## Pennine Magpie
Charity number 1147911
A company limited by guarantee number 04498986
## Annual Report and Financial Statements
for the year ended 31 December 2021
## Pennine Magpie
Annual Report and Financial Statements for the year ended 31 December 2021
|**Contents**|**Page**|
|---|---|
|Trustees' report|2 to 4|
|Examiner's report|5|
|Statement of financial activities|6|
|Balance sheet|7|
|Cashflow statement|8|
|Notes to the accounts|9 to 15|
**Prepared by West Yorkshire Community Accounting Service**
1
## Pennine Magpie
## Trustees' report for the year ended 31 December 2021
## **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 John West Treasurer Rachel Bielby Resigned March 2021 Jo Core Nicola Abel **Charity number** 1147911 Registered in England and Wales **Company number** 04498986 Registered in England and Wales
## **Registered and principal address**
Unit 15 and 4a Calderdale Business Park Club Lane Halifax HX2 8DB
## **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 Accountancy Service CIO** 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. New articles were adopted by special resolution on 8 March 2012 as amended by special resolution on 6 June 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 2021
## **Objectives and activities**
## **The charity's objects**
The objects of the company are to benefit young persons and adults with special 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**
2021 was another unsettled year where the organisation had to work differently to enable the safe care of its members during the pandemic. Whilst we were able to reopen in September 2020, our income was affected, as only those attending could be charged. As many of our members are classed as vulnerable a significant proportion of members continued to isolate.
We did not have to reduce staff numbers but were able to reduce staff hours by agreeing reduced weekly hours to a small number of staff who had requested this. During the summer of 2021 things started to ease a little with more members returning and new members joining us.
Outreach had previously been a very small part of our offer but in July 2021 we decided to relaunch the service, opening it up to a wider audience. The service was very well received with good relationships formed with brokerage staff, professionals, outreach members and their carers. We also piloted outreach activities which were planned staffed activities each Thursday evening. The pilot was very successful and now outreach activities are also part of our ongoing offer.
The 2021 budget predicted a loss but due to things improving in the summer and the early success of the Outreach pilots, this loss was significantly reduced.
We anticipate that the increase in service provision will continue in 2022.
## **Financial review**
The net expenditure for the year was £10,754, including net expenditure of £11,254 on unrestricted funds and net income of £500 on restricted funds.
We did consider the impact of Covid-19 on the2021 budget and predicted a loss of around £32k. However, our revamped Outreach service which was formally launched in Aug 21 has been very well received and has impacted positively on the projected loss.
At the time of signing these accounts the charity has been impacted by the global Covid-19 virus. 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.
## **Reserves policy**
The charity's free reserves, excluding fixed assets, at the year end were £894,495.
The trustees have allocated reserves of between 3 and 6 months running costs (Approx. £150k and £300k) and have designated £650k for the building fund.
3
## Pennine Magpie
## Trustees' report (continued) for the year ended 31 December 2021
## **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 14/06/2022
John West (Trustee)
4
## 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 2021, which are set out on pages 6 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
14/06/2022
## **West Yorkshire Community Accountancy Service CIO**
Stringer House 34 Lupton Street Leeds LS10 2QW
5
## Pennine Magpie
## Statement of Financial Activities
## (including summary income and expenditure account) for the year ended 31 December 2021
|Notes
2021
Unrestricted
funds
£
**Income and endowments from:**
Donations
220
Charitable activities
(2)
535,618
Fundraising
319
Bank interest
2,573
**Total income**
538,730
**Expenditure on:**
Charitable activities
(3)
549,984
**Total expenditure**
549,984
**Net (expenditure) / income**
(11,254)
**Fund balances brought forward**
909,725
**Fund balances carried forward**
(4)
898,471|2021
Restricted
funds
£
-
1,000
-
-
1,000
500
500
500
-
500|2021
Total
funds
£
220
536,618
319
2,573
539,730
550,484
550,484
(10,754)
909,725
898,971|2020
Total
funds
£
2,520
530,507
171
14,102
547,300
567,218
567,218
(19,918)
929,643
909,725|
|---|---|---|---|
All incoming resources and resources expended derive from continuing activities.
6
## Pennine Magpie
## Balance sheet
|as at 31 December 2021
2021
Unrestricted
£
**Fixed assets**
Tangible assets
(5)
3,976
**Total fixed assets**
3,976
**Current assets**
Debtors and prepayments
(6)
61,809
Cash at bank and in hand
(7)
851,911
**Total current assets**
913,720
**Current liabilities:**
**amounts falling due within one year**
Creditors and accruals
(8)
19,225
**Total current liabilities**
19,225
**Net current assets**
894,495
**Net assets**
898,471
**Funds**
Unrestricted funds
General unrestricted funds
248,471
Designated funds
(9)
650,000
Restricted funds
-
**Total funds**
898,471|2021
Restricted
£
-
-
-
500
500
-
-
500
500
-
-
500
500|2021
Total
£
3,976
3,976
61,809
852,411
914,220
19,225
19,225
894,995
898,971
248,471
650,000
500
898,971|2020
Total
£
12,057
12,057
81,721
841,133
922,854
25,186
25,186
897,668
909,725
909,725
-
-
909,725|
|---|---|---|---|
For the year ending 31 December 2021 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 14/06/2022
John West (Trustee)
7
## Pennine Magpie
## Statement of cash flows
## for the year ended 31 December 2021
|**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|2021
£
9,527
2,573
822
3,395
11,278
841,133
852,411
2021
£
(10,754)
8,903
(2,573)
19,912
(5,961)
9,527
2021
£
1,080
851,331
852,411|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|
|---|---|---|
8
## Pennine Magpie
## Notes to the accounts
## for the year ended 31 December 2021
## **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.
9
## Pennine Magpie
## Notes to the accounts
## for the year ended 31 December 2021
## **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.
## **Leases**
Rents under operating leases are charged on a straight line basis over the lease term or to an earlier date if the lease can be determined without financial penalty.
10
## Pennine Magpie
## Notes to the accounts continued
## for the year ended 31 December 2021
|**2 Charitable activities**
2021
Unrestricted
funds
£
Grants for charitable activities
North Halifax Partnership
-
Support services
497,813
Out of hours support
35,296
Kitchen and tuckshop
-
Garden produce sales
20
Student events
2,489
535,618
**3 Charitable activities expenditure**
2021
Activities undertaken
directly
£
Charitable activities
424,509
424,509
**Support costs**
Management and finance
Office costs
Legal and professional
Governance|2021
Restricted
funds
£
1,000
-
-
-
-
-
-
2021
Support
costs
£
125,975
125,975|2021
Total
funds
£
1,000
497,813
35,296
-
20
2,489
536,618
2021
Total
funds
£
550,484
550,484
2021
Total
funds
£
57,506
64,760
1,909
1,800
125,975|2020
Total
funds
£
-
521,092
7,652
1,545
-
218
530,507
2020
Total
funds
£
567,218
567,218
2020
Total
funds
£
56,534
77,569
1,108
1,962
137,173|
|---|---|---|---|
11
## Pennine Magpie
## Notes to the accounts continued
## for the year ended 31 December 2021
|**3 Charitable activities expenditure continued**
Salaries
(3a)
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
Subscriptions and licences
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
**3a**
**Staff costs and numbers**
Gross salaries
Social security costs
Employment allowance
Pensions|2021
Unrestricted
funds
£
409,426
925
379
38,827
14,569
5,289
4,243
2,025
8,082
8,903
2,760
5,872
-
6,028
2,263
5,389
1,189
1,143
2,658
8,562
1,800
720
845
13
5,111
2,195
4,105
3,646
1,760
1,257
549,984|2021
Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
500
-
500|2021
Total
funds
£
409,426
925
379
38,827
14,569
5,289
4,243
2,025
8,082
8,903
2,760
5,872
-
6,028
2,263
5,389
1,189
1,143
2,658
8,562
1,800
720
845
13
5,111
2,195
4,105
3,646
2,260
1,257
550,484
2021
£
375,600
26,376
(4,000)
11,450
409,426|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
2020
£
375,027
29,225
(4,000)
11,158
411,410|
|---|---|---|---|---|
The average number of employees during the year was 20.3, being an average of 15.1 full time equivalent (2020: 19.7, 15.8 FTE).
There were no employees with emoluments above £60,000.
|There were no employees with emoluments above £60,000.
(2020: 19.7, 15.8 FTE).|||
|---|---|---|
|**Defined contribution pension scheme**|2021|2020|
||£|£|
|Costs of the scheme to the charity for the year|11,450|11,158|
|Amount of any contributions outstanding at the year end|2,316|-|
12
## Pennine Magpie
## Notes to the accounts continued
## for the year ended 31 December 2021
|**Restricted funds**
North Halifax Partnership (1)
North Halifax Partnership (2)|Balance b/f
£
-
-
-|Incoming
£
500
500
1,000|Outgoing
£
500
-
500|Balance c/f
£
-
500
500|
|---|---|---|---|---|
## **4 Restricted funds**
## **Fund name Purpose of restriction**
North Halifax Partnership (1) Towards materials for the sensory garden project North Halifax Partnership (2) Towards the development of the sensory room
|**5 **
**6 **
**7 **
**8 **|**Tangible assets**
**Cost**
At 1 January 2021
Additions
At 31 December 2021
**Depreciation**
At 1 January 2021
Charge for year
At 31 December 2021
**Net book value**
At 31 December 2021
At 31 December 2020
**Debtors and prepayments**
Debtors
Prepayments
**Cash at bank and in hand**
Cash at bank
Cash in hand
**Creditors and accruals**
Creditors
Accruals|94,526
-
94,526
94,526
-
94,526
-
-
Leasehold
improvements|27,042
-
27,042
24,212
2,730
26,942
100
2,830
Computer
equipment|£
78,142
-
78,142
72,646
4,512
77,158
984
5,496
Motor
vehicles|£
117,174
822
117,996
113,443
1,661
115,104
2,892
3,731
2021
£
54,543
7,266
61,809
2021
£
851,331
1,080
852,411
2021
£
17,425
1,800
19,225
Furniture
and fixtures|Total
£
316,884
822
317,706
304,827
8,903
313,730
3,976
12,057
2020
£
74,926
6,795
81,721
2020
£
840,741
392
841,133
2021
£
23,386
1,800
25,186|
|---|---|---|---|---|---|---|
13
## Pennine Magpie
## Notes to the accounts continued
## for the year ended 31 December 2021
|**9 Designated funds**|Balance b/f
£
650,000|Incoming
£
-|Outgoing
£
-|Balance c/f
£
650,000|
|---|---|---|---|---|
## **Purpose of restriction**
To purchase a building
## **10 Related party transactions**
## **Trustee expenses**
No trustee received any expenses during the year (previous year: 1 trustee was paid £162 in respect of
## **Trustee remuneration and benefits**
No trustee received any remuneration or benefit during this or the previous year.
## **Remuneration and benefits received by key management personnel**
The key management personnel of the charity include the trustees and the Chief Officer. The total employee benefits received were £55,736 (2020: £54,699).
No trustee received any remuneration or benefit in this capacity during this or the previous year.
## **11 Operating leases**
|Within one year
In the second to fifth years inclusive
Expected future minimum lease payments over the remaining life of the
lease, analysed into the period in which the commitment falls due:|2022
£
15,957
8,199
24,156|2021
£
14,986
6,690
21,676|
|---|---|---|
14
## Pennine Magpie
## Statement of Financial Activities including comparatives for all funds (including summary income and expenditure account) for the year ended 31 December 2021
|2021
2020
Unrestricted Unrestricted
funds
funds
£
£
**Income**
Donations
220
2,520
Charitable activities
535,618
530,507
Fundraising
319
171
Bank interest
2,573
14,102
**Total income**
538,730
547,300
**Expenditure**
Charitable activities
549,984
567,218
**Total expenditure**
549,984
567,218
**Net income / (expenditure)**
(11,254)
(19,918)
**Fund balances brought forward**
909,725
929,643
**Fund balances carried forward**
898,471
909,725|2021
Restricted
funds
£
-
1,000
-
-
1,000
500
500
500
-
500|2020
Restricted
funds
£
-
-
-
-
-
-
-
-
-
-|2021
Total
funds
£
220
536,618
319
2,573
539,730
550,484
550,484
(10,754)
909,725
898,971|2020
Total
funds
£
2,520
530,507
171
14,102
547,300
567,218
567,218
(19,918)
929,643
909,725|
|---|---|---|---|---|
15