SECTOR 3 STOCKPORT FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 COMPANY REGISTRATION NUMBER: 06814531 CHARITY REGISTRATION NUMBER.. 1135557 *ADK2PGI* 0711212024 COMPANIES HOUSE A03 #261 SECTOR 3 STOCKPORT INDEX PAGE TRUSTEES, ANNUAL REPORT INDEPENDENT EXAMINER'S REPORT STATEMENT OF FINANCIAL ACTIVITIES BALANCE SHEET STATEMENT OF CASH FLOWS 9-19 NOTES TO THE ACCOUNTS SEcfoR 3 STOCKPORT Report of the Trustees for the year ended 31 March 2024 The Trustees present their annual directors, report and financial statements of the Charity for the vear ended 31" March 2024 which are also prepared to meet the requirements for a directors, report and accounts for Companies Act purposes. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Repo.rting Standard applicable in the UK and Republic of Ireland IFRS 102) (effective I January 20191. Reference and administrative informatlon Charity Name.. sector 3 Stockport {formerly Syner8y Stockport Limited until 15 June 2023) Charity Number: 1135557 Company Number: 06814531 The Trustees and officers serving during the year and since the year end were as follows: Trustees and Dlrectors M.J. Brade K.A. Kelly A.B. Lambert M. Edwards D. Scott-Fowler J.E. Harper K, Riaz-mohammed S.P Hughes L.A. Parrott-Bates Dr P.C. Jarvi5 Chair M.L. Fisher K.J. Grant S.R. Marsha51 T.L.D. O'Toole (resigned March 20241 (resigned March 20241 (resigned May 2023) (resigned May 2023} (appointed May 20231 (appointed May 20241 {appointed April 20241 (appointed April 20241 (appointed April 20241 Key Management J. McGrath CEO Registered Office Office 24 Merseyway Innovation Centre 21-23 Merseyway Stockport SKI IPN Independent Examiners Community Accountancy Service Limited The Grange Pilgrim Drive Beswick Manchester MII 3TQ SECTOR 3 STOCKPORT Bankers Co-operative Bank PLC Kings Valley, Yew Street Stockport Cheshire SKI ILZ Structure, governance and management Sector 3 Stockport {formerly Synergy Stockport Limited) is a company limited by guarantee governed by its Memorandum and Articles of Association dated 10 February 2009. It Is registered as a charity with the Charity Commission dated 15 April 2010. Appolntment of Trustees The Directors of the company are also charity trustees for the purposes of charity law and under the Company's Articles are known as members of the Management Committee. Sector3 saw 4 trustees resign durln8 the year, and following a successful recruitment exercise have 4 new trustees joinin8 from Aprll 2024. Objectives and activities The objects of the Charity are to advance and promote all or any purposes which are exclusively charitable and for the public benefit in accordance with the laws of England & Wales; and to promote and organise co-operation in the furtherance of such purpose. Throughout the current reporting year there has been one main activity, which is to support the Voluntary, Community, Faith and Social Enterprise IVCFSEI sector across Stockport. Sector 3, has established itself as a broad and diverse network of third sector or8anisation that has been developin8 in Stockport since 2018. Our Vision Is a Stockport full of vlbrant, healthy & inclusive communities, Our Mlssion Is to foster a thrivin8 third sector in Stockport by developing a supportive network whlch provides opportunities for growth and share learnlng. All with the aim of fostering resilience and longevity in the sector so that it can continue to do what it does best, support our communities to prosper. A review of our achlevements and performance The 2023/2024 financial year was a period of signiflcant progress for Sector 3 Stockport. We continued to build on our role as a key player in supporting the Voluntary, Community, Faith, and Social Enterprise IVCFSEI sector in Stockport. Our efforts have centred around forging partnerships, generating income, and supporting community-based initiatives aimed at fostering resilience and collaboration in local communities. l. Vision: The organisation has developed a vision, mission and purpose placing the sector at the core of decision makin8. 2. Strategic Partnerships: forged strategic partnerships with the public and private sector, enhancing the sector's visibility and bringing in increased funding and partnership opportunities. SEcfoR 3 STOCKPORT 3. Impact: Promoting the positive impact, the VCFSE has in communities and establishing the VCFSE as a key Strategic and delivery partner in Stockport. 4. Or8anisational Leadership.. Championing the voice of the sector and influencing more investment into the sector. Sector3 has also played a fundamental role in building networks which has enables collaboration within the VCFSE and with the public and private sector. 5. Income Generation: Negotiating and raising funding for the VCFSE to ensure gra55roots delivery in local communities. A significant portion of the funds raised were reinvested back into the sector via grant-giving programmes & delivery programmes. These funds directly benefited grassroots projects focused on improving the lives of communities across the borough of Stockport. 6. Governance and Leadership: With a new Chair of Trustees appointed in May 2023, Sector 3 entered a phase of strategic review. This includes governance reform to ensure sustainability and alignment with evolving community needs. Sector3 strives to provide effective governance, strong leadership and irnpactful support to contribute towards the growth and resilience of Stockport's VCFSE Sector. Flnanclal revlew Total reserves at 31 March 2024 were £415,367. Sector 3 has secured funds over the last year, including funds that have been invested back out and into the sector via grant 8ivin8 programmes and pro8rammes of deliverv. Investment powers and policy The Trustees having regard to the liquidity requirements of operating the Charity have kept available funds in an interest-bearing bank account. The Trustees have contlnued to monitor the many external influences and resulting internal changes and the position with investment opportunities and agreed that this remains the best course of action as this would allow necessary access to funds for supporting opportunities or ceasing activities depending on the outcome of the new commissioning opportunitles. Reser¥es policy and going concern The balance held in unrestricted reserves at 31 March 2024 was £199,982 of which £197,795 are free reserves after accounting for fixed assets. The Trustees aim to maintain free reserves in unrestricted funds at a level which equates to approximately six months of running cost5. The Trustees consider that this level will provide sufficient funds to meet general operational activities and to secure the Charit(s future development. The increased activity in sourcing funds through the Sector 3 activity has enabled the Trustees to be satisfied that these prospects combined with a good level of reserves ensure Sector 3 Stockport remains a going concern. Risk management The Trustees have conducted a review of the major risks to which the Charity is exposed, and actions taken to mitigate those risks. This had previously been about having a single stream of income, but this is being successfully addressed through the new broader focus and funding for the various work programmes of Sector 3. Plans for Future Periods Enhance Cross-sector Collaboratlon: We will continue to leverage relationships with the public and private sectors to increase investment into the VCFSE sector. SECTOR 3 STOCKPORT Strengthen Governance: Ongoing strategic reviews will ensure our governance structures are fit for future challenges. Focus on Income Dlverslflcation.. With new corporate partnerships and other opportunities on the rise, we aim to diversify income streams to maintain a stable financial position. Remaining relevant. We will invest in an independent survey to determine the key challenges and opportunities for the VCFSE sector in Stockport. This will inform our strategy refresh and future service offering. Organisation The day to day running of the organisation's work is delegated by the board to the CEO. Related partles and co-operatlon wlth other organlsatlons Trustees also have roles in the following organisations: M.J. Brade Age UK Stockport & Step Out Stockport Pebble Enterprises Llmited Stockport Advocacy Together Trust & Stockport Talking Newspaper Jump Space Disability Stockport Beacon Counselling M. Edwards Dr P.C. Jarvis M.L. Fisher K.J. Grant S.R. Marshall Trustees responsibilities in relation to the financlal statements The Charity Trustees (who are also the Directors of the Charity for the purposes of company law) are responsible for preparing a trustees, annual report and financial statements in accordance with applicable law and Unlted Kingdom Accountin8 Standards (the United Kln8dom Generally Accepted Accounting Practicel. 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 of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing the financlal statements, the Trustees are required to: Select suitable accounting prlnciples and then apply them consistently,. Observe the methods and principles in the applicable Charities SORP; Make judgments and estimates that are reasonable and prudent; State whether applicable accounting standards have been followed, subject to any material departures that must be dlsclosed and explained in the financial statements; Prepare the financial statements on a going concern basis unless it is appropriate to presume that the charity will continue in business. The Trustees are responsible for keeping proper accounting records that dlsclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the financial statements comply with the Companles Act 2006. They are also responsible for safeguarding the assets of the Charity and taking reasonable steps for the prevention and detection of fraud and other irregularities. y order of the Board of Trustees/Directors: Dr P.C. Jarvis Chair of Tru5tee5 Date: 21" November 2024 INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF SECTOR 3 STOCKPORT st I report on the accounts of the company for the year ended 31 March 2023, which are set out on pages 6 to 19. Respeetive responsibilities of trustees and examiner The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 201 l Act) and that an independent examination is needed. The charity is required by company law to PTepare accrued accounts and l am qualified to undertake the examination by being a qualified member of The Association of Chartered Certified Accountants. Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to: examine the accounts under section 145 of the 2011 Act ' to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(b) of the 20) l Act: and to state whether particular matters have come to my attention. Basis of independent examiner's report My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an aiidit and consequently no opinion is given as to whether the accounts present a 'true and fair view, and the report is limited to those matters set out in the statement below. Independent examiner's statement Except as disclosed below, in connection with my examination, no matter has come to my attention: ( l ) which gives me reasonable cause to believe that in any material respect the requirements to keep accounting records in accordance with section 386 of the Companies Act 2006. and to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006, , and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities have not been met. or (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. AM King FCCA Community Accountancy Service Ltd The Grdnge, Pilgrim Drive Beswick, Manchester, M l13TQ Date: 21" November 2024 SECTOR 3 STOCKPORT STATEMENT OF FINANCIAL ACTrVITIES FOR THE YEAR ENDED 31 MARCH 2024 (incorporating Income & Expendrture accounll Unrostrl¢t•d Rgstrfcted Fund• Fund• 2024 2023 Not•s INCOME FROM: Gifts & Donalions Charitable Activities Other Income TOTAL 4,521 238,265 18,496 261 282 4.521 449.826 18.496 472.843 54,308 260,989 211.561 320 397 EXPENDITURE ON: Fundraising Charitable Activities 360 331,192 273,038 231,259 504.297 TOTAL 273 082 231.259 504.341 331 S$2 NET MOVEMENT IN FUNDS (11,800) {19.6981 {31,498} 111,1SS) Transfers befv4een fun¢Js 139.993} 39,993 Total funds brought forward 249,775 197,090 446.865 458,020 TOTAL FUNDS CARRIED FORWARD 197 982 217,3 415,367 446,865 The 8lalemenl of flnandal acllvllle3 indudes all 9ains 8nd losses in the year. The notes on pages 9 10 19 fofm part ol these a￿OUntS. SECTOR 3 STOCKPORT 8ALANCE SHEET AS AT 31 MARCH 2024 Company registration nLKnber'. 06814531 2024 2023 Note8 FIXED ASSETS Tangible Fixed Assets 10 187 539 CURRENT ASSETS Debtors Cash at Bank & In Hand 38.278 492,325 530.603 7.873 543.003 550,876 LIABILITIES; Amounls falling ¢Jue within one year 12 115.423 NET CURRENT ASSETS 415.180 446.326 TOTAL ASSETS 41 367 446.865 THE FUNOS OF THE CHARITY Restricted Reserves Unrestricted Reserves TOTAL CHARITY FUNDS 15 15 217,385 197 982 415.367 197.090 249.775 Fov the year in question the company was enlilled lo the exemplion from audit under se¢llon 477 of the Compantes Acl 2006 relating to small companies. .The members have not required the company lo obtain an avdll ol 118 accoun18 lor the year In question in accordance wilh section 476. The directors acknowledge Iheif responsibililies lol comptyin9 With the iequiremenls of the Act wilh ￿specI lo accounting recofds and the preparalion of accounts. These accounts have been p￿pared In accordance *Mth thè proviilons appllc8ble lo ¢ompanie8 subje¢1 (o Ihe small companies, reglme. Approve(S on behalf of the Companys Board ol Trvslee8l0l￿eIQrs'. Difeclor Df P.C. JaNIs Date.. 21s1 November 2024 The notes on pa9es 9 10 19 lom part of Ihese account8. SECTOR 3 STOCKPORT STATEMENT OF CASH FLOWS FOR THE YEAR ENDING 31 MARCH 2024 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES 2Q24 2,023 Nel movement in funds Add back deprecialion Decreasellincrease) in debiors Incre8sel{unls do not include any adju81ments that would be necessary il Ihe funding $ourees shoukl ¢e4$e. 20 CONTROL OF THE COMPANY Control ol the company lies with the volunteer Iruslees name(l on P8ge 1. 21 POST 8ALANCE SHEET EVENTS The Iruslee5 consider Ihat there are no other slgnlficanl po81 bglance 8heet events that impact on the financial statements 8$ presented,