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2022-03-31-accounts

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Company registration number: 02592100 Charity registration number: 1007918

GROUNDWORK SOUTH AND NORTH TYNESIDE LIMITED

(A company limited by guarantee)

Annual Report and Financial Statements

for the Year Ended 31 March 2022

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Groundwork South and North Tyneside Limited

Contents

Reference and Administrative Details 1
Trustees' Report 2 to 14
Independent Auditors' Report 15 to 18
Consolidated Statement of Financial Activities 19
Comparative Consolidated Statement of Financial Activities 20
Consolidated Balance Sheet 21
Balance Sheet 22
Consolidated Statement of Cash Flows 23
Notes to the Financial Statements 24 to 43

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Groundwork South and North Tyneside Limited

Reference and Administrative Details

Trustees

D C Pearce, Chair M J Cuthbertson, Vice Chair J D Owen, Treasurer A Whittaker A Siddall Dr C A Ferguson D J O'Mahoney C A Donnelly D Turton A R Thurston (appointed 23 September 2021) M S Overton (appointed 1 March 2022) S Broadhurst (appointed 16 June 2022) K Crews (appointed 16 June 2022) Cllr S Dean (appointed 22 September 2022) S Brand (appointed 19 August 2021) J R Cripps (appointed 3 March 2022) D L Robson (resigned 1 December 2021) M Charlton (resigned 1 December 2021) Cllr A Strike (appointed 23 September 2021 and resigned 21 July 2022)

Key Management Personnel Mr A Watts, Chief Executive Officer

Registered Office The Eco Centre Windmill Way Hebburn Tyne & Wear NE31 1SR The charity is incorporated in England and Wales. Company Registration Number 02592100 Charity Registration Number 1007918 Solicitors PGS Law Law Court Chambers Waterloo Square South Shields Tyne and Wear NE33 1AW Bankers Royal Bank of Scotland Newcastle 31 Grey St Newcastle upon Tyne NE1 6ES Auditor Azets Audit Services Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS

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Groundwork South and North Tyneside Limited

Trustees' Report

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 31 March 2022.

The Trustees have adopted the provisions of 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, effective 1 January 2019). The accounts have been prepared in accordance with the Companies Act 2006.

The following information about the financial year 2021/22 is presented in the format required by The Charity Commission.

1. Overview

1.1 Organisational Structure and Decision Making

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 Federation supports the independent charitable trusts with external funding, development of national programmes, business development, national campaigns and distribution of national policies.

1.2 Vision

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.

2. CHARITABLE COMPANY GOVERNANCE, STRUCTURE OBJECTIVES AND ACTIVITIES

2.1 Governing 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 England Chamber of Commerce

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.

The Charitable Company 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.

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Groundwork South and North Tyneside Limited

Trustees' Report

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

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.

The charitable company 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 organisation’s assets and projects to obtain first-hand experience of the range of services.

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.

2.2 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.

2.3 Joint NE 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. To support the regional collaboration, this committee has become a Joint NE committee with Trustees from our sister Trust GW North East & Cumbria; this new framework ensures a regional approach to business development, building on knowledge and avoiding duplication.

The management team will develop a framework to monitor progress against the below areas:

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Groundwork South and North Tyneside Limited

Trustees' Report

2.4. 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. To support the regional collaboration, this committee has become a Joint NE committee with Trustees from our sister Trust GW North East & Cumbria; this new framework ensures a regional approach to compliance, building on expertise and avoiding duplication.

The management team review performance against the below areas:

2.5 Route 2 Work Governors

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

2.6 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.

2.7 Charitable Company Objectives

In setting the governing objects, strategic objectives and plans for the future, the Trustees have given due consideration to general guidance published by the charity commission relating to public benefit.

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.

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Groundwork South and North Tyneside Limited

Trustees' Report

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:

4.1 The relief of poverty in such ways as may be thought fit;

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

4.3 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;

(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 subjects 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

2.8 Strategic 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 .

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Groundwork South and North Tyneside Limited

Trustees' Report

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.

2.9 Contribution of Volunteers to deliver strategic objectives

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 2021/22 and the impact of the pandemic, this was scaled back but has recommenced in 2022.

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. To support the recommencement of our programmes past pandemic the volunteering opportunities have increased, thanks to the dedication of our volunteers and additional controls they provided over 7300 volunteering hours to support our vision of changing places, changing lives which equates in total to over £45k in volunteer time.

3. OPERATIONAL ACHIEVEMENTS AND FINANCIAL PERFORMANCE

3.1 Operational Performance

In 2021 Groundwork celebrated 30 years of delivering our mission in South Tyneside, our services have never been more needed, the impact of the pandemic and cost of living crisis has been significant, this challenge alongside the climate emergency has highlighted the stark inequalities across communities. We tackled these inequalities as we continued to work with partners to build green jobs and deliver across four main areas, Empowering Sustainable Communities, Raising Aspirations, Creating Better Places and Enriching Lives through Culture and Heritage, in the places that needed it most.

In 2021/22 the Charitable Company continued to be impacted by the pandemic but through the support of funders, Government support packages and the commitment of the team, the financial performance in 2021/22 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.

Despite, the impact and challenges of the pandemic, 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.

To support staff and our projects during 2021/22, 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 to maximise the benefits of agile working.

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Groundwork South and North Tyneside Limited

Trustees' Report

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.

The Charitable Company secured and received a variety of grants including:

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Groundwork South and North Tyneside Limited

Trustees' Report

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

3.2 Contribution to Local Communities

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

3.2.1 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:

3.2.2 Improving People’s Prospects

We believe that a person’s background or circumstances shouldn’t 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;

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Groundwork South and North Tyneside Limited

Trustees' Report

3.2.3 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:

3.3 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.

We continue to work with partners to look at new opportunities of embedding climate action and sustainability into our employment programmes to provide the best possible support packages around the Green Jobs agenda.

3.4 Financial Performance

The Charitable Company's and its group had a total income of £2,009,368 compared to £1,951,672 last year.

During the financial year the Charitable Company secured contracts, service level agreements and grant funding from many organisations including Central Government, North Tyneside Council, South Tyneside Metropolitan Borough Council, South Tyneside Public Health, The National Lottery Community Fund, Big Local, Sage Foundation, Land Trust, Ward Improvement Fund, National Grid, South Tyneside Homes, Ballinger Trust, Tesco, Agility Eco, Community Foundation, Museum Development North East, National Lottery Heritage Fund, Arts Council England, Sport England and Children in Need.

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

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Groundwork South and North Tyneside Limited

Trustees' Report

At the end of the year the Charitable Company held reserves of £2,883,112 (2021 £2,924,246).

Held as part of the reserves are Freehold and Leasehold properties valued at £2,263,439. 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 £530,192 (2021 £540,089).

3.5 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.

3.6 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.

3.7 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. 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.

4. 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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Groundwork South and North Tyneside Limited

Trustees' Report

4.1 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 register 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:

4.2 Risk Management

The Trustees have examined the major strategic, business and operational risks which the Charity faces 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.

4.3 Reserves Policy

The Trustees have reviewed the Charitable Company's reserves requirements 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.

4.4 Pay Policy for Senior Staff

The Resource Committee of the Board are responsible for the setting of remuneration for the organisation’s 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.

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Groundwork South and North Tyneside Limited

Trustees' Report

5. PLANS FOR FUTURE PERIODS - FUTURE DEVELOPMENTS

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.

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:

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.

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Groundwork South and North Tyneside Limited

Trustees' Report

Due to the continued impact of pandemic, the Charitable Company has accessed a number of external grants during 2021/22 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.

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.

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 Groundwork in the North to develop enhanced collaboration and business development.

Fundraising disclosures

The charity is required to report how it deals with fundraising from the public. The charity does not use a professional fundraiser or commercial participator to raise funds. Any monies raised direct from the public follows all guidelines set out by the Charity Commission and UK law in every respect. We respect the privacy and contact preferences of all public donors.

Public benefit

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

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Groundwork South and North Tyneside Limited

Trustees' Report

Statement of Trustees' Responsibilities

The trustees (who are also the directors of Groundwork South and North Tyneside Limited for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. 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 charitable company and of its incoming resources and application of resources, including its 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 charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditor

Azets Audit Services Limited, trading as Azets Audit Services, were appointed auditor to the company following their acquisition of the trade of Tait Walker LLP, trading as MHA Tait Walker, on 1 May 2022.

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Azets Audit Services as auditors of the charity is to be proposed at the forthcoming Annual General Meeting.

The annual report was approved by the trustees of the charity on 13/12/2022 .................... and signed on its behalf by:

Diana Pearce 14 Dec 2022 11:41:59 GMT (UTC +0) Jeffrey Owen 13 Dec 2022 12:02:10 GMT (UTC +0) ......................................... ......................................... D C Pearce J D Owen Trustee Trustee

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Groundwork South and North Tyneside Limited

Independent Auditor's 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 'charitable parent company') and its subsidiaries (the 'group') for the year ended 31 March 2022, which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

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Groundwork South and North Tyneside Limited

Independent Auditor's Report to the Members of Groundwork South and North Tyneside Limited

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 group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the and the Trustees' Report.

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities (set out on page 14), the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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:

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Groundwork South and North Tyneside Limited

Independent Auditor's Report to the Members of Groundwork South and North Tyneside Limited

Enquiries with management about any known or suspected instances of non-compliance with laws and regulations including fraud;

Because of the field in which the client operates, we identified the following areas as those most likely to have a material impact on the financial statements: compliance with the UK Companies Act, and the Charities Act.

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or recognise the non-compliance.

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 auditor's report.

17

VirtualSignature Transaction Ref. 6QMC-TR2T-5ZY9 14 Dec 2022 11:42:35 GMT (UTC +0) D 3/3 P 20/45

Groundwork South and North Tyneside Limited

Independent Auditor's Report to the Members of Groundwork South and North Tyneside Limited

Use of our report

This report is made solely to the charitable parent company's trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the group's trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable parent company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

...................................... Simon Brown BA ACA DChA (Senior Statutory Auditor) For and on behalf of Azets Audit Services Chartered Accountants Statutory Auditor Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS

Date:.............................

Azets Audit Services is a trading name of Azets Audit Services Limited.

18

VirtualSignature Transaction Ref. 6QMC-TR2T-5ZY9 14 Dec 2022 11:42:36 GMT (UTC +0) D 3/3 P 21/45

Groundwork South and North Tyneside Limited

Consolidated Statement of Financial Activities for the Year Ended 31 March 2022 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investment income
6
Other income
7
Total Income
Expenditure on:
Raising funds
Charitable activities
8
Total Expenditure
Net income/(expenditure)
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
23		 Unrestricted
£
73,321
594,694
143,015
91,387
14,378
916,795
(141,808)
(764,494)
(906,302)
10,493
(11,344)
(851)
2,726,031
2,725,180		 Restricted
£
-
1,092,573
-
-
-
1,092,573
-
(1,144,200)
(1,144,200)
(51,627)
11,344
(40,283)
198,215
157,932		 Total
2022
£
73,321
1,687,267
143,015
91,387
14,378
2,009,368
(141,808)
(1,908,694)
(2,050,502)
(41,134)
-
(41,134)
2,924,246
2,883,112		 Total
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
2,811,055
2,924,246

All of the group's activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 23.

19

VirtualSignature Transaction Ref. 6QMC-TR2T-5ZY9 14 Dec 2022 11:42:37 GMT (UTC +0) D 3/3 P 22/45

Groundwork South and North Tyneside Limited

Comparative Consolidated Statement of Financial Activities for the Year Ended 31 March 2021 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investment income
6
Other income
7
Total income
Expenditure on:
Raising funds
Charitable activities
8
Total expenditure
Net income/(expenditure)
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
23		 Unrestricted
£
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
2,560,399
2,726,031		 Restricted
£
3,803
816,161
-
-
-
819,964
-
(1,020,725)
(1,020,725)
(200,761)
148,320
(52,441)
250,656
198,215		 Total
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
2,811,055
2,924,246

20

VirtualSignature Transaction Ref. 6QMC-TR2T-5ZY9 14 Dec 2022 11:42:38 GMT (UTC +0) D 3/3 P 23/45

Groundwork South and North Tyneside Limited

(Registration number: 02592100) Consolidated Balance Sheet as at 31 March 2022

Note
Fixed assets
Tangible assets
15
Current assets
Stocks
17
Debtors
18
Cash at bank and in hand
19
Creditors: Amounts falling due within one year
20
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
21
Net assets
Funds of the group:
Restricted
Unrestricted income funds
General funds
Total funds
23		 2022
£
2,352,920
4,160
676,894
434,362
1,115,416
(552,175)
563,241
2,916,161
(33,049)
2,883,112
157,932
2,725,180
2,883,112		 2021
£
2,384,159
1,323
530,433
498,879
1,030,635
(448,048)
582,587
2,966,746
(42,500)
2,924,246
198,215
2,726,031
2,924,246

The financial statements on pages 19 to 43 were approved by the trustees, and authorised for issue on .................... 13/12/2022 and signed on their behalf by:

Diana Pearce 14 Dec 2022 11:41:59 GMT (UTC +0) Jeffrey Owen 13 Dec 2022 12:02:10 GMT (UTC +0) ......................................... ......................................... D C Pearce J D Owen Trustee Trustee

21

VirtualSignature Transaction Ref. 6QMC-TR2T-5ZY9 14 Dec 2022 11:42:39 GMT (UTC +0) D 3/3 P 24/45

Groundwork South and North Tyneside Limited

(Registration number: 02592100) Balance Sheet as at 31 March 2022

Note
Fixed assets
Tangible assets
15
Investments
16
Current assets
Debtors
18
Cash at bank and in hand
19
Creditors: Amounts falling due within one year
20
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
21
Net assets
Funds of the charity:
Restricted
Unrestricted income funds
Unrestricted funds
Total funds
23		 2022
£
2,348,893
3
2,348,896
661,309
376,101
1,037,410
(538,063)
499,347
2,848,243
(33,049)
2,815,194
127,898
2,687,296
2,815,194		 2021
£
2,378,909
3
2,378,912
573,478
395,867
969,345
(437,849)
531,496
2,910,408
(42,500)
2,867,908
166,298
2,701,610
2,867,908

The financial statements on pages 19 to 43 were approved by the trustees, and authorised for issue on .................... 13/12/2022 and signed on their behalf by:

Diana Pearce 14 Dec 2022 11:41:59 GMT (UTC +0) Jeffrey Owen 13 Dec 2022 12:02:10 GMT (UTC +0) ......................................... ......................................... D C Pearce J D Owen Trustee Trustee

22

VirtualSignature Transaction Ref. 6QMC-TR2T-5ZY9 14 Dec 2022 11:42:40 GMT (UTC +0) D 3/3 P 25/45

Groundwork South and North Tyneside Limited

Consolidated Statement of Cash Flows for the Year Ended 31 March 2022

Note
Cash flows from operating activities
Net cash (expenditure)/income
Adjustments to cash flows from non-cash items
Depreciation
Investment income
6
Working capital adjustments
Increase in stocks
17
(Increase)/decrease in debtors
18
Increase in creditors
20
Net cash flows from operating activities
Cash flows from investing activities
Interest receivable and similar income
6
Purchase of tangible fixed assets
15
Net cash flows from investing activities
Cash flows from financing activities
Repayment of loans and borrowings
20
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at 1 April
Cash and cash equivalents at 31 March		 2022
£
(41,134)
90,636
(91,387)
(41,885)
(2,837)
(146,461)
102,176
(89,007)
91,387
(59,397)
31,990
(7,500)
(64,517)
498,879
434,362		 2021
£
113,191
98,760
(62,276)
149,675
(17,121)
93,323
8,643
234,520
62,276
(12,195)
50,081
50,000
334,601
164,278
498,879

All of the cash flows are derived from continuing operations during the above two periods.

23

VirtualSignature Transaction Ref. 6QMC-TR2T-5ZY9 14 Dec 2022 11:42:41 GMT (UTC +0) D 3/3 P 26/45

Groundwork South and North Tyneside Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

1 Charity status

The charity is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. 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 address of its registered office is: The Eco Centre, Windmill Way, Hebburn, Tyne & Wear, NE31 1SR

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with 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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

Groundwork South and North Tyneside 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 notes.

The functional currency of the group is the £ Sterling.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the charity and its subsidiary undertakings drawn up to 31 March 2022.

No statement of financial activities is presented for the charity as permitted by section 408 of the Companies Act 2006. The charity made a deficit after tax for the financial year of £52,714 (2021 - surplus of £117,406).

24

VirtualSignature Transaction Ref. 6QMC-TR2T-5ZY9 14 Dec 2022 11:42:42 GMT (UTC +0) D 3/3 P 27/45

Groundwork South and North Tyneside Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

A subsidiary is an entity controlled by the charity. Control is achieved where the charity has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Inter-company transactions, balances and unrealised gains on transactions between the charity and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Going concern

The trustees consider that there are no material uncertainties about the group's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the group.

Estimation uncertainty and judgements

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

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

There are no significant accounting estimates which are considered to materially impact the financial statements.

Income and endowments

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

25

VirtualSignature Transaction Ref. 6QMC-TR2T-5ZY9 14 Dec 2022 11:42:42 GMT (UTC +0) D 3/3 P 28/45

Groundwork South and North Tyneside Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

Donations and legacies

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

Legacy gifts are recognised on a case by case basis following the grant of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity.

Grants receivable

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

Investment income

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.

26

VirtualSignature Transaction Ref. 6QMC-TR2T-5ZY9 14 Dec 2022 11:42:43 GMT (UTC +0) D 3/3 P 29/45

Groundwork South and North Tyneside Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

Government grants

Government grants are recognised based on the performance model and are measured at the fair value of the asset received or receivable. Grants are recognised in income where there are no performance conditions. If there are such performance conditions, then the income is deferred and recognised as deferred income within creditors.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £1,000.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate
Land and Buildings 2% Straight Line
Plant and Machinery 6.67% straight line
Motor vehicles 20% straight line
Other Tangible fixed assets between 20% and 40% straight line

Stock

Stock is valued at the lower of cost and net realisable value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

27

VirtualSignature Transaction Ref. 6QMC-TR2T-5ZY9 14 Dec 2022 11:42:44 GMT (UTC +0) D 3/3 P 30/45

Groundwork South and North Tyneside Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the group.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

28

VirtualSignature Transaction Ref. 6QMC-TR2T-5ZY9 14 Dec 2022 11:42:45 GMT (UTC +0) D 3/3 P 31/45

Groundwork South and North Tyneside Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

Pensions and other post retirement obligations

The group operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

The Charitable Company also operates a defined benefit 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 seperately 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 the 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 seperately from the Charitable Company's Assets.

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 exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

3 Income from donations and legacies

Donations and legacies;
Donations
Legacies
Grants, including capital grants;
Government grants
Grants		 Unrestricted
funds
General
£
20,137
10,000
28,725
14,459
73,321		 Restricted
funds
£
-
-
-
-
-		 Total
2022
£
20,137
10,000
28,725
14,459
73,321

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VirtualSignature Transaction Ref. 6QMC-TR2T-5ZY9 14 Dec 2022 11:42:46 GMT (UTC +0) D 3/3 P 32/45

Groundwork South and North Tyneside Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

Donations and legacies;
Donations
Grants, including capital grants;
Government grants
Grants
4
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
5
Income from other trading activities
Income from trading subsidiary
Trading income - Windmill		 Unrestricted
funds
General
£
8,100
242,095
5,994
256,189
Unrestricted
funds
General
£
2,906
25,784
77,282
365,890
122,832
-
594,694
Unrestricted
funds
General
£
-
107,415
46,504
239,519
111,007
-
504,445		 Restricted
funds
£
-
-
3,803
3,803
Restricted
funds
£
489,420
-
47,274
352,908
20,947
182,024
1,092,573
Restricted
funds
£
251,000
76
44,433
260,571
36,783
223,298
816,161
Unrestricted
funds
General
£
143,015
143,015		 Total
2021
£
8,100
242,095
9,797
259,992
Total
2022
£
492,326
25,784
124,556
718,798
143,779
182,024
1,687,267
Total
2021
£
251,000
107,491
90,937
500,090
147,790
223,298
1,320,606
Total
2022
£
143,015
143,015

30

VirtualSignature Transaction Ref. 6QMC-TR2T-5ZY9 14 Dec 2022 11:42:46 GMT (UTC +0) D 3/3 P 33/45

Groundwork South and North Tyneside Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

Trading income;
Jarrow Hall shop takings
Income from trading subsidiary
Trading income - Windmill
6
Investment income
Interest receivable and similar income;
Interest receivable on bank deposits
Income from rents from Eco Centre
Interest receivable and similar income;
Interest receivable on bank deposits
Income from rents from Eco Centre
7
Other income
Other income
Other income		 Unrestricted
funds
General
£
3,702
84,639
88,341
Unrestricted
funds
General
£
163
91,224
91,387
Unrestricted
funds
General
£
181
62,095
62,276
Unrestricted
funds
General
£
14,378
Unrestricted
funds
General
£
220,457		 Total
2021
£
3,702
84,639
88,341
Total
2022
£
163
91,224
91,387
Total
2021
£
181
62,095
62,276
Total
2022
£
14,378
Total
2021
£
220,457

Other income in the prior year included £204,000 received from South Tyneside Council. This was an exceptional release of funds relating to 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 a historical agreement.

31

VirtualSignature Transaction Ref. 6QMC-TR2T-5ZY9 14 Dec 2022 11:42:47 GMT (UTC +0) D 3/3 P 34/45

Groundwork South and North Tyneside Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

8 Expenditure on charitable activities

Employment
Business
Education
Communities
Land
Ten North East Activities
Employment
Business
Education
Communities
Land
Ten North East Activities
Employment
Business
Education
Communities
Land
Ten North East Activities		 Unrestricted
funds
General
£
155,063
21,305
72,679
391,140
103,913
20,394
764,494
Unrestricted
funds
General
£
10,767
130,651
59,996
338,065
126,987
27,597
694,063
Activity
undertaken
directly
£
479,062
11,597
87,081
559,146
80,119
160,701
1,377,706		 Restricted
funds
£
484,196
-
53,238
396,164
24,750
185,852
1,144,200
Restricted
funds
£
296,935
112
52,343
416,579
41,318
213,438
1,020,725
Activity
support
costs
£
160,197
9,708
38,836
228,158
48,544
45,545
530,988		 Total
2022
£
639,259
21,305
125,917
787,304
128,663
206,246
1,908,694
Total
2021
£
307,702
130,763
112,339
754,644
168,305
241,035
1,714,788
2022
£
639,259
21,305
125,917
787,304
128,663
206,246
1,908,694

32

VirtualSignature Transaction Ref. 6QMC-TR2T-5ZY9 14 Dec 2022 11:42:48 GMT (UTC +0) D 3/3 P 35/45

Groundwork South and North Tyneside Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

Employment
Business
Education
Communities
Land
Ten North East Activities		 Activity
undertaken
directly
£
228,882
125,075
82,177
547,804
120,751
187,005
1,291,694		 Activity
support
costs
£
78,820
5,688
30,162
206,840
47,554
54,030
423,094		 2021
£
307,702
130,763
112,339
754,644
168,305
241,035
1,714,788

In addition to the expenditure analysed above, there are also governance costs of £14,103 (2021 - £17,970) which relate directly to charitable activities. See note 9 for further details.

9 Analysis of governance and support costs

Support costs allocated to charitable activities

Employment
£
Staff costs
62,577
Depreciation
26,331
Premises Costs
26,873
Repairs and
maintenance
6,240
Security costs
5,034
Office costs
9,915
Motor and travel
1,184
Bank charges
645
General
expenses
13,070
Professional
Fees
1,631
Groundwork UK
Membership
2,970
Governance
costs
3,727
160,197		 Business
£
Education
£
Communities
£
Land
£
3,793
15,170
89,125
18,963
1,596
6,383
37,502
7,979
1,629
6,515
38,273
8,143
376
1,513
8,883
1,890
305
1,220
7,170
1,526
601
2,404
14,122
3,004
72
287
1,687
359
39
156
919
195
792
3,169
18,615
3,961
99
395
2,323
494
180
720
4,230
900
226
904
5,309
1,130
9,708
38,836
228,158
48,544		 Ten
North
East
Activities
£
23,551
4,083
-
38
-
610
395
570
170
13,321
-
2,807
45,545		 Total
2022
£
213,179
83,874
81,433
18,940
15,255
30,656
3,984
2,524
39,777
18,263
9,000
14,103
530,988

33

VirtualSignature Transaction Ref. 6QMC-TR2T-5ZY9 14 Dec 2022 11:42:49 GMT (UTC +0) D 3/3 P 36/45

Groundwork South and North Tyneside Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

Employment
£
Staff costs
28,830
Depreciation
9,728
Premises Costs
15,976
Repairs and
maintenance
10,987
Security costs
4,269
Office costs
1,795
Motor and travel
471
Bank charges
389
General
expenses
1,180
Professional
Fees
1,191
Groundwork UK
Membership
935
Governance
costs
3,069
78,820		 Business
£
Education
£
Communities
£
Land
£
2,101
10,444
58,722
16,974
650
5,129
68,116
6,874
1,165
5,788
31,761
9,407
802
3,981
21,844
6,469
311
1,547
8,489
2,514
132
650
3,567
1,057
34
171
936
277
28
141
774
229
86
428
2,301
695
87
432
2,369
701
68
339
1,858
550
224
1,112
6,103
1,807
5,688
30,162
206,840
47,554		 Ten
North
East
Activities
£
27,422
8,265
-
2,339
-
5,563
105
649
3,108
924
-
5,655
54,030		 Total
2021
£
144,493
98,762
64,097
46,422
17,130
12,764
1,994
2,210
7,798
5,704
3,750
17,970
423,094

10 Net incoming/outgoing resources

Net (outgoing)/incoming resources for the year include:

Audit fees
Depreciation of fixed assets		 2022
£
11,295
90,636		 2021
£
10,750
98,760

11 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the group during the year.

No trustees have received any reimbursed expenses or any other benefits from the charity during the year.

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VirtualSignature Transaction Ref. 6QMC-TR2T-5ZY9 14 Dec 2022 11:42:49 GMT (UTC +0) D 3/3 P 37/45

Groundwork South and North Tyneside Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

12 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs		 2022
£
1,176,339
65,661
58,618
1,300,618		 2021
£
1,192,969
67,865
57,373
1,318,207

The monthly average number of persons (including senior management / leadership team) employed by the group during the year expressed as full time equivalents was as follows:

Full time
The number of employees whose emoluments fell within the following
£60,001 - £70,000		 2022
No
66
bands was:
2022
No
1		 2021
No
57
2021
No
1

The total employee benefits of the key management personnel of the group were £87,756 (2021 - £88,310).

13 Auditors' remuneration

2022 2021
£ £
Audit of the financial statements 11,295 10,750

14 Taxation

The group is a registered charity and is therefore potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

35

VirtualSignature Transaction Ref. 6QMC-TR2T-5ZY9 14 Dec 2022 11:42:50 GMT (UTC +0) D 3/3 P 38/45

Groundwork South and North Tyneside Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

15 Tangible fixed assets

Group

Cost
At 1 April 2021
Additions
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the
year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Land and
buildings
£
5,583,989
-
5,583,989
3,252,584
67,966
3,320,550
2,263,439
2,331,405		 Plant and
machinery
£
222,092
459
222,551
197,471
3,269
200,740
21,811
24,621		 Motor
vehicles
£
36,800
45,596
82,396
36,800
6,715
43,515
38,881
-		 Other
tangible fixed
asset
£
397,349
13,342
410,691
369,216
12,686
381,902
28,789
28,133		 Total
£
6,240,230
59,397
6,299,627
3,856,071
90,636
3,946,707
2,352,920
2,384,159

Included within the net book value of land and buildings above is £1,503,486 (2021 - £1,552,469) in respect of freehold land and buildings and £759,953 (2021 - £778,936) in respect of leaseholds.

Charity

Cost
At 1 April 2021
Additions
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the
year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Land and
buildings
£
5,583,989
-
5,583,989
3,252,584
67,966
3,320,550
2,263,439
2,331,405		 Plant and
machinery
£
205,187
459
205,646
180,566
3,269
183,835
21,811
24,621		 Motor
vehicles
£
36,800
45,596
82,396
36,800
6,715
43,515
38,881
-		 Other
tangible fixed
asset
£
376,698
10,482
387,180
353,815
8,603
362,418
24,762
22,883		 Total
£
6,202,674
56,537
6,259,211
3,823,765
86,553
3,910,318
2,348,893
2,378,909

36

VirtualSignature Transaction Ref. 6QMC-TR2T-5ZY9 14 Dec 2022 11:42:51 GMT (UTC +0) D 3/3 P 39/45

Groundwork South and North Tyneside Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

Included within the net book value of land and buildings above is £1,503,486 (2021 - £1,552,469) in respect of freehold land and buildings and £759,953 (2021 - £778,936) in respect of leaseholds.

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 £786,756 of Land and Buildings 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 £759,952 of Land and Buildings within the financial statements.

16 Fixed asset investments

Group

Shares in group undertakings and participating interests
Charity
Shares in group undertakings and participating interests		 2022
£
-
2022
£
3		 2021
£
-
2021
£
3

Shares in group undertakings and participating interests

Shares in group undertakings and participating interests
Cost
At 1 April 2021
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Subsidiary
undertakings
£
3
3
3
3		 Total
£
3
3
3
3

Details of undertakings

Details of the investments in which the charity holds 20% or more of the nominal value of any class of share capital are as follows:

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Groundwork South and North Tyneside Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

Country of Proportion of voting Proportion of voting
Undertaking incorporation Holding rights and shares held
2022 2021
Subsidiary undertakings
Windmill Sustainable
Business Solutions
Limited		 England and
Wales		 Equity 100% 100%
Ten North East Limited England and
Wales		 Sole
Member		 100% 100%

Subsidiaries

The surplus for the financial period of Windmill Sustainable Business Solutions Limited was £5,614 (2021 - £1,154) and the aggregate amount of capital and reserves at the end of the period was £8,107 (2021 - £2,493).

The surplus for the financial period of Ten North East Limited was £5,966 (2021 - (£5,367)) and the aggregate amount of capital and reserves at the end of the period was £59,814 (2021 - £53,848).

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Groundwork South and North Tyneside Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

17 Stock

17 Stock
Group
2022
£
2021
£
Work in progress
4,160
1,323
18 Debtors
Group
2022
£
2021
£
Trade debtors
377,482
171,441
Due from group undertakings
-
-
Prepayments
11,964
31,793
Accrued income
146,633
157,380
Other debtors
140,815
169,819
676,894
530,433
19 Cash and cash equivalents
Group
2022
£
2021
£
Cash at bank
434,362
498,879
20 Creditors: amounts falling due within one year
Group
2022
£
2021
£
Bank loans
9,451
7,500
Trade creditors
180,770
155,634
Due to group undertakings
-
-
Other taxation and social
security
13,603
13,456
VAT
20,676
-
Other creditors
17,022
11,494
Accruals and deferred income
310,653
259,964
552,175
448,048		 Charity
2022
£
2021
£
-
-
Charity
2022
£
2021
£
352,055
167,171
20,330
58,399
9,068
21,796
146,633
157,380
133,223
168,732
661,309
573,478
Charity
2022
£
2021
£
376,101
395,867
Charity
2022
£
2021
£
9,451
7,500
167,586
153,634
15,312
16,485
13,603
11,362
20,676
-
16,641
11,090
294,794
237,778
538,063
437,849
437,849

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VirtualSignature Transaction Ref. 6QMC-TR2T-5ZY9 14 Dec 2022 11:42:53 GMT (UTC +0) D 3/3 P 42/45

Groundwork South and North Tyneside Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

21 Creditors: amounts falling due after one year

Bank loans Group
2022
£
2021
£
33,049
42,500		 Charity
2022
£
2021
£
33,049
42,500

The loan detailed above is a Bounce Back Loan that was obtained in July 2020. The loan period was agreed as six years with an interest rate of 2.5% above Bank of England base rate. The loan will be fully repaid in July 2026. No security was provided against the loan.

22 Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £58,618 (2021 - £57,373).

Contributions totalling £8,910 (2021 - £6,767) were payable to the scheme at the end of the year and are included in creditors.

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Groundwork South and North Tyneside Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

23 Funds

Group

Group
Unrestricted funds
General
General funds
Restricted funds
Employment
Education
Communities
Land
Ten North East Activities
Total restricted funds
Total funds
Unrestricted funds
General
General funds
Restricted funds
Employment
Business
Education
Communities
Land
Ten North East Activities
Total restricted funds
Total funds		 Balance at
1 April
2021
£
2,726,031
-
-
166,298
-
31,917
198,215
2,924,246
Balance at
1 April
2020
£
2,560,399
-
-
4,902
227,500
-
18,254
250,656
2,811,055		 Incoming
resources
£
916,795
489,420
47,274
352,908
20,947
182,024
1,092,573
2,009,368
Incoming
resources
£
1,131,708
251,000
76
44,433
260,571
36,783
227,101
819,964
1,951,672		 Resources
expended
£
(906,302)
(484,196)
(53,238)
(396,164)
(24,750)
(185,852)
(1,144,200)
(2,050,502)
Resources
expended
£
(817,756)
(296,935)
(112)
(52,343)
(416,579)
(41,318)
(213,438)
(1,020,725)
(1,838,481)		 Transfers
£
(11,344)
(5,224)
5,964
4,856
3,803
1,945
11,344
-
Transfers
£
(148,320)
45,935
36
3,008
94,806
4,535
-
148,320
-		 Balance at
31 March
2022
£
2,725,180
-
-
127,898
-
30,034
157,932
2,883,112
Balance at
31 March
2021
£
2,726,031
-
-
-
166,298
-
31,917
198,215
2,924,246

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Groundwork South and North Tyneside Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

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

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.

24 Analysis of net assets between funds

Group

Tangible fixed assets
Net current assets/(liabilities)
Creditors over 1 year
Total net assets
Tangible fixed assets
Net current assets/(liabilities)
Creditors over 1 year
Total net assets
25 Analysis of net funds
Group
Cash at bank and in hand
Debt due within one year
Debt due after more than one year
Net funds		 Unrestricted
General
£
2,352,920
405,309
(33,049)
2,725,180
Unrestricted
General
£
2,384,159
384,372
(42,500)
2,726,031
At 1 April
2021
£
498,879
(7,500)
(42,500)
448,879		 Restricted
£
-
157,932
-
157,932
Restricted
£
-
198,215
-
198,215
Financing
cash flows
£
(64,517)
(1,951)
9,451
(57,017)		 Total funds
£
2,352,920
563,241
(33,049)
2,883,112
Total funds
at 31 March
2021
£
2,384,159
582,587
(42,500)
2,924,246
At 31 March
2022
£
434,362
(9,451)
(33,049)
391,862

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VirtualSignature Transaction Ref. 6QMC-TR2T-5ZY9 14 Dec 2022 11:42:56 GMT (UTC +0) D 3/3 P 45/45

Groundwork South and North Tyneside Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

Cash at bank and in hand
Debt due within one year
Debt due after more than one year
Net funds		 At 1 April
2020
£
164,278
-
-
164,278		 Financing
cash flows
£
334,601
(7,500)
(42,500)
284,601		 At 31 March
2021
£
498,879
(7,500)
(42,500)
448,879

26 Related party transactions

Group

During the year the group made the following related party transactions:

Groundwork North East

(Common Trustees)

D Pearce and A Thurston, trustees of the charitable company are also trustees of Groundwork North East. During the year ended 31 March 2022 the company procured goods and services from Groundwork North East amounting to £35,795 (2021: £17,495) and made sales to Groundwork North East amounting to £59,123 (2021: £8,918). At the balance sheet date the amount due to/from to Groundwork North East was £Nil (2021 - £13,916).

27 Collaborations

As explained in note 15 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.

43