## Pennine Magpie
Charity number 1147911
A company limited by guarantee number 04498986
## Annual Report and Financial Statements
for the year ended 31 December 2020
## Pennine Magpie
Annual Report and Financial Statements for the year ended 31 December 2020
|**Contents**|**Page**|
|---|---|
|Trustees' report|2 to 5|
|Examiner's report|6|
|Statement of financial activities|7|
|Balance sheet|8|
|Cashflow statement|9|
|Notes to the accounts|10 to 15|
**Prepared by West Yorkshire Community Accounting Service**
1
## Pennine Magpie
## Trustees' report for the year ended 31 December 2020
## **Reference and administrative details of the charity, its trustees and advisors**
The trustees during the financial year and up to and including the date the report was approved were: **Name Position Dates** John Platt Chair Rachel Bielby Resigned March 2021 Andrew Hutchinson Resigned July 2020 Jo Core Appointed February 2020 Nicola Abel Appointed February 2020 John West Treasurer Appointed July 2020 **Charity number** 1147911 Registered in England and Wales **Company number** 04498986 Registered in England and Wales **Registered and principal address** Unit 15 Calderdale Business Park Club Lane Halifax HX2 5DB **Bankers** National Westminster Shawbrook Bank Limited The Charity Bank Limited 8 Market Place Lutea House Fosse House Huddersfield Warley Hill Business Park 182 High Street HD1 2AL Great Warley Tonbridge Brentwood TN9 1BE CM13 3BE
## **Independent examiner**
Helen Galvin FCCA **West Yorkshire Community Accounting Service** Stringer House 34 Lupton Street Leeds LS10 2QW
## **Structure, governance and management**
The charity is a company limited by guarantee and was formed on 30 July 2002. It is governed by a memorandum and articles of association, as amended by special resolutions on 8 November 2011 and 8 March 2012. The liability of the members in the event of the company being wound up is limited to a sum not exceeding £10.
## **Method of recruitment and appointment of trustees**
The Board consists of a minimum of 3 trustees with no maximum. One third of all trustees (on a rotational basis - longest serving deemed to retire first) who have held office since the last Annual General Meeting (AGM), plus all new appointments retire at the next AGM. Retiring trustees are eligible for re-appointment.
New trustees are recommended for appointment by the existing trustees. Membership of Pennine Magpie is open to any individual or organisation provided that, in the opinion of the board, they do not present a conflict to the best interests of the Charity.
2
## Pennine Magpie
## Trustees' report (continued) for the year ended 31 December 2020
## **Objectives and activities**
## **The charity's objects**
The objects of the company are to relieve the needs of young people and adults with special learning needs through the provision of training, personal development activities and support services to provide the skills, confidence and infrastructure necessary for them to live a more independent and fulfilling life within the community.
## **The charity's main activities**
The Charity is established to benefit young people and adults with special needs. This is achieved by the provision of training and other facilities to enable such persons to acquire skills, confidence and the infrastructure necessary for them to live a more independent and fulfilling life within the community. There have been no material changes in the objectives or policies of the Charity during the year.
## **Public benefit statement**
The trustees have complied with the duty in Sec 17(5) of the Charities Act 2011 to have due regard to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing its aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set. The charitable activity focuses on supporting all young people and adults to further the charitable purpose for public benefit.
## **Achievements and performance**
2020 has been a difficult year. We were forced to close on 23rd March and were only able to reopen on the 18th September. We did anticipate the closure and set up a Facebook page prior to the lockdown to enable us to offer online support sessions from day 1. Despite the difficulties of the lockdown and working from home the staff developed quality online sessions which became the benchmark for other providers across Calderdale. Our members were contacted at least weekly to check that they were ok and offered support and guidance when they were finding things difficult.
When reopening in September, we had to work in a completely different way. We could not offer a twice daily choice of sessions. Small bubbles of 5 members had to stay in the same room with the same member of staff. We went over and above with regards to Covid-19 security with social distancing and face coverings being mandatory as well as a strict bubble system and increased hygiene. Both members and staff embraced this and it had the impact we desired with only 3 Covid-19 positive cases recorded and none of these were caught or transmitted within the organisation.
Covid-19 secure working has meant that many developments have been delayed and this has had an impact on the projected growth and income.We did manage to consult and develop our new brand during the lockdown, and launch it on 1st February 2021. This will play an integral part of the recovery and growth plan.
## **Financial review**
The net expenditure for the year was £19,918 which was all on unrestricted funds.
## **Reserves policy**
The charity's free reserves, excluding fixed assets, at the year end were £897,668.
The trustees have allocated reserves of between 3 and 6 months running costs (Approx. £150k and £300k) and £650k for the building fund.
3
## Pennine Magpie
## Trustees' report (continued) for the year ended 31 December 2020
## **Coronavirus impact statement**
Covid-19 did have a negative impact on our income towards the end of 2020 and we expect this to continue until June 2021. We do feel, at this point, that we will be able to make a full recovery by December 2022.
At the time of signing these accounts the charity has been impacted by the global Covid-19 virus as detailed above and in the achievements and performance. The trustees have reassessed the charity’s ability to continue for at least 12 months from the date that the accounts are approved and conclude that no material uncertainties exist that cast significant doubt on the charity’s ability to continue as a going concern.
4
## Pennine Magpie
## Trustees' report (continued) for the year ended 31 December 2020
## **Statement of trustees' responsibilities**
The trustees (who are also the directors for the purposes of company law) are responsible for preparing the Trustees report and the financial statements in accordance with the applicable law and UK Accounting Standards.
Company law requires the trustees to prepare financial accounts 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 the year. In preparing these financial statements, the trustees are required to:
select suitable accounting policies and apply them consistently;
observe the methods and principles in the Charities SORP;
make judgements and estimates that are reasonable and prudent;
state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the accounts on a going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (Charities SORP (FRS102)), and in accordance with the special provisions of the Companies Act 2006 relating to small companies.
Signed on behalf of the board of trustees on 26/07/2021
John Platt (Trustee)
5
## Pennine Magpie
## Independent examiner's report to the trustees of Pennine Magpie
I report to the charity trustees on my examination of the accounts of the charitable company for the year ended 31 December 2020, which are set out on pages 7 to 15.
## **Responsibilities and basis of report**
As the charity's trustees of the charitable company (and also its directors 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 charitable company are not required to be audited 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 ('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 charitable company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act.
I confirm that I am qualified to undertake the examination because I am a member of ACCA which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
- 2 the accounts do not accord with those records; or
- 3 the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair view' which is not a matter considered as part of an independent examination; or
- 4 the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
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.
Signed: …………………………………… Name: Helen Galvin FCCA
26/07/2021
## **West Yorkshire Community Accounting Service**
Stringer House 34 Lupton Street Leeds LS10 2QW
6
## Pennine Magpie
## Statement of Financial Activities
## (including summary income and expenditure account) for the year ended 31 December 2020
|Notes
2020
Unrestricted
funds
£
**Income from:**
Donations
(2)
2,520
Charitable activities
(3)
530,507
Fundraising
171
Bank interest
14,102
**Total income**
547,300
**Expenditure on:**
Charitable activities
(4)
567,218
**Total expenditure**
567,218
**Net (expenditure)**
(19,918)
**Net movement in funds**
(19,918)
**Fund balances brought forward**
279,643
**Fund balances carried forward**
(5)
259,725|2020
Designated
funds
£
-
-
-
-
-
-
-
-
**-**
650,000
650,000|2020
Total
funds
£
2,520
530,507
171
14,102
547,300
567,218
567,218
(19,918)
(19,918)
929,643
909,725|2019
Total
funds
£
1,452
557,952
238
3,013
562,655
617,847
617,847
(55,192)
(55,192)
984,835
929,643|
|---|---|---|---|
All incoming resources and resources expended derive from continuing activities.
7
## Pennine Magpie
## Balance sheet
|as at 31 December 2020
2020
Unrestricted
£
**Fixed assets**
Tangible assets
(6)
12,057
**Total fixed assets**
12,057
**Current assets**
Debtors and prepayments
(7)
81,721
Cash at bank and in hand
(8)
191,133
**Total current assets**
272,854
**Current liabilities:**
**amounts falling due within one year**
Creditors and accruals
(9)
25,186
**Total current liabilities**
25,186
**Net current assets**
247,668
**Total assets less current liabilities**
259,725
**Net assets**
259,725
**Funds**
Unrestricted funds
259,725
Designated funds
-
**Total funds**
259,725|2020
Designated
£
-
-
650,000
650,000
-
-
650,000
650,000
650,000
-
650,000
650,000|2020
Total
£
12,057
12,057
81,721
841,133
922,854
25,186
25,186
897,668
909,725
909,725
259,725
650,000
909,725
-|2019
Total
£
26,346
26,346
47,201
876,203
923,404
20,107
20,107
903,297
929,643
929,643
279,643
650,000
929,643|
|---|---|---|---|
For the year ending 31 December 2020 the charitable company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the charitable company to obtain an audit of its accounts for the year in question in accordance with section 476. The trustees (who also the directors for the purposes of company law) acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime and with FRS 102 (effective January 2019).
The financial statements were approved by the board of trustees on 26/07/2021
John Platt (Trustee)
8
## Pennine Magpie
## Statement of cash flows
## for the year ended 31 December 2020
|**Cash flows from operating activities:**
**Net cash provided by (used in) operating activities**
**Cash flows from investing activities:**
Dividends and interest
Purchase of tangible fixed assets
**Net cash provided by (used in) investing activities**
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
**Cash and cash equivalents at the end of the reporting period**
Adjustments for:
Depreciation charges
Other interest receivable and similar income
(Increase) / decrease in debtors and prepayments
Increase / (decrease) in creditors and accruals
**Net cash provided by (used in) operating activities**
**Analysis of cash and cash equivalents**
Notice deposits (less than 30 days)
**Total cash and cash equivalents**
**Reconciliation of net movement in funds to net cash flow**
**from operating activities**
Net movement in funds for the reporting period (as per the
statement of financial activities)
Cash in hand|2020
£
(49,172)
14,102
-
14,102
(35,070)
876,203
841,133
2020
£
(19,918)
14,289
(14,102)
(34,520)
5,079
(49,172)
2020
£
392
840,741
841,133|2019
£
7,203
3,013
2,823
5,836
7,394
868,809
876,203
2019
£
(55,192)
25,749
(3,013)
36,483
3,176
7,203
2019
£
460
875,743
876,203|
|---|---|---|
9
## Pennine Magpie
## Notes to the accounts
## for the year ended 31 December 2020
## **1 Accounting policies**
## **Basis of accounting**
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 financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by 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) and with the Charities Act 2011.
The charity constitutes a public benefit entity as defined by FRS 102. There has been no change to the accounting policies since last year.
No changes have been made to the accounts for previous years.
## **Going concern**
The trustees are satisfied that there are no material uncertainties about the charity's ability to continue.
## **Incoming resources**
All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity becomes entitled to the resources, it is more likely than not that the trustees will receive the resources and the monetary value can be measured with sufficient reliability.
## **Grants and donations**
Grants and donations are only included in the SOFA when the charity has unconditional entitlement to the resources.
Where grants are related to performance and specific deliverables, they are accounted for as the charity earns the right to consideration by its performance.
Donated goods for resale are valued at the amount actually realised upon their sale.
Donated assets, facilities or services are valued at their estimated value to the charity. This is the price that the charity estimates it would pay in the open market for equivalent items; or services and facilities of equivalent utility to the charity.
## **Expenditure and liabilities**
Expenditure is recognised on an accrual basis as a liability is incurred. Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out the resources and the amount of the obligation can be measured with reasonable certainty.
## **Taxation**
As a charity the organisation benefits from rates relief and is generally exempt from income tax and capital gains tax but not from VAT. Irrecoverable VAT is included in the cost of those items to which it relates.
10
## Pennine Magpie
## Notes to the accounts
## for the year ended 31 December 2020
## **1 Accounting policies continued**
## **Tangible fixed assets**
Tangible fixed assets costing more than £750 are capitalised and included at cost including any incidental expenses of acquisition. Gifted assets are shown at the value to the charity on receipt. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straight line basis over their expected useful economic lives as follows: Fixtures and fittings: over 5 years Computer equipment: over 5 years Motor vehicles: over 10 years
## **Pensions**
The charity operates a defined contribution scheme for the benefit of its employees. The costs of contributions are recognised in the year they are payable.
## **Fund accounting**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.
Designated funds are unrestricted funds earmarked by the trustees for particular purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the accounts.
11
## Pennine Magpie
## Notes to the accounts continued
## for the year ended 31 December 2020
|**2 Donations**
General donations
**3 Charitable activities**
Support services
Out of hours support
Kitchen and tuckshop
Garden produce sales
Student events|2020
Total
funds
£
2,520
2020
Total
funds
£
521,092
7,652
1,545
-
218
530,507|2019
Total
funds
£
1,452
2019
Total
funds
£
533,901
14,204
8,796
503
548
557,952|
|---|---|---|
12
## Pennine Magpie
## Notes to the accounts continued
## for the year ended 31 December 2020
|**4 Charitable activities**
Salaries
(4a)
Payroll, pension and life assurance charges
Staff support costs
Rent
Light and heat
Insurance
Repairs and maintenance
Telephone and internet
IT support, software and website
Depreciation
Student events and expenses
Training and development
Kitchen and tuckshop
Motor vehicle expenses
Printing, postage and stationery
Purchases
DBS checks
Sundry expenses
Access hospitality project
Membership and subscriptions
Advertising and rebranding
Independent examination and accountancy
Legal and professional fees
Bank charges
Governance
Equipment rental
Equipment purchases
Refreshments and Christmas party
Travel expenses
Garden construction
Health and safety|2020
Total
funds
£
411,410
1,213
163
50,385
9,334
4,409
3,165
4,064
12,128
14,289
266
4,985
1,706
4,754
2,556
4,110
138
875
-
3,825
16,773
1,800
970
622
13
3,480
6,061
162
1,894
10
1,658
567,218|2019
Total
funds
£
446,069
1,228
313
45,832
10,780
4,222
5,608
3,386
9,965
25,749
2,521
8,508
7,226
7,568
3,176
2,560
378
-
6,600
3,883
1,666
1,800
895
807
302
3,697
4,552
2,591
4,718
423
824
617,847|
|---|---|---|
13
## Pennine Magpie
## Notes to the accounts continued
## for the year ended 31 December 2020
|**4a**
**Staff costs and numbers**
Gross salaries
Social security costs
Employment allowance
Pensions|2020
£
375,027
29,225
(4,000)
11,158
411,410|2019
£
405,016
31,787
(3,000)
12,266
446,069|
|---|---|---|
The average number employees during the year was 18.7, being an average of 15.9 full time equivalent (2019: 21.9, 16.4 FTE). There were no employees with emoluments above £60,000.
|**5 **
**6 **|**Defined contribution pension scheme**
Costs of the scheme to the charity for the year
Amount of any contributions outstanding at the year
**Designated funds**
**Tangible assets**
**Cost**
At 1 January 2020
94,526
Additions
-
At 31 December 2020
94,526
**Depreciation**
At 1 January 2020
94,526
Charge for year
-
At 31 December 2020
94,526
**Net book value**
At 31 December 2020
-
At 31 December 2019
-
Leasehold
improvements|end
Balance b/f
Incoming
£
£
650,000
-
650,000
-
**Purpose of restriction**
To purchase a building
£
27,042
78,142
-
-
27,042
78,142
19,827
68,134
4,385
4,512
24,212
72,646
2,830
5,496
7,215
10,008
Computer
equipment
Motor
vehicles|2020
£
11,158
-
Outgoing
£
-
-
£
117,174
-
117,174
108,051
5,392
113,443
3,731
9,123
Furniture
and fixtures|2019
£
12,266
2,235
Balance c/f
£
650,000
650,000
Total
£
316,884
-
316,884
290,538
14,289
304,827
12,057
26,346|
|---|---|---|---|---|
14
## Pennine Magpie
## Notes to the accounts continued
## for the year ended 31 December 2020
|**7 Debtors and prepayments**
Debtors
Prepayments
**8 Cash at bank and in hand**
Current account
Reserve and savings accounts
Cash in hand
**9 Creditors and accruals**
Creditors
Accruals|2020
£
74,926
6,795
81,721
2020
£
67,986
772,755
392
841,133
2020
£
23,386
1,800
25,186|2019
£
43,069
4,132
47,201
2019
£
73,190
802,553
460
876,203
2019
£
18,307
1,800
20,107|
|---|---|---|
## **10 Related party transactions**
During the year no trustees were paid any expense (previous year: 1 trustee was paid £162 in respect of travel).
## **Trustee remuneration and benefits**
No trustee received any remuneration or benefit during this or the previous year.
## **11 Operating leases**
|Within one year
In the second to fifth years inclusive
Over five years from the balance sheet date
Expected future minimum lease payments over the remaining
life of the lease, analysed into the period in which the
commitment falls due:|Rent
£
11,640
-
-
11,640|Equipment
£
3,346
6,690
-
10,036|
|---|---|---|
15