Qegi£WCLr COMPANY NUMBER: 05031398 CHARITY NUMBER: 1108921 KEY COMMUNITY (Company Limited by Guarantee) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
KEY COMMUNITY INDEX YEAR ENDED 31 MARCH 2024 Contents Pages Legal and Administration Infomiation Trustees. Report 3-10 Independent Auditors Report to the Trustees Statement of Financial Activities 15 Statement of Financial Position 16 Statement of Cash Flows 17 Notes to the Financial Statements 18-30
KEY COMMUNITY LEGAL AND ADMINISTRATIVE INFORMATION YEAR ENDED 31 MARCH 2024 Registered Charity Name Key Community (will be referred to as KEY throughout these financial statements) Registration Numbers Charity Number 1108921 Company Number 05031398 Trustees P. Hayton S. Hamilton l. Montgomery (Resigned 1610512024) E. Hobson (Resigned 0310112024) K. Shields (Resigned 0310112024) D. Traynor (Appointed 0810612023) l. Ogden (Appointed 0810612023) (Trustees are also the directors of KEY for the purposes of company law) Company Secretary R. Allen Registered Office 116 Baring Street South Shields Tyne & Wear NE33 2BA Auditors Torgersens East Suite, Ground Floor Avalon House St Catherine's Court Sunderland SR5 3XJ Bankers Unity Trust Bank Pl 4 Brindley Pla Birmingham B12JB Central Finance Board of the Methodist Church 25 Tavistock Place London VIlC1 H 9SF Barclays Bank PIC 53 Fawlt Street Sunderland SR11RS
KEY COMMUNITY LEGAL AND ADMINISTRATIVE INFORMATION (Continued) YEAR ENDED 31 MARCH 2024 Bankers (contlnued) Shawbrook Bank Limited Lutea House Vr1eY Hill Business Park The Drive Great IAlarley BrenOod Essex CM13 3BE The Charity Bank Limited Fosse House 182 High Street Tonbridge TN91BE Insignis Cash Solutions St John's Innovation Centre Milton Cambridge CB4 OWS Solicitors Hardings 22 Foyle Street Sunniside Sunderland SR11LE
KEY COMMUNITY THE TRUSTEES, REPORT (INCORPORATING THE DIRECTORS, REPORT) YEAR ENDED 31 MARCH 2024 GOVERNING DOCUMENT The organisation is a charitable company limited by guarantee, incorporated on 2nd February 2004 and registered as a charity on 7th April 2005. The company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up, members are required to contribute an amount not exceeding £10. In 2024, Key Community refined its Goveming Document and now reads.. Charitable Objects.. To relieve poverty, sickness, and distress among young people in South Tyneside. To advan the education and training of young people in South Tyneside. particularly those who are in conditions of need, hardship, or distress. To provide facilities for recreation and other leisure-time occupation for young people in South Tyneside in the interests of social welfare, with the aim of improving their conditions of life. OFSTED Key has successfully registered their Askins Lodge project with OFSTED, ensuring compliance with new regulations regarding the housing of 16 - 17-year-olds. This registration allows Key to continue to provide essential accommodation and support to vulnerable young people in South Tyneside. The new legislative changes mandate that all housing projects for this age group meet specific standards to ensure safety and quality of care. By achieving OFSTED registration, Askins Lodge can maintain its high standards and continue offering a safe, supportive environment where young residents can develop the skills needed for independent living. This milestone underscores Key's commitment to adapting to regular changes and prioritising the well-being of the young people we serve. RECRUITMENT AND APPOINTMENT OF BOARD OF DIRECTORS At the 2023 AGM the following directors were reappointed: Penny Hayton Chair Steve Hamilton Deputy Chair lan Montgomery Treasurer Resignation of Board Directors.. Elizabeth Hobson Keith Shields TRUSTEE INDUCTION AND ONGOING TRAINING OF DIRECTORS The Chair, together with the trust&s, identifies the skn.lls and expertise needed to ensure the Board is diverse and well-equipped to carry out rts duties and resFX)nsibilities. New Trustees meet with the Chair and the Chief Executive Officer to discuss their role and involvement within the organisation. They are supported by the Chair and other Trust&s at all times. Every opportunity is used to ensure Trustees, both those who have seNed for a long time and those who are new to the role, have access to training delivered by organisattons such as ASVO and the Local Authority. New Trustees are taken by the Chief Executive Officer for a tour of the Organisation's offices and Supported Accommodation. This is an opportunity for Trustees to meet with staff who can then explain their roles within the Charity. Staff are invited to Board Meetings where they will give a presentation outlining their service. This has proved to be of great value to Trustees and gives a very clear picture of how the operations are planned and delivered. In January, Key Communty held its first Board Development Day. Tasks included.. IAfj)at are the qualits'es of a good Trustee? Developing the organisation's values. Looking at The Charity Code and identifying the areas where we feel confident and those areas which need development.
KEY COMMUNITY THE TRUSTEES, REPORT (INCORPORATING THE DIRECTORS, REPORT) YEAR ENDED 31 MARCH 2024 ORGANISATION STRUCTURE The Board is made up of people from professional backgrounds including homelessness, housing, finance, education, legal, managerial, and engineering. The Board meets every 2 months and is responsible for the strategic direction and policy of the charity. Decisions are made by the Board at their regular meetings. Additional meetings are called when the need arises. The levels of remuneration of Key staff are made at the Board meetings in line with policy. RECRUITMENT OF VOLUNTEERS Volunteering is at the core of Key's ethos. This year, 42 people volunteered at Key and its associated Key2Life foodbank. These volunteers have taken part in the following training: Safeguarding Hate crime champion training Food hygiene certificate Manual handling One of these volunteers is now working with Greggs via the Fresh Start Scheme and two others are now in full-time employment. One volunteer has been involved with our young people at one of our supported accommodats.on properties. Activities supported by the volunteer: Cooking sessions Picnic BBQ Gardening Helping Young People to complete their personal journeys. Training completed by this volunteer. Safeguarding children and adults Keeping children safe online Food hygiene All volunteers who handle telephone calls or work one-to-one with young people have a DBS certificate. RISK MANAGEMENT Appropriate systems and procedures have been established to mitigate the risks which the charity faces. These indude: Health and safety Recruitment and Selection Safeguarding Data protection and policies related to the delivery of ServIS in accordance with the Supporting People contract and national guidelines. Robust financial procedures are in place with regular checks on petty cash and financial inft)rmation reported to the Trustees at each Board meeting. With the UnrtaInty of conb'nued outside funding, a Reserves Policy has been established with the intention of building up reserves of 6 months. expenditure. Key is working towards long-term sustainability by: Recruiting Board members with appropriate skills. Building a strong and committed staff. Diversifying its funding and developing new fijnding streams. Increasing its volunteer body of local people. Developing strong support from the local community. Working in partnership with other organisations. The Board operates standing committeeslworking groups comprising TrUStS and working staff as well as young people to oversee the various aspects of the charity's work. The day-to-day operational responsibilty lies with the Chief Executive Officer, who manages the stsff teams. ensuring they deliver services within agreed contracts and that those ServIS continue to meet the needs of the servi users.
KEY COMMUNITY THE TRUSTEES, REPORT (INCORPORATING THE DIRECTORS, REPORT) YEAR ENDED 31 MARCH 2024 RELATED PARTIES Key provides residential support at Flavia House, which is owned by the Durham Diocese and managed by Bernicia Homes. Residential support is also provided by Key at Askins Lodge, which is owned by Karbon Homes and leased to Key. Key is a partner of the South Tyneside Consortium for Youth Homelessness. Other parties include De Paul UK and PlaS for People. Key Community works collaboratively with Churches Together and is supported by other local churches in practical ways. PURPOSES 1. The provision of relief for young people in necessitous circumstances who are, have been, or are at risk of being homeless including (but without prejudi to the provision of other forms of reliefj the provision of supported accommodation, family relationship breakdown intervention and mediation, advice and counselling. 2. The relief of financial hardship amongst people in South Tyneside and the surrounding area in such ways as the trustees from b'me to time think fit, in particular, but not exclusively by: a) Providing emergency food, essential toiletries, and household items to individuals and families in need andlor for distribution by charities or other organisations working to prevent or relieve povety- b) Such other means, including (but not limited to) the provision of support or signposting to relevant information and other advisory services Public Benefit Disclosure The trustees have given due consideration to the Charity Commission's published guidan on the Public Benefit requirement under the Charities Act 2011. Vision KEY Community (formerty South Tyneside Churches, KEY Project) seeks to be a practical application of loving your neighbour and reaching out to those in need. Committed to the care and support of young people, the Project works in partnership with other agenCS to motivate and guide young people experiencing hardship in South Tyneside through a process of posrfive change. Mission We a committed to helping young people between 16 - 25 years of age. living in hardship in South Tyneside, to live independent and successful lives. We actively promote and support collaborative working between voluntary and private sector organisations and statutory bodies. ACHIEVEMENTS AND PERFORMANCE Aim 1: To prevent homelessness Objective 1: Provide advice and guidance to help a young person decide if they can remain at home or need to move out. 197 young people were given advice and guidance around housing needs. Referrals come from.. Children's Services Schools Housing Department Self-Referral Consortium- De Paul UK Local Authority early help Internal referral - supported accommodation and tenancy support Community mental health SeNiS Adult servi
KEY COMMUNITY THE TRUSTEES, REPORT (INCORPORATING THE DIRECTORS, REPORT) YEAR ENDED 31 MARCH 2024 Objectlve 2: Provide mediation support to young people and their famllles to reduce conflict and improve relationships within the home to enable the young person to remain at home if this is a safe option. It is not only the young people who have been supported but the household in which they are living. this can include parents. carers, and younger siblings. 207 young people have been helped, through our Mediation SeNice, to remain in the family home. The Prevention Team uses our Mediation Room to help with many domestic issues such as debt and housing problems. Vthen problems have been beyond our expertise. we have accompanied parents to CAB for help and advice. Objective 3: Raise awareness of the realities of being homeless Staff give talks to local schools, colleges, churches, community groups, the Local Authority. and community organisations. Every opportunity is taken to publicise our work in the local press and social media. Biannual newsletter available in print and online Homelessness stories Marketing and Communication Offir Key 2 Lrfe Facebook Key Facebook Features in local media Fundraising and awareness Talks and presentations Aim 2: Prepare young people for Independent living. Objective 1: Provide supported shared accommodation for up to l year at Askins Lodge (18 beds), Flavia Hous015 beds), Strickland House15 beds). 57 young people were accommodated in our shared supported housing projects. Objective 2: Provide young people with move-on accommodatlon following their stay at one of our supported accommodation propertles whère they can begin to live independently with a lower level of support for 2 or more years. 13 young people were given a lower level of support in one of our move-on properties. 18 young people were supported to move into properties with their own tenancies. Aim 3: To enable young people to take opportunities for education, training. employment. and wellbeing. Objective 1: Learn life skills Key promotes activities in supported housing projects to encourage healthy lifestyles. These include: Keep fit Zumba Pilates Yoga Cookery sessions, including breakfast and lunch The Prince's Trust - Education and Training BBQ
KEY COMMUNITY THE TRUSTEES, REPORT (INCORPORATING THE DIRECTORS, REPORT) YEAR ENDED 31 MARCH 2024 Activities facilitated by the Prevention Team include.. Arts and Crafts First Aid Cookery Wellbeing Healthy and unhealthy relationships Keeping yourself safe Key provides bursary grants to help young people overcome barriers to employment, education, and training. Bursaries and grants cover the costs for our young people to access college, training, and employment, e.g., bus fares. books, and equipment when these are not provided by the college or place of work. This year, bursaries and grants were applied for and granted as follows: Prevention and Mediation: 2 Tenancy Support: 14 Key's Prevention Team provides every young person and their families with skills and strategies to help reduce arguments in the family home. This year, 37 young people were supported around wellbeing issues and assisted in accessing services that met their needs. This included CYPS, Talking Therapies, Escape Inteniention, and our Wellbeing Practitioner. Key's Prevention Team supported 55 young people to remain in and improve their attendance at education (school or college). Working with the young people and their families, we were able to rebuild relationships. Those who could not return home were able to access our supported accommodation, which helped their wellbeing and enabled them to conntrate on their education. Objoctive 2: Arrange opportunltles to tske part in leisure and communlty actlvlties. Cookery sessions, including breakfast, lunch, and Christmas Dinner in supported accommodation properties. Cookery sessions through the youth group for young people in schools. Cookery sessions on Key's Community Bus. Excursions to Alnwick Gardens, Flamingo Land, Washington Ilfjldlife Park, and Whitehouse Fami. Objective 3: Arrange opportunities to reflect on current issues. Our young people, through group sessions and one-on-one sessions in our supported accommodation properties, have discussed the cost of living crisis and the effects of the war in Ukraine. Objective 4: To support the mental health needs of young people. The Key Community Wellbeing Service is a compassionate and empathetic support system designed to cater to the needs of vulnerable young people facing various challenges such as anxiety, relationship problems, anger issues, and feelings of low mood. Wrth a focus on understanding and valuing the individual, this Servi operates within schools in South Tyneside, South Tyneside College, and Key Community supported housing accommodation and move-on properties. Between 31st March 2023 and 31 st March 2024, 61 young people have been supported by Key's Wellbeing Service. 88 positive outcomes have been achieved by young people within the service, including progression in emotional wellbeing, increased positive outlook. and redUd feelings of low mood and depression. O young people have been referred to extemal services for higher intensity intervention. 7 young people have retumed to the Wellbeing Counselling Service to re-engage with support. 1 pSycheducatiOnal group has been completed.one of the significant factors contributing to the effectiveness of the counselling service is the ability to independently manage caseloads. The flow and remit of the referral process minimize the waiting time for clients, differentiating Key Community from other seNices where lengthy waiting lists are common.
KEY COMMUNITY THE TRUSTEES, REPORT (INCORPORATING THE DIRECTORS, REPORT) YEAR ENDED 31 MARCH 2024 Aim 4: To meet the needs of young people requiring crisls support. Objective 1: Provido emergency food packs, including food, ¢l•anlng materfals, tollotri•s, and sanltary Items. 46 young people from our accommodationloutreach ServIS received a food parcel. 5400 adults, 2600 children, and 2300 pets were fed at the Key2 Life Foodbank. We have provided 1078 family parcels to households with children under the age of 16 and 2816 emergency parls. 350 National Fuel Bank Foundation referrals vrfere made. Key Community Bus: The Key Community Bus is a vital initiative by Key, aimed at reducing food waste and promoting access to healthy, affordable food in South Tyneside. Operating on Tuesdays, Wednesdays. and Thursdays, the bus travels to various locations, providing a mobile food service that requires no membership and is open to everyone, regardless of their circumstances. The lower deck offers a variety of Iow-COSt groceries, while the upper deck serves as a community space where people can chat, access advice, participate in actiVFties, and even enjoy a mini library. This innovative project not only helps residents save on their weekly shopping but also fosters a sense of community and support. Objective 2: Provide furnlture and household fumishings. Key staff, depending on the circumstances of the young person, will apply for a grant to assist with household fijrnishings and funding. Key also receives donats'ons from the local community. During the period 31st March 2023 to 31st March 2024, the Tenancy Support team applied for 14 grants. Objective 3: Provlde advocacy with ¢risis loans, benefit claims, and sanctlon appeals. staff at Key work with young people to enable them to claim benefits, budget effectively as their financial circumstances frequently change, and advocate for them in dealings with utility companies, landlords, Housing Benefit. and Job Centre Plus. Young people are helped to complete online advance payment applications for Universal Credit. Key's Prevention Team occasionally assists families with making new benefit clairns as young people were estranged from family members. They supported families with appeals around benefft claims, for example, Personal Independen Claims (PIP). They also helped to redu rent arrears so that families could remain in their homes. Key has a bursary scheme which supports young people who are entering into education or training. This can cover the initial costs of transport, equipment. or other items that will help them sucCd in their role. We achieve our aims by working in parknership with other agencies and other faithlvoluntary organisations by: Networking with the local community, voluntary, private sector. and statutory dieS. For example, the Stakeholder Group for Flavia House meets regularly with our partners, Bernicia Homes, Northumbria Poli, Flavia House Neighbours, and South Tyneside Council. Working viith other Housing Providers.. Key meets regularly with other housing providers such as De Paul, Places for People, and Community Campus 87, to share good practi and to discuss concerns relating to fvnding and sustainabilty of services in a changing climate.
KEY COMMUNITY THE TRUSTEES, REPORT (INCORPORATING THE DIRECTORS, REPORT) YEAR ENDED 31 MARCH 2024 Forniing Appropriate Partnerships: Key Community has been working with Durham DI0Se and Bernicia Homes for 14 years and with Karbon Homes for 7 years to provide supported living accommodation. Key Community helped establish the South Tyneside Consortium for Youth Homelessness in collaboration with De Paul UK and Places for People. As a consortium, these three organisations provide integrated pathways for young people to aCSS homelessness ServIS in South Tyneside. This indudes attending weekly meetings for HAPPS (Homeless AllatiOn Pathway Planning Support). Key Community partners with Churches Together South Tyneside to run Key2 Life, a poverty alleviation project based at the library on Boldon Lane, South Shields. This project includes a foodbank providing ft)od for young people and the wider community. a fuel voucher scheme, School Uniforms 4 All, and a food and fun holiday programme. Funding was received from Brakes to offer holiday clubs and a 'Big Day Our to Seahouses. Continuing with wlder strategic planning, Key's Chlef Executlve Officer attends meetings organised by South Tyneside Council, includlng: Homelessness Forum Local Safeguarding Children's Board Regional Youth Homelessness Nehvork Children's and Family Boa BUSINESS PLANNING Buslness Plan Key Community's current business plan extends until 2027. We are actively working towards fulfilling the objectives set out in this plan, which include enhancing our support services, expanding our accommodation facilities. and increasing community engagement. The plan outlines strategic goals airned at ensuring long-term sustainability and effectiveness in meeting the needs of vulnerable young people in South Tyneside. Future Plans Key Community is looking to expand its property wrtfolio to continue supporting and meeting the needs of the most vulnerable in society. Thi5 includes acquiring new properties for supported accommodation and developing partnerships with local housing providers. Additionally, we aim to enhance our service offerings by integrating more comprehensive mental health and wellbeing support, as well as increasing our outreach programs to prevent homelessness. Reserves Policy The financial review for the year ending 31st March 2024 highlights the charity's financial health and sustainability. Key Community has maintained a stable financial position, with income generated from grants, donations, and fundraising activities. Expenditure has been carefully managed to ensure funds are directed towards our core services and support programs. The estsblishment of a Reserves Policy aims to bui5d up reserves equivalent to six months, expenditure, provtding a financial buffer against future uncertainties. Reference should be made to note 17 and 18 on pages 25 to 30 of the accounts.
KEY COMMUNITY THE TRUSTEES, REPORT (INCORPORATING THE DIRECTORS, REPORT) YEAR ENDED 31 MARCH 2024 Investment Policy Key Community's investment policy is designed to ensure the prudent management of the charity's funds. Investments are made with the primary objective of preseNing capital while generating a reasonable retum. The policy outlines the criteria for selecting investment opportunities, focusing on low-risk options that align with the charity's ethical stsndards. Regular reviews of the investment portfolio are conducted to ensure compliance with the policy and to adjust strategies as needed to respond to changing market conditions. RESPONSIBILITIES OF TRUSTEES The charity trustees (who are also the directors of KEY for the purposes of the company law) have prepared this trustees, annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charitable companies in England and INales requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charty for that period. In preparing these financial statements, the trustees are required to.. select suitable accounting policies and then apply them consistentty. observe the methods and principles in the applicable Companies Act 2006 and Charities SORP, make judgments and accounting estimates that are reasonable and pwdent" state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements., prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements compty with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. And signed on their behalf.. Penny Hayton /oilzS -10-
KEY COMMUNITY INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF KEY COMMUNITY YEAR ENDED 31 MARCH 2024 Opinion INe have audited the financial statements of Key Community (the 'charity') for the year ended 31 March 2024 which comprise the statement of financial position, statement of cash flows and the related notes, including a summary of significant accounb.ng 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 ACpted Accounting Practi). 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; have been prepared in accordan with the requirements of the Companies Act 2006. Basls for opinion Ilve 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 auditorfs responsibilities for the audit of the financial ststements section of our report. Vle 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. INe believe that the audit eviden we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons 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 perfomed, we have not identified any material uncertainties relating to events or conditions that, individually or collectivety, may cast significant doubt on the charitable company's ability to continue as a going conrn for a period of at least fvrfelve 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 sects.ons of this report. Other infomiation The other information comprises the infomiation induded in the annual report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained in the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent othepwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and. in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otheNise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information. we are required to report that fact. Vve have nothing to report in this regard. 11
KEY COMMUNITY INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF KEY COMMUNITY YEAR ENDED 31 MARCH 2024 Opinions on other matters prescrfbed 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 stateffents are prepared is consistent with the financial statements" and the trustees, report has been prepared in accordance with applicable legal requirements. Matters on whlch 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 identiffied material misstatements in the trustees, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 20C6 requires us to report to you if, in our opinion.. adequate accounting records have not bn kept, or returns adequate for our audit have not been reiVed from branches not visited by us,. or the financial statements are not in agreement with the accounting records and returns" or certain disclosu$ of twstees, 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 advantsge of the small companies. exemptions in preparing the directors. report and from the qUirement to prepare a strategic report. Responsibilities of trustees As explained more fully in the trustees, responsibilities statement set out on page 7, the trUStS (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 neSSary 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 sponsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concem basis of accounting unless the trUStS either intend to liquidate the charity or to cease operations, or have no realistic altemative but to do so. Auditorfs responsibilities for the audlt of the flnanclal 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 aNvays 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 Influen the onoMiC decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non<0mplian with laws and regulations. We design ProdureS 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 irregularrties, including fraud is detailed below: 12-
KEY COMMUNITY INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF KEY COMMUNITY YEAR ENDED 31 MARCH 2024 Explanatlon as to what extent the audit was considered capable of d•ts¢ting irregularities, Includlng fraud The objectives of our audit with regards to fraud are to design tailored and specific audit procedures to enable us to gather sufficient audit eviden. These tests are proportionate and appropriate to the charitable company in terms of assessed risk level and the nature of the entity's activities. However, the primary responsibility for the prevention and detection of fraud rests with those charged with govemance. We obtained an understanding of the legal and regulatory requirements which applied to the charitable company, which we deemed to be the Companies Act 2006, and Statement of Recommended practi to charities, the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP (FRS102)). We obtained an understanding of how the charitable company had complied with these regulab'ons by reviewing their treatment of transactions. reviewing minutes of meetings and discussing Complian with trustees and those charged with governan. We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and identified that income from housing benefit and service charges is most susceptible to fraud or error. We designed our audit work to test the controls in place regarding the processing of these transactions and how these controls are capable of preventing or detecting fraud or error. Our audit procedures gathered evidence to support the claims of the trustees whilst maintaining professional scepticism to allow us to draw our own conclusion on the matter. As part of an audit in accordan with ISAS (UK), we exercise professional judgment and maintain professional sptiCIsM throughout the audit. We also: Identify and assess the risks of material misststement of the financial statements, whether due to fraud or error, design and perfom audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery. intentional omissions, misrepresentations, or the override of intemal control. Obtain an understanding of intemal control relevant to the audit in order to design audit prOdureS that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the intemal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. Conclude on the appropriateness of the trustees, use of the going concem basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concem. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorfs report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorfs report. However, future events or conditions may cause the charity to ase to continue as a going COnM. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underfying transactions and events in a manner that achieves fair presentation. 13-
KEY COMMUNITY INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF KEY COMMUNITY YEAR ENDED 31 MARCH 2024 We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in intemal control that we identfy during our audit. Use of our report This report is made solely to the charitable company's members, as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditoffs report and for no other purpose. To the fullest extent pennitted by law, we do not accept or assume responsibilty to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have fomed. Alison Henshaw FCCA (Statutory Auditor) For and on behalf of TORGERSENS Chartered Accountants & Statutory Auditor East Suite, Ground Floor Avalon House St Catherine's Court Sunderland SR5 3XJ Date 2E/ol Izs 14-
KEY COMMUNITY STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2024 Unrestricted Funds Restrlcted Funds Total 2024 Totsl 2023 Not• INCOME Income and Endowments from: Donations 13,784 60,812 74,596 48,441 Charitable Activities 1.159,842 420,676 1,580,518 1,538,801 Investments 21,771 21,771 4,610 Total Incoming Resources 1,195,397 481,488 1,676,885 1,591,852 EXPENDITURE Expenditure On: Raising Funds 2,804 2,804 13,857 Charitable Activities 1,175,240 408,041 1.583,281 1.396,453 Total 1,178,044 408,041 1,586,085 1,410,310 Net Incomlngl(Outgoingl Resources 17,353 73,447 90,800 181,542 Transfers Between Funds (4,006) 4,006 NET MOVEMENT IN FUNDS 13,347 77,453 90,800 181,542 Total Funds Brought Forward 1,542,071 411,845 1,953,916 1,772,374 Total Funds Carrled Forward 1,555,418 489,298 2,044,716 1,953,916 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 30 fom art of these financial statements
KEY COMMUNITY STATEMENT OF FINANCIAL POSITION YEAR ENDED 31 MARCH 2024 2024 2023 Note FIXED ASSETS Tangible Fixed Assets 13 574,714 600.662 CURRENT ASSETS Debtors Cash at Bank and in Hand 14 479,921 1,092,421 330,730 1,149,093 1,572,342 1,479,823 CREDITORS: Amounts falling due within one year (102,340) (126,569) NET CURRENT ASSETS 1,470,002 1,353,254 NET ASSETS 2,044,716 1,953,916 THE FUNDS OF THE CHARITY Restricted I ncome Funds Unrestricted Funds 17 18 489,298 1,555,418 411,845 1.542,071 2,044,716 1,953,916 The trustees acknowledge their responsibilities for.. (i) ensuring that the charitable company keeps proper accounting records which comply with section 386 of the Act,. and {iil preparing financial statements which give a true and fair view of the stste of affairs of the charitable company as at the end of the financial year and of its incoming resources and application of resources, including its surplus or deficit for the financial year in accordan with the requirements of section 394 and 395, and which otherwise comply with the requirements of the Act relating to financial statements, so far as applicable to the charitable company. These financial statements have been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006 and in accordan with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,. These financial statements were approved by the trustees on behalf by: and are signed on their P. Hayton l. Ogden Company number 05031398 The notes on pages 18 to 30 form part of these financial statements 16-
KEY COMMUNITY STATEMENT OF CASH FLOWS YEAR ENDED 31 MARCH 2024 2024 2023 Surplus for the Year 90,800 181,542 Adjustments For: Depreciation and tangible fixed assets impairment of 25,948 Movement in Working Capital: {Increase)IDecrease in Debtors Increasel(Decrease) in Creditors (149,191) (24,229) (108,648) 92,125 (173,420) (16,523) Cash Generated from Oporations (56,672) 165,019 Investing Activities Purchase of Tangible Fixed Assets (129,741) Net Increase in Cash and Cash Equivalents (56,672) 35,278 Cash and Cash Equivalents at Beginning of Year 1,149,093 1,113,815 Cash and Cash Equlvalonts at end of Year 1,092,421 1,149,093 The notes on pages 18 to 30 form art of these financial statements
KEY COMMUNITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 General Infomiation The o)mpany is a private company limited by guarantee, registered in England and Wales, as well as being a registered Charty. The address of the registered Offi is 116 Baring Street, South Shields. Tyne & Wear, NE33 2BA. Statement of compliance These financial statements have been prepared in Complian 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 Charities Act 2011. Accounting Policies Basis of Accounting These financial statements have been prepared under the historical cost convention and in accordance with" the Statement of Recommended Practi, 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance wrth the Financial Reports"ng Standard applicable in the UK and Republic of Ireland (FRS 102)"; the special provisions of Part 15 of the Companies Act 2006 ("the 2006 Act.) relating to small companies., and FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland,. The financial statements are presented in sterling (£), which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest Tangible Flxed Assets All fixed assets are included at cost. Depreciation Depreciab'on is calculated to write down the cost, less estimated residual value of all tangible fixed assets over their expected useful lives. Properties are maintained to such a standard that any depreciation is deemed to be immaterial. Motor Vehicles 20Yo Straight Line Incoming Resources All incoming resources are included in the statement of financial activities when the charty is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income= Voluntary income is received by way of grants, donations and gifts and is included in full in the Statement of Financial Activities when receivable. Grants, where entitlement is not conditional on the delivery of a specific performance by the charity. are recognised when the charity becomes unconditionally entitled to the grant. Investment income is included when receivable. Resources Expended Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates: Charitable activity expenditure comprises those costs incurred by the charity in the delivery of its activities and ServIS for its benefi'ciaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. All costs are allocated between the expenditure categories of the SOFA on a basis designated to reflect the use of the resour. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis. 18-
KEY COMMUNITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 Accounting Pollcles (contlnued) Golng Concem There are no material uncertainties regarding the charity's ability to continue as a going concern. Financial Instruments Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equty instruments. An equity instrument is any contract that eVIdenS a residual interest in the assets of the charitable company after deducting all of its liabilities. Value Added Tax Value Added Tax is not recoverable by the charity and as such is included in the relevant costs in the Statement of Financial Activities. Taxation Due to the company's charitable operations no corporation tax is payable on the results for the year. Fund ofAc¢ounting Funds held by the charity are: Unrestricted general funds - these are funds which can be used in accordance with the charitable objects at the discretion of the trustees. Designated funds - these are funds set aside by the trustees out of unrestricted general funds for specific future purposes or projects. Restricted funds - these are funds that can only be used for partÉcular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Operatlng loases Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis. Defined contribution plans Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. Imien contributions are not expected to be settled wholty within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises. VOLUNTARY INCOME- DONATIONS AND GRANTS Unrestricted Funds Restricted Funds Total 2024 Total 2023 Donations - General - Food Bank - Great North Run BUS Project Corporate - Grft Aid 12,642 12,642 38,413 501 22,399 500 141 9,355 34.086 38,413 501 22,399 5,000 500 141 Income from donations in 2023 was £48,441 of which £9,355 was unrestricted and £39,086 was restricted.
KEY COMMUNITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 INCOME FROM CHARrrABLE ACTIVITIES Unrestricted Funds Rostrfcted Funds Total 2024 Total 2023 Anson Close Income Askins Lodge- Income Askins Lodge servIs Askins Cottages Dispersed Properties - Income Flavia House Heaton Gardens Hedley Close Strickland House Income Trinity Walk 116 Baring Street- Rent from flat Baring Street- Rent from desks Accommodation grant Act 435 Barbour Ballinger Grant BBC Children in Need BUS Project- Community Foundation Consortium Community Foundatton Community Foundatton - Outreach Charities Trust - Nationwide Community Foundation- Rising Stars Family Intervention BBC Children In Need Food Bank - Grants Great North Run Greggs Henry Smith Leathersellers LGA Mercers South Tyneside Council - Jarrow Unit SMP Recovered 19,706 518,744 53,264 19,706 518,744 53,264 15,034 477,347 Commissioned 159,189 78,803 130,283 19,640 19,635 103,062 14,348 20,906 137 159,189 78,803 130,283 19,640 19,635 103,062 14.348 20,906 137 48,111 1,780 139,251 69,086 124,208 17,834 13.376 93,473 18.977 1,644 43.829 1,070 5,000 15,000 500 183,890 101,160 10,098 2,750 48,111 1,780 20,000 20,000 63.640 101,896 15.917 500 7,305 63,640 101,896 15,917 500 7,305 19,896 39,367 33,180 33,180 14,137 62,297 76,434 55,798 913 100 34,200 15,000 10,000 30,000 33,050 15,000 10,000 33,050 15,000 10,000 8,000 8,000 7,988 7,988 420 580 Income from charitable activities in 2023 was made up of unrestricted funds of £975,230 and restricted funds of £563,571. -20-
KEY COMMUNITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 INVESTMENT INCOME 2024 2023 Cash investments held in the UK Investment income in both 2024 and 2023 was unrestricted. EXPENDITURE ON RAISING FUNDS Unrestrlcted Funds Restricted Funds Total 2024 Total 2023 Advertising, marketing and development Other fund raising costs 2,780 2,780 13,807 24 24 50 804 Expenditure on raising funds in 2023 was £30 restricted and £13,827 unrestricted. -21
KEY COMMUNITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 EXPENDITURE ON CHARITABLE ACTMTIES Unrestricted Restrlcted Funds Funds Totsl 2024 Total 2023 Anson Close Askins Lodge Askins Lodge - Commissioned SeNices Askins Cottages Dispersed properties - set up and running costs Flavia House- salaries and running costs Heaton Gardens - running costs Hedley Close- running costs Strickland House- salaries and running costs 116 Baring Street- flat costs Trinty Vvalk Voids Bsd debts wrote off Accommodation managers Act 435 All Churches Trust Bank charges Baring Street- running costs BUS Project Client expenses Coalfields Communications Community Foundation - Salary costs Client Involvement Charities Trust - Nationwide Community CAN NE Family Intervention - salary costs Family Intervention - BBC Children in Need Food Bank - Consumables Advertising Salary and costs Holiday Hunger - Rent Greggs Travel -van Volunteer expenses Cleaning Project Costs Office Supplies General office (computer, stationery etc) Governance cost HR Insurance 14,315 496,454 43,C69 90,118 56,734 97,373 14,150 11,942 84,960 10,980 12,956 9,902 53,261 14,315 496,454 43,069 90,118 56,734 97,373 14,150 11,942 84,960 10,980 12,956 9,902 53,281 46,720 2.106 15,007 458,506 79,619 49,230 119,217 11,242 12,115 87,418 9,231 1,505 7,525 33.623 42,722 100 10,310 721 10,698 21,672 423 1,901 2,828 8,432 46,720 2,108 2,284 7,885 25,948 2,284 7,885 91,759 65,811 2,028 2,028 19,996 73 11,917 19,996 73 11,917 18,204 1,000 71,639 26,580 32,820 11,845 160 22,114 26,580 32.820 11,845 160 35,393 17,740 13,279 46,020 15,015 11,455 17,236 259 2,526 1,373 8,800 8,800 2,166 665 950 4,940 1,218 2,166 950 4,940 1,218 4,960 15,703 4,886 7,240 4,553 15,628 16,704 5,958 48,718 7,240 4,553 15,628 16,704 5,958 102,830 9,443 22,188 85,603 4.745 1,870 10,848 6,604 101.652 Outreach Projects- salaries and costs Jarrow Unit Staff costs (employed and other workers) - Consortium 54,114 9,443 22,188 2,234 60,469 1,262 1,343 85,603 Training Travel 4,745 1,870 Total Resources Expended -22-
KEY COMMUNITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 EXPENDITURE ON CHARITABLE ACTIVITIES (continuedj Expenditure on charitable activities in 2023 was made up of £954,850 unrestricted and £441,603 restricted funds. Costs are allocated, where possible, directly to the project concerned. Where this is not possible the management committee have decided upon a basis which they consider appropriate. NET INCOMING RESOURCES FOR THE YEAR Total 2024 Total 2023 Thls Is ststsd after charylng the followlng: Govemance Costs 10. STAFF COSTS AND NUMBERS 2024 2023 Staff costs (employed only) comprise: Salaries Employers Nl contributions Pension costs 762.294 57,901 28,749 633,860 55,540 24,524 The figures for pension costs referred to above relate to KEY'S contribution to Staff Pension Schemes. Two members of staff are in Stakeholder Pension Scheme and the remainder are in an auto enrolment scheme. 2024 2023 Thfr average number of persons omployed by the trust was as follows: Management and Administrats"ve Charitable Activities 26 22 The number of employees whose remuneration for the year fell within the following bands, were: 2024 No. 2023 No. £60,000 to £69,999 £70,000 to £79,999 £80,000 to £89,999 Key Management Personnel Key management personnel comprise of one employee that has authority and responsibility for planning, directing and controlling the activities of the charity. The total compensation costs in respect of key management personnel for services provided to the charity was £82,710 (2023: £76,682). 11. TRUSTEES REMUNERATION AND RELATED PARTY TRANSACTIONS No members of the Trustees received any remuneration during the year {2023'. £Nil) Travel and other costs of £nil (2023: £Nil) were reimbursed. No Trustee or other person related to the charity had any personal interest in any contract or trdnsaction entered into by the charity during the year (2023: £Nil). -23-
KEY COMMUNITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 12. TAXATION As a charity, Key Community is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or S252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity. 13. FIXED ASSETS - Tangible Assets Motor Strickland Heaton Vehlcle House Gardens Hedley 116 Baring Close Street Trinity Walk Total Cost At 1 April 2023 Additions At 31 March 2024 Depreciatlon At 1 April 2023 Charge for the year At 31 March 2024 Net Book Value At 31 March 2024 At 31 Mah 2023 129,741 205,357 31,906 30,906 165,515 37,237 600,662 129 741 205 357 165515 37237 600662 12 14. Debtors 2024 2023 Amounts due from consortium Housing benefit due Service charges due Other debtors and prepayments 25,473 376,230 27,432 50,786 7.367 227,093 25,923 70.347 15. Creditors: Amounts Falling dufr within one Year 2024 2023 Other creditors, accruals and deferred income 102,340 126,569 16. ANALYSIS OF NET ASSETS BETWEEN FUNDS General Designated Restrlcted Funds Funds Funds Total Funds Tangible fixed assets Current assets Current liabilities 574,714 990,536 574.714 1,572,342 (102.340) 92,277 (102,109) 489,529 (231) Net Assets at 31 March 2024
KEY COMMUNITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 ANALYSIS OF NET ASSETS BETWEEN FUNDS- previous year General Deslgnated Restrlcted Funds Funds Funds Total Funds Tangible fixed assets Current assets Current liabilities 600,662 934,162 (25,332) 1,509,492 600,662 412,076 1,479,823 (231) (126,569) 411,845 1,953,916 133,585 (101,006) 32,579 Net Assets at 31 March 2023 17. ANALYSIS OF RESTRICTED FUND MOVEMENTS At 1 April 2023 Incoming Outgoing Transfers At 31 March 2024 Accommodation Grant Act 435 All Churches Trust Awards for All Ballinger Grant Bursary Fund BUS Project Charities Trust- Nationwide Clothing Fund Community Foundation Community Foundation - Outreach Community Foundation - Rising Stars Consortium Durham Community Family Intervention Food Banklsupport packs - funding Jarrow Unit Leathersellers LGA Mercers Property Purchase Grants Young People's Activities 1,107 1,012 48,111 (46,720) 1,780 (2,106) 2,498 2,443 15,012 420 40.263 30A95 847 1,666 2,256 20,000 (7,668) 27,344 420 60,491 25,883 847 86,039 (65,811} 7,305 (11,917) 15,917 {19,996) 500 (73) 2,413 2,683 19,896 36,223 19,896 52,516 101,896 {85,603) 19,613 208,218 66,230 (59,400) 100.710 (52,858) 8,000 (9,443) 15.000 (15,100) 10,000 (10,050) (21,296) 26,443 266,070 1.443 100 50 28,782 1,452 2,140 411,845 7,486 1.452 2,140 489,298 481,488 (408,041) 4,006 The transfers of £4,006 represents overspend funded by unrestricted monies. -25-
KEY COMMUNITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 17. ANALYSIS OF RESTRICTED FUND MOVEMENTS (Continued) - previous year At 1 April 2022 Incoming Outgoing Transfers At 31 March 2023 Accommodation Grant Act 435 All Churches Trust Awards for All Ballinger Grant Bursary Fund BUS Project Charities Trust - Nationwide Clothing Fund Community CAN NE Community Foundation Community Foundation - Outreach Community Foundation - Rising Stars Consortium Durham Community Family Intervention Feeding Britain Food Banldsupport packs - funding Fuel Bursary Donation Great North Run Greggs Groundwork re trip KEY Staff Leathersellers LGA Mercers Northumbria Police Places for People Property Purchase Grants RISE Scottish Power Virgin Money Young People's Activities 49.687 43,829 (42,722) (49,687> 1,070 1100} (10,310) 1,107 1,012 10.272 38 2,443 15,012 420 40,263 30,495 15,047 420 47 48,699 847 1,000 15,000 {15,035) 188,890 (21,672) (127,002) (18.204) (1.000) (8,432) (494) 10,098 2,750 1,666 2,256 19,896 101,160 (60,469) (38,005) (2,150) 19,896 36,223 33,537 2,150 17,085 2,786 229.988 90 1,224 74,067 {71,539) 19,613 (2,786) 89,884 1111,654 208.218 (90) (2,137) 913 100 (100) 5,500 2,234 4,243 (5,500> (2.234) 15,000 121,477} 10.000 (10,000 30,000 132,514) 2,234 31,296 5,000 3,901 1.452 7,974 13,254 10,000 2.563 28.782 15,000) 13.901) 1N52 {7,974) (13,254) (10,000> 1423 2,140 502,781 602,657 (441,633) (251,9601 411,845 -26-
KEY COMMUNITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 17. ANALYSIS OF RESTRICTED FUND MOVEMENTS (continuod) Accommodation grants Represents funding received towards working with young people experiencing poverty and disadvantage. Act 435 - This represents donations reiVed to give to individuals in hardship. ACT 435 is an online charity, directly connecting those who want to give to those who are in genuine need of their help through local church networks. All Churches Trust - Funding was reiVed towards salary costs for a wellbeing worker in the prior year. Awards for All - Represents fvnding received in the prior year towards salary and Offi costs. Ballinger Grant- KEY receives an annual grant award of £15,000 to help with KEY'S activities. Bursary Fund This is money KEY gives to young people as a bursary to help them overcome employment, education, and training barrÉers. BUS Project - Funds were reiVed from Community Foundation and Feeding Britain towards the salary of a project lead and bus running costs. Chartties Trust - Nationwide - Represents funds reiVed towards tenancy retention. Clothing Fund This is money KEY collected previously from selling donated items on eBay and at cash for clothes towards KEY projects. Community CAN NE - Funds received in prior years towards development and registered provider progression. Community Foundation Represents funds received from Growth and Resilien Fund towards infrastructure investment post supporting the development of KEY'S new services in the prior year. This year funds were received towards employability support. Community Foundation Rising Stars Funds received in the prior year towards supporting disadvantaged young people in South Tyneside to reach their potential. Community Foundation - Outreach - Represents a grant received for home resettlement packs for young people moving into independent living in South Tyneside. Consortium This represents funding reiVed for costs including the commissioned contract with South Tyneside Council in partnership wrth DePaul UK and PlaS for People. Durham Communty provided two grants towards a housing project. No further progression has been made on this project as it is a potentially long term project. The funds were transferred to unrestricted in the prior year to be used towards professional and technical support in order for KEY to negotiate a lease and partnership agreement with South Tyneside Ventures Trust and a valuation on property to be developed. Family Intervention - Funds were received from The Henry Smith Charty and BBC Children in Nd towards a mediation and intervention post for 3 years. FOCA Banklsupport packs is funds KEY receives for the KEY2Life Food Bank. Funds in 2023124 were received in fomi of donations and grants from South Tyneside Council, Feeding Britain, The Neighbourly Foundation, Sir James Knott and Community Foundation. Fuel Bursary Funds reiVed from individuals who received Winter Fuel Allowan from the Govemment donating the allowance to the Fuel Bursary Fund to help those in fuel poverty. Great North Run - funds were entry fees paid from runners specifically for the Great North Run which was cancelled in 2020 due to COVI D-19. These funds were spent in the prior year. -27-
KEY COMMUNITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 17. ANALYSIS OF RESTRICTED FUND MOVEMENTS (continued) Greggs- Funds awarded to a young person from hardship fund in the prior year. Groundwork- Funding received for young people's activities which were spent in the prior year. KEY Staff - Covers funding received for costs related to these posts, Funding offir, Family Intervention Offir, Officer Manager, Prison Matters, Marketing and Communications Officer post. Funds were spent in the prior year. Jarrow unit - Represents funding reiVed from the council towards a unit to hold suppliers for the food bus. Leathersellers - Salaries for prevention and mediation team. LGA- Represents a contribution received to the mental health and wellbeing provision. Mercers - Grant award towards the annual salary costs of a second Family Intervention Officer post. Northumbria Police This was a grant received within the objectives of cutting crime, crime prevention, reducing re-offending, supporting victims and community safety. Funds were spent in the prior year. Propety Purchase Grants - Represents grants received towards the purchase of flats. In 2019120 KEY reiVed £40,000 from Clothworkers. Previously £37,237 VRS transferred to designated funds to fund the purchase of the Trinity Walk property. RISE and PlaS for People - Represents funds received towards activities sessional worker. Scottish Power - Represents funding towards KEY Youth Hubs project which is the development of drop in hubs for socially excluded and disadvantaged young people. Virgin Money - Grant award towards 1-year salary and related costs for Support Worker at Askins Lodge. In 2021 a grant was received towards additional staffing costs incurred due to COVID-19 pandemic. Funds were spent in the prior year. Young People's Activities - Represents grant funding reiVed to run young people's activities. 18. MOVEMENT IN FUNDS At Incoming 1 April Rosources 2023 Outgoing R•sources Transf&rs At 31 March 2024 Restricted funds Charity activities 411,845 481,488 (408,041) 4,006 489,298 Unrestricted funds General funds Designated funds 32,579 1,509.492 1,195,397 (1,152,096) (25,948) (85,712) 81,706 (9,832) 1,565,250 Total Unrestricted funds 1,542,071 1.195,397 (1,178.044) (4,006) 1,555,418 Total Funds -28-
KEY COMMUNITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 MOVEMENT IN FUNDS- previous year At Incoming l Aprll Resources 2022 Outgoing Transfers At 31 March Resource 2023 Restricted funds Charity activities 502,781 602,657 (441,633) 1251,960) 411,845 Unrestrlcted funds General funds Designated funds 50,000 1,219,593 989,195 (968,677) (37,939) 289,899 32,579 1,509,492 Total Unrestricted funds 1,269,593 989,195 (*8,6771 251,960 1,542,071 Purposes of Restricted Funds: Charity activities.. The funding enables support to be given to young people experiencing hardship in South Tyneside to allow them to live independent and successful lives. General Funds: Funds available for the charitable company to use for the purposes of the charitable company without restriction. Designated Funds: The Trustees have decided that a designated reserve within unrestricted funds should be established with the aim to cover up to six months operating expenditure. This decision recognises the extremely dIffult funding environment and the longer lead times between funding applications and the final deasion on those applications. Based on a °draft cash flow" for the year to 31 March 2025 showing expenditure of £1,680,522 (induding self-funding areas), the maximum designated reseDie on this basis should be £840,261. The transfer of £795,413 represents funds taken from the 6 monthly expenditure designated fund in order to build up the general funds reserve. In addition, a further amount is being designated for potential redundancy payments £140,816. Further amounts have been designated towards the major repairs fund of £5,320 represented by the transfer in the year of £30,000 and expenses of £24.680. Furthermore, funds have been designated towards the propety fund which represents the value of all properties purchased by KEY Community as shown in note 13. -29-
KEY COMMUNITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 18. MOVEMENT IN FUNDS Icontinued) This means that the unrestricted funds shown al)ove should be allocated as under: Major repairs fund Property fund Redundancy payments- as at 31 March 2024 Designated funds for 6 months expenditure 9,459 574,714 140,816 840,261 19. ANALYSIS OF CHANGES IN DEBT At At 1 Apr 2023 Cash flows 31 Mar 2024 Cash at bank and in hand 56 672 20. OPERATING LEASE COMMITMENTS The total future minimum lease payments under non-cancellable operating leases are as follows: 2024 2023 Not later than 1 year Later than 1 year and not later than 5 years Due in more than 5 years 55,438 14,431 193 46,439 36,181 1,738 21. RELATED PARTIES During the year, the charitable company continued to work in partnership with De Paul and Places for People who are members of the South Tyneside Consortium with KEY Community. Income for the year from De Paul was £102,033 {2023: £94,471 }. The amounts outstanding from De Paul at the year end were £25,474 (2023: £7,367). Income for the year from Places for People was £53,264 (2023: £24,262). The amounts outstanding from Places ft)r People at the year end were £12,428 (2023.. £16,174). Churches Together South Tyneside who partner with KEY to run the Key2Life Foodbank is also considered a related party. Income from Churches Together in the current year was £nil (2023: £nil}. There were no outstanding balanS at the year end (2023: £nil). 22. COMPANY LIMITED BY GUARANTEE The legal status of the Trust is that of a company limited by guarantee and has no share capital. The liability of each member in the event of winding-up is limited to £10. -30-