1,714,788
Employment
Business
Education
Communities
Other charitable activities
Ten North East activities		 Activities
undertaken
directly
2020
£
240,373
165,066
144,995
597,340
74,538
268,624
1,490,936		 Support
costs
2020
£
84,846
6,353
48,576
230,383
27,682
56,759
454,599		 Total
funds
2020
£
325,219
171,419
193,571
827,723
102,220
325,383
1,945,535

Page 35

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

10. Analysis of expenditure by activities (continued)

Analysis of direct costs

Employment
2021
£
Staff costs
189,185
Project costs
39,697
228,882
Staff costs
Project costs
Rent and rates
Repairs and maintenance
Printing, postage and stationery
Telephone
Motor and travel
Recruitment and training
General expenses
Basis of allocation of direct costs:
Project costs - actual costs
Staff costs - staff time.		 Business
2021
£
13,865
111,210
125,075
Land
2021
£
92,701
28,050
-
-
-
-
-
-
-
120,751		 Education
2021
£
61,248
20,929
82,177
Ten North
East
2021
£
152,732
25,896
841
1,443
385
1,747
1,556
2,375
30
187,005		 Communities
2021
£
272,213
275,591
547,804
Total
funds
2021
£
781,944
501,373
841
1,443
385
1,747
1,556
2,375
30
1,291,694

Page 36

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

10. Analysis of expenditure by activities (continued)

Analysis of direct costs (continued)

Prior year

Staff costs
Project costs
Staff costs
Project costs
Rent and rates
Repairs and maintenance
Printing, postage and stationery
Telephone
Motor and travel
Recruitment and training
General expenses		 Employment
2020
£
194,897
45,476
240,373		 Business
2020
£
8,426
156,640
165,066
Land
2020
£
55,708
18,830
-
-
-
-
-
-
-
74,538		 Education
2020
Communities
2020
£
£
107,170
338,286
37,825
259,054
144,995
597,340
Ten North
East
activities
2020
Total
funds
2020
£
£
196,883
901,370
33,063
550,888
20,990
20,990
3,857
3,857
3,994
3,994
1,142
1,142
3,672
3,672
3,509
3,509
1,514
1,514
268,624
1,490,936		 Education
2020
Communities
2020
£
£
107,170
338,286
37,825
259,054
144,995
597,340
Ten North
East
activities
2020
Total
funds
2020
£
£
196,883
901,370
33,063
550,888
20,990
20,990
3,857
3,857
3,994
3,994
1,142
1,142
3,672
3,672
3,509
3,509
1,514
1,514
268,624
1,490,936
597,340
Total
funds
2020
£
901,370
550,888
20,990
3,857
3,994
1,142
3,672
3,509
1,514
1,490,936

Page 37

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

10. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Depreciation
Rates and water
Light and heat
Insurance
Repairs and maintenance
Security costs
Printing, postage and stationery
Telephone
Motor and travel
Recruitment and training
Bank charges
General expenses
Groundwork UK membership
fee
Professional fees
Irrecoverable VAT
Governance costs		 Employment
2021
£
28,830
9,728
2,172
4,035
9,769
10,987
4,269
858
591
471
346
389
1,175
935
1,191
5
3,069
78,820		 Business
2021
£
2,101
650
158
294
713
802
311
63
44
34
25
28
86
68
87
-
224
5,688		 Education
2021
£
10,444
5,129
787
1,462
3,539
3,981
1,547
311
214
171
125
141
426
339
432
2
1,112
30,162		 Communities
2021
Land
2021
£
£
58,722
16,974
68,116
6,874
4,317
1,279
8,022
2,376
19,422
5,752
21,844
6,469
8,489
2,514
1,704
505
1,175
348
936
277
688
204
774
229
2,292
692
1,858
550
2,369
701
9
3
6,103
1,807
206,840
47,554

Page 38

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

10. Analysis of expenditure by activities (continued)

Analysis of support costs (continued)

Staff costs
Depreciation
Project costs
Rates and water
Light and heat
Insurance
Repairs and maintenance
Security costs
Printing, postage and stationery
Telephone
Motor and travel
Recruitment and training
Bank charges
General expenses
Groundwork UK membership fee
Professional fees
Irrecoverable VAT
Governance costs		 Ten North
East
activities
2021
£
27,422
8,265
2,235
-
-
-
2,339
-
4,524
990
105
49
649
873
-
924
-
5,655
54,030		 Total
funds
2021
£
144,493
98,762
2,235
8,713
16,189
39,195
46,422
17,130
7,965
3,362
1,994
1,437
2,210
5,544
3,750
5,704
19
17,970
423,094

Page 39

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

10. Analysis of expenditure by activities (continued)

Analysis of support costs (continued)

Staff costs
Depreciation
Rates and water
Light and heat
Insurance
Repairs and maintenance
Security costs
Printing, postage and stationery
Telephone
Motor and travel
Recruitment and training
Bank charges
Bad debts
General expenses
Groundwork UK membership
fee
Professional fees
Loss / (profit) on disposal of
fixed assets
Irrecoverable VAT
Governance costs		 Employment
2020
£
24,791
11,809
2,294
4,556
9,177
8,933
3,567
6,996
508
1,394
813
471
756
2,076
1,521
1,584
(49)
6
3,643
84,846		 Business
2020
£
1,415
2,178
131
260
525
511
204
400
29
80
46
27
43
121
87
91
(3)
-
208
6,353		 Education
2020
Communities
2020
£
£
13,154
54,491
9,822
69,841
1,217
5,041
2,417
10,014
4,869
20,172
4,740
19,634
1,893
7,842
3,712
15,376
270
1,117
740
3,064
431
1,787
250
1,037
401
1,663
1,103
4,564
807
3,344
840
3,482
(26)
(106)
3
13
1,933
8,007
48,576
230,383		 Land
2020
£
8,002
4,112
740
1,470
2,961
2,883
1,151
2,257
164
450
262
152
244
670
491
511
(16)
2
1,176
27,682

Page 40

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

10. Analysis of expenditure by activities (continued)

Analysis of support costs (continued)

Staff costs
Depreciation
Project costs
Rates and water
Light and heat
Insurance
Repairs and maintenance
Security costs
Printing, postage and stationery
Telephone
Motor and travel
Recruitment and training
Bank charges
Bad debts
General expenses
Groundwork UK membership fee
Professional fees
Loss / (profit) on disposal of fixed assets
Irrecoverable VAT
Governance costs		 Ten North
East
activities
2020
£
24,991
7,937
2,032
-
-
2,544
-
-
3,329
460
269
800
583
-
877
-
552
-
2,992
9,393
56,759		 Total
funds
2020
£
126,844
105,699
2,032
9,423
18,717
40,248
36,701
14,657
32,070
2,548
5,997
4,139
2,520
3,107
9,411
6,250
7,060
(200)
3,016
24,360
454,599

During the year ended 31 March 2021, the charitable company incurred the following governance costs:

£9,899 (2020 - £10,312) included within the table above in respect of Employment £722 (2020 - £589) included within the table above in respect of Business £3,586 (2020 - £5,472) included within the table above in respect of Education £19,681 (2020- £22,665) included within the table above in respect of Communities £5,827 (2020- £3,329) included within the table above in respect of Land. £5,655 (2020 - £9,393) included within the table above in respect of Ten North East.

Basis of allocation of support costs:

Depreciation - project costs All other support costs - based on income.

Page 41

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

11. Auditors' remuneration

- The auditors' remuneration amounts to an auditor fee of £10,750 (2020 £10,170) , and fees for preparation of the financial statements of £2,625 ( 2020 - £2,500 ).

12. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2021
£
925,661
53,856
52,728
1,032,245		 Group
2020
£
1,061,719
72,822
83,960
1,218,501		 Company
2021
£
658,353
39,847
48,083
746,283		 Company
2020
£
688,356
42,768
75,716
806,840

The average number of persons employed by the Company during the year was as follows:

Group Group Company Company
2021 2020 2021 2020
No. No. No. No.
Full time 57 64 41 48

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2021 2020
No. No.
In the band £60,001 - £70,000 1 1

Key management has been determined to be the Trustees, the chief executive and the chief executive. Trustees receive no remuneration or benefits for their services as trustees. The total remuneration paid to the chief executive and senior management team, including employers national insurance and pension contributions was £88,310 (2020: £92,691) reduced due to the Deputy CEO leaving in February 2019.

13. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .

During the year ended 31 March 2021, no Trustee expenses have been incurred (2020 - £NIL) .

Page 42

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

14. Tangible fixed assets

Group

Cost
At 1 April 2020
Additions
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
On disposals
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Freehold
property
£
2,752,951
-
-
2,752,951
1,151,500
48,982
-
1,200,482
1,552,469
1,601,451		 Long-term
leasehold
£
2,831,038
-
-
2,831,038
2,032,628
19,474
-
2,052,102
778,936
798,410		 Plant and
machinery
£
232,587
-
-
232,587
197,059
10,907
-
207,966
24,621
35,528		 Motor
vehicles
£
36,800
-
-
36,800
36,800
-
-
36,800
-
-		 Other fixed
assets
£
421,242
12,195
(33,824)
399,613
385,908
19,397
(33,824)
371,481
28,132
35,334		 Total
£
6,274,618
12,195
(33,824)
6,252,989
3,803,895
98,760
(33,824)
3,868,831
2,384,158
2,470,723

Page 43

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

14. Tangible fixed assets (continued) Company

Cost or valuation
At 1 April 2020
Additions
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Freehold
property
£
2,752,951
-
2,752,951
1,151,500
48,982
1,200,482
1,552,469
1,601,451		 Long-term
leasehold
property
£
2,831,038
-
2,831,038
2,032,628
19,474
2,052,102
778,936
798,410		 Plant and
machinery
£
205,187
-
205,187
169,659
10,907
180,566
24,621
35,528		 Motor
vehicles
£
36,800
-
36,800
36,800
-
36,800
-
-		 Other fixed
assets
£
366,299
10,399
376,698
342,683
11,132
353,815
22,883
23,616		 Total
£
6,192,275
10,399
6,202,674
3,733,270
90,495
3,823,765
2,378,909
2,459,005

The Charitable Company has two commercial property partnerships that contribute to the fixed assets of the Charitable Company, below is an overview of the partnerships:

One Trinity Green (OTG) – The Charitable Company, in partnership with South Tyneside Council and with ERDF funding support, constructed OTG in 2012 to support the regeneration of the Laygate area of South Shields. The Charitable Company has a 25% share in OTG that equates to £806,262 of freehold property within the financial statements; and

The Beacon – The Charitable Company, in partnership with Centre West Charitable Trust and with ERDF funding support, constructed The Beacon Community Enterprise Hub in 2011/12. The 125 year collaboration aims to assist in the regeneration of the West End of Newcastle. The Charitable Company has a 42.39% share in The Beacon that equates to £798,410 of leasehold property within the financial statements.

Page 44

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

15. Fixed asset investments

Company
Cost or valuation
At 1 April 2020
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Investments
in
subsidiary
companies
£
3
3
3
3

Principal subsidiaries

The following were subsidiary undertakings of the Company:

Names Company Charity Class of Holding Included in
number registration shares consolidation
number
Windmill Sustainable Business 05112329 Equity 100% Yes
Solutions Limited
Ten North East Limited 02957689 1045638 Sole -% Yes
Member
The financial results of the subsidiaries for the year were:
Names Income Expenditure Surplus/ Net assets
£ £ (Deficit) for £
the year
£
Windmill Sustainable Business 133,522 (132,368) 1,154 2,493
Solutions Limited
Ten North East Limited 253,815 (259,182) (5,367) 53,848

The financial results of the subsidiaries for the year were:

Page 45

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16. Stocks

Work in progress (goods to be sold)
Finished goods and goods for resale		 Group
2021
£
157,380
1,323
158,703		 Group
2020
£
141,237
345
141,582		 Company
2021
£
157,380
-
157,380		 Company
2020
£
141,237
-
141,237

17. Debtors

Due within one year
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Group
2021
£
171,441
-
169,819
31,792
373,052		 Group
2020
£
117,448
-
305,605
43,322
466,375		 Company
2021
£
167,171
58,399
168,732
21,796
416,098		 Company
2020
£
107,329
34,086
301,025
40,411
482,851

Included in other debtors are advances made to The Beacon project totalling £28,512 (2020: £57,309).

18. Creditors: Amounts falling due within one year

Bank loans
Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Other creditors
Accruals and deferred income		 Group
2021
£
7,500
155,634
-
13,456
11,494
259,964
448,048		 Group
2020
£
-
165,833
-
34,044
67,324
164,704
431,905		 Company
2021
£
7,500
153,634
16,485
11,362
11,090
237,778
437,849		 Company
2020
£
-
156,480
29,087
25,618
66,915
151,629
429,729

Included in other creditors is £1,220 (2020: £37,378) being the Charitable Company's cumulative share of losses incurred by the Beacon project.

Page 46

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

19. Creditors: Amounts falling due after more than one year

Group
2021
£
Bank loans
42,500
Included within the above are amounts falling due as follows:
Group
2021
£
Between one and two years
Bank loans
10,000
Between two and five years
Bank loans
30,000
Over five years
Bank loans
2,500		 Group
2020
£
-
Group
2020
£
-
-
-		 Company
2021
£
42,500
Company
2021
£
10,000
30,000
2,500		 Company
2020
£
-
Company
2020
£
-
-
-

The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is:

Payable or repayable by instalments Group
2021
£
2,500
2,500		 Group
2020
£
-
-		 Company
2021
£
2,500
2,500		 Company
2020
£
-
-

Page 47

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

20. Statement of funds

Statement of funds - current year

Balance at 1
April 2020
£
Unrestricted funds
General Funds
2,560,397
Restricted funds
Employment
-
Business
-
Education
4,902
Communities
227,500
Land
-
Ten North East Activities
18,254
250,656
Total of funds
2,811,053		 Income
£
Expenditure
£
1,131,708
(817,756)
251,000
(296,935)
76
(112)
44,433
(52,343)
260,571
(416,579)
36,783
(41,318)
227,101
(213,438)
819,964
(1,020,725)
1,951,672
(1,838,481)		 Transfers
in/out
£
(148,320)
45,935
36
3,008
94,806
4,535
-
148,320
-		 Balance at
31 March
2021
£
2,726,029
-
-
-
166,298
-
31,917
198,215
2,924,244

TEN North East activities comprise fourteen funds with the aims of supporting Long Term Unemployed and Supporting Young People. Further information on those funds is available within the financial statements of TEN.

Other restricted funds represent project fund income which has been received to enable specific projects to be undertaken in the year.

Page 48

DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

20. Statement of funds (continued)

Statement of funds - prior year

Balance at
Balance at Transfers 31 March
1 April 2019 Income Expenditure in/out 2020
£ £ £ £ £
Unrestricted funds
General Funds - all funds 2,737,453 1,150,642 (1,216,526) (111,172) 2,560,397
Restricted funds
Employment - 259,913 (299,232) 39,319 -
Business - 1,682 (1,795) 113 -
Education 22,183 10,692 (29,724) 1,751 4,902
Communities 86,862 444,173 (382,197) 78,662 227,500
Land - 53,250 (44,577) (8,673) -
Ten North East Activities 25,769 228,582 (236,097) - 18,254
134,814 998,292 (993,622) 111,172 250,656
Total of funds 2,872,267 2,148,934 (2,210,148) - 2,811,053
Summary of funds
Summary of funds - current year
Balance at
Balance at 1 Transfers 31 March
April 2020 Income Expenditure in/out 2021
£ £ £ £ £
General funds 2,560,397 1,131,708 (817,756) (148,320) 2,726,029
Restricted funds 250,656 819,964 (1,020,725) 148,320 198,215
2,811,053 1,951,672 (1,838,481) - 2,924,244

21. Summary of funds Summary of funds - current year

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DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

21. Summary of funds (continued)

Summary of funds - prior year

General funds
Restricted funds		 Balance at
1 April 2019
£
2,737,453
134,814
2,872,267		 Income
£
1,150,642
998,292
2,148,934		 Expenditure
£
(1,216,526)
(993,622)
(2,210,148)		 Transfers
in/out
£
(111,172)
111,172
-		 Balance at
31 March
2020
£
2,560,397
250,656
2,811,053

22. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total
Analysis of net assets between funds - prior year
Tangible fixed assets
Current assets
Creditors due within one year
Total		 Restricted
funds
2021
Unrestricted
funds
2021
£
£
-
2,384,158
198,215
832,419
-
(448,048)
-
(42,500)
198,215
2,726,029
Restricted
funds
2020
Unrestricted
funds
2020
£
£
-
2,470,723
250,656
521,579
-
(431,905)
250,656
2,560,397		 Total
funds
2021
£
2,384,158
1,030,634
(448,048)
(42,500)
2,924,244
Total
funds
2020
£
2,470,723
772,235
(431,905)
2,811,053

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DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

23. Reconciliation of net movement in funds to net cash flow from operating activities

Net income/expenditure for the year (as per Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Loss on the sale of fixed assets
Increase in stocks
Decrease/(increase) in debtors
Increase in creditors
Net cash provided by/(used in) operating activities
24.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
25.
Analysis of changes in net debt
At 1 April
2020
£
Cash at bank and in hand
164,278
Debt due within 1 year
-
Debt due after 1 year
-		 Group
2021
£
113,191
98,760
-
(17,121)
93,323
8,643
296,796
Group
2021
£
498,879
498,879
Cash flows
£
334,601
(7,500)
(42,500)		 Group
2020
£
(61,214)
105,699
81
(37,716)
(110,270)
34,319
(69,101)
Group
2020
£
164,278
164,278
At 31 March
2021
£
498,879
(7,500)
(42,500)

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DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

26. Pension commitments

The Charitable Company also operates a defined contribution scheme through The Federation of Groundwork Trusts which is currently administered by Aegon Scottish Equitable. The scheme is available to all employees. The assets of the scheme are held separately from those of the Charitable Company. The annual contributions payable are charged to the statement of financial activities.

A few current and previous employees of the Charitable Company participate in Tyne and Wear Pension Fund, a defined benefit scheme. However, the scheme is a multiple employer scheme and the Charitable Company is unable to identify its share of the underlying assets and liabilities. Contributions payable to this scheme are charged to the income and expenditure account so as to spread the cost of the pension over the employees' expected working life. The pension charge is calculated on the basis of actuarial advice. The contributions are invested separately from the Charitable Company's assets.

The pension cost charge represents contributions payable by the Charitable Company to the funds during the year and amounted to £52,728 (2020 - £83,960). Contributions totalling £6,767 (2020 - £25,132) were payable to the fund at the balance sheet date.

27. Related party transactions

D Pearce and A Thurston, trustees of the Charitable Company are also trustees of Groundwork North East. During the year ended 31 March 2021 the company procured goods and services from Groundwork North East amounting to £17,495 (net) and an amount of £32,004 was owed to Groundwork North East at the year end. In addition, the charitable company made sales totalling £8,918 (net) to Groundwork North East during the year and an amount of £18,088 was owed by Groundwork North East at the year end.

Andrew Watts, chief executive officer of the Charitable Company, is a trustee of Tyne Coast College Academy Trust (TACT). During the year the Charitable Company made sales totalling £2,555 to one of the "members" of the TACT Trust Portfolio.

Mr C E Potts (trustee of Ten North East Limited) is a director of The Customs House Green Room Limited. During the year ended 31 March 2020 the group incurred expenditure totalling £1,023 from this organisation.

Mr M Charlton, a trustee of Groundwork South and North Tyneside Limited is a partner in Charlton and Co. During the year, the group incurred expenditure of £648 in relation to professional fees provided by Charltons to one of the subsidiaries in the group.

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DocuSign Envelope ID: B8DD954B-05BC-4126-AD87-DE90210F5182

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

28. Collaborations

As explained in Note 14 of the financial statements, Groundwork has two long-term legally binding collaborations, below is an overview of the collaboration:

One Trinity Green (OTG) – The Charitable Company has a long-term collaboration with South Tyneside Council in the development and management of OTG Business Centre. The collaboration is to support the regeneration of the Laygate area of South Shields and development of a Business Incubator that supports new and emerging business leading to business growth and employment opportunities. Through the collaboration, the Charitable Company has a 25% share in OTG.

The Beacon – The Charitable Company has a 125 year collaboration with Centre West Charitable Trust in the development and management of the Beacon Community Enterprise Hub. The collaboration is to support the regeneration of the West End of Newcastle as well as furthering the aims of the two charitable companies. The ethos of the centre is to provide affordable flexible office spaces and artisan workshops to local new and emerging businesses that support the partners’ charitable aims. The Charitable Company has nominated two representatives onto The Beacon Partnership Board.

Through the collaboration, the Charitable Company has a 42.39% share in The Beacon. In accordance with Financial Reporting Statement 9 – Accounting for associates, joint ventures and joint arrangements, these financial statements recognise only Groundwork South and North Tyneside's share of the income, expenditure, asset and liabilities of the collaboration project for The Beacon Partnership.

29. Controlling party

The Charitable Company is controlled by the Board of Trustees. No individual has overall control.

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