NEAR NEIGHBOURS BFtINCIlNI) l?EOPIE fiiciF.IHI.R TRUSTEES, REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2022 Cgmp•ny Nufflb•r. 07601317 th•rMy Ilumkr.. 1141426 TRUSTEES, OFFICERS AND ADVISERS CONTENTS Chalr Princi al Officèrs Rachel Whbttlngton Group CEO to31.12.2022 Trustees. Offlcers and Advisers Ms. Chalkley Trustees Introdurtlon from Chalr ol the Trustees Adam Edwards, Group Deputy CEO Acting Group CEOfrom 01.01.2023 Elizabeth Carnelley Director of Partnershlps fte￿I Dr Rkhad Sudworth Revd Dr Malcolm Brown Report ol the Trustees Ms. Rachel Whlttlngton to 31.12.22 Review of 2022 Re¥d Je551ca Foster Future plans Sarah Wallace BEM Director of Programmes and Innovation Revd Catherlne Alllson Dellverin8 publlc benefit Katle Hodklnson Vary Revd Roger5 Go¥ender Strurture, Governance and Management Falth Advlso Panel Advlsers Bank- Natlonal Westmlnster Bank Pl¢ Vlctoria IBI Branch PO Box 1357 169 Vlctorla Street London SWIE SNA. Financial Review io Darty Blddulph Revd Dr Rl¢hard Sudworth Rabbl Nlcky Uss Dan Bacall Sarwat Tasneem ImamQarlAslm Muna Chauhan SanSay Jagatla Navdtep Sln8h Manchandan Kaur Sandhu The Trustees, Responsibility for preparln8 Annual Financial Statements li Independent AudStor's Report 12 Audltor5- Mazars LLP 6 Sutton Plaza Sutton Court Road Sutton Surrey SMI 4FS Statement of Financial ActlvStles 16 Balance Sheet 17 Statement ot Cash Flows 18 5ollcltors- Legal advlte is provided by.. Anthony Colllns Sollcltors LiP 134 Edmund Street Birmingham B3 2ES Notes to the FSnancial Statements 19 i5tered office NEAR NEIGHBOURS The Found ry, 17 Oval Way, London SEII 5RR A company limited by 8uaTantee. Registered number 7603317 INTRODucfioN FROM CHAIR OF THE TRUSTEES In 2022, following our emergence from the Covid pandemic, we continued our work buildin8 and mobllislng a national movement of faith-based partners working together to serve local people and organisations who know their communities best. We equipped people to make a bigger difference in their communhy through leading high impact programmes, and amplified local voices, speakine out to influence policy and decision makers. The deep concerns and anxietles fek by Eastem European communities, and tenslons around migration In local communitles in general followin8 Russia's invasion of Ukralne caused some challenges however otsr coordinators were well placed to respond, given their breadth of community relationships. It wa5 a difficult year Ilnancially as our government fundin8 finished on the 1>1 of April 2022 and consequently there were a number of redundancies amongst co-ordlnators employed by our local partners. We would Ilke to expre55 ourthanks and appreciation to all the coordinator5 for their hard work through the covid pandemic. In July 2022 the 8overnment provlded an Indlcation of future funding, and we were able to restart our core work with slx of our local hubs in September 2022. Thi5 was a contraction from the eleven local hubs we had worked wlth In the previou5 three years. It Is a te5tlmony to the fOOtedness of Near Nelghbours in diverse, local communities that durlng these ongoing uncertainties and anxleties, the Near Neighbours programme continued to offer 5LlPPOrt and 5tren8then communitles. On behalf of the Trustee5, 1 would Ilke to thank the team who have worked 50 hard in such challen8in8 clrcumstances to deliver a positlve year for Near Nei8hbours. Thank you too to our Falths Advisory Panel, whSch contlnues to provlde added at¢ountablllty to our or8anlsation that serves communltle5 across faith5 and beliefs. Sue Chalkley OBE, Chalr of Trustees REPORT OF THE TRUSTEES FOR THE YEAR TO 31 DECEMBER 2022 The Trustees present the Annual Report and Financial Statements of the charity for the year ended 31 December 2022. The Finantial Statements have been prepared in accordance wlth the accounting policies set out in Note I to the Financial Statements and Comply with the Memorandum and Articles ol Association, the Companies Act 2006 and Charities Act 2011, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their Financial Statements in accordance with the Flnanclal Reportlng Standard appllcable in the UK and Republlc of Ireland effectlve I" January 2019. OBJECTIVES AND ACTIVITIES Near Neighbours was created bythe Church Urban Fund ICUFI and the Archbishops, Council ofthe Church of England followin8 the award of £5m by the Department for Levelling Up, Housing and Communities Iformerly MHCLG - Ministry of Housing, Communities and Local GovErnmentl in March 2011. Since then, further grants have been received,. however. the pro8ramme is not currently funded by the government (April 2023 onwardsl except for the Windru5h 8rant programme, but NN has a small amount of trust fundlng for our Catalyst pro8ramme. The Near Neighbours programme works to brin8 people together In communities that are reli8iOU51y and ethnically diverse, so that they can get to know each other better, bulld relatlonships of trust and collaborale on inStlatlve5 that Improve the local communlty they Ilve In. The charity aims to strengthen personal relationships and al the same time strengthen civil society, to create a more cohesive society where people Ilve together respecting the differences they have with oihers and bulldlng a flourSshing life together. The programme has operated In the last year In Birmingham, Lelcester, LLrton, We51 London, West Yorkshlre, and Lancashlre. Our maln oblertlves: Soclal Interacilon- by buildSn8 personal relationshlp5 of trust, so that people understand each other better. We work wlth people of all faith5 and none, wlth the alm to develop positlve relationship5 that provide a foundation for people to work together. Soc181 Actlan by buildlng up civil 50clety across dlvldes of faith and ethnlclty. We provlde the opportunity for people to come together and work on cre•ting positive change In thelr neighbourhood. There are currently four maln strands to the Near Nelghbour5 work.. Near Nei8hbours Hubs and Partners: Building dlverse and resillent relatlonal networks amongst faith and community groups across different faiths and ethnic backgrounds, and equippln8 leaders for effettive collaboration and communr(y engagement, including wornen and youn8 people of all back8rounds. Near Neighbours Small Grant$'. Bringing people together to develop. lead and participate in local projects that involve people of different faiths and ethnicities to improve communities through the provision of grants of between £250 and £4,WD. Catalyst.. A leadership programme that equips young people from diverse backgrounds by building their skills and capacities to be leaders and influencers in a multi-ethnic 3nd multi-faith society. Real People, Honest Talk: Creating safe spaces to address difficult local i55ues, through facllitate(I community-based conversations. We also support the v40rk ol Places of Welcome, building a network of local centres where people find Support and a warm welcome, and can contribute and participate. REVIEW OF 2022 During 2022 we were able to give 34 small grants worth £IIOk,' mobllise 483 volunteers,. create 150 partnerships between faith groups, voluntary 8roup5 and statutory Organisations,. equip 2746 local leaders through training, events and seminars,. hold four Catalyst young leaders programmes for 93 young people,. and open 168 new Places of Welcome, so that there are now over 600 Places of Welcome openln8 every week in local communlties where people can belong, connect and contribute. In the Spring of 2022 a highllght was International Women's Day celebrations across all reglons. In Luton for example, Near Nel8hbours supported three events alon8slde Ghar se Ghar, Simply Deez, and Shanthona all of which celebrèted the contribution5 of women of different faiths and profe55ions and also hlghlighted organlsations and resources that help keep women safe. In Wolverhampton, the International Women's Day events brou8ht tO8ether women from Chrlstian and Musllm back8rounds, African communities, refugees, older and younger age group5, and YMCA members, for conversations on range of hlstorkal and contemporary Issues. Our coordlnator Shai reflected on the event.. 'Conversatlons on the day Sncluded sharlng reflections on current Issues such as cost of Ilvin8 and the Impact of covid. From thls the Women Togcther Wolverhampton have asked whether they can meet regularly at the YMCA and to invlte Women of Wolverhampton to their events. From this event local frlendshlp5 have been built and the women have declded to take part In the weekty coffee mornlnB too.. Our coordinators have mède efforts to reach out to Eastern European communities in their respectlve reglons and to strengthen relationship5 between Eastern Europeans and other communlties. For example, In Birmlngham, Near Neighbours coordlnator Rabiyah worked closely with Centrala Communlty to develop an exhlbltion at Birmingham City Universlty, sharlng Ima8e5 and storie5 from people in Ukraine and to bring together Sikh, Musllm, Chrlstlan, Hindu, and non.religious leaders to partlclpate In the exhibit workshop5. One of the small 8rpnt-funded pioject5 has supported the Kairos Housing project in Blackburn to connect with local partners of varied faiths and ethnlcf(ies, mobilise volunteers. and raise awareness about the pll8ht of destitute asylum seekers. At the launch event of ihe project* people of diverse backgrounds came together to share experlence5. learn more about the challenges of seeking asylum In their local community, and brainstorm together about how they could support their local hub. Leadership ft)r Effectlve Change has been one of the primary means through which we have Increased the leadership capacity of people from a range of backgrounds. In the 5prin8 of 2022 we ran sessions in Peterborough, and our coordinator Femi focused on the recruitment and training of leaders from African and Carlbbean commvnltle5. Given the increased attention to 155ues of racial Injustice brought to li8ht by the Black Lives Matter movement, It has been important to focu5 resources on building the capatities and amplifying the voices of Black leaders. In Leicester the focus was on young leaders from UKME backgrounds. Participants 8athered for slx onllne sessions, which covered the topics of siorytelling, building relational power and a relational CLJlturÈ through 1-2-1 meetings. developing effective c3mpaisns and taking public action, followed by a meeting in person. In 2022 we were able to restart Real People Honest Talk IRPHTI following the pandemic and so in the spring of 2022 we held the two Big Conversalions, where people Involved in the small conversations were able to join together with local leaders, polity makers and statutory authorities. Acr05S the two participating hubs (Noltingham and 8irminghaml, Near Neighbours facilitated 23 small conversations and two Big Conversations. We engaged a total of 265 attendees of whom 27% were young people and 58% were women . Particlpants came from a wide range of ethnicities including Caribbean, African, Arab, and South Asian. The RPHT conversatlons in Birmingham, which brought together partlclpants from ISRA UK and Mlgrant Help, have led to a number of positive outcomes, The sessions have fostered ongoing frlend5hlps, the inteBration of conversatlonal English support during cooking club sessions, and Increased access to other seivices for migrants. Paniclpant5 have reported that thelr rnental health and wellbeing has irnproved as a result of being part of the group and forming new friendships. Several of the migrants who participated in RPHT in Birmingham have also started to volunteer at a local charity shop. In Nottingham two local MPS came to the Big Conver53tion,' and the Heya group, women with asylum seeker backgrounds, has now developed a PiDject called "Hand In Hand" deslgned to brlng together student, refugee, and asylum seeking women and their families for heilih and wellbein8, craftin& and self-defence sessions, following on from RPHT. Another significant succe55 of 2022 wa5 our administratlon and evaluatlon of the Wlndrush Day Grants Pro8ramme. We awarded 35 grants, wlth a total value of £500,000. to different types of organi5atlons across England Includin8 5 local authorities, I national and I re8ional museum, and 28 community-based organi5ations. Grantees employed a range of creative approaches to achleve the alms of the scheme. Of the actlvities undertaken by grant recipients, half involved music or performance arts1S0%1 with other actlvities includin8 5POrtln8 activities, communlty street parties or carnivals, stOTYtelling project5, radlo prolects, art Inslallatlonslexhlbltlons, and work with schools. ToBether, WDGS projects tapped inlo the a55et5 and Creative gifts of their local communitle5 to celebrate the Windrush generations and deepen understand in8 of the Windrush legacy. our coordinator in Luton, David Jonathan, was honoured to receive the Outstandlng Peace Champion Award from UNA LLrton and an honorary canonry from the Bishop of St Albans. Flnally. we sought to Identify opportunitles for greater Integration and focus so that, over time, the members of the CUF group lof which Near Neighbours 15 partl can deliver more impact and value for money through closer allgnment. CUF commlgsloned a governance review acr05S the CUF group, led by Lucent Coiisultlllg, the outcomes of wl)ich coiitiiiued to be I'eviewed by CUF, NN ai)d JFF Ti'usle¥s iii 2022. The immediate action taken, drlven by our desire for 8realer slmpllcity, was to operate the CUF and NN'S boards co-terminously. This has increased the awareness of each charity's work across the trustee group and le55ened the reporting impact on the executive team, FUTURE PLANS We look forward to the future and belleve our work Is more needed now, than ever before. We have commissioned three pieces of work to look at and evaluate our impact. These include a video project interviewing people involved in our work,. an impact study of Real People Honest Talk being undertaken by Clear Viev4 Research,. and an evaluation by Common Vision, all of whom wlll report in the summer of 2023. In 2023 Near NeSghbours will contlnue to: Look for opportunities to bring people together from different backgrounds and faiths in order to transform local communities together, and 10 seek Investment in our artlvbties. Run online seminars and provide resources on our web51te for our onllne growSng Neor Nel8hbours network Support the development and growth of Places of Welcome Iwww. Places of Welcome Is a growing network of local communlty groups provSding their neighbouihoods with places where all people feel safe to connect, belong and contribute. Offer Catalyst courses Ileadershlp programmes for young people 16-21 from diverse back8round51- and seek further fundin8 to expand this work Administer the Windrush grants on behalf of the government to celebrate and mark the tontribution of the Windrush 8eneration. This year120231 marks the 75, anniversary of Windrush. Golns Concern The Trustee5 have considered the actlvltles, together wlth the factors likely to affect Its future development, performance, and flnancial p051tion to determlne whether Neor Neighbours, financlal statements can be prepared on a golng concern basi5. The forecasts and projettions, takin8 account of reasonably possible changes in charity perforrnance show the charity should be able to operate withln the level of forecast cash resources. It is recognised that Near Nelghbours benefits from regular and significant fundin6 Irom DLUHC. At the date of approval of these financial Statements there Is Sndication, but no written conflrmatlon, that funding May continue in the fLJture. In light of this matter, Near Neighbours has received a letter of support from its parent tompanyi Church Urban Fund ICVFI, that in the event of funds not materialising CUF will 5UPPOrt the actlvities of Near Neighbours in the Short term to ensure that it continues a5 a going concern. Thls has been on the basis that actlvltles deemed to be essential to the continuatlon of the NN network support the overall mission of the CUF group including the retention of key staff working on the NN programme. DELIVERING PUBLIC BENEFIT Near Neighbours brings people together in diverse communities. helping them to build relationships and collaborate to improve the local community in which they live. Near Neighbours also financially supports and works with a wide ran8e of community and faith organi5ations, all of which are workin8 to brin8 communities together. The Trustees have reviewed the guidance on public benefit issued by the Charity Commission each year and CDnsider that Near Neighbours, aims and activities, as set out above, fullil the criteria. The Trustees STRucfuRE, GOVERNANCE AND MANAGEMENT Governlng Documents Near Nelghbours Is both a company limited by guarantee (Registration Number 076033171 subject to the Cornpanle5 Act 2006 and a charlty reBI5tered wlth the Charity Commisslon (Charlty Number 11424261. It is governed by Its Memorandum and Artlcles of Assoclatlon dated March 2011. Govemance Structure The Dlrectors of the company are known as Trustees. The Artlcles of Assoclatlon allow for up to thlrteen Trustees, slx beln8 nornlnated by the Archbi5hop5' Councll and seven by CUF. The Trustee5 meet four time5 during the year to review 5trategyi operational and financial performance In conlunction wlth the CUF Group Senlor Management Team ISMTI. The Trustees are listed on page 2 of thi5 report. None of the Trustees receive any rernuneratlon or beneflts from Near Neighbours. Expenses reclalmed by the Trustees during the year are set out in note 5 to the Flnanclal Statements. Tru$te• Inductlon and Tralnlni All Trustees on appointment receive a detailed briefin6 on the Memorandum and Articles of Association, the objectives of the programme and the agreements with CUF, DLUHC and delivery partner5. Trustees undertake an iniluction programme which covers the formal governante arrangement and includes our legal 5tructure5 and obllgatlon5, charltable priorltle5 and work. Trustee5 are a150 given the opportunity to visit projert5 and are kept abreast of developments at each Board meetlng through a detalled progress report by Senlor ManaBement and è cycle of presenlalions bv partners. Monagement and Oryanlsjtlonal Structure The day-to.day management and delivery of the Near Neighbour5 pfo8Tamme 15 delegated to the CUF Group Chief Executive, Deputy Chief Executive, and the Senior Management Team, namely the Dlrectors of Partnerships, Programmes and Innovation, and Finance and Governance. The Senior Management Team works tlosely with other members of CUF'S staff team lrts ultimate parent company). Formal reportin8 by the Senior Mana8ement Team to the Board take5 place re8ularty throLbghout the year. Principal Risks The Trustees have considered the key potential risks facing the Near Neighbours programme and how they are managed which are outlined below.. RISK TYPE Financial POTENTIAI RISK Failure to secure long-term future fundlng for the Programme MITIGATION OiversifyinE our income streams bv pursulng a number of different funders Major 8rant funders are actively mana ed b CLIF Strong initial due diligence towards all applicants Operntlonal Fraud In grant5 programme5 Constant monitoring of funding and reportSn8 Understandlng of legal responsibilitie5 Loss of key stalf Wider sharing of responsibilities has ensured all team has Inslght and understanding. All staff includlng hubs are extremlsm aware Extremlsm Deep dlve due dlllgence for new applitatlons Stron8 community relatlonshlps to draw on Relatlonal Tar8et 8roups are reluctant or slow to engage Our local hubs have a trusted local presence and deep networks. Reputatlunjl Reputatlonal r15k from adverse publicity Advice and support avallable from CUF and through the Church of England Local and natlonal medla Coverage are monitored on an ongoing b3515 Robusl agreements in place providing clarlty on expertatlons and delivery Key Management Personnel Remuneratlon The Tru5tee5 consider that the Board of Trustee5, the CUF Group Chief Executive, Deputy Chief Executive, and the Senior Management Team, namely the Directors of Partnerships, Programmes and Innovation, and Finance and Governance, comprise the key management personnel of the charity In charge of directing, Controlling, runnln8 and operating the charity on a day-to-day basis. All Trustees give their time freely and none of the Tru5tee5 received remuneratlon in the year. Details of expenses reclaimed are Set out in ftote 5 to the Flnancial Statements and related party transartions are disclosed in note 12 of the accounts. The salarie5 of key management are reviewed annually and normally increased in accordance with Inflation. In view of the nature of the charityi the Trustees benchmark against pay awards in similar charitable organisations. The Trustees of CUF sel the salary of the CUF Group Chlef Executive and Deputy as the roles are shared between all CU F charltles (parent and subsldlarlesl. Small Company Exemptlon The company has taken advantage of the small company exemptlon, as it is within the threshold criteria. The accounts have been prepared in accordance wlth the speclal provlslon contalned in the Companies Att. FINANCIAL REVIEW Income Income for the year to 31" December 2022 was £526k12021'. É2.3ml, a slgnlflcant decrease from the previous year. Income was largely received from Department for Levelling Upi Housing and Communitie5 IDLUHCI, as well as other trust5, restricted lo the Near Neighbours programme. Empendtture The total expendSture on the three charitable actlvltle5 was £520k12021.. £2.2ml. The charitable actlvltles together with their associated expendlture for the period are.. Bulldlng Networks.. £244k12021'. £935kl this expenditure printipally reflects the grants to extend the capacity of the Local Presence and Engagement centres, set out In notes 3 and 6 to the account5. Bulldlni Capaclty by these three activities.. ts Young LeadeTS- £56k12021.. £lllk o Real People Honest Talk - £34k12021.. £10Skl o Places of Welcome - £6k12021.' £21kl This expenditure principally reflects the grants to our partners, set out in notes 3 and 6 to the accounts. Creatln8 En8apment: £180k12021'. £1.08ml repre5ent5the Near Nei8hbours Small Grants Fund, as set out in note 4 to the actounts. Resetves aftd Rèserves Pollcy All reserves are treated as restricted, and any reserves held at the year-end represent fund5 set aside for future programmes. There was a £156k balance in reserve5 at 31st December 202212021.. £150kl. io THE TRUSTEES, RESPONSIBILITY FOR PREPARING ANNUAL FINANCIAL STATEMENTS The law applicable to charities in England and Wales requires the Trustees to prepare annual financial Statements for each financial year that give a true and fair view of the Charity's financial activities during the year and state its surplus or deficit for the year and its financial position at the end of that year. In preparing annual financial statement5, the Trustees have followed best practice and: Selected suitable accountin8 policies and applied them consistently Made judgments and estimates that are reasonable and prutlent Followed appllcable Accountlng Standards and Statements of Recommended Practice Prepared the annual financial statements on the going concern basis. The Twstees are responsible for keeplng proper accountin8 records that disclose wilh reasonable atcuracy at any tlme the financial position of the Charity and enable them to ensure that the accounts comply with the Companie5 Act 2006. They afe also responsible for safeguarding the Charity's assets and for taking reasonable steps to prevent and detect fraud and other Irregularltles. The Trustee5 have overall responsibllity for ensurlng that the Charity h35 appropriate systems of control, financial and otherwlse. Each of the Trustees at the date of approval of thls report conflrms that.. So far as the Trustees are aware, there is no relevant audit information of whlch the Charity's udiiofs are unaware and The Trustees hève taken all the 5tep5 that they ought to have taken gs Trustees to make themselves aware of any relevant audit information and to establish that the Charity's audltors are aware of that informatlon. A¥dStors A proposal for Mazars reappolntment wlll be put to the 8oard In 2023. Approved by the Trustees on 181h July 2023 and signed on thelr behalf by: Sue Cholkley 08E, Chair of Tru5tee5 li Independent audltor's report to the members of Near Neighbours Oplnlon We have audlted the financial statements of Near Neighbour5 Ithe 'charity'l for the year ended 31 December 2022 which comprlse the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flow5 and notes to the financial statement5, including a Summary of significant accounting pollcies. The flnanclal reportln8 framework that has been applied in their preparation Is appllcable 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 Practlcel. In our opinlon, the financial statements.. Give a true and falr view of the state of the charlty's affaSrs as at 31 December 2022 and of St5 income and expenditure for the year then ended,. Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practlce,. and Have been prepared In accordance wlth the requlrements of the Companles Act 2006. asls for oplnlon We conducted our audit in accordance wlth International Standards on Audltlng IUKI IISAS IUKII and applicable law. Our responslbilities 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 wlth the ethical requirements that are relevant to our audit of the financlal statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responslbllities In accordance wlth these requlrements. We believe that the audSt evSdence we have obtalned Is sufflclent and appropriate to provide a basis fT)r uur vpiniuii. Conclusion5 relatin8 to 8oln8 concern In auditing the finantlal statements, we have concluded that the Trustees, use of the going contern basis of accounting in the preparation of the finantial statements Is approprlate. Based on the work we have performed, we have not identified any materlal uncertalntles relatlng to events or conditions that. individually or collectively, may cast sl8nilicant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statement5 are 3uthorised for i55ue. Our responsibilities and the re5ponsibilltles of the Trustees with respect to going concern are described in the ielevant Sections of thi5 report. Other Informatlon The other inlormation comprises the Snformation included in the Trustees, report, otherthan the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the trustees, report. Our opinion on the financial statements does not cover the other 12 information and, except to the extent otherwise explicitly stated in our report. we do not express ar)y form of assurance concluslon thereon. Our responsibillty is to read the other informatiori and, in doing so, consider whether the other information is materially inconsistent with the financial statement5, or our knowledge obtained in the course of the audit, or otherwlse appears to be materially mlsstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of thls other information. we are iequlred to report that fact. We have nothing to report in this regard. Oplnlons on other matters prescrlbed by the Companles Act 2006 In our opinion, based on the work undertaken In the course of the audll: The informatlon given in the Tru5tees' report which include5 the Directors, report prepared for the purposes of company law, for the fSnancial year for which the flnancial statements are prepared is consistent wlth the flnancial statements; and The Director5, report included within the Trustees, report has been prepared In accorLlance wlth appllcable legal requlrements. Matters on whl¢h we are requlred to report by exceptlon In1I8ht of the knowledge and understanding of the charity and it5 environment obtained in the course of the audit, we have not identified material misstatements In the Director's report Included wlthln the Tru5tees' report. We have nothin8 to report In respect of the following matters In relation to which the Companies Acl 2006 requires us to report to you if, in our oplnion: Ailequate accounting records have not been kept, or returns adequate for our audlt have not been recelved from branche5 not vlslted by us. or The financlal Statements are not In agreement wlth the accountlng records and return5,' or Certain dlsc105ures of Trustees, remuneration Specified by law are not made. or We have not received all the Snformation and explanations we requi￿ for our audlt. Trustees were nol entrf(led to prepare the flnancial statements in accordance wlth the small companles re8ime and lake advantage of the srnall companies, exemption in preparin8 the trustees. report and from the requirement to prepare a strateglc report. Responsibilitles of the Trustees As explained more fully in the Trustees, responsibililies statement on pa8e 11, the Trustees (who a￿ also the Director5 of the charitable company for the purposes of company lawl are responsible for the 13 preparation of the financial statements and for being satisfied that they give a true and falr vlew, and for such internal control as the trustees determine is necessary to enable the preparation of financial stsiements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are re5pon5ible for assessing the charity's ability to contlnue 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 tharity or to cease operatlons, or have no realistic alternative but to do so. Audltorfs 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 thal includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Mlsstatements can arise from fraud or error and are considered material if, indlvidually or in the aggregate, they could reasonably be expected to influence the economlc decisions of users taken on the basis of the financial statements. The extent to which our proceilures are capable of detectlng Irregularltles, including fraud 15 detailed below. Irre8ularities, includin8 fraud, are Instances of non-compllance wlth laws and regulatlons. We design procedures in line with our responsibllitles, outlined above, to detect material misstatements in respect of Irregularlties, includlng fraud. 8ased on our understanding of the charity and its attivlties, we consldered that non-complSance with the following laws and regulations might have 3 material effect on the financial statements: employment regulation, health and safety regulation, and antl-money laundering regulatlon. To help u5 identify instances of non.compllance wlth these laws and regulations, and in identlfying and a55e55in8 the r15k5 of materlal mSsstatement In respect to non-compllance, our pro¢edures Included, bul were not limited to.. Inquiring of management and, where appropriate, those charged wlth 8overnance, as to whether the charily is in compliance with laws and regulations, and dlscussin8 their policie5 and piocedures regarding compliance with laws and regulatlons: Inspecting correspondence, if any, with relevant licenslng or regulatory authorities,. Communicating identified laws and regulations to the engagement team and remalnlng alert to any indlcations of non.compliance throughout our audlt,. and Con5iderlng the rlsk of acts by the charity which were contrary to applicable law5 and re8ulations, including fraud. We a150 considered those laws and regulationsthat have a direct effect on the preparation of the financial statements. such as tax legislation, pension legislatlon, the Companies Att 2006 and the Charities Statement of Retommended Practi￿. 14 Nicola Wakefield (Sep 29, 2023 09:59 GMT+1) 29-Sep-2023 NEAR NEIGHBOURS STATEMENT OF FINANCIAL ACTIVITIES for the yoar onded 318t Docomber 2022 Restrlct•d Funds 2022 £'ooo R••trl¢tsd Fund8 2021 £'ooo Not•s INCOME & EXPENDITURE Incimno from Charitable acllvitSe8 526 2,303 Totsl Incom• 526 Expendrture on Charitable activities.. Bullding Ne￿orkS 244 935 Creatlng Engagemerrt 180 1,077 Bullding Capacity Young Leaders Real People Hone81 Talk Places of Welcome 105 21 Total •xpondSiurn 520 2.249 N•t Incom• Total Funds Ixought forward Total Fund5 carrl•d forward 150 156 96 150 The charity has taken advantage of the small companiey exemption as il meels the threshold crlteria. The accounts have been prepared in accordance wth the provl8ion8 applicable to sm811 compan*ts ￿thin Part 15 of the Companies Act 2006. The statement of financial aetivits"Ès also eomplits with thè reqLJiremenls lor an income and expenditure account under thè Companies Act 2006 and the Financial Reporkn"ng SlandaTd IFRS 1021. All activities ielale to ongoing operations. The note8 on pages 19 10 23 form part ofthese financial statements. 16 NEAR NEIGHBOURS BALANCE SHEET AS AT 31 DECEMBER 2022 COMPANY NUMBER 07603317 2022 2021 Not•s £'ooo É'ooo £'ooo £'ooo CURRENT ASSETS Cash al bank Amount duè from p¥ont d)4rlly 65 93 123 187 158 CURRENT LIABILITIES Credltor8." Amount8 lalling duo wthln ong ￿•T 11 NET CURRENT ASSETS 150 NET ASSETS 168 150 FUND8 RestriGlod Fund8 io 158 150 TOTAL FUNDS 168 Th8 charity has taken advantage of the $m811 companies exemptlon as il meet¥ the threshold Criteria. accounts have been prepared in ac￿rdanCe wth the provisions applicable to Small companies wthin Part 15 of the Comp8nies Act 2006. Approved by the Tru8lee8 on 19th Juty 2023 and signed on their behalf by Sue Chalk￿Y OBE ....................................... Tha not88 on P￿e8 19 10 23 form part of Ihe8e finand81 statements. 17 NEAR NEIGHBOURS STATEMENT OF CASH FLOW8 lor th• y••r •bYl•d 31 D•¢wnb•r 2022 2022 £'ooo rooo R•concllatlon ol n8t mos*m•rt Infund•to n•t calh Ik?￿ from opv•Ung •cVvitl•• N•t In¢om• fortt￿ rnportlno p•rlod Its wr•tthffl•nt offlMncTral •clfvitlwl Adlu8im•nts for.. Ilncre4891 In dot4or• 40 -11 N•t ¢••h lu••d Inl I pYovld•d by +¥w￿l￿9 Kllvlil•• 43 Chang• In ¢4•h and ush •qul¥•l•nt• In th r•portbng p•rSod Ci•h Ind ¢••h •qulvahrrt• •tth• •t•rt ol th• r•portlng p•rbod -21 43 22 ¢￿h •nd ¢••h •qul¥•l•nts •ltr• •1￿ oltl• r•portlng p•rlod 18 NEAR NEIGHBOURS Not•• to th• Fln•n¢41 $tst•monts lorth• y••r•nd•d 31 D*um￿l2012 1. A￿O￿ntin￿ PollGh• Tre •ccovnlslfinanclal $t8lemenl$l have bfren prepared under the hislonc#l tosi convention wlth IbmB rèwllnl86d al C061 or transactlon valuè unless othe￿1$8 8l•lad ln tho r￿8Vant n¢lo$l$l 10 thbse Accounts. The it4t*mqfits bqqn pieparéd In Occafda￿a wNh tho stsi8m8nl ol Recomme￿Ied PraC￿C*.. A¢￿uMing end Repor￿n0 by chan1￿6 pFep4riw ihelr1￿oun1I in a¢cordBnce wilh Ihe Fin•wwl Reporting St&nd&rd applicablp In Ihe UK and R?publk ol ITeland IFRS 102} approb*d on 2 O¢tob8r 20191off•ctS¥e 1 January 20191 and the CompanlosAcl 20DS. Th• thodty consUltho8 • wbllcbBnqfit entty 01 d•fln•d by FRS102. Tha TruBtseJ have conslderèd Ihe oc1￿1189, looelhBrsYtlh Ihg ts¢tors Ilkgty lo otfgct Its fulurq dAV￿0pm￿nI, Ptrrtorm•nce and finanutyl po&iUon 10 dèttrftnln¥ whélhor Na81 NO1￿bOUT% fin8ndal 8i•tsm8nl6 c8n b8 praparèd on & goiThJ conum ba8io. The forets6ts a￿1 proJeCt￿n5. laklng aceounl of real￿0blY poislblo charyeo In charlly perforrnince, show tho tharlly 8houhl ar>￿ to op6r4t8 wllNn thè kv61 of for8c84tca8h re4ourco8. It r•Cogni￿d thai Near N•lghb(xxÈ b6néiiiA from r•aulii ￿an￿￿￿ni fundlno from DLUHC. Al th8 ol approval ol iho•• flnand41 &t4lBrnenl& Ihere li lfidicolon. bul no wrhtfrn conflmatlon. th4ifut)dlNJ m&y eonllnue In Ihe ffuluro. In Ilghl ol Ihl$ maller, Ne•v Nelghbouis haE iacBi¥ed a letter Df suppotl Irom Ils parenl company. Church Urban Fund ICUFI. that In Iho gvenl ol funds nol mii•rta1181ry CUF wlll 6UPPOrt tho 8¢Uvblk•¥ ol No4r NO￿hbOUrS In Iho Bhort term lo ensure Ih•l11 contsnues golnq conc•rn. Th1¢ h88 baen on lh8 ba818 tt￿1 octivill•$ deemed to bg e58endAI lo the ￿nIlnU5110n ol th• NN nEtr40rk $w>portlh8 owrAII ml88lDn Of Ihe CUF gioup I￿G￿dI￿ tho r•l•nllon of wothlng on Ihe NN piogromme. CbuF¢h Uibin Funa r•¢oiv•i funJi from lh• D•p*nm•nl tor L8vo1kn9 Up, H¢u6ing and Communthei IOLVHCI whlch11 then p886ed lo N98r Noighbourb and Lwed lo admlnlalerth• pro9ramme In •¢¢•id•nc¢ wlth th• Iorèèmonl Cmrch LIl￿n Fund and Near Nalohbouis. G. 8upport È••¢• Support co•ts romprlB• of c061$ rg1•11ry lo Gtslulary 4udtt and kgol1gp• wtt)èrwhh 1PPL¥1￿nMO￿t ol aen•ial ovttheoda. Support CO•18 rn18lln9 10 charrtabh •cllwl*B ho￿ been 4pp0rt1on￿ b45ed on slaff Ilrne •ponton In èddluon io Iho cools Incurred dlr•th In Iho courno vf thgr1lo￿È •GUwly, No•1 Nth¢hbOUm il¥0 Incur¥ iupport co¥l8th81 ar• nocè868ry kn enab￿ rtlo c8rry outl1$ actiyttk96. TheB8 coBlI Bre ¥pporVonga lo I￿¥￿1￿9 b45od on Ihg Im• swnl on each. d. Ch•rlt•bl• ictMtI•• ¢o$i¥ of choriiablo #cal￿￿•5 ItKlude grAn￿ rn•d8. p)vemerKe co￿& and an opportlonmonl of uwporf co1￿ l• 6hown In note 3. •. ar•nt* DO1￿￿ry P*then Jubmll qu4rtèty returna &91in•l budgttbèlor• Ihey ar• p•kl future fundlnq 18 un8pent8mounlB one y8arwoukl 105uII In • rfjductlon ol giant In Ihe n8xl. The gr4n15 aro chargod lo th• statement ol Financlal Ac11￿1￿$ nra fund¥ have bèen tranaf*ffed tD ￿¢1p￿n1'S account. Payments W8 madè on behall ol P•rtnor6 where tt*r8 K8 an abse￿ of • operallonal bank ucGLKmldue lo J 4eluy Ni Ihe oetUrvJ ￿ of the ￿L￿oUnt. The ￿*ThI lo Church Urban Fund lo adminiel•r and rnake 8¥48rds undor the Small Grants Progr¥Trme 1$ thorped to thp Slutomgnl ol Flnanclal onro thè fundE have bean Comm￿￿. f. P•n•lon• co•t• Th? th&rityVMiea a def￿ed conlribulon ￿n￿on 8cheme, Churth ihban Fund Peniknn Leg818nd Goneral. The pension charge rewesenta the arnounl payabh by the thiirfylo h 8L*omo fvspett tsf ￿•r10 whir* Ih?y tsL•te and ale Induded wllhkn 8t8ff co8181Th)le 51. Fund Restricted ILrtB arE lundj 5ubie 2021 'ooo 2021 rooo A¢ryuol• Othei Crndttor• 11 R•strlGtod Funds B*nce at 111122 rooo Incomo Expondtture Trdnsf•¢ b•tsMon lund• rooo 31M2122 tyjoo £'ooo Naar Nèlghbourn Piogramn Catstyst PrograrrMn• 101 49 160 500 26 626 497 23 520 57 15$ Th• N•qr Nelghbours ProBr•mrne i¥ prfm4rttyfundèd by DLUHC and cov8r8 th• corn prc¥ramm•s and co8tB of Negl N•ryhbourn. Tho Catstyst Programmé funds are to run the Catslh*t Youn9 P•opl•* L••d•rnhlp Gwrn••. 11. Ulumats Par•nt Compony TM ullknal• parent ch8Tty18 Churth Uthn Fund. • c¢mp•ny •nd ¢h•rty regl•t•r•d In Engllnd. cop￿1 of tho group accounta n bo obtsln¢d Irom Chui¢h Urb•n Fund, The Foundry, 17 O¥alWgy. London SE11 SRR. 12. R•l•t•d P•rty Trnn••¢tlon• Durlng th• yeor, No•f N¢*hbourn ortored Inlo th• lolh)wln9 tra￿49￿0n# whth Iii paiont ￿mpaThY CUF.. CLIF r•c4Jlvod lh• full wmounl o19rnThtfrom OLUHC of £500k12021, £2,300kl and po$•¢d thii mr lo N•ar N•*hbour• lo de1￿8r the progr4mme. N¥•1 N•lghbours p•ld CUF a 9r•nl ol £110k12021.. £856kl to admln15ter th• Sm411 Gr•nts pi¢oi•mmo. N••i N•lghbourg made 8 contthllon of £18Tk12021.. £468kl lo CUF lor the adminl•tr•tion C*f th• ov•rall pro9rnmm•. Al th• yooi •nd. there w•s £123112021.. £93kl kntsr¢omp•ny b•l•ne• owed by CUF. Su• Ch•kkny OBE •nd ¢•therlneAlllwn •[• Tru•t¢g1 of N•or W•￿hbOun •nd Churc* Urban Fund 23