2024-03-31-accounts

FINANCE REPORT FINANCE REPORT ~~2023-24~~ 2022-23

Legal Information

Registered charity name : Healthworks Newcastle

Charity registration number : 1040370

Company registration number : 02952583

Registered office : Health Resource Centre, Adelaide Terrace, Newcastle upon Tyne, NE4 8BE

External Auditor : Stephenson Coates Audit Limited, West 2 Asama Court, Newcastle upon Tyne, NE4 7YD

Bankers : Barclays Bank plc, Leicester, LE87 2BB

Legal Advisor : Baker & McKenzie LLP, 100 New Bridge Street, London, EC4V 6JA

Trustees : J H Marks, P A Cresswell, C F B Burton, D Creighton, M E Henderson, D Lagun, J R Sabarre, and M E Turner

Contents

• 2 to 8 Report of the Trustees (incorporating Directors’ Report) 9 Statement of Trustees’ responsibilities

• 10 to 14 Independent Auditor’s Report to the Members of Healthworks Newcastle

• 15 Statement of Financial Activities, incorporating income and expenditure account 16 Statement of Financial Position

• 17 Statement of Cash Flows

• 18 to 29 Notes to the financial statements

1

Report of the Trustees (incorporating Directors’ Report)

Objectives and activities

Healthworks Newcastle (trading as Healthworks) is a charity constituted as a company limited by guarantee (registered charity number 1040370 and registered company number 02952583). It is therefore subject to charity, trust, and company law. This Report of the Trustees therefore incorporates the Directors’ Report and Strategic Report required under the regulations of the Companies Act.

The Kings Fund defines health inequalities as “ avoidable, unfair and systematic differences in health between different groups of people ”[1] . Our long-term aim is to end health inequalities that exist between people who live in the North East of England and the rest of the United Kingdom.

We are governed by a Memorandum and Articles of Association which sets out our charitable purpose:

To preserve, protect and improve the health and life outcomes of communities across the North East region of England .

This charitable objective informs our stated aim which is:

Supporting people of all ages to live longer, healthier and happier lives.

We work to achieve this stated aim – within the scope of our charitable objective – through the following activities undertaken by three separate teams:

• Health Improvement . Activities undertaken by the team include:

• Social prescribing services for adults on behalf of Primary Care Networks across Newcastle;

• Community Health Trainers to support change behaviour interventions to help reduce the health risks from obesity and type 2 diabetes;

• Waiting Well services to offer targeted support to patients waiting for surgery in the North East;

• Tobacco Dependency service to help reduce smoking instances amongst hospital in-patients;

• Physical activity sessions to support people with fall prevention, chronic joint pain, or rehabilitation following cardiac episodes; and

• Carrying out NHS Health Checks to help identify people at higher risk of chronic health issues who may need clinical support.

• Health Promotion . Activities undertaken by the team include:

• Cancer Awareness services on behalf of Northern Cancer Alliance to promote early identification and reduce the risk of developing lifestyle cancers;

• Support for families including healthy nutrition sessions, group activities for carers and infants, and school holiday activity sessions.

• Best Start service to provide antenatal and breastfeeding information, supporting women from conception to birth and enabling people to make informed choices about how to feed their baby;

1 https://www.kingsfund.org.uk/insight-and-analysis/long-reads/what-are-health-inequalities

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Report of the Trustees (incorporating Directors’ Report) continued

Objectives and activities continued

• Providing Royal Society for Public Health accredited training to improve nutrition awareness; and

• • Supporting the DWP Mid-Life MOT pilot in the North East through provision of bespoke training sessions designed to support making healthy choices.

• ZoneWorks. Activities undertaken by the team include:

• Provision of a pilot service funded by school improvement in Newcastle that aims to improve attendance and attainment through targeted support;

• Social prescribing services on behalf of Primary Care Networks across Newcastle that are specifically targeted at young people who are at risk of dropping out of the school system; and

• A programme of research in partnership with North East Wellbeing to promote the ZoneWorks model using the academic led measured outcomes from the services.

We also carry out primary purpose trading in addition to the above charitable activities. This trading is primary purpose because:

• Our pre-school is embedded within our Health Promotion team and provides a service to families who often have additional needs within our early years setting;

• Our gyms and exercise classes are embedded within our Health Improvement team and provides a service to clients who are less likely to attend a commercial gym due to their particular needs; and

• Our rental of premises is predominantly to other charitable organisations who are partnered with us and whose charitable purpose is closely aligned to our own.

Our Trustees have had regard to the Charity Commission’s guidance on public benefit.

Our activities deliver public benefit by:

• Increasing the understanding and recognition of the wider social determinants of health;

• Building on the capacity of individuals to identify and act on issues that impact on their own, and others, health and wellbeing (asset-based approach);

• Providing local access to regular exercise via high quality, low price community gyms and classes;

• Encouraging people to engage in a range of other local services which enable them to socialise within their communities;

• Supporting people to access the services most appropriate to them which are available in the city;

• Recruiting and training a local workforce, investing in upskilling local people;

• Offering a range of volunteering opportunities for local people;

• Achieving a wide reach into communities traditionally seen as ‘hard to reach’ through the support and coordination of local volunteers who reflect their community;

• Buying from local suppliers and producers wherever possible, investing in the local economy;

• Linking into city-wide networks to share good practice and avoid duplication; and

• Recognising and valuing the range of other local organisations that deliver services supporting people to manage their lives.

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Report of the Trustees (incorporating Directors’ Report) continued

Objectives and activities continued

Our charity does not make any material social investments or grants. We were supported by 37 volunteers (2022/23: 32) who donated a total of 3,220 hours of their time (2022/23: 2,525). These volunteers predominantly worked in support of our Best Start service.

Achievements and performance

We are proud of our achievements this year. Some of our highlights across our teams include:

• 15,631 people accessed our services and 5,849 were referred to our targeted programmes;

• 2,013 support telephone and video support calls were made to individuals, equating to 743 hours of remote lifestyle support;

• 137 individual NHS Health Checks completed to spot early signs of stroke, kidney disease, heart disease, type 2 diabetes, or dementia;

• 46 individual Health MOTs completed providing information about overall health & wellbeing;

• 77% of Staying Steady completers improvement in TUG Functionality test by 36% (avg.);

• 69% of Staying Steady completers improvement in Sit to Stand Functionality test by 45% (avg.);

• 1.12 average improvement in 4-point balance test;

• 96% of clients reported they had achieved their Goals, across a range of Health and Wellbeing projects;

• 92% of completers of Long Covid rehab significantly reduced reported fatigue;

• Diabetes management clients reduced their HbA1c reading by an average loss on 14.3mmol per client;

• 86% of clients asked would Highly Recommend the programmes to friends and family;

• We participated in 132 Awareness events attended by 5,654 people. 38% of those attending resided in the lowest 30% areas of deprivation.

• 88 people completed the Cancer Champion Courses. 98% found the course informative and useful;

• 96% of those that attended Cancer Awareness events reported that they are now likely to attend a screening appointment;

• 267 meetings with local businesses to promote key Cancer awareness messages;

• 592 individuals accessed our Stop Smoking service and were given 1-2-1 support to set their Quit date;

• Of the people accessing our Stop Smoking service, 59% of all clients successfully quit smoking at 4 weeks;

• 47% of those that quit smoking continued to be smoke free at 12 weeks;

• 55% of clients employed in ‘Routine and Manual’ occupations setting a quit date quit smoking;

• 84% of clients have increased their physical activity levels (based on GPPAQ);

• A total of 954kg weight loss was reported between 212 clients;

• A total of 217cm lost from waist measurements with an average loss of 5.29cm per client;

• 105 unique people reduced their BMI to a healthy range, average reduction of 2.46

• Our Best Start Team supported 744 new breastfeeding women and families;

• ‘Breastfeeding Mams’ has 3,400 followers on Facebook and 693 on Instagram;

4

Report of the Trustees (incorporating Directors’ Report) continued

Achievements and performance continued

• Our ‘Breastfeeding Mams Newcastle’ dedicated social media support pages and Facebook groups provide real-time support, information and guidance to families and enable ongoing interaction with peers;

• 68 families were provided with pregnancy support from practitioners and/or volunteers;

• 4 Breastfeeding Social sessions per week across Newcastle. Accessed by 409 unique people 1,934 times;

• 72 children attended our pre-school 4,129 times between them;

• Our ZoneWorks Social Prescribing team engaged with over 270 families impacting on both health and social outcomes;

• Our ZoneWorks Social Prescribing team were active in 11 primary schools and 1 secondary school;

• 495 individuals and 8 partners in our New Tyne West partnership;

• We engaged 2,194 unique children and worked with 35 different partners during the Summer Holiday Activities and Food programme (HAF); and

• We continue to develop a range of digital family resources which are accessible to families and workers for free – these included family activity eBooks, play and learn videos and family cooking activities.

Financial review

Our reserves at the end of the reporting period were £1,561,291 (2022/23: £2,036,253). This decrease in reserves of £474,962 is the net of our operating surplus of £51,340 and a loss on the revaluation of our leasehold premises of £526,302. This loss on revaluation arose due to a change in accounting policy for estimating the fair value of leasehold property and is disclosed as a one-off adjustment in the accounts.

Our trading activities generated a deficit of £5,763 (2022/23: £33,746). The reduction in the deficit was mainly due to cost reductions in the pre-school and improved performance in gym and class admissions. This deficit is combined with net proceeds from voluntary income, investment income, and other income to arrive at the net resources available for charitable activities. These net resources were £46,620 (2022/23: £58,780). The fall in net resources was mainly due to a reduction in grant income and other income, which was partially offset by increases in investment income.

Our charitable activities generated a surplus of £4,719 (2022/23: deficit of £24,584). This improvement in performance was mainly due to Health Promotion which generated a surplus of £9,317 (2022/23: deficit of £70,540). Health Improvement also performed well with a surplus of £82,277 (2022/23: £126,897), and ZoneWorks had a deficit of £86,874 (2022/23: £80,841). The ZoneWorks pilot runs until the end of August 2024 (see events after the reporting period disclosure on page 29).

Our turnover increased by 17% to £2,511,430 (2022/23: £2,148,444). The increase in turnover is mainly down to additional commissioned services, in particular from Newcastle City Council and Newcastle upon Tyne Hospitals NHS Foundation Trust. These additional services necessitated additional spending to deliver against their objectives.

5

Report of the Trustees (incorporating Directors’ Report) continued

Financial review continued

The nature of commissioned services mean that contracts tend to be awarded on an annual basis. The principal risk facing the charity is therefore overreliance on a particular funder or contract. The risk is mitigated by providing a wide range of services to a large number of commissioners with contract expiration being staged throughout the year. This enables the charity to better respond to any loss of income through the expiration of a contract. There are no uncertainties about our ability to continue as a going concern.

Our support costs make up 39% (2022/23: 41%) of total expenditure. The reduction in the proportion of total expenditure is mainly due to efforts to allocate more spend to the direct cost of activities.

Our target is to breakeven and to reinvest all income into our charitable activities. We achieved an operating surplus of 2.0% of turnover (2022/23: 1.6%) which will be reinvested in future periods.

All of our reserves are unrestricted, so our free reserves are equivalent to our net current asset position. Our reserves policy is to hold liquid (i.e. immediate access cash) net current assets equal to at least three times the cost of the monthly payroll. This is so that service delivery is not jeopardised through fluctuations in the timing of receipt of funding. It also functions as a shut-down fund in the event of the need to close the charity. Trustees review this policy on an annual basis to ensure that it continues to be appropriate for our organisation.

Our free reserves at the reporting date were £835,392 (2022/23: £791,582). Our staff costs were £1,999,899 (2022/23: £1,706,431), meaning that the liquid net current assets required were £499,975 (2022/23: £426,608). This means that we held free reserves of £335,417 (2022/23: £364,974) over the level required by our policy. These will be invested into our charitable objectives in future periods.

Plans for future periods

The Trustees have considered the budget for the coming financial year and the income contracts in place, and are satisfied that the charity remains a going concern.

The likely future developments are new commissions in the region that build on our existing relationships and contracts. These may necessitate growth in both our staff numbers and our estate to accommodate.

Structure, governance and management

Our Board of Trustees, who are also Directors of the charity for the purposes of the Companies Act, have overall responsibility for the strategy, management, and control of the charity. The Chief Executive, supported by the directors, is responsible for delivering the Board’s vision and strategy and for the day-to-day operation of the charity and accountable to the Board of Trustees. The Key Management Personnel of the charity are the Board of Trustees, the Chief Executive, the Deputy Chief Executive, the Director of Health Promotion, the Director of Operations, and the Director of Finance and Business Development.

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Report of the Trustees (incorporating Directors’ Report) continued

Structure, governance and management continued

As of 31 March 2024, the Board was made up of eight Trustees:

• J H Marks (Chair)

• P A Cresswell (Deputy Chair)

• C F B Burton

• D Creighton

• M E Henderson

• D Lagun

• J R Sabarre

• M E Turner

All of the Trustees were in post for the full year, and there were no resignations from the Board during the year.

There were no changes to the other Key Management Personnel during 2023/24. The Deputy Chief Executive left the charity on 31 August 2024 and a Director of Health Improvement was appointed to the charity with a start date of 1 July 2024 (see events after the reporting period disclosure on page 29).

Decision making within the charity is normally delegated to the Chief Executive. Decisions explicitly retained by the Trustees include spend over £20,000, Chief Executive remuneration, and entering into new investments. The Chief Executive in practice will also seek Trustee approval for creating and amending the annual budget, and any amendments to the pay structure. This means that Trustee approval is required for all pay and remuneration for Key Management Personnel.

Key Management Personnel pay and remuneration below the Chief Executive is set with reference to entry pay in the organisation. The multiple between the entry pay and the top of the director grade in the pay structure is 2.06. Entry pay is set with reference to the Real Living Wage as set by the Living Wage Foundation.

We seek to maintain a diverse board with a broad range of skills, knowledge and experience relevant to our mission. We want to attract a broad range of candidates, and appoint new Trustees based on their skills and experience. We carry out due diligence checks on prospective Trustees to ensure that any appointment meets the requirements of our governing document and the law. Once appointed Trustees go through an induction programme to make sure they understand their role under charity and company law. All of our Trustees give their time voluntarily and receive no financial rewards or benefit. Any Trustee expenses that are repaid are disclosed.

The Board and the Executive Team meet every two months. The objective of these meetings is for the Board to seek and obtain assurances that the Executive Team is acting in a way that enables the Trustees to meet their duty to promote the success of the Charity, and to have regard to s.172 of the Companies Act 2006.

7

Report of the Trustees (incorporating Directors’ Report) continued

Structure, governance and management continued

Major risks are considered at board level and an appropriate risk assessment procedure is embedded in management and operational processes. The risk management policy specifies risks, evaluates the probability level and outlines the strategies for avoiding risk or mitigating potential impact. This process enables Trustees to focus on avoiding risk that might prevent the charity achieving its strategic objectives. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Operationally, Health and Safety and Information Governance remain as standing items on the Board.

The Finance Risk and Audit Committee (FRAC) operated throughout the year. As of 31 March 2024, the FRAC was made up of four Trustees:

• C F B Burton (Committee Chair)

• P A Cresswell

• M E Henderson

• D Lagun

All of the Trustees were in post for the full year, and there were no resignations from the FRAC during the year.

The FRAC meet two weeks prior to the Board and no less than three times a year. The objective of these meetings is for the FRAC to seek and obtain assurances that the Executive Team, represented by the Director of Finance and Business Development, have robust financial controls in place and that the Charity’s exposure to financial risk is understood and mitigated. The FRAC is a sub-committee of the Board and as such provides assurance in turn to the Board.

The charity has no subsidiary undertakings or connected charities. Any related party transactions are disclosed in the accounts (see related parties’ disclosure on page 29).

Reference and administrative details

All information required by regulation can be found on page 1 under the heading “Legal information”.

The Trustees have delegated day-to-day management of the charity to the Chief Executive, Mr P Court.

The Charity produces an annual Impact Report and publishes it on its website: https://www.healthworksne.org.uk/ . This includes information about the services provided and the number of people supported. The Impact Report does not form part of these financial statements. It may provide additional useful information to users of the accounts.

8

Statement of Trustees’ responsibilities

The Trustees (who are also Directors of Healthworks Newcastle for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

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 the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing these financial statements, the Trustees are required to:

• Select suitable accounting policies and then apply them consistently;

• Observe the methods and principles in the Charities SORP;

• Make judgments and estimates that are reasonable and prudent;

• State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, 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 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the persons who is a trustee at the date of approval of this report confirms that:

• so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and

• • they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.

The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006

The Report of the Trustees, which incorporates the requirements of the Strategic report and the Directors’ report as set out in the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013, was approved by the Board, in their capacity as Trustees and company Directors on 24 September 2024 and signed on its behalf by:

J H Marks Trustee

9

Independent Auditor’s Report to the Members of Healthworks Newcastle for the year ended 31 March 2024

Opinion

We have audited the financial statements of Healthworks Newcastle (the 'charity') for the year ended 31 March 2024 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company’s ability to continue as a going concern for a period of at least 12 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.

10

Independent Auditor’s Report to the Members of Healthworks Newcastle for the year ended 31 March 2024 continued

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the trustees' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.

11

Independent Auditor’s Report to the Members of Healthworks Newcastle for the year ended 31 March 2024 continued

Matters on which we are required to report by exception continued

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

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the directors' report and from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors 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 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’s responsibilities for the audit of the financial statements

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

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.

12

Independent Auditor’s Report to the Members of Healthworks Newcastle for the year ended 31 March 2024 continued

Auditor’s responsibilities for the audit of the financial statements continued

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We obtained an understanding of the legal and regulatory framework applicable to both the company itself and the sector in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the Key Management Personnel. The most significant identified that directly affect the financial statements include financial reporting legislation (including related companies’ legislation), the Charities Act 2011 and UK taxation legislation. The company is subject to other laws and regulations where the consequences of noncompliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: Health and Safety, Ofsted, Employment Law and Data Protection regulations, recognising the nature of the company’s activities.

We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included:

• making enquiries of Trustees and Key Management Personnel as to where they consider there to be susceptibility to fraud and whether they have any knowledge or suspicion of fraud;

• obtaining an understanding of the internal controls established to mitigate risks related to fraud or noncompliance with laws and regulations;

• assessing the design effectiveness of the controls in place to prevent and detect fraud;

• assessing the risk of management override, including identifying and testing journal entries;

• challenging the assumptions and judgements made by management in its significant accounting estimates.

Our audit did not identify any key audit matters relating to the detection of irregularities including fraud. However, despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit and that by their very nature, any such instances of fraud or irregularity likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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Independent Auditor’s Report to the Members of Healthworks Newcastle for the year ended 31 March 2024 continued

Use of our report

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

John Oswald BA FCA Senior Statutory Auditor

Stephenson Coates Audit Limited Chartered Accountants West 2, Asama Court Newcastle Business Park Newcastle upon Tyne NE4 7YD

24 September 2024

14

Statement of Financial Activities, incorporating income and expenditure accounts at Healthworks Newcastle

For the year ended 31 March 2024

		20,273 282,132 20,310 2,176,915 11,800	57,758 295,859 2,119 1,760,059 32,649
		2,511,430	2,148,444
EXPENDITURE
Costs of generating funds Costs of generating voluntary income 31,152 28,676 The Lemington Centre Pre-School 177,232 203,039 Gym and class admission 47,642 52,745 Rental of premises 26,537 30,964 Other trading income 5,332 14,181
Total cost ofgenerating funds		287,895	329,605
Costs of charitable activities Health Improvement 950,880 835,312 Health Promotion 782,113 568,760 ZoneWorks 439,202 380,571
TOTAL EXPENDITURE	6,7	2,460,090	2,114,248
NET INCOME		51,340	34,196
Losses on revaluation of fixed assets		(526,302)	-
NET MOVEMENT IN FUNDS		(474,962)	34,196
		2,036,253 1,561,291	2,002,057 2,036,253
Reconciliation of funds
TOTAL UNRESTRICTED FUNDS BROUGHT FORWARD
TOTAL UNRESTRICTED FUNDS CARRIED FORWARD
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes onpages 18 to 29 formpart of the financial statements.

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes on pages 18 to 29 form part of the financial statements.

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Statement of Financial Position at Healthworks Newcastle As at 31 March 2024

		2023/24	2022/23
	Note	£	£
ASSETS
Non-current assets
Tangible fixed assets	10	725,899	1,244,671
Total non-current assets		725,899	1,244,671
Current assets
Debtors	11	93,289	107,383
Cash at bank and in hand		1,375,051	1,217,429
Total current assets		1,468,340	1,324,812
TOTAL ASSETS		2,194,239	2,569,483
LIABILITIES
Current liabilities
Creditors: amounts fallingdue within oneyear	12	(632,948)	(533,230)
Total current liabilities		(632,948)	(533,230)
TOTAL LIABILITIES		(632,948)	(533,230)
NET CURRENT ASSETS		835,392	791,582
NET ASSETS		1,561,291	2,036,253
FUNDS
Funds of the charity
Unrestricted funds	14	1,561,291	2,036,253
TOTAL FUNDS		1,561,291	2,036,253

These financial statements were approved by the Board of Trustees and authorised for issue on 24 September 2024, and are signed on behalf of the Board by:

J H Marks P A Cresswell Trustee Trustee

The notes on pages 18 to 29 form part of the financial statements.

16

Statement of Cash Flows at Healthworks Newcastle For the year ended 31 March 2024

Statement of Cash Flows at Healthworks Newcastle Healthworks the community health charity	Statement of Cash Flows at Healthworks Newcastle Healthworks the community health charity	Statement of Cash Flows at Healthworks Newcastle Healthworks the community health charity	Statement of Cash Flows at Healthworks Newcastle Healthworks the community health charity
For the year ended 31 March 2024year ended 31 March 2024ear ended 31 March 2024
		2023/24 £	2022/23 £
Net income 51,340 34,196
Adjustments for:
Depreciation charges Interest received		57,240 (20,310)	55,176 (2,119)
Changes in:
Trade and other debtors		14,094	32,325
Trade and other creditors		99,718	107,840
Net cash from operating activities		202,080	227,418
Cash flows from investing activities
Payments for the acquisition of tangible fixed assets Proceeds from the sale of tangible fixed assets		(65,915) 1,145	(25,888) -
Interest received		20,310	2,119
Net cash used in investing activities		(44,458)	(23,769)
Net increase in cash and cash equivalents		157,622	203,649
Cash and cash equivalents at beginning ofyear		1,217,429	1,013,780
Cash and cash equivalents at end ofyear		1,375,051	1,217,429
The notes on pages 18 to 29 form part of the financial statements.

The notes on pages 18 to 29 form part of the financial statements.

17

Notes to the financial statements

1. General information

Healthworks Newcastle (the Charity) is a private company limited by guarantee registered in England and Wales (02952583) and a registered charity in England and Wales (1040370). The address of the registered office is Health Resource Centre, Adelaide Terrace, Newcastle upon Tyne, NE4 8BE.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102 (The Financial Reporting Standard applicable in the UK and Republic of Ireland), Charities SORP (Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland), and the Charities Act 2011.

3. Accounting policies

a) Basis of preparation

The financial statements have been prepared under the historical cost basis, except for certain fixed assets, which are recorded at fair value, and in accordance with FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. The financial statements are presented in UK sterling which is the functional currency of the charity.

b) Going concern

The Trustees consider the charity to be well placed to manage its financing and other operational risks satisfactorily. The Trustees also have a reasonable expectation that the charity will have adequate resources to continue in operation and meet its liabilities as they fall due for at least 12 months following the date of approval of the accounts. They therefore consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements.

c) Critical accounting estimates and judgements

The Trustees are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

18

Notes to the financial statements continued

d) Sources of estimation uncertainty

• i) Valuation of properties

As described in note 10 to the financial statements, property has been stated at fair value based on the valuations performed during the financial year. The valuations have been based on independent valuations by members of the Royal Institute of Chartered Surveyors. There remains some uncertainty in the UK property market which has inevitably increased the degree of judgement involved in the property valuation at 31 March 2024. The total value of the property held in the financial statements at 31 March 2024 is £625,000 (2023: £1,183,513).

e) Income

All income is derived from services and activities carried out in the UK. All income is recognised when the charity has entitlement to the funds and any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.

Income from government and other grants, whether capital or revenue grants, is recognised in line with expenditure incurred towards meeting the conditions attached to the grant. Any remaining income is recognised when the charity has fully met the conditions attached to the grant.

Income received in advance of the provision of a specified service is deferred until the criteria for the income recognition is met. For example, contracts for services that are paid quarterly in advance.

f) Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis.

Expenditure is classified under the following activity headings:

• Expenditure on the costs of generating funds include the costs of generating voluntary income and the costs of generating other trading income. The costs of generating voluntary income include fundraising activities. The costs of generating other trading income include the costs attributable to activities such as the operation of the Lemington Centre Pre-School, the running of the gyms and fitness classes, and the rental of premises to tenants.

• • Expenditure on charitable activities includes the costs of providing the various activities undertaken to further the purposes of the charity together with their support costs.

• Irrecoverable VAT is charged against the activity for which the expenditure was incurred.

Notes to the financial statements continued

19

g) Tangible assets

Tangible fixed assets – with the exception of Long Leasehold – are measured at historical cost less accumulated depreciation.

Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life as follows:

• Plant & Machinery: 10 years straight line

• Fixtures & Fittings: 10 years straight line

• Computer Equipment: 5 years straight line

Long Leasehold is now held on the revaluation basis. Previously it was depreciated over the term of the lease. This change in accounting policy provides reliable and more relevant information because the revaluation basis considers wider market factors when estimating fair value. Valuations are to be undertaken on a sufficiently regular basis to ensure that the carrying amount does not differ materially from the fair value of the asset at the end of the reporting period. We have assessed this sufficiently regular basis to be not less than every five years. The next revaluation is therefore due to be undertaken on or before 31 March 2029.

h) Taxation

The charity is exempt from Corporation Tax because all of its profits from trading arise through primary purpose trading.

i) Fund accounting

Unrestricted funds are available for use at the discretion of the Trustees to further any of the charity’s purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes. The charity does not hold any designated funds.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds. The charity does not hold any restricted funds.

j) Voluntary assistance

Time is expended on the charity’s activities and governance which is donated free of charge. It is impractical to quantify the value of the time given, and accordingly it is neither recorded as donated income nor as an expense in the financial statements.

k) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

20

Notes to the financial statements continued

l) Current assets

Amounts owing to the charity at 31 March in respect of grants and service level agreement income are shown as debtors less provisions for amounts that may prove uncollectible. Short term deposits represent cash held on deposit at the bank. Cash at bank and in hand represents bank balances at close of business on 31 March.

m) Financial instruments

The charity 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.

4. Limited by guarantee

The charity is a company limited by guarantee and accordingly does not have a share capital.

Each Trustee of the charity undertakes to contribute such amount as may be required (not exceeding £10) to the charity’s assets in the event of it being wound up. This undertaking is in place while they are a Trustee of the charity or within one year after they cease to be Trustee of the charity.

21

Notes to the financial statements continued

5. Income

Notes to the financial statements continued	Notes to the financial statements continued	Notes to the financial statements continued	Notes to the financial statements continued	Notes to the financial statements continued	Notes to the financial statements continued
5. Income
	Public sector contracts	Public sector grants	Other	2023/24 £	2022/23 £
Voluntary income Donations and gifts - - 2,593 2,593 533 Grants - 1,132 16,548 17,680 57,225
Other trading activities The Lemington Centre Pre-School - - 130,621 130,621 141,092 Gym and class admission - - 49,732 49,732 45,163 Rental of premises - - 85,828 85,828 86,987 Other trading income - - 15,951 15,951 22,617 Investment and interest income - - 20,310 20,310 2,119
Income from charitable activities Health Improvement 900,262 81,479 51,416 1,033,157 962,109 Health Promotion 227,747 353,037 210,646 791,430 498,220 ZoneWorks 332,931 - 19,397 352,328 299,730 Other income - - 11,800 11,800 32,649
TOTAL INCOME	1,460,939	435,648	614,842	2,511,430	2,148,444
The income above relates to 19 public sector contracts and 7 public sector grants. The prior year comparator is £1,119,077 from 15 public sector contracts and £257,381 from 6 public sector grants.

The income above relates to 19 public sector contracts and 7 public sector grants.

The prior year comparator is £1,119,077 from 15 public sector contracts and £257,381 from 6 public sector grants.

22

Notes to the financial statements continued

6. Expenditure

Notes to the financial statements continued	Notes to the financial statements continued	Notes to the financial statements continued	Notes to the financial statements continued	Notes to the financial statements continued
6. Expenditurependitureenditure
	Direct cost of activities	Allocation of support costs	2023/24 £	2022/23 £
Costs of generating voluntary income Donations and gifts - 25,676 25,676 8,306 Grants 9 5,466 5,475 20,370
Costs of generating trading income The Lemington Centre Pre-School 140,577 36,655 177,232 203,039 Gym and class admission 32,264 15,378 47,642 52,745 Rental of premises - 26,537 26,537 30,964 Other trading income 401 4,932 5,333 14,181
Charitable activities Health Improvement 506,730 444,150 950,880 835,312 Health Promotion 490,486 291,627 782,113 568,760 ZoneWorks 330,265 108,937 439,202 380,571
TOTAL EXPENDITURE	1,500,732	959,358	2,460,090	2,114,248
None of the expenditure in the currentyear relates togrant funding of activities.

None of the expenditure in the current year relates to grant funding of activities.

23

Notes to the financial statements continued

7. Support costs

2023/24 £	Directorate	Administration	Estate	Resources	Communications	Human Resources	Digital	Insurance and finances	Governance	TOTAL
Costs of generating voluntary income
Donations and gifts	175	24,092	193	843	80	33	206	49	5	25,676
Grants	1,194	1,440	1,317	593	39	223	292	337	31	5,466
Costs of generating trading income
The Lemington Centre Pre-School	8,823	6,910	9,731	4,382	287	1,648	2,154	2,491	229	36,655
Gym and class admission	3,359	4,055	3,705	1,668	109	627	820	948	87	15,378
Rental of premises	5,797	6,993	6,394	2,879	188	1,083	1,415	1,637	151	26,537
Other trading income	1,077	1,301	1,188	535	35	201	263	304	28	4,932
Charitable activities
Health Improvement	104,586	173,973	76,969	34,752	2,283	13,033	17,035	19,702	1,817	444,150
Health Promotion	100,366	64,494	58,961	26,552	1,737	9,984	13,049	15,092	1,392	291,627
ZoneWorks	23,798	28,706	26,248	11,820	773	4,444	5,809	6,719	620	108,937
TOTAL SUPPORT COSTS	249,175	311,964	184,706	84,024	5,531	31,276	41,043	47,279	4,360	959,358
2022/23 £
Costs of generating voluntary income
Donations and gifts	35	37	50	8	8	13	8	8,146	1	8,306
Grants	3,721	4,022	5,405	895	813	1,411	850	3,158	95	20,370
Costs of generating trading income
The Lemington Centre Pre-School	14,331	9,917	13,690	2,349	2,004	3,478	2,095	7,787	234	55,885
Gym and class admission	2,937	3,174	5,719	706	641	1,113	670	2,498	75	17,533
Rental of premises	5,656	6,114	8,218	1,360	1,235	2,145	1,291	4,801	144	30,964
Other trading income	5,021	1,590	2,136	354	321	558	336	1,248	37	11,601
Charitable activities
Health Improvement	87,732	90,280	90,892	15,043	13,662	23,720	14,284	53,098	1,593	390,304
Health Promotion	70,546	35,019	47,068	7,790	7,075	13,133	7,397	27,496	825	216,349
ZoneWorks	19,489	21,068	28,317	4,686	4,256	7,389	4,450	16,595	496	106,746
TOTAL SUPPORT COSTS	209,468	171,221	201,495	33,191	30,015	52,960	31,381	124,827	3,500	858,058

Each category of support cost is first allocated to the line of activity it directly supports, and then the residual is split across the lines of activity based on the apportionment method employed by the entity. The apportionment method for each category of support cost is the percentage of income associated with each line of activity.

24

Notes to the financial statements continued

8. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

	Direct cost £	Support cost £	2023/24	2022/23
			£	£
Gross wages and salaries	1,198,318	625,469	1,823,787	1,552,534
Employers national insurance	88,267	50,981	139,248	121,994
Employers pension	23,318	13,546	36,864	31,903
TOTAL STAFF COSTS	1,309,903	689,996	1,999,899	1,706,431
The average monthly number of employees during the year was as follows:
	Direct staff	Support staff	2023/24	2022/23
Health Improvement	20	1	21	21
Health Promotion	19	3	22	20
ZoneWorks	11	0	11	10
Other	12	23	35	29
TOTAL EMPLOYEES	62	27	89	80

No employee received employee benefits of more than £60,000 during the year (2022/23: nil).

The Memorandum of Association prohibits the Trustees from receiving a salary or any other financial benefit from their role. There were no Trustees’ remuneration, other benefits, or expenses paid for the year ended 31 March 2024 (2022/23: nil).

The Key Management Personnel of the charity comprises the Trustees and the Executive Team (being the CEO, the Deputy CEO, the Director of Health Promotion, the Director of Operations, and the Director of Finance and Business Development). The total employee benefits of the Executive Team were £223,702 (2022/23: £230,451).

9. Net income

Net income is stated after charging:

9. Net income	9. Net income	9. Net income
Net income is stated after charging:ging:ing:g::
	2023/24 £	2022/23 £
Auditor’s remuneration comprising: Audit of the financial statements 4,360 3,500 Depreciation 57,240 55,176 Impairment arising from revaluation of long leasehold 526,302 - Operating lease of plant and machinery 2,295 4,554

25

Notes to the financial statements continued

10.Tangible fixed assets

	Long	Plant &	Fixtures &	Computer
	Leasehold1 £	Machinery £	Fittings £	Equipment £	Total £
Cost
At 1 April 2023	1,529,693	46,662	32,256	52,493	1,661,104
Additions	3,814	11,987	23,277	26,837	65,915
Disposals	-	(442)	(390)	(4,453)	(5,285)
Revaluation	(845,522)	-	-	-	(845,522)
At 31 March 2024	687,985	58,207	55,143	74,877	876,212
Depreciation
At 1 April 2023	(346,180)	(22,642)	(18,054)	(29,557)	(416,433)
Charge for the year	(36,025)	(5,183)	(3,914)	(12,118)	(57,240)
Disposals	-	21	13	4,106	4,140
Revaluation	319,220	-	-	-	319,220
At 31 March 2024	(62,985)	(27,804)	(21,955)	(37,569)	(150,313)
Carrying amount
At 31 March 2024	625,000	30,403	33,188	37,308	725,899
At 31 March 2023	1,183,513	24,020	14,202	22,936	1,244,671

All tangible fixed assets are held for the purposes of the charity.

1The accounting policy for long leasehold has been changed with effect from 31 March 2024: fair value is now estimated by revaluation as opposed to the historic cost model. The impact of this change is reflected in the revaluation lines in Note 10, the disclosure of depreciation and impairment in Note 9, and losses on revaluation of fixed assets in the Statement of Financial Activities.

The Health Resource Centre has a legal charge on its premises between the Charity, Newcastle City Council, and the Secretary of State for Health. This legal charge places an obligation to the Charity to return grant funding to Newcastle City Council and the Secretary of State for Health in the event that the Health Resource Centre is no longer to be used for the furtherance of the charitable objectives as set out in the Charity’s governing documents. The amount of grant funding to be returned in this event is £1,255,000.

The Lemington Centre is held on a short leasehold and is therefore not capitalised. The landlord has elected not to charge rent. The value of any deemed rent has not been estimated and is not included in the accounts as either income or expenditure on the grounds of immateriality.

26

Notes to the financial statements continued

11.Debtors

	2023/24	2022/23
	£	£
Trade debtors	61,873	26,069
Other debtors	-	9
Prepayments and accrued income	31,416	81,305
	93,289	107,383

12.Creditors: amounts falling due within one year

12.Creditors: amounts falling due within one year Creditors: amounts falling due within one yearg due within one year due within one yearyearear
	2023/24	2022/23
	£	£
Trade creditors	24,038	12,733
Other creditors	39,074	43,604
Accruals and deferred income	471,944	396,183
Amounts due to HMRC & pension provider in respect of payroll	36,446	30,755
Amounts due to HMRC in respect of VAT	61,446	49,955
	632,948	533,230

Included within creditors is an amount of £27,618 (2022/23: £326,075) related to deferred grant where funding has been received and not all conditions have been met. The full amount of £326,075 has been released to the SOFA from the previous accounting period and grant income totalling £27,618 has been deferred at the end of the current accounting period.

Included within creditors is an amount of £431,587 (2022/23: £59,562) related to deferred income where contract income has been received in advance of service delivery. The full amount of £59,562 has been released to the SOFA from the previous accounting period and contract income totalling £431,587 has been deferred at the end of the current accounting period.

13.Pensions and other post-retirement benefits

The Charity offers a defined contribution pension scheme to all employees. It has never offered a defined benefit pension scheme. As such, there is no ongoing obligation beyond the amount recognised in the SOFA as an expense for employer contributions to the scheme of £36,864 (2022/23: £31,903). Further details of the scheme offered are available at https://thepeoplespension.co.uk/

27

Notes to the financial statements continued

14.Analysis of charitable funds

Notes to the financial statements continued	Notes to the financial statements continued	Notes to the financial statements continued	Notes to the financial statements continued	Notes to the financial statements continued	Notes to the financial statements continued
14.Analysis of charitable funds Analysis of charitable fundsysis of charitable fundssis of charitable funds
	At 1 April 2023 £	Income £	Expenditure £	Revaluation £	At 31 March 2024 £
Unrestricted funds General funds Restricted funds Unrestricted funds General funds Restricted funds	2,036,253 -	2,511,430 -	(2,460,090) -	(526,302) -	1,561,291 -
	At 1 April 2022 £	Income £	Expenditure £	Revaluation £	At 31 March 2023 £
	2,002,057 -	2,148,444 -	(2,114,248) -	- -	2,036,253 -

15.Analysis of net assets between funds

15.Analysis of net assets between funds Analysis of net assets between fundsysis of net assets between fundssis of net assets between funds	15.Analysis of net assets between funds Analysis of net assets between fundsysis of net assets between fundssis of net assets between funds	15.Analysis of net assets between funds Analysis of net assets between fundsysis of net assets between fundssis of net assets between funds
	Unrestricted funds	Total funds
2023/24 £ Tangible fixed assets Current assets Current liabilities Total net assets	725,899 1,468,340 (632,948)	725,899 1,468,340 (632,948)
	1,561,291	1,561,291
	1,244,671 1,324,812 (533,230)	1,244,671 1,324,812 (533,230)
	2,036,253	2,036,253

28

Notes to the financial statements continued

16.Related parties

Healthworks uses Cheviot Insurance Services Ltd (#09303679) as an insurance broker. Mr Joel Hanoch Marks is both a person with significant control of that entity and a Trustee of Healthworks.

Healthworks reviews its insurance requirements annually and Mr Marks was not involved in the decision to renew the relationship with Cheviot, nor in the subsequent selection of which insurance product is purchased through Cheviot.

Healthworks paid Cheviot £15,756 (2022/23: £10,959) for insurance services. The balance due to Cheviot at 31 March 2024 was nil (2023: £9,066). The insurance services paid for cover the year until February 2025.

Healthworks sold services to Northumberland Wildlife Trust (#221819) during the year. Patricia Cresswell is both a Trustee of that entity and a Trustee of Healthworks. The value of the services sold was £106 (2022/23: nil).

There were no other related party transactions during the year ended 31 March 2024 to report.

17.Events after the Reporting Period

ZoneWorks ended on 31 August 2024. All income and expenditure associated with this team ended on this date.

The Deputy Chief Executive left the charity on 31 August 2024. The postholder had been responsible for ZoneWorks and Health Improvement.

A Director of Health Improvement was appointed to the charity with a start date of 1 July 2024.

29

Healthworks the community heolth chority www.healthworksne.org.uk 0191272 4244 [e-mail] 00000 Supporting people of all ages to live longer. healthier and happier lives www.heolthworksne.org.uk 30