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2022-08-31-accounts

Company registration number: 05817797 Charity registration number: 1120968

North East Equality & Diversity Limited

(A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 August 2022

Wellway Accountants Limited Borough Hall Wellway Morpeth Northumberland NE61 1BN

North East Equality & Diversity Limited

Contents

Reference and Administrative Details 1
Trustees' Report 2 to 7
Independent Examiner's Report 8
Statement of Financial Activities 9
Balance Sheet 10
Statement of Cash Flows 11
Notes to the Financial Statements 12 to 23

North East Equality & Diversity Limited

Reference and Administrative Details Reference and Administrative Details
Trustees R Styring
H Pottle
P Hignett
P Slater (resigned 6 November 2021)
Secretary J Robb
Senior Management / Leadership J Robb
Team
Paul Chipchase (Resigned 12 Feb 2021)
Steve McHenry (Resigned 10 May 2021)
Charlotte Watson (Resigned 16 November 2021)
Stu Newbigin (Resigned 8 July 2022)
Registered Office Old Fire Station
South Road
Alnwick
Northumberland
NE66 2PA
Company Registration Number 05817797
Charity Registration Number 1120968
Solicitors: Ward Hadaway
Sandgate House
102 Quayside
Newcastle upon Tyne
Tyne & Wear
NE1 3DX
Bankers Lloyds TSB
Newcastle
102 Grey Street
Newcastle Upon Tyne
Tyne & Wear
NE1 6AG
Independent Examiner Wellway Accountants Limited
Borough Hall
Wellway
Morpeth
Northumberland
NE61 1BN

Page 1

North East Equality & Diversity Limited

Trustees' Report

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 August 2022.

Objectives and activities

Objects and aims

The object of the charitable company is:

The promotion of equality and diversity for the public benefit in the North East of England and the Borders Region by;

a) advancing education and raising awareness in equality and diversity

b) promoting activities to foster understanding between people from diverse backgrounds

c) providing comprehensive advice and support through giving advice, representation and advocacy

Fundraising disclosures

The charity does not use a professional fundraiser or commercial participator to raise funds. Any monies raised from the public follows all guidance set out by the Charities Commission and UK law in every respect. We respect the privacy and contact preferences of all public donors.

Page 2

North East Equality & Diversity Limited

Trustees' Report

Public benefit

NEED Ltd provides a community transport service to the inhabitants of the United Kingdom who are in need of these services because of age, sickness or disability (mental and physical), or poverty, or because of a lack of availability of adequate and safe passenger public services. It is recognised for providing excellent services to our users. This is undoubtedly due to the dedication of our Board of Directors (Trustees) and staff.

This year has been another very testing time for NEED Ltd. This has been a continuation from the previous year and is entirely due to the government restrictions introduced both nationally and locally to control the pandemic caused by Covid 19. We have worked closely with Northumberland County Council (NCC) to maintain essential transport services to schools and with those disadvantaged and vulnerable people living in isolated communities throughout Northumberland and Tyneside. We have complied with the various government health risk control measures to provide essential transport services. We have also worked closely with the North East Ambulance Service (NEAS) to provide transport services to both Covid and non-Covid patients to and from hospital. This has been a difficult time for our staff, not only in the transportation of our passengers but also in carrying out the very strict clean down routines of their vehicles on a regular basis. It is to their credit that they have accepted the challenge with dedicated professionalism. Needless to say, these measures have added a significant financial burden to the organisation.

As last year, a significant part of our business, that of carrying passengers from care homes and other locations for day trips and ad hoc arrangements, had to remain suspended until near the end of the organisation’s financial year end. This, once again has had a major impact on NEED’s financial wellbeing, necessitating the submission of a number of applications for support from government sources including the bounce back loan facility.

Our Private Vehicle Operator Licences have given us the ability to provide transport in remote rural areas where roads are too narrow for larger minibuses, and in particular access to rural farmsteads.

We have continued to work closely with GP Practices and Dental Clinics to provide services enabling those most rurally isolated or who are unable to afford private or public transport the means to attend vital health appointments.

The Old Fire Station in Alnwick that we rent from Northumberland County Council (NCC), has been the subject of much discussion. The charity still has an aspiration to purchase the property when the financial climate is more favourable. NEED Ltd is once again indebted to NCC for its patience and tolerance in taking into account our plight throughout the period. The intention, when the purchase is complete, is still to renovate and refurbish the property to provide affordable office space and facilities for use by voluntary sector community organisations and social enterprises.

In normal times NEED Ltd is 100% fully sustainable and self-sufficient organisation. Even in these difficult trading times, we are looking forward to the new challenges ahead over the next 12 months. I would like to formally thank all NEED Ltd staff, drivers, passenger assistants, and board members for their continued commitment to the organisation.

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Use of volunteers

NEED Ltd is fortunate to have a number of volunteers willing to give their time freely to provide governance for the Organisation. This contribution is greatly valued by staff, service users and myself as Chairman of NEED Ltd. I would therefore like to take this opportunity to record my appreciation to those dedicated people.

Page 3

North East Equality & Diversity Limited

Trustees' Report

Going concern

The preparation of the 1st September 2021 to 31st August 2022 and submission of the Annual Accounts has been a difficult task. The restrictions due to the continuing coronavirus pandemic across United Kingdom has greatly affected the financial performance and future planning of the charitable organisation. In particular the total lockdown of care homes and community groups has had a further adverse effect on our income during the financial year. There has been a noticeable lift in financial performance since the restrictions were eased in the early part of 2022 but regular outings for our historic groups have been slow in recovering. NEED Ltd introduced emergency measures to reduce expenditure to cover the shortfall in income by reducing costs, particularly staff costs but also by covering some of our maintenance activity in house. Thankfully, the organisation remained resilient due to the continuing NCC contracts requiring the organisation to provide transport for children to attend school. This has resulted in a degree of stability of the financial position of the organisation, albeit still at a reduced income level for the time being.

The added burden of rising fuel prices and volatile national and international economies has led to much financial disruption but the organisation has successfully steered its way to a healthier position than a year ago.

NEED has successfully maintained its ISO 9001 certification, a requirement of NCC contracts. We were recently awarded a preferred contractor status with NCC following a 98% achievement in their compliance audit. This stands us in good stead for future contracts.

Our contract with North East Ambulance Service (NEAS) to provide patient transport to hospitals has continued throughout the period. There have been unforeseen minor interruptions but we have continued to provide a regular service and in fact have increased our activities, this has been particularly beneficial to those patients on dialysis.

We have witnessed an increasing level of travel for a number of groups that will continue to increase in the next few weeks and months as confidence returns. We are witnessing an increasing number of enquiries from the community sector in particular. This will increase the income of the organisation and provide a growth. The uncertainty around this remains a concern, therefore we have adopted a slightly pessimistic approach in financial terms to this part of our operation.

NEED Ltd has taken advantage of the Government backed ‘Bounce Back’ loan scheme and has borrowed £50,000. We have started our regular repayments and reduced the level of debt to our bank significantly.

We have made certain assumptions to enable NEED Ltd to make a prudent financial forecast for the next twelve months. Two scenarios have been considered;-

  1. We expect that NCC school transport arrangements will be maintained at our current level of 14 NCC contracts and that the present 3 SEN contracts will continue for the forecast period. Care home and community transport will continue at a low level. NEAS contract work will continue at its present level. This represents a worst case scenario.

  2. A slightly less cautious approach in that NCC School transport arrangements will increase due to new contract work being awarded. Care home and community work will recover to near previous historic levels.

We have adopted measures that will cope with either of these scenarios.

Page 4

North East Equality & Diversity Limited

Trustees' Report

In order to sustain the financial viability of the organisation during the current and subsequent years the following measures have already been taken:-

• We have entered into an arrangement with an external organisation to provide further training that cannot presently be delivered by our own staff.

• We’ve implemented a very much slimmer staffing structure. The present office staff structure of 3 posts operates on a collaborative basis with additional support when required to provide built-in resilience. The Board of Trustees provides a strategic overview and also shares in the day to day decision making where necessary. This optimisation of our management structure has significantly reduced our staffing costs.

• Office staff have a wide range of skills that allows them to take on any of the current posts, giving significant flexibility.

• A review of all staff training has been conducted to ensure that all personnel meet the requirements of their posts and continue to develop and extend their skills.

• We’ve conducted a thorough review of all of our contracts to ensure we fully cover costs and optimise income. • We've rationalised the types of vehicles within our fleet to be more ‘fit for purpose’. After a number of years of service using standard minibuses

• NEAS have required us to operate using ‘Ambulance’ standard buses that are easier to clean down.

• We have made savings by investing in garage equipment which enables us to carry out some expensive routine servicing and testing in house.

• We're systematically engaged in marketing and networking to attract new business.

• We're actively seeking further grant funding to help support the charity through these continuing difficult and uncertain times.

I believe that these measures will create a sustainable and resilient organisation capable of rising to the challenge of this most difficult period, and maintaining its viability even in the worst-case scenario.

Structure, governance and management

Nature of governing document

North East Equality and Diversity Limited is constituted as a registered charity and a company under guarantee in accordance with its Memorandum and Articles of Association dated 16 May 2006 and last amended 25 March 2010.

Induction and training of trustees

New trustees, undergo an induction process to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision making processes, the business plan and recent financial performance of the charity. Trustees are encouraged to attend appropriate external training events.

Organisational structure

Day to day management is vested in a professional team led by the Transport Manager of the charity, who meets with the Board of Trustees on the fourth Thursday of every month. The Transport Manager meets regularly with the Chair (in addition to the formal meetings) and appraises him of any significant issues that arise between meetings.

Page 5

North East Equality & Diversity Limited

Trustees' Report

Major risks and management of those risks

Risk Policy

The trustees are responsible for assessing the major risks to which the charitable company is exposed, and for establishing systems to mitigate those risks, they have considered risks which could have a negative effect on the charitable company’s ability to pursue its aims, both in terms of the likelihood of these occurring and probable impact of such events.

The trustees continue to review and monitor these risks, and the adequacy of the systems in place to reduce them.

Financial instruments

Objectives and policies

The charity's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the charity’s policies approved by the board of trustees, which provide written principles on the use of financial derivatives to manage these risks. The charity does not use derivative financial instruments for speculative purposes.

Cash flow risk

The charity’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The charity uses foreign exchange forward contracts and interest rate swap contracts to hedge these exposures.

Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.

Credit risk

The charity’s principal financial assets are bank balances and cash, trade and other receivables, and investments. The charity’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.

The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

The charity has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the charity uses a mixture of long-term and short-term debt finance.

Further details regarding liquidity risk can be found in the Statement of accounting policies in the financial statements.

Statement of trustees' responsibilities

The trustees (who are also the directors of North East Equality & Diversity Limited for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 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. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including its income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

Page 6

North East Equality & Diversity Limited

Trustees' Report

The trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The annual report was approved by the trustees of the charity on 28 June 2023 and signed on its behalf by:

......................................... R Styring Trustee

Page 7

North East Equality & Diversity Limited

Independent Examiner's Report to the trustees of North East Equality & Diversity Limited ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2022.

Responsibilities and basis of report

As the charity’s trustees of the 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 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 charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner’s statement

Since the 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 am a member of 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 North East Equality & Diversity Limited 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.

...................................... R Thompson ICAEW FCA BA(Hons) AIFP Borough Hall Wellway Morpeth Northumberland NE61 1BN

28 June 2023

Page 8

North East Equality & Diversity Limited

Statement of Financial Activities for the Year Ended 31 August 2022 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
4
Other income
5
Total income
Expenditure on:
Charitable activities
6
Total expenditure
Net income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
20
Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
4
Other income
5
Total income
Expenditure on:
Charitable activities
6
Total expenditure
Net expenditure
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
20		 Unrestricted
funds
£
25,276
650,599
420
676,295
(662,357)
(662,357)
13,938
13,938
(138,315)
(124,377)
Unrestricted
funds
£
60,757
553,117
1,770
615,644
(709,446)
(709,446)
(93,802)
(93,802)
(44,513)
(138,315)		 Total
2022
£
25,276
650,599
420
676,295
(662,357)
(662,357)
13,938
13,938
(138,315)
(124,377)
Total
2021
£
60,757
553,117
1,770
615,644
(709,446)
(709,446)
(93,802)
(93,802)
(44,513)
(138,315)

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 20.

The notes on pages 12 to 23 form an integral part of these financial statements. Page 9

North East Equality & Diversity Limited

(Registration number: 05817797) Balance Sheet as at 31 August 2022

Note
Fixed assets
Tangible assets
13
Current assets
Debtors
14
Cash at bank and in hand
15
Creditors: Amounts falling due within one year
16
Net current liabilities
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
17
Net liabilities
Funds of the charity:
Unrestricted income funds
Unrestricted funds
Total funds
20		 2022
£
121,975
53,427
25,416
78,843
(255,273)
(176,430)
(54,455)
(69,922)
(124,377)
(124,377)
(124,377)		 2021
£
163,743
19,309
2,673
21,982
(206,567)
(184,585)
(20,842)
(117,473)
(138,315)
(138,315)
(138,315)

For the financial year ending 31 August 2022 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The financial statements on pages 9 to 23 were approved by the trustees, and authorised for issue on 28 June 2023 and signed on their behalf by:

......................................... R Styring Trustee

The notes on pages 12 to 23 form an integral part of these financial statements. Page 10

North East Equality & Diversity Limited

Statement of Cash Flows for the Year Ended 31 August 2022

Note
Cash flows from operating activities
Net cash income/(expenditure)
Adjustments to cash flows from non-cash items
Depreciation
Profit on disposal of tangible fixed assets
Working capital adjustments
Increase in debtors
14
Increase in creditors
16
Net cash flows from operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
13
Sale of tangible fixed assets
Net cash flows from investing activities
Cash flows from financing activities
Repayment of loans and borrowings
16
Repayment of capital element of finance leases and HP contracts
18
Net cash flows from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 1 September
Cash and cash equivalents at 31 August		 2022
£
13,938
41,767
(916)
54,789
(34,118)
46,368
67,039
-
917
917
(1,594)
(43,619)
(45,213)
22,743
2,673
25,416		 2021
£
(93,802)
50,852
(14,128)
(57,078)
(5,562)
9,183
(53,457)
(37,551)
14,128
(23,423)
68,226
(46,037)
22,189
(54,691)
57,364
2,673

All of the cash flows are derived from continuing operations during the above two periods.

The notes on pages 12 to 23 form an integral part of these financial statements. Page 11

North East Equality & Diversity Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

1 Charity status

The charity is limited by guarantee, incorporated in , and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

The address of its registered office is: Old Fire Station South Road Alnwick Northumberland NE66 2PA

These financial statements were authorised for issue by the trustees on 28 June 2023.

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

North East Equality & Diversity Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

The financial statements have been prepared on a going concern basis.

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.

Income and endowments

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.

Page 12

North East Equality & Diversity Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

Donations and legacies

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity 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 charity and it is probable that these conditions will be fulfilled in the reporting period.

Grants receivable

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Gift aid

Incoming resources from tax reclaims are included in the Statement of Financial Activites at the same time as the gift to which they relate.

Charitable activities

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

Other income

Vehicles donated in kind are recognised as voluntary income when there is evidence of entitlement to the gift, receipt is probable and the amount can be measured reliably. The vehicle is capitalised as a tangible fixed asset using the cost value (which is equivalent to the income recognised). Where there is a restriction of purpose or use ongoing, then the income and the asset are recognised within restricted funds.

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

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Page 13

North East Equality & Diversity Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £250.00 or more are initially recorded at cost.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate Motor vehicles Over 7 years straight line Plant and machinery Over 5 years straight line Office equipment Over 5 years straight line

Impairment of fixed assets

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

Page 14

North East Equality & Diversity Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.

Pensions and other post retirement obligations

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Page 15

North East Equality & Diversity Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

3 Income from donations and legacies

Donations and legacies;
Donations from individuals
Grants, including capital grants;
Government grants
Grants from other charities
Regular giving and capital donations		 Unrestricted
funds
General
£
-
-
-
25,276
25,276		 Total
2022
£
-
-
-
25,276
25,276		 Total
2021
£
(39,667)
68,969
6,000
25,455
60,757

4 Income from charitable activities

5
Other income
Other trading income
6
Expenditure on charitable activities
Note
Community transport services
Staff costs
Allocated support costs
7
Governance costs
7		 Unrestricted
funds
General
£
650,599
Unrestricted
funds
General
£
420
Unrestricted
General
£
287,256
339,009
24,632
11,460
662,357		 Total
2022
£
650,599
Total
2022
£
420
Total
2022
£
287,256
339,009
24,632
11,460
662,357		 Total
2021
£
553,117
Total
2021
£
1,770
Total
2021
£
238,600
417,737
28,829
24,280
709,446

Page 16

North East Equality & Diversity Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

Total expenditure £

In addition to the expenditure analysed above, there are also governance costs of £11,460 (2021 - £24,280) which relate directly to charitable activities. See note 7 for further details.

7 Analysis of governance and support costs

Governance costs

Staff costs
Wages and salaries
Independent examiner fees
Examination of the financial statements
Other fees paid to examiners
Legal fees
Depreciation, amortisation and other similar costs
Other governance costs
8
Net incoming/outgoing resources
Net (incoming)/outgoing esources for the year include:
Operating leases - plant and machinery
Operating leases - other assets
Profit on disposal of tangible fixed assets
Depreciation of fixed assets		 Unrestricted
funds
General
£
3,894
1,065
1,450
4,767
1
283
11,460		 Total
2022
£
3,894
1,065
1,450
4,767
1
283
11,460
2022
£
41,262
5,319
(916)
41,767		 Total
2021
£
16,616
2,500
1,667
2,380
13
1,104
24,280
2021
£
40,415
5,400
(14,128)
50,932

9 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

10 Staff costs

The aggregate payroll costs were as follows:

Page 17

North East Equality & Diversity Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs		 2022
£
332,075
7,671
3,157
342,903		 2021
£
419,806
11,832
2,715
434,353

The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:

Staff employed
No employee received emoluments of more than £60,000 during the year.
11 Independent examiner's remuneration
Examination of the financial statements
Other fees to examiners
All other services		 2022
No
38
2022
£
1,065
1,450		 2021
No
44
2021
£
2,500
1,667

Page 18

North East Equality & Diversity Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

12 Taxation

The charity is a registered charity and is therefore exempt from taxation.

13 Tangible fixed assets

Cost
At 1 September 2021
Disposals
At 31 August 2022
Depreciation
At 1 September 2021
Charge for the year
Eliminated on disposals
At 31 August 2022
Net book value
At 31 August 2022
At 31 August 2021		 Furniture and
equipment
£
7,886
-
7,886
2,434
1,272
-
3,706
4,180
5,452		 Motor vehicles
£
434,542
(17,828)
416,714
276,251
40,495
(17,827)
298,919
117,795
158,291		 Total
£
442,428
(17,828)
424,600
278,685
41,767
(17,827)
302,625
121,975
163,743

Page 19

North East Equality & Diversity Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

Motor vehicles
14 Debtors
Trade debtors
Prepayments
15 Cash and cash equivalents
Cash on hand
Cash at bank		 2022
£
88,270
2022
£
38,292
15,135
53,427
2022
£
50
25,366
25,416		 2021
£
118,391
2021
£
12,536
6,773
19,309
2021
£
50
2,623
2,673

16 Creditors: amounts falling due within one year

Bank loans
Trade creditors
Other loans
Hire purchase and finance leases
Other taxation and social security
VAT repayable
Other creditors
Accruals		 2022
£
5,882
25,912
95,171
36,286
97,678
(9,893)
1,722
2,515
255,273		 2021
£
4,774
8,787
86,608
43,619
75,199
(17,537)
1,142
3,975
206,567

Bank borrowings

Bounce back loan is denominated in with a nominal interest rate of 2.5% (2021 - £3), and the final instalment is due on 30 June 2030. The carrying amount at year end is £46,079 (2021 - £50,000).

Other borrowings

North Star loan with a carrying amount of £16,315 (2021 - £22,187) is denominated in with a nominal interest rate of 6% (2021 - 6%). The final instalment is due on 28 February 2025.

Page 20

North East Equality & Diversity Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

17 Creditors: amounts falling due after one year

Bank loans
Other loans
Hire purchase and finance leases		 2022
£
40,196
10,080
19,646
69,922		 2021
£
45,226
16,315
55,932
117,473

Included in the creditors are the following amounts due after more than five years:

After more than five years by instalments 2022
£
(16,667)		 2021
£
(16,662)

Bank loans and overdrafts after five years

Amounts due in more than five years relate to bank loans, which are due to be repaid by December 2028. The rate of interest on this bank loan is 2.5%.

18 Obligations under leases and hire purchase contracts

The total value of future minimum lease payments was as follows:

Within one year
In two to five years		 2022
£
(15,244)
(11,685)
(26,929)		 2021
£
(43,276)
(15,580)
(58,856)

19 Commitments

Capital commitments

The company has non-cancellable operating leases.

The total amount contracted for but not provided in the financial statements was £11,349 (2021 - £38,102).

20 Funds

Unrestricted funds
General		 Balance at 1
September
2021
£
(138,315)		 Incoming
resources
£
676,295		 Resources
expended
£
(662,357)		 Balance at 31
August 2022
£
(124,377)

Page 21

North East Equality & Diversity Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

Unrestricted funds
General		 Balance at 1
September
2020
£
(44,513)		 Incoming
resources
£
615,644		 Resources
expended
£
(709,446)		 Balance at 31
August 2021
£
(138,315)

21 Analysis of net assets between funds

Tangible fixed assets
Current assets
Current liabilities
Creditors over 1 year
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Creditors over 1 year
Total net assets		 Unrestricted
funds
General
£
121,975
78,843
(255,273)
(69,922)
(124,377)
Unrestricted
funds
General
£
163,743
21,982
(206,567)
(117,473)
(138,315)		 Total funds at
31 August
2022
£
121,975
78,843
(255,273)
(69,922)
(124,377)
Total funds at
31 August
2021
£
163,743
21,982
(206,567)
(117,473)
(138,315)

22 Analysis of net funds

Cash at bank and in hand
Debt due within one year
Debt due after more than one year
Finance leases and hire purchase contracts
Net debt		 At 1
September
2021
£
2,673
(91,382)
(61,541)
(99,551)
(249,801)		 Financing cash
flows
£
22,742
(9,672)
11,265
43,619
67,954		 At 31 August
2022
£
25,415
(101,054)
(50,276)
(55,932)
(181,847)

Page 22

North East Equality & Diversity Limited

Notes to the Financial Statements for the Year Ended 31 August 2022

Cash at bank and in hand
Bank overdraft
Debt due within one year
Debt due after more than one year
Finance leases and hire purchase contracts
Net debt		 At 1
September
2020
£
76,587
(19,223)
57,364
(14,177)
(70,520)
(145,588)
(172,921)		 Financing cash
flows
£
(73,914)
19,223
(54,691)
(77,205)
8,979
46,037
(76,880)		 At 31 August
2021
£
2,673
-
2,673
(91,382)
(61,541)
(99,551)
(249,801)

23 Related party transactions

During the year the charity made the following related party transactions:

VETRA Limited

The charitable company is the only member of VETRA Limited, a company limited by guarantee. VETRA Limited remained dormant throughot the financial period and there have been no transactions with the charitable company (2021 - £nil).

At the balance sheet date the amount due to/from VETRA Limited was £Nil (2021 - £Nil).

C Watson

During the financial period, the former Finance Officer has given the charitable company interest free loans of £nil (2021 - £7,559) and been repaid loans of £800 (2021 - £1,500).

The loans are interest free and repayable on demand.

At the balance sheet date the amount due to C Watson was £9,091 (2021 - £9,891).

R Styring

During the financial period, the Chairman has given the charitable company interest free loans of £9,000 (2021 - £30,846) and been repaid loans of £nil (2021 - £nil).

The loans are interest free and repayable on demand.

At the balance sheet date the amount due to R Styring was £79,846 (2021 - £70,846).

Page 23

North East Equality & Diversity Limited

Detailed Statement of Financial Activities for the Year Ended 31 August 2022

Income and Endowments from:
Donations and legacies (analysed below)
Charitable activities (analysed below)
Other income (analysed below)
Total income
Expenditure on:
Charitable activities (analysed below)
Total expenditure
Net income/(expenditure)
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Total
2022
£
25,276
650,599
420
676,295
(662,357)
(662,357)
13,938
13,938
(138,315)
(124,377)		 Total
2021
£
60,757
553,117
1,770
615,644
(709,446)
(709,446)
(93,802)
(93,802)
(44,513)
(138,315)

This page does not form part of the statutory financial statements. Page 24

North East Equality & Diversity Limited

Detailed Statement of Financial Activities for the Year Ended 31 August 2022

Donations and legacies
Appeals and donations
UK Government grants
Grants - other agencies
Subscriptions
Sponsorship
Charitable activities
NCC school contract
Brokerage income
NEAS contract
Dial a Ride
Need a Car
Other income
Other income
Charitable activities
Purchases
Depreciation of motor vehicles
Profit/(loss) on disposal of tangible fixed assets
Wages and salaries
Staff NIC (Employers)
Staff pensions (Defined contribution) - pension scheme 1
Staff training
Volunteer expenses
Rent and rates
Insurance
Repairs and maintenance
Repairs and renewals
Telephone and computer costs
Office expenses
Trade subscriptions
Hire of other assets (Operating leases)
Motor expenses
Petrol or diesel
Motor insurance		 Total
2022
£
-
-
-
1,008
24,268
25,276
524,734
14,796
101,819
9,250
-
650,599
420
420
-
(40,495)
916
(328,181)
(7,671)
(3,157)
(1,860)
(196)
(4,250)
(718)
(2,006)
(163)
(8,761)
(1,911)
(1,018)
(5,308)
(7,893)
(81,890)
(39,140)		 Total
2021
£
(39,667)
68,969
6,000
1,187
24,268
60,757
473,858
4,091
55,559
19,058
551
553,117
1,770
1,770
(2,479)
(49,920)
14,085
(403,190)
(11,832)
(2,715)
(4,148)
(1,020)
(3,442)
(1,654)
(2,433)
(809)
(11,440)
(1,846)
(1,332)
(5,198)
(9,082)
(52,558)
(36,236)

This page does not form part of the statutory financial statements. Page 25

North East Equality & Diversity Limited

Detailed Statement of Financial Activities for the Year Ended 31 August 2022

Motor repairs and renewals
Car hire and leasing expenses (Spot hire)
Travel and subsistence
Advertising
Legal and professional fees
Bank interest payable
Other interest payable
Hire purchase interest
Depreciation of plant and machinery
Depreciation of office equipment
Loan interest
Wages and salaries
Rent and rates
Insurance
Repairs and maintenance
Telephone and computer costs
Office expenses
Hire of other assets (Operating leases)
Independent examiner's fee
Bookkeeping and other accounting services
Legal and professional fees
Bank interest payable
Depreciation of office equipment		 Total
2022
£
(51,144)
(37,269)
(3,980)
-
(6,233)
(1,599)
(1,704)
(11,959)
(1,192)
(79)
(2,036)
(3,894)
(49)
(8)
(23)
(101)
(23)
(61)
(1,065)
(1,450)
(4,767)
(18)
(1)
(662,357)		 Total
2021
£
(30,749)
(40,415)
(3,232)
(17)
(5,701)
(2,492)
(3,096)
(9,459)
(597)
(324)
(1,835)
(16,616)
(133)
(64)
(95)
(443)
(71)
(202)
(2,500)
(1,667)
(2,380)
(96)
(13)
(709,446)

This page does not form part of the statutory financial statements. Page 26