OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-03-31-accounts

PROPS NORTH EAST (A company limited by guarantee)

REPORT AND GROUP FINANCIAL STATEMENTS

For the year ended 31 March 2021

Charity number 1146582 Company number 07902767

PROPS NORTH EAST

(A company limited by guarantee)

TRUSTEES ANNUAL REPORT

For the year ended 31 March 2021

The trustees are pleased to present their annual directors’ report together with the financial statements of the charity for the year ended 31 March 2021 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 Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Summary by Denise Wilkins, Chair:

At the end of this financial year, we find ourselves adjusting to a new normal planning for the post pandemic world. The work that we have undertaken to strengthen all aspects of the ­ charity over the previous year while faced with COVID 19, has enabled us to build a strong position from which we can continue to promptly respond and adapt how we deliver services to the people we serve.

This year we are reporting an increase in our income from the previous year of £26,922 and a further reduction in expenditure of £49,585, resulting in an overall surplus for the year of £47,788. This is a significant improvement on the previous year and a positive trend that we forecast to continue into the new financial year.

In December 2020, we received confirmation that our tender to maintain our contract of services with North Tyneside City Council was successful. This outcome along with the previous award of a contract to deliver services in Newcastle in April 2020, means that we are ­ now able to build a longer term strategic plan with greater financial stability. We have also benefitted from a number of COVID ­ 19 related grants and funding initiatives to support the Charity during the pandemic.

Throughout this challenging year, the response to the pandemic by our Charity was to adapt our services to be able to communicate via various social online platforms, offering virtual spaces to provide connection for families. It was imperative that inclusivity of family’s needs were accommodated in the absence of face to face support whilst in isolation.

The launch of our new look website and the additional functionality of online referrals has enabled us to widen our visibility and reach to the community. This could not have been achieved without the offer of voluntary time from Bean Bag Bizarre and Zenos who worked hard on re ­ branding and updating the content of our website. This has not only given PROPS a fresh and current look, but the process also inspired the whole team to collaborate and be a part of the change.

1

PROPS NORTH EAST

(A company limited by guarantee)

TRUSTEES ANNUAL REPORT

For the year ended 31 March 2021

I would like to express gratitude to my fellow trustees, the dedicated staff team and all our invaluable volunteers who have all shown exceptional commitment and fortitude in these extremely trying times.

Denise Wilkins Chair of Trustees

Our People

Trustees and Directors

Denise Wilkins – Chair of Trustees and Director Lynne Griffin – Trustee and Director Susan Sinton – Trustee and Director Alastair Mitchell – Treasurer and Director

Staff Team

Nicola Mansfield Jones – Chief Executive Lyn Hunter – Service Manager Sandy Lambrou – Finance Manager Teresa Atkinson – Administration Officer/Family Intervention Worker Helen Wrigley – Family Intervention Worker Sandra Adams – Family Intervention Worker Julie Gardner – Family Intervention Worker Daniel Brocksopp – Young Persons Intervention Worker Helen Thompson – Social Impact Lead Andrea Mansfield – Administration Officer/Project Support Officer

Volunteers

Peter Toner – Administration Support Lesley Hardie – Welfare Rights/Group Facilitator Claire Hagelburg ­ Counsellor Muriel Goulding – Group Facilitator Lesley Ayre – Group Facilitator

Purpose and Aims

The purpose of the Charity as set out in the objects contained in the company's Memorandum and Articles of Association is:

“to relieve the charitable needs of carers and whole families affected by substance misuse,

2

PROPS NORTH EAST

(A company limited by guarantee)

TRUSTEES ANNUAL REPORT

For the year ended 31 March 2021

by the provision of advice, information, education and training, and other charitable forms of support, and by raising public awareness in all matters relating to drug and alcohol dependence, and their associated behaviours, with the overall aim being to promote sustainable whole family recovery.”

Vision

To provide a complete solution for families affected by substance misuse to take back control of their lives, at all times acting as an advocate for social change on the issues that impact upon the lives and communities of those we serve.

Ensuring the Work Delivers Our Aims

The Charity reviews its aims, objectives, and activities each year and updates both the strategic development and operational delivery plans to reflect the decisions taken. The review looks at achievements and outcomes of the work over the previous 12 months. It looks at the success of each key activity and the benefits brought to the groups of people the communities we serve and also the barriers, challenges and failures experienced to ensure our services are effective and fit for purpose. It also helps us ensure the aim, objectives and activities remain focussed on the stated purpose. The Trust has referred to the guidance contained in the Charity Commission's guidance on Public Benefit when reviewing our aims and objectives, and in planning our future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives.

The Focus of Our Work

­ The main objectives and activities for the year were to maintain a consistent level of high quality service delivery across all operational areas and to continue to progress our change management program strengthening the systems and infrastructure of the charity to support long term sustainability of our work.

How Our Activities Deliver Public Benefit

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the aims and objectives and in planning future

3

PROPS NORTH EAST

(A company limited by guarantee)

TRUSTEES ANNUAL REPORT

For the year ended 31 March 2021

activities. The charitable objectives are also set out in order to provide a clear and demonstrable public benefit. All our charitable activities focus on reducing the harm caused to carers and whole families affected by substance misuse. By providing these activities they further our charitable purpose for the public benefit.

Who Used and Benefitted from Our Services?

The objects of the Charity do not restrict the delivery of activities to a geographical area, however some of the funding we currently receive limits the services we are able to provide to residents in Newcastle upon Tyne and North Tyneside.

The North East still has some of the worst health related outcomes in the UK with the highest rates of drug related deaths, alcohol related mortality and poverty. The North East is a region who, prior to the coronavirus pandemic, had already felt some of the harshest impacts of austerity through cuts to local authority funding. We work with families from every socioeconomic background and see higher referral rates from areas with high levels of social deprivation All services are provided free of charge to families. In 2020 work has continued to develop a framework to better understand the impact of the pandemic alongside our current work to help us improve outcomes for those who use our services and increase accessibility across communities.

Achievements

The main areas of charitable activity are the provision of a range of evidence ­ based interventions tailored to the bespoke needs of families and individuals. We deliver programmes of support that keep families and carers safe and achieve self ­ directed outcomes based on expressed needs and wishes of those who use our services. These activities and the achievements are described below.

Support we Provide for Adults Caring for a Substance User:

Our work to promote recovery is underpinned three main principles:

This work is underpinned by delivering the following:

4

PROPS NORTH EAST

(A company limited by guarantee)

TRUSTEES ANNUAL REPORT

For the year ended 31 March 2021

Support we Provide for Children/Young People Affected by a Substance User:

­ We offer a unique service to young people aged 11 18 affected by parental or familial substance misuse.

Our work with young people is underpinned by three main principles:

This work is underpinned by delivering the following:

5

PROPS NORTH EAST

(A company limited by guarantee)

TRUSTEES ANNUAL REPORT

For the year ended 31 March 2021

Championing the Voices of the Communities We Serve

PROPS was founded by Scotswood Women’s Drug Support Group using principles of social action and community organising. This has continued through our robust partnerships and attendance at local and regional forums, alongside empowering affected others to have a voice of their own.

Financial Review

Considerable progress continues to be made in strengthening the governance and operations of the charity. We are currently reviewing our strategic plan to embed a stronger infrastructure. This will be implemented and lead us into the next financial year.

The outcome of these actions has been an increase in income of £26,922 at the same time we have made further reductions of £49,585 in our expenditure. This has resulted in a surplus of £47,788 for the year.

Income from trading activity decreased this year due to the pandemic. We continue to develop a more strategic and focussed approach in our trading model in the new normal world. This work has been supported by development grants from Access Reach and the North East Scale Up program and the Lloyds Foundation Enhance program.

Trustees and managers continue to review and regularly monitor progress against the strategic, operational, and financial plans through trustee and finance meetings.

Principal Funding Sources

The Trustees are grateful to the following for funding the work of the Charity during the period:

6

PROPS NORTH EAST

(A company limited by guarantee)

TRUSTEES ANNUAL REPORT

For the year ended 31 March 2021

We would like to give thanks to the individuals who have made personal donations to the charity over this year whose contributions allow us to make essential purchases for our services and provide much valued respite events and activities for adults and young people.

Investment Policy

The strategic aims and development of the Charity specify trustees ensure the best use of ­ reserves over the long term showing due diligence and an agreed level of risk averseness. The investment objective is to create a balance between capital growth and income, which over the long run, will endeavour to maintain the real value of any assets.

The charity does not currently hold any investments.

Pay Policy for Key Management Personnel

The board, who give their time freely and no trustees received remuneration in the year, have considered who the Key Management Personnel (KMP) of the charitable company are, as noted in the reference and administration section. Together with the board, these KMP are those in charge of directing and controlling, running, and operating the activities of the charitable company on a day ­ to ­ day basis. The pay of the KMP is reviewed annually.

The trustees benchmark against pay levels of other charities and similar organisations within the sector and the region. Pay levels are set using this information together with budget and forecast information, ensuring that the charitable company.

Reserves Policy and Going Concern

The calculation of free reserves is based on the definition included in the charity statement of recommended practice (SORP), which provides recommendations for accounting and reporting for charities. The trustees have examined the requirements of the charitable company to hold free reserves, those reserves not invested in tangible fixed assets, excluding long term liabilities, or designated for a particular purpose.

This exercise considered both the normal requirements for working capital and the loss of income of a hypothetical but reasonable reduction in the scale of operations. Resulting from this, the trustees considered it would be appropriate to hold the equivalent one to two ­ months' payroll costs/expenditure, which would equate to holding approximately £25,000 £50,000 in free reserves.

At the year end, total free reserves (unrestricted and designated funds not invested in tangible fixed assets) were £87,132 (2020: £28,813) an increase of £58,319. As we head into 2021/2022, we are confidently forecasting an increase in free reserves at that the end of the next financial year.

7

PROPS NORTH EAST

(A company limited by guarantee)

TRUSTEES ANNUAL REPORT

For the year ended 31 March 2021

The trustees will continue to budget future surpluses and diversify income generation activities in order to provide improved organisational sustainability.

The trustees recognise that whilst reserves may be utilised to maintain capacity within the charity and to undertake essential infrastructure projects finance, they are conscious that in the medium and longer term the charity will need to generate surpluses in order to maintain their target level of free reserves.

The need for the charity's services to continue to grow and therefore the demand on future reserves will also be greater, hence the charity continues to require future funding and the support of its funding partners.

The financial statements have been prepared on a going concern basis. The trustees have reviewed and considered relevant information, including the annual budget and future cash ­ flows in making their assessment. In particular, in response to the COVID 19 pandemic, the trustees have revised their forecasts to take into account the impact on the business of ­ possible scenarios brought on by the impact of COVID 19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the trustees have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Going Concern

The financial statements have been prepared on a going concern basis. In making their assessment the trustees have reviewed and considered relevant information, including their ­ annual budget and future cash flows. In response to the COVID 19 pandemic, the trustees have revised their forecasts to consider measures that they can take with the current resources available to mitigate the impact of the current adverse conditions. The trustees are of the view that the immediate future of the charity for the next 12 months is secure and that on this basis the charity is a going concern.

Plans for Future Periods

Following our organisational review, trustees are committed in continuing to invest time in strategic development.

The true impact of the devastating Coronavirus pandemic on communities is yet to be realised; however we will continue to work alongside partners and adapt to any social changes we may encounter.

Due to increasing the accessibility of our services and becoming more digital, we have assessed and revised our cyber security processes to ensure the charity and the community data remains secure.

8

PROPS NORTH EAST

(A company limited by guarantee)

TRUSTEES ANNUAL REPORT

For the year ended 31 March 2021

We are in the process of preparing for post lockdown movement to ensure the families we serve can access face to face support safely in our community hubs.

We are awaiting confirmation from the Living Wage Foundation to become an accredited member.

As a charity we feel we have a social responsibility to support the climate crisis we are all currently faced with. We are committed to making a change and this year we are focussing on reducing our carbon footprint. We have become a Forest Carbon member. By working with this organisation we will offset our carbon footprint by ensuring 100 trees will be planted. This is just the start of our commitment to global change.

We will continue to focus on generating unrestricted income to allow the charity to remain agile in responding to the needs of those we serve in an even greater climate of uncertainty.

There appears to be growing acknowledgment of the value of ‘charity’ fuelled by the sector wide response meeting the needs of the most vulnerable citizens in our country. We expect to see a rise in government spending to support the recovery of communities from the pandemic and that we are already experiencing the effects of ten years of austerity which may present new opportunities for PROPS in the coming years.

In looking to the future we will continue to work with current and potential new partners in developing agile and innovative solutions to complex problems. We will continue to explore new markets and develop new services ensuring that those who use and purchase our services have excellent experiences of our work.

The Charity will focus on the following areas:

9

PROPS NORTH EAST

(A company limited by guarantee)

TRUSTEES ANNUAL REPORT

For the year ended 31 March 2021

Reference and Administrative Details of the Charity, its Trustees and Advisors

Charity Name PROPS North East
Registered Charity 1146582
Number
Company Number 07902767
Registered Office and Linskill Centre
operational address Linskill Terrace
North Shields
England
NE30 2AY
Trustees Denise Wilkins Chair of Trustees
Alastair Mitchell Treasurer
Lynne Griffin Trustee
Susan Sinton Trustee
Beverley Reid Resigned October 2020
Chief Executive Nicola Mansfield­Jones Appointed January 2021
Claire Robinson Resigned January 2021
Independent Jim Dodds FCIE
Examiner Connected Voice Business Services Ltd
C/O Connected Voice
Higham House, Higham Place
Newcastle upon Tyne,
NE1 8AF
Bankers Unity Trust Bank
Nine Brindley place
Birmingham
B1 2HB

10

(A company limited by guarantee)

PROPS NORTH EAST

TRUSTEES ANNUAL REPORT

For the year ended 31 March 2021

Structure, Governance and Management

Governing Document

PROPS North East is a charitable company limited by guarantee. Established as Scotswood Women’s Drug Support Group in 1997, Newcastle PROPS was registered as a charity in 1999 and incorporated as PROPS North East 12 January 2012. The company was established under a Memorandum and Articles of Association which established the objects and powers of the charitable company and is governed under its articles of association. In the event of the company being wound up members are required to contribute an amount of £1.00.

Appointment of Trustees

As set out in the Memorandum and Articles of Association the Board shall consist of no more than 12 Trustees and no less than 1. At each Annual General Meeting one third of the longest serving Trustees retire by rotation from office. A retiring Trustee is eligible for re ­ election.

In the event of any particular skills being lost through retirement or resignation, suitable individuals are approached to offer themselves for appointment to the Board. All Trustees give their time voluntarily and received no benefits from the charity. No Trustees claimed expenses during the year

Trustee Induction and Training

New trustees are invited to meet with the Chair and Chief Executive to familiarise themselves with the Charity and the context in which it operates. This covers:

Trustees also receive an induction pack of internal information together with publications from the Charity Commission. The Chief Executive organises opportunities for the trustees to become familiar with the work of the Charity by meeting with those who use the services of the Charity, attending groups and training and for meeting staff and volunteers. Trustees are also invited to attend issue specific focus groups or projects.

Organisation

The board of trustees has responsibility for the strategic direction and policy of the charity. Frequency of full meetings has been reviewed for effectiveness and will continue to meet on

11

PROPS NORTH EAST

(A company limited by guarantee)

TRUSTEES ANNUAL REPORT

For the year ended 31 March 2021

a monthly basis. Trustees have also established subgroups for financial governance and income generation that meet in addition to and report into ordinary meetings.

The Chief Executive is appointed by the trustees to manage the day ­ to ­ day operations. To facilitate effective operations the Chief Executive has delegated authority, within the terms of delegation approved by the trustees, for operational matters including finance, employment, and service delivery.

Risk Management

The Trustees have a risk management strategy that comprises:

Due to uncertainty in the economic climate and to mitigate significant external risks to funding organisation undertakes an annual strategic review. Each year the organisation produces updated Business and Action Plans which are fully consulted with trustees, management and staff teams and reviewed against progress quarterly. They are very much working documents which recognise the need for diversification, development, and expansion of the Charity’s core business. A key element in the management of financial risk is the setting of a Reserves Policy and its regular review by trustees.

Statement of Trustees' Responsibilities

The trustees (who are also the directors of PROPS North East for company law) are responsible for preparing the Trustees Annual 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 trustees to prepare financial statements for each financial 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 these financial statements, the trustees are required to:

12

PROPS NORTH EAST

(A company limited by guarantee)

TRUSTEES ANNUAL REPORT

For the year ended 31 March 2021

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure the financial statements comply with the Companies Act 2006. The Trustees 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

­ Jim Dodds (Connected Voice Business Services Ltd) has been re appointed as independent examiner for the ensuing year ending 31 March 2022.

Approved by the Board on …………………... and signed on their behalf by: 24/06/21

…………………………………………………. Denise Wilkins (Chair of Trustees)

13

PROPS NORTH EAST

A company limited by guarantee

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES

For the year ended 31 March 2021

I report on the financial statements of PROPS North East for the year ended 31 March 2021, which are set out on pages 15 to 26

Respective responsibilities of trustees and examiner

The trustees (who are also 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 the year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a Fellow of the Association of Charity Independent Examiners.

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:

Basis of independent examiner's statement

My examination was carried out in accordance with 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 the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, 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

In connection with my examination, no material matters have come to my attention which gives me cause to believe that in, any material respect:

I 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.

Jim Dodds FCIE Ellison Services Limited Higham House Higham Place Newcastle upon Tyne NE1 8AF Date: 24/06/2021

14

PROPS NORTH EAST

A company limited by guarantee

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

(INCLUDING THE INCOME & EXPENDITURE ACCOUNT)

For the year ended 31 March 2021

----- Start of picture text -----
General Designated
Unrestricted Unrestricted Restricted Total Total
Funds Funds Funds 2021 2020
£ £ £ £ £
Income:
Donations and legacies 7 1,665 - - 1,665 7,072
Income from charitable activities:
Grants and contracts 8 280,246 - 22,527 302,773 304,430
Other trading activities: 9
Subsidiary income 37,975 - - 37,975 3,177
Other trading income - - - - 750
Investment income 10 13 - - 13 75
Total income 319,899 - 22,527 342,426 315,504
Expenditure
Costs of raising funds: 11
Subsidiary expenditure 30,108 - - 30,108 3,177
Expenditure on charitable
activities:
Operation of the charity 12 242,003 - 22,527 264,530 341,044
-
Total expenditure 272,111 22,527 294,638 344,221
- -
47,788 47,788 ( 28,717 )
Net income/(expenditure)
Transfers between funds 11,098 ( 11,098 ) - -
Net movement in funds for the
-
58,886 ( 11,098 ) 47,788 ( 28,717 )
year
Reconciliation of funds
Total funds brought forward 1,621 30,000 11,098 42,719 71,436
-
Total funds carried forward 60,507 30,000 90,507 42,719
----- End of picture text -----

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

The notes on pages 17 to 26 form an integral part of these accounts.

15

PROPS NORTH EAST

A company limited by guarantee

Company number 07902767

CONSOLIDATED BALANCE SHEET

As at 31 March 2021

21
23
24
Fixed assets
Tangible assets
Total Fixed Assets
Debtors and prepayments
Investments
The funds of the charity
Restricted income funds
General unrestricted income funds
Designated unrestricted income funds
Creditors falling due within one year
Liabilities
Total Current Assets
Total charity funds
Net Current Assets
Current assets
Cash at bank and in hand
Total assets less current liabilities
Net Assets		 £
£
2021
2020
3,375
2,808
3,375
2,808
44,224
13,852
5,703
-
-
11,098
1,621
30,000
42,719
( 41,564 )
128,696
49,927
90,507
42,719
( 10,016 )
90,507
114,844
Group
39,911
-
60,507
30,000
87,132
90,507
42,719		 £
£
3,375
3,376
43,504
13,852
5,703
1
1
2021
2020
2,809
11,098
1,621
30,000
42,719
114,123
127,975
49,207
2,808
30,000
90,507
( 40,844 )
( 9,297 )
Charity
87,131
-
60,507
90,507
42,719
39,910
90,507
42,719

The company was entitled to an exemption from audit under s477 of the Companies Act 2006 relating to small companies

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

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

These accounts have been prepared in accordance with the provisions applicable to small companies subject to the small companies regime and in accordance with FRS102 SORP.

The notes on pages 17 to 26 form an integral part of these accounts.

These financial statements were approved by the Board on:

and are signed on its behalf by:

Denise Wilkins Chair

24/06/2021

16

PROPS NORTH EAST

A company limited by guarantee

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 March 2021

1 Accounting Policies

The principle accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

2 Basis of accounting

2.1 Basis of preparation

These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) – Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011

PROPS North East meets the definition of a public benefit entity under FRS 102.

2.2 Preparation of the accounts on a going concern basis

The financial statements have been prepared on a going concern basis. In making their assessment the trustees have reviewed and considered relevant information, including their annual budget and future cash flows. In response to the COVID-19 pandemic, the trustees have revised their forecasts to take into account measures that they can take with the current resources available to mitigate the impact of the current adverse conditions. The trustees are of the view that the immediate future of the charity for the next 12 months is secure and that on this basis the charity is a going concern.

3 Income

3.1 Recognition of income

Income is recognised when the charity has entitlement to the resources, any performance conditions attached to the item(s) of income have been met, it is more likely than not that the resources will be received and the monetary value can be measured with sufficient reliably.

3.2 Offsetting

There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by FRS102 SORP or FRS102.

3.3 Grants and donations

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance or provision of other specified service is deferred until the criteria of income recognition are met.

17

PROPS NORTH EAST

A company limited by guarantee

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 March 2021

3.4 Volunteer help

The value of volunteer help received is not included in the accounts but is described in the trustees' annual report.

3.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

3.6 Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charities' work or for specific projects being undertaken by the charity.

4 Expenditure and liabilities

4.1 Liability recognition

Liabilities are recognised when it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty

4.2 Charitable activities

Expenditure on charitable activities includes the costs of providing support and other therapeutic activities to carers undertaken to further the purposes of the charity and their associated support costs.

4.3 Governance and support costs

Support costs have been allocated between governance cost and other support. Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources.

4.4 Irrecoverable VAT

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

4.5 Creditors

The charity has creditors which are measured at settlement amounts less any trade discounts

5 Assets

5.1 Tangible fixed assets for use by the charity

Individual fixed assets costing £500 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis as follows:

Office and computer equipment Straight line over four years Project equipment Straight line over four years

18

PROPS NORTH EAST

A company limited by guarantee

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 March 2021

6
Analysis of income
7
Unrestricted
Funds
Gift aid from trading subsidiary
The summary financial performance of the charity alone is:
Income
Expenditure on charitable activities
Net income/(expenditure)
Represented by:
Total funds brought forward
Total funds carried forward
General unrestricted income funds
Designated unrestricted income funds
Other donations
-
-
Designated
General
-
Unrestricted
Funds
£
Income from donations and
legacies
-
Private donations
1,665
Restricted income funds
Fund raising
-
-
£
1,665		 Restricted
Funds
7,867
312,318
Total
2021
£
304,451
264,530
47,788
90,507
42,719
30,000
60,507
90,507
-
-
-
-
-
£		 Total
2021
-
Total
2020
£
312,327
341,044
( 28,717 )
312,327
42,719
71,436
30,000
1,621
42,719
-
1,665
1,665
11,098
-
£		 Total
2020
3,000
7,072
2,756
1,316
£

19

PROPS NORTH EAST

A company limited by guarantee

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 March 2021

----- Start of picture text -----
Analysis of income continued
General Designated
Unrestricted Unrestricted Restricted Total Total
Funds Funds Funds 2021 2020
£ £ £ £ £
8 Income from charitable activities
Income from grants and
contracts
NCC - Public Health Services - 125,760 - - 125,760 117,359
Carers Support
- - -
NCC - Community Led Local 21,899 21,899
Development programme
- -
Department of Work and 20,000 20,000 42,000
Pensions
- -
North Tyneside Council 99,710 99,710 93,471
The Reach Fund - ACCESS - - - - 22,520
The Barbour Foundation - - - - 10,000
The Hospital of God at Greatham - - - - 1,000
RTC Scaleup North East - - - - 2,992
- - -
The National Lottery Community 9,110 9,110
Fund
Community Foundation 2,000 - 714 2,714 -
Collective Voice - - 12,703 12,703 -
- -
Other small grants 1,216 1,216
Other income 9,661 - 9,661 15,088
-
280,246 22,527 302,773 304,430
9 Income from other trading activities
- -
Trading subsidiary turnover 37,975 37,975 3,177
Other trading activities - - - - 750
- -
37,975 37,975 3,927
10 Investment income
Bank interest 13 - - 13 75
13 - - 13 75
----- End of picture text -----

Income was £342,426 (2020: £315,504 ) of which £319,899 was unrestricted or designated (2020: £292,984 ) and £22,527 was restricted (2020: £22,520 ).

20

PROPS NORTH EAST

A company limited by guarantee

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 March 2021

Analysis of expenditure

11
12
Independent examiners fees
Depreciation
Governance costs
Staff salaries
Other staff costs
Staff travel & meetings
Training costs
Management committee costs
Premises costs
Office costs
Volunteer expenses
Promotion and publicity
Professional fees
Bank charges
Client activities
Charitable activities
Trading subsidiary costs
Overheads
Costs of raising funds
Staff costs		 -
General
928
Unrestricted
79
198
Funds
2,400
30,108
12,263
242,003
9,863
189,519
19,430
1,596
5,084
472
-
£
6,004
24,104
171		 -
-
Unrestricted
-
-
Funds
-
-
-
-
-
-
-
Designated
-
-
-
£
-
-
-
-		 478
-
-
Restricted
-
-
18,189
Funds
22,527
-
-
-
-
-
3,860
£
-
-
-
-
-		 79
Total
2,400
2021
12,263
928
1,596
30,108
207,708
5,084
950
198
-
23,290
171
£
6,004
24,104
264,530
-
9,863		 521
5,261
205
Total
2020
2,019
7,091
1,476
3,177
253,846
11,284
219
26,447
£
1,158
12,499
19,711
60
341,044
24
2,400

Expenditure on charitable activities was £264,530 (2020: £341,044) of which £242,003 was unrestricted or designated (2020: £328,057) and £22,527 was restricted (2020: £12,987).

13 Net income/(expenditure) for the year

This is stated after charging :
Independent examiner's fees for reporting on the accounts
Other accountancy services provided by the examiner
Depreciation		 £
2021
1,626
4,953
927
2,400		 £
2,400
2020
1,727
4,187
60

21

PROPS NORTH EAST

A company limited by guarantee

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 March 2021

14 Analysis of staff costs and the cost of key management personnel

Employer's pension costs
Gross wages, salaries and benefits in kind
Employer's National Insurance costs		 2021
£
15,170
199,639
17,003
231,812		 2020
222,296
18,096
£
15,473
255,865

No employee received remuneration above £60,000 (2020: nil).

The key management personnel of the charity, comprise the trustees and the Chief Executive. The total employee benefits of the key management personnel of the charity were £41,331 (2020: £39,616).

15 Staff Numbers

The average monthly head count was 9 staff (2020: 11 staff) and the average monthly number of full-time equivalent employees during the year were as follows:

Support staff
Management / admin staff
The parts of the charity in which the employees
work		 5.5
3.5
2021
Number
9.0		 4.0
2020
Number
5.0
9.0

16 Transactions with trustees

The charity trustees were not paid any other benefits from employment with the charity in the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity. (2020: £nil).

17 Trustees' expenses

No trustee expenses have been incurred in the year (2020: £nil).

18 Transaction(s) with related parties

No trustee or other person related to the charity had any personal interest in any contract or other transactions entered into by the charity, including guarantees, during the year (2020: nil).

19 Defined contribution pension scheme

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The employer's pension costs represent contributions payable by the charity to the fund and amount to £15,107 (2020: £18,096) There was £nil outstanding as at 31 March 2021 (2020: £nil).

22

PROPS NORTH EAST

A company limited by guarantee

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 March 2021

20 Corporation Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objectives.

21
22
Brought forward
Carried forward
Disposals
Balance carried forward
Depreciation
Depreciation charge for year
Additions
Cost
Balance brought forward
Fixed asset investment
Disposals
Balance carried forward
Net book value
Tangible fixed assets
Balance brought forward
Investment in subsidiary company		 16,664
1,494
19,472
£
927
-
20,966
-
17,591
2,808
Office &
Computer
Equipment
3,375		 34,664
£
2,808
17,591
37,472
1,494
£
£
Group
Total
3,375
18,000
-
20,966
( 18,000 )
-
18,000
-
( 18,000 )
Charity
-
Project
Equipment
-
-
( 18,000 )
2021
2020
£
( 18,000 )
927
-
-		 -
927
Total
-
2,808
Group
35,864
£
1,200
38,672
£
£
1,200
Equipment
2021
1
1
-
3,375
1,200
1,494
22,166
-
1,200
-
( 18,000 )
2020
£
18,791
-
Charity
( 18,000 )

Investment in subsidiary company

The charitable company owns one £1 ordinary share, 100% of the voting capital of the Positive Practice Partnership Ltd a company incorporated and registered in England and Wales (Company number 08487355). To provide training, accreditation and supervision in evidenced based interventions to staff working with adults affected by a family members substance misuse. and pays all of its profits to the charity under the Gift Aid scheme. A summary of the trading results and balance sheet for the year ended 31 March 2021 is shown below.

Profit and loss account

Taxation
Other operating income
Cost of sales
Administration costs
Donation to parent charity
Turnover
Net profit		 -
( 30,108 )
-
( 7,867 )
-
-
37,975
£
2021		 £
-
-
2020
-
-
( 3,177 )
3,177
-

23

PROPS NORTH EAST

A company limited by guarantee

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 March 2021

22 Fixed asset investment continued

Balance sheet
Fixed assets
Profit and loss account
Called up share capital
Current assets
Creditors amounts falling due within one year		 -
1
1
721
( 720 )
2021
-
1
£		 ( 720 )
1
1
2020
£
-
721
-
1

23 Debtors and prepayments (receivable within 1 year)

Other debtors
Prepayments
Trade debtors		 £
-
213
2,497
-
13,852
5,703
2021
2020
£
13,852
2,993
Group		 -
-
2,497
Charity
£
£
13,852
2,993
13,852
213
5,703
2021
2020

24 Creditors and accruals (payable within 1 year)

Accruals
Other accruals
Other creditors
Preparation of statutory accounts
Trade creditors
Deferred Income		 2020
£
£
Group
3,120
26,528
-
2,896
3,120
2021
10,925
991
41,564
10,016
-
-
4,000		 £
2,400
2,400
2020
991
2021
Charity
£
2,896
10,925
1
40,844
9,297
-
4,000
26,528
-

25 Deferred income

Deferred income comprises of advance payment from grant providers

Balance brought forward
Amount deferred in year
Amount released to income earned from
charitable activities
Balance carried forward		 -
2021
£
26,528
-
26,528

24

PROPS NORTH EAST

A company limited by guarantee

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 March 2021

Analysis of movements in unrestricted funds

Totals
Totals
General unrestricted fund
Designated reserves fund
Purpose of unrestricted funds
General unrestricted fund		 The 'free reserves' after allowing for designated funds.
balances
Fund
30,000
1,621
30,000
-
-
-
319,899
( 272,111 )
11,098
£
expended
balances
-
-
-
brought
Incoming
Resources
£
£
£
Transfers
forward
resources
£
£
£
£
expended
Transfers
1,621
Resources
forward
Fund
319,899
( 272,111 )
11,098
brought
resources
Incoming		 balances
Fund
balances
60,507
£
30,000
carried
30,000
forward
forward
carried
£
60,507
Fund

Purpose of designated funds Designated reserves fund To cover one to two months running costs including potential close down costs.

Analysis of movement in restricted funds

Community Foundation
Restricted funds
Totals
Collective Voice
The Reach Fund - ACCESS
The National Lottery Community
Fund		 -
balances
£
forward
brought
11,098
Fund
-
11,098
-		 714
9,110
resources
£
22,527
Incoming
12,703
-		 ( 714 )
( 22,527 )
expended
Resources
£
( 12,703 )
( 9,110 )
-		 -
-
( 11,098 )
£
Transfers
-
( 11,098 )		 -
forward
balances
Fund
carried
-
£
-
-
-

25

PROPS NORTH EAST

A company limited by guarantee

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 March 2021

26 Analysis of charitable funds continued

Purpose of restricted funds

The Reach Fund - ACCESS The National Lottery Community Fund Community Foundation Collective Voice

To provide support to the charity and to enable it to consider social investment. Covid Response - to assist with CEO salary, laptops and social media adverts to assist with remote working due to Covid.

To contribute to purchase of a laptop and firewall.

Covid related to help with remote support – salaries, laptops, webchat training.

Transfers between funds

Between general unrestricted fund and restricted funds

Reason for Transfer

Reason for Transfer Amount £ The balance from 2020 for The Reach Fund - ACCESS was 11,098 transferred to unrestricted funds as PROPS North East has now met all the obligations in relation to this funding.

27 Analysis of net assets between funds

Tangible fixed assets
Cash at bank and in hand
Other net current assets
Creditors falling due within one
year		 84,844
Funds
Unrestricted
13,852
( 41,564 )
60,507
3,375
£		 30,000
Designated
-
-
30,000
-
£
Funds		 £
-
Restricted
-
-
-
-
Funds		 3,375
Total
90,507
13,852
( 41,564 )
114,844
£
2021		 Total
2020
£
2,808
44,224
5,703
( 10,016 )
42,719

26