Company registration number: 07035903 Charity registration number: 1133293 

## THE CHRONICLE SUNSHINE FUND 

(A company limited by guarantee) 

Annual Report and Financial Statements 

for the Year Ended 30 June 2022 



## **The Chronicle Sunshine Fund** 

## **Contents** 

|Reference and Administrative Details|1|
|---|---|
|Trustees' Report|2 to 10|
|Independent Examiner's Report|11|
|Statement of Financial Activities|12|
|Statement of Financial Activities|13|
|Balance Sheet|14|
|Notes to the Financial Statements|15 to 25|





## **The Chronicle Sunshine Fund** 

## **Reference and Administrative Details** 

**Trustees** Mrs H Dalby, Chair Mrs B E Dean Mr J D Douglas, Deputy Chair Mrs A V Whyte Mr J S Waters Mrs R Bell (resigned 5 September 2022) Mr C Whittington Mrs M Pavlou **Secretary** Mr J S Waters **Charity Director** S Sargeant **Registered Office** NCJ Media Limited Eldon Court, 2nd Floor Percy Street Newcastle upon Tyne NE1 7JB The charity is incorporated in England and Wales. 

**Company Registration Number** 07035903 **Charity Registration Number** 1133293 **Solicitors:** Hay & Kilner The Lumen St James' Boulevard Newcastle Helix Newcastle upon Tyne NE4 5BZ **Bankers** HSBC Grey Street 110 Grey Street Newcastle upon Tyne NE1 6JG **Independent Examiner** Simon Brown BA ACA DChA Independent Examiner Azets Audit Services Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS 

1 



## **The Chronicle Sunshine Fund** 

## **Trustees' Report** 

The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the financial statements of The Chronicle Sunshine Fund (the charitable company) for the year ended 30 June 2022. 

The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company’s governing document and the provisions 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 (FRS 102) (effective 1 January 2019). 

Since the charitable company qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director’s Report) Regulations 2013 is not required. 

## **OBJECTIVES AND ACTIVITIES** 

## _**Policies and objectives**_ 

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. 

The charity’s objectives are to benefit sick or disabled young people up to and including the age of 18 years living in the English Counties of Northumberland, Tyne and Wear, Durham and Cleveland but not limited to: 

- provision of funds or paying for specialist equipment items for beneficiaries where they, those 

- a) with responsibility for them could not otherwise afford those items and where those items are not provided by the NHS, Local authorities or similar public service; 

- providing recreational and leisure time activities in the interest of social welfare with a view to 

- b) improve their conditions of life; and 

- providing support and activities which develop their skills, capabilities to enable them to 

- c) participate in society as mature and responsible individuals. 

Making amendments and expansions of our Memorandum and Articles, which we agreed upon by The Charity Commision, allowed us extend our services beyond equipment provision. As a result of this new addition to our existing charitable purposes, we have amended our Memorandum of Articles in conjunction with Hay and Kilner Law, allowing us to provide whole family, parent and carer and individual support such as pre counselling and befriending services, a families helpline and a series of educational video tutorials. This is an area of growth for us in the future as we continue to add more services which our beneficiaries need. 

2 



## **The Chronicle Sunshine Fund** 

## **Trustees' Report** 

## _**Activities for achieving objectives**_ 

We have a wide variety of activities to ensure we raise the profile of the charity throughout the region. This enables us to generate income for our charitable purposes. 

These activities include: 

- Hosting events; 

- Third party events; 

- Applying to Trusts and Foundations; 

- Fundraising activities including generating income through, community, legacies and corporate streams; 

- Annual appeals 

## _**Specialist equipment policies**_ 

We invite individuals and organisations from the North East of England to request support for us to provide children up to and including 18 years old with specialist equipment. 

The charity’s request procedure must be completed and accompanied by two supporting letters from professionals who know the child and who can explain how they will be helped by receiving the equipment. We also require two quotes for the equipment where possible. This will then be assessed by the committee on a quarterly basis. The committee is made up of some of the trustees together with experienced health professionals with expertise in children’s and young people’s health. 

If successful, the payment is made directly to the supplier for the equipment and delivered to the home address of the child or to the address of the organisation. 

## _**Fundraising disclosures**_ 

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

3 



## **The Chronicle Sunshine Fund** 

## **Trustees' Report** 

## **ACHIEVEMENTS AND PERFORMANCE** 

## _**Review of activities**_ 

Our annual appeals consist of Go Bananas and Christmas. 

We have restructured our team to have full-time resource in Events and a designated part-time role in finance and admin meaning we have now adequate resource to re-establish these events post pandemic and look to introduce new events. Successful fundraising events this year include: Noche del Sol Ball - November 2021 

Successful fundraising events this year include: 

Noche del Sol Ball - November 2021 

UK-based Trek 

Sunshine Run - this attracted over 250 participants 

We have also been able to plan the execution of the Great North Run, Mini/Junior Great North Run and a Mamma Mia Ball plus Question of Sport event for autumn 2022. 

We managed to host a successful ball at a time when other, much larger local charities were unwilling to take the risk/unable to fill the room. We only managed to do this due to the strong corporate partnership we have with St James Square Law firm plus the extensive events experience within the newly restructured and appointed team. 

We planned and executed a successful UK based trek. Having a UK trek with more trekkers allowed us to achieve a greater level of income. 

The Chronicle provides a wide range of significant support to The Chronicle Sunshine Fund, including practical resources in terms of office space and the use of facilities and utilities. In-kind support such as social media training and IT guidance as well as PR opportunities on the ChronicleLive website and in The Chronicle, Journal and Sunday Sun newspapers. These opportunities and exposure to new audiences raise awareness of our charitable aims, help us promote events, generate additional income and share stories of the families we support. 

Several of our planned annual fundraising events scheduled for 2020/21 were cancelled or postponed into 2021/22. 

The Chronicle provides a wide range of significant support to The Chronicle Sunshine Fund, including practical resources in terms of office space and the use of facilities and utilities. In-kind support such as social media training and IT guidance as well as PR opportunities on the ChronicleLive website and in The Chronicle, Journal and Sunday Sun newspapers. These opportunities and exposure to new audiences raise awareness of our charitable aims, help us promote events, generate additional income and share stories of the families we support. 

4 



## **The Chronicle Sunshine Fund** 

## **Trustees' Report** 

During this period, we have maintained pre pandemic levels of equipment provisions despite the challenges and barriers we have faced. We have made awards that may have been granted by other charities who stopped services when we carried on, and all in a time when we have launched new services with great success. We are extremely proud of this. 

We fully integrated In House Trust Fundraising into our fundraising strategy and we have seen considerable success in this area. We now have more robust application, reporting and monitoring Trust Fundraising processes resulting in a more collaborative approach across the team and developing long term relationships with existing and new Trust Funders. We have been successful in securing core funding from Trusts, allowing us to apply for support covering our staff salary and small overhead costs. Our continued focus on and investment in Trust Fundraising means we have achieved success at a time when the wider sector success rates have been impacted. We have developed new programmes to enable us to be more successful with Trust funders such as Family events tackling social isolation and developing family networks. 

We have significantly grown our Sunshine Families platform and now have over 250 active members sharing information, experiences and family offers, creating a safe and private platform for families to converse. 

Digital fundraising continues to be an area of focus for us, and we have continued to grow our social media presence building on the success of our digital strategy and the training carried out for team members in 2020 and 2021. As income generation within the digital fundraising sector continues to change, The Chronicle Sunshine Fund will adapt our approach and programme activity to ensure money can be raised safely. 

Continuing the outreach work started in 2020/21, we launched our first ever youth education and fundraising initiative, Seeds of Hope. The model was based on 15 organisations and we had 31 actually take part. The aim of this campaign was to start conversations at schools, youth groups and community organisations with children and young people around topics such as equality, diversity and acceptance. We worked with primary school staff to design a series of learning resources which we delivered in the form of multimedia workshops and live school assemblies. As a result of developing these relationships, we now have several members signed up to take part in Great North Run and Christmas Jumper Day events for 2022. 

Our outreach services have fully resumed although we continue to deliver family support online and face to face depending upon each family's preference. When family events resumed in 2021 we utilised a Covid-secure model and learnings from this continued into 2022, with each event held in Covid-secure venues/settings following all relevant guidance. We have successfully upskilled team members in Safeguarding and GDPR. 

5 



## **The Chronicle Sunshine Fund** 

## **Trustees' Report** 

## **IMPACT OF COVID 19** 

From March 2020, the team had been operating remotely and this continued for 18 months as our shared office space at the Chronicle’s headquarters in Newcastle was temporarily closed during the pandemic. This office space reopened in autumn 2021, and the team has returned to and implemented a hybrid model of working utilising the office space for meetings and team working on Mondays and for meetings as required. This allows our team to have face to face and creative time within an office environment but also the flexibility to spend more time working remotely in the community. This allows greater flexibility for our team but also enables us to re-establish corporate, community and school relationships post-pandemic. 

We also invested IT equipment and software to make working from home more efficient for our team so that productivity remains high and we have the means to carry on delivering services remotely and are resilient to any future reintroduction of restrictions. Investment was also made in the support system around the new IT infrastructure. 

We continued to work with Trustees to make impactful and significant changes to our operations allowing us to make savings but continue to generate income. Due to the pandemic we were compelled to cancel many of our planned fundraising initiatives and postpone others and despite restrictions ending, the impact has continued into 2022. Many of our loyal corporate supporters, for example those from the hospitality industry, are still struggling financially from the impact of the pandemic, which impacts us in terms of sponsorship, donations and event attendance in the future. Our team is now working to strengthen existing relationships and develop new ones across sectors which have not been as affected by Covid-19. The current health and cost of living crises which have been exacerbated by global events and financial pressures in 2022 have therefore combined to increase applications to the charity for specialist equipment for North East children with disabilities and we can predict that this will continue. Our firm aim and commitment is to raise sufficient funds to ensure we can meet requests even in challenging times and continue our charitable mission. 

## **FINANCIAL REVIEW** 

## _**Going concern**_ 

After making appropriate enquiries, the trustees believe that the charitable company has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. 

## _**Reserves policy**_ 

The Chronicle Sunshine Fund has a reserve policy to maintain free reserves of three months unrestricted running costs. The definition of free reserves accords with the Charity Commission, which are unrestricted reserves excluding those designated and tied up in fixed assets. 

Based on a typical year, the core costs of The Chronicle Sunshine Fund run between £300,000 and £360,000 per annum. This would equate to holding free reserves of between £75,000 and £90,000. 

At the year end the charity had free reserves of £16,424 (2021: £76,283) which is lower than the desired range. As a result the charity continues to host events and to work with funders to attract funding which supports core costs (as well as funding for specific equipment purchases). 

6 



## **The Chronicle Sunshine Fund** 

## **Trustees' Report** 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## _**Constitution**_ 

The charitable company is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 1 October 2009 which has been updated in February 2021. 

The charitable company is constituted under a Memorandum of Association dated 1 October 2009 and is a registered charity number 1133293. 

The principal object of the charitable company is to benefit children and young people with disabilities up to and including the age of 18 years living in the English counties of Northumberland, Tyne & Wear, Durham and Cleveland. 

## _**Method of appointment or election of trustees**_ 

The management of the charitable company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association. 

## _**Policies adopted for the induction and training of trustees**_ 

All Trustees are recruited based on the skills required and the needs of the charity at that point in time and future plans. We also try where possible to ensure a fair gender balance. All Trustees are asked to complete the appropriate checks in line with the Charity Commission guidelines. New Trustees will enjoy a full induction programme including time in the office with staff experiencing the organisation first hand and thereafter be assigned an area of responsibility depending on their expertise. All procedures are in line with the Charity Commission guidelines. 

## _**Organisational structure and decision making**_ 

The Trustees manage the business of the charity as per Article 23 of the Articles of Association together with the Charity Director. 

7 



## **The Chronicle Sunshine Fund** 

## **Trustees' Report** 

## _**Risk management**_ 

The Trustees have assessed the major risks to which the charitable company is exposed, in particular those related to the operations and finances of the charitable company, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks. 

We implemented several measures to support the charity's continued stable operation during periods of lockdown restrictions and impact caused by the pandemic. These measures were focused on ensuring a framework was in place for regular, dynamic assessment of the risks to the operation of our organisation and/or to our planned activities. Recognising the fluidity of the situation, and elements beyond our control such as the lifting/imposing of restrictions, we quickly implemented a weekly cash flow management process whereby cash flow was projected, assessed, reviewed and shared with trustees for comment on a week-by-week basis so that rapidly changing circumstances could be adapted to swiftly. We have retained and continued this regular cash flow forecasting approach even after restrictions have been lifted as we continue to monitor our financial challenges closely. 

We also increased the frequency of Trustee meetings, held virtually, to monthly during the period of greatest impact of the pandemic. This enabled us to retain fluidity in our decision-making while providing staff with additional regular support and guidance from Trustees. While Trustee meetings have resumed as quarterly since restrictions eased, we have implemented a monthly senior team face-to-face with the chair, deputy chair and charity director at which key risks and their impact can be assessed, decisions can be made and appropriate support given 

8 



## **The Chronicle Sunshine Fund** 

## **Trustees' Report** 

## _**Future developments**_ 

The Covid-19 Pandemic meant that we were forced to make significant changes to the operations of The Chronicle Sunshine Fund, and despite restrictions ending in 2022 the this impact continues to be felt, but so too does the creative thinking we have applied to the challenges we have faced, and our ability to review our circumstances with fluidity and make decisions quickly. As a charity which has historically relied on corporate and mass participation events for income generation, we had to make drastic changes to our fundraising model almost overnight. In June 2022 Trustees and the Charity Director held a strategic review meeting and work by the Charity Director is ongoing to plan our future organisational structure and allocation of core responsibilities among the team. This review is intended to ensure we can improve our focus on corporate partnerships and sponsorship opportunities to generate income, and to explore commercial partnership opportunities utilising the skill set of the team. 

We were able to resume our Outreach Programme and new support services in 2021 in a Covid-secure way and our ability to utilise virtual events and support sessions, and hosting and attending Covid-safe income generation events and meetings, has continued and ensures we have a level of resilience to any future waves. As restrictions were lifted, we resumed family events and hosted our annual ball in November 2021 and 2022 has seen us return to a successful programme of events during spring and summer, with our flagship ball and Question of Sport event planned for autumn and sponsorship secured. We also look to host a new event in December 2022 as we continue to work to creatively to expand our portfolio of events in order to offset those which were unable to go ahead due to coronavirus restrictions still in place at the start of 2022, such as Glass Slipper. The Chronicle Sunshine Fund has experienced a significant rise in applications for equipment, enquiries to the charity for future applications and advice, and the 2022 cost of living crisis has exacerbated this. 

We are a founding member of the CANN (Children Action Network Newcastle) and we now attend Children Health Wellbeing Network events and meetings with regional NHS teams, CCG members and other support organisations. We look to work more collaboratively with other charities on joint funding proposals and projects and are developing relationships with regional charities. 

We are proud that the equipment we have provided to babies, children and young adults in a variety of settings continues to have life-changing effects. Many items donated to schools and organisations also have a legacy effect as they are used for many years by different children who can benefit from them. We continue to work with beneficiaries to ensure our charity meets their needs and that they are the driving force behind any changes we seek to make in the future. 

9 



## **The Chronicle Sunshine Fund** 

## **Trustees' Report** 

## **Statement of Trustees' Responsibilities** 

The trustees (who are also the directors of The Chronicle Sunshine Fund for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. 

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. 

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

## **Reappointment of independent examiner** 

Azets Audit Services Limited, trading as Azets Audit Services, were appointed Independent Examination to the company following their acquisition of the trade of Tait Walker LLP, trading as MHA Tait Walker, on 1 May 2022. 

A resolution to re-appoint Simon Brown BA ACA DChA of Azets Audit Services as independent examiner for the ensuring year will be proposed at the Annual General Meeting. 

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


**----- Start of picture text -----**<br>
.........................................<br>**----- End of picture text -----**<br>


......................................... Mrs H Dalby Trustee 

10 



## **The Chronicle Sunshine Fund** 

## **Independent Examiner's Report to the trustees of The Chronicle Sunshine Fund ("the Company")** 

I report to the charity trustees on my examination of the accounts of the Company for the year ended 30 June 2022. 

## **Responsibilities and basis of report** 

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

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

## **Independent examiner’s statement** 

Since The Chronicle Sunshine Fund's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies. 

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

1. accounting records were not kept in respect of The Chronicle Sunshine Fund as required by section 386 of the 2006 Act; or 

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

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

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

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

...................................... Simon Brown BA ACA DChA Azets Audit Services Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS Date:............................. 

Azets Audit Services is a trading name of Azet Audit Services Limited. 

11 



## **The Chronicle Sunshine Fund** 

## **Statement of Financial Activities for the Year Ended 30 June 2022 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)** 

|**Note**<br>**Income and Endowments from:**<br>Donations and legacies<br>3<br>Income from fundraising<br>events<br>4<br>Other income<br>5<br>Total Income<br>**Expenditure on:**<br>Raising funds<br>6<br>Charitable activities<br>7<br>Total Expenditure<br>Net (expenditure)/income<br>Net movement in funds<br>**Reconciliation of funds**<br>Total funds brought forward<br>Total funds carried forward<br>16|**Unrestricted**<br>**£**<br>36,110<br>143,543<br>(10)<br>179,643<br>(123,267)<br>(116,235)<br>(239,502)<br>(59,859)<br>(59,859)<br>76,283<br>16,424|**Restricted**<br>**£**<br>81,655<br>-<br>-<br>81,655<br>-<br>(70,647)<br>(70,647)<br>11,008<br>11,008<br>2,194<br>13,202|**Total**<br>**2022**<br>**£**<br>117,765<br>143,543<br>(10)<br>261,298<br>(123,267)<br>(186,882)<br>(310,149)<br>(48,851)<br>(48,851)<br>78,477<br>29,626|**Total**<br>**2021**<br>**£**<br>228,414<br>51,484<br>38,249|
|---|---|---|---|---|
|||||318,147|
|||||(101,402)<br>(218,801)|
|||||(320,203)|
|||||(2,056)|
|||||(2,056)<br>80,533|
|||||78,477|



All of the charity's activities derive from continuing operations during the above two periods. 

12 



## **The Chronicle Sunshine Fund** 

## **Comparative Statement of Financial Activities for the Year Ended 30 June 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)** 

|**Note**<br>**Income and Endowments from:**<br>Donations and legacies<br>3<br>Income from fundraising events<br>4<br>Other income<br>5<br>Total income<br>**Expenditure on:**<br>Raising funds<br>6<br>Charitable activities<br>7<br>Total expenditure<br>Net (expenditure)/income<br>Net movement in funds<br>**Reconciliation of funds**<br>Total funds brought forward<br>Total funds carried forward<br>16|**Unrestricted**<br>**£**<br>75,980<br>51,484<br>38,249<br>165,713<br>(101,402)<br>(68,561)<br>(169,963)<br>(4,250)<br>(4,250)<br>80,533<br>76,283|**Restricted**<br>**£**<br>152,434<br>-<br>-<br>152,434<br>-<br>(150,240)<br>(150,240)<br>2,194<br>2,194<br>-<br>2,194|**Total**<br>**2021**<br>**£**<br>228,414<br>51,484<br>38,249|
|---|---|---|---|
||||318,147|
||||(101,402)<br>(218,801)|
||||(320,203)|
||||(2,056)|
||||(2,056)<br>80,533|
||||78,477|



13 



## **The Chronicle Sunshine Fund** 

## **(Registration number: 07035903) Balance Sheet as at 30 June 2022** 

|**(Registration number: 07035903)**<br>**Balance Sheet as at 30 June 2022**|||
|---|---|---|
|**Note**<br>**Current assets**<br>Debtors<br>13<br>Cash at bank and in hand<br>**Creditors: Amounts falling due within one year**<br>14<br>**Net assets**<br>**Funds of the charity:**<br>**Restricted**<br>**Unrestricted income funds**<br>Unrestricted funds<br>**Total funds**<br>16|**2022**<br>**£**<br>10,618<br>44,204<br>54,822<br>(25,196)<br>29,626<br>13,202<br>16,424<br>29,626|**2021**<br>**£**<br>6,314<br>82,147|
|||88,461<br>(9,984)|
|||78,477|
|||2,194<br>76,283|
|||78,477|



For the financial year ending 30 June 2022 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. 

Directors' responsibilities: 

- The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and 

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. 

The financial statements on pages 12 to 25 were approved by the trustees, and authorised for issue on .................... and signed on their behalf by: 

......................................... 

Mrs H Dalby Trustee 

14 



## **The Chronicle Sunshine Fund** 

## **Notes to the Financial Statements for the Year Ended 30 June 2022** 

## **1 Charity status** 

The charity is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £10 towards the assets of the charity in the event of liquidation. 

The address of its registered office is: NCJ Media Limited, Eldon Court, 2nd Floor, Percy Street, Newcastle upon Tyne, NE1 7JB 

## **2 Accounting policies** 

## **Summary of significant accounting policies and key accounting estimates** 

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

## **Statement of compliance** 

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) Section 1A. They also comply with the Companies Act 2006 and Charities Act 2011. 

## **Basis of preparation** 

The Chronicle Sunshine Fund meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. 

The financial statements are prepared in sterling which is the functional currency of the entity. 

## **Going concern** 

At the year ended March 2022 the balance sheet showed net assets of £29,626. This includes creditors of £25,196 due to the timing of events, where monies has been received in advance.The trustees have considered the financial position in light of the forecast prepared and likely changes in trading performance and on conclusion of this work, given the strong cash balance, consider that there are no material uncertainties about the charity's ability to continue as a going concern. 

## **Exemption from preparing a cash flow statement** 

The charity opted to adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements. 

15 



## **The Chronicle Sunshine Fund** 

## **Notes to the Financial Statements for the Year Ended 30 June 2022** 

## **Estimation uncertainty and judgements** 

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

There are considered to be no significant judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies which effect the amounts recognised in the financial statements. 

## **Income and endowments** 

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably. Events where tickets are purchased in advance are only recognised as income when the event takes place, given that monies are refunded in the event of a cancellation. 

## _**Donations and legacies**_ 

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period. 

Legacy gifts are recognised on a case by case basis following the grant of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity. 

## **Expenditure** 

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

## _**Raising funds**_ 

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds. 

## _**Charitable activities**_ 

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

16 



## **The Chronicle Sunshine Fund** 

## **Notes to the Financial Statements for the Year Ended 30 June 2022** 

## **Support costs** 

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

## **Governance costs** 

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

## **Taxation** 

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

## **Trade debtors** 

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

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

## **Cash and cash equivalents** 

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

## **Trade creditors** 

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

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

## **Fund structure** 

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

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose. 

## **Pensions and other post retirement obligations** 

The charity supports personal pension plans taken out by employees. Contributions are charges to the income and expenditure account as they become payable. 

17 



## **The Chronicle Sunshine Fund** 

## **Notes to the Financial Statements for the Year Ended 30 June 2022** 

## **3 Income from donations and legacies** 

|**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>Donations and legacies;<br>Charitable trust and foundation<br>donations<br>14,479<br>General donations<br>7,275<br>Legacies<br>5,000<br>Community Foundation<br>endowment dividends grants<br>9,356<br>Total for 2022<br>36,110<br>Total for 2021<br>75,980<br>**4**<br>**Income from other trading activities**<br>**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>Appeals<br>7,613<br>Community fundraising<br>108,552<br>Lotteries and competitions<br>income<br>1,829<br>Corporate fundraising<br>25,549<br>Total for 2022<br>143,543<br>Total for 2021<br>51,484<br>**5**<br>**Other income**<br>**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>Government grants<br>-<br>HMRC refund<br>(10)<br>Total for 2022<br>(10)|**Restricted**<br>**funds**<br>**£**<br>81,655<br>-<br>-<br>-<br>81,655<br>152,434<br>**Restricted**<br>**funds**<br>**£**<br>-<br>-<br>-<br>-<br>-<br>-<br>**Restricted**<br>**funds**<br>**£**<br>-<br>-<br>-|**Total**<br>**2022**<br>**£**<br>96,134<br>7,275<br>5,000<br>9,356<br>117,765<br>228,414<br>**Total**<br>**funds**<br>**£**<br>7,613<br>108,552<br>1,829<br>25,549<br>143,543<br>51,484<br>**Total**<br>**2022**<br>**£**<br>-<br>(10)<br>(10)|**Total**<br>**2021**<br>**£**<br>215,918<br>2,500<br>-<br>9,996|
|---|---|---|---|
||||228,414|
||||**Total**<br>**2021**<br>**£**<br>18,245<br>23,266<br>1,418<br>8,555|
||||51,484|
||||**Total**<br>**2021**<br>**£**<br>26,553<br>11,696|
||||38,249|



18 



## **The Chronicle Sunshine Fund** 

## **Notes to the Financial Statements for the Year Ended 30 June 2022** 

## **6 Expenditure on raising funds** 

## **a) Costs of generating donations and legacies** 

|Wages and salaries<br>Events direct costs<br>Insurance<br>Trade subscriptions<br>Sundry expenses<br>Travel and subsistence<br>Legal and professional fees<br>Bank charges<br>Printing, postage and stationery<br>Support costs<br>**Support costs**<br>Insurance<br>Trade subscriptions<br>Sundry expenses<br>Travel and subsistence<br>Consultancy fees<br>Legal and professional fees<br>Bank charges<br>Printing, postage and stationery<br>Licenses<br>Wages and salaries|**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>37,928<br>26,415<br>1,755<br>933<br>580<br>3,693<br>635<br>257<br>152<br>50,916<br>123,264<br>**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>312<br>166<br>103<br>659<br>-<br>112<br>46<br>27<br>20<br>49,471<br>50,916|**Total**<br>**2022**<br>**£**<br>37,928<br>26,415<br>1,755<br>933<br>580<br>3,693<br>635<br>257<br>152<br>50,916<br>123,264<br>**Total**<br>**2022**<br>**£**<br>312<br>166<br>103<br>659<br>-<br>112<br>46<br>27<br>20<br>49,471<br>50,916|**Total**<br>**2021**<br>**£**<br>68,145<br>8,730<br>1,572<br>542<br>-<br>62<br>591<br>219<br>610<br>20,931|
|---|---|---|---|
||||101,402|
||||**Total**<br>**2021**<br>**£**<br>281<br>96<br>-<br>11<br>1,283<br>105<br>39<br>780<br>20<br>18,316|
||||20,931|



19 



## **The Chronicle Sunshine Fund** 

## **Notes to the Financial Statements for the Year Ended 30 June 2022** 

## **7 Expenditure on charitable activities** 

|Grant funding of activities<br>Allocated support costs<br>Grant funding of activities<br>Allocated support costs|**Unrestricted**<br>**General**<br>**funds**<br>**£**<br>54,535<br>61,700<br>116,235<br>**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>2,982<br>65,579<br>68,561|**Restricted**<br>**funds**<br>**£**<br>70,647<br>-<br>70,647<br>**Restricted**<br>**funds**<br>**£**<br>150,240<br>-<br>150,240|**Total**<br>**2022**<br>**£**<br>125,182<br>61,700|
|---|---|---|---|
||||186,882|
||||**Total**<br>**2021**<br>**£**<br>153,222<br>65,579|
||||218,801|



20 



## **The Chronicle Sunshine Fund** 

## **Notes to the Financial Statements for the Year Ended 30 June 2022** 

In addition to the expenditure analysed above, there are also governance costs of £45,821 (2021 - £20,931) which relate directly to charitable activities. See note 8 for further details. 

## **8 Analysis of governance and support costs Allocated support costs** 

|Insurance<br>Trade subscriptions<br>Sundry expenses<br>Travel and subsistence<br>Accountancy & Independent Examination fee<br>Legal and professional fees<br>Bank charges<br>Printing, postage and stationery<br>Wages and salaries|**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>1,832<br>974<br>605<br>3,855<br>3,000<br>1,535<br>269<br>159<br>49,471<br>61,700|**Total**<br>**2022**<br>**£**<br>1,832<br>974<br>605<br>3,855<br>3,000<br>1,535<br>269<br>159<br>49,471<br>61,700|**Total**<br>**2021**<br>**£**<br>1,641<br>566<br>-<br>64<br>3,000<br>619<br>229<br>639<br>58,821|
|---|---|---|---|
||||65,579|



## **9 Trustees remuneration and expenses** 

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

21 



## **The Chronicle Sunshine Fund** 

## **Notes to the Financial Statements for the Year Ended 30 June 2022** 

## **10 Staff costs** 

The aggregate payroll costs were as follows: 

|**Staff costs during the year were:**<br>Wages and salaries<br>Social security costs<br>Pension costs|**2022**<br>**£**<br>138,250<br>12,423<br>5,237<br>155,910|**2021**<br>**£**<br>125,362<br>14,906<br>5,014|
|---|---|---|
|||145,282|



The monthly average number of persons (including senior management team) employed by the charity during the year was as follows: 

|**2022**||**2021**||
|---|---|---|---|
|**No**||**No**||
||7||5|



No employee received emoluments of more than £60,000 during the year. 

The Trustees consider key management personnel to be the Trustees and Senior Management of the charity. 

The total employee benefits of the key management personnel (as distinct from Trustees who are volunteers) of the charity were £51,153 (2021 - £47,949). 

## **11 Independent examiner's remuneration** 

|||**2022**|**2021**|
|---|---|---|---|
|||**£**|**£**|
|Examination|of the financial statements|2,500|2,500|



## **12 Taxation** 

The charity is exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. 

## **13 Debtors** 

|**13 Debtors**|||
|---|---|---|
|Trade debtors<br>Prepayments|**2022**<br>**£**<br>4,660<br>5,958<br>10,618|**2021**<br>**£**<br>1,000<br>5,314|
|||6,314|



22 



## **The Chronicle Sunshine Fund** 

## **Notes to the Financial Statements for the Year Ended 30 June 2022** 

## **14 Creditors: amounts falling due within one year** 

|**14 Creditors: amounts falling due within one year**|||
|---|---|---|
|Other taxation and social security<br>Accruals and Deferred Income<br>Deferred income at 1 July 2021<br>Resources deferred in the period<br>Amounts released from previous periods<br>Deferred income at year end|**2022**<br>**£**<br>2,194<br>23,002<br>25,196<br>**2022**<br>**£**<br>4,000<br>23,002<br>(4,000)<br>23,002|**2021**<br>**£**<br>2,984<br>7,000|
|||9,984|
|||**2021**<br>**£**<br>-<br>4,000<br>-|
|||4,000|



## **15 Pension and other schemes** 

## **Defined contribution pension scheme** 

The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £5,237 (2021: £5,014). 

23 



## **The Chronicle Sunshine Fund** 

## **Notes to the Financial Statements for the Year Ended 30 June 2022** 

## **16 Funds** 

|**Unrestricted funds**<br>**_General_**<br>General funds<br>**Restricted funds**<br>Restricted fund<br>**Total funds**<br>**Unrestricted funds**<br>General<br>**Restricted funds**<br>**Total funds**|**Balance at 1**<br>**July 2021**<br>**£**<br>76,283<br>2,194<br>78,477<br>**Balance at 1**<br>**July 2020**<br>**£**<br>80,533<br>-<br>80,533|**Incoming**<br>**resources**<br>**£**<br>179,643<br>81,655<br>261,298<br>**Incoming**<br>**resources**<br>**£**<br>165,713<br>152,434<br>318,147|**Resources**<br>**expended**<br>**£**<br>(239,502)<br>(70,647)<br>(310,149)<br>**Resources**<br>**expended**<br>**£**<br>(169,963)<br>(150,240)<br>(320,203)|**Balance at 30**<br>**June 2022**<br>**£**<br>16,424<br>13,202|
|---|---|---|---|---|
|||||29,626|
|||||**Balance at 30**<br>**June 2021**<br>**£**<br>76,283<br>2,194|
|||||78,477|



The specific purposes for which the funds are to be applied are as follows: 

Restricted funds have been received by the Charity from funders for ICT equipment, trikes and bikes and other equipment. 

24 



## **The Chronicle Sunshine Fund** 

## **Notes to the Financial Statements for the Year Ended 30 June 2022** 

## **17 Analysis of net assets between funds** 

|**17 Analysis of net assets between funds**||||
|---|---|---|---|
|Net current assets/(liabilities)<br>Net current assets/(liabilities)|**Unrestricted**<br>**General**<br>**£**<br>16,424<br>**Unrestricted**<br>**General**<br>**£**<br>76,283|**Restricted**<br>**£**<br>13,202<br>**Restricted**<br>**£**<br>2,194|**Total funds**<br>**£**<br>29,626|
||||**Total funds**<br>**at 30 June**<br>**2021**<br>**£**<br>78,477|



## **18 Related party transactions** 

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

## **Hay & Kilner LLP** 

Hay & Kilner LLP is a related party by virtue of a Trustee being an LLP member. During the period donations received of £2,373 (2021: £nil) were received. At the balance sheet date the amount due from Hay & Kilner LLP was £Nil (2021 - £Nil). 

25