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2023-03-31-accounts

Charity registration number 1129502

Company registration number 04357221 (England and Wales)

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

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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

Trustees G R Curry F Laird H Rahman L Douglas M Bartley Cllr T Cairns (Appointed 18 July 2023) Charity number 1129502 Company number 04357221 Registered office The Beacon Westgate Road Newcastle upon Tyne Tyne and Wear NE4 9PQ Auditor Sumer Auditco Limited The Beehive, Beehive Ring Road London Gatwick Airport Gatwick United Kingdom RH6 0PA Bankers The Co-operative Bank plc 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 - 25

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) TRUSTEE'S REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2023

The trustees present their annual report and financial statements for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements 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 2019).

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 was exacerbated by the pandemic and subsequent cost of living crisis, 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 started the process of planning a new three-year strategy, this was interrupted due to the Covid pandemic. In April 2022 the Board met with the staff to familiarize themselves with the staff and agreed an update of the charities objectives and approve the redesign of the Website. All actions previously agreed with the Board, requested by staff, and proposed by Investors in People as part of agreed strategies implementation. The Website update is largely completed with all Board members providing profiles, videos showcasing CHEFF and Hatrick programs and regular news blogs being posted.

During the pandemic 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 has enabled Hat-Trick and CHEFF to deliver their respective programs in a more flexible way. The big change following the pandemic is the opportunity for the team to work directly together, having a positive impact for operations and planning and the staffs wellbeing.

In April 2023 Centre West was assessed by Investors in People and retained its IPP status. The report confirmed that Centre West is performing well above the average Investors in People score as well as for the industry sector within which it operates i.e. social work activities including charities. For all areas IIP rates Centre West at least a 9 out of 10.

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) TRUSTEE'S REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2023

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, and business training events. Significantly, it is a partnership with the environmental charity, Groundwork South Tyneside and Newcastle.

Due to the nature of changing demand a process speeded up by the pandemic. In 2021–22 the joint Board took the decision to concentrate on business support particularly the hot-desking offer and reduce the events offer to meeting room hire only. Demand for office accommodation and artisans’ workshops is consistently more than 70%, the target is 85%. The project after initially requiring significant investment reported a break-even position for the 2022-23 financial year and is on track to achieve a slight surplus in 2023-24. Priorities for the future are:

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 develop during 2022/23. Despite the impact of Covid and cost of living crisis. As part of the Board agreed development strategy Hat-Trick expanded its operations into Gateshead and has successfully negotiated with the council to extend activities from September 2022 growing in scope and size in 2023.

Hat-Trick has again taken on 3 apprentices this time for the year 2023/24. The quality of the training and program were recognized nationally in 2021/22, Annmarie Roberts was awarded apprentice graduate of the year, and Dwayne Murray mentor of the year by our training agent Coach Core. Dwayne, Michelle Monk and Kate Codling, (CHEFF), all successfully completed their level 5 management course in 2023 as part of their career development pathway this year.

Hat-Trick 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 2021/22 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.

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) TRUSTEE'S REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2023

CHEFF

Approved as a pilot project in January 2019 the CHEFF project was evaluated against performance in January 2021, the Board exercised the option to extend the project for a further 3 years. In July this year an apprentice was appointed to support the coordinator. The objectives agreed for CHEFF include the following:

To 31 March 2023 CHEFF had achieved income of £47,307 and a deficit of £20,367 which was in line with expectations. CHEFF generated an income of £25k over the year ahead of business plan forecast of £22.5K and provided services to over 50 families and over 800 individuals.

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, which has achieved a 6% + surplus in its first full year of trading.

Going forward Centre West’s joint Board and staff will meet in October/November to plan and update the business plan to address the ongoing deficit generated by central costs.

Financial review

This report relates to the period 2022-2023 during which income and expenditure related solely to the charity’s core activities.

During the year a deficit of £143,779 was generated (2022: £34,865). The unrestricted fund net assets readily

available are £1,157k (2022: £1,301k).

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 2022-2023 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.

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.

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) TRUSTEE'S REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2023

Plans for the future

During 2023 - 2024 Centre West’s strategic aims are:

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.

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). An 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 H Rahman L Douglas J Byrne (Resigned 17 July 2023) M Cole (Resigned 17 January 2023) M Bartley Cllr T Cairns (Appointed 18 July 2023)

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 2023

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 Sumer Auditco Limited 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 report was approved by the Board of Trustees.

G R Curry

Trustee

Dated: 31 January 2024

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

Opinion

We have audited the financial statements of Centre West (Newcastle) (the ‘charity’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and 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 Financial Reporting Standard 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 MEMBERS 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 directors' report included within the Trustee's report.

Responsibilities of trustees

As explained more fully in the statement of Trustee's responsibilities, 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.

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 MEMBERS 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 noncompliance 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 charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Stephen Slater (Senior Statutory Auditor) for and on behalf of Sumer Auditco Limited Statutory Auditor The Beehive, Beehive Ring Road Gatwick RH6 0PA

Date: 31 January 2024

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

FOR THE YEAR ENDED 31 MARCH 2023

Current financial year

Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income and endowments from:
Donations and legacies
3
-
302,312
Charitable activities
4
11,922
101,859
Investments
5
30,765
-
Other income
6
20,000
-
Total income
62,687
404,171
Expenditure on:
Charitable activities
7
105,508
452,246
Net gains/(losses) on investments
11
(52,883)
-
Net outgoing resources before transfers
(95,704)
(48,075)
Gross transfers between funds
(30,367)
30,367
Net movement in funds
(126,071)
(17,708)
Fund balances at 1 April 2022
1,305,322
361,210
Fund balances at 31 March 2023
1,179,251
343,502		 Total
2023
£
302,312
113,781
30,765
20,000
466,858
557,754
(52,883)
(143,779)
-
(143,779)
1,666,532
1,522,753		 Total
2022
£
241,369
122,889
30,229
-
394,487
512,143
82,791
(34,865)
-
(34,865)
1,701,397
1,666,532

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

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 2023

Prior financial year

Unrestricted
Restricted
funds
funds
2022
2022
Notes
£
£
Income and endowments from:
Donations and legacies
3
56,142
185,227
Charitable activities
4
16,962
105,927
Investments
5
30,229
-
Total income
103,333
291,154
Expenditure on:
Charitable activities
7
126,457
385,686
Net gains/(losses) on investments
11
82,791
-
Net outgoing resources before transfers
59,667
(94,532)
Gross transfers between funds
(74,214)
74,214
Net movement in funds
(14,547)
(20,318)
Fund balances at 1 April 2021
1,319,869
381,528
Fund balances at 31 March 2022
1,305,322
361,210		 Total
2022
£
241,369
122,889
30,229
394,487
512,143
82,791
(34,865)
-
(34,865)
1,701,397
1,666,532

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

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 2023

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
18
Net assets
Income funds
Restricted funds
20
Unrestricted funds		 2023
£
£
2,328,567
1,007,790
3,336,357
324,620
28,130
352,750
(245,755)
106,995
3,443,352
(1,920,599)
1,522,753
343,502
1,179,251
1,522,753		 2022
£
£
2,485,364
1,060,673
3,546,037
333,654
102,775
436,429
(245,505)
190,924
3,736,961
(2,070,429)
1,666,532
361,210
1,305,322
1,666,532

The financial statements were approved by the Trustees and authorised for issue on 31 January 2024

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 2023

Notes
Cash flows from operating activities
Cash absorbed by operations
25
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash generated from investing
activities
Net cash used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
£
£
(105,410)
-
30,765
30,765
-
(74,645)
102,775
28,130		 2022
£
£
(156,529)
(1,860)
30,229
28,369
-
(128,160)
230,935
102,775

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

FOR THE YEAR ENDED 31 MARCH 2023

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 financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 2019). 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 amounts 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. 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 or grantors 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.

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.

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.

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

FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

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.

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.

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

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 payments 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.

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.

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

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 £2,328,567 (2022: £2,485,364).

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

FOR THE YEAR ENDED 31 MARCH 2023

3 Donations and legacies

Current financial year

Current financial year
Restricted
funds
2023
£
Grants receivable
302,312
Grants receivable for
core activities
Newcastle CC revenue
grant
31,041
Release of deferred
capital grants
149,830
Coronavirus Job
Retention Scheme
-
Other grants
121,441
302,312		 Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
302,312
56,142
185,227
31,041
-
16,264
149,830
-
149,830
-
56,142
-
121,441
-
19,133
302,312
56,142
185,227		 Total
2022
£
241,369
16,264
149,830
56,142
19,133
241,369

4 Income from charitable activities

Unrestricted
Restricted
funds
funds
2023
2023
£
£
Activities
Services from charitable
activities
-
101,859
Share of The Beacon
Partnership profit
11,922
-
11,922
101,859		 Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
101,859
-
105,927
11,922
16,962
-
113,781
16,962
105,927		 Total
2022
£
105,927
16,962
122,889

Income from listed investments

**Unrestricted ** Unrestricted
funds funds
2023 2022
£ £
30,765 30,229

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

FOR THE YEAR ENDED 31 MARCH 2023

6 Other income

2023 2022
£ £
Settlement of dilapidation 20,000 -

7 Charitable activities

Project undertaken
to benefit area
2023
£
Staff costs
255,375
Depreciation and impairment
154,459
Advertising and communication
194
Equipment
30,379
Trustee and staff expenses
5,504
Office costs
91
Property costs
967
Legal and professional fees
2,400
Sundry expenses
2,877
452,246
Share of support costs (see note 8)
87,820
Share of governance costs (see note
8)
17,688
557,754
Analysis by fund
Unrestricted funds
105,508
Restricted funds
452,246
557,754		 Total
Project undertaken
to benefit area
2023
2022
£
£
255,375
199,418
154,459
154,459
194
856
30,379
23,634
5,504
5,205
91
-
967
-
2,400
-
2,877
2,115
452,246
385,687
87,820
108,408
17,688
18,048
557,754
512,143
105,508
126,457
452,246
385,686
557,754
512,143		 Total
2022
£
199,418
154,459
856
23,634
5,205
-
-
-
2,115
385,687
108,408
18,048
512,143
126,457
385,686
512,143

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

FOR THE YEAR ENDED 31 MARCH 2023

8
Support and governance costs
Support
costs
Governance
costs
£
£
Staff costs
34,932
-
Depreciation
2,338
-
Trustee and staff
expenses
97
-
Advertising and
communication
3,958
-
Equipment
56
-
Property costs
5,820
-
Office supplies
4,762
-
Rent
27,522
-
Legal and professional
fees
2,820
-
Bank charges and
interest
36
-
Sundry expenses
5,479
-
Audit fees
-
3,000
Accountancy
-
14,688
87,820
17,688
Analysed between
Charitable activities
87,820
17,688		 2023
£
34,932
2,338
97
3,958
56
5,820
4,762
27,522
2,820
36
5,479
3,000
14,688
105,508
105,508		 Support
costs
Governance
costs
£
£
68,937
-
1,955
-
119
-
57
-
282
-
5,183
-
2,754
-
25,531
-
420
-
246
-
2,924
-
-
3,360
-
14,688
108,408
18,048
108,408
18,048		 2022
£
68,937
1,955
119
57
282
5,183
2,754
25,531
420
246
2,924
3,360
14,688
126,456
126,456

9 Trustees

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

10 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2023
Number
13
2023
£
261,630
20,345
8,332
290,307		 2022
Number
13
2022
£
244,771
14,684
8,900
268,355

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

FOR THE YEAR ENDED 31 MARCH 2023

10 Employees

(Continued)

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

Remuneration of key management personnel

Key personnel is the Partnership Director of the charity.

The remuneration of key management personnel is as follows.

2023 2022
£ £
Aggregate compensation 32,611 37,361
11 Net gains/(losses) on investments
Unrestricted Unrestricted
funds funds
2023 2022
£ £
Revaluation of investments (52,883) 82,791

12 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

13 Tangible fixed assets

Tangible fixed assets
Cost
At 1 April 2022
At 31 March 2023
Depreciation and impairment
At 1 April 2022
Depreciation charged in the year
At 31 March 2023
Carrying amount
At 31 March 2023
At 31 March 2022		 Freehold
property
Fixtures and
fittings
£
£
3,861,479
29,507
3,861,479
29,507
1,380,274
29,507
154,459
-
1,534,733
29,507
2,326,746
-
2,481,205
-		 Computers
£
84,291
84,291
80,132
2,338
82,470
1,821
4,159		 Total
£
3,975,277
3,975,277
1,489,913
156,797
1,646,710
2,328,567
2,485,364

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

FOR THE YEAR ENDED 31 MARCH 2023

14 Fixed asset investments

Cost or valuation
At 1 April 2022
Valuation changes
At 31 March 2023
Carrying amount
At 31 March 2023
At 31 March 2022
15
Debtors
Amounts falling due within one year:
Trade debtors
Amounts owed by joint ventures
Prepayments and accrued income
16
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
investments
£
1,060,673
(52,883)
1,007,790
1,007,790
1,060,673
2023
2022
£
£
41,346
29,179
273,081
292,333
10,193
12,142
324,620
333,654
2023
2022
£
£
5,769
5,769
2,528
4,965
214,034
225,956
3,328
1,388
20,096
7,427
245,755
245,505

17 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.

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

FOR THE YEAR ENDED 31 MARCH 2023

18 Government grants

Deferred income is included in the financial statements as follows:

Deferred income is included within:
Shown as deferred income on the face of the balance sheet
Movements in the year:
Deferred income at 1 April 2022
Released from previous periods
Deferred income at 31 March 2023		 2023
£
1,920,599
2,070,429
(149,830)
1,920,599		 2022
£
2,070,429
2,220,259
(149,830)
2,070,429

Included in deferred government grants is £1,920,599 (2022: £2,070,429) in relation to The Beacon development.

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 £8,332 (2022: £8,900). At the balance sheet date a pension liability of £3,328 (2022: £1,388) was outstanding.

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

20 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

Current financial year

Current financial year
Movement in funds
Balance at Incoming Resources Transfers Balance at
1 April 2022 resources expended 31 March
2023
£ £ £ £ £
Beacon Building 290,040 149,830 (154,458) - 285,412
Hat-Trick Project 52,818 207,034 (230,114) 10,000 39,738
Science City 18,352 - - - 18,352
CHEFF Project - 47,307 (67,674) 20,367 -
361,210 404,171 (452,246) 30,367 343,502

Prior financial year

Prior financial year
Movement in funds
Balance at Incoming Resources Transfers Balance at
1 April 2021 resources expended 1 April 2022
£ £ £ £ £
Beacon Building 294,669 149,830 (154,459) - 290,040
Hat-Trick Project 68,507 114,621 (190,767) 60,457 52,818
Science City 18,352 - - - 18,352
CHEFF Project - 26,703 (40,460) 13,757 -
381,528 291,154 (385,686) 74,214 361,210

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

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 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

General funds
Previous year:
General funds		 At 1 April
2022
Incoming
resources
Resources
expended
£
£
£
1,305,322
62,687
(105,508)
At 1 April
2021
Incoming
resources
Resources
expended
£
£
£
1,319,869
103,333
(126,457)		 Transfers
Gains and
losses
At 31 March
2023
£
£
£
(30,367)
(52,883)
1,179,251
Transfers
Gains and
losses
At 31 March
2022
£
£
£
(74,214)
82,791
1,305,322

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, as at the year end, the commitment has ended.

During the year a grant of £nil (2022: £nil) was awarded to Elswick Pool from this provision.

CENTRE WEST (NEWCASTLE) (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

23 Analysis of net assets between funds

Current financial year

Current financial year
Unrestricted Restricted Total
£ £ £
Fund balances at 31 March 2023 are represented by:
Tangible assets 1,821 2,326,746 2,328,567
Investments 1,007,790 - 1,007,790
Current assets/(liabilities) 169,640 (62,645) 106,995
Provisions and deferred income - (1,920,599) (1,920,599)
1,179,251 343,502 1,522,753
Prior financial year
Unrestricted Restricted Total
£ £ £
Fund balances at 31 March 2022 are represented by:
Tangible assets 4,159 2,481,205 2,485,364
Investments 1,060,673 - 1,060,673
Current assets/(liabilities) 240,490 (49,566) 190,924
Provisions and deferred income - (2,070,429) (2,070,429)
1,305,322 361,210 1,666,532

24 Related party transactions

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 2023 an amount of £12,011 (2022: £12,711) is owed from Newcastle City Council and is included in debtors.

25

Cash generated from operations
Deficit for the year
Adjustments for:
Investment income recognised in statement of financial activities
Fair value gains and losses on investments
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease/(increase) in debtors
Increase/(decrease) in creditors
(Decrease) in deferred income
Cash absorbed by operations		 2023
£
(143,779)
(30,765)
52,883
156,797
9,034
250
(149,830)
(105,410)		 2022
£
(34,865)
(30,229)
(82,791)
156,414
(1,939)
(13,289)
(149,830)
(156,529)