Tees Valley Community Foundation and its Subsidiaries
Report of the Trustees & Financial Statements for the Year Ended 31 March 2024
Registered Number: 05478088 Registered Charity Number: 1111222
ANDERSON BARROWCLIFF LIMITED Chartered Accountants
Tees Valley Community Foundation and its Subsidiaries
Trustees’ Report & Financial Statements
Contents
| Page | |
|---|---|
| Legal and Administrative Information 1 |
|
| Report of the Trustees | 2 - 8 |
| Auditors’ Report | 9 - 11 |
| Statement of Financial Activities | 12 |
| Balance Sheets | 13 - 16 |
| Statement of Cash Flows | 17 |
| Notes to the Financial Statements | 18 - 35 |
Tees Valley Community Foundation and its Subsidiaries
| Legal and Administrative Information | Legal and Administrative Information | |
|---|---|---|
| Founder: | Squadron Leader Kenneth Kime | |
| OBE | ||
| President: | Sir Ronald Norman OBE | |
| Vice President: | Dr Tony Gillham MBE |
|
| Trustees: | Jefrey Taylor | Chair |
| Keith Smith | ||
| Heather O’Driscoll | ||
| Nigel Williams | ||
| Emma Read | ||
| Robin Smith | Appointed – 24/10/2023 | |
| Dr Wendy Shepherd | Appointed – 24/10/2023 | |
| Company Secretary | Peter Rowley OBE | |
| Chief Executive | Hugh McGouran | |
| Registered Company | 05478088 (England and Wales) | |
| number | ||
| Registered Charity number | 1111222 | |
| Bankers | Handelsbanken | |
| Second Floor | ||
| Lakeside House | ||
| Kingfsher Way | ||
| Stockton on Tees | ||
| TS18 3NB | ||
| Investment Advisor | Rathbones Group PLC | |
| 4th Floor | ||
| 3 Wellington Place | ||
| Leeds | ||
| LS1 4AP | ||
| Solicitors | Shakespeare Martineau LLP | |
| 1 Colmore Square | ||
| Birmingham | ||
| B4 6AA | ||
| Auditors | Anderson Barrowclif Limited | |
| Chartered Accountants | ||
| 3 Kingfsher Court Bowesfeld Park |
||
| Stockton on Tees | ||
| TS18 3EX | ||
| Registered Ofce | 1stFloor | |
| Corvette House | ||
| Falcon Court | ||
| Preston Farm | ||
| Stockton on Tees | ||
| TS18 3TX |
Page 1 Tees Valley Community Foundation and its Subsidiaries
Report of the Trustees for the Year Ended 31 March 2024
The Trustees present their report along with the financial statements of the charity for the year ended 31 March 2024.
The financial statements have been prepared in accordance with note 1 to the financial statements and comply with the charity’s Memorandum and Articles of Association, the Charities Act 2011, the Companies Act 2006 and the Statement of Recommended Practice applicable to charities preparing accounts in accordance with the Financial Reporting Standard in the UK and Republic of Ireland (FRS 102)(effective 1 January 2019).
Tees Valley Community Foundation (the Foundation) has been granted a uniting direction under section 96(6) of the Charities Act 1993, which unites Cleveland Community Foundation with the Foundation for registration and accounting purposes. The Foundation is the sole trustee of Cleveland Community Foundation. Under a Charity Commission Scheme dated 12 July 2010, the Foundation became sole Trustee of the Speck Walker Fund and was granted a section 96(6) uniting direction in respect of this charity. On 14 March 2011, the assets and liabilities of the Teesside Emergency Relief Fund were transferred to the Foundation and the Foundation became its sole Trustee. A section 96(6) uniting direction has been granted in respect of this charity. The Foundation became sole Trustee of the Agnes Spencer Charitable Trust on 28 March 2014 and a linking order for accounting and registration purposes was granted by the Charity Commission effective on this date.
This does not constitute an amalgamation of the charities, which remain separate and legally distinct. Group accounts have been prepared in order to comply with the Companies Act requirements.
Structure, governance and management
Tees Valley Community Foundation is a registered charity, number 1111222, and a company limited by guarantee, company number 05478088. It is constituted under a trust deed dated 3 June 2005. The Foundation was established in 1989 as a grant giving charity following the successful participation in a challenge set by the Mott Foundation of Flint Michigan in the USA and the Charities Aid Foundation, where £1m raised in the local area was matched by $1m gifted by the Mott Foundation, to establish a permanently endowed fund, the income from which would be used to distribute grants and operate the Foundation. The following years saw a significant campaign of fundraising, predominantly from corporate donors operating in the industrial Tees Valley successfully building a substantial endowment fund.
A root and branch review of the governance of the Foundation took place in 2018, resulting in a streamlining of the committee structure and a reduction of the size of the Board of Trustees, to improve efficiency at an operational and a strategic level.
The Foundation is overseen by a Board of seven Trustees. New Trustees are appointed by the existing Trustees and serve for four years and may put themselves forward for re-election. The Trust Deed provides for a minimum of 3 Trustees and a maximum of 12.
A schedule of potential Trustees is regularly reviewed and updated under the supervision of the Board. Where practical, individuals interested in becoming a Trustee will be invited to attend a number of Board meetings as an observer, as a precursor to becoming a Trustee. New Trustees go through a formal induction process which provides support during their first twelve months service. All Trustees are issued with a Trustee handbook, which is regularly updated and subject to a full review every year. The handbook contains information on the structure of the Foundation, including Terms of Reference, governance details and a complete meeting schedule, as well as all contact information to enable a Trustee to fulfil their role within the Foundation.
At quarterly Trustees’ meetings, the Trustees agree the broad strategy and areas of future development for the Foundation. Items considered include the management of investments, reserves and risks, policies and performance and impact reporting on the grant giving activity. The day-to-day administration of grants, including the application process and decision making to a level of £5,000, is delegated to the Chief Executive and Grants Manager, with decisions being ratified by the Trustees at the next quarterly meeting .
Page 2 Tees Valley Community Foundation and its Subsidiaries
Report of the Trustees for the Year Ended 31 March 2024
Trustees are responsible for a specific area of interest based on their personal skill set. These include finance, investment, HR, development and law. The Board has the power to appoint temporary Task & Finish groups to carry out specific strategic activities and report back to the Trustees. The Board reviews the detailed Risk Matrix as a standing item at each meeting. The Board gives authority to the Trustee with responsibility for financial matters to oversee the annual external audit and the preparation of the annual accounts for presentation to the Trustees for consideration and approval. The Trustee appointed with responsibility for investment matters, receives the quarterly report of the Investment Manager and advises the Trustees on the performance of the fund at each Board meeting. This Trustee, with support from an appropriate Task & Finish Group is responsible for the appointment process of the Investment Manager every five years.
Risk Management
The Trustees have considered the major risks to which the Foundation is exposed and regularly review those risks and update the detailed Risk Matrix document at each Board meeting. The updated Risk Matrix is formally presented for approval at the September Board meeting with ongoing monitoring and updating carried out as a Standing Item at every Board meeting throughout the year ahead.
The Trustees consider the variability of the investment returns on the permanent endowment to constitute the Foundation’s major financial risk. The power to supervise the performance of the fund and the performance of the Investment Manager has been delegated to the Trustee with responsibility for investment matters, who reviews this quarterly, with the Investment Manager making a formal presentation to the Board twice each year.
Systems and procedures are in place to monitor and manage the risks faced by the Foundation, and these are formally reviewed by the Board. The setting of remuneration for all paid staff is the responsibility of the Board, led by the Trustee with responsibility for Human Resources, with an annual standing item at the November Board meeting so that decisions are made in December and staff informed of any changes in January ahead of implementation at the start of the new financial year.
Objects and Activities for the Public Beneft
The objectives of the Foundation are to improve the quality of life of the people of the Tees Valley. The Trustees confirm that they have referred to Charity Commission guidance on public benefit when reviewing this. This has been achieved primarily through the distribution of small grants to constituted groups working to improve and support their local communities. In recent years this service has diversified beyond the limits of simple grant giving through the Foundation’s Intelligent Investment programme, implemented in 2015, which helps a small number of groups become self-sufficient, breaking the cycle of grant dependency.
In the short to medium term the Trustees will ensure that grant giving represents the prime activity of the Foundation. In addition to this prime objective the Foundation will continue to develop its strategy to reduce grant dependency within participating groups, and in the short to medium term will further develop the partnership with the Larch programme, and other opportunities to reflect the current growth of social enterprise within the Third Sector. In the long term, the Foundation is seeking to build its reputation as an influencer within the sector, by working both to help local groups but also to assess what is needed in the community and use its influence to procure the support of the private and statutory sectors to aid this activity.
The Foundation has developed a bespoke digital platform for the operation of the Foundation, which manages all elements of the grant giving process, from an accessible application portal to an efficient evaluation tool. This system was implemented in April 2024 and is now fully operational. All grant recipients are monitored to ensure compliance to the terms and conditions set out in the grant award agreement. This is an online form-based process and concentrates on quantitative evidence based on the forecast of the recipient in their grant application. A random selection of 25% of grant recipients are subject to further scrutiny in the form of a monitoring visit which is carried out by current Trustees, members of the Trustee alumni and staff members. A pre-planned interview is carried out and data fed into our monitoring system. Information gathered during this process is also used to generate content for our developing social media presence.
Page 3 Tees Valley Community Foundation and its Subsidiaries
Report of the Trustees for the Year Ended 31 March 2024
The Foundation’s ongoing development of its Intelligent Investment programme has entered a new phase as it becomes refocussed and streamlined to complement our work as a partner in the influential LARCH Social Enterprise programme which is a pilot funded through the Local Access Fund. This is a further development of the Community Business model, originally piloted in Dyke House Hartlepool, heavily supported by our Intelligent Investment model. This will continue to be a focus of the Foundation for the coming five years. It is our intention to focus our Intelligent Investment activity in the Middlesbrough and Stockton areas to serve the communities not supported through LARCH, in order that Teesside in its entirety can benefit from uniform Social Enterprise support.
Achievements and Performance
The Foundation has delivered a very successful year in terms of grants awarded and has seen significant growth in demand for our support. Grants awarded to local community groups totalled £1,016,476 in the form of 279 grants paid to groups and individuals. £3,500 was awarded to individuals in the form of 9 grants, £530,643 in small grants awarded to 227 constituted community support groups, £482,333 in larger grants was awarded to 43 local groups. This shows an increase of 96% in total grants awarded, and a growth of 101% in the number of groups supported.
The bulk of the Foundation’s charitable giving is still made up of small grants of under £1,000 to small, constituted community groups, providing grassroots support to their local community. We do also provide a significant amount of a higher level of intervention, mostly as exclusive TVCF projects, but also in partnership with other charities.
Lt Col Nathan Cohen Trust
Following a long-term administrative partnership with local grant giving charity, the Lt Col Nathan Cohen Trust, it was agreed that the long-term future of the charity would be best served by a formal joining of the two bodies. The Cohen Trust Deed named TVCF as sole beneficiary should the Trustees decide to dissolve the Charity. The decision to dissolve the Charity was made by the Cohen Board of Trustees in early 2023, and the Charity was removed from the Charity Commission register in July 2023, with all assets transferring to TVCF. This increased the value of TVCF charitable assets by over 20%.
A number of 2023/24 highlights of this intensive support programme are detailed below:
Peat Rigg Farm
Peat Rigg Outdoor Training Centre continues to be the jewel in the Foundation’s crown. A sector leading 64 bed educational facility based in the North Yorkshire National Park provides education and training to over 5000 local children every year. Set in 100 acres of rural parkland, visitors can access a range of activities including caving, orienteering, abseiling, mountain biking, archery and water sports. Our operating partner places emphasis on encouraging sustainable healthy living, with a high percentage of the food provided being produced on site.
The ongoing challenge faced by the delivery partner over the last 25 years has been the need to take the children off site to deliver water-based activities. The centre continues to develop changes in the way it manages the 100 acres of farmland, moving toward a stewardship approach and the introduction of rewilding to large parts of the farm.
An ambitious proposal was supported by Trustees in 2021, to create a three and a half acre lake to enable the centre to become completely self-sufficient in activity provision. This proposal was unanimously supported by the Board, who approved a large grant of over £50,000 to enable the construction to take place. Construction was completed in summer 2023 and the finished lake is actually 4.25 acres in size, with full access for disabled residents in the form of a wheelchair friendly pathway from the main building to the jetty. The facility is fully operational and has significantly reduced the need to use vehicles to transport residents to offsite activities.
Rubies
Rubies is an award-winning charity providing trauma-informed support for disadvantaged girls in Middlesbrough and Redcar & Cleveland. An application was received for a grant to pay for additional staff to provide sessional support to help permanent staff deliver an 8 week Self-Esteem & Empowerment courses in primary and secondary schools across Middlesbrough and Redcar & Cleveland. The project addressed issues around girls who
are struggling with anxiety, low mood, poor sleep, hunger, lack of social skills, unrecognised neuro-diversity and self-harm.
Page 4 Tees Valley Community Foundation and its Subsidiaries
Report of the Trustees for the Year Ended 31 March 2024
Achievements and Performance continued …..
Seen, Heard, Believed
This is an innovative family support charity who is working at the forefront of Trauma Informed Family Support. The opportunity to work with this ground-breaking project came as a result of our merger in July 2023 with the Lt Col Nathan Cohen Trust, which had been working closely with the initial development of this project. The Foundation was delighted to be given to opportunity to continue this support, which is both hands on intensive support work with troubled families, and the development of a delivery framework for Trauma Informed Support, which will be made available across the country when published. The Foundation recognises the support of KPMG in this innovative project.
British Cycling Tour of Britain
The Foundation worked in partnership with Redcar & Cleveland Borough Council and British Cycling to enable significant community participation along the route of the local stage of the Tour of Britain road-racing event during the summer. This event was televised live on Eurosport and the work of local groups to “dress” the route, as it wound through their village communities, was clearly evident on the TV coverage and projected a very positive image of their neighbourhoods.
Swimming in Books
This project was developed in partnership with Tees Active, Stockton Library Service and a specific donor who has a keen interest in child literacy. An innovative approach to both education and well-being aimed at developing literacy within the under 5’s using swimming and water as the key themes. This is a two-year programme with exclusive support from the Fawcett Fund.
Tamil Cultural Society - Community Sports Day
This is an example of one of the many community engagement activities that we have supported during the past year. This specific event was designed to provide an opportunity to interact and socialise with the wider community, encouraging integration and cohesion, and to increase understanding of each other’s culture to build stronger local communities.
Oxford Road Baptist Church Community Grocery Shop
This project is one of several grocery and provisions supply initiatives in our area. It provides heavily subsidised groceries for a significantly disadvantaged community, which gives customers a sense of dignity and choice. This is one example of many such projects supported this year.
New Marske Harriers Sports Club
An innovative eco-friendly community safety project, which enable local people to safely access healthy activity all year round. Working with the support of the Sofia Windfarm project, who are building the large Dogger Bank Windfarm, and the support of Redcar & Cleveland Council, we were able to provide funds to install solar lighting along the footpath to the side of the A1085 between Redcar and Marske, to increase activities (running, walking, cycling) during hours of darkness.
Moorbus CIC
A local network of environmentally friendly travel for all, to benefit the community, and, in particular to facilitate the provision of public passenger transport services to and within the North York Moors and surrounding area. The CIC used the grant to support 3 Moorsbus service routes in the Tees Valley area to operate. The Moorsbus network is organised by the volunteer Directors of the CIC and is operated with no paid staff. The CIC contracts with local bus operators every year, and produces bespoke "Days Out" information, for example "Days out from Redcar" and "Days out from Middlesbrough". All this information is also on the Moorsbus.org website. Moorbus CIC is an excellent project providing a vital link for remote communities and enabling residents of the Tees Valley to cheaply access the local countryside.
“You’ve Got This” grant programme
The Foundation was appointed as the grant distribution partner for the South Tees based “You’ve Got This” public health pilot programme. We were seen as a “safe and experienced pair of hands” by the programme commissioners and the partnership is now being hailed as a local success story, supporting hundreds of local people into becoming more active and pursuing healthy lifestyle choices.
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Tees Valley Community Foundation and its Subsidiaries
Report of the Trustees for the Year Ended 31 March 2024
Achievements and Performance continued …..
North Yorkshire Moors National Park Trust
Working in partnership with the North York Moors National Park Authority to deliver their first nature connection and wellbeing festival throughout 2024, from April until November. The festival offered time and space for people from within the National Park and surrounding areas to improve their health and wellbeing by being immersed in nature and the arts. There were a series of inspiring half day and full day art and self-care workshops for both children and adults, as well as family activities and events. Workshops covered themes in art, mindfulness, crafts and wellbeing, focusing on endangered bird species on the moors.
Financial Review
The financial position of the Foundation is continually monitored by the Chief Executive and is formally reviewed on a quarterly basis by the Board of Trustees. At these meetings income and expenditure are reviewed against the rolling budget forecast and reports.
Following approval from the Charity Commission in March 2008 the Foundation adopted a total return approach to the investment of permanently endowed funds. The following is an extract from the sealed Order: -
“In accordance with the terms of the Order, the Trustees confirm that:
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In identifying the value of the portion of the permanent endowment that represented the unapplied total return, the Trustees first identified the value of the initial gift dating back to 1987 and any subsequent gifts of permanent endowment up until 31 March 2008, and:
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When determining the amount of unapplied total return to transfer to income the Trustees have considered the amount of income required to maintain the current level of charitable activity, the likely benefits to future generations, and the likely needs of future beneficiaries, and:
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When reaching their decision as to the unapplied total return to transfer to income, the Trustees have taken professional advice from their investment advisers regarding the market outlook, investment trends and yield, and the prospect for future capital growth.”
As part of the total return implementation process the Trustees agreed that the investment managers be given an objective of an 8% long term average total return which comprises 4% for potential allocation to the Trust for application (Distribution Funds), 1.5% for the charge levied to administer the funds and 2.5% representing an inflationary and risk buffer.
The value of the investment portfolio held with Rathbones Group PLC at the year end amounted to £13,481,357 (2023: £12,760,256). The value of the investment portfolio held with Redmayne Bentley at the year end amounted to £188,654 (2023: £185,289). The value of the investment portfolio held with CCLA at the year end amounted to £1,143,018 (2023: £1,048,142). The value of the investment portfolio held with Charles Stanley at the year end amounted to £4,200,964 (2023: £Nil). The investment portfolios received dividend and interest income for the year amounting to £397,326 (2023: £325,250).
The primary source of income for the Foundation is the return on the investment of our endowment funds, both permanent and expendable. The capital investment is managed by Rathbones Group PLC Leeds as part of a bespoke portfolio. The Investment policy, reviewed annually, instructs the Investment Manager to implement a low to medium risk profile. The performance of the fund during this year saw a reduction in the value of the investments due to market volatility. Other income is generated through donations and acquisition of dormant and ineffective Trusts.
The Foundation also manages a small number of flow through funds on behalf of partner organisations, these include the Tees Offshore Community Fund. A 10% annual management fee is charged on these funds.
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Tees Valley Community Foundation and its Subsidiaries
Report of the Trustees for the Year Ended 31 March 2024
Reserves Policy
The Trustees aim to maintain free reserves equal to approximately six months’ core operating costs. Based on current predicted levels of activity six months’ core operating costs amount to £159,000 and the balance on the Unrestricted Income and Expenditure fund is £169,389 (2023: £259,445) of which £136,123 (2023: £189,583) are free reserves after adjusting for fixed assets and deferred income (relating to fixed assets).
The Trustees continue to monitor reserves on a regular basis and quarterly management accounts are reviewed by the Board of Trustees. The trustees are satisfied that the year end unrestricted reserves balance is appropriate.
Plans for the future
The Foundation has developed an ambitious ten year vision to guarantee its provision of future charitable benefit to the people of Teesside. Work began in January 2023 with a detailed consultation with the staff of the Foundation to restructure the internal processes as part of the design and implementation of our new digital Management Information System.
At the same time Trustees debated the future of giving in the Teesside area, and the role of the Foundation within that process. It was agreed that it was timely to fully review and potentially redesign the entire organisation to ensure its ongoing future as the leading independent grant giver in our community.
The importance of the development of the digital environment was agreed as a major long-term priority, and as such is forming the main element of our future strategy.
The CEO has been working with highly experienced digital transformation consultants to produce the largest organisational review in the history of the Foundation. The result of this work was revealed as part of a major relaunch of the Foundation in April 2024.
As of April 2024, the Foundation will operate a suite of activities under the collective working name of the Tees Foundation. The main grant programme operated by the Foundation will be known as the Tees Million, which has been created through the streamlining of a number of our significant endowed funds. This will enable the marketing of a clear and dynamic new fund, which will be simple and quick to access. During the following months, further programmes will be launched including the Tees Challenge, modelled on our success with Bauer Media charity, Cash for Kids, and the Tees Data Hub, where we will share the vast amount of digital intelligence we have gathered over the past 20 years with those stakeholders who would find it helpful for their work in the voluntary sector.
We look forward to a very bright and independent future working to support the community sector in Teesside.
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Tees Valley Community Foundation and its Subsidiaries
Report of the Trustees
for the Year Ended 31 March 2024
Statement of Trustees’ Responsibilities
The Trustees (who are also the directors of Tees Valley Community Foundation for the purposes of company law) are responsible for preparing the Report of the Trustees and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.
Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the Trustees are required to:-
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make sound judgements and estimates that are reasonable and prudent; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees 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.
In so far as the Trustees are aware:
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there is no relevant audit information of which the charitable company’s auditors are unaware; and
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● the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
Auditors
The auditors, Anderson Barrowcliff LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Approved by order of the board of trustees on ……………………………. and signed on its behalf by:
Jeffrey Taylor Chairman
Page 8 Report of the Independent Auditors to the Members of Tees Valley Community Foundation and its Subsidiaries
Opinion
We have audited the financial statements of Tees Valley Community Foundation (the ‘charitable company’) for the year ended 31 March 2024 which comprise Group Statement of Financial Activities, the Group and the Parent Balance Sheet, and the Group and Parent Charity Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.
In our opinion the financial statements:
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give a true and fair view of the state of the groups and parent charitable company’s affairs as at 31 March 2024, and of the group’s incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and the Republic of Ireland; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable groups and parent’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Report of the Independent Auditor’s thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Page 9 Report of the Independent Auditors to the Members of Tees Valley Community Foundation and its Subsidiaries
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:-
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the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
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the parent charitable company has not kept adequate accounting records; or
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the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Statement of Trustees Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Our responsibilities for the audit of the financial statements
We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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 a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Based on our understanding of the charity, we have considered applicable laws and regulations which may be fundamental to the charity's ability to operate or to avoid a material penalty, and we considered the extent to which non-compliance might have a material effect on the financial statements. We considered management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate manual journal entries to manipulate financial performance, management bias in significant accounting estimates and any significant one-off or unusual transactions.
We discussed among the audit engagement team the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
Page 10 Report of the Independent Auditors to the Members of Tees Valley Community Foundation and its Subsidiaries
Auditors' responsibilities for the audit of the financial statements (continued)
Audit procedures performed by the engagement team included:
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Enquiry of management and those charged with governance around actual and potential litigation and claims.
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Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
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Reviewing minutes of meetings of those charged with governance.
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Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
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Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
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Challenging estimates and judgements made by management in their significant accounting estimates.
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- Revenue recognition; agreeing a sample of revenue transactions to gain assurance over the occurrence and accuracy of revenue and also to ensure revenue has been recognised in the correct period.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
Use of our report
This report is made solely to the charitable company’s members, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
For & on behalf of Anderson Barrowcliff Limited Statutory Auditor Chartered Accountants Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 3 Kingfisher Court Bowesfield Park Stockton on Tees TS18 3EX
Date: ……………………
Page11
Tees Valley Community Foundation and its Subsidiaries Consolidated Statement of Financial Activities
(including consolidated income and expenditure account)
for the Year Ended 31 March 2024
| Unrestricted Funds | Unrestricted Funds | Unrestricted Funds | Endowment Funds | Endowment Funds | Restricted Funds | Restricted Funds | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Design-ate | Design-at | |||||||||||||
| Income | d | ed | Permanent | |||||||||||
| & | Administ- | Distributi | Endow-me | Expendable | Income & | Distribu-t | ||||||||
| Expend-i | ration | on | nt Funds | Endowment | Expend-it | ion Funds | Peat | 2024 | 2023 | |||||
| ture | Fund | Fund | Funds | ure | Rigg | Total | Total | |||||||
| Funds | ||||||||||||||
| Notes | £ | £ | £ | £ | £ | £ | £ | £ | £ | £ | ||||
| Income | and | endowments | ||||||||||||
| from: | ||||||||||||||
| Donations and legacies | 2 | 23,577 | - | - | 4,106,614 | 3,418 | 76,330 | - | 4,209,939 | 241,655 | ||||
| Charitable activities | 3 | - | - | - | - | - | 21,636 | 566,812 | - | 588,448 | 239,947 | |||
| Investment | income | 4 | 9,631 | 12,028 | 12,000 | 311,932 | 59,960 | - | - | - | 405,551 | 334,001 |
Total income and endowments 33,208 12,028 12,000 4,418,546 63,378 21,636 643,142 - 5,203,938 815,603
Expenditure on: |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Raising funds | 5 | 24,350 | 2,787 | 2,779 | 66,307 | 6,429 | - | - | - | 102,652 | 80,157 | |
| Expenditure on charitable | ||||||||||||
| activities: | ||||||||||||
| Grant making | 6 | 265,087 | - | 20,040 | - | - | 13,693 | 945,199 | - | 1,244,019 | 690,044 | |
| Advice and guidance | 8 | 58,998 | - | - | - | - | 7,943 | 61,229 | - | 128,170 | 113,755 |
Total expenditure |
348,435 | 2,787 | 22,819 | 66,307 | 6,429 | 21,636 | 1,006,428 | - | 1,474,841 | 883,956 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net gains / (losses) on | ||||||||||
| investment assets | - | 42,757 | 42,515 | 879,381 | 193,064 | - | - | 1,157,717 | (814,142) |
Net income / (expenditure) |
51,998 | 31,696 | 5,231,620 | 250,013 | - | (363,286) | - | 4,886,814 | (882,495) | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Transfers between funds | 21,22,2 | 225,171 | (26,892) | (8,188) | (654,762) | (125,479) | - | 590,150 | - | - | - |
| 3, 24,26 |
Net movements in funds
(90,056) 25,106 23,508 4,576,858 124,534 -
28
226,864 - 4,886,814 (882,495)
Reconciliation of funds: Total funds brought forward 259,445 537,835 576,512 9,569,922 2,315,494 - 1,451,311 720,000 15,430,519 16,313,014
Total funds carried forward 169,389 562,941 600,020 14,146,780 2,440,028 - 1,678,175 720,000 20,317,333 15,430,519
The notes form part of these financial statements Page 12
Registered Number: 05478088
Tees Valley Community Foundation and its Subsidiaries
Consolidated Balance Sheet - At 31 March 2024
| 2024 | 2023 | ||||
|---|---|---|---|---|---|
| Note | £ | £ | £ | £ | |
| Fixed assets | |||||
| Intangible assets | 13 | 61,488 | 68,320 | ||
| Tangible assets | 14 | 290 | 1,542 | ||
| Investment property | 15 | 720,000 | 720,000 | ||
| Investments | 16 | 19,013,993 | 13,993,687 | ||
| 19,795,771 | 14,783,549 | ||||
| Current assets | |||||
| Debtors | 17 | 131,320 | 48,817 | ||
| Cash at bank and in hand | 18 | 619,638 | 694,246 | ||
| 750,958 | 743,063 | ||||
| Creditors:amounts falling due within one | |||||
| year | 19 | 229,396 | 96,093 | ||
| Net current assets | 521,562 | 646,970 | |||
| Net assets | 20,317,333 | 15,430,519 | |||
| Financed by: | |||||
| Restricted funds: | |||||
| Permanent Endowment Fund | 21 | 14,146,780 | 9,569,922 | 9,569,922 | |
| Expendable Endowment Fund | 23 | 2,440,028 | 2,440,028 | 2,315,494 | 2,315,494 |
| Distribution Fund | 24 | 1,678,175 | 1,678,175 | 1,451,311 | 1,451,311 |
| Peat Rigg | 15 | 720,000 | 720,000 | ||
| 18,984,983 | 14,056,727 | ||||
| Unrestricted funds: | |||||
| Income & Expenditure Fund | 25 | 169,389 | 259,445 | ||
| Designated Distribution Fund | 26 | 600,020 | 576,512 | ||
| Designated Administration Fund | 22 | 562,941 | 537,835 | ||
| 1,332,350 | 1,373,792 | ||||
| Total funds | 28 | 20,317,333 | 15,430,519 |
The Trustees consider that the company is entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 (the “Act”) and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Act. However, an audit is required in accordance with section 151 of the Charities Act 2011.
The trustees acknowledge their responsibilities for:
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
-
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011.
The notes form part of these financial statements
Page 13
Registered Number: 05478088
Tees Valley Community Foundation and its Subsidiaries
Consolidated Balance Sheet - continued
At 31 March 2024
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on ………………………… and were signed on their behalf by:
J Taylor - Chairman
H O’Driscoll - Trustee
The notes form part of these financial statements
Page 14
Registered Number: 05478088
Tees Valley Community Foundation
Balance Sheet
At 31 March 2024
| 2024 | 2023 | ||||
|---|---|---|---|---|---|
| Note | £ | £ | £ | £ | |
| Fixed assets | |||||
| Intangible assets | 13 | 61,488 | 68,320 | ||
| Tangible assets | 14 | 290 | 1,542 | ||
| Investment property | 15 | 720,000 | 720,000 | ||
| Investments | 16 | 562,941 | 537,835 | ||
| 1,344,719 | 1,327,697 | ||||
| Current assets | |||||
| Debtors | 17 | 157,237 | 45,657 | ||
| Cash at bank and in hand | 18 | 579,413 | 481,568 | ||
| 736,650 | 527,225 | ||||
| Creditors:amounts falling due within one | 19 | ||||
| year | 209,362 | 83,179 | |||
| Net current assets | 527,288 | 444,046 | |||
| Net assets | 1,872,007 | 1,771,743 | |||
| Financed by: | |||||
| Restricted funds: | |||||
| Distribution Fund | 24 | 419,677 | 254,463 | ||
| Peat Rigg | 15 | 720,000 | 720,000 | ||
| 1,139,677 | 974,463 | ||||
| Unrestricted funds: | |||||
| Income & Expenditure Account | 25 | 169,389 | 259,445 | ||
| Designated Administration Fund | 22 | 562,941 | 537,835 | ||
| Total funds | 1,872,007 | 1,771,743 |
The Trustees consider that the company is entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 (the “Act”) and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Act. However, an audit is required in accordance with section 151 of the Charities Act 2011.
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
-
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011.
The notes form part of these financial statements
Page 15
Registered Number: 05478088
Tees Valley Community Foundation
Balance Sheet - continued At 31 March 2024
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on ………………………… and were signed on their behalf by:
J Taylor - Chairman
H O’Driscoll - Trustee
The notes form part of these financial statements
Page 16
Tees Valley Community Foundation and its Subsidiaries
Statement of Cash Flows and Consolidated
Statement of Cash Flows for the Year Ended 31 March 2024
| 2024 | 2023 | ||||
|---|---|---|---|---|---|
| Charity | Group | Charity | Group | ||
| Note | £ | £ | £ | £ | |
| Net cash provided by (used in) | |||||
| operating activities | 34 | 58,535 | (827,509) | 17,154 | (596,172) |
| Cash flow from investing | |||||
| activities | |||||
| Payments to acquire intangible | |||||
| and tangible fixed assets | - | - | (68,819) | (68,819) | |
| Interest, dividends and rent | 21,659 | 405,551 | 22,199 | 334,001 | |
| Net proceeds on purchase and sale | |||||
| of investments | 17,651 | (3,862,589) | 19,462 | 220,103 | |
| Net cash flow used in investing | |||||
| activities | 39,310 | (3,457,038) | (27,158) | 485,285 | |
| Cash flow from financing | |||||
| activities | |||||
| Receipt of endowment | - | 4,209,939 | - | 231,395 | |
| Net cash flow provided by | |||||
| financing activities | - | 4,209,939 | - | 231,395 | |
| Change in cash and cash | |||||
| equivalents in the year | 97,845 | (74,608) | (10,004) | 120,508 | |
| Cash and cash equivalents at the | |||||
| beginning of the year | 481,568 | 694,246 | 491,572 | 573,738 | |
| Cash and cash equivalents at the | 579,413 | 619,638 | 481,568 | 694,246 | |
| end of the year |
Page 17
Tees Valley Community Foundation and its Subsidiaries
Notes to the Financial Statements for the Year Ended 31 March 2024
1 Accounting Policies
(a) General information and basis of preparation
Tees Valley Community Foundation is a private company limited by guarantee registered in England and Wales. It is registered as a charity with the Charity Commission. The address of the registered office is given in the Report of the Trustees on page 1. The nature of the Foundation’s operations and principal activities is given in the Report of the Trustees on page 3.
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)’, Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland’ and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
The financial statements are prepared on a going concern basis under the historical cost convention, with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to the accounts. The Trustees consider that there are no material uncertainties about the Foundation’s ability to continue as a going concern. The financial statements are prepared in sterling which is the functional currency of the Foundation and rounded to the nearest £.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
(b) Group financial statements
The consolidated financial statements incorporate the financial statements of the company and its subsidiaries on a line by line basis.
- (c) Income
All incoming resources are recognised in the Statement of Financial Activities (SOFA) when the Foundation is legally entitled to the income after any performance conditions have been met, and the amount can be measured reliably and it is probable that the income will be received.
Grants from the government and other agencies have been included as income from activities in furtherance of the charity’s objects where these amount to a contract for services, but as donations where the money is given in response to an appeal or with greater freedom of use.
In accordance with this policy, legacies are included when the charity is advised by the personal representative of an estate that payment will be made or property transferred and the amount involved can be quantified.
Page 18
Tees Valley Community Foundation and its Subsidiaries
Notes to the Financial Statements for the Year Ended 31 March 2024
- (d) Expenditure
All expenditure is included on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised when there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:-
-
Costs of raising funds compromise the costs associated with raising funds.
-
Expenditure on charitable activities includes the costs associated with the objects of
-
the Foundation.
Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries. It includes both costs which can be directly allocated to activities and those costs of an indirect nature necessary to support them. Costs are allocated between the expenditure categories of the SOFA based on usage of the resource. Governance costs are those incurred in connection with compliance with constitutional and statutory requirements.
Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
(e)
Allocation of support costs
Support costs are those that assist the work of the Foundation but do not directly represent charitable activities and include office costs, finance, personnel, payroll and governance costs, which support the Foundation’s activities. These costs have been allocated to expenditure on charitable activities. The bases on which the support costs have been allocated are set out in note 6.
(f)
Intangible Assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Computer software is being amortised evenly over its estimated useful life of ten years.
(g)
Tangible Fixed Assets
Fixed assets are stated at cost less accumulated depreciation. Depreciation is provided at the following annual rates in order to write off capitalised assets over their estimated useful life.
Computer equipment 33⅓% straight line Fixtures & fittings 33⅓% straight line
- (h)
Investment property
Investment properties are measured at fair value at each reporting date with changes in fair value recognised in ‘net gains / (losses) on investments’ in the SoFA.
(i)
Investments
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains / (losses) on investments’ in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably
Debtors and creditors receivable/payable within one year
(j) Debtors and creditors receivable/payable within one year Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
(k) Cash at bank and in hand
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of one year or less from the date of acquisition or opening of the deposit or similar account.
Page 19 Tees Valley Community Foundation and its Subsidiaries
Notes to the Financial Statements for the Year Ended 31 March 2024
(l) Leasing Commitments
-
Rentals paid under operating leases are charged to the statement of financial activities on a straight line basis over the period of the lease.
-
(m) Judgements and Key sources of estimation uncertainty
In the application of the Charity’s accounting policies, which are described above, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.
2 Donations and Legacies
| Un- | Total | Total | |||
|---|---|---|---|---|---|
| Restricted | Restricted | Endowment | 2024 | 2023 | |
| £ | £ | £ | £ | £ | |
| Miscellaneous Donations | 49 | 3,672 | 16,238 | 19,959 | 24,168 |
| The Prochorus Fund | - | - | - | - | 1,000 |
| Intelligent investment | - | 19,905 | - | 19,905 | - |
| Friends of Tees Heritage Park | - | - | - | - | 3,000 |
| Godfrey Humphries Legacy | - | - | - | - | 213,487 |
| Cleveland Youth Association | 57,151 | - | - | 57,151 | - |
| Hill Fund | 7,000 | - | - | 7,000 | - |
| Valerie Jones Music Fund | 12,130 | - | - | 12,130 | - |
| Lieutenant Colonel Cohen | |||||
| Charitable Trust | - | - | 4,093,794 | 4,093,794 | - |
| 76,330 | 23,577 | 4,110,032 | 4,209,939 | 241,655 |
Income from donations and legacies for 2023 was £241,655 of which £7,070 was restricted, £3,190 was attributable to unrestricted and £231,395 was attributable to endowment.
3 Charitable Activities
| Charitable Activities | |||||
|---|---|---|---|---|---|
| Un- | Total | ||||
| Restricted | Restricted | Endowment | 2024 | 2023 | |
| £ | £ | £ | £ | £ | |
| Tees Offshore Community Benefit | |||||
| Fund | 113,960 | - | - | 113,960 | 113,960 100,458 |
| Playzone Project | 6,902 | - | - | 6,902 | 18,096 |
| Power to Change | - | - | - | - | 2,927 |
| Sofia Offshore Windfarm | 36,666 | - | - | 36,666 | 36,666 |
| VONNE (LARCH Partnership | |||||
| Program) | 157,250 | - | - | 157,250 | 157,250 80,000 |
| Support activities | - | - | - | - | 1,800 |
| Targeted Community Interest | 137,045 | - | - | 137,045 | 137,045 - |
| Your Active Living Fund | 136,625 | - | - | 136,625 | 136,625 - |
| 588,448 | - | - | 588,448 | 588,448 239,947 |
Charitable activities for 2023 was £239,947 of which £238,147 was restricted, £1,800 was attributable to unrestricted and £Nil was attributable to endowment.
Page 20 Tees Valley Community Foundation and its Subsidiaries
Notes to the Financial Statements for the Year Ended 31 March 2024
4 Investment Income
| Investment Income | |||||
|---|---|---|---|---|---|
| Un- | Total | ||||
| Restricted | Restricted | Endowment | 2024 | 2023 | |
| £ | £ | £ | £ | £ | |
| Rental income | - | 9,631 | - | 9,631 | 8,751 |
| Interest, dividends and related tax | |||||
| credits | - | 24,028 | 371,892 | 395,920 | 395,920 325,250 |
| - | 33,659 | 371,892 | 405,551 | 405,551 334,001 |
Investment income for 2023 was £334,001 of which £Nil was restricted, £35,681 was attributable to unrestricted and £298,320 was attributable to endowment.
5 Raising Funds
| Un- | Total | ||||
|---|---|---|---|---|---|
| Restricted | Restricted | Endowment | 2024 | 2023 | |
| £ | £ | £ | £ | £ | |
| Salaries | 14,587 | - | - | 14,587 | 12,975 |
| Investment management | |||||
| costs | 5,566 | - | 72,736 | 78,302 | 61,358 |
| General office costs | 7,570 | - | - | 7,570 | 4,257 |
| Other costs | 2,193 | - | - | 2,193 | 1,567 |
| 29,916 | - | 72,736 | 102,652 | 102,652 80,157 |
Raising funds expenditure for 2023 was £80,157 of which £Nil was restricted, £24,345 was attributable to unrestricted and £55,812 was attributable to endowment.
Page 21 Tees Valley Community Foundation and its Subsidiaries
Notes to the Financial Statements for the Year Ended 31 March 2024
| 6 | Charitable Activities - Grant Making | Charitable Activities - Grant Making | |||||
|---|---|---|---|---|---|---|---|
| Unrestricted funds | Restricted funds | Total | |||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||
| £ | £ | £ | £ | £ | £ | ||
| Direct Costs | |||||||
| Salaries | - | - | 13,693 | 12,466 | 13,693 | 12,466 | |
| Grants awarded | 20,040 | 9,596 | 941,698 | 471,332 | 961,738 | 480,928 | |
| Grants returned/written | |||||||
| back | - | - | (12,491) | (5,914) | (12,491) | (5,914) | |
| External project costs | - | - | 15,992 | - | 15,992 | - | |
| Support Costs | |||||||
| Salaries | 124,383 | 110,641 | - | - | 124,383 | 110,641 | |
| Marketing & advertising | 1,588 | 8,367 | - | - | 1,588 | 8,367 | |
| Website & communications | 41,034 | 19,146 | - | - | 41,034 | 19,146 | |
| Insurance | 5,341 | 4,500 | - | - | 5,341 | 4,500 | |
| Heat & light | 1,717 | - | - | - | 1,717 | - | |
| Telephone | 359 | 219 | - | - | 359 | 219 | |
| Printing, stationery & | |||||||
| postage | 643 | 455 | - | - | 643 | 455 | |
| Office equipment and rental | Office equipment and rental - |
129 | - | - | - | 129 | |
| Computer expenses | 8,645 | 1,971 | - | - | 8,645 | 1,971 | |
| Bank charges | 386 | 347 | - | - | 386 | 347 | |
| Rent & rates | 9,579 | 7,963 | - | - | 9,579 | 7,963 | |
| Sundry expenses | 4,832 | 1,156 | - | - | 4,832 | 1,156 | |
| Depreciation and | |||||||
| amortisation | amortisation | 6,547 | 2,295 | - | - | 6,547 | 2,295 |
| Subscriptions | 2,185 | 1,521 | - | - | 2,185 | 1,521 | |
| Training | 36 | 830 | - | - | 36 | 830 | |
| Travel | 356 | 753 | - | - | 356 | 753 | |
| Governance costs (note 7) | 57,456 | 42,271 | - | - | 57,456 | 42,271 | |
| 285,127 | 212,160 | 958,892 | 477,884 | 1,244,019 | 690,044 | ||
| 7 | Analysis of Governance Costs | ||||||
| Unrestricted funds | Restricted funds | Total | |||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||
| £ | £ | £ | £ | £ | £ | ||
| Salaries | 14,587 | 12,975 | - | - | 14,587 | 12,975 | |
| General office costs | 7,570 | 4,256 | - | - | 7,570 | 4,256 | |
| Auditors remuneration | 6,560 | 5,240 | - | - | 6,560 | 5,240 | |
| Other accountancy fees | 15,884 | 13,585 | - | - | 15,884 | 13,585 | |
| Legal & professional | 10,662 | 4,648 | - | - | 10,662 | 4,648 | |
| Other costs | 2,193 | 1,567 | - | - | 2,193 | 1,567 | |
| 57,456 | 42,271 | - | - | 57,456 | 42,271 |
Page 22 Tees Valley Community Foundation and its Subsidiaries
Notes to the Financial Statements for the Year Ended 31 March 2024
8 Charitable Activities - Advice and Guidance
| Unrestricted funds | Unrestricted funds | Restricted funds | Restricted funds | Total | ||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
| £ | £ | £ | £ | £ | £ | |
| Direct Costs | ||||||
| Salaries | - | - | 7,943 | 7,427 | 7,943 | 7,427 |
| Grants awarded | - | - | 54,738 | 37,086 | 54,738 | 37,086 |
| Intelligent Investment | ||||||
| external costs | 58,998 | 13,252 | - | - | 58,998 | 13,252 |
| Power to Change external | ||||||
| costs | - | - | - | 38,677 | - | 38,677 |
| Playzone Project external | ||||||
| costs | - | - | 6,491 | 17,313 | 6,491 | 17,313 |
| 58,998 | 13,252 | 69,172 | 100,503 | 128,170 | 128,170 113,755 |
|
| Grants awarded | ||||||
| A list of grants awarded to organisations during the year is detailed in Appendix 1 to the accounts. | ||||||
| Staff numbers | ||||||
| The average number of persons employed during the year, analysed by category, was as follows:- | The average number of persons employed during the year, analysed by category, was as follows:- | |||||
| Number of Employees | ||||||
| 2024 | 2023 | |||||
| Administration | 1 | 1 | ||||
| Grant making support costs | 3 | 3 | ||||
| Fundraising | 1 | 1 | ||||
| Total | 5 | 5 | ||||
| Staff costs and Trustees’ remuneration | ||||||
| 2024 | 2023 | |||||
| £ | £ | |||||
| Salaries | 157,559 | 140,753 | ||||
| Employer’s National Insurance | 10,467 | 8,843 | ||||
| Pension Contributions | 7,167 | 6,888 | ||||
| Total | 175,193 | 156,484 |
9 Grants awarded
A list of grants awarded to organisations during the year is detailed in Appendix 1 to the accounts.
10 Staff numbers
The average number of persons employed during the year, analysed by category, was as follows:-
11 Staff costs and Trustees’ remuneration
Page 23 Tees Valley Community Foundation and its Subsidiaries
Notes to the Financial Statements for the Year Ended 31 March 2024
11 Staff costs and Trustees’ remuneration (continued)
The number of employees whose total emoluments (excluding employer pension costs) for the reporting
period in the following bands was:
| 2024 | 2023 | |||
|---|---|---|---|---|
| number | Number | |||
| £70,000 to £80,000 p.a. | £70,000 to £80,000 p.a. | £70,000 to £80,000 p.a. | 1 | 1 |
| 1 | 1 |
The Trustees received remuneration of £Nil (2023: £Nil). Trustee expenses paid in the year amounted to £Nil (2023: £Nil).
The total amount of employee benefits received by key management personnel is £84,071 (2023 - £76,573). The Trust considers its key management personnel comprise the Chief Executive.
12 Taxation
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
13 Intangible Assets
| 13 Intangible Assets |
13 Intangible Assets |
|
|---|---|---|
| Computer | ||
| Software | Total | |
| £ | £ | |
| Cost: | ||
| At 1 April 2023 | 68,320 | 68,320 |
| At 31 March 2024 | 68,320 | 68,320 |
| Depreciation: | ||
| At 1 April 2023 | - | - |
| Charge for the year | 6,832 | 6,832 |
| At 31 March 2024 | 6,832 | 6,832 |
| Net Book Value: | ||
| 31 March 2024 | 61,488 | 61,488 |
| 31 March 2023 | 68,320 | 68,320 |
Page 24 Tees Valley Community Foundation and its Subsidiaries
Notes to the Financial Statements for the Year Ended 31 March 2024
14 Tangible Assets
| 14 Tangible Assets |
14 Tangible Assets |
14 Tangible Assets |
||
|---|---|---|---|---|
| Computer | Fixtures & | |||
| Equipmen | Fittings | Total | ||
| t | ||||
| £ | £ | £ | ||
| Cost: | ||||
| At 1 April 2023 | 26,349 | 14,668 | 41,017 | |
| At 31 March 2024 | 26,349 | 14,668 | 41,017 | |
| Depreciation: | ||||
| At 1 April 2023 | 24,807 | 14,668 | 39,475 | |
| Charge for the year | 1,252 | - | 1,252 | |
| At 31 March 2024 | 26,059 | 14,668 | 40,727 | |
| Net Book Value: | ||||
| 31 March 2024 | 290 | - | 290 | |
| 31 March 2023 | 1,542 | - | 1,542 | |
| 15 | Investment property | |||
| Total | ||||
| £ | ||||
| Fair Value: | ||||
| At 1 April 2023 | 720,000 | |||
| At 31 March 2024 | 720,000 | |||
| Net Book Value: | ||||
| 31 March 2024 | 720,000 | |||
| 31 March 2023 | 720,000 |
An independent valuation of Peat Rigg outdoor training centre was carried out by H J Scott (MRICS) of BoultonCooper in February 2023. The property was valued at its market value amounting to £720,000. The trustees believe there has been no material movement in the valuation during the year.
Page 25 Tees Valley Community Foundation and its Subsidiaries
Notes to the Financial Statements for the Year Ended 31 March 2024
16 Investments
Investments are stated at fair value as at 31 March 2024 and comprise the following:-
| Company | Group | Company | Group | ||
|---|---|---|---|---|---|
| 2024 | 2024 | 2023 | 2023 | ||
| £ | £ | £ | £ | ||
| Government stocks | 40,311 | 1,361,539 | 39,806 | 1,035,697 | |
| Other fixed interest stocks | 80,624 | 2,723,176 | 59,249 | 1,541,573 | |
| UK equities | 114,810 | 3,877,863 | 152,217 | 3,960,462 | |
| Investment trusts/funds | 46,264 | 1,562,623 | 76,653 | 1,994,396 | |
| Overseas equities | 275,126 | 9,292,700 | 206,960 | 5,384,812 | |
| Deposit account | 5,806 | 196,092 | 2,950 | 76,747 | |
| 562,941 | 19,013,993 | 537,835 | 13,993,687 | ||
| Analysed as follows:- | |||||
| Investment assets in (UK) | 287,815 | 9,721,293 | 330,875 | 8,608,875 | |
| Investment assets outside (UK) | 275,126 | 9,292,700 | 206,960 | 5,384,812 | |
| 562,941 | 19,013,993 | 537,835 | 13,993,687 | ||
| 2024 | |||||
| £ | |||||
| Balance as at 1 April 2023 | 13,993,687 | ||||
| Additions | 8,280,358 | ||||
| Increase in market value of investments | 895,094 | ||||
| Disposals | (4,537,114) | ||||
| Profit on disposal of investments | 262,623 | ||||
| Movement on cash balances held | 119,345 | ||||
| Balance as at 31 March 2024 | 19,013,993 | ||||
| 17 | Debtors | ||||
| Company | Group | Company | Group | ||
| 2024 | 2024 | 2023 | 2023 | ||
| £ | £ | £ | £ | ||
| Grants & donations receivable | 120,722 | 120,722 | 31,680 | 38,750 | |
| Prepayments and accrued income | 2,500 | 10,598 | 2,121 | 10,067 | |
| Other debtors | 34,015 | - | 11,856 | - | |
| 157,237 | 131,320 | 45,657 | 48,817 | ||
| 18 | Cash at bank and in hand | ||||
| Company | Group | Company | Group | ||
| 2024 | 2024 | 2023 | 2023 | ||
| £ | £ | £ | £ | ||
| Bank: Bank accounts & cash | 579,413 | 619,638 | 481,568 | 694,246 |
Page 26 Tees Valley Community Foundation and its Subsidiaries
Notes to the Financial Statements for the Year Ended 31 March 2024
19 Creditors: Amounts falling due within one year
| Company | Group | Company | Group | |
|---|---|---|---|---|
| 2024 | 2024 | 2023 | 2023 | |
| £ | £ | £ | £ | |
| Trade creditors | 9,192 | 9,192 | 410 | 410 |
| Accruals and deferred income | 196,081 | 216,115 | 79,417 | 92,331 |
| Taxation and social security | 4,089 | 4,089 | 3,352 | 3,352 |
| 209,362 | 229,396 | 83,179 | 96,093 |
Included within accruals and deferred income is the following deferred income relating to future periods:-
| £ | ||||||
|---|---|---|---|---|---|---|
| Tees Offshore Community Benefit Fund | 119,842 | |||||
| Sofia Offshore Windfarm Fund | 36,667 | |||||
| Spark Grant | 28,512 | |||||
| 185,021 | ||||||
| 20 | Financial instruments | |||||
| Measured at fair value through income or expenditure. | Measured at fair value through income or expenditure. | |||||
| Company | Group | Company | Group | |||
| 2024 | 2024 | 2023 | 2023 | |||
| £ | £ | £ | £ | |||
| Investments (note 16) | 564,941 | 19,013,993 | 537,835 | 13,993,687 |
Page 27
Tees Valley Community Foundation and its Subsidiaries
Notes to the Financial Statements for the Year Ended 31 March 2024
21 Permanent Endowment Fund
| Permanent Endowment Fund | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Increase/ | |||||||||
| Interest, | Gain on sale | (decrease) | Transfer to | ||||||
| dividends | of | in value of | Transfer to | unrestricted | |||||
| Balance at | and | Investment | investments | investments | Restricted | Income & | Balance at | ||
| beginning | related tax | managemen | during the | during the | Distribution | Expenditure | end of | ||
| of year | Donations | credits | t charges | year | year | Funds | Fund | year | |
| £ | £ | £ | £ | £ | £ | £ | £ | £ | |
| Purpose of fund | |||||||||
| Specifically defined age groups | 207,433 | - | 4,560 | (1,056) | 5,101 | 11,055 | (8,297) | (3,112) | 215,684 |
| Education/Training | 2,216,605 | - | 48,728 | (11,284) | 54,511 | 118,134 | (88,664) | (33,249) | 2,304,781 |
| Community Benefit | 3,272,557 | 12,820 | 72,137 | (16,710) | 80,882 | 175,115 | (130,902) | (48,727) | 3,417,172 |
| Specific geographic area | 3,205,691 | - | 70,442 | (16,312) | 78,768 | 170,733 | (128,228) | (50,703) | 3,330,391 |
| Poverty/Deprivation | 342,140 | - | 7,504 | (1,738) | 8,380 | 18,175 | (13,686) | (6,173) | 354,602 |
| Donor instructed | 179,530 | 4,093,794 | 100,855 | (16,957) | (23,012) | 183,631 | (132,235) | (2,693) | 4,382,913 |
| Wellness/Disability | 145,966 | - | 7,706 | (2,250) | (61) | (2,031) | (5,838) | (2,255) | 141,237 |
| 31 March 2024 | 9,569,922 | 4,106,614 | 311,932 | (66,307) | 204,569 | 674,812 | (507,850) | (146,912) | 14,146,780 |
| 31 March 2023 | 10,775,956 | 13,820 | 240,029 | (50,421) | 282,056 | (1,095,058) | (431,039) | (165,421) | 9,569,922 |
The transfer to Unrestricted Income and Expenditure Fund represents a management charge at a rate averaging 1.5% per annum (2023: 1.5% per annum).
22 Designated Administration Fund
| 2024 | 2023 | ||
|---|---|---|---|
| £ | £ | ||
| At beginning of year | 537,835 | 602,775 | |
| Interest, dividends & related tax credits | 12,028 | 13,448 | |
| Investment management charges | Investment management charges | (2,787) | (2,771) |
| Gain on sale of investments | 13,527 | 16,325 | |
| Increase/(Decrease) in value of investments held | 29,230 | (61,803) | |
| Transfer to Unrestricted Income & Expenditure Fund | (26,892) | (30,139) | |
| At end of year | 562,941 | 537,835 |
The fund is a designated fund which is held to produce income as a contribution towards the company’s administration expenses.
The transfer to Unrestricted Income and Expenditure Fund represents a management charge at a rate of 5% per annum (2023: 5% per annum).
Page 28
Tees Valley Community Foundation and its Subsidiaries
Notes to the Financial Statements for the Year Ended 31 March 2024
23 Expendable Endowment
| Expendable Endowment | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Increase/ | |||||||||
| Interest, | Gain on sale | (decrease) | Transfer to | ||||||
| dividends | of | in value of | Transfer to | unrestricted | |||||
| Balance at | and | Investment | investments | investments | Restricted | Income & | Balance at | ||
| beginning | related tax | managemen | during the | during the | Distribution | Expenditure | end of | ||
| of year | Donations | credits | t charges | year | year | Funds | Fund | year | |
| £ | £ | £ | £ | £ | £ | £ | £ | ||
| Purpose of fund | |||||||||
| Specifically defined age groups | 85,960 | 418 | 1,941 | (451) | 2,217 | 4,762 | (17,996) | (1,294) | 75,557 |
| Education/Training | 588,258 | - | 12,932 | (2,995) | 14,467 | 31,351 | (23,530) | (8,824) | 611,659 |
| Faith based | - | - | - | - | - | - | (1,414) | 1,414 | - |
| Community Benefit Specific geographic area |
931,225 384,452 |
- 3,000 |
26,153 9,872 |
(1,429) (1,006) |
6,904 4,744 |
73,844 26,662 |
(21,454) (20,177) |
(13,968) (5,623) |
1,001,275 401,924 |
| Sport/Leisure | 280,466 | - | 8,070 | (318) | 1,535 | 23,063 | (5,924) | (4,207) | 302,685 |
| Wellness/Disability | 45,133 | - | 992 | (230) | 1,110 | 2,405 | (1,805) | (677) | 46,928 |
| 31 March 2024 | 2,315,494 | 3,418 | 59,960 | (6,429) | 30,977 | 162,087 | (92,300) | (33,179) | 2,440,028 |
| 31 March 2023 | 2,318,155 | 217,575 | 58,291 | (5,391) | 31,498 | (165,785) | (103,680) | (35,169) | 2,315,494 |
The transfer to Unrestricted Income and Expenditure Fund represents a management charge at a rate averaging 1.5% per annum (2023: 1.5% per annum).
Page 29
Tees Valley Community Foundation and its Subsidiaries
Notes to the Financial Statements for the Year Ended 31 March 2024
24 Distribution Fund
| Transfer | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| from | Transfer to | |||||||||
| Grants | Permanent/ | unrestricted | Balance at | |||||||
| Balance at | Charitable | returned | External | Expendable | Income & | 31 March | ||||
| 1 April | activities | / written | Grants | project | Endowment | Expenditure | 2024 | |||
| Purpose of fund | 2023 | Donations | income | back | awarded | costs | Fund | Fund | ||
| Flow through Funds: | £ | £ | £ | £ | £ | £ | £ | £ | ||
| Tees Offshore | ||||||||||
| Community Benefit Fund | Specific geographic area | 175,194 | - | 103,600 | - | (146,712) | - | - | - | 132,082 |
| Sport England | Sport/Leisure | 679 | - | - | - | - | - | - | - | 679 |
| Surviving Winter Fund | Specific geographic area | 253 | - | - | - | - | - | - | - | 253 |
| St Hilda’s | Specific geographic area | 4,037 | - | - | - | - | - | - | - | 4,037 |
| Power to Change | Specific geographic area | 6 | - | - | - | - | - | - | - | 6 |
| Sofia Offshore Windfarm | Specific geographic area | 35,098 | - | 33,333 | - | (26,700) | - | - | - | 41,731 |
| Playzone Project | Sport/Leisure | 782 | - | 5,709 | - | - | (6,491) | - | - | - |
| VONNE (LARCH) | Specific geographic area | 38,414 | - | 150,500 | - | (54,738) | - | - | - | 134,176 |
| Targeted Community Interest | Sport/Leisure | - | - | 137,045 | - | (66,164) | (8,636) | - | - | 62,245 |
| Your Active Living Fund | Sport/Leisure | - | - | 136,625 | 12,491 | (97,292) | (7,356) | - | - | 44,468 |
| Permanent Endowment Distribution funds: | ||||||||||
| Specifically defined age groups | 19,448 | 57,151 | - | - | (6,050) | - | 8,297 | - | 78,846 | |
| Education/Training | 130,759 | - | - | - | (127,828) | - | 88,664 | - | 91,595 | |
| Community Benefit Specific geographic area |
364,418 297,848 |
49 - |
- - |
- - |
(111,292) (103,554) |
- - |
130,902 128,228 |
- - |
384,077 322,522 |
|
| Poverty/Deprivation | 39,284 | - | - | - | (750) | - | 13,686 | - | 52,220 | |
| Donor instructed | 23,770 | - | - | - | (81,710) | - | 132,235 | (10,000) | 64,295 | |
| Wellness/Disability | 4,159 | - | - | - | (8,750) | - | 5,838 | - | 1,247 | |
| Expendable Endowment Distribution Funds: | ||||||||||
| Specifically defined age groups | 61,051 | - | - | - | (54,426) | - | 17,996 | - | 24,621 | |
| Education/Training | 89,504 | 19,130 | - | - | (36,780) | - | 23,530 | - | 95,384 | |
| Faith based | (1,414) | - | - | - | - | - | 1,414 | - | - | |
| Community Benefit | 81,761 | - | - | - | (28,310) | - | 21,454 | - | 74,905 | |
| Specific geographic area | 62,740 | - | - | - | (41,980) | - | 20,177 | - | 40,937 | |
| Sport/Leisure | 19,166 | - | - | - | - | - | 5,924 | - | 25,090 | |
| Wellness/Disability | 4,354 | - | - | - | (3,400) | - | 1,805 | - | 2,759 | |
| 31 March 2024 | 1,451,311 | 76,330 | 566,812 | 12,491 | (996,436) | (22,483) | 600,150 | (10,000) | 1,678,175 | |
| 31 March 2023 | 1,249,762 | 7,070 | 218,254 | 5,914 | (508,418) | (55,990) | 534,719 | - | 1,451,311 |
Of the above balance £419,677 relates to the parent company (2023: £254,463).
Page 30
Tees Valley Community Foundation and its Subsidiaries
Notes to the Financial Statements for the Year Ended 31 March 2024
| 25 | Income & Expenditure Fund - unrestricted | Income & Expenditure Fund - unrestricted | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | ||||||||||
| £ | £ | ||||||||||
| At beginning of year | 259,445 | 243,360 | |||||||||
| Income | 33,208 | 10,741 | |||||||||
| Expenditure | (348,435) | (348,435) | (234,615) | ||||||||
| Transfers | 225,171 | 239,959 | |||||||||
| At end of year | 169,389 | 259,445 | |||||||||
| 26 | Designation Distribution Fund | ||||||||||
| Increase/ | |||||||||||
| Interest, | Gain on sale | (decrease) in | Transfer to | ||||||||
| Balance at | dividends | of | value of | unrestricted | |||||||
| beginning | and | Investment | investments | investments | Income & | Balance at | |||||
| of year | related tax | management | during the | during the | Expenditure | Grants | 31 March | 31 March | |||
| Donations | credits | charges | year | year | Fund | awarded | 2024 | ||||
| £ | £ | £ | £ | £ | £ | £ | £ | £ | |||
| Purpose of fund | |||||||||||
| Community Benefit | 475,740 | - | 10,096 | (2,338) | 11,294 | 24,475 | (6,889) | (20,040) | 492,338 | ||
| Specific geographic area | 100,772 | - | 1,904 | (441) | 2,130 | 4,616 | (1,299) | - | 107,682 | ||
| 31 March 2024 | 576,512 | - | 12,000 | (2,779) | 13,424 | 29,091 | (8,188) | (20,040) | 600,020 | ||
| 31 March 20223 | 628,006 | 3,000 | 13,482 | (2,775) | 16,286 | (62,661) | (9,230) | (9,596) | 576,512 |
The transfer to Unrestricted Income & Expenditure Fund represents a management charge at a rate averaging 1.5% per annum (2023: 1.5% per annum).
Page 31
Tees Valley Community Foundation and its Subsidiaries
Notes to the Financial Statements for the Year Ended 31 March 2024
27
Linked Funds
Tees Valley Community Foundation is the sole trustee of Cleveland Community Foundation, The Speck Walker Fund, The Teesside Emergency Relief Fund and The Agnes Spencer Charitable Trust. All the funds have been consolidated on a line by line basis in the SOFA. A summary of the results of each linked fund is shown below:-
| Cleveland Community | Cleveland Community | The Teesside Emergency | The Teesside Emergency | The Agnes Spencer | The Agnes Spencer | |||
|---|---|---|---|---|---|---|---|---|
| Foundation | The Speck Walker Fund | The Speck Walker Fund | Fund | Charitable Trust | ||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |
| £ | £ | £ | £ | £ | £ | £ | £ | |
| Balance at 1 April 2023 | 12,231,824 | 13,197,221 | 449,761 | 496,305 | 287,659 | 310,377 | 689,528 | 714,930 |
| Donations | 3,904,653 | 234,395 | 49 | 7,070 | - | - | - | - |
| Interest, dividends and related tax credits | 354,703 | 275,806 | 9,185 | 10,369 | 5,705 | 6,440 | 15,705 | 19,189 |
| Investment management charges | (112,713) | (54,598) | (2,127) | (2,134) | (1,321) | (1,325) | (537) | (530) |
| Gain on sale of investments during the year | 229,756 | 306,424 | 10,252 | 12,508 | 6,367 | 7,768 | 2,595 | 3,139 |
| Increase/(decrease) in value of investments | ||||||||
| during the year | 1,096,528 | (1,211,914) | 22,240 | (48,303) | 13,812 | (30,000) | 54,849 | (33,285) |
| Transfer to Unrestricted Income & Expenditure | ||||||||
| Fund | (175,631) | (184,946) | (7,962) | (9,018) | (4,945) | (5,601) | (9,740) | (10,255) |
| Grants awarded | (581,810) | (330,564) | (18,500) | (17,036) | (750) | - | (23,810) | (3,660) |
| Grants returned / written back | - | - | - | - | - | - | - | - |
| Balance at 31 March 2024 | 16,947,310 | 12,231,824 | 462,898 | 449,761 | 306,527 | 287,659 | 728,590 | 689,528 |
Page 32
Tees Valley Community Foundation and its Subsidiaries
Notes to the Financial Statements for the Year Ended 31 March 2024
28 Fund Analysis
The assets held by each of the Foundation’s funds are analysed as follows:-
| Intangibl | |||||
|---|---|---|---|---|---|
| e and | Net | ||||
| Investmen | Tangible | Current | |||
| t Property | Investments | Assets | Assets | Total | |
| £ | £ | £ | £ | £ | |
| Permanent Endowment Fund | - | 14,146,780 | - | - | 14,146,780 |
| Designated Administration | |||||
| Fund | - | 562,941 | - | - | 562,941 |
| Expendable Endowment Fund | - | 2,440,028 | - | - | 2,440,028 |
| Restricted Distribution Fund | - | 1,264,224 | - | 413,951 | 1,678,175 |
| Peat Rigg | 720,000 | - | - | - | 720,000 |
| Unrestricted Income & | |||||
| Expenditure Fund | - | - | 61,778 | 107,611 | 169,389 |
| Designated Distribution Fund | - | 600,020 | - | - | 600,020 |
| At 31 March 2024 | 720,000 | 19,013,993 | 61,778 | 521,562 | 20,317,333 |
| At 31 March 2023 | 720,000 | 13,993,687 | 69,862 | 646,970 | 15,430,519 |
29 Control Relationships
At 31 March 2024 Tees Valley Community Foundation was under the control of the Trustees as noted on page 1. Tees Valley Community Foundation is the sole trustee of Cleveland Community Foundation (Registered Charity no 1111222-1, previously 700568) which from 1 April 2006 holds all Endowed Funds and is responsible for grant making out of those funds.
Tees Valley Community Foundation became the sole Trustee of The Speck Walker Fund (Registered Charity number 1111222-2) on 12 July 2010.
Tees Valley Community Foundation became the sole Trustee of The Teesside Emergency Relief Fund (Registered Charity number 1111222-3) on 14 March 2011.
Tees Valley Community Foundation became the sole Trustee of The Agnes Spencer Charitable Trust (Registered Charity Number 1111222-4) on 28 March 2014.
30 Related Party Transactions
During the year the following transactions took place between Tees Valley Community Foundation and Cleveland Community Foundation:-
| Cleveland Community Foundation:- | ||
|---|---|---|
| 2024 | 2023 | |
| £ | £ | |
| Admin charge transferred from Cleveland Community | ||
| Foundation to Tees Valley Community Foundation | 225,171 | 239,959 |
Hugh McGouran sat on the Advisory Board until June 2022 of Peat Rigg Community Interest Company from whom the charity received rental income of £8,751 (2023: £8,751). There were no balances outstanding in the current or prior year. Tees Valley Community Foundation has awarded grants totalling £70,000 (2023: £50,000) to Peat Rigg Community Interest Company to enhance future development. Hugh is also a director (from 26 January 2024) of Dementianet CIC of which has been awarded grants totalling £19,905 (2023: £Nil). Hugh is also a director of Cleveland Alzheimer’s Residential Centre Limited of which has been awarded grants totalling £4,500 (2023: £Nil).
Page 33
Tees Valley Community Foundation and its Subsidiaries
Notes to the Financial Statements for the Year Ended 31 March 2024
30 Related Party Transactions continued..
Trustee Jeffrey Taylor is a Partner in a partnership which operates a franchise with Redmayne Bentley and they manage a portfolio on behalf of TVCF. The investment portfolio amounted to £188,654 at 31 March 2024 (2023: £185,289) and investment management fees for the year totalled £2,250 (2023: £2,517).
Trustee Wendy Shepherd is a Director of Seen Heard Believed a charity of which has been awarded grants by TVCF totalling £25,000 (2023: £Nil).
31
Unapplied Total Return
Tees Valley Community Foundation operates a total return investment strategy and transfers income from its funds to pay for grants and running costs. The movements on Unapplied Total Return in respect of the Permanent Endowment Funds are:-
| Permanent Endowment Funds are:- | |
|---|---|
| 2024 | |
| £ | |
| Balance as at 1 April 2023 | 1,000,544 |
| Transferred to Income & Expenditure Fund from | |
| Permanent Endowment Funds | (146,911) |
| Transferred to Distribution Funds | (507,851) |
| Total Return for the period (income, realised gains/losses | |
| and changes in market value) | 1,125,006 |
| Closing balance carried forward at 31 March 2024 | 1,470,789 |
32 Operating Lease Commitments
Total future minimum lease payments under non-cancellable operating leases are as follows:
| 2024 | 2023 | |
|---|---|---|
| Land & buildings | £ | £ |
| Expiry: | ||
| Within one year | 8,000 | 2,500 |
| 8,000 | 2,500 |
33 Pensions
The charity operates a contributory defined contribution pension scheme for all employees. The company contributions are charged to the Statement of Financial Activities in the period to which they relate. £7,168 was paid in contributions during the year (2023: £6,888). The amount outstanding at 31 March 2024 was £Nil (2023: £Nil).
Page 34
Tees Valley Community Foundation and its Subsidiaries
Notes to the Financial Statements for the Year Ended 31 March 2024
34 Reconciliation of Net Income/(Expenditure) to Net Cash Flow from Operating Activities
| Company | Group | Company | Group | |
|---|---|---|---|---|
| 2024 | 2024 | 2023 | 2023 | |
| £ | £ | £ | £ | |
| Net income/(expenditure) for year | 100,264 | 4,886,814 | 177,564 | (882,495) |
| Interest, dividends and rent shown | ||||
| in investing activities | (21,659) | (405,551) | (22,199) | (334,001) |
| Depreciation of tangible fixed | ||||
| assets | 1,252 | 1,252 | 2,836 | 2,836 |
| Amortisation of intangible fixed | ||||
| assets | 6,832 | 6,832 | - | - |
| Receipt of endowment | - | (4,209,939) | - | (231,395) |
| (Gains)/losses on investments | (42,757) | (1,157,717) | (179,522) | 814,142 |
| (Increase)/decrease in debtors | (111,580) | (82,503) | 66,221 | 64,218 |
| Increase/(decrease) in creditors | 126,183 | 133,303 | (27,746) | (29,477) |
| 58,535 | (827,509) | 17,154 | (596,172) |
Page 35