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2024-03-31-accounts

Company Registration No. 06993614 Charity Registration No. 1138691

KIDZ KONNEKT

(A Company limited by guarantee)

Annual Report and financial statements

for the year ended 31 March 2024

KIDZ KONNEKT

(A company limited by guarantee)

Contents
Page
Legal and Administrative details of the charity
Trustees' Report 1 - 4
Independent Examiner's Report 5
Statement of Financial Activities 6
Balance sheet 7
Notes to the financial statements 8 - 17

KIDZ KONNEKT (A company limited by guarantee)

Legal and Administrative Information

Company number 06993614
Charity Registration 0702394
Start of financial year 1 April 2023
End of financial year 31 March 2024
Council of Management:
Trustees and Directors:- Mrs Emma Lonsdale
Mrs Karen McGarrity
Mr Ian Williams
Mr Nigel Horne (from 29 June 2023)
Company secretary
Legal status Company limited by guarantee
Legal Name Kidz Konnekt
Charitable Status Registered Charity No. 1138691
Correspondence address
and registered office Eston Leisure
Normanby Road
Middlesbrough
TS6 9AE
Bankers Yorkshire Bank
7 Linthorpe Road
Middlesbrough
TS6 9AE
Independent Examiner Peter Winter MA FCCA FCIE
Chartered Certified Accountant
20 Hallam Grange Road
Sheffield
S10 4BJ

KIDZ KONNEKT

(A company limited by guarantee)

Trustees' Report for the year ended 31 March 2024

The Trustees, who are also directors for the purpose of company law, present their report and the financial statements for the year ended 31 March 2024.

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 as the company qualifies as a small company.

Structure, governance and management

Governing Document

Kidz Konnekt was established on 18 August 2009 under a Memorandum of Association and is governed by its Articles of Association, as amended by special resolution dated 21 July 2016. It is a charitable company limited by guarantee and members of the company are each required to contribute an amount not exceeding £1 should the company be wound up while remaining a member. or within one year after ceasing to be a member The company is a registered charity in England and Wales.

Appointment of the Executive Committee

The Trustees are collectively known under the company's Articles as the Executive Committee, who are required to serve as members of the charitable company. The Executive Committee is made up of Trustees who are elected by the members. Trustees have the power to appoint new trustees until confirmed at the next AGM. At each AGM one third of the Trustees are required to resign and stand for re-election.

The Trustees, who are also directors for the purpose of company law, who served during the year and up to the date of signature of the financial statements are as follows:

Mrs Emma Lonsdale Mrs Karen McGarrity Mr Ian Williams Mr Nigel Horne (from 29 June 2023)

None of the trustees has any beneficial interest in the company.

Trustee induction and training

New trustees will meet with existing trustees prior to recommendation for appointment, during which time they will have explained to them the vision and strategy of the charity. New Trustees are provided with the Charity Commission's publications for intending trustees.

Each Trustee is required to meet specifications concerning eligibility, personal competence, specialist skills and local availability. New trustees are inducted into the working environment of the charity.

Organisation

The members of the Executive Committee are responsible for setting the strategic objectives and establishing policy.

Risk Management

The Executive Committee has reviewed the exposure to the major strategic business and operational risks faced by the charity. The Executive Committee believes it has in place adequate systems to monitor and control health and safety issues as they arise. The Executive Committee has continued to reorganise and streamline all processes of the charity. This has involved optimising staffing levels, strengthening existing budgetary controls and introducing management processes to ensure the long-term financial viability of the charity.

Page 1

KIDZ KONNEKT

(A company limited by guarantee)

Trustees' Report for the year ended 31 March 2024

Objectives and Activities for the Public Benefit

Policies and objectives

The objects for which the company was established are to act as a resource for young people up to the age of 25 years living in Redcar and Cleveland by providing advice and assistance and organising programmes of physical, educational and other activities as a means of:

Public Benefit

The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on Public Benefit when reviewing the charity's aims and objectives and in planning future activities and policy for the year.

Review of Activities and Performance

Kidz Konnekt's new bespoke Youth Service has now been defined over the last year and has attracted the necessary funding to continue to move from pilot scheme/s to this new model which is now embedded. The service is now made up of multiple teams providing a wide range of activities under one roof. We have the Emotional Health & Wellbeing Team, Outdoor Education & Activities Team, Generic Open Door Youth Service, Sport & Physical Activities Project, Art & Music project, Young Leaders program and we are working in partnership with local schools to support young people's engagement in education.

The aim of the re-structure was to offer young people a wide range of services that reflected the needs of our community of young people. The organisation's objectives are now based around the development of Teams of professionals who can support young people to Re-connect with Themselves, Re-connect with Others, Re-connect with the Outdoors & Nature, Re-connect with Physical Activity, Re-connect with the Arts and support Re-connection with Education.

The next big project the organisation embarked on is the development of the site and its ability to provide a wide range of activities. We have acquired the green field site around the building which we are developing into an Outdoor Activities and Learning Area. This is large scale development for the Charity and is well underway.

Looking to the future we are planning to strengthen the Outdoor Activity arm to support income generation and the wider aims and objectives of the Charity.

Financial Review

The trustees report a surplus of £22,595 (2023: Deficit £65,406) for the year under review. Unrestricted reserves amount to £34,482 (2023: £26,539) at the year-end.

Investment powers and policy

In accordance with the charity's Memorandum and Articles of Association, the trustees have the power to borrow and invest in any way they so wish. The Executive Committee considers it is appropriate for the funds of the charity to be retained in the charity's bank account to meet the daily requirements of the charity. The trustees do not consider there are funds in excess of the daily requirements for investment.

Page 2

KIDZ KONNEKT

(A company limited by guarantee)

Trustees' Report for the year ended 31 March 2024

Reserves Policy

It is the policy of the charity to maintain unrestricted funds which are free reserves of the charity which can be used in furtherance of its objectives. This provides sufficient funds to cover the management, administration and support costs for at least three months and to respond to other projects which the charity may wish to support in the future. The free reserves of the charity are its unrestricted funds excluding those in the form of fixed costs. Free reserves at 31 March 2024 are £24,482 compared to £11,639 at the end of the previous year. The free reserves at the year end were not sufficient to meet the policy of the charity and the Executive Committee is actively considering ways to remedy the situation.

Plans for the future

Next year we want to extend further the youth services we provide with the creation of a new Emotional Health and Wellbeing Project. We are looking to develop the resources of the Centre and be able to provide more activities from the hub. The further development of the Konnekt Outdoors project will see a development into an enterprise initiatiive to support sustainablity in the future.

Going concern

After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate committed external funding to continue in operational existence for the twelve months following the approval of this report. In view of this expectation, the trustees continue to adopt the going concern basis for preparing the financial statements.

Statement of trustees' responsibilities

The trustees (who are also directors of Kidz Konnekt for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and regulations. Company law requires the trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statements, the Trustees are required to:

The trustees are responsible for keeping adequate accounting records that 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.

Independent Examiner

Peter Winter MA FCCA FCIE was reappointed Independent Examiner during the year and the Trustees recommend that he remains in office until further notice.

Page 3

KIDZ KONNEKT

(A company limited by guarantee)

Trustees' Report for the year ended 31 March 2024

This report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.

This report was approved by the Executive Committee on 21 October 2024 and signed on its behalf by:

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

Karen McGarrity

Trustee on behalf of the Executive Committee of Kidz Konnekt.

Page 4

KIDZ KONNEKT

(A company limited by guarantee)

Independent Examiner's Report to the Trustees of Kidz Konnekt

I report to the charity Trustees on my examination of the unaudited financial statements of Kidz Konnekt for the year ended 31 March 2024.

Responsibilities and basis of report

As the charity’s trustees of the Company (who are also the directors of the company 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 Company are not required to be audited for this year 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 charity's gross incme exceeded £250,000, your examiner must be a member of a body listed in Section 145, Companies Act 2011. I confirm that I am qualified to undertake the examination because I am a Fellow of both the Association of Chartered Certified Accountants (ACCA) and Association of Charity Independent Examiners (ACIE), which are two of the listed bodies.

I have completed my examination, I confirm that no material matters have come to my attention which gives me cause to believe that:

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.

.................................................. Peter Winter MA FCCA FCIE Chartered Certified Accountant 20 Hallam Grange Road Fulwood Sheffield S10 4BJ

21 October 2024

-

Page 5

KIDZ KONNEKT

(A company limited by guarantee)

Statement of Financial Activities (incorporating Income and Expenditure Account) for the year ended 31 March 2024

Notes Unrestricted
Restricted
Funds
Funds
Income and Endowments from:
Donations and legacies
5
17,328
-
Investments
-
-
Charitable activities
6
71,618
167,000
Other incoming resources: Gain on asset sales
-
-
Total incoming resources
88,946
167,000
Resources Expended
Charitable activities
7
80,308
152,348
Governance Costs
8
695
-
Total Resources Expended
81,003
152,348
Net Incoming/(Outgoing) Resources for the year
7,943
14,652
Funds at 1 April 2023
26,539
16,850
Prior year adjustment
-
-
Funds at 31 March 2024
34,482
31,502
2024
Total
17,328
-
238,618
-
255,946
232,656
695
233,351
22,595
43,389
-
65,984
2023
Total
1,343
-
210,310
-
211,653
276,384
675
277,059
)
(65,406
88,949
19,846
43,389

The Statement of Financial Activities includes all gains and losses in the year. All incoming resources and resources expended derive from continuing activities.

The Statement of Financial Activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

The notes on pages 8 to 17 form an integral part of these financial statements.

Page 6

KIDZ KONNEKT

(A company limited by guarantee)

Balance sheet as at 31 March 2024

2024 2024 2023 2023
Notes £ £ £ £
Fixed assets
Tangible assets 10 10,000 14,900
Current assets
Debtors 11 2,380 11,585
Cash at bank and in hand 54,299 17,579
56,679 29,164
Current Liabilities
Creditors and accruals 12 (695 ) (675 )
Net current assets 55,984 28,489
Total assets less current liabilities 65,984 43,389
Net assets 65,984 43,389
The funds of the charity
Restricted Funds 13 31,502 16,850
Unrestricted Funds 34,482 26,539
Total charity funds 65,984 43,389

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

For the year ended 31 March 2024 the charitable company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The trustees have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

The trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The financial statements were approved by the Board on 21 October 2024 and signed on its behalf by

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

Mrs Karen McGarrity Trustee

Company Registration Number: 06993614

The notes on pages 8 to 17 form an integral part of these financial statements.

Page 7

KIDZ KONNEKT

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2024

1 Basis of Preparation

1.1 Basis of accounting

These financial statements have been prepared on the basis of historic cost in accordance with:

2 Accounting Policies

2.1 Form of Financial Statements

2.2 Incoming resources

Page 8

KIDZ KONNEKT (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2024

.................... continued

2.3 Expenditure & Liabilities

2.4 Tangible fixed assets and depreciation

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the net book value of the asset and is recognised in net income/(expenditure) for the year.

2.5 Taxation

The charity is not liable to income or corporation tax on its charitable activities. Expenditure includes input VAT as the charity is not registered for VAT.

2.6. Critical accounting estimates and judgements

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and asociated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period or in the period of the revision and future periods where the revision affects both current and future periods.

Page 9

KIDZ KONNEKT (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2024

.................... continued

2.7. Financial instruments

The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues ' of FRS 102 to all of its financial instruments

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilitiies if payment is due within one year or less. If not, they are presented as non-current liabilitiies. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

2.8 Impairment losses

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

3 Trustees' remuneration and related party transactions

Page 10

KIDZ KONNEKT

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2024

.................... continued

4 Limited by Guarantee

The charity is limited by guarantee and each member is required to contribute a sum not exceeding £1 should the company be wound up while they are a member, or within a year after they cease to be a member.

5 Donations and legacies

Donations and legacies
Unrestricted Restricted 2024 2023
Funds Funds Total Total
£ £ £ £
Donations 9,885 - 9,885 1,343
Crowdfunder 7,443 - 7,443 -
17,328 - 17,328 1,343
Prior year analysis: 1,343 - 1,343

Page 11

KIDZ KONNEKT (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2024

.................... continued

6 Incoming resources from charitable activities

Incoming resources from charitable activities
Unrestricted Restricted 2024 2023
Funds Funds Total Total
£ £ £ £
The Ballinger Charitable Trust 20,000 - 20,000 15,000
The National Lottery Community Fund - 50,000 50,000 -
The National Lottery Community Fund - Capital - 20,000 20,000 25,000
BBC Children in Need - - - 10,500
Groundworks Teesvalley Pathways - - - 600
The Henry Smith Charity - 60,000 60,000 -
Holiday Activities Fund (HAF) 23,254 - 23,254 16,237
School Work 28,364 - 28,364 46,914
Sirius Minerals Foundation - 37,000 37,000 37,400
Sport England - - - 7,968
Tees Valley Community Foundation - - - 12,138
Teesside University - - 10,863
You've Got This Offer - - - 27,690
Total incoming resources from charitable activities 71,618 167,000 238,618 210,310
Prior year analysis: 102,304 108,006 210,310

All income is derived from activities within the United Kingdom.

Grants are awarded to the charity on the basis of agreements containing conditions as to the purposes for which funds may be expended. Where such conditions are not met, it is possible that grants may become repayable to the funding organisations. The trustees believe that all specified conditions have been met and no grants will be repayable except as otherwise provided for in these financial statements.

Page 12

KIDZ KONNEKT

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2024

.................... continued

Unrestricted Unrestricted Restricted Restricted Restricted 2024 2024 2023
Funds Funds Total Total
7 Charitable activities: £ £ £ £
Wages and salaries 25,625 117,474 143,099 166,257
Employer's NI contributions 1,168 5,354 6,522 6,684
Employer pension contributions 691 3,167 3,858 4,225
Sessional staff 2,890 13,255 16,145 5,855
Volunteer Expenses 483 - 483 40
Travelling and subsistence 6,032 3,621 9,653 14,971
Centre activities and events 18,152 1,173 19,325 11,624
Advertising 930 - 930 1,328
Insurance 2,378 - 2,378 1,192
Website Design and software 40 - 40 19,750
Repairs and renewals 1,402 - 1,402 -
Depreciation on motor vehicles 4,900 - 4,900 4,946
Small items of equipment - - - 14,655
Minibus expenses 1,682 - 1,682 -
Support costs
Staff training 613 - 613 1,660
Office costs 6,313 300 6,613 7,927
Premises Expenses 2,800 6,000 8,800 8,000
Management expenses, incl legal fees 4,209 2,004 6,213 7,270
80,308 152,348 232,656 276,384
Prior year analysis: 168,997 107,387 276,384
8 Governance Costs
Unrestricted Restricted Total Total
Funds Funds 2024 2023
£ £ £ £
Independent Examiner's fees 695 - 695 675

Page 13

KIDZ KONNEKT

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2024

.................... continued

9
Employees
Number of employees
The charity employed 8 part-time and 4 full-time
employees during the year under review.
Average number of employees
Employment costs
Wages and salaries
Social security costs
Employer's pension contributions
Social security costs include the following:
Gross Employer NIC
Employment Allowance
No employee received remuneration above £60,000.
2024
8
2024
£
143,099
6,522
3,858
153,479
2024
£
11,522
)
(5,000
6,522
2023
9
2023
£
166,257
6,684
4,225
177,166
2023
£
11,684
)
(5,000
6,684

The charity operates a defined contributions pension scheme for its employees under the NEST scheme. Employer's contributions are currently at a rate of 3% of gross salaries.

Page 14

KIDZ KONNEKT

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2024

.................... continued

10.
Tangible fixed assets
Motor
vehicles
Total
£
£
Cost
At 1 April 2023
19,846
19,846
Disposals
-
-
At 31 March 2024
19,846
19,846
Depreciation
At 1 April 2023
4,946
4,946
Charge for the year
4,900
4,900
At 31 March 2024
9,846
9,846
Net book values
At 31 March 2024
10,000
10,000
At 31 March 2023
14,900
14,900
11
Debtors and Prepayments
2024
Debtors
£
Debtors - amounts due to Kidz Konnekt
-
Prepayments
2,380
2,380
12
Creditors: amounts falling due
2024
within one year
£
Independent Examiner
695
695
2023
£
11,585
-
11,585
2023
£
675
675

Page 15

KIDZ KONNEKT

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2024

.................... continued

13 Restricted Funds

Restricted Funds
National Lottery
National Lottery - Capital
BBC Children in Need
Henry Smith Charity
Sirius Minerals Foundation
Tees Valley Community Fund
1 April
Incoming
Outgoing
31 March
2023
Resources
Resources
Transfers
2024
£
£
£
£
£
-
50,000
)
(50,000
-
-
20,000
-
-
20,000
5,250
-
)
(5,250
-
-
-
60,000
)
(60,000
-
-
9,350
37,000
)
(37,098
-
9,252
2,250
-
-
-
2,250
16,850
167,000
)
(152,348
-
31,502
31,502

The National Lottery Community Fund grant of £50,000 is the first instalment of a total grant of £150,000, spread over a three year period from November 2022 to October 2025. The funding will support Kidz Konnekt to deliver the Re-Konnekt project across South Bank, Grangetown and Great Eston areas of Tees Valley. The funding will help the charity to offer a wide range of Children and Young People's Youth Services, encouraging positive activities and providing facilities and resources.

The National Lottery Community Fund grant of £20,000 will be used to install safety fencing around a piece of land adjoining the charity's Youth and Community Centre. This installation will enable the charity to develop the land into an outdoor learning and activity space. This will provide young people with a range of outdoor learning activities and events to help improve their health and wellbeing.

The grant of £60,000 from the Henry Smith Charity is part of a Strengthening Communities grant of £180,000 for charities providing support for children and young people from disadvantaged communities in Middlesbrough. The grant supports the running costs of the charity over a three year period beginning in May 2023.

Sirius Minerals Foundation provided a two year grant of £74,400, payable in two instalments of £37,400 and £37,000 respectively. The grant supports the charity's 'Re-Konnekt' project over a period of two years from 1 April 2022 to 31 March 2024.

Tees Valley Community Foundation supports community funding and project grants. The amount received is a revenue support grant following a successful application for a community project grant.

14 Capital commitments

The trustees confirm there are no capital commitments at 31 March 2024.

15 Contingent liabilities

The trustees confirm there are no contingent liabilities at 31 March 2024.

Page 16

KIDZ KONNEKT

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2024

.................... continued

16 Post balance sheet events

The trustees confirm there are no events occurring between 31 March 2024 and the date of approval of these accounts that require disclosure in these accounts.

Page 17