**Company Registration Number: 07180982 Charity Registration Number: 1135126**
## **The Wm Morrison Darlington Enterprise Trust Financial Statements For the Year Ending 31 March 2021**
## **ALLEN SYKES LTD**
Chartered Accountants & Statutory auditor
5 Henson Close South Church Enterprise Park Bishop Auckland County Durham DL14 6WA
## **The Wm Morrison Darlington Enterprise Trust**
## **Financial Statements**
## **Year Ended 31 March 2021**
||**Page**|
|---|---|
|Trustees' Annual Report (Incorporating the Directors’ Report)|**1**|
|Independent Auditor's Report to the Members|**11**|
|Statement of Financial Activities (Including Income and Expenditure Account)|**17**|
|Statement of Financial Position|**18**|
|Statement of Cash Flows|**19**|
|Notes to the Financial Statements|**20**|
|**The Following Pages Do Not Form Part of the Financial Statements**||
|Detailed Statement of Financial Activities|**35**|
## **The Wm Morrison Darlington Enterprise Trust**
## **Trustees' Annual Report (Incorporating the Directors’ Report)**
## **Year Ended 31 March 2021**
The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 March 2021.
## **Objectives and Activities**
## **Objects of the Trust**
The objects of the Trust are:
- the relief of poverty among all members of the community but in particular members who are unemployed or are at risk of being unemployed or those less able than others to care for themselves.
- the general advancement of the education of the public including in particular (though without prejudice to the generality of the foregoing words) the fostering and promotion of teaching and training in the skills of business management particularly in relation to small businesses among persons whose economic circumstances would be alleviated or improved by the acquisition of such skills.
## **Objectives of the year**
The key objectives of the year were to secure funding to enable the Trust to deliver identified projects to support priority target groups, which are: people who live in disadvantaged areas; those who are on health related benefits; disabled people; those experiencing homelessness; young people.
**- 1 -**
**The Wm Morrison Darlington Enterprise Trust**
## **Trustees' Annual Report (Incorporating the Directors’ Report)** _**(continued)**_
## **Year Ended 31 March 2021**
## **Achievements and Performance**
## **Youth Employment Initiative (YEI)**
A contract to deliver as a partner organisation in the Youth Employment Initiative 'Tees Valley Pathways' programme was secured, starting delivery in April 2016. The programme is co-ordinated by Hartlepool Borough Council and was to originally operate across the Tees Valley between April 2016 and July 2018, however the programme was extended from September 2018 to July 2022. The Tees Valley Pathways Programme is part-funded by the European Social Fund and supported under the Youth Employment Initiative. The programme aims to support young people across the Tees Valley aged 15-29 who are unemployed and / or not in education, employment or training. Morrison Trust is part of a partnership of organisations delivering services across the Tees Valley. The programme includes a range of outcomes, with a target of providing support for 165 beneficiaries; at the end of March 2021, 216 beneficiaries have been supported.
## **Step Forward Tees Valley (SFTV)**
A contract to deliver as a partner organisation in the Step Forward Tees Valley programme was secured, starting delivery in October 2016. The programme operates across the Tees Valley and support is primarily given to people who are long-term unemployed, facing two or more barriers. Step Forward Tees Valley is funded by the European Social Fund and The National Lottery Community Fund. Humankind are co-ordinating the programme and working in partnership with voluntary and community sector organisations.
Morrison Trust employs an Employment Consultant to provide support to beneficiaries. As at the end of March 2021, over 371 participants have been supported with a range of personal development and employability skills provision.
## **Sport England**
Grant funding was received from Sport England's Tackling Inactivity and Economic Disadvantage programme (TIED). The funding is aimed at supporting people in low socio-economic groups to get active and was awarded to projects delivering in disadvantaged communities around the country. Morrison Trust is working in partnership with another charity, Active Life Foundation, to provide activities in target communities across Darlington through the 'Step Out' project. The two year project started in October 2018 but delivery was paused due to Covid-19 restrictions. The programme includes a range of outcomes, with a target of providing support for 300 participants; at the end of March 2021, 293 participants have been supported.
## **The Henry Smith Charity**
Funding was secured from The Henry Smith Charity, through the Community Foundation (serving Tyne & Wear and Northumberland), for a three year programme ('Choices') to support people to address barriers to employment, to increase self-confidence, improve employability skills and move towards employment. The Choices project started in July 2018 and to the end of March 2021, the project has supported 101 individuals, with 32 moving into employment.
## **Garfield Weston Foundation**
A grant was received from the Garfield Weston Foundation to cover core costs of community development work; the funding contributes to core costs including delivery of employability support to individuals.
**The Wellesley Trust at the Community Foundation serving Tyne & Wear and Northumberland** A grant was received from The Wellesley Trust at the Community Foundation serving Tyne & Wear and Northumberland, for a three year programme from March 2018, to support care leavers, aged 16 to 21 years old, who are not in education, training or employment, to gain skills and move towards employment, education or training. To the end of March 2021, the Care Leavers Job Club project supported 26 young people, with 22 moving into education, employment, apprenticeships or volunteering.
**- 2 -**
## **The Wm Morrison Darlington Enterprise Trust**
## **Trustees' Annual Report (Incorporating the Directors’ Report)** _**(continued)**_
## **Year Ended 31 March 2021**
**Government's Coronavirus Community Support Fund, distributed by The National Lottery Community Fund** A grant was received from the Government's Coronavirus Community Support Fund, distributed by The National Lottery Community Fund. The funding allowed provision of a project to support people who were out of work or had lost their job as a result of the pandemic. Support included one to one employability and access to training and skills. The funding also supported Conference Centre costs associated with the impact of Covid-19. To the end of March 2021, (including with the 'extension' funding via Warburtons and Charities Aid Foundation) the project supported 35 people, with 19 moving into employment / education / training / apprenticeship).
**County Durham Community Foundation working in partnership with Darlington Borough Council** A grant was received from County Durham Community Foundation working in partnership with Darlington Borough Council for costs associated with Covid-19. The funding allowed the purchase of necessary equipment and for relevant guidance and procedures to be put in place in order to facilitate re-opening the premises when able to do so.
## **NHS Health Improvement Fund (via County Durham Community Foundation)**
A grant was received from the NHS Health Improvement Fund (via County Durham Community Foundation) towards costs of delivering a Men's IT Shed. The project builds on previous funding received and provides costs to employ an Employment Consultant to support the group. The project is currently on hold due to Covid-19 restrictions.
## **Skerne Park Community Enterprise Association**
Morrison Trust continues to maintain a strategic link with Skerne Park Community Enterprise Association which is a community based group providing nursery facilities to families living in and around the Skerne Park estate in Darlington. Support provided includes strategic support, line management, HR and financial support.
## **SFTV room hire**
The management team for the Step Forward Tees Valley programme utilise space at Morton Park Conference Centre.
## **Morton Park Conference Centre facilities**
The Trust has continued to provide training and conference facilities to a range of public, private and voluntary sector organisations. There has been a significant reduction in income due to restrictions resulting from Covid-19.
## **System Training**
We have retained accredited centre status with Highfield, allowing us to provide qualifications accredited via Highfield Qualifications.
We secured a contract from System Training to deliver a range of accredited qualifications as a sub-contractor to System Training, delivering as part of the TVCA Combined Authority Adult Education Budget programme. To the end of March 2021, we have supported 79 participants to gain 101 qualifications.
## **Warburtons and Charities Aid Foundation**
A grant was received from Warburtons (Covid grants). The grant allowed an extension to a project that was initially established through a grant from National Lottery Emergency Support Fund which allowed us to support people who were out of work or had lost their job as a result of the pandemic. The additional Warburtons funding meant we were able to provide support over a longer period of time (approximately 2 months).
## **The Shears Foundation**
A grant was received from The Shears Foundation to support the costs of sustaining the Conference Centre as a result of the Covid-19 pandemic.
**- 3 -**
## **The Wm Morrison Darlington Enterprise Trust**
## **Trustees' Annual Report (Incorporating the Directors’ Report)** _**(continued)**_
## **Year Ended 31 March 2021**
## **Related Parties**
The Trust recognises the importance of partnership working in delivering effective services to our identified client groups and ensures our representation on key strategic groups.
The Trust works in partnership with a range of key local organisations, including: Skerne Park Community Enterprise Association, Darlington Credit Union, FirstStop Darlington, YMCA Tees Valley, Adult and Community Learning (Darlington Borough Council), and Darlington Citizens Advice.
## **Financial Review**
The Statement of Financial Activities for the year is set out on page 17.
## **Income**
The total income for the year is £401,797 (2020 - £570,768).
## **Income from charitable activities**
Movements in income occur where a funding stream has ceased and additional funding has been secured from other sources. New funding secured is also shown within this section.
## **Expenditure**
Further information on expenditure is contained in the notes to the financial statements on pages 25 to 27.
## **Performance during the period**
The charity has income of £401,797 (2020 - £570,768) and expenditure of £415,260 (2020 - £574,137) during the period in line with the charity's objectives.
The deficit for the year amounted to £13,463 (2020 - £3,369). The accumulated funds available for future expenditure amounted to £218,720 (2020 - £232,183) at 31 March 2021.
## **Investment Policy**
The Trustees have the power to invest any money held by the Trust in any way in which they in their discretion think fit in any part of the world.
Currently the Trust assets are held with the Unity Trust Bank, The Hampshire Trust Bank and Virgin Money.
## **Reserves Policy**
As the Trust is reliant on contracts and grants for funding, the Trustees have determined to maintain reserves of at least six months' expenditure on unrestricted funds plus closure costs in order to be able to make the appropriate level of commitment.
At the year end, free reserves amounted to £171,481 (2020 - £211,370), which is in line with the Trust's reserves policy.
**- 4 -**
## **The Wm Morrison Darlington Enterprise Trust**
## **Trustees' Annual Report (Incorporating the Directors’ Report)** _**(continued)**_
## **Year Ended 31 March 2021**
## **Future funding**
During the coming 12 months, we will work towards successfully delivering existing contracts and grant funded programmes, including: Tees Valley Pathways (Youth Employment Initiative), Step Forward Tees Valley, Step Out (Sport England), Choices (The Henry Smith Charity), Care Leavers Job Club (The Wellesley Trust at the Community Foundation service Tyne & Wear and Northumberland), Men's IT Shed (NHS Health Improvement Fund, via Co. Durham Community Foundation), Level 2 training (Systems Training).
We will aim to secure funding to meet the needs of beneficiaries following programmes that will come to an end in 2021 (Step Out, Choices, Care Leavers Job Club and System training.)
## **Plans for Future Periods**
Key objectives during the coming financial year are:
To maintain a strong profile within Darlington and retain financial stability during challenging economic times.
To successfully deliver key programmes including the Youth Employment Initiative and Step Forward Tees Valley.
To maintain involvement in key strategic initiatives within Darlington.
To ensure that all Trust projects work effectively within the current economic circumstances and work towards achieving project targets.
To remain responsive to additional opportunities which become available during the year.
**- 5 -**
## **The Wm Morrison Darlington Enterprise Trust**
## **Trustees' Annual Report (Incorporating the Directors’ Report)** _**(continued)**_
## **Year Ended 31 March 2021**
## **Structure, Governance and Management**
The charity was incorporated as a limited company on 6th March 2010 with company number 07180982 and was registered as a charity on 23rd March 2010 with charity number 1135126. The charity is governed by its Memorandum and Articles of Association (the "Constitution") dated 6th March 2010.
On 6 April 2010 the charity received the assets, liabilities and activities of the unincorporated charity of the same name with charity number 327040.
## **Governance**
The Trust is governed in accordance with the objectives as set out within the Deed of Trust and detailed under the section "objectives and activities". The statutory provision about the appointment, retirement and discharge of Trustees applies to the Trust.
The Trust has a formalised recruitment process for Trustees, which includes outlining eligibility criteria, Trustee legal responsibilities, person specification and a formalised induction process.
## **Induction and role of Trustees**
All new Trustees will be given copies of the person specification and job description in relation to Trustee appointment. They will also receive a copy of the Trust deed, the latest set of accounts and copies of minutes from previous Trustee meetings. Each Trustee is given comprehensive information on previous and current projects and activities. Their duties and responsibilities are outlined to them, including their legal responsibilities.
Following their appointment they will also be asked to complete the register of interest, if applicable, which will then be reviewed on an ongoing basis. Trustees are also checked against the relevant registers to ensure they are not disqualified by law from acting as Trustees. They will also be required to undertake a Disclosure and Barring Service Check.
The Trustees in office during the period are set out on page 8. The Trustees meet quarterly and are responsible for establishing clear strategic goals for the Trust. They oversee all Trust activity including:
Recruitment and staffing Financial management Quality Legal issues Target setting Project evaluation Public relations Governance / constitutional issues Information technology Information technology security Protection of customer data
**- 6 -**
## **The Wm Morrison Darlington Enterprise Trust**
## **Trustees' Annual Report (Incorporating the Directors’ Report)** _**(continued)**_
## **Year Ended 31 March 2021**
The Chief Executive and individual Trustees bring different skills and knowledge to Trustee meetings. Where specific areas of knowledge / legislation are required in relation to the Trust, a decision would be made at a meeting as to whether the Chief Executive or a Trustee would source such information. The information would then be explained at a Trustee meeting. As a result, Trustees are kept up to date with current legislation in relation to the Trust e.g.: matters appertaining to employment, health and safety, VAT etc.
The Trustees are fully briefed by the Chief Executive on the operation of the Trust at each of the formal Trustee meetings. During the intervening periods, Trustees are made aware of any developments the Chief Executive raises, alongside periodic visits by the Trustees to the main offices.
All Trustees give their time voluntarily and receive no benefit from the charity. Travel costs were reclaimed from the charity during the year.
## **Management and staffing**
The Trustees have delegated responsibility for the day to day running of the Trust to the Chief Executive who is assisted in this role by the Conference Centre Manager. The Chief Executive is responsible for recruitment, training and development of staff, developing and maintaining quality systems, policies and procedures, IT security and the protection of customer data, preparing funding bids and project management.
All Trust staff delivering information, advice and guidance have a minimum of an NVQ level 3 in Advice and Guidance, with most having NVQ level 4. The qualifications are part of the process of ensuring the Trust has suitably trained staff to ensure the organisation is in a good position to secure contracts from statutory providers.
## **Risk assessment**
The Trustees, in monitoring the operation of the Trust, review any risks the Trust may face and take appropriate action as required and will seek professional advice where necessary.
The major risks, to which the Trust is exposed as identified by the Trustees, have been reviewed and procedures have been established to manage those risks. In order to minimise risk to the Trust, the Trustees review the following areas on an ongoing basis:
Buildings: in order to minimise risk, Trust staff work within their health and safety policy and an annual risk assessment of the building is carried out after which any areas for concern would be addressed.
Staff: are expected to work in line with staff policies and procedures which include details of how staff should work safely with clients. Policies are reviewed on an ongoing basis.
Clients utilising Morton Park conference facilities are issued with safety information relating to their use of the premises.
Clients utilising employment projects are issued with a Statement of Service which outlines health and safety relating to their visit to the Trust premises.
**- 7 -**
## **The Wm Morrison Darlington Enterprise Trust**
## **Trustees' Annual Report (Incorporating the Directors’ Report)** _**(continued)**_
## **Year Ended 31 March 2021**
Management accounts are produced and reviewed by Trustees on a monthly basis. Individual project finance is monitored on a monthly basis, to ensure projects are operating within budget constraints. Financial aspects of the Trust are discussed at quarterly Trustee meetings. If any financial risk was identified, remedial action would be taken at that point.
Annual accounts are subject to audit by registered auditors.
Contracts with Prime Contractors necessitates the Trust demonstrating a high degree of security in the area of IT and the protection of customer data. To meet this requirement a detailed security plan and business continuity plan and related policies are in place.
## **Public benefit**
The Trust's main activities and who we support are described elsewhere in this report. All our charitable activities are undertaken to further our charitable purposes for the public benefit. The Trustees have had regard to the Charity Commission's guidance on public benefit throughout the year when deciding on the activities of the charity.
## **Reference and Administrative Details**
**Registered charity name** The Wm Morrison Darlington Enterprise Trust **Charity registration number** 1135126 **Company registration number** 07180982 **Principal office and registered** Morton Park Business Training Centre **office** Morton Park Yarm Road Darlington DL1 4PJ
## **The Trustees**
Mr B C Warnes Mr P A Beasley Mr T C Watson Mrs D Fowler Mrs C Miller **Auditor** Allen Sykes Ltd Chartered Accountants & Statutory Auditor 5 Henson Close South Church Enterprise Park Bishop Auckland County Durham DL14 6WA **Bankers** Unity Trust Bank Plc Nine Brindleyplace Birmingham B1 2HB
**- 8 -**
## **The Wm Morrison Darlington Enterprise Trust**
## **Trustees' Annual Report (Incorporating the Directors’ Report)** _**(continued)**_
## **Year Ended 31 March 2021**
## **Trustees' Responsibilities Statement**
The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the applicable Charities SORP;
- make judgments and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Auditor**
Each of the persons who is a trustee at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and
- they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
## **Small Company Provisions**
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
**- 9 -**
## **The Wm Morrison Darlington Enterprise Trust**
**Trustees' Annual Report (Incorporating the Directors’ Report)** _**(continued)**_
## **Year Ended 31 March 2021**
The trustees' annual report was approved on .............................. and signed on behalf of the board of trustees by:
Mr B C Warnes Trustee
**- 10 -**
## **The Wm Morrison Darlington Enterprise Trust**
## **Independent Auditor's Report to the Members of The Wm Morrison Darlington Enterprise Trust**
## **Year Ended 31 March 2021**
## **Opinion**
We have audited the financial statements of The Wm Morrison Darlington Enterprise Trust (the 'charity') for the year ended 31 March 2021 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, 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, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charity's affairs as at 31 March 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for Opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions Relating to Going Concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
**- 11 -**
**The Wm Morrison Darlington Enterprise Trust**
## **Independent Auditor's Report to the Members of The Wm Morrison Darlington Enterprise Trust** _**(continued)**_
## **Year Ended 31 March 2021**
## **Other Information**
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on Other Matters Prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the trustees' report has been prepared in accordance with applicable legal requirements.
## **Matters on Which We are Required to Report by Exception**
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations 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 preparing the directors' report and from the requirement to prepare a strategic report.
**- 12 -**
## **The Wm Morrison Darlington Enterprise Trust**
## **Independent Auditor's Report to the Members of The Wm Morrison Darlington Enterprise Trust** _**(continued)**_
## **Year Ended 31 March 2021**
## **Responsibilities of Trustees**
As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
**- 13 -**
**The Wm Morrison Darlington Enterprise Trust**
## **Independent Auditor's Report to the Members of The Wm Morrison Darlington Enterprise Trust** _**(continued)**_
## **Year Ended 31 March 2021**
## **Auditor's Responsibilities for the Audit of the Financial Statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors 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 the Companies Act 2006, Charities Act 2011, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility 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, their knowledge of actual, suspected and alleged fraud; and
- considering the internal 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:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates
- were indicative of potential bias; and
- investigated the rationale behind any identified significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed
**- 14 -**
**The Wm Morrison Darlington Enterprise Trust**
## **Independent Auditor's Report to the Members of The Wm Morrison Darlington Enterprise Trust** _**(continued)**_
## **Year Ended 31 March 2021**
procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
- Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
**- 15 -**
## **The Wm Morrison Darlington Enterprise Trust**
## **Independent Auditor's Report to the Members of The Wm Morrison Darlington Enterprise Trust** _**(continued)**_
## **Year Ended 31 March 2021**
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
## **Use of Our Report**
This report is made solely to the charity's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.
Mr P W Lamb (Senior Statutory Auditor)
For and on behalf of Allen Sykes Ltd Chartered Accountants & Statutory Auditor 5 Henson Close South Church Enterprise Park Bishop Auckland County Durham DL14 6WA
**- 16 -**
## **The Wm Morrison Darlington Enterprise Trust**
## **Statement of Financial Activities (including income and expenditure account)**
## **Year Ended 31 March 2021**
||||**2021**||2020|
|---|---|---|---|---|---|
|||Unrestricted|Restricted|||
|||funds|funds|**Total funds**|Total funds|
||**Note**|**£**|**£**|**£**|£|
|**Income and endowments**||||||
|Donations and legacies|**5**|5,000|–|**5,000**|–|
|Charitable activities|**6**|98,772|230,580|**329,352**|567,539|
|Investment income|**7**|1,533|–|**1,533**|229|
|Other income|**8**|65,912|–|**65,912**|3,000|
|||`─────────`|`─────────`|`─────────`|`─────────`|
|**Total income**||171,217|230,580|**401,797**|570,768|
|||`═════════`|`═════════`|`═════════`|`═════════`|
|**Expenditure**||||||
|Expenditure on charitable activities|**9,10**|178,284|236,976|**415,260**|574,137|
|||`─────────`|`─────────`|`─────────`|`─────────`|
|**Total expenditure**||178,284|236,976|**415,260**|574,137|
|||`═════════`|`═════════`|`═════════`|`═════════`|
|||`─────────`|`─────────`|`─────────`|`─────────`|
|**Net expenditure**||(7,067)|(6,396)|**(13,463)**|(3,369)|
|||`═════════`|`═════════`|`═════════`|`═════════`|
|Transfers between funds||(32,822)|32,822|**–**|–|
|||`─────────`|`─────────`|`─────────`|`─────────`|
|**Net movement in funds**||(39,889)|26,426|**(13,463)**|(3,369)|
|**Reconciliation of funds**||||||
|Total funds brought forward||211,370|20,813|**232,183**|235,552|
|||`─────────`|`─────────`|`─────────`|`─────────`|
|**Total funds carried forward**||171,481|47,239|**218,720**|232,183|
|||`═════════`|`═════════`|`═════════`|`═════════`|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
**The notes on pages 20 to 33 form part of these financial statements.**
**- 17 -**
## **The Wm Morrison Darlington Enterprise Trust**
## **Statement of Financial Position**
## **31 March 2021**
|||**2021**||2020|
|---|---|---|---|---|
||**Note**|**£**|**£**|£|
|**Current Assets**|||||
|Debtors|**15**|**45,452**||56,220|
|Cash at bank and in hand||**206,980**||206,719|
|||`─────────`||`─────────`|
|||**252,432**||262,939|
|**Creditors: amounts falling due within one year**|**16**|**33,712**||30,756|
|||`─────────`||`─────────`|
|**Net Current Assets**|||**218,720**|232,183|
||||`─────────`|`─────────`|
|**Total Assets Less Current Liabilities**|||**218,720**|232,183|
||||`─────────`|`─────────`|
|**Net Assets**|||**218,720**|232,183|
||||`═════════`|`═════════`|
|**Funds of the Charity**|||||
|Restricted funds|||**47,239**|20,813|
|Unrestricted funds|||**171,481**|211,370|
||||`─────────`|`─────────`|
|**Total charity funds**|**18**||**218,720**|232,183|
||||`═════════`|`═════════`|
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.
These financial statements were approved by the board of trustees and authorised for issue on …....................., and are signed on behalf of the board by:
Mr B C Warnes Trustee
Mr P A Beasley Trustee
## **Company registration number** 07180982
**The notes on pages 20 to 33 form part of these financial statements.**
**- 18 -**
## **The Wm Morrison Darlington Enterprise Trust**
## **Statement of Cash Flows**
## **Year Ended 31 March 2021**
||**2021**|2020|
|---|---|---|
||**£**|£|
|**Cash Flows from Operating Activities**|||
|Net expenditure|**(13,463)**|(3,369)|
|_Adjustments for:_|||
|Other interest receivable and similar income|**(1,533)**|(229)|
|Accrued expenses/(income)|**3,464**|(1,404)|
|_Changes in:_|||
|Trade and other debtors|**10,768**|(13,899)|
|Trade and other creditors|**(508)**|7,529|
||`────────`|`────────`|
|Cash generated from operations|**(1,272)**|(11,372)|
|Interest received|**1,533**|229|
||`───────`|`────────`|
|Net cash from/(used in) operating activities|**261**|(11,143)|
||`═══════`|`════════`|
|**Net Increase/(Decrease) in Cash and Cash Equivalents**|**261**|(11,143)|
|**Cash and Cash Equivalents at Beginning of Year**|**206,719**|217,862|
||`─────────`|`─────────`|
|**Cash and Cash Equivalents at End of Year**|**206,980**|206,719|
||`═════════`|`═════════`|
**The notes on pages 20 to 33 form part of these financial statements.**
**- 19 -**
## **The Wm Morrison Darlington Enterprise Trust**
## **Notes to the Financial Statements**
## **Year Ended 31 March 2021**
## **1. General Information**
The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Morton Park Business Training Centre, Morton Park, Yarm Road, Darlington, DL1 4PJ.
## **2. Statement of Compliance**
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Companies Act 2006.
## **3. Accounting Policies**
## **Basis of Preparation**
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investments measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
## **Going Concern**
## There are no material uncertainties about the charity’s ability to continue.
## **Judgements and Key Sources of Estimation Uncertainty**
The preparation of the 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 factors, including expectations of future events that are believed to be reasonable under the circumstances. The Trustees consider that there are no significant estimates or judgements affecting these financial statements.
## **Fund Accounting**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the purposes of the charity.
Designated funds are unrestricted funds earmarked by the trustees for specific purposes.
Restricted funds are subjected to restrictions on their expenditure imposed by the donor.
**- 20 -**
**The Wm Morrison Darlington Enterprise Trust**
## **Notes to the Financial Statements** _**(continued)**_
## **Year Ended 31 March 2021**
## **3. Accounting Policies** _**(continued)**_
## **Income**
All income is included in the statement of financial activities when the charity is entitled to the income, any performance related conditions attached have been met or are fully within the control of the charity, the income is considered probable and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:
Donations and legacy income is received by way of donations, legacies, grants and gifts and is included in full in the Statement of Financial Activities when receivable. Where legacies have been notified to the charity but the criteria for income recognition have not been met, the legacy is treated as a contingent asset and disclosed if material. Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.
Donated services and facilities are included at the value to the charity, being the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market.
Investment income is included when receivable.
Income from charitable trading activity is accounted for when earned.
Income from grants, where related to performance and specific deliverables, are accounted for as the charity earns the right to consideration by its performance.
## **Expenditure**
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates:
Costs of raising funds comprise the costs associated with attracting donations, grants and legacies and the costs of trading for fundraising purposes.
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.
Other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated between the expenditure categories of the SOFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis, based on staff numbers and floor area.
**- 21 -**
**The Wm Morrison Darlington Enterprise Trust**
## **Notes to the Financial Statements** _**(continued)**_
## **Year Ended 31 March 2021**
## **3. Accounting Policies** _**(continued)**_
## **Financial Instruments**
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
## **Defined Contribution Plans**
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.
## **Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Accrued income and tax recoverable is included at the best estimate of the amounts receivable at the balance sheet date.
## **Cash at Bank and in Hand**
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
**- 22 -**
**The Wm Morrison Darlington Enterprise Trust**
## **Notes to the Financial Statements** _**(continued)**_
## **Year Ended 31 March 2021**
## **3. Accounting Policies** _**(continued)**_
## **Creditors**
Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.
## **Taxation**
The company 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 company 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.
## **4. Limited by Guarantee**
The company is limited by guarantee. At 31st March 2021 there were 5 members each of whom had undertaken to contribute an amount not exceeding £10 in the event of a winding up.
## **5. Donations and Legacies**
||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|---|---|---|---|---|
||Funds|**2021**|Funds|2020|
||£|**£**|£|£|
|**Donations**|||||
|Donations|5,000|**5,000**|–|–|
||`═══════`|`═══════`|`════`|`════`|
**- 23 -**
## **The Wm Morrison Darlington Enterprise Trust**
## **Notes to the Financial Statements** _**(continued)**_
## **Year Ended 31 March 2021**
## **6. Charitable Activities**
||||Unrestricted|Restricted|**Total Funds**|
|---|---|---|---|---|---|
||||Funds|Funds|**2021**|
||||£|£|**£**|
||Youth Employment Initiative (YEI)||–|32,554|**32,554**|
||Step Forward Tees Valley (SFTV)||–|38,016|**38,016**|
||Sport England||–|8,334|**8,334**|
||The Henry Smith Charity||–|48,000|**48,000**|
||Garfield Weston||–|25,000|**25,000**|
||The Wellesley Trust Fund at the Community|||||
||Foundation serving Tyne & Wear and|||||
||Northumberland||–|19,467|**19,467**|
||National Lottery Covid 19 Response||–|34,233|**34,233**|
||County Durham Community Foundation||–|5,000|**5,000**|
||ESF Community Grants||–|–|**–**|
||NHS Health Improvement Fund||–|9,976|**9,976**|
||Skerne Park Community Enterprise Association||12,000|–|**12,000**|
||SFTV Room Hire||28,959|–|**28,959**|
||Morton Park Conference Centre||34,504|–|**34,504**|
||Systems Training||23,309|–|**23,309**|
||Other income||–|10,000|**10,000**|
||||`────────`|`─────────`|`─────────`|
||||98,772|230,580|**329,352**|
||||`════════`|`═════════`|`═════════`|
||||Unrestricted|Restricted|Total Funds|
||||Funds|Funds|2020|
||||£|£|£|
||National Lottery Community Fund||–|92,056|92,056|
||Youth Employment Initiative (YEI)||–|30,136|30,136|
||Step Forward Tees Valley (SFTV)||–|48,787|48,787|
||Sport England||–|30,517|30,517|
||The Henry Smith Charity||–|46,800|46,800|
||The Wellesley Trust Fund at the Community|||||
||Foundation serving Tyne & Wear and|||||
||Northumberland||–|9,281|9,281|
||County Durham Community Foundation||–|28,000|28,000|
||ESF Community Grants||–|12,021|12,021|
||Skerne Park Community Enterprise Association||12,000|–|12,000|
||Morton Park Conference Centre||189,692|–|189,692|
||Systems Training||59,279|–|59,279|
||Other income||–|8,970|8,970|
||||`─────────`|`─────────`|`─────────`|
||||260,971|306,568|567,539|
||||`═════════`|`═════════`|`═════════`|
|**7.**|**Investment Income**|||||
|||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|||Funds|**2021**|Funds|2020|
|||£|**£**|£|£|
||Bank interest receivable|1,533|**1,533**|229|229|
|||`═══════`|`═══════`|`════`|`════`|
**- 24 -**
## **The Wm Morrison Darlington Enterprise Trust**
## **Notes to the Financial Statements** _**(continued)**_
## **Year Ended 31 March 2021**
## **8. Other Income**
||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|---|---|---|---|---|
||Funds|**2021**|Funds|2020|
||£|**£**|£|£|
|HMRC Job Retention Scheme|61,500|**61,500**|–|–|
|Employment Allowance|4,412|**4,412**|3,000|3,000|
||`────────`|`────────`|`───────`|`───────`|
||65,912|**65,912**|3,000|3,000|
||`════════`|`════════`|`═══════`|`═══════`|
|**Expenditure on Charitable Activities**|**by Fund Type**||||
|||Unrestricted|Restricted|**Total Funds**|
|||Funds|Funds|**2021**|
|||£|£|**£**|
|Youth Employment Initiative (YEI)||–|41,457|**41,457**|
|Henry Smith Charity - Choices||–|41,231|**41,231**|
|Sport England||–|16,141|**16,141**|
|National Lottery Community Fund - Moneyworks||–|–|**–**|
|Care & Share||–|2,321|**2,321**|
|ESF Community Grants||–|22,458|**22,458**|
|CDCF Covid 19||–|3,326|**3,326**|
|National Lottery Covid 19 Response||–|37,169|**37,169**|
|Step Forward Tees Valley (SFTV)||–|32,006|**32,006**|
|Systems Training||59,486|–|**59,486**|
|Skerne Park Community Enterprise Association||11,182|–|**11,182**|
|The Wellesley Trust Fund at the Community|||||
|Foundation serving Tyne & Wear and|||||
|Northumberland||–|6,915|**6,915**|
|Morton Park Conference Centre||69,204|–|**69,204**|
|Support costs||38,412|33,952|**72,364**|
|||`─────────`|`─────────`|`─────────`|
|||178,284|236,976|**415,260**|
|||`═════════`|`═════════`|`═════════`|
|||Unrestricted|Restricted|Total Funds|
|||Funds|Funds|2020|
|||£|£|£|
|Youth Employment Initiative (YEI)||–|51,549|51,549|
|Henry Smith Charity - Choices||–|47,097|47,097|
|Sport England||–|26,152|26,152|
|National Lottery Community Fund - Moneyworks||–|86,669|86,669|
|Care & Share||–|2,801|2,801|
## **9. Expenditure on Charitable Activities by Fund Type**
**- 25 -**
## **The Wm Morrison Darlington Enterprise Trust**
## **Notes to the Financial Statements** _**(continued)**_
## **Year Ended 31 March 2021**
|ESF Community Grants|–|15,117|15,117|
|---|---|---|---|
|CDCF Covid 19|–|–|–|
|National Lottery Covid 19 Response|–|–|–|
|Virgin Money Foundation|–|23,045|23,045|
|Step Forward Tees Valley (SFTV)|–|35,845|35,845|
|Systems Training|54,539|–|54,539|
|Skerne Park Community Enterprise Association|6,482|–|6,482|
|The Wellesley Trust Fund at the Community||||
|Foundation serving Tyne & Wear and||||
|Northumberland|–|9,007|9,007|
|Morton Park Conference Centre|94,684|–|94,684|
|Support costs|57,876|63,274|121,150|
||`─────────`|`─────────`|`─────────`|
||213,581|360,556|574,137|
||`═════════`|`═════════`|`═════════`|
## **10. Expenditure on Charitable Activities by Activity Type**
||Activities||||
|---|---|---|---|---|
||undertaken||**Total funds**|Total funds|
||directly|Support costs|
**2021**|2020|
||£|£|**£**|£|
|Youth Employment Initiative (YEI)|41,457|
12,600|
**54,057**|63,286|
|Henry Smith Charity - Choices|41,231|
5,603|
**46,834**|53,478|
|Sport England|16,141|
105|
**16,246**|28,664|
|National Lottery Community Fund -|||||
|Moneyworks|–|
–|
**–**|100,518|
|Care & Share|2,321|
1,822|
**4,143**|3,721|
|ESF Community Grants|22,458|
38|
**22,496**|16,278|
|CDCF Covid 19|3,326|
1,445|
**4,771**|–|
|National Lottery Covid 19 Response|37,169|
882|
**38,051**|–|
|Virgin Money Foundation|–|
–|
**–**|25,775|
|Step Forward Tees Valley (SFTV)|32,006|
9,722|
**41,728**|57,425|
|Systems Training|59,486|
6,119|
**65,605**|58,457|
|Skerne Park Community Enterprise|||||
|Association|11,182|
–|
**11,182**|6,482|
|The Wellesley Trust Fund at the|||||
|Community Foundation serving Tyne &|||||
|Wear and Northumberland|6,915|
1,735|
**8,650**|11,411|
|Morton Park Conference Centre|69,204|
32,293|
**101,497**|148,642|
||`─────────`|
`────────`|
`─────────`|`─────────`|
||342,896|
72,364|
**415,260**|574,137|
||`═════════`|
`════════`|
`═════════`|`═════════`|
**- 26 -**
## **The Wm Morrison Darlington Enterprise Trust**
**Notes to the Financial Statements** _**(continued)**_
## **Year Ended 31 March 2021**
## **11. Analysis of Support Costs**
||Youth|The Henry|||||National|
|---|---|---|---|---|---|---|---|
||Employment|Smith|||ESF||Lottery|
||Initiative|Charity -|Sport|
Care &|
Community|
CDCF Covid|Covid 19|
||(YEI)|Choices|England|
Share|
Grants|
19|Response|
||£|£|£|£|£|£|£|
|Premises|2,388|1,273|–|
477|
–|
–|–|
|General office|7,649|3,032|105|
858|
38|
845|882|
|Legal & Professional fees|2,563|1,298|–|
487|
–|
600|–|
||`────────`|
`───────`|`────`|
`───────`|
`────`|
`───────`|`────`|
||12,600|5,603|105|
1,822|
38|
1,445|882|
||`════════`|
`═══════`|`════`|
`═══════`|
`════`|
`═══════`|`════`|
|||||The||||
|||||Wellesley||||
|||||Trust Fund||||
|||||at the||||
|||||Community||||
|||||Foundation||||
|||Step||serving Tyne||||
|||Forward||& Wear and|
Morton Park|||
|||Tees Valley|Systems|
Northumberl|Conference|||
|||(SFTV)|Training|
and|
Centre|**Total 2021**|Total 2020|
|||£|£|£|£|**£**|£|
|Premises||2,387|1,591|
477|
7,541|
**16,134**|66,914|
|General office||4,837|2,589|
771|
17,033|
**38,639**|28,487|
|Legal & Professional fees||2,498|1,939|
487|
7,719|
**17,591**|25,749|
|||`───────`|`───────`|
`───────`|
`────────`|
`────────`|`─────────`|
|||9,722|6,119|
1,735|
32,293|
**72,364**|121,150|
|||`═══════`|`═══════`|
`═══════`|
`════════`|
`════════`|`═════════`|
**- 27 -**
## **The Wm Morrison Darlington Enterprise Trust**
## **Notes to the Financial Statements** _**(continued)**_
## **Year Ended 31 March 2021**
## **12. Staff Costs**
The total staff costs and employee benefits for the reporting period are analysed as follows:
||**2021**|2020|
|---|---|---|
||**£**|£|
|Wages and salaries|**284,085**|272,198|
|Social security costs|**21,980**|21,907|
|Employer contributions to pension plans|**7,912**|8,131|
||`─────────`|`─────────`|
||**313,977**
`═════════`|302,236
`═════════`|
The average head count of employees during the year was 15 (2020: 14). The average number of full-time equivalent employees during the year is analysed as follows:
|of full-time equivalent employees during the year is|analysed as follows:||
|---|---|---|
||**2021**|2020|
||**No.**|No.|
|Number of conference staff|**3**|2|
|Number of admin staff|**3**|3|
|Number of managerial staff|**3**|3|
|Number of project staff|**6**|6|
||`────`|`────`|
||**15**|14|
||`════`|`════`|
No employee received employee benefits of more than £60,000 during the year (2020: Nil).
## **Key Management Personnel**
Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the charity. The total compensation paid to key management personnel for services provided to the charity was £37,274 (2020:£33,256).
## **13. Trustee Remuneration and Expenses**
No trustees received any remuneration from the charity during the current or previous year. Trustees received travel expenses totalling £365 during the year (2020 - £682).
## **14. Auditor’s Remuneration**
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Auditor’s Remuneration|**2,400**
`════════`|**2,400**
`════════`|
## **15. Transfers Between Funds**
During the year a total of £32,822 was transferred from unrestricted to restricted funds. This comprised:
||**2021**|
|---|---|
||**£**|
|Contribution to overheads from Garfield Weston|**(12,500)**|
|Deficit on the ESF Community grants|**26,753**|
|Match funding for the SFTV project|**3,248**|
|Match funding for YEI project|**21,503**|
|Contribution to overheads from Shears Foundation|**(5,000)**|
|Contribution to overheads from Warburtons|**(5,000)**|
|Deficit on the National Lottery Covid 19 Response project|**3,818**|
||`────────`|
||**32,822**|
||`════════`|
**- 28 -**
## **The Wm Morrison Darlington Enterprise Trust**
## **Notes to the Financial Statements** _**(continued)**_
## **Year Ended 31 March 2021**
## **16. Debtors**
||**2021**|2020|
|---|---|---|
||**£**|£|
|Trade debtors|**8,814**|12,182|
|Prepayments|**1,183**|6,246|
|Accrued income|**34,783**|37,120|
|Other debtors|**672**|672|
||`────────`|`────────`|
||**45,452**|56,220|
||`════════`|`════════`|
## **17. Creditors: amounts falling due within one year**
||**2021**|2020|
|---|---|---|
||**£**|£|
|Trade creditors|**12,367**|11,136|
|Accruals and deferred income|**9,655**|6,191|
|Social security and other taxes|**5,693**|7,201|
|Pension creditor|**1,544**|1,125|
|Other creditors|**4,453**|5,103|
||`────────`|`────────`|
||**33,712**
`════════`|30,756
`════════`|
## **18. Pensions and Other Post Retirement Benefits**
## **Defined contribution plans**
The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £7,912 (2020: £8,131).
## **19. Analysis of Charitable Funds**
## **Unrestricted funds**
|||At||||**At 31 March**|
|---|---|---|---|---|---|---|
||1|April 2020|Income|Expenditure|Transfers|**2021**|
|||£|£|£|£|**£**|
|General fund||211,370|171,217|(178,284)|(32,822)|
**171,481**|
|||`═════════`|`═════════`|`═════════`|`════════`|
`═════════`|
|||At||||At 31 March|
||1|April 2019|Income|Expenditure|Transfers|2020|
|||£|£|£|£|£|
|General fund||183,933|264,200|(213,581)|(23,182)|
211,370|
|||`═════════`|`═════════`|`═════════`|`════════`|
`═════════`|
**- 29 -**
## **The Wm Morrison Darlington Enterprise Trust**
## **Notes to the Financial Statements** _**(continued)**_
## **Year Ended 31 March 2021**
## **19. Analysis of Charitable Funds** _**(continued)**_
## **Restricted funds**
|**Restricted funds**||||||
|---|---|---|---|---|---|
||At||||**At 31 March**|
||1 April 2020|Income|Expenditure|Transfers|**2021**|
||£|£|£|£|**£**|
|Youth Employment||||||
|Initiative|–|32,554|(54,057)|21,503|**–**|
|Step Forward Tees||||||
|Valley|464|38,016|(41,728)|3,248|**–**|
|The Henry Smith Charity||||||
|- Choices|11,445|48,000|(46,834)|–|**12,611**|
|Garfield Weston|–|25,000|–|(12,500)|
**12,500**|
|The Wellesley Trust||||||
|Fund at the Community||||||
|Foundation serving Tyne||||||
|& Wear &||||||
|Northumberland|–|19,467|(8,650)|–|**10,817**|
|Awards For All|–|–|–|–|**–**|
|Sport England|7,912|8,334|(16,246)|–|**–**|
|Warburtons|–|5,000|–|(5,000)|
**–**|
|Shears Foundation|–|5,000|–|(5,000)|
**–**|
|North Yorkshire NHS||||||
|(Care & Share)|5,249|–|(4,143)|–|**1,106**|
|ESF Community grants|(4,257)|–|(22,496)|26,753|**–**|
|NHS Health||||||
|Improvement grant|–|9,976|–|–|**9,976**|
|National Lottery Covid||||||
|19 Response|–|34,233|(38,051)|3,818|**–**|
|CDCF Covid 19 grant|–|5,000|(4,771)|–|**229**|
||`────────`|`─────────`|`─────────`|`────────`|
`────────`|
||20,813|230,580|(236,976)|32,822|**47,239**|
||`════════`|`═════════`|`═════════`|`════════`|
`════════`|
**- 30 -**
## **The Wm Morrison Darlington Enterprise Trust**
## **Notes to the Financial Statements** _**(continued)**_
## **Year Ended 31 March 2021**
## **19. Analysis of Charitable Funds** _**(continued)**_
||At||||At 31 March|
|---|---|---|---|---|---|
||1 April 2019|Income|Expenditure|Transfers|2020|
||£|£|£|£|£|
|National Lottery||||||
|Community Fund|–|92,056|(100,518)|8,462|–|
|Youth Employment||||||
|Initiative|–|58,136|(63,286)|5,150|–|
|Step Forward Tees||||||
|Valley|961|48,787|(57,425)|8,141|464|
|The Henry Smith Charity||||||
|- Choices|18,123|46,800|(53,478)|–|11,445|
|The Wellesley Trust||||||
|Fund at the Community||||||
|Foundation serving Tyne||||||
|& Wear &||||||
|Northumberland|453|9,281|(11,411)|1,677|–|
|Awards For All|248|–|–|(248)|
–|
|Sport England|6,059|30,517|(28,664)|–|7,912|
|Virgin Money||||||
|Foundation|25,775|–|(25,775)|–|–|
|North Yorkshire NHS||||||
|(Care & Share)|–|8,970|(3,721)|–|5,249|
|ESF Community grants|–|12,021|(16,278)|–|(4,257)|
||`────────`|`─────────`|`─────────`|`────────`|`────────`|
||51,619|306,568|(360,556)|23,182|20,813|
||`════════`|`═════════`|`═════════`|`════════`|`════════`|
**- 31 -**
**The Wm Morrison Darlington Enterprise Trust**
## **Notes to the Financial Statements** _**(continued)**_
## **Year Ended 31 March 2021**
## **19. Analysis of Charitable Funds** _**(continued)**_
Youth Employment Initiative (YEI): This programme aims to support young people across the Tees Valley aged 15-29 who are unemployed and / or not in education, employment or training.
Step Forward Tees Valley (SFTV): The programme operates across the Tees Valley, starting in October 2016 and aims to support unemployed / inactive participants across the Tees Valley.
Sport England: Grant funding was received from Sport England's Tackling Inactivity and Economic Disadvantage programme (TIED). The funding is aimed at supporting people in low socio-economic groups to get active and was awarded to projects delivering in disadvantaged communities around the country. Morrison Trust is working in partnership with another charity, Active Life Foundation, to provide activities in target communities across Darlington through the 'Step Out' project.
The Henry Smith Charity: This grant funding supported the Choices project.
Garfield Weston Foundation: This grant contributed to core costs of community development work and delivery of employability support to individuals.
The Wellesley Trust at the Community Foundation serving Tyne & Wear and Northumberland: This funding supported young care leavers to move towards training, education, employment or voluntary work.
Government's Coronavirus Community Support Fund, distributed by The National Lottery Community Fund: Grant funding was received for the provision of a project to support people who were out of work or had lost their job as a result of the pandemic. Support included one to one employability and access to training and skills. The funding also supported Conference Centre costs associated with the impact of Covid-19.
County Durham Community Foundation working in partnership with Darlington Borough Council: Grant funding was received from County Durham Community Foundation working in partnership with Darlington Borough Council for costs associated with Covid-19.
NHS Health Improvement Fund (via County Durham Community Foundation): Grant funding was received from the NHS Health Improvement Fund (via County Durham Community Foundation) towards costs of delivering a Men's IT Shed.
Warburtons and Charities Aid Foundation: Grant funding was received from Warburtons (Covid grants). The grant allowed an extension to a project that was initially established through a grant from National Lottery Emergency Support Fund which allowed us to support people who were out of work or had lost their job as a result of the pandemic.
The Shears Foundation: Grant funding was received from The Shears Foundation to support the costs of sustaining the Conference Centre as a result of the Covid-19 pandemic.
Care and Share joint project - A grant was received from North Yorkshire NHS to deliver a project working in partnership with the Care & Share group.
ESF Community Grants - A grant was received from ESF Community Grants Programme for a six month project to support young people (aged 16 to 29) who are NEET and living in Darlington to reduce barriers to moving into and sustaining employment.
**- 32 -**
## **The Wm Morrison Darlington Enterprise Trust**
## **Notes to the Financial Statements** _**(continued)**_
## **Year Ended 31 March 2021**
## **20. Analysis of Net Assets Between Funds**
|||Unrestricted|Restricted|**Total Funds**|
|---|---|---|---|---|
|||Funds|Funds|**2021**|
|||£|£|**£**|
||Current assets|205,193|47,239|**252,432**|
||Creditors less than 1 year|(33,712)|–|**(33,712)**|
|||`─────────`|`────────`|`─────────`|
||**Net assets**|171,481|47,239|**218,720**|
|||`═════════`|`════════`|`═════════`|
|||Unrestricted|Restricted|Total Funds|
|||Funds|Funds|2020|
|||£|£|£|
||Current assets|242,126|20,813|262,939|
||Creditors less than 1 year|(30,756)|–|(30,756)|
|||`─────────`|`────────`|`─────────`|
||**Net assets**|211,370|20,813|232,183|
|||`═════════`|`════════`|`═════════`|
|**21.**|**Analysis of Changes in Net Debt**||||
||||||**At**|
|---|---|---|---|---|---|
||At|1|Apr 2020 Cash flows||**31 Mar 2021**|
||||£|£|**£**|
|Cash at bank and in hand|||206,719|261|**206,980**|
||||`═════════`|`════`|
`═════════`|
## **22. Related Parties**
The wife of Mr P A Beasley, trustee, is a training provider who is engaged by the Trust on occasion. During the year she invoiced £3,321 (2020 - £4,975).
D Fowler, trustee, is a coach and mentor who is engaged by the Trust on an ad-hoc basis. During the year she was paid for her coaching services a total of Nil (2020 - £1,300).
B Warnes and C Miller, trustees, are also committee members of Skerne Park Community Enterprise Association from whom the Trust received a management fee of £12,000 (2020 - £12,000).
**- 33 -**
## **The Wm Morrison Darlington Enterprise Trust**
## **Management Information**
**Year Ended 31 March 2021**
**The Following Pages Do Not Form Part of the Financial Statements.**
**- 34 -**
## **The Wm Morrison Darlington Enterprise Trust**
## **Detailed Statement of Financial Activities**
## **Year Ended 31 March 2021**
||**2021**|2020|
|---|---|---|
||**£**|£|
|**Income and endowments**|||
|**Donations and legacies**|||
|Donations|**5,000**|–|
||`───────`|`────`|
|**Charitable activities**|||
|National Lottery Community Fund|**–**|92,056|
|Youth Employment Initiative (YEI)|**32,554**|30,136|
|Step Forward Tees Valley (SFTV)|**38,016**|48,787|
|Sport England|**8,334**|30,517|
|The Henry Smith Charity|**48,000**|46,800|
|Garfield Weston|**25,000**|–|
|The Wellesley Trust Fund at the Community Foundation serving Tyne &|||
|Wear and Northumberland|**19,467**|9,281|
|National Lottery Covid 19 Response|**34,233**|–|
|County Durham Community Foundation|**5,000**|28,000|
|ESF Community Grants|**–**|12,021|
|NHS Health Improvement Fund|**9,976**|–|
|Skerne Park Community Enterprise Association|**12,000**|12,000|
|SFTV Room Hire|**28,959**|–|
|Morton Park Conference Centre|**34,504**|189,692|
|Systems Training|**23,309**|59,279|
|Other income|**10,000**|8,970|
||`─────────`|`─────────`|
||**329,352**|567,539|
||`─────────`|`─────────`|
|**Investment income**|||
|Bank interest receivable|**1,533**|229|
||`───────`|`────`|
|**Other income**|||
|HMRC Job Retention Scheme|**61,500**|–|
|Employment Allowance|**4,412**|3,000|
||`────────`|`───────`|
||**65,912**|3,000|
||`────────`|`───────`|
||`─────────`|`─────────`|
|**Total income**|**401,797**|570,768|
||`═════════`|`═════════`|
**- 35 -**
## **The Wm Morrison Darlington Enterprise Trust**
## **Detailed Statement of Financial Activities** _**(continued)**_
## **Year Ended 31 March 2021**
||**2021**|2020|
|---|---|---|
||**£**|£|
|**Expenditure**|||
|**Expenditure on charitable activities**|||
|Wages and salaries|**284,085**|272,198|
|Employer's NIC|**21,980**|21,907|
|Pension costs|**7,912**|8,131|
|Premises costs|**16,133**|66,914|
|Legal and professional fees|**17,592**|25,749|
|Office costs|**38,639**|28,487|
|Staff travel and training|**2,015**|4,402|
|Beneficiary costs|**17,045**|68,393|
|Moneyworks partner payments|**5,353**|57,235|
|Conference centre costs|**4,506**|20,721|
||`─────────`|`─────────`|
|**Total expenditure**|**415,260**|574,137|
||`═════════`|`═════════`|
||`─────────`|`─────────`|
|**Net expenditure**|**(13,463)**|(3,369)|
||`═════════`|`═════════`|
**- 36 -**