**Company Registration Number: 04509224 Charity Registration Number: 1094112** 

## **Middlesbrough Voluntary Development Agency Financial Statements For the Year Ending 31 March 2023** 

## **JANE ASCROFT ACCOUNTANCY LIMITED** 

Chartered accountants Enterprise House Harmire Enterprise Park Barnard Castle County Durham DL12 8XT 



## **Middlesbrough Voluntary Development Agency** 

## **Financial Statements** 

## **Year Ended 31 March 2023** 

||**Page**|
|---|---|
|Trustees' Annual Report (Incorporating the Director's Report)|**1**|
|Independent Examiner's Report to the Trustees|**6**|
|Statement of Financial Activities (Including Income and Expenditure Account)|**8**|
|Statement of Financial Position|**9**|
|Statement of Cash Flows|**10**|
|Notes to the Financial Statements|**11**|
|**The Following Pages Do Not Form Part of the Financial Statements**||
|Detailed Statement of Financial Activities|**26**|





**Middlesbrough Voluntary Development Agency** 

## **Trustees' Annual Report (Incorporating the Director's Report)** 

## **Year Ended 31 March 2023** 

The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 31 March 2023. 

## **Objectives and Activities** 

The organisation's objects and principal activities are to promote any charitable purposes for the benefit of the community throughout the local government area of Middlesbrough and beyond in such way as the Trustees shall from time to time decide ("the area of benefit") and, in particular the advancement of education, the protection of health and the relief of poverty, distress and sickness. In addition, it aims to promote and organise co-operation in the achievement of the above purposes and to that end to bring together in council representatives of the voluntary organisations and statutory authorities within the area of benefit. 

In line with these objectives, MVDA's mission is to support an effective and enterprising voluntary and community sector (VCS) that makes a difference to the lives of Middlesbrough people and to their communities. 

The trustees have paid due regard to the Charity Commission's guidance on public benefit in planning and reviewing activities, which were as follows: 

- Practical support for voluntary and community organisations (VCOs), including one-to-one 

- support, information and training. 

- A volunteer centre that promotes volunteering, matches people and appropriate volunteering 

- opportunities and promotes good practice in volunteer management. 

- Enabling VCOs to work together through meetings and events that support networking and 

- collaboration and inform engagement at a strategic level. 

- Advocacy for the VCS through focal planning forms and liaison with key public bodies, particularly 

- Middlesbrough Council. 

- Promotion of good practice in meeting the needs of all Middlesbrough's people. 

- Facilitation of voluntary and community action through a range of projects to benefit Middlesbrough. 

## **Achievements and Performance** 

We put significant efforts into the re-design and development of volunteering infrastructure in Middlesbrough, through engagement with volunteer involving organisations (VIOs), local people and other stakeholders, which resulted in the launch of our new Volunteering Academy.  The Volunteering Academy is a virtual hub offering support to make Middlesbrough a volunteering-friendly and inclusive town with initial funding awarded by The National Lottery Community Fund (June 2023). 

During the year, funding for the Step Forward Tees Valley programme came to an end.  MVDA's role in this service focused on engagement of local people and support around volunteering, primarily across Middlesbrough, though across the wider Tees Valley area in the latter period of the programme.  Throughout the lifetime of the programme, MVDA exceeded expectations in terms of delivery. 

Working with other local infrastructure organisations, we developed and launched the Tees Valley Infrastructure Partnership Volunteering Charter, which has been well received by local VIOs and is the foundation for the new Volunteering Academy Quality Award, which will be launched during the next report period. 

**1** 



## **Middlesbrough Voluntary Development Agency** 

## **Trustees' Annual Report (Incorporating the Director's Report)** _**(continued)**_ 

## **Year Ended 31 March 2023** 

## **Achievements and Performance** _**(continued)**_ 

We continued to provide development support for local voluntary and community organisations in support of efforts to benefit local communities and in furthering their charitable purpose.  Demand for our support continues to increase, particularly in areas of organisational governance and funding information and advice.  Our work with Funders continues to be an important area of work locally, regionally and nationally.  We play an active role in the Middlesbrough Council grants panel which oversees most grant programmes locally. 

We worked with a range of local charities, community groups and others in support of the Community Mental Health Transformation programme in Middlesbrough and the wider Tees Valley.  This included support for development and establishment of the Middlesbrough Mental Health Collective - a partnership of local charities, providing more joined up support for people experiencing mental health difficulties. 

Our team continues to play a key role in the work of local multi-agency partnerships, where our primary role is to represent the interests of the local voluntary and community sector.  This includes public-sector partnerships with statutory responsibilities and a range of locally developed initiatives in support of collective action in responding to a range of local issues.  In addition, we support VCS engagement with a range of public sector bodies across the Tees Valley and the North East region and through a range of associated partnership structures. 

We assumed the role of local accountably body for LocalMotion - a movement of six charitable trusts and foundations and six places across England & Wales that was created in response to funding squeezes and the increasing demand on charities and local grassroots organisations to plug the gap; people and communities who traditionally have littler power, minimal resources and are often working in silo from one another.  Our work in support of LocalMotion Middlesbrough as accountable body follows significant development support and stakeholder engagement in the initial phases of development. 

A key area of work during the year was associated with the establishment of the South Tees Changing Futures programme - a government funded initiative to support people experiencing multiple disadvantage and to bring about systems change locally.  Working with RCVDA, our work through Changing Futures during the year primarily focused on engagement with the local voluntary and community sector, work to support local people's engagement in the programme and programme development and systems change. 

The We Care You Care (WCYC) project developed by MVDA, delivered across the South Tees continues to be successful in promoting information for unpaid carers, supporting people to access local services provided by charities and others.  The WCYC project is held in high regard by commissioners and continues to evolve as part of the local partnership and policy landscape.  During the year, our CEO assumed the role of Chair of the South Tees Carers Forum on behalf of Middlesbrough Council and Redcar & & Cleveland Council. 

We continue to deliver the work of our Distribution Centre, whereby goods that would otherwise go to landfill are donated to community groups, charities and other VCOs at no cost.  This work is proving useful to a range of organisations and is an area we are considering how we might develop further. 

Our varied programme of training, events and meetings provides opportunities for people from local VCOs and others to connect, collaborate, learn and inform and influence local planning, policy and partnership activity.  This programme includes a range of training courses to support VCOs on governance, volunteering and funding issues; meetings and forums on thematic and topical issues; and events on key issues affecting the VCS and Middlesbrough more generally. 

**2** 



## **Middlesbrough Voluntary Development Agency** 

## **Trustees' Annual Report (Incorporating the Director's Report)** _**(continued)**_ 

## **Year Ended 31 March 2023** 

## **Financial Review** 

The charity received income for the year totalling £686,731 (2022 - £454,657) with resources expended being £522,569 (2022 - £509,783). 

The charity continues to receive a core grant from Middlesbrough Council in recognition of our role as the local support and development organisation in Middlesbrough. 

Unrestricted reserves at year-end totalled £359,491 (2022 - £397,057) of which £239,163 (2022 - £278,260) is free reserves. Our reserves policy has a formula to determine the target level of reserves to be held by the organisation, which is equivalent to six months running costs as well as consideration of organisational development priorities. A full review of the reserves policy will be undertaken in the next accounting period as part of the trustees consideration of the continued challenging financial climate. 

## **Financial dependency** 

The charity in order to meet its objectives; is financially dependent on grants from the Local Authorities, government programmes and charitable trusts. 

Additional funds are derived from smaller grants and charitable donations made by a variety of organisations and individuals. 

## **Plans for Future Periods** 

During the next reporting period, we will have a particular focus on the first year of operation for our new Volunteering Academy, including progressing further development opportunities; work in support of the LocalMotion Middlesbrough long-term plan for the next eight years; and in activity around community-led action as part of systems change activity. 

We will refresh our previous Looking Ahead survey, capturing the views from voluntary, community and faith sector organisations to develop a current understanding of the collective ambitions, challenges and development priorities for the future.  This is a joint engagement exercise with Together Middlesbrough & Cleveland, as part of our long-term partnership work across the South Tees area.  The results from this work will shape MVDA's future plans through a refresh of our strategic plan in 2024/25.  A A report will be shared widely - with local VCOs, public sector bodies, funders and others. 

We will further develop our partnership work across communities of interest, identify and place, including: 

 with a range of VCS infrastructure organisations - both place-based support and development organisations like MVDA in other geographical areas and with sector-specific organisations; 

 cross-sector collaborative work across thematic areas with a focus on working better together around: people affected by poverty; those experiencing multiple disadvantage; mental health and wellbeing; support for refugees and asylum seekers; and unpaid carers; and  public sector bodies operating across Middlesbrough, the South Tees and Tees Valley where we will continue to represent VCS interests and play an active role in support of agreed joint priorities. 

Our 2023 Governance Review will conclude during the next reporting period, providing an opportunity for Trustees to reflect and refresh all aspects of governance at MVDA, building on our strong foundations and identifying opportunities for our continued development in being a strong local infrastructure organisation. 

**3** 



## **Middlesbrough Voluntary Development Agency** 

## **Trustees' Annual Report (Incorporating the Director's Report)** _**(continued)**_ 

## **Year Ended 31 March 2023** 

## **Structure, Governance and Management** 

## **Legal status and governing document** 

The organisation is a charitable company limited by guarantee incorporated on 12 August 2002. The company was established under a Memorandum and Articles of Association last amended on 1O March 2016. 

## **Recruitment and appointment of trustees** 

The charity shall have a minimum of five and a maximum of fourteen trustees compromising of seven elected members of the charity and a maximum of seven appointed by the directors. 

## **Trustee induction and training** 

New trustees are provided with information on their legal obligations under charity regulations and company law. They receive a copy of the Memorandum and Articles of Association, most recent accounts and current business plan, and are briefed as to work in progress and funding sources. Trustees are encouraged to attend appropriate external training events that will facilitate the undertaking of their role and occasional development opportunities in-house with staff or around particular areas of work. 

## **Risk management** 

The trustees assess the major risks to which the charity is exposed, including both the operations and finances of the charity, and are satisfied that there are sufficient systems to mitigate exposure to significant risks. A key element in the management of financial risk is the setting of a reserves policy and its regular review by trustees. 

## **Organisational structure** 

The Trustee Board meets at least four times per year. The Finance and General Purposes Committee also meets at least four times per year. A Chief Executive Officer (CEO) is appointed to manage the operations of the charity. The CEO has delegated authority for operational matters, including finance, employment and service development and delivery. 

## **Related parties** 

The charity works closely with Middlesbrough Council, which grants essential core funding to support the provision of infrastructure services for the local voluntary and community sector. 

## **Fundraising** 

The charity does not carry out any significant funding activities. 

**4** 



**Middlesbrough Voluntary Development Agency** 

**Trustees' Annual Report (Incorporating the Director's Report)** _**(continued)**_ 

## **Year Ended 31 March 2023** 

## **Reference and Administrative Details** 

|**Registered charity name**|Middlesbrough Voluntary Development Agency|Middlesbrough Voluntary Development Agency|
|---|---|---|
|**Charity registration number**|1094112||
|**Company registration number**|04509224||
|**Principal office and registered**|St Mary's Centre||
|**office**|82-90 Corporation Road||
||Middlesbrough||
||TS1 2RW||
|**The Trustees**|||
||A M Adamson|(Resigned 28 February 2023)|
||A Buck||
||J M Daniels||
||M Fowler||
||M J Harkin||
||M R O'Rourke||
||N Sayer|(Resigned 28 February 2023)|
|**Chief Executive**|M Davis||
|**Independent Examiner**|Jane Ascroft FCA MA(Cantab)||
||Enterprise House||
||Harmire Enterprise Park||
||Barnard Castle||
||County Durham||
||DL12 8XT||



## **Small Company Provisions** 

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption. 

The trustees' annual report was approved on 28[th] December 2023 and signed on behalf of the board of trustees by: 


M R O'Rourke Trustee 

**5** 



## **Middlesbrough Voluntary Development Agency** 

## **Independent Examiner's Report to the Trustees of Middlesbrough Voluntary Development Agency** 

## **Year Ended 31 March 2023** 

I report to the trustees on my examination of the financial statements of Middlesbrough Voluntary Development Agency ('the charity') for the year ended 31 March 2023. 

## **Responsibilities and Basis of Report** 

As the trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act’). 

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. 

## **Independent Examiner's Statement** 

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies. 

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: 

1. accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or 

2. the financial statements do not accord with those records; or 

3. the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination; or 

4. the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 

**6** 



## **Middlesbrough Voluntary Development Agency** 

**Independent Examiner's Report to the Trustees of Middlesbrough Voluntary Development Agency** _**(continued)**_ 

## **Year Ended 31 March 2023** 

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. 


Jane Ascroft FCA MA(Cantab) Independent Examiner 

Enterprise House Harmire Enterprise Park Barnard Castle County Durham DL12 8XT 

**7** 



## **Middlesbrough Voluntary Development Agency** 

## **Statement of Financial Activities (including income and expenditure account)** 

## **Year Ended 31 March 2023** 

||||**2023**||2022|
|---|---|---|---|---|---|
|||Unrestricted|Restricted|||
|||funds|funds|**Total funds**|Total funds|
||**Note**|**£**|**£**|**£**|£|
|**Income and endowments**||||||
|Donations and legacies|**5**|–|–|–|148,410|
|Charitable activities|**6**|91,571|589,594|681,165|243,790|
|Investment income|**7**|5,566|–|5,566|1,084|
|Other income|**8**|–|–|–|61,373|
|||`────────`|`─────────`|`─────────`|`─────────`|
|**Total income**||97,137|589,594|686,731|454,657|
|||`════════`|`═════════`|`═════════`|`═════════`|
|**Expenditure**||||||
|Expenditure on charitable activities|**9,10**|262,754|259,815|522,569|509,783|
|||`─────────`|`─────────`|`─────────`|`─────────`|
|**Total expenditure**||262,754|259,815|522,569|509,783|
|||`═════════`|`═════════`|`═════════`|`═════════`|
|||`─────────`|`─────────`|`─────────`|`─────────`|
|**Net income/(expenditure)**||(165,617)|329,779|164,162|(55,126)|
|||`═════════`|`═════════`|`═════════`|`═════════`|
|Transfers between funds||128,051|(128,051)|–|–|
|||`─────────`|`─────────`|`─────────`|`─────────`|
|**Net movement in funds**||(37,566)|201,728|164,162|(55,126)|
|**Reconciliation of funds**||||||
|Total funds brought forward||397,057|83,124|480,181|535,307|
|||`─────────`|`─────────`|`─────────`|`─────────`|
|**Total funds carried forward**||359,491|284,852|644,343|480,181|
|||`═════════`|`═════════`|`═════════`|`═════════`|



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 11 to 24 form part of these financial statements.** 

**8** 



## **Middlesbrough Voluntary Development Agency** 

## **Statement of Financial Position** 

## **31 March 2023** 

|||**2023**|2022|
|---|---|---|---|
||**Note**|**£**|£|
|**Fixed Assets**||||
|Tangible fixed assets|**17**|466|934|
|**Current Assets**||||
|Debtors|**18**|206,460|12,957|
|Cash at bank and in hand||510,901|507,859|
|||`─────────`|`─────────`|
|||717,361|520,816|
|**Creditors: amounts falling due within one year**|**19**|73,484|41,569|
|||`─────────`|`─────────`|
|**Net Current Assets**||643,877|479,247|
|||`─────────`|`─────────`|
|**Total Assets Less Current Liabilities**||644,343|480,181|
|||`─────────`|`─────────`|
|**Net Assets**||644,343|480,181|
|||`═════════`|`═════════`|
|**Funds of the Charity**||||
|Restricted funds||284,852|83,124|
|Unrestricted funds||359,491|397,057|
|||`─────────`|`─────────`|
|**Total charity funds**|**21**|644,343<br>`═════════`|480,181<br>`═════════`|



For the year ending 31 March 2023 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. 

Directors' responsibilities: 

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476; 

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

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

These financial statements were approved by the board of trustees and authorised for issue on 28[th] December 2023, and are signed on behalf of the board by: 


M R O'Rourke Trustee 

**The notes on pages 11 to 24 form part of these financial statements.** 

**9** 



## **Middlesbrough Voluntary Development Agency** 

## **Statement of Cash Flows** 

## **Year Ended 31 March 2023** 

||**2023**|2022|
|---|---|---|
||**£**|£|
|**Cash Flows from Operating Activities**|||
|Net income/(expenditure)|164,162|(55,126)|
|_Adjustments for:_|||
|Depreciation of tangible fixed assets|468|468|
|Other interest receivable and similar income|(5,566)|(1,084)|
|Accrued expenses|42,358|5,163|
|_Changes in:_|||
|Trade and other debtors|(193,503)|90,957|
|Trade and other creditors|(10,443)|(28,989)|
||`─────────`|`────────`|
|Cash generated from operations|(2,524)|11,389|
|Interest received|5,566|1,084|
||`───────`|`────────`|
|Net cash from operating activities|3,042|12,473|
||`═══════`|`════════`|
|**Net Increase in Cash and Cash Equivalents**|3,042|12,473|
|**Cash and Cash Equivalents at Beginning of Year**|507,859|495,386|
||`─────────`|`─────────`|
|**Cash and Cash Equivalents at End of Year**|510,901|507,859|
||`═════════`|`═════════`|



**The notes on pages 11 to 24 form part of these financial statements.** 

**10** 



**Middlesbrough Voluntary Development Agency** 

## **Notes to the Financial Statements** 

## **Year Ended 31 March 2023** 

## **1. General Information** 

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is St Mary's Centre, 82-90 Corporation Road, Middlesbrough, TS1 2RW. 

## **2. Statement of Compliance** 

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

## **3. Accounting Policies** 

## **Basis of Preparation** 

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure. 

The financial statements are prepared in sterling, which is the functional currency of the entity. 

## **Going Concern** 

There are no material uncertainties about the charity’s ability to continue. 

## **Changes in Accounting Policies** 

In previous years the value of donated goods was included in the accounts as income and expenditure. In 2020/21 this amounted to £161,691 and comprised various surplus items donated by local firms and business.  These items have no resale value and indeed may not be sold, but must be used by the voluntary sector within their own organisation or given freely to their beneficiaries.  It is therefore considered that including the donated goods in the accounts at retail value as in previous years would distort the accounts and give a false picture.  As a result the value of donated goods is no longer included in the accounts. 

The value of donated goods at retail value for the year is £440,333. 

## **Judgements and Key Sources of Estimation Uncertainty** 

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.  The trustees consider that there are no significant estimates or judgements affecting these financial statements. 

**11** 



## **Middlesbrough Voluntary Development Agency** 

**Notes to the Financial Statements** _**(continued)**_ 

## **Year Ended 31 March 2023** 

## **3. Accounting Policies** _**(continued)**_ 

## **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 future project or commitment. 

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. 

## **Income** 

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income: 

- income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. 

- legacy income is recognised when receipt is probable and entitlement is established. 

- income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers. 

- income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted. 

**12** 



**Middlesbrough Voluntary Development Agency** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year Ended 31 March 2023** 

## **3. Accounting Policies** _**(continued)**_ 

## **Expenditure** 

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates: 

- expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods. 

- expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities. 

- other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities. 

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis. 

## **Tangible Assets** 

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. 

## **Depreciation** 

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows: 

Office Furniture - 20% straight line 

## **Impairment of Fixed Assets** 

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. 

## **Financial Instruments** 

The charity only has financial assets and 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. 

**13** 



**Middlesbrough Voluntary Development Agency** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year Ended 31 March 2023** 

## **3. Accounting Policies** _**(continued)**_ 

## **Defined Contribution Plans** 

Middlesbrough Voluntary Development Agency participates in The Pensions Trust's Growth Plan (The Plan). The Plan is funded and is not contracted out of the State scheme. The Plan is a multi-employer pension plan and the charity is unable to determine its share of the underlying assets and liabilities. The scheme is therefore accounted for as a defined contribution scheme. 

## **Debtors** 

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

Accrued income and tax recoverable is included at the best estimate of the amounts receivable at the balance sheet date. 

## **Cash at Bank and in Hand** 

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

## **Creditors** 

Creditors 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 are normally recognised at their settlement amount after allowing for any trade discounts due. 

## **Taxation** 

The company 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 company 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. 

## **4. Limited by Guarantee** 

The company is limited by guarantee. At 31st March 2023 there were 113 members each of whom had undertaken to contribute an amount not exceeding £1 in the event of a winding up. 

**14** 



## **Middlesbrough Voluntary Development Agency** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year Ended 31 March 2023** 

## **5. Donations and Legacies** 

|||Restricted|**Total Funds**|Restricted|Total Funds|
|---|---|---|---|---|---|
|||Funds|**2023**|Funds|2022|
|||£|**£**|£|£|
||**Grants**|||||
||NHS Resilience grant|–|–|148,410|148,410|
|**6.**|**Charitable Activities**|||||
||||Unrestricted|Restricted|**Total Funds**|
||||Funds|Funds|**2023**|
||||£|£|**£**|
||Middlesbrough Council - core funding||79,564|–|79,564|
||Community Development - You've Got This||–|9,332|9,332|
||Volunteer Centre - Step Forward Tees Valley (SFTV)||–|39,731|39,731|
||Strategic Development -We Care You Care||–|46,500|46,500|
||Volunteer Centre - Outreach Service||–|980|980|
||Distribution Centre||–|6,550|6,550|
||Local Motion||–|350,000|350,000|
||Strategic Development - Chaging Futures||–|134,751|134,751|
||Other charitable income||12,007|1,750|13,757|
||||`────────`|`─────────`|`─────────`|
||||91,571|589,594|681,165|
||||`════════`|`═════════`|`═════════`|
||||Unrestricted|Restricted|Total Funds|
||||Funds|Funds|2022|
||||£|£|£|
||Middlesbrough Council - core funding||79,564|–|79,564|
||Community Development - You've Got This||–|27,997|27,997|
||Community Development - Boro Active Explorers||–|11,192|11,192|
||Volunteer Centre - Step Forward Tees Valley (SFTV)||–|43,887|43,887|
||Strategic Development -We Care You Care||–|51,186|51,186|
||BAME funding||–|17,501|17,501|
||Volunteer Centre - Outreach Service||–|7,908|7,908|
||Other charitable income||2,555|2,000|4,555|
||||`────────`|`─────────`|`─────────`|
||||82,119|161,671|243,790|
||||`════════`|`═════════`|`═════════`|



## **Middlesbrough Council Core Grant** 

A core grant received by Middlesbrough Council to support the charity in its role as the local support and development organisation for Middlesbrough. 

**15** 



## **Middlesbrough Voluntary Development Agency** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year Ended 31 March 2023** 

## **7. Investment Income** 

|||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|---|---|---|---|---|---|
|||Funds|**2023**|Funds|2022|
|||£|**£**|£|£|
||Bank interest receivable|5,566|5,566|1,084|1,084|
|||`═══════`|`═══════`|`═══════`|`═══════`|
|**8.**|**Other Income**|||||
|||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|||Funds|**2023**|Funds|2022|
|||£|**£**|£|£|
||HMRC Job Retention Scheme|–|–|19,943|19,943|
||Secondment income|–|–|36,908|36,908|
||Other income|–|–|4,522|4,522|
|||`────`|`────`|`────────`|`────────`|
|||–|–|61,373|61,373|
|||`════`|`════`|`════════`|`════════`|
|**9.**|**Expenditure on Charitable Activities by Fund Type**|||||
||||Unrestricted|Restricted|**Total Funds**|
||||Funds|Funds|**2023**|
||||£|£|**£**|
||Costs of charitable activities (see page 27)||234,617|259,815|494,432|
||Support costs||28,137|–|28,137|
||||`─────────`|`─────────`|`─────────`|
||||262,754|259,815|522,569|
||||`═════════`|`═════════`|`═════════`|
||||Unrestricted|Restricted|Total Funds|
||||Funds|Funds|2022|
||||£|£|£|
||Costs of charitable activities (see page 27)||216,270|259,058|475,328|
||Support costs||34,455|–|34,455|
||||`─────────`|`─────────`|`─────────`|
||||250,725|259,058|509,783|
||||`═════════`|`═════════`|`═════════`|



## **10. Expenditure on Charitable Activities by Activity Type** 

||Activities|||||
|---|---|---|---|---|---|
||undertaken|<br>Grant funding||**Total funds**|Total fund|
||directly|<br>of activities|Support costs|**2023**|2022|
||£|£|£|**£**|£|
|Costs of charitable||||||
|activities (see page 27)|398,156|<br>96,276|<br>26,817|521,249|505,651|
|Governance costs|–|<br>–|<br>1,320|1,320|4,132|
||`─────────`|<br>`────────`|<br>`────────`|`─────────`|`─────────`|
||398,156|<br>96,276|<br>28,137|522,569|509,783|
||`═════════`|<br>`════════`|<br>`════════`|`═════════`|`═════════`|



**16** 



## **Middlesbrough Voluntary Development Agency** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year Ended 31 March 2023** 

## **11. Analysis of Grants** 

|||**2023**|2022|
|---|---|---|---|
|||**£**|£|
||**Grants to Institutions**|||
||Groundwork|8,040|–|
||Middlesbrough and Stockton Mind|–|4,500|
||Changing Futures|46,362|–|
||Neurological Alliance|–|6,000|
||Together Middlesbrough & Cleveland|–|10,000|
||Carers Together|5,000|5,000|
||CVL|3,810|4,000|
||Rubies|4,944|5,000|
||Red Balloons|5,000|5,000|
||Away Out|4,800|5,000|
||Age UK|4,229|4,229|
||Unforgettable Experiences|4,891|5,000|
||Depaul Centre|5,000|5,000|
||2b Creative Heath|–|4,350|
||The Other Perspective CIC|600|–|
||Durability North CIC|600|–|
||Big Kids|1,000|–|
||Grants awarded in previous years not paid out|–|(4,725)|
|||`────────`|`────────`|
|||94,276|58,354|
||**Grants to Individuals**|||
||Bursaries paid to individuals|2,000|–|
|||`────────`|`────────`|
||Total grants|96,276|58,354|
|||`════════`|`════════`|
|**12.**|**Net Income/(Expenditure)**|||
||Net income/(expenditure) is stated after charging/(crediting):|||
|||**2023**|2022|
|||**£**|£|
||Depreciation of tangible fixed assets|468|468|
|||`════`|`════`|
|**13.**|**Independent Examination Fees**|||
|||**2023**|2022|
|||**£**|£|
||Fees payable to the independent examiner for:|||
||Independent examination of the financial statements|1,200|1,200|
|||`═══════`|`═══════`|



**17** 



**Middlesbrough Voluntary Development Agency** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year Ended 31 March 2023** 

## **14. Staff Costs** 

|The total staff costs and employee benefits for the reporting period are analysed as|The total staff costs and employee benefits for the reporting period are analysed as|follows:|
|---|---|---|
||**2023**|2022|
||**£**|£|
|Wages and salaries|279,785|338,739|
|Social security costs|24,098|29,572|
|Employer contributions to pension plans|8,413|11,020|
||`─────────`|`─────────`|
||312,296|379,331|
||`═════════`|`═════════`|



|The average head count of employees during the year was 10 (2022: 13). The average number|The average head count of employees during the year was 10 (2022: 13). The average number|The average head count of employees during the year was 10 (2022: 13). The average number|
|---|---|---|
|of full-time equivalent employees during the year is analysed as follows:|||
||**2023**|2022|
||**No.**|No.|
|Number of staff|10|13|
||`════`|`════`|
|The number of employees whose remuneration for the year fell within the following bands, were:|||
||**2023**|2022|
||**No.**|No.|
|£60,000 to £69,999|1|–|
||`════`|`════`|



## **Key Management Personnel** 

Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the charity. The total compensation paid to key management personnel for services provided to the charity was £142,795 (2022:£128,815). 

## **15. Trustee Remuneration and Expenses** 

None of the trustees (or any persons connected with them) received any remuneration, expenses or benefits from the charity during the current or previous year. 

## **16. Transfers Between Funds** 

During the year £128,051 was transferred from restricted funds to cover project delivery, overheads and office costs. 

**18** 



## **Middlesbrough Voluntary Development Agency** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year Ended 31 March 2023** 

## **17. Tangible Fixed Assets** 

|||**Fixtures and**|
|---|---|---|
|||**fittings**|
|||**£**|
|**Cost**|||
|**At 1 April 2022 and 31 March 2023**||2,338|
|||`═══════`|
|**Depreciation**|||
|At 1 April 2022||1,404|
|Charge for the year||468|
|||`───────`|
|**At 31 March 2023**||1,872|
|||`═══════`|
|**Carrying amount**|||
|**At 31 March 2023**||466|
|||`═══════`|
|At 31 March 2022||934|
|||`═══════`|
|**Debtors**|||
||**2023**|2022|
||**£**|£|
|Trade debtors|5,240|<br>5,306|
|Prepayments|3,528|<br>686|
|Accrued income|194,074|<br>6,965|
|Other debtors|3,618|<br>–|
||`─────────`|<br>`────────`|
||206,460|<br>12,957|
||`═════════`|<br>`════════`|
|**Creditors:** **amounts falling due within one year**|||
||**2023**|2022|
||**£**|£|
|Trade creditors|1,427|<br>13,716|
|Accruals and deferred income|62,198|<br>19,840|
|Social security and other taxes|6,403|<br>7,513|
|Pension creditor|1,277|<br>–|
|Other creditors|2,179|<br>500|
||`────────`|<br>`────────`|
||73,484|<br>41,569|
||`════════`|<br>`════════`|



## **18. Debtors** 

## **19. Creditors: amounts falling due within one year** 

**19** 



**Middlesbrough Voluntary Development Agency** 

**Notes to the Financial Statements** _**(continued)**_ 

## **Year Ended 31 March 2023** 

## **20. Pensions and Other Post Retirement Benefits** 

## **Defined contribution plans** 

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £8,413 (2022: £11,020). 

Middlesbrough Voluntary Development Agency Limited (MVDA) participates in The Pensions Trust's Growth Plan (The Plan). The Plan is funded and is not contracted-out of the State scheme. The Plan is a multi-employer pension plan. 

The Growth Plan is a "last man standing" multi-employer scheme. This means that if a withdrawing employer is unable to pay its debt on withdrawal the liability is shared amongst the remaining employers. The participating employers are therefore, jointly and severally liable for the deficit in the Growth Plan. 

MVDA has been notified by The Pensions Trust of the estimated employer debt on withdrawal from The Plan based on the financial position of The Plan as at 30 September 2022, calculated using the technical provisions valuation basis. As of this date the estimated employer debt for MVDA was £8,636 (2021 - 11,480). 

A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. 

||2023|
|---|---|
||**£**|
|Provision at start of accounting period|17,953|
|Provision charged during period|(6,473)|
|Provision at end of accounting period|11,480|



**20** 



## **Middlesbrough Voluntary Development Agency** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year Ended 31 March 2023** 

## **21. Analysis of Charitable Funds** 

## **Unrestricted funds** 

|**Unrestricted funds**||||||
|---|---|---|---|---|---|
||At||||**At 31 March**|
||1 April 2022|Income|Expenditure|Transfers|**2023**|
||£|£|£|£|£|
|General funds|278,260|97,137|(262,754)|126,520|239,163|
|Activity fund|70,000|–|–|–|70,000|
|Redundancy fund|37,317|–|–|4,375|41,692|
|Pension provision|11,480|–|–|(2,844)|8,636|
||`─────────`|`────────`|`─────────`|`─────────`|`─────────`|
||397,057|97,137|(262,754)|128,051|359,491|
||`═════════`|`════════`|`═════════`|`═════════`|`═════════`|
||At||||At 31 March|
||1 April 2021|Income|Expenditure|Transfers|2022|
||£|£|£|£|£|
|General funds|312,933|144,576|(250,725)|71,476|278,260|
|Activity fund|70,000|–|–|–|70,000|
|Redundancy fund|25,000|–|–|12,317|37,317|
|Pension provision|17,953|–|–|(6,473)|11,480|
||`─────────`|`─────────`|`─────────`|`────────`|`─────────`|
||425,886|144,576|(250,725)|77,320|397,057|
||`═════════`|`═════════`|`═════════`|`════════`|`═════════`|



## **General funds** 

These funds represent unrestricted resources available for the general work of the charity at the discretion of the Trustees. 

## **Designated funds** 

These funds represent unrestricted resources which have been designated by the Trustees for specific purposes. There are currently three such funds as follows: 

## **i. Activity Fund** 

This is to allow the charity to underwrite activity pending the outcome of negotiations and bids for funding. 

## **ii. Redundancy Fund** 

This is to allow the charity to pay any future redundancy costs which may arise. 

## **iii. Pension Provision** 

The Trustees have taken the decision to allocate the most recent contingent liability notified (see note 21) to a designated fund. 

**21** 



## **Middlesbrough Voluntary Development Agency** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year Ended 31 March 2023** 

## **21. Analysis of Charitable Funds** _**(continued)**_ 

## **Restricted funds** 

|**Restricted funds**||||||
|---|---|---|---|---|---|
||At||||**At 31 March**|
||1 April 2022|Income|Expenditure|Transfers|**2023**|
||£|£|£|£|£|
|Care and Support||||||
|Transformation|17,757|–|–|(17,757)|–|
|We Care You Care|–|46,750|(28,113)|(18,637)|–|
|You've Got This||||||
|(Investment Pro)|861|–|–|(861)|–|
|Step Forward Tees||||||
|Valley (BBO)|–|39,731|(37,140)|(2,591)|–|
|Resilience Fund|63,070|–|(45,714)|(8,505)|8,851|
|Volunteer Centre||||||
|Outreach Service|–|980|(23,846)|22,866|–|
|Period Poverty|1,436|1,500|(787)|(1,436)|713|
|Changing Futures|–|134,751|(55,349)|(78,802)|600|
|You've Got This (I&A)|–|9,332|(9,355)|23|–|
|Distribution Centre|–|6,550|(631)|(2,351)|3,568|
|Local Motion|–|350,000|(58,880)|(20,000)|271,120|
||`────────`|`─────────`|`─────────`|`─────────`|`─────────`|
||83,124|589,594|(259,815)|(128,051)|284,852|
||`════════`|`═════════`|`═════════`|`═════════`|`═════════`|
||At||||At 31 March|
||1 April 2021|Income|Expenditure|Transfers|2022|
||£|£|£|£|£|
|Care and Support||||||
|Transformation|100,818|–|(64,217)|(18,844)|17,757|
|We Care You Care|–|51,186|(25,189)|(25,997)|–|
|You've Got This||||||
|(Investment Pro)|8,215|27,997|(33,073)|(2,278)|861|
|Boro Active Explorers|–|11,192|(11,192)|–|–|
|Step Forward Tees||||||
|Valley (BBO)|388|43,887|(37,531)|(6,744)|–|
|Resilience Fund|–|148,410|(63,079)|(22,261)|63,070|
|BAME|–|17,501|(16,505)|(996)|–|
|Volunteer Centre||||||
|Outreach Service|–|7,908|(7,908)|–|–|
|Period Poverty|–|2,000|(364)|(200)|1,436|
||`─────────`|`─────────`|`─────────`|`────────`|`────────`|
||109,421|310,081|(259,058)|(77,320)|83,124|
||`═════════`|`═════════`|`═════════`|`════════`|`════════`|



**22** 



## **Middlesbrough Voluntary Development Agency** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year Ended 31 March 2023** 

## **21. Analysis of Charitable Funds** _**(continued)**_ 

These funds relate to grants and donations received for specific purposes laid down by the donor. 

## **Boro Active Explorers** 

Funding received via the You've Got This programme for MVDA to work collaboratively with CVL and Middlesbrough Environment City on a short-term project to engage communities with their local environment, increasing physical health and improving mental health.  MVDA has a particular focus on volunteering. 

## **Care and Support Transformation** 

Funding to support VCS development, support and engagement. 

## **LocalMotion Middlesbrough** 

A Funder-led collaborative of six trusts and foundations to support collaborative and community-led change locally, for which MVDA is the accountable/fund holding body, with decisions being made through a local Core Group in line with the agreed terms of reference. 

## **Period poverty** 

A small grant in support the local period poverty initiative, whereby MVDA distributes the goods. 

## **Resilience Fund** 

Non-recurring grant funding via NHS Tees Valley CCG and Tees, Esk and Wear Valley NHS Foundation Trust to provide grants to local VCOs in support of projects around resilience and wellbeing in Middlesbrough. 

## **South Tees Changing Futures** 

Funding via Middlesbrough Council from Department of Levelling Up and Communities and The National Lottery Community Fund on behalf of the South Tees Changing Futures Partnership. Funding to MVDA covers several workstreams: VCS infrastructure; small grants to local VCOs; support of a Lived Experience Network; and in support of activity as part of the programme leadership. 

## **Step Forward Tees Valley (BBO)** 

Funded by The National Lottery Community Fund and the European Social Fund, working in partnership with a wide range of VCS delivery partners, SFTV is supporting people into or towards employment.  MVDA has a particular focus on engagement and volunteering. 

## **Volunteer Centre Outreach Service** 

Grant funding to support MVDA's delivery of the Volunteer Centre functions. 

## **We Care You Care** 

Grant funding associated with the communications and campaigns project that is in support of the local carers strategy. 

## **You've Got This: Insight and Analytics Officer** 

Funding via the Sport England Local Delivery Pilot for South Tees to employ the Insight and Analytics Officer post at MVDA. 

## **You've Got This: Your Active Living Fund** 

Funding to co-ordinate a small grants programme across the South Tees area on behalf of the You've Got This programme, working with RCVDA. 

**23** 



## **Middlesbrough Voluntary Development Agency** 

## **Notes to the Financial Statements** _**(continued)**_ 

## **Year Ended 31 March 2023** 

## **22. Analysis of Net Assets Between Funds** 

||Unrestricted|Restricted|**Total Funds**|
|---|---|---|---|
||Funds|Funds|**2023**|
||£|£|**£**|
|Tangible fixed assets|466|–|466|
|Current assets|432,509|284,852|717,361|
|Creditors less than 1 year|(73,484)|–|(73,484)|
||`─────────`|`─────────`|`─────────`|
|**Net assets**|359,491|284,852|644,343|
||`═════════`|`═════════`|`═════════`|
||Unrestricted|Restricted|Total Funds|
||Funds|Funds|2022|
||£|£|£|
|Tangible fixed assets|934|–|934|
|Current assets|437,692|83,124|520,816|
|Creditors less than 1 year|(41,569)|–|(41,569)|
||`─────────`|`────────`|`─────────`|
|**Net assets**|397,057|83,124|480,181|
||`═════════`|`════════`|`═════════`|



## **23. Analysis of Changes in Net Debt** 

||||||**At**|
|---|---|---|---|---|---|
||At|1|Apr 2022 Cash flows||**31 Mar 2023**|
||||£|£|**£**|
|Cash at bank and in hand|||507,859|3,042|510,901|
||||`═════════`|`═══════`|<br>`═════════`|



## **24. Related Parties** 

There have been no transactions with related parties during the current or previous year. 

**24** 



**Middlesbrough Voluntary Development Agency** 

**Management Information** 

**Year Ended 31 March 2023** 

**The Following Pages Do Not Form Part of the Financial Statements.** 

**25** 



## **Middlesbrough Voluntary Development Agency** 

## **Detailed Statement of Financial Activities** 

## **Year Ended 31 March 2023** 

||**2023**|2022|
|---|---|---|
||**£**|£|
|**Income and endowments**|||
|**Donations and legacies**|||
|NHS Resilience grant|–|148,410|
||`────`|`─────────`|
|**Charitable activities**|||
|Middlesbrough Council - core funding|79,564|79,564|
|Community Development - You've Got This|9,332|27,997|
|Community Development - Boro Active Explorers|–|11,192|
|Volunteer Centre - Step Forward Tees Valley (SFTV)|39,731|43,887|
|Strategic Development -We Care You Care|46,500|51,186|
|BAME funding|–|17,501|
|Volunteer Centre - Outreach Service|980|7,908|
|Distribution Centre|6,550|–|
|Local Motion|350,000|–|
|Strategic Development - Chaging Futures|134,751|–|
|Other charitable income|13,757|4,555|
||`─────────`|`─────────`|
||681,165|243,790|
||`─────────`|`─────────`|
|**Investment income**|||
|Bank interest receivable|5,566|1,084|
||`───────`|`───────`|
|**Other income**|||
|HMRC Job Retention Scheme|–|19,943|
|Secondment income|–|36,908|
|Other income|–|4,522|
||`────`|`────────`|
||–|61,373|
||`────`|`────────`|
||`─────────`|`─────────`|
|**Total income**|686,731|454,657|
||`═════════`|`═════════`|



**26** 



## **Middlesbrough Voluntary Development Agency** 

## **Detailed Statement of Financial Activities** _**(continued)**_ 

## **Year Ended 31 March 2023** 

||**2023**|2022|
|---|---|---|
||**£**|£|
|**Expenditure on charitable activities**|||
|**_Activities undertaken directly_**|||
|Wages and salaries|279,785|338,739|
|Employer's NIC|24,098|29,572|
|Pension costs|8,413|11,020|
|Legal and professional fees|1,177|3,040|
|Meetings and events|3,036|–|
|ICT|7,015|16,901|
|Depreciation|468|468|
|Service Delivery - Project Activities|10,504|–|
|Travel and training|6,086|2,729|
|Specialist Support|54,565|11,665|
|Other costs|3,009|2,840|
||`─────────`|`─────────`|
||398,156|416,974|
||`─────────`|`─────────`|
|**_Grant funding activities_**|||
|Grants payable to partners|96,276|58,354|
||`────────`|`────────`|
|**_Support costs_**|||
|Insurance|1,735|1,355|
|Premises costs|18,021|19,147|
|Telephone and internet|3,806|4,370|
|Printing, postage and stationery|1,117|1,814|
|Office sundries|2,138|3,637|
||`────────`|`────────`|
||26,817|30,323|
||`────────`|`────────`|
|**Governance costs**|||
|Governance costs - accountancy fees|1,200|4,050|
|Bank charges|120|82|
||`───────`|`───────`|
||1,320|4,132|
||`───────`|`───────`|
||`─────────`|`─────────`|
|**Total expenditure**|522,569|509,783|
||`═════════`|`═════════`|
||`─────────`|`─────────`|
|**Net income/(expenditure)**|164,162|(55,126)|
||`═════════`|`═════════`|



**27**