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2021-03-31-accounts

NORTHERN LEARNING TRUST (a company limited by guarantee )

Trustees Annual Report and Financial Statements for the Year Ended 31 March 2021

Charity No: 1120330 Company No: 06316736

NORTHERN LEARNING TRUST

Contents Page
Legal and Administrative Information 2
Report of the Trustees 3-10
Independent examiner's report to the Trustees 11
Statement of Financial Activities 12
Balance Sheet 13
Statement of Cash Flows 14
Notes forming part of the Financial Statements 15-26

1

NORTHERN LEARNING TRUST

REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 MARCH 2021

Legal and Administrative Information

The Directors of the charitable company (the charity) are its Trustees for the purposes of charity law and throughout this report are collectively referred to as the Trustees.

Charity Number: 1120330 Company Number: 06316736 Principal Office: Cheviot House Beaminster Way East Newcastle upon Tyne NE3 2ER www.northernlearningtrust.org.uk Trustees: Anthony Brown Chair Ann Wynn Vice Chair Michael Ranson Treasurer Roy Alexander (appointed 22 April 2021) Barrie Cooper (resigned 21 January 2021) Anne Delandre (appointed 22 April 2021) Kathleen Gallagher (resigned 21 January 2021) Victor Ottaway (resigned 16 July 2020) Dr Tebabu Wubetu (appointed 24 November 2020)

Secretary: Liz Sheerin
Key management personnel: Gill Smith Chief Executive
Liz Sheerin Business Manager
Ian Robson Operations Manager
Bankers: Lloyds Bank PLC
102 Grey Street
Newcastle upon Tyne
NE1 6AG
Accountants: MHA Tait Walker
Chartered Accountants
Bulman House, Regent Centre
Newcastle upon Tyne
NE3 3LS
Solicitors: Ward Hadaway
Sandgate House,
102 Quayside
Newcastle upon Tyne
NE1 3DX
Investment Advisors: UBS Wealth Management (UK) Ltd
2 St James’ Gate
Newcastle upon Tyne
NE4 7JH

2

NORTHERN LEARNING TRUST

REPORT OF THE TRUSTEES FOR THE PERIOD ENDED 31 MARCH 2021

1. Aims and Objectives

1.1 Purpose and Aims

The purpose of the Trust as set out in the obje cts contained in the company’s M emorandum and Articles of Association is to:

The Trust has the aim of contributing to the quality of life of the people across the North East by increasing skills, confidence and self-esteem through a range of supportive and personalised programmes. These include Functional Skills, Employability Skills, ESOL, Alternative Education, programmes for those Not in Education, Employment or Training (NEETS), Family Learning and Parenting, Mentoring and first step engagement activities.

The unique selling point of the Trust is the ability of staff to engage, motivate and retain the hardest to reach individuals, by delivering unique, flexible programmes of learning and enterprise in the heart of our communities in the North East. The Trust aims to improve skill levels of residents and additionally give them confidence to:

1.2 Ensuring the Work Delivers Our Aims

The Trust reviews its aims, objectives and activities each year and updates both the Business and Delivery Plans to reflect the decisions taken. The review looks at achievements and outcomes of the work over the previous 12 months. Additionally, it looks at the success of each key activity and the benefits brought to the groups of people the Trust was set up to help. It also helps us ensure the aim, objectives and activities remain focussed on the stated purpose. The Trustees have taken account of the guidance contained in the Ch arity Commission’s guidance on Public Benefit when reviewing our aims and objectives, and in planning our future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives.

1.3 The Focus of Our Work

The main objectives for the year were to continue to develop and deliver services which meet the needs of our service users and stakeholders and to explore opportunities to grow and develop our provision.

Key areas of work included:

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Despite the challenges presented by Covid 19 and the need to adhere to social distancing and lockdown regulations, we have successfully continued to support our learners and service users.

Adult and Community Services

We established a new Learning Hive ™ in County Durham and continued to deliver our Learning Hive ™ services in Northumberland and Newcastle, in partnership with a number of social housing providers in the North East.

We continued to deliver our Adult and Community Learning service in South Tyneside, adapting to online and distance learning when Covid restrictions prevented face to face delivery.

Children and Young People Services - personalised learning programmes for young people aged 11-19 not in education or at risk of disengaging from education. Delivery was initially changed to an online and distance learning model due to Covid 19 lockdown and social distancing requirements but suspended from January 2021.

Criminal Justice Services

Our Veteran Mentoring Support project, part of the Transforming Rehabilitation initiative, and our Reaching Out mentoring service for offenders moving on from the Criminal Justice System have been delivered using an online/remote model during Covid restrictions.

Mentoring Services

Our Veterans’ Cycle Club supports those with mental and physical health issues and helps prevent isolation in armed forces veterans. The Women’s Snugs mentoring project provides a safe space and support for women offenders to form supportive relationships and avoid further offending. Both projects were paused during the year due to Covid but delivery has now resumed.

1.4 How Our Activities Deliver Public Benefit

The Trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the aims and objectives and in planning future activities. The charitable objectives are also set out in order to provide a clear and demonstrable public benefit.

All our charitable activities focus on increasing the learning and skills levels of individuals thereby providing skills, confidence and self-esteem enabling them to improve their quality of life. By providing these activities they further our charitable purpose for the public benefit.

1.5 Who Used and Benefitted from Our Services?

The objects of the Trust and the funding we receive limits the area in which we are able to provide services to the North East of England.

Although economic performance has improved in the past few years the North East economy continues to lag behind the national averages, particularly in employment, skills and earnings. Significant gaps in terms of education, achievement and employment continue to exist between different areas and the challenge is to achieve active and resilient communities in a sustainable economy.

Because participation (the number of people of working age in employment) is below the national average, the North East Local Enterprise Strategic Economic Plan identifies that in order to deliver greater prosperity for the people of North East England it will be necessary to:

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The funding we receive is targeted at families and individuals with low level skills, low confidence and low aspiration. Most of our work is in the most deprived areas with the highest level of need. All services are provided free of charge to learners. Further information about who benefits directly from our services is explained in the analysis of achievements and performance.

1.6 Fundraising

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

2. Achievements

The main areas of charitable activity are the provision of a range of bespoke programmes and sessions offering skills development and mentoring to those individuals who have the lowest levels of skills and confidence, and who are least likely to seek support from the more formal – statutory agencies. In 2020 2021, Covid 19 and its associated restrictions severely impacted our ability to engage and support our beneficiaries, resulting in reduced numbers of learners and service users benefitting from our support. During this year we supported approximately 500 people to improve their functional and digital skills, develop employability skills, support their child’s learning and d evelopment and achieve qualifications to support their progress towards employment and financial stability. This is around 50% of our usual number of beneficiaries.

These activities and the achievements are described below.

2.1 Adult and Community Services

Learning Hives ™

A Learning Hive ™ is a partnership with social housing providers targeting hard to reach neighbourhoods with high levels of inactivity, unemployment and low levels of social capital. From agreed community venues (such as a vacant residential property), specialist Community Engagement Tutors work with tenants to develop new skills for learning and working in their neighbourhoods. At the end of this reporting period eight Learning Hives ™ were maintained, including the new Learning Hive ™ in Durham with funding from the Durham L!NKCD project and Bernicia Housing. Our Learning Hives™ supported over 300 beneficiaries this year. We have secured funding to maintain all o f the Learning Hives™ until at least 2022 through the – European Social Fund as part of the 2014 2020 European Structural and Investment Fund for Growth in England.

We deliver the Learning Hives ™ through the Bridge Project and the North of Tyne Working Homes projects in Northumberland, the North of Tyne CLLD-Newcastle Hives ™ project in Newcastle and the L!NKCD project in County Durham, providing support with employability skills, literacy and numeracy for those furthest away from the jobs market. The Bridge project is funded via the European Social Fund and the National Lottery Community Fund.

Family Learning

The Trust continued to successfully deliver adult and community learning programmes in South Tyneside. These services were re-commissioned in August 2020. We developed a successful blended delivery model utilising on-line and distance learning methods to deliver this provision.

2.2 Children and Young People Services

Special Education Needs

We have continued to offer one-to-one support for young people in Newcastle who are not attending school for a variety of reasons. However, take up for the service has been reduced due to Covid restrictions.

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2.3 Criminal Justice Services

Veterans mentoring support

The Trust continued to deliver support for Armed Forces Veterans within the criminal justice system who require support to resettle into their communities and progress towards employment. Our contract with Sodexo under Transforming Rehabilitation, ending in June 2021, has helped us to engage with over 60 veterans each year and help them access support with finances, addiction, mental health issues and finding employment. Again due to Covid we moved to blended model of support for this cohort which has proven very successful.

2.4 Mentoring Services

Reaching Out Project

With funding from Lloyds Bank Foundation, we continued to recruit and train volunteer mentors to work with ex-offenders in Tyne & Wear. A further fifteen mentors were recruited and trained and went on to support another 30 individuals giving a total of over 180 mentees supported in the duration of this project. This project ended in April 2021.

Women’s Snugs Project

The full roll- out of our Women’s Snugs Project, mentoring and supporting female ex -offenders, was unfortunately delayed due to Covid, but delivery has now resumed.

Veterans’ Cycle Club

As with the W omen’s Snugs, our ability to deliver a full service on this project has been impacted due to Covid restrictions; the project has now restarted.

3. Consultancy, Research and Training

The Trust continues to offer consultancy, training and research services to other organisations.

4. Financial Review

During the year we have secured additional grants, contracts and donations to achieve strong growth in income of 15% from last year. To continue to deliver our services we have employed additional tutors, leading to staff costs increasing by 18% in the same period, and costs overall increasing by 12%. We report a net surplus of £143,042, including an increase of £57,524 in the value of Investments. The increase in reserves is highlighted in our accounts for the year. The impact of Covid-19 lockdowns and isolating measures during the year have had less impact on our operating results than might have been feared as we have largely been able to continue to deliver our services remotely via telephone, email and other internet methods. In fact we secured some Covid related grant funding to enable us to deliver additional services and were grateful to be able to claim HMRC furlough grant for those staff working on services that could not be delivered remotely. These two grants amounted to £33,061.

We expect funding levels to reduce in 2021/22 due to a number of contracts ending during the year. However extensions to our EU funded projects are being sought by our commissioners and we are hopeful that we will be able to continue to deliver most of our services into 2022/23. We are continuing to update our business plan, and will continue to invest and develop new relationships, markets and innovative programmes to ensure the future sustainability of the organisation.

Trustees and managers continue to review and regularly monitor progress against the business and delivery plans.

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5. Principal Funding Sources

The Trustees are grateful to the following for funding the work of the Trust during the period:

Their support has been essential in allowing the Trust to continue to deliver services across the North East.

6. Investment Policy

The strategic aims and development of the Trust specify that the Trustees should ensure the best use of reserves over the long term showing due diligence and an agreed level of risk averseness. The Trustees have adopted a policy of investing a proportion of reserves with UBS Wealth Management Ltd. The investment objective is to create a balance between capital growth and income, which over the long term aims to maintain the real value of the assets. This Investment Policy is kept under regular review.

7. Pay Policy for Key Management Personnel

The board, who give their time freely and no trustees received remuneration in the year, have considered who the Key Management Personnel (KMP) of the charitable company are, as noted in the Reference and Administration section. Together with the board, these KMP are those in charge of directing and controlling, running and operating the activities of the charitable company on a day to day basis.

The pay of the KMP is reviewed annually. The Trustees benchmark against pay levels of other charities and similar organisations within the sector and the region. Pay levels are set using this information together with budget and forecast information, ensuring that the charitable company can afford any proposed increases. The Board of Trustees then consider any uplift to remuneration.

8. Reserves Policy and Going Concern

The calculation of free reserves is based on the definition included in the charity statement of recommended practice (SORP), which provides recommendations for accounting and reporting for charities. The Trustees have examined the requirements of the charitable company to hold free reserves - those reserves not invested in tangible fixed assets, excluding long term liabilities, or designated or restricted for a purpose. This is before the designation of a Future Cost Reserve of £58,720 (2020: £55,219) and a Match Fund Reserve of £20,695 (2020: £nil), narrative for which can be found in note 14 to the financial statements. This exercise considered both the normal requirements for working capital and the loss of income of a hypothetical but reasonable reduction in the scale of operations. Resulting from this, the trustees consider it appropriate to identify a requirement for free reserves equivalent to four months’ operating costs, which equates to a range of £160,000 to £190,000.

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At the year end, free reserves were £116,175 (2020: £63,526) an improvement of £52,649 in the year.

The trustees recognise that the charity will need to generate surpluses in order to maintain their target level of free reserves. The need for the charity's services continues to grow and therefore the demand on future reserves will also be greater, hence the charity continues to require future funding towards its unrestricted reserves and the support of its funding partners.

The Trustees have prepared a budget and cash flow forecast and have concluded that the charity continues to be a going concern for the foreseeable future. On that basis they have continued to adopt the going concern basis when preparing the financial statements.

9. Plans for Future Periods

We will continue to work to build relationships with current and potential new partners and explore new markets to develop and deliver services.

The Trust will focus on the following areas:

10. Structure, Governance and Management

10.1 Governing Document

Northern Learning Trust is a charitable company limited by guarantee. It was registered as a charity on 24 February 1999 and incorporated on 18 July 2007. The company was established under a Memorandum and Articles 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 of £1.00.

10.2 Appointment of Trustees

As set out in the Memorandum and Articles of Association the Board shall consist of no more than 12 Trustees and no less than 3. At each Annual General Meeting a quarter of the Trustees retire from office, the longest serving retiring by rotation. A retiring Trustee is eligible for reelection. No Trustee may serve more than 8 years without at least a 1 year break unless they are unanimously requested to do so by members.

Mr Victor Ottoway, Mrs Kathleen Gallagher and Mr Barrie Cooper retired from the Board of Trustees.

– The Trust appointed three new trustees Dr Tebabu Wubetu, Mrs Ann Delandre and Mr Roy Alexander. The new Trustees have expertise in wellbeing, housing and education.

When considering the appointment of new Trustees the Board has regard to specialist or professional skills of the existing Trustees and any requirement for additional skills. In the event of any particular skills being lost through retirement or resignation, suitable individuals are recruited through an advertisement and selection process for appointment to the Board.

All Trustees give their time voluntarily and received no benefits from the charity. No Trustees claimed expenses during the year.

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10.3 Trustee Induction and Training

New Trustees are invited to meet with the Chair and Chief Executive to familiarise themselves with the Trust and the context in which it operates. This covers:

Trustees also receive an induction pack of internal information together with publications from the Charity Commission. The Chief Executive organises opportunities for the Trustees to become familiar with the work of the Trust by visiting the different projects and meeting the staff. Trustees are also invited to attend issue specific focus groups or projects.

10.4 Organisation

The Board of Trustees has responsibility for the strategic direction and policy of the charity. It meets quarterly and when necessary working groups are constituted.

The Chief Executive is appointed by the Trustees to manage the day to day operations. To facilitate effective operations, the Chief Executive has delegated authority, within the terms of delegation approved by the Trustees, for operational matters including finance, employment and service delivery.

10.5 Risk Management

The Trustees have a risk management strategy that comprises:

Every 3 years the organisation undertakes a strategic review. Each year the organisation produces updated Business and Action Plans which are fully consulted with Trustees, management and staff teams. They are very much working documents which recognise the need for diversification, development and expansion of the Trust’s core business. A key element in the management of financial risk is the setting of a Reserves Policy and its regular review by Trustees and the managed investment of its reserves.

10.6 Going Concern

The Trustees recognise that Northern Learning Trust is currently dependent on income from a variety of sources in order to sustain its activities.

As this report was prepared, the world was still suffering the COVID-19 pandemic. Head Office and the Learning Hives ™ are open only on an appointment basis and restrictions will remain until restrictions are lifted. The Trustees have considered the impact these restrictions will have on the financial sustainability of the charity. The majority of staff continue some working from home and one part time staff member remains furloughed. For as long as is necessary, the Trustees will apply for whatever Government assistance is available to assist with paying salaries and generally in terms of grants for small businesses.

The Trustees have prepared a budget and cashflow forecast and have concluded that the charity continues to be a going concern for the foreseeable future. On that basis they have continued to adopt the going concern basis when preparing the financial statements.

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10.7 Statement of Trustees’ Responsibilities

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

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

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure 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.

10.8 Independent Examiner

Simon Brown BA ACA DChA has been re-appointed as independent examiner for the ensuing year.

10.9 Small Company Provisions

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

This report was approved by the Board on 6 July 2021 and signed on its behalf by:

…………………………………………………. Date…………………………………

A Brown Chair

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NORTHERN LEARNING TRUST

INDEPENDENT EXAMINER ’S REPORT TO THE COMPANY’S MEMBERS

I report to the charity Trustees on my examination of the accounts of the Charitable Company for the year ended 31 March 2021.

Responsibilities and basis of report

As the charity’s trustees of the Charitable Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

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

Independent examiner’s statement

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

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

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

  2. the accounts do not accord with those records; or

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

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

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

…………………………..……………………… Simon Brown BA ACA DChA MHA Tait Walker Chartered Accountant Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS Date................................................................

MHA Tait Walker is a trading name of Tait Walker LLP

11

NORTHERN LEARNING TRUST

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME & EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

Notes
Income from:
Donations and grants
2
Other grants
2
Donations and Grants
Charitable activities
3
Investments
4
Total Income
Expenditure
Charitable activities
5
Total Expenditure
Net income/(expenditure)
Other recognised
gains/(losses):
Profit/(loss) on revaluation of
investments
9
Net income/(expenditure)
before transfers
Transfers between funds13
Net movement in funds
Reconciliation of Funds:
Total funds brought forward
Total funds carried forward		 Restricted
2021
41,615
-
41,615
273,116
-
314,731
286,412
286,412
28,319
-
28,319
-
28,319
29,607
57,926		 Unrestricted
2021
20,299
33,061
53,360
194,760
4,746
252,866
195,667
195,667
57,199
57,524
114,723
-
114,723
337,118
451,841		 Year to
31.03.21
Total
£
61,914
33,061
94,975
467,876
4,746
567,597
482,079
482,079
85,518
57,524
143,042
-
143,042
366,725
**509,767 **		 Year to
31.03.20
Total
£
67,182
-
67,182
422,417
4,214
493,813
430,609
430,609
63,204
(28,293)
34,911
-
34,911
331,814
366,725

The statement of financial activities includes all gains and losses in the year. All incoming resources and resources expended derive from continuing activities.

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NORTHERN LEARNING TRUST Company Registration Number: 06316736

BALANCE SHEET AS AT 31 MARCH 2021

Notes
Fixed Assets
Tangible assets
Investments
8
9
Current Assets
Debtors
Cash at bank and in hand
10
Creditors: amounts falling
due within one year
11
Net Current Assets
NET ASSETS
12
Funds of the Charity
Designated funds
Revaluation funds
General funds
14
14
14
Total unrestricted funds
Restricted funds
13+14
TOTAL
13		 31.03.21
£
312
335,353
335,665
115,298
118,908
234,206
(60,104)
174,102
509,767
79,415
58,379
314,046
451,841
57,926
**509,767 **		 31.03.20
£
509
273,083
273,592
103,710
81,535
185,245
(92,112)
93,133
366,725
55,219
855
281,044
337,118
29,607
366,725

For the year ending 31st March 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Trustees' responsibilities:

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

These financial statements were approved by the Directors and signed on their behalf by:

……………………………………………………

Date …………………………………..

A Brown, Chair and Director

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NORTHERN LEARNING TRUST Company Registration Number: 06316736

STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31 MARCH 2021

Notes

Cash flows from operating activities
Net cash provided by operating activities
Adjustments to cash flows from non-
cash items
Depreciation
Investment income
Investment Charge levied in Portfolio
4
Working capital adjustments
Increase in debtors
(Decrease)/increase in creditors
10
11
Net cash flows from operating activities
Cash flows from investing activites
Purchase of tangible fixed assets
Investment income received
Purchase of investments
8
4
9
Net cash flows from investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at 1 April
Cash and cash equivalents at 31 March		 31.03.21
£
85,518
197
(4,746)
-
80,969
(11,588)
(32,008)
37,373
-
4,746
(4,746)
-
37,373
81,535
118,908		 31.03.20
£
63,204
385
(4,214)
680
60,055
(41,491)
8,089
26,653
(592)
4,214
(4,214)
(592)
26,061
55,474
81,535

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NORTHERN LEARNING TRUST

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES

1.1 General Information

The charity is a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Northern Learning Trust, Cheviot House, Beaminster Way East, Kingston Park, Newcastle upon Tyne, NE3 2ER.

1.2 Accounting Basis

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102) effective 1 January 2019) and the Charities Act 2011.

The financial statements have been prepared under the historical cost convention, except for investments which are included at market value.

The functional currency of the charity is Sterling.

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. In accordance with the Charities SORP (FRS 102) the charity has elected to apply the provisions of Section 11 "Basic Financial Instruments" and Section 12 "Other Financial Instruments Issues" of FRS102, in full to all of its financial instruments.

1.3 Preparation of the accounts on a going concern basis

After a reduction in income in previous years, the Tru st’s sources of income have become more stable. The Trustees have prepared a budget and cashflow forecast and have concluded that, even with the potential impact of COVID-19, the charity continues to be a going concern for the foreseeable future. Therefore, the Trustees are of the view that the charitable company has sufficient resources to maintain its activities for at least the next 12 months (from the date of approving the financial statements). As a result the charitable company's financial statements have been prepared on a going concern basis.

1.4 Income

Income includes amounts received under contract or where entitlement to grant funding is subject to specific performance conditions is recognised as earned (as the related goods or services are provided).

Donations and grant income is recognised where there is entitlement, receipt is probable and the amount can be measured with sufficient reliability.

In the event that a donation or grant is subject to conditions that require a level of performance before the charitable company is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charitable company and it is likely that those conditions will be fulfilled in the reporting period.

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1.5 Investment income

Income from investments is included in incoming resources once the dividend is declared and notification has been received of the dividend due. This is normally upon receiving notification by our investment advisor of the dividend.

Interest on funds held on deposit is included upon notification of the interest paid or payable by the bank.

1.6 Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charitable company to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses, including support costs and governance costs, are allocated or apportioned to the applicable expenditure headings in the statement of financial activities. Note 5 contains further information on the basis for allocation.

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

1.7 Allocation of support and governance costs

Support costs have been differentiated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the charitable company and its compliance with regulation and good practice. These costs include costs related to the statutory audit and other costs with an apportionment of overhead and support costs.

Governance costs and support costs relating to charitable activities have been apportioned as set out in Note 5.

1.8 Realised and unrealised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

1.9 Pension

The charitable company makes employer contributions to a defined contribution pension scheme on behalf of its employees. Contributions are included as part of staff costs within support and governance costs and allocated to the funds of the charitable company on the basis outlined in Note 5.

1.10 Fund Accounting

Restricted funds are maintained in accordance with the restrictions placed upon monies received from the donor.

Unrestricted funds are the free funds of the charitable company to use at the discretion of the Trustees in the furtherance of the charitable company's objectives. Unrestricted funds include designated funds where the Trustees, at their discretion, have created a fund for a specific purpose.

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1.11 Tangible Fixed Assets

All fixed assets are initially recorded at cost. Items under £500 in value are not capitalised.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straight line basis over the expected useful economic lives as follows:

Office Equipment - 3 years straight line basis

The carrying values of tangible fixed assets are reviewed for impairment periodically if events or changes in circumstances indicate the carrying value may not be recoverable.

1.12 Investments

Investments are initially recognised at their transaction value and subsequently measured at their market value as at the balance sheet date using closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year. Investments are split between fixed and current assets on the basis of a review by the Trustees of cash requirements over the coming year.

The charitable company does not acquire or use put options, derivatives or other complex financial instruments.

1.13 Debtors

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

1.14 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 three months or less from the date of acquisition or opening of the deposit or similar account.

1.15 Creditors and provisions

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

1.16 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

1.17 Operating Leases

Rentals payable under operating leases are charged in the income and expenditure account on a straight line basis over the lease term.

1.18 Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

During the year, no key judgements or estimates have been made within the financial statements.

17

2. DONATIONS AND GRANTS

Education Endowment-H Robins
Garfield Weston
Joicey Trust
Shears Foundation
Awards for All–Veterans Cycle Project
Veterans Foundation
Operation Veteran
Swire Charitable Trust
Sir James Knott Trust
Catherine Cookson Charitable Trust
Gilchrist Educational Trust
Bernicia Community Fund
RW Mann
Barbour Foundation
Rothley Trust
William Leech
Co-op Community Fund
Community Foundation-EDF Comm Fund
YHN Community Fund– Women’s Snug
Hadrian Trust
Access2Advice
Northumberland Community Chest
Great North Run sponsorship
Sundry donations
Other Grants
HMRC Job Retention Scheme Grants
Covid Business Grants
For the year ended 31 March 2020		 Restricted
£
-
10,000
-
-
-
6,560
282
3,400
932
250
932
-
-
-
-
-
-
7,094
2,500
-
-
9,665
-
-
41,615
-
-
41,615
44,949		 Unrestricted
£
20,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
299
20,299
21,727
11.334
53,360
22,233		 Year to
31.03.21
Total
£
20,000
10,000
-
-
-
6,560
282
3,400
932
250
932
-
-
-
-
-
-
7,094
2,500
-
-
9,665
-
299
61,914
21,727
11,334
94,975		 Year to
31.03.20
Total
£
20,000
10,000
3,500
5,000
9,600
6,560
-
3,400
-
-
-
570
270
350
300
500
480
1,419
2,500
500
600
-
1,022
611
67,182
-
-
67,182

18

3. INCOME FROM CHARITABLE ACTIVITIES

Lloyds Bank Foundation
Newcastle City Council
South Tyneside Council
North of Tyne CLLD funded by ESIF
Your Homes Newcastle-Newcastle Learning
Hives™
Bridge Project funded by ESF and National
Lottery Community Fund
Good Things Foundation
Education Development Trust
North of Tyne Working Homes funded by ESF
Bernicia–Northumberland Learning Hives™
Northumberland County Council Housing
Durham County Council L!NKCD
Bernicia–L!NKCD Project
Sodexo - Transforming Rehabilitation
Voices Northumberland
Tyneside Womens Health
For the year ended 31 March 2020		 Restricted
£
32,486
-
-
-
25,000
130,598
-
-
-
53,326
21,329
-
10,377
-
-
-
273,116
217,995		 Unrestricted
£
-
6,383
13,352
31,644
-
-
6,468
3,671
80,025
-
-
16,551
-
35,316
-
1,350
194,760
204,422		 Year to
31.03.21
Total
£
32,486
6,383
13,352
31,644
25,000
130,598
6,468
3,671
80,025
53,326
21,329
16,551
10,377
35,316
-
1,350
467,876		 Year to
31.03.20
Total
£
22,747
10,448
18,867
58,931
24,603
109,928
-
12,590
65,227
44,231
16,486
-
-
35,316
3,043
-
422,417

4. INVESTMENT INCOME

Cash investments held in the UK
Dividends
For the year ended 31 March 2020		 Restricted
£
-
-
-
-		 Unrestricted
£
-
4,746
4,746
4,214		 Year to
31.03.21
Total
£
-
4,746
4,746		 Year to
31.03.20
Total
£
1
4,213
4,214

19

5. CHARITABLE ACTIVITIES

Costs directly allocated to
activities
Staff costs
Supplies/Resources
Recruitment
Travel
Volunteers
Depreciation
Support costs apportioned to
activities
Premises
Staff costs
Resources
Communications
Accountancy and other services
Legal and Professional
For the year ended 31 March 2020		 Restricted
provision
of services
£
231,079
26,872
484
372
90
-
258,897
10,445
12,198
549
4,323
-
-
286,412
236,244		 Unrestricted
provision of
services
£
162,093
3,645
243
167
-
197
166,345
5,165
1,219
5,036
1,975
-
-
179,740
179,816		 Unrestricted
Governance
£
-
-
-
-
-
-
-
441
12,209
157
178
2,830
112
15,927
14,549		 Year to
31.03.21
Total
£
393,172
30,517
727
539
90
197
425,242
16,051
25,626
5,742
6,476
2,830
112
482,079		 Year to
31.03.20
Total
£
324,273
27,403
2,050
4,530
2,433
385
361,074
21,738
31,658
6,629
6,011
2,750
749
430,609

Analysis of Governance & Support Costs

The charitable company allocates costs direct to activities as far as possible, then identifies the remaining costs of its support functions. It then identifies those costs which relate to the governance function. Having identified its governance costs, the remaining support costs together with the governance costs are apportioned between the key charitable activities undertaken in the year. The basis for apportionment and the analysis of support and governance costs is set out as follows:

Other expenses have been apportioned using a 97:3 split, which approximately equates to staff time spent on governance activities.

20

6. NET INCOME/(EXPENDITURE) FOR THE YEAR

This is stated after charging
Depreciation
Accountancy fees		 Year to
31.03.21
Total
£
Year to
31.03.20
Total
£
197
385
2,830
2,750

7. STAFF COSTS AND NUMBERS

Staff costs comprise:
Salaries
Social Security costs
Pension		 Year to
31.03.21
Total
£
380,797
21,218
16,783
418,798		 Year to
31.03.20
Total
£
325,146
17,469
13,316
355,931

The average number of persons (expressed as Full Time Equivalents) employed by the Trust was as follows:

Chief Executive
Charitable activities
Administration and support		 1
12
2
15		 1
10
2
13

Analysis of staff costs, trustee remuneration & expenses, cost of key management personnel and related party transactions

None of the directors/trustees of the charitable company received remuneration or expenses.

The key management personnel of the charitable company, comprise the Trustees, the Chief Executive, Business Manager and an Operations Manager. The total employee benefits of the key management personnel of the charitable company were £89,694 (2020: £88,368).

No Trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity during the period.

None of the employees received benefits exceeding £60,000 in the year (2020: Nil)

21

8. FIXED ASSETS

Cost
At 1 April 2020
Additions in the year
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
Eliminated on disposals
At 31 March 2020
Net Book Value
At 31 March 2021
Net Book Value
At 31 March 2020
9.
INVESTMENTS
Investment in subsidiary
Other investments (at market value)
Cash held for reinvestment
Reconciliation of other investments:
Investment value at 1 April 2020
Additions: Income reinvested
Net profit on revaluation
Investments value at 31 March 2021
All investments shown above are held at market valuation.
Analysis of other investments at market value:
Asset Allocation Funds		 Office
Equipment
£
7,667
-
(708)
6,959
7,158
197
(708)
6,647
312
509
At
31.03.21
Total
£
At
31.03.20
Total
£
1
1
335,241
272,971
111
111
335,353
273,083
272,971
4,746
57,524
335,241
At
31.03.21
Total
£
At
31.03.20
Total
£
335,241
272,971		 Office
Equipment
£
7,667
-
(708)
6,959
7,158
197
(708)
6,647
312
509
At
31.03.21
Total
£
At
31.03.20
Total
£
1
1
335,241
272,971
111
111
335,353
273,083
272,971
4,746
57,524
335,241
At
31.03.21
Total
£
At
31.03.20
Total
£
335,241
272,971
273,083
272,971
4,746
57,524
335,241
At
31.03.20
Total
£
272,971

The historical cost of other investments at 31 March 2021 was £276,862 (£272,116 at 31 March 2020).

22

The investment of £1 represents 100% shareholding in NLT Learning Ltd. The results of this company have not been consolidated into these financial statements due to their immaterial nature.

Profit for the year
Capital and Reserves
10.
DEBTORS
Trade debtors–contract income receivable
Other debtors and prepayments
11.
CREDITORS: amounts falling due within one year
Taxation and social security
Other creditors and accruals
Deferred income
Owed to subsidiary company
Reconciliation of deferred income:
Deferred income at 1 April 2020
Received
Utilised
Deferred income at 31 March 2021		 Year to
31.03.21
Total
£
-		 Year to
31.03.20
Total
£
-
31 31
At
31.03.21
Total
£
111,876
3,422		 At
31.03.20
Total
£
101,523
2,187
115,298 103,710
At
31.03.21
Total
£
6,379
16,505
37,189
31
60,104		 At
31.03.20
Total
£
6,685
17,074
68,322
31
92,112
68,322
55,331
(86,464)
37,189

12. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible fixed assets
Investments
Net Current Assets
Net assets at 31 March 2021		 General
Funds
£
312
255,938
116,176
372,426		 Designated
Funds
£
-
79,415
-
79,415		 Restricted
Funds
£
-
-
57,926
57,926		 Total
Funds
£
312
335,353
174,102
509,767

General Funds includes the Revaluation Fund. The Revaluation Fund represents the uplift in the market value of Fixed Asset Investments over historic cost.

23

13. ANALYSIS OF FUND MOVEMENTS

Restricted Funds:
Garfield Weston
Veterans Cycle Project
Bernicia Community Fund
Learning Hives™ Support Fund
Community Foundation-Windfarms
Tutor Teaching resources fund
YHN Community Fund
Northumberland Community Chest
Newbiggin Town Council
Lloyds Foundation
Newcastle Hives™
Bridge Project
Northumberland Learning Hives™
Durham Learning Hive™
Total Restricted
Total Unrestricted (Note 14)
TOTAL		 At
01.04.20
Incoming
Outgoing
Transfers
& Other
Gains
At
31.03.21
£
£
£
£
£
10,000
10,000
169
-
19,831
6,943
10,242
9,294
7,891
614
-
-
-
614
1,267
-
300
-
967
295
7,094
7,389
-
-
-
2,114
907
1,207
931
2,500
1,387
-
2,044
-
9,665
7,761
-
1,904
240
-
-
240
-
32,486
23,146
-
9,340
-
25,000
25,000
-
-
2,200
130,598
132,399
-
399
7,117
74,655
69,748
-
12,024
-
10,377
8,912
-
1,465
29,607
314,731
286,412
-
57,926
337,118
252,866
195,667
57,524
451,841
366,725
567,597
482,079
57,524
509,767

Garfield Weston contributes to our core support costs and will be fully spent by March 2022. Veterans Cycle Project fund ends in March 2022.

Bernicia Community Fund and Learning Hives ™ Support Fund provided additional resources for our Learning Hives ™ in Northumberland. Expenditure has been delayed due to Covid and are expected to be spent during 2021/22. YHN Community Fun d supports our Women’s Snug Project , currently due to end in December 2021. Northumberland Community Chest has funded an IT equipment loan project and will be fully spent in 2021/22. Lloyds Foundation fund is a mentoring project working with ex-offenders which ends in May 2021.

Newcastle Hives ™ , and Northumberland and Durham Learning Hives ™ provide match funding towards our North of Tyne CLLD project (expected end date Mar 22), North of Tyne Working Homes project (ending Mar 23) and Durham L!NKCD project (ending Mar 23) respectively. The Bridge Project, due to end in December 2022, is an employability project funded by the European Social Fund and the National Lottery Community fund and supports our Berwick Learning Hive and oneto-one Maths and English delivery.

Transfers reflect investment asset revaluation.

24

14. MOVEMENT IN FUNDS

Restricted funds:
Charity activities
Total restricted funds
Unrestricted funds:
Match Fund Reserve
Future Cost Reserve
Revaluation Fund
General funds
Total unrestricted funds
Total Funds		 At
01.04.20
£
29,607
29,607
-
55,219
855
281,044
337,118
366,725		 Incoming
Resources
£
314,731
314,731
20,695
3,501
-
228,670
252,866
567,597		 Outgoing
Resources
£
(286,412)
(286,412)
-
-
-
(195,667)
(195,667)
(482,079)		 Transfers
& Other
Gains/
(Losses)
£
-
-
-
-
57,524
-
57,524
57,524		 At
31.03.21
£
57,926
57,926
20,695
58,720
58,379
314,047
451,841
509,767

Unrestricted funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds, where the trustees, at their discretion, have created a fund for a specific purpose.

The basis for calculating 'free reserves' is after allowing for all designated and restricted funds, fixed assets and other non-current assets and liabilities.

Designated Funds comprise a Future Cost Reserve, a contingent fund to cover the cost of any potential redundancies arising as a result of reducing activities, and a Match Fund Reserve to cover committed contribution towards future projects.

15. PENSION SCHEME

Our stakeholder pension scheme is operated by Scottish Life and all new employees are autoenrolled into the scheme. The Trust’s contributions in 2020/21 were £16,783 (2019/20 £13,316) at an employer’s contribution rate of 5% of pensionable pay. Of this, £1,406 was outstanding at 31 March 2021 (£1,383 at 31 March 2020).

16. OPERATING LEASE COMMITMENTS

The charity has future total commitments under operating leases as follows:

Within 1 year
After more than 1 year		 Property
£
-
-
-		 At
31.03.21
Total
£
-
-
-		 At
31.03.20
Total
£
9,750
-
9,750

25

17. ULTIMATE CONTROLLING PARTY

In the opinion of the Trustees, the charitable company has no ultimate controlling party, other than the board of Trustees themselves.

18. LIMITED BY GUARANTEE

The charitable company is a private limited company limited by guarantee and registered in England and Wales. The charity meets the definition of a public benefit entity under FRS 102. In the event of the charitable company being wound up members are required to contribute an amount of £1.00.

19. RELATED PARTY TRANSACTIONS

The charitable company has had no transactions with any Related Parties.

26