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2021-03-31-accounts

Charity Registration No. 1129502

Company Registration No. 04357221 (England and Wales)

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE)

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION

Trustees G R Curry F Laird H Rahman L Douglas J Byrne M Cole Charity number 1129502 Company number 04357221 Registered office The Beacon Westgate Road Newcastle upon Tyne Tyne and Wear NE4 9PQ Auditor RMT Accountants & Business Advisors Ltd Gosforth Park Avenue Newcastle upon Tyne NE12 8EG Bankers The Co-operative Bank P.O Box 101 1 Balloon Street Manchester M60 4EP

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) CONTENTS

Page
Trustee's report 1 - 5
Independent auditor's report 6 - 8
Statement of financial activities 9 - 10
Balance sheet 11
Statement of cash flows 12
Notes to the financial statements 13 - 28

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) TRUSTEE'S REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

The trustees present their annual report and financial statements for the year ended 31 March 2021.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's memorandum and articles of association , the Companies Act 2006 and “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) (effective 1 January 2015)” .

Objectives and activities

The charity's objects is "to directly contribute to the closing of the gaps in quality of life between the people of the West End and the remainder of the City and enhance their life chances".

This is a broad, cross cutting remit. In working towards the social, economic and physical regeneration of the inner west of Newcastle , Centre West currently undertakes a range of activities in keeping with its social enterprise ethos to achieve this including:

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

The challenges facing the communities of the inner west of Newcastle remain significant. This is exacerbated by the current pandemic and economic climate, which is constraining solutions and altering the public sector infrastructure delivering services to the area. Centre West is taking an incremental approach to these challenges, all the while championing the place of communities in those decisions that affect the area and the lives of those living there.

The Board had started the process of planning a new three-year strategy but this was put on hold due to the Covid pandemic. To support ongoing business activity all staff apart from the Caretaker at the Beacon, the Partnership Director part time, and later Hat-Trick and CHEFF staff part time were furloughed. Using the furlough scheme enabled the partnership to continue trading, deliver services and maintain the existing staffing establishment.

During the first lockdown Centre West and the Beacon partnership invested in new IT infrastructure. Working with our IT contractor the old server and obsolete computers were replaced. The cloud-based Microsoft 365 system was adopted, and staff training was provided which enabled both partnerships to operate remotely. This in turn enabled the staff for Hat-Trick and CHEFF to deliver a summer programme to children and families across Newcastle and generate an income. Since the summer both projects continued to deliver a limited programme of activities to the community. Beacon staff were also able to offer services to tenants while complying with Covid restrictions.

In November 2020 Centre West was assessed by Investors in People and retained its IPP status.

Cash reserves were invested with CCLA in December 2020 to generate additional investment income.

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) TRUSTEE'S REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

The Beacon

Occupying the site of the former West Road Fire Station, this £6.6 million development was completed in December 2011 and now provides a multi-use eco-friendly building for supporting and developing community enterprise, businesses, employment, education , training and events, conferences and community functions. Significantly, it is a partnership with the environmental charity, Groundwork South Tyneside and Newcastle.

The Beacon was officially opened by HRH Prince Michael, The Duke of Kent on 4th April 2012 and is making an important contribution to the local economy and business community. Demand for office accommodation and artisans workshops is consistently in excess of 90%. The project after initially requiring significant investment reported a break even position for the 2020-21 financial year.

Governance arrangements for Hat-Trick & CHEFF.

Both Hat-Trick and CHEFF are managed as separate ring-fenced projects. Budgets are approved by the Board and grant income restricted; both also have separate approved business development plans. This provides clarity, regarding, their respective trading accounts and provides protection from community development work commitments. Centre West has reduced central costs and made significant provision to mitigate risk.

Hat-trick

Hat-Trick is a highly regarded community sport coaching and health initiative. It has continued to grow and has continued to increase its surplus during 2020/21. Despite the impact of Covid the project generated income of £155,147 and a surplus after transfers of £16, 420 after project expenditure of £138,16 5 per movement in funds note .

Hat-Trick is planning to take on 3 apprentices in 2021/22 and has established a national reputation for excellence. Both managers are in demand as business consultants for other sports-based community initiatives around the country and this also presents an opportunity for growth. Hat-Trick have strong partnership links nationally, regionally, and locally and this presents opportunities to further develop schemes of work such as family health, community safety, counter extremism, dangers of social media, holiday hunger and steps to employment.

In 2020/21 Hat-Trick’s team of staff and volunteers reached over 2,000 children, young people, and adults, raising aspirations, increasing opportunities and getting people active.

CHEFF

Approved as a pilot project in January 2019 the CHEFF project was due to be evaluated against performance in March 2021 , w ith an option for the Board to extend project for a further 3 years. The objectives agreed for CHEFF include the following:

Encourage families to lead healthier lifestyles.

Target specific groups to reduce social exclusion – older residents.

Reduce inequalities in health.

Provide safe, high quality, minimal cost, inclusive, accessible, activities for all the family.

Work in partnership with the local community and other services

Encourage families to volunteer, gain qualifications, improve their outcomes and become role models to their local community.

Increase the reputation of Centre-West in the local community.

Opportunity for a programme to be developed that could be replicated across new areas.

To 31 March 2021 CHEFF had achieved income of £ 6 , 509 and a deficit of £ 22 , 045 for the 2020/21 financial year which was in line with expectations .

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) TRUSTEE'S REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

Partnerships and community engagement

Centre West maintained effective relationships with Newcastle City Council and other key service providers, navigating the significant policy landscape shifts at both national and local level, restructure and refocusing of priorities. Examples of the value achieved through partnership working is the key role played in the development of business planning for Elswick Pool.

Going forward Centre West needs to adopt a greater promotional strategy which includes regular Facebook posts to promote its activities and those of partner organisations to further charitable objectives in the area.

Financial review

This report relates to the period 20 20 -20 2 1 during which income and expenditure related solely to the charity’s core activities.

The cash reserves of the charity have been largely utilised in funding the operation of The Beacon over the last eight years but have been boosted by the sale of the remaining property portfolio over the past three years.

Reserves policy

In 20 20 -20 21 the Trustees continued to operate a prudent reserves policy to reflect the time of transition for the charity and turbulence in the economy. The trustees have established an unrestricted reserves policy level to allow the Board to take appropriate action to ensure the continuity of its operations for several months should income be interrupted. It also includes unanticipated costs including staff absence.

Risk statement

Centre West maintains a risk register and regularly reviews and evaluates risk and identifies appropriate preventative activities to minimise risk to the organisation. Trustees are confident that risks have been identified and appropriate risk management measures are in place. However risks are kept under continual review and regular risk evaluation exercises are undertaken with trustees.

COVID-19 risk

The ongoing COVID-19 pandemic continues to generate a significant level of uncertainty in the global economy. The management team and Board regularly assess the likely effects on the charity's operations in an attempt to mitigate the risk as far as possible.

Grants and contracts

The Hat-Trick and CHEFF projects, continue to attract funding from a range of funders in the form of grants and contracts.

Plans for the future

During 2021- 2022 Centre West’s strategic aims are:

Generate a surplus from the Beacon operations.

Develop the CHEFF project initiative.

Encourage the continued growth and reach of the Hat-trick project.

Expand the numbers and expertise of the Centre West Board

Continue community development activities, in particular supporting Elswick Pool to ensure its commercial success.

Maintain and update marketing through the website and social media.

We will continue the prudent management of our assets and explore further diversification of income to reduce risk and increase capacity for further community activity.

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) TRUSTEE'S REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

The asset strategy will be kept under review to ensure risk to income is minimised and return on investment and community outcomes maximised.

Hat-trick will undertake a review of its business model to ensure its ongoing sustainability. Indications are that the strong reputation the project has developed with funders, partners and beneficiaries places the project in a strong position to address any challenges it may face.

Structure, governance and management

Centre West (Newcastle) is a charitable company limited by guarantee and was established as a charity in May 2009 to lead the regeneration of the Cruddas Park, Arthur's Hill, Ryehill and Elswick areas of the West End of Newcastle. It is the successor to New Deal for Communities (Newcastle) Limited.

Centre West (Newcastle) is governed by a memorandum and articles of association. The governance is the responsibility of the Board of Trustees, which takes decisions on the strategic leadership of the organisation by democratic majority vote at its general meetings, which take place bi- monthly. The Board comprises appointed trustees , and two elected Ward Members (proposed by Newcastle City Council). A n agreed Role Specification is used to inform the suitability of potential trustees. The elected trustees serve a four-year term with elections taking place every second year for one trustee from each constituency; co-opted trustees are appointed annually.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

G R Curry

F Laird

C Waugh (Resigned 31 December 2020) H Rahman L Douglas J Byrne M Cole

Upon appointment, all trustees are provided with role descriptions, an information pack including the annual report, memorandum and articles of association and Centre West's policy and procedures. Existing trustees and staff participate in the induction. Periodic training is made available to the Board to support trustees in their role.

The Trustees have appointed a small staff team to support them in their work. Responsibilities for the day to day running of the organisation, managing the property portfolio, exploring new enterprise opportunities, community engagement and partnerships development are delegated to the Partnership Director and reported at subsequent board meetings.

Centre West holds a 57.61% share in The Beacon, which is managed by a separate partnership board. The Centre West Board has the right to nominate two trustees to sit on the Beacon partnership board. These trustees are delegated authority to take decisions about the capital build and overarching operation of the Beacon, which are reported to the Centre West Board. Issues that have a direct bearing on the strategic direction of or risk to Centre West are referred to the Centre West Board.

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) TRUSTEE'S REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

Statement of Trustee's responsibilities

The trustees, who are also the directors of Centre West (Newcastle) for the purpose of company law, are responsible for preparing the Trustee's 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

In accordance with the company's articles, a resolution proposing that RMT Accountants & Business Advisors Ltd be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

Small company exemptions

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

The Trustee's r eport was approved by the Board of Trustees.

G R Curry Director Dated: 30 March 2022

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF CENTRE WEST (NEWCASTLE)

Opinion

We have audited the financial statements of Centre West (Newcastle) (the ‘charity’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice) .

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and , except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CENTRE WEST (NEWCASTLE)

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the d irectors ' r eport included within the Trustee's r eport.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the s tatement of Trustee's r esponsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CENTRE WEST (NEWCASTLE)

Capability of the audit in detecting irregularities, including fraud

Based on our understanding of the charitable company and the sector in which it operates, we identified that the following laws and regulations are significant to the entity:

These matters were discussed amongst the engagement team at the planning stage and the team remained alert throughout the audit.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and the Trustees as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence and legal costs incurred; review of Trustee meeting minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Stephen Slater (Senior Statutory Auditor) for and on behalf of RMT Accountants & Business Advisors Ltd Statutory Auditor Gosforth Park Avenue Newcastle upon Tyne NE12 8EG

Date: 30 March 2022

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2021

Current financial year
Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income and endowments from:
Donations and legacies
3
144,944
213,962
Charitable activities
4
-
20,073
Investments
5
15,008
-
Other income
6
-
-
Total income
159,952
234,035
Expenditure on:
Charitable activities
7
166,388
321,178
Net gains/(losses) on investments
12
(22,118)
-
Net outgoing resources before transfers
(28,554)
(87,143)
Gross transfers between funds
(98,934)
98,934
Net movement in funds
(127,488)
11,791
Fund balances at 1 April 2020
1,447,357
369,737
Fund balances at 31 March 2021
1,319,869
381,528		 Total
2021
£
358,906
20,073
15,008
-
393,987
487,566
(22,118)
(115,697)
-
(115,697)
1,817,094
1,701,397		 Total
2020
£
307,515
125,189
-
18,005
450,709
626,269
-
(175,560)
-
(175,560)
1,992,654
1,817,094

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2021

Prior financial year

Unrestricted
Restricted
funds
funds
2020
2020
Notes
£
£
Income and endowments from:
Donations and legacies
3
70,299
237,216
Charitable activities
4
6,287
118,902
Other income
6
18,005
-
Total income
94,591
356,118
Expenditure on:
Charitable activities
7
273,189
353,080
Net gains/(losses) on investments
12
-
-
Net outgoing resources before transfers
(178,598)
3,038
Gross transfers between funds
147,819
(147,819)
Net movement in funds
(30,779)
(144,781)
Fund balances at 1 April 2019
1,478,136
514,518
Fund balances at 31 March 2020
1,447,357
369,737		 Total
2020
£
307,515
125,189
18,005
450,709
626,269
-
(175,560)
-
(175,560)
1,992,654
1,817,094

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET

AS AT 31 MARCH 2021

Notes
Fixed assets
Tangible assets
13
Investments
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within
one year
16
Net current assets
Total assets less current liabilities
Deferred income
17
Net assets
Income funds
Restricted funds
20
Unrestricted funds		 2021
£
£
2,639,918
977,882
3,617,800
331,715
230,935
562,650
(258,794)
303,856
3,921,656
(2,220,259)
1,701,397
381,528
1,319,869
1,701,397		 2020
£
£
2,791,460
-
2,791,460
355,969
1,296,837
1,652,806
(257,083)
1,395,723
4,187,183
(2,370,089)
1,817,094
369,737
1,447,357
1,817,094

The financial statements were approved by the Trustees and authorised for issue on 30 March 2022

G R Curry Trustee

Company Registration No. 04357221

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

2021
Notes
£
£
Cash flows from operating activities
Cash absorbed by operations
25
(75,750)
Investing activities
Purchase of tangible fixed assets
(5,160)
Proceeds on disposal of tangible fixed
assets
-
Purchase of investments
(1,000,000)
Investment income received
15,008
Net cash (used in)/generated from
investing activities
(990,152)
Net cash used in financing activities
-
Net decrease in cash and cash equivalents
(1,065,902)
Cash and cash equivalents at beginning of year
1,296,837
Cash and cash equivalents at end of year
230,935		 2020
£
£
(294,330)
-
270,002
-
-
270,002
-
(24,328)
1,321,165
1,296,837

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Charity information

Centre West (Newcastle) is a private company limited by guarantee incorporated in England and Wales. The registered office is The Beacon, Westgate Road, Newcastle upon Tyne, Tyne and Wear, NE4 9PQ.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's memorandum and articles of association, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.

The accounts have been prepared under the historical cost convention, modified to include the revaluation of freehold properties . The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. This includes taking into account the potential impact of COVID-19 to ensure that cashflow is positively managed and the impact to the charity’s operations are mitigated. The Board has concluded that the going concern assumption is appropriate in preparing these financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

Capital grants and contributions receivable are credited to deferred income and released to the income and expenditure account over the estimated lives of the relevant assets.

Revenue grants and contributions received and receivable in respect of specific project expenditure are credited to deferred income and recognised in the income and expenditure account in the same period as the related expenditure.

The funding is received in accordance with the provisions and conditions as specified in the offer letters which regulate the way in which such funds may be spent.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.5 Expenditure

This relates to the costs of carrying out the activities of the charity. Where there are costs common to both direct charitable and management expenditure judgement is applied on a time allocation basis.

Charitable activities include expenditure associated with the provision of projects undertaken to benefit the area and property activities for the regeneration of the local area, including both direct cost and support costs relating to these activities.

Governance costs include those costs incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold property 25 years straight line Fixtures and fittings 33 1/3% straight line Computers 33 1/3% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13 Legal status of the charity

The company is limited by guarantee and has no share capital. In the event of a winding up, every member undertakes to contribute to the payment of liabilities such amount as may be required not exceeding the total of £1.

1.14 Joint arrangement

Joint arrangements are accounted for in accordance with Financial Reporting Statement 9 - Accounting for associates, joint ventures and joint arrangements. These financial statements recognise only Centre West (Newcastle)'s share of the income, expenditure, assets and liabilities of joint arrangement projects.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Assessing indicators of impairment

In assessing whether there have been any indicators of impairment of assets, the trustees have considered both external and internal sources of information such as market conditions and experience of recoverability. The properties are periodically valued by Chartered Surveyors to ensure freehold properties are accurately disclosed in the financial statements.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Determining residual values and useful economic lives of tangible fixed assets

The company depreciates tangible fixed assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.

Judgement is applied by trustees when determining the residual values for tangible fixed assets. When determining the residual value trustees aim to assess the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices. The carrying amount of tangible fixed assets at the reporting end date was £2,639,918 (2020 - £2,791,460).

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

3 Donations and legacies

Current financial year

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Grants receivable
144,944
213,962
Grants receivable for core activities
Newcastle CC revenue grant
-
25,295
Release of deferred capital grants
-
149,830
Coronavirus Job Retention Scheme
144,944
-
Other grants
-
38,837
144,944
213,962
Prior financial year
Unrestricted
Restricted
funds
funds
2020
2020
£
£
Grants receivable
70,299
237,216
Grants receivable for core activities
Newcastle CC revenue grant
-
24,553
Release of deferred capital grants
70,299
149,830
Other grants
-
62,833
70,299
237,216		 Total
2021
£
358,906
25,295
149,830
144,944
38,837
358,906
Total
2020
£
307,515
24,553
220,129
62,833
307,515

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

4 Charitable activities

Education
Education
projects
projects
2021
2020
£
£
Services from charitable activities 20,073
125,187
Other income -
2
20,073
125,189
Analysis by fund
Unrestricted funds -
6,287
Restricted funds 20,073
118,902
5 Investments
Unrestricted Unrestricted
funds
funds
2021
2020
£
£
Income from listed investments 15,008
-
6 Other income
2021 2020
£ £
Net gain on disposal of tangible fixed assets - 18,005

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

7 Charitable activities

Project
undertaken
to benefit
area
Property
activities for
regeneration of
area
2021
2021
£
£
Staff costs
158,117
-
Depreciation and
impairment
154,459
-
Advertising and
communication
146
-
Equipment
5,924
-
Trustee and staff
expenses
1,407
-
Property costs
2,109
(636)
Legal and
professional fees
10
-
Cleaning
-
578
Sundry expenses
231
(1,224)
Share of The
Beacon Partnership
loss
560
-
322,963
(1,282)
Grant funding of
activities (see note
8)
-
-
Share of support
costs (see note 9)
148,557
-
Share of
governance costs
(see note 9)
17,328
-
488,848
(1,282)
Analysis by fund
Unrestricted funds
166,446
(58)
Restricted funds
322,402
(1,224)
488,848
(1,282)		 Total
2021
Project
undertaken
to benefit
area
Property
activities for
regeneration of
area
2020
2020
£
£
£
158,117
179,997
-
154,459
154,459
-
146
400
3,355
5,924
12,579
-
1,407
5,453
-
1,473
2,120
15,399
10
21
9,050
578
-
2,492
(993)
166
(2,115)
560
15,114
-
321,681
370,309
28,181
-
66,878
-
148,557
143,573
-
17,328
17,328
-
487,566
598,088
28,181
166,388
242,893
30,296
321,178
355,195
(2,115)
487,566
598,088
28,181		 Total
2020
£
179,997
154,459
3,755
12,579
5,453
17,519
9,071
2,492
(1,949)
15,114
398,490
66,878
143,573
17,328
626,269
273,189
353,080
626,269

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

8 Grants payable

Grants to institutions:
Other
9
Support and governance costs
Support
costs
Governance
costs
£
£
Staff costs
103,446
-
Depreciation
2,243
-
Trustee and staff
expenses
103
-
Advertising and
communication
78
-
Equipment
52
-
Property costs
5,593
-
Office supplies
7,930
-
Rent
25,532
-
Legal and professional
fees
2,340
-
Bank charges and
interest
174
-
Sundry expenses
1,066
-
Audit fees
-
3,000
Accountancy
-
14,328
148,557
17,328
Analysed between
Charitable activities
148,557
17,328		 2021
£
-
2021
Support
costs
Governance
costs
£
£
£
103,446
83,927
-
2,243
657
-
103
655
-
78
304
-
52
916
-
5,593
10,225
-
7,930
12,330
-
25,532
19,216
-
2,340
14,216
-
174
160
-
1,066
967
-
3,000
-
3,000
14,328
-
14,328
165,885
143,573
17,328
165,885
143,573
17,328		 2020
£
66,878
2020
£
83,927
657
655
304
916
10,225
12,330
19,216
14,216
160
967
3,000
14,328
160,901
160,901

10 Trustees

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

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

11 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
14
2021
£
237,082
13,898
10,583
261,563		 2020
Number
19
2020
£
238,279
17,159
8,486
263,924

There were no employees whose annual remuneration was £60,000 or more.

12 Net gains/(losses) on investments

Unrestricted Unrestricted Unrestricted Unrestricted
funds funds
2021 2020
£ £
Revaluation of investments (22,118) -

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

13 Tangible fixed assets

Cost
At 1 April 2020
Additions
At 31 March 2021
Depreciation and impairment
At 1 April 2020
Depreciation charged in the year
At 31 March 2021
Carrying amount
At 31 March 2021
At 31 March 2020		 Freehold
property
Fixtures
and fittings
Computers
£
£
£
3,861,479
29,507
77,271
-
-
5,160
3,861,479
29,507
82,431
1,071,356
29,507
75,934
154,459
-
2,243
1,225,815
29,507
78,177
2,635,664
-
4,254
2,790,123
-
1,337		 Total
£
3,968,257
5,160
3,973,417
1,176,797
156,702
1,333,499
2,639,918
2,791,460

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

14 Fixed asset investments

Cost or valuation
At 1 April 2020
Additions
Valuation changes
At 31 March 2021
Carrying amount
At 31 March 2021
At 31 March 2020
Debtors
Amounts falling due within one year:
Trade debtors
Amounts owed by joint ventures
Other debtors
Prepayments and accrued income
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Amounts owed to joint ventures
Other creditors
Accruals and deferred income		 Listed
I nvestments
£
-
1,000,000
(22,118)
977,882
977,882
-
2021
2020
£
£
6,971
20,517
303,378
332,132
-
1,192
21,366
2,128
331,715
355,969
2021
2020
£
£
6,089
5,141
2,910
4,695
242,918
242,358
1,714
1,854
5,163
3,035
258,794
257,083

15 Debtors

16 Creditors: amounts falling due within one year

17 Government grants

Included in deferred government grants is £2,220,259 (2020 - £2,370,089) in relation to The Beacon development.

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

18 Collaboration

On 28 February 2011 the charity entered into a collaboration agreement with the environmental charity Groundwork South Tyneside and Newcastle. The purpose of the arrangement has been to fund and supervise the construction of The Beacon Building as described in the trustees report. The two parties agreed the way in which the project was to be financed and these financial statements recognise Centre West (Newcastle)’s share of the relevant assets and liabilities. The capital contribution from Groundwork South Tyneside and Newcastle was £1,575,000.

19 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to the statement of financial activities in respect of defined contribution schemes was £10,583 (2020 - £8,486). At the balance sheet date a pension liability of £1,714 (2020 - £1,854) was outstanding.

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

20 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Current financial year

Current financial year
Movement in funds
Balance at Incoming Resources Transfers Balance at
1 April 2020 resources expended 31 March
2021
£ £ £ £ £
Beacon Building 299,298 149,830 (154,459) - 294,669
Hat-Trick Project 52,087 77,696 (138,165) 76,889 68,507
Science City 18,352 - - - 18,352
CHEFF Project - 6,509 (28,554) 22,045 -
369,737 234,035 (321,178) 98,934 381,528

Prior financial year

Prior financial year
Movement in funds
Balance at Incoming Resources Transfers Balance at
1 April 2019 resources expended 1 April 2020
£ £ £ £ £
Beacon Building 458,387 149,830 154,459 (154,460) 299,298
Hat-Trick Project 37,779 206,288 198,621 6,641 52,087
Science City 18,352 - - - 18,352
514,518 (356,118)
(353,080)		 147,819 369,737

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

20 Restricted funds

(Continued)

Beacon Building

Grant funding was received for the construction of a new social enterprise building to support the local business community in partnership with Groundworks South Tyneside and Newcastle. This fund represents the charity's share of the building as included in tangible fixed assets.

Hat-Trick Project

The Hat-Trick project was founded in 2005, using football as an ideal method to help young people gain skills and confidence - while having a great time along the way. This project is funded by grants restricted for this purpose.

CHEFF Project

The CHEFF project was founded in 2019, to encourage families to lead healthier lifestyles, reducing inequalities in health. This project is funded by grants restricted for this purpose.

Science City

The Newcastle Science City Community Engagement Project was launched to bring people of all backgrounds together to get involved with science and find out how it can make a real and lasting difference to their communities. The fund balance relates to an underspend on the project, for which authorisation is being sought to transfer to unrestricted funds.

Transfers between funds

This represents a rental charge deducted from the Hat-trick project for the rental of office space and a core charity contribution to the Hat-trick project for a trip to Estonia.

21 Analysis of net assets between funds

Current financial year

Current financial year
Unrestricted Restricted Total
£ £ £
Fund balances at 31 March 2021 are represented by:
Tangible assets 4,253 2,635,665 2,639,918
Investments 977,882 - 977,882
Current assets/(liabilities) 346,614 (42,758) 303,856
Provisions and deferred income - (2,220,259) (2,220,259)
1,328,749 372,648 1,701,397
Prior financial year
Unrestricted Restricted Total
£ £ £
Fund balances at 31 March 2020 are represented by:
Tangible assets 1,335 2,790,125 2,791,460
Current assets/(liabilities) 1,446,022 (50,299) 1,395,723
Provisions and deferred income - (2,370,089) (2,370,089)
1,447,357 369,737 1,817,094

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

22 Financial commitments, guarantees and contingent liabilities

The board has approved to underwrite the projected shortfall in the funding required for the redevelopment of Elswick Pool located in the West End of Newcastle . The Friends of Elswick Pool have committed to carry out further fundraising however, in the event that a shortfall arises between revenue and costs, Centre West (Newcastle) have committed to underwriting the gap up to a maximum of £136,073. During the year a grant of £nil (2020: £60,000) was awarded to Elswick Pool from this provision.

23 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2021 2020
£ £
Within one year 4,213 4,213

24 Related party transactions

Remuneration of key management personnel

Key personnel is the Partnership Director of the charity.

The remuneration of key management personnel is as follows.

2021 2020
£ £
Aggregate compensation 46,585 46,585

Two trustees that served during the year, H Rahman and J Byrne, are councillors of Newcastle City Council which acted as the accountable body to the NDC funding, but does not deliver any of the company's projects. Funding is received from Newcastle City Council. At 31 March 2021 an amount of £6,380 (2020: £18,225) is owed from Newcastle City Council and is included in debtors.

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

25 Cash generated from operations 2021 2020
£ £
Deficit for the year (115,697) (175,560)
Adjustments for:
Investment income recognised in statement of financial activities (15,008) -
Gain on disposal of tangible fixed assets - (18,005)
Fair value gains and losses on investments 22,118 -
Depreciation and impairment of tangible fixed assets 156,702 155,116
Movements in working capital:
Decrease/(increase) in debtors 24,254 (30,936)
Increase/(decrease) in creditors 1,711 (4,816)
(Decrease) in deferred income (149,830) (220,129)
Cash absorbed by operations (75,750) (294,330)