Registered number: 6946097 Charity number: 1132051 ACTION FOUNDATION (A Company Llmlted by Guarantee) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
ACTION FOUNDATION (A Company Llmlted by Guarantee) CONTENTS Page Refernnco and Admlnlstratlv• Detalls of the Charlty, Its Trustees and Advlsors Tru8t•as' Réport Indepondent Audltors. Report on th• Flnanclal Stat•monts 9-12 Statement of Financlal Actlvltles 13 Balan Sh••t 14-15 Statement of Cash Flows 16 Nota8 to the Flnanclal Statements 17-35
ACTION FOUNDATION (A Company Limlted by Guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY. rrs TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2025 Trustees W A Coulson S Hamilton D Lyall G S Mandell R Naeb (resigned 30 September 2024) G Okal (reslgned 23 May 2024) H Young Company reglst•red number 6946097 Charlty reglster•d number 1132051 Reglstared offic• The Castlegate Centre Melbourne Str88t Newcastle upon Tyne NE12JQ Company 8ecr•tary D MG4uley Indopendant audltorn Kinn8ir Associates LimSted Chartered Accountants Aston House Redburn Road Newcastle upon Tyn8 NES 1N8 Bankers Ctroperative Bank plc PO Box 250 Skelmersdale WN8 6WT Unity Tnjst Bank plc Nlne Brindleyplace Bimiingham B12HB Page I
ACTION FOUNDATION (A Company Limited by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2025 The Trustees present their annual report together wtth the audited financial statements of the charitable company for the year 1 April 2024 to 31 March 2025. The Annual Report seNes the purpose of both a trustees, report and a directors, report under company law. The Trustees confimi that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable companvs governing document and the provision5 of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019). Since the charitable company qualifies as small under section 382 of the Companie5 Act 2006, the Strategic Report required of medium and large companies und8r th8 Companies Act 2006 (Strategic Report and DireGtors' Report) Regulations 2013 has been omitted. Objectlves and actlvltles Policles and objectlvos The charitable compan515 objects are: 1. The prevention and l or relief of povety by the provision of advice and assistance to the publlc including to refugee5, asylum seekers, mlgranl workers and their dependents, particularfy by the provision of education and training with a view to facilitating job creation and work opportunities for such persons, and by the provision of housing and accommodation for persons in need of such provislon, and the improvement of housing and living conditions for such persons- 2. The advancement of education {including mental, physical, social and health education) by provlslon of schooling, training and advisory services., 3. The advancèment of environmental protection or improvement, particularly by educating the public in the cOnSeallon, protection and improvement of the physical and natural environment, and by the promotion of waste reduction. recycling, and by addressing the causes of climale change; 4. The relief of those in need by reason of thelr youth, age, ill health. disablllty, finandal hardshlp or other disadvantage, particularly by supporting or assisting persons SLrffering or recovering from substance abuse, eating disorders, prostitution or persons In slmilar situations who are in need of charitable support; and 5. The promotlon of human rlghts, particularly by the support of those sufferfng from human rights abuses and I or issues of injustice perpetrated by individuals, groups or govemmenls on the grounds of race, religion, colour, sex. sexual orientation, disability, political vlews l activlties, ethniaty or medical or other conditlon. In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit. including the guidance 'Public benefit-. running 8 charity (PB2)'. Actlvltles undertaken to achieve obJe¢tlves The main activities undertaken in relation to these objects are: Accommodation Servlces Housing - provides free accommodation and support to destitute migrants with no recourse to public fund5 to try and resolve their immigration status and plan for their future- Letting - manages property and provides supported accommodation to homeless refugees to enable thern to progress onto independent living. Language and Learning provid8s free English language classes, digital inclusion and employabilty support to migrants not able to access provision elsewhere. Page 2
ACTION FOUNDATION (A Company Llmlted by Guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Objectlves and actlvitios (contlnued) InterAction activilies. provldes social inclusion, advice and welfare support through drop-in, outreach and casework Young Llve8 - provldes young refug88s and asylum seekers and thelr families with youth groups. activity sesslons, 1.1 support, trlps and residentials that provide specialised practical, emotional and soclal support. Achievements and performance Main achlevements of the Charfty In this year we again supported over 3,100 people, demonstrating the consistent demand for our servic85. We continue to support individuals from over 100 different nations. working dosely in partnership with others in the region. Again, the prlnciple challenge faced was of an uncertain political and economic cllmate. Thls rlsk was highlighted by the riots of August 2024 in response to which we rapidly responded and adBpted our operations, moving contact online where possible and implemènting stringent security measures in our on-site delivery. Our management team and Board of Trust88s hav8 been stable throughout the period, enabling growth in depth and maturity of operations as well as continued progress against our strategic plan. Though we did successfully recruit hyo trustees. one with lived experienGe as a cuent client. unfortunately both had a chang8 in personal arcumstances before they could formally join our Board. In January 2025 we undertook a haIaY review of our five year Strategic Plan which included input from dients and volunteers as well as staff and trustees. Excellent progress was noted on the strateglc prlorities to deliver new and existing services and develop partnerships, which has enabled us to focus on building our internal capacity, sustainability and réadiness to respond throughout 2025. Our Strategic Plan as well as our Purpose and Values statements can be found on our website. We also recruited a part tlme Inclusion Development Manager who began in January 2025 and works across the organisation on development and change projects to support our practice around EDI. Client Engagement and Lived Experience. This additional capacity and specific focus has further strengthened our work in this area. Having launched our 'lnForm' database system In January 2024 and as part of the Data Project, a four-year project funded by the Paul Hamlyn Foundation, we undertook the process of embedding and refining both the System and our practice. Although a hugely beneficial change this process was a steep leaming curve for us and it W85 only in eady 2025 that we began to fully realise its potential across all of our services. Though we h81d an optimistic outlook on the media and political policy landscape following the 2024 General Election, events have transpired quite differently. As mentioned above we rapidly responded to the outbmak of violence across the UK, including at numerou5 Cltie5 in our region in August 2024. Following this operational response which was focused on ensuring the safety of our staff and volunteers as well as adapting our services to best support our clients, we undertook a listening exercise, the summary of which we published in our 'Unwanted, like a strangerf report, available on our website. Sadly, throughout the second half of this year, we saw continued political and m8dia attention given to this issue and a significant rise in the instances of hate crime Gommitted again them. We continue to support our clients and advocate for a fairer, more tolerant society through our regional profile and positive messaging. Page 3
ACTION FOUNDATION (A Company Limited by Guarantee) TRUSTEES. REPORT ICONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Achievements and performance (continued) Revlew of activltles Young Livès Having fomially launched our Young Llves servlce in January 2024 we w8r8 pleased to both refine our approach and secure multi-year funding from Comic Relief and Children in Need to support this work. The service supported 322 children and young people through 236 sessions and additional 1-1 support. We worked with partners such a5 Northumbria University and Solace Surf School to deliver a broad range of activities and educational Input. In Novemb8r 2024 Young Lives won both Project of the Year and Social Action of the Year at the prestigious North East Youth Awards and in early 2025 the Youth Leadership group produced their short film 'Small Matters, which highlights the need for refuge8 youth voices and was showcased at a launch èvent at the Glasshouse International Centre for Music. During this period, we began negotiation5 With Handcrafted with a view to developing a partnership for the provision of support lo Unaccompanied Asylum S88king Children (UASC). A due diligenc8 process was conducted and in January 2025 it was agreed that a partnership could be form8d to proactively tender for this contracted work. IntarActlon Though the numbers decreased slightly from the previous year we continued to engage with large numbers through our Newcastle drop-in, South Tyneside outreach work and through occasional events or activities. We saw over 2,500 attendances at our drop-in and helped 140 people navigate their local NHS services, linking them with GPS and other health s8rvic8s in South Tynesid8. This work was supported by 40 commitled volunteers, 88°A of whom have lived experience of migration and as well as providing essential support to others, gain valuable skills through their participation. In the summer of 2024 we sald goodbye to the prolect manager who had led the project for four years and following a thorough recruitment process, welcomed back a pervious InterAction project officer to manage Ihe dellvery of this vital servi. Language and Leamlng Having Iransitioned over the previous 12 months, this service underwenl a period of embedding our Digital Inclusion work which started in November 2024, funded by Virgin Money Foundation, and Employability, which was initially a general program funded by the North of Tyne Combined Authority and then latterly specifically focussed on displaced international workers, funded by NEADASS. We 8150 continued to provide free English language classes which ran until December 2024 in both Newcastle and Sunderland and in 2025, because of a lack of funding, in N8wcastle only. We delivered 595 classes which were supported by 48 dedicated and highly skilled volunteers and benefitted over 360 learners. At the end of this period we said goodbye to the project manager who had managed the project for 2 years and fulfilled a pivotal role in the transltion and development of its provision. We were successful in recruiting an excellent candidate who began shortly after and leads the further embedding of these ¢hanges and growth of the provision. Page 4
ACTION FOUNDATION (A Company Limlted by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Achlevements and performance {contlnued) Accommodatlon Services We continued to see 5ignrficant demand for our Accommodation support throughout the year and although asylum decision making slowed following the general election in 2024, the waiting lists were such that many r8fugees still remain waiting for a place to live. In our Lettings project we supported 95 newly recognised refugees, helping 45 to move into independent living and supporting 6 family reunions for people whose relatives were in other countries. In our Housing project we supported 12 destitute asylum seekers and across both projects we delivered 4,467 hours of support with 890 of all r8sid8nts moving on positively. We have also continued to be active in advocating for destitute or homeless migrants, engaging with national campaigns. sharing b8St practice with European partners and promoting regional ¢onv8rsations. Flnanclal revlew The financial environment has agaln been posltlve. and wlth a contlnued focus on cost controls our income has 8XC8eded expenditure, allowing us to maintain sufficient r8serves and set aside funds for capitsl investment. Thankfully there were no significant events affecting the financial performance of the charity during this period. Our principal source on income continues to be charitable activity, accounting for 46¥0 of total income and the majority of which is Lettings activily. This is supplemented by grants (31 /0) and other income 123Yo). These income streams support the delivery of projecl activity to asylum seekers and refugees and are anticipated to continue sustslnably for the coming years wlth moderate growth projected. Th8 principle risks the Gharity faces are from national policy change affecting either our cli8nt demographics or the legal status of the services we dellver, both unllkely events outside of our influence or control. These risks, as well as others of lesser significance, are reviewed Iwice annually by the Board of Trustees, t8rmly at Sub Groups and bi-monthly by management staff. With the implementation of our five-year Strategic Plan we launched our Business Dev81opm8nt Strategy in 2023 to deliver on our ambitious prioritles over the coming years. The Strategy is to grow Action Foundation in a gradual and sustainable manner, with a focus on measured service growth and the addition of more supported accommodation, both through philanthropic landlords and property acqu15ition. Though we have not yet been able to expand our accommodation in this period, we were able through a gen8rous donation from supporters to purchase a property from one of our existing landlords, reducing our costs and increasing our assets against which we could borrow to invest further. Positive steps have been made in securing longer temi funding streams including Comic rèlief, Children in Need and the new Digital Inclusion grant from Virgin Money Foundation, which with the continued support from The Mercer's Company, Refugee Action and the National Lottery, South Tyneside Primary Care NeOrk and Tuixen, represent a solid foundation for securing grant funding with a shorter timeline for delivery. Work is ongoing to flex and adapt our services aligned to client needs, whilst attracting sustainable levels funding. Our community fundraising continued to provide highlights with activity throughout the year as our supporters and staff took on new and not so new challenges to ra15e funds. demonstrating their ongoing commitment and passion for our dients and our work. We attracted 24 runners for the Great North Run in September 2024. which is always a highlight of the fundraising calendar. Our Winter Campaign "Unwrap the Jof was intended as a positive contrast to the increasingly hostile environment faced by migrants and again raised a significant sum which included match funding from Aviva Community Fund and their staff. As well a5 Other regular donations, we received a single large donation of £160,000 from supporters for the purchase of a property. Page 5
ACTION FOUNDATION (A Company Llmlted by Guarantee TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Large or small, we are hugely grateful to everyone who donates or fundraises for ourwork. We would also like to thank all our funders and a list of Trusts and Foundations that have supported us over the last years is on pages 21-22. Overall, our income increas8d by 16 % on th8 previous y8ar, and we saw an incr88se In expenditure of 7010. We also made s significant transfer between funds of £160,000 vthich was donated for the purchase of a property. and free reserves therefore decreased to £101,352 (2024.. £172,170). However, our fixed assets were increased by the same amount and total £503,026. Reserves policy Free reserves Having considered financial risk, Ilquldlty requlrement and the tlmlng of cash flows throughout the year, the Trustees, policy is to aim to maintain three months unrestricted expenditure (c. £95k) held in readily realisable assets. The Trustees are satisfied with reserves at the current level in line with the alms of the policy. Reserves tled up in fixed assets The general fund includes £503,026 which is tied up In tangible flxed assets. Restrfeted funds The charitable charity holds and administers a number of restricted funds. As at 31 March 2025 restricted funds totalled £95,116. These are not available for the general purposes of the charity. Golng concern After making appropriate enquiries, the Trustees have a reasonable expectation that the charitable company has adequate resources to continue in operatlonal existence for the foreseeable fulure. For this reason, they continue to adopt the going cOnM basis in preparing the financial stslements. Further details regarding the adoption of the going concem basis can be found in the accounting policies. Structure, governance and management Constitutlon Action Foundation Is a company Ilmlted by guarantee, govemed by its Memorandum and Articles of Assoclatlon, The charitsble company was incorporated on 27th Jun8 2009 with r&gistration number 6946097. It has been registered as a charity with the Charity Commission. number 1132051 since 9 October 2009. There are currently five members, each of whom agree to contribute £1 in the event of the charitable company winding up. Methods of appolntm8nt or election of trustees The number and skills of directors is regularly reviewed, and any gaps identified. Open recruitment is undertaken and following application and interview suitable candidates are invited to attend meetings, initially as observers, before being fomially invited to join the board following discussion and agreement from both parties. Directors shall hold office for a t8rm of four years but shall be eligible to hold office for further temis of four years indefinitely. At least one trustee must be an 61der of City Church, Newcastle: Page 6
ACTION FOUNDATION (A Company Limlted by Guarantee TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 structure, governance and management (contlnued Organisational structure The charitable company is organised so thal the directors mèèt regularfy to review its affalrs and set objectives. There is a full-time Chief Executive supported by a management team managing day to day activities. There is a close relationship with City Church N8wcasUe who founded the charity and provide on90ing support with office space and facilities at their building, The CastleGale as 11 as having a requlremènt to have at least one City Church elder as a Trustee of Action Foundation. Decislon4naklng arrangements Organisational priorities and the overall financial strategy for the Charity are set by the Board of Trustees. The responsibility for ensuring that these priorities and strategies are delivered is delegated to the Chief Executive Officer. Decisions on annual salary awards, significant or unusual expenditure and new projects of strategic significance are reserved for Trustees. The Board of Trustees is assisted in its work by seven sulFgroups. The SugrOUpS are responsible for more delailed oversight of specific ar8as of operationlactivity and can consider proposals from s8nior management and make recomTnendations to the Board of Trustees. Policies adopted for tho Inductlon and tralnlng of Trustees Induction plans are used for Truste8 induction and set out specific items to be covered, by whom and the target dales for completion of each item in the induction plan. A specific set of training requirements is in place which all Trustees must undergo. Arrangements for sotting pay and remuneration Salaries are reviewed annually by the Finance Sub-Group with the assistance of the Chief Executive Officér. An established salary scale exists, and all staff are placed on specific points withln a salary banding. Criteria used in setting pay include a cost of living uplift and incremental progression. Rlsk management The directors have agreed to examine, on an annual basis, the major risks faced by Ihe charitable company, These Tisks include financial, operational and regulatory. Systems are in place to minimlse these risks, including preparation of regular financial reports, maintenance of insurance and management reviews. These systems are review8d periodically to ensure the needs of the charitable company are boing met. Plans for future periods A5 noted above, following excellent progress in other priorities we have now shifted our strategic focus to building our internal Gapacity, sustsinability and readiness to respond. This focus on efficient syslems, streamlined processes and organisational agility aligns with our Business Development strategy and will continue to strengthen our position over the coming years. To continue to strengthen our governance, trustee recruitment is again planned for 2026 following an internal skills audit. Our services continue to grow and diversify, with Young Lives beginning support for UASCS in partnership with Handcrafted, a homelessness organisalion based in County Durham, from October 2025, Afghan Resettlement in partnership with the Refugee Council beginning in November 2025 and mental hèalth support groups and individual therapy piloted through a Home Office grant contracted through the North East Migration Partnership all representing new elements of support. This collaboration and partnership to deliver new support which complements our existing services is encouraging and ultimately impacfful for our clients. Page 7
ACTION FOUNDATION (A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED FOR THE YEAR ENDED 31 MARCH 2025 Statement of Trustees. responslbllltles Th8 Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees. Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Klngdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year. Under company law. the Trustees must not approve the financial statements un18SS they are satisfied that th8y give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources. including its income and expenditure, for that period. In prepadng these financial statements, the TTUStees are required to.. select suitable accounting policies and th8n apply them consistently: observe the methods and principles of the Charities SORP (FRS 102). make judgments and accounting estimates that are reasonable and prudent; state whether applicab18 UK Accounting Standards (FRS 102) have been follow8d, subject to any Material departures disclosed and explalned In the financial statements: prepare the financial statements on the going concem basls unless It Is Inapproprlate to presume that the Charity will continue in business. The Trustees are responslble for keeping adequate accounting records that are sufficient to show and explain the Charitls transactions and disclose with reasonable accuracy at any time the financial posib-on of the Charity and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responslble for safeguarding the assets of the Charity and hence for taking reasonable steps for the preventlon and detection of fraud and other irregularities. Dlsclosure of Infomiation to audltors Each of the persons who are Trustees at the lime when this Trustees. Report is approved has confirmed that.. so far as that Twstee Is aware, there is no relevant audit information of which the charitys auditors are unaware, and that Trustee has taken all the steps that ought to have been taken as a TNStee In order to be aware of any relevant audit information and lo establlsh that the charftys auditors are aware of that Information. Auditors The auditor5. Kinnair Associates Limited, have indicated thelr wllllngness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees. Approved by order of the members of th8 tk)ard of Trustees on 20 Novemb8r 2025 and signed on their behalf by. W A Coulson Trustee D P McAuley Charily Secretary Page 8
ACTION FOUNDATION {A Company Llmlted by Guaranteel INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF ACTION FOUNDATION Oplnlon We have audiled the financial statements of Actlon Foundallon (the 'charitV) for the year ended 31 March 2025 which comprise the Statem8nt of Financial Aclivities, the Balance Sheet. the Statement of Cash Flows and the related notes. including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, includlng Financial R8POrting Standard 102 'The Financial Reporling Standard applicable in th8 UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice)- In our opinion the finandal statements: glve a true and fair view of the state of the charitable companvs affalrs as at 31 March 2025 and of Its incoming resources and applicalion of resources, Ineludlng its Income and expenditure for the year then ended; have been properly prepared In accordance wlth United Kingdorn G8n8rally Accepted Accounting Practlce,. and have been prepared in accordance wlth the requirements of the Companles Act 2006. Basls for oplnlon We conducted our audit in accordance wlth International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities und8r thos8 Standards ar8 further described in the Auditors, responsibilities for the audit of the financial statements section of our r8POrt. We are independent of the charitable company in accordance wlth the ethlcal requirements that are relevant to our audit of the financial statements in the United Kingdom, induding the Financial Reporting Council's Ethical Standard. and we have fulfilled our other ethical responsibilities in accordancé with these requlremènts. We bèlieve that the audit evldence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to golng concem In auditing the financial statements, we have concluded that the Trustees, use of ihe golng concem basls of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not Identlfied any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable companls ability to continue as a going concem 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 Spect to going concem are described in the relevant S8Ctions of this r8POrt. Page 9
ACTION FOUNDATION (A Company Limlted by Guarantee) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF ACTION FOUNDATION (CONTINUED) Other Informatlon The other information comprises the information included in the Annual Report other than the financial statements and our Auditors, Report thereon. The Trustees are responsible for the other infomiation contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, expt to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion th8r80n. Our responsibility is to read the other infomiation and, in doing so, consider whether the other information is matèrially inconsistent with the financial statements or our knowledge obtained in the course of the audit. or otherwise appears to be materially misststed. If we identify such material inconsistencies or apparent material misstatements, we are required to detemiine 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 thls regard. Oplnlon on other matters prescrlbed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the Trustees. Report for the financial year for which the financial statemenis are prepared is consistent with the financial stat8ments. the Trustee5' Report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by gxception In the light of our knowledge and understanding of the charitable company and its environment obiained In the course of th8 audit, we hav8 not id8ntified material misststemenis in the Trust88s' Report. We have nothing to report in respect of the following matters in relation to which Companles Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept, or retums adequate for our audit have nol been rec8iV8d from branches not visited by us- or the financial statements are not in agreement with the a¢UntIng records and returns-, or rtain disclosures of Trustees. remuneration specified by law are not made; or we have not received all the infonnation and 8xplanations we require for our audit- or the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemptions in prepartng the Trustees. Report and from the requirement to prepare a Strategic Report. Page 10
ACTION FOUNDATION {A Company Limlted by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF ACTION FOUNDATION (CONTINUED) Responsibilities of trustees As explained more fully in the Trustees, Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for bèing satisfiéd that thèy give a true and fair view, and for such intèmal control as the Truslees determine is neSSary 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 assesslng the chariiable companls ability to continue as a going concern, disclosing, as applicable, matters related to going conrn 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 r8alistic altemative but to do so. Audltor5' responslbilitlès for thè audlt of the financial statoments Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from rnaterial mi55tatement, whether due to fraud or error, and to issue an Auditors, 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 IUKI 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 stat8m8nts. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures In line with our responsibilities, outllned above, to detect materi81 misstatements in respect of irregularities. including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is d8tailed below.. the engagement director ensured that the engagement team collectlvely had the appropriate competence. capabilities and skills to identify or recognise non-compliancè with applicable laws and regulations- we identified the laws and regulations applicable to the Charity through discussions with trustees and other management, and from our commercial knowledge and experience of the sector; we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including th8 Charities Act 2011 et seq., and Charity Commi55ion regulations.. we assessed the extent of compliance with the laws and regulations Identlfied above through making enquiries of management and inspecting legal correspondence., and we ensured Ihat the identified laws and regulations were communicated within the audlt team regularly and the team remained alert to instances of non-compliance throughoul the audit. We assess8d tha SUSC8Ptibility of the Company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by.. making enquiries of management as to where they considered there was susceptibility to fraud and their knowledge of actual, suspected and alleged fraud: and considering the intemal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we.. - perfomed analytical procedures to identify any unusual or unexpected relationships,. and tested journal entries to identify unusual transactions. Page11
ACTION FOUNDATION (A Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF ACTION FOUNDATION (CONTINUED) In responsé to the risk of irregularities and non-compliance with laws and regulations, we design8d procedures which included, but were not limlted to.. - agreeing financial statement disclosures to underlwng supporting documentation; r8ading the minutes of meetings of those charged with governance., enquiring of management as to actual and potential litigation and claims. and requesting correspondence with HMRC, relevant regulators and the Charity's legal advisors. r6questing unusual correspondence with HMRC. relevant regulator5 and. if we are put on notice of any Issues. the COmpanS legal advisors. There ar8 inherent limitations Sn our audit procedures descrlbed above. The more removed that laws and regulations are from financial transactions, the le55 likely it is that we would become aware of nonwcompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the director5 and other management and the inspeclion of regulatory and legal corr8spondence. if any. Material misstat8menls that arise due to fraud can be harder to detect than those that arise from error as they rnay involve deliberate concealment or collusion. A further descrlptlon of our responsibilities for the audlt of the financial statements is located on the Financial Reporting Council's w8bsite at: www.frc.or .uklaudltorss onsibillties. This d8SCriPtion fomis part of our Auditors, ReFK)rt. Use of our report This report is made solely to the charitable companys members, as a body, In accordance wlth Chapter 3 of Part 16 of Ihe Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable companls members those matters we are required to stste to them in an Auditors, 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 its members, as a body, for our audit worff. for thls report. or for the opinions we have formed. Detlev Anderson {Senior Statutory Audltor) for and on behalf of Klnnair Associates Llmited Chartered Accountants Statutory Auditor Aston House Redburn Road Newcastle upon Tyne NE5 1NB Date.. Page 12
ACTION FOUNDATION IA Company Limlted by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2025 Unrestrlcted funds 2025 Restricted funds 202S Total fundg 2025 Total ftsnds 2024 Noté Income from: Donations, legacles and grants Charltable activities Other trading activitl8S Other income 283.310 365,881 9,796 2,749 647,618 441.374 930,928 807,25S 9,796 2,749 742, 784 749,816 10.890 4,195 Total income 661,736 1,088,992 1,750,728 1,507,685 Expendlture on: Raising funds Charitable activitle5 83,320 627,836 83,320 1,501,296 101,594 1,384,372 873,460 Total expendlture 711,156 873,460 1,584,616 1,485,966 Net lexpenditurelllncorne Transfers between funds (49,420) 160,000 215,532 (160,0001 166,112 21.719 17 Net movement In fund8 110,580 55,532 166,112 21.719 Reconclllatlon of funds: Total funds brought forward Net movement in funds 493,797 110.580 39,584 55,532 533,381 166,112 511.662 21,719 Total funds carrfed foNard 604,377 9S,116 699,493 533,381 The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on page5 17 to 35 form part of these financial statements. Page 13
ACTION FOUNDATION (A Company Limitsd by Guarantee) REGISTERED NUMBER: 6946097 BALANCE SHEEr AT 31 MARCH 2025 2025 2024 Noto Flxed assets Tanglble assets 13 503,028 339,434 503,026 339,434 Current a8SOt8 Debtors Cash at bank and In hand 14 44,479 287,367 43,460 343,367 331,846 386,827 Curr•nt Ilabllltl•s Creditors: amounts falllng due wlthln one year 15 (51,525) (110, 776) Not curront assets 280.321 276,051 Totsl aswt• leu current Ilabllltles 783,347 615,485 Creditors: amounts falllng due aft8r more than one year 16 (83,854) (82,104) Total n•t a880ts 699.493 533,381 Page 14
ACTION FOUNDATION (A Company Llmlted by Guarantae) REGISTERED NUMBER: 6946097 BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2025 2025 2024 Note Charlty funds Restrlcted funds Unrestricted funds 17 17 95,116 604,377 39,584 493, 797 Total funds 699,493 533,381 Th8 Trustees acknowledge their responsibilities for complying with the requirements of the Act wlth respect to accounting record5 and preparation of financial statements. Th8 financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies r8gim8. The financial stat8ments were approved and authoris8d for issue by the Trustees on 20 Novemb8r 2025 and signed on their behalf by: W,fv aL W A Coulson Trustee D P McAuley Charity Secretary The notes on pages 17 to 35 form part of these financial statements. Page 15
ACTION FOUNDATION (A Company Llmlted by Guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 Note Cash flows from operatlng actlvltles Net cash used In operating activities 20 109,000 82,276 Cash IIow8 trom Inv•stlng actlvltles Purchese of tsngible flxed assets (165,000) Net cash lused In)Iprovldad by Invostlng actlvltl•s (165,000) Cash flows from flnanclng activities Net cash provided by financlng actlvltlas Change In cash and cash equlvalents in the year Cash and cash equivalents at the beginning of the year (56.000) 343,367 82,276 261,091 Cash and cash oqulvalents at the end of the year 21 287.367 343.367 The notes on pages 17 to 35 fomi part of these financial stat8m8nts Page 16
ACTION FOUNDATION (A Company Limlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 General Informatlon The Charity is a private company limited by guarantee, registered in England and Wales. number 06946097. The registered Offi is The Castlegate Centre. Melbourne Street, Newcastle upon Tyne. NE1 2JQ. The Charity is also r8gistered as a charity in England and Wales, Charity number 1132051. Accountlng pollcles 2.1 Basls of preparatlon of flnanclal statements The financlal statements have been prepared In accordance with the Charitie5 SORP {FRS 102) Accounting and R8POrting by Charit18s: Stat8m8nt of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102) {effective 1 January 2019), the Financial Reporting Slandard applicable in th8 UK and R8public of Ireland (FRS 102), the Companies Act 2006 and the Charities Act2011. Action Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially rècognised at historical cost or transaction value unless otherwise Staled in the relevant accounting policy. The financial statements hav8 been pr8pared on the historical cost basis. The financial statements are prepared in Sterllng, whlch is the functional currency of the Charlty and amounts are rounded to the nearest £. The financial statements have been prepared to give a Irue and fairf view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fairf view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practlce effective from 1 April 2005 which has since been withdrawn. 2.2 Going concern The Trustees are satisfied ther8 are no material uncertainties affecting the Charitrfs 2bilily to continue in operational existence as a going concern for al least a period of 12 months from the date of approval of these financial statements. Accordingly, they continue to adopt the going concem basis in preparing the financial statements. 2.3 Judgements and key sources of estimatlon uncertalnty The preparation of th8 financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other fadors, including expectations of future events that are believed to be reasonable under the circumstances. There are no key sourc8s of estimation uncertainty to report that have a significant risk of causing a material adjustment to the financial ststements. Page 17
ACTION FOUNDATION (A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accountlng pollcles (contlnued) 2.4 Income All income is recognis8d once th8 Charity has entitlement lo the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Voluntary incom8 is accounted for when received by the charity. Grants are included in the Statement of Financial Activities on a receivable basls. The balance of income rec8lV8d for specific purposes but not expended during th8 p8riod is shown in th& relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued. Other Income 1$ recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the servlce. On recelpt, donated profession81 servi8 and facilities are recognlsed on the basis of the value of the gift to the Charity which is the amount il would hav8 b88n willing to pay to obtsin services or facilities of equivalent economic benefit on the open market., a corresponding amount is then recognlsed in expenditure in the period of receipt. 2.5 Expandlture Expenditure is recognised once there is a legal or constructive obligation to transfer economic beneflt to a third party, it is probabl8 that a transfer of 8conomic benefits will be required in settlement and the amount of the obligats'on can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each 8¢tivily. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one actiwty and supporl costs which are not attribuiab18 to a single activity are apportion8d belween those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges alloGated on the portion of the asset'5 use. Exp8ndlture on raising funds includes all expenditure incurred by the Charity to raise funds for Its charitable purposes and includes costs of all fundraising activities events and non-charitable trading. Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs. All expenditur8 is inclusive of irrecoverable VAT. Page 18
ACTION FOUNDATION (A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accountlng pollcles (contlnued) 2.6 Tanglble flxed assets and depreclatlon Tangibl8 fixed assets costing £NIL or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognlsed at cost. After recognition, under the cost modèl, tangible fixed assets are measured at Cost less accumulated depreciation and any accumulated impaimient losse5. All costs incurred to bring a tanglble flxed asset Into Its Intended working conditlon should be included in the measurement of cost. At each reporting date the Charity assesses whether there Is any Indlcation of Impairment. If such indication exists, the recoverable amount of the a55et 15 determined to b8 the higher of ils fair value less costs to sell and its value in us8. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. Depreciation Is charged so as to allocate the cost of tangible fixed assets 18SS their residual value over their estimated useful Ilve5, uslng the straighl-line method. Depreciation is provided on the following base5= Freehold property Offic8 8quipm8nt 20% - 33% Freehold buildings are not depreciated. In view of the planned maintenance programme Ir) place at each property, making an allowance for the estimated cost of the land and the expected residual valuè, the Trustees Gon5ider that any depreciation of the freehold properties be immaterial. 2.7 Debtor5 Trade and other debtors are recognised at the settlement amount after any trade dlscount offered. Prepayments ar8 valu8d at th8 amount prepaid n8t of any trade discounts due. 2.8 Cash at bank and In hand Cash at bank and in hand includes cash and short-lerm highly liquid investments with a short maturity of three months or less from the date of acqui51tion or opening of th8 deposit or similar account. 2.9 Llabllities and provisions Liabilitie5 are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the sett18ment can be estimated reliably. Liabilitie5 are recognised at the amount that the Charity anticipate5 It will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance Cost. Page 19
ACTION FOUNDATION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accountlng pollcles (contlnued) 2.10 Flnanclal Instruments The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recogni5ed at transaction value and subsequently measured al their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effectiv8 int8r6St method. 2.11 Fund accounting General funds are unrestricted funds whlch are available for use at the discr8tion of the Trustees In furtherance of the general objectives of the Charlty and whlch have not been designated for other purposes. Deslgnated funds comprise unreslrlcted funds that have been set aside by the Truslees lor partlcular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. nvestment Income, gains and losses are allocated to the approprlate fund. Page 20
ACTION FOUNDATION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Income from donations, lagaci88 and grants Unrestrlcted Restricted funds funds 2025 2025 Total funds 2025 Donatlons Donations Glft ald Donated servlces Grants 57,043 6,160 143,965 178,124 235,167 6,160 143,965 Comic R81ief Communities CAN Home Office evisa Fund Newcastle City Council Newcastle Fund North East Association of Directors of Adult Social SeNices North of Tyne Combined Authority Platten Family Fund Refugee Aclion South Tyneside Know Your Neighbourhood Fund The Mercers Company The Tuixen Fund Vlrgin Money Foundation Aslan Fund Chlldren In need Clifford Chance Gateshead Council Hospitsl of God Newby Trust Newcastle Law Cent Northumberland Village Homes Trust Fund Proctor and Gamble Northumbria University Paul Hamlyn Screwfix Foundation Sir James Knott Trust Swire Trust The Wellesley Trust The 1989 Willan Charitable Trust The Barbour Foundation 33.750 33,750 10,000 11,299 33,250 24,956 49,000 45,468 10,000 45,201 46,569 35,000 34,000 53,750 2,000 12,000 1,000 9,012 1.000 9.981 4,000 5,000 2,083 4,008 196 8,000 5,000 25,000 10,000 2,500 10,000 10,000 11,299 33,250 24,956 49,000 45,468 10,000 45,201 46,569 35,000 34,000 53.750 2,000 12,000 1,000 9,012 1,000 9.981 4.000 5,000 2.083 4,008 196 8.000 5,000 25,000 10,000 2,500 10.000 Page 21
ACTION FOUNDATION (A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Income from donations,18gacies and grants (continued) Unrestricted Re8trlctad funds funds 2025 2025 Total funds 2025 Other 2,613 2,613 Total 2025 283,310 647,618 930,928 Unreslrict8d funds 2024 Restricted funds 2024 Total funds 2024 Donations Donations Gift Aid Donated facilities and services Grants 81,793 7.033 218,929 81,793 7,033 218,929 The Aurum Charitable Trust Community Foundation Gateshead Council Greatham Hospital The Natlonal Lottery Newcastle City Council Newcastle Fund The North East Law Centre The Paul Hamlyn Foundation Porti¢us Refugee Action Sir James Knott Tuixen Foundation Virgin Money Foundation Wilan TrLSSt Other 35,000 35,000 40.262 11.667 3,000 75,000 13,700 45.000 8,992 44,000 33,313 70.678 10,000 21,250 13,750 7,500 1,917 40.262 11,667 3,000 75,000 13.700 45,000 8,992 44,000 33,313 70,678 10.000 21,250 13.750 7.500 1,917 390, 172 352,612 742, 784 Page 22
ACTION FOUNDATION (A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Income from donatlons, legacies and grants (continued) Included in the above income is a total of £143,965 for donated facilities {2024- £218,929 for donated facilities and seNice5). This amount includes £nil (2024.. £133,447) for volunteer teachers and assistants, time and £143,965 (2024: £85,482) for rent at market value. Volunteer teachers and assistsnts, time is no longer included in services in kind as It Is Judged not to meet the crlterla for recognition as services in kind required by the Charit18s' SORP. Income from charitablo activities Unrestricted Restrfcted funds funds 2025 2025 Total funds 2025 Language and Learning Accommodation Services InterAction 319,909 45,972 441,374 761,283 45,972 365,881 441,374 807,255 Unrestricted funds 2024 Restricted funds 2024 Total funds 2024 Language and Leaming Accommodation Services InterAction 13,132 290,375 45,972 13,132 690,712 45,972 400,337 349.479 40Q,337 749,816 Page 23
ACTION FOUNDATION {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Income from othgr trading activities Income from non charltable tradlng actlvltles Unrestricted funds 2025 Total funds 2025 Total funds 2024 Training income 9.796 9,796 10,890 Other Incomlng re8ourGes Unre8trlcted funds 2025 Total funds 2025 Tot81 funds 2024 other income 2,749 2,749 4,195 Expendlture on ralslng fund$ Costs of ralslng voluntary Income Unrestrlcted funds 2025 Total funds 2025 Tot81 funds 2024 Wages and salaries Employ8rfs NIC Pension costs Fundraising costs 72,666 5,886 4.578 190 72.666 5,886 4,578 190 86.474 7.938 3.236 3.946 Total 2025 83,320 83,320 101,594 Page 24
ACTION FOUNDATION (A Company Llmited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Analysls of oxpendlture on Gharitsble actlvltles Summary by fund type Unrestrfcted Restrlcted funds funds 2025 2025 Total 2025 Language and Learning Accommodation SeNlces InterAction Data Project Young Lives 148.150 400.254 43,310 11,304 24,818 166,425 534,358 129,665 22.346 20,666 314,575 934.612 172.975 33,650 45,484 627,836 873,460 1,501,296 Unrestricted funds 2024 Restricted funds 2024 Total 2024 Languag8 and Leamlng Accommodation Services InterAction Data Project Young Lives 169, 786 336,013 21,744 33, 105 7,671 94,488 455,047 209,446 36,065 21,Q07 264.274 791,060 231, 190 69,170 28,678 568,319 816,053 1,384,372 Page 25
ACTION FOUNDATION (A Company Lirnftad by Guarantee) NOTES TO THE FINANCIAL STATEMEKrs FOR THE YEAR ENDED 31 MARCH 2025 Analysls of •xpendlture by actlvllles Actlvltlos undertaken diractly 2025 Support costs 2025 Total funds 2025 Language and Learning Accommodatlon Services Int8rAction D8ta Project Young Lives 304.449 870.267 161,929 31,809 39,041 10.126 64,345 11,046 1,841 6,443 314,575 934,612 172,975 33.650 45.484 1,407,495 93,801 1,501.296 Activities undertakan dlredly 2024 Support costs 2024 Total funds 2024 Language and Learnlng Accommodation Services InterAction Data Project Young Lives 251,262 750,448 219,808 65. 765 27,266 13,012 40,612 11,382 3,405 1,412 264,274 791,060 231,190 69.ITO 28,678 1,314,549 69,823 1.384,372 Page 26
ACTION FOUNDATION {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Analysis of expendlture by activilie5 (continued) Analys18 of support costs Total funds 2025 Total funds 2024 Premises General Office Conferences & Training Legal & professional fees Trav81 Marketlng & Fundraising Bank charges Loan inter8St Governance 32,483 11,018 2,929 19,733 764 13,005 765 1,750 11,354 20.568 22,946 2,562 9,120 1,344 4,361 576 1.750 6.596 93,801 69.823 Governance costs are recrultment expenses of £2,474 and costs assocSated wlth the preparation and audit of the flnanclal staternents of £8,880. Support costs are allocated beeen charitable activities as set out below,, - Language and Accommodatio Learning n Services Young Data Project Lives 650 2,274 771 205 1,381 53 910 2025 Interaction Total Premises General Office Conferences & Training Legal and professional Travel 3,573 1,212 322 2,171 22,088 7,493 1,992 13,418 520 3,898 1.322 351 2.368 92 1,561 92 32,483 11,018 2,929 19,733 764 220 59 395 Marf(et and Fundraise 1,431 84 8,843 520 260 13,005 765 Bank Charges Loan interest 15 1,750 1,249 1,750 11.354 Governance 7,721 1,362 227 795 Total 2025 Page 27
ACTION FOUNDATION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 10. Auditors. remunoratlon 2025 2Q24 Fees payable to the Charitys auditor for the audit of the Charitys annual accounts 5,950 2,500 Fees payable to the Charitls audSlor In respect of: All non-audit services not included above 1,450 1,150 11. Staff costs 2025 2024 Wag8s and salarles Social security costs Contrlbution to defined contribution pension scheme5 745,269 61,609 47,785 631.577 55,447 37,775 854,663 724, 799 The average number of persons employed by the Charfty durlng the year was as follows: 2025 No. 2024 Employees 30 24 No employee recelved remuneration amounting to more than £60,000 In elther year. Key management personnel comprise the Chief Executive Officer and the two members of the Senior Leadership Team. The employee benefits received by these personnel comprised gross salary and employers, pension contributlon and amounted to £154,998 {2024 £172,947). 12. Trustees, remuneratlon and expenses During the year, no Trustees received any remuneration or other benefit5 (2024 - £NIL). During the year ended 31 March 2025, no Trustee exp8nses have been incurred (2024- £NIL). Page 28
ACTION FOUNDATION (A Company Llmlted by Guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 13. Tanglble fixed assets Freehold propety Office equipment Total Cost or valuatlon At 1 April 2024 Additions 337,000 165.000 16,471 353,471 165,000 At 31 March 2025 502.000 16.471 518,471 Dopreclation At 1 April 2024 Charge for the year 14,037 1,408 14,037 1.408 At 31 March 2025 15,445 15.445 N•t book value At 31 March 2025 502.000 1.026 503,026 At 31 March 2024 337,000 2,434 339,434 14. Debtors 2025 2024 Due wlthin one year Trade debtors other debtors Prepayments and accrued income 19,979 13,881 10,619 5,973 22.021 15,466 44,479 43,460 Page 29
ACTION FOUNDATION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 15. Credltors: knounts falllng due withln one year 2025 2024 Trade credltorg Other tsxation and social securfty Other creditors Accruals and deferred incoma 29,446 18,871 13,554 4,491 73.860 200 21,879 51,525 110.776 16. Cr•dltor¥: Amounts falllng du• aft•r mor• than on• y•ar 2025 2024 Other loans 83,834 82,104 other loans represent a loan from Commonweal Houslng Llmlted which is due for repayTnent in April 2027. The 108n is secured over ane of the properties of the charity and attracts Interest at 2.5% per annum. Page 30
ACTION FOUNDATION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 17. Statement of funds Statement of funds - current year Balan at 31 March 2025 Balance at 1 April 2024 Transfers inlout Income Expenditure Unrestricted funds General Funds- all funds 493,797 661,736 1711,156) 160,000 604,377 Rostrlctod funds Language and Learnlng Accommodation Services InterAction Data Project Young Lives 195,129 637,850 142.492 (162,688 (476,823) 1160,000) (134,078) (25,667) (74.204) 32,441 1,027 8,998 584 25,667 13,333 113.521 52,650 39,584 1,088,992 1873,460) (160,000) 95,116 Total of funds 533.381 1,750,728 (1,584,616) 699,493 A funds Transfer of £160,000 from restrlded lo unrestrlcted funds ar05e on the purchase of a property for which a £160.000 donation had been received in the year. Page 31
ACTION FOUNDATION (A Company Limlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 17. Statement of funds (continued) Statement of funds - prlor year Balance at 31 March 2024 Balance at 1 Aprll 2023 Income Expenditure Unrestrlcted funds General Funds- all funds 408,974 754. 736 (669,913) 493,797 Restrfcted funds Language and Learnlng Accommodation Services InterAction Data Project Young Llves 34,596 12,196 39. 706 16.190 59,892 442,851 170.324 45,542 34,340 (94,488) (455,047) (209,446) (36,065) (21,007) 584 25,867 13,333 102, 688 752,949 (816,053) 39,584 Total of funds 511,662 1,507,685 (1,485,966) 533,381 18. Summary offunds Summary of funds - current year Balance at 31 March 2025 Balance at 1 April 2024 Transfers inlout Income Expenditure General funds Restricted funds 493,797 39,584 661,736 1,088,992 (711,156) 160,000 (873,460) {160,000) 604,377 95.116 533.381 1.750,728 {1,584,616) 699,493 Page 32
ACTION FOUNDATION (A Company Limited by Guarant88 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 18. Summary of funds (continued) Summary of funds - prlor year Balance at 31 March 2024 Balanc8 8t 1 April 2023 Income Expendlture General funds Restrlcted funds 408,974 102,688 754, 736 752,949 (669,913) (816,053) 493, 797 39,584 511.662 1,507,685 (1,485.966) 533.381 19. Analysls of net assets between funds Analysis of net assets between funds - current year Unrastrlcted Restrlcted funds funds 2025 2025 Total funds 2025 Tangible fixed assets Current assets Creditors due within one year Creditors due in more than one y88r 503,026 236,730 (51,525) (83,854) 503,026 331,846 (51,525) {83,854) 95,118 Total 604,377 95,116 699,493 Analysls of n•t assets between funds - prlor year Unrestricted runds 2024 Restricted runds 2024 Total funds 2024 Tangible fixed assets Current ass8ts Creditors due within one year Creditors due in more than one year 339,434 347,243 (110,776) (82, 104) 339,434 386,827 (11Q,776) (82, t04) 39,584 Total 493, 797 39.584 533,381 Page 33
ACTION FOUNDATION (A Company Llmited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 20. ReGoncillatlon of net movement in funds to net cash flow from operatlng activitles 2025 2024 Net income for the year (as per Ststement of Financial Activities) 166,112 21,719 Adjustments for: Depreciation charges Decreasel(increase) in debtors Increasel(decrease) In creditors 1,408 11,019) (57,501) 1,408 10.812 48,337 Net cash providod by operating actlvltles 109,000 82,276 21. Analysis of cash and cash equivalents 2025 2024 Cash in hand 287,367 343,367 Total cash and cash equlvalents 287,367 343.367 22. Analysis of changes In net debt Other non- cash At 31 March Changes 2025 At 1 Aprfl 2024 Cash flows Cash at bank and in hand Debt due after 1 year 343.367 (82,104) (56,000) 287,367 (83,854) (1,750) 261,263 (56,000) (1,750) 203,513 23. Members. Ilablllty Each member of the Charitable Company undertakes to contribute to the assets of the company in the event of it being wound up while he or she is a member, or within one year after they cease to be a member, such amount as may be required, not exc88ding £1 for the debts and liabilities contracted before he or she ceases to be a member. Page 34
ACTION FOUNDATION (A Company Limlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 24. Rolated party transactlons Clty Church Newcastle is a related party as D Lyall Is a Trustee of Actlon Foundation and an Elder at City Church Newcastle. During the year rent was payable to Cty Church Newcastle of £40,799 (2024: £52,221). At the batance sheet dat8 there was no balanc8 du8 to or from Newcastle City Church (2024: £nll). Page 35