Pennine Magpie
Charity number 1147911
A company limited by guarantee number 04498986
Annual Report and Financial Statements
for the year ended 31 December 2022
Pennine Magpie
Annual Report and Financial Statements for the year ended 31 December 2022
| Contents | Page |
|---|---|
| Trustees' report | 2 to 4 |
| Examiner's report | 5 |
| Statement of financial activities | 6 |
| Balance sheet | 7 |
| Statement of cash flows | 8 |
| Notes to the accounts | 8 to 16 |
Prepared by West Yorkshire Community Accountancy Service CIO
1
Pennine Magpie
Trustees' report for the year ended 31 December 2022
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 Jo Core Nicola Abel Resigned 25 January 2023 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
Simon Bostrom FCIE 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 2022
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.
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
2022 has been an exceptional year of growth with income increasing by 73% from the previous year. We supported 131 members in 2022. The day service delivered around 230 days support per week (approx. 70,000 hours of support over the year) with the Outreach delivering 13,000 hours of support.
In addition, we delivered 60 activity evenings.
Of course, this level of growth meant a number of new staff had to be recruited. Luckily, we did not face any particular issues with recruitment, although it did seem like a continuous recruitment campaign to keep up with demand.
Plans for future periods
As we continue to grow, the charity will put further efforts into finding the right property to purchase.
We will also invest in replacing significant assets such as our vehicles. Central roles, as well as operational frontline roles, will also be created/expanded to ensure quality is at the forefront of everything we do. For example, a new Finance manager post has been created to manage the increased income and complexities that growth brings.
Going forward, continued growth will be managed carefully. We will monitor the number of members, consider their individual needs and if and how we can meet those as well as monitor the capacity of the current building for those accessing the day service.
Financial review
The net income for the year was £198,229, including net income of £192,908 on unrestricted funds and net income of £5,321 on restricted funds after transfers.
Reserves policy
Magpies keeps between 3 and 6 months’ running costs as reserves for the purpose of enabling the smooth running of the charity. Magpies has seen a dramatic growth during 2022. Running costs have therefore been increased to cover this.
Magpies continues to look for appropriate premises/land to buy. Finding appropriate premises has proved extremely difficult over the past few years. We hope to find something during 2023. Due to inflation costs and the rise in property prices we have increased the designated building funds to £750k.
The charity's free reserves, excluding fixed assets, at the year end were £1,084,079. After deducting designated funds this leaves £334,079.
3
Pennine Magpie
Trustees' report (continued) for the year ended 31 December 2022
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.
Approved by the board of trustees on …………..……...…….
Signed: ………………..…………. (Trustee)
Name: ……………..…..………….
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 2022, which are set out on pages 6 to 16.
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 fellow 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 fellow of ACIE 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
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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
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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: Simon Bostrom FCIE
Date: …………………….
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 2022
| Notes 2022 Unrestricted funds £ Income from: Donations and legacies 990 Charitable activities (2) 938,442 Fundraising 222 Bank interest 4,093 Total income 943,747 Expenditure on: Charitable activities (3) 750,839 Total expenditure 750,839 Net income / (expenditure) 192,908 Fund balances brought forward 898,471 Fund balances carried forward (4) 1,091,379 |
2022 Restricted funds £ - 11,380 2,000 - 13,380 8,059 8,059 5,321 500 5,821 |
2022 Total funds £ 990 949,822 2,222 4,093 957,127 758,898 758,898 198,229 898,971 1,097,200 |
2021 Total funds £ 220 536,618 319 2,573 539,730 550,484 550,484 (10,754) 909,725 898,971 |
|---|---|---|---|
All incoming resources and resources expended derive from continuing activities.
6
Pennine Magpie
Balance sheet
| as at 31 December 2022 2022 Unrestricted £ Fixed assets Tangible assets (5) 14,272 Total fixed assets 14,272 Current assets Debtors and prepayments (6) 163,567 Current asset investments (7) 309,401 Cash at bank and in hand (8) 637,760 Total current assets 1,110,728 Current liabilities: amounts falling due within one year Creditors and accruals (9) 26,649 Total current liabilities 26,649 Net current assets / (liabilities) 1,084,079 Total assets less current liabilities 1,098,351 Provision for doubtful debts 6,972 Net assets 1,091,379 Funds Unrestricted funds General unrestricted funds 341,379 Designated funds (10) 750,000 Unrestricted funds 1,091,379 Restricted funds - Total funds 1,091,379 |
2022 Restricted £ - - - - 5,821 5,821 - - 5,821 5,821 - 5,821 - - - 5,821 5,821 |
2022 Total £ 14,272 14,272 163,567 309,401 643,581 1,116,549 26,649 26,649 1,089,900 1,104,172 6,972 1,097,200 341,379 750,000 1,091,379 5,821 1,097,200 |
2021 Total £ 3,976 3,976 61,809 612,367 240,044 914,220 19,225 19,225 894,995 898,971 - 898,971 898,471 - 898,471 500 898,971 |
|---|---|---|---|
For the year ending 31 December 2022 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 …………..……...…….
Signed: ……………...………….…. (Trustee)
Name: ……………..…..………….
7
Pennine Magpie
Statement of cash flows
for the year ended 31 December 2022
| Cash flows from operating activities: Net cash provided by (used in) operating activities Cash flows from investing activities: Bank interest Purchase of tangible fixed assets (excluding donated 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 Provisions Bank interest (Increase) / decrease in debtors Increase / (decrease) in creditors 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 |
2022 £ 110,639 4,093 (14,161) (10,068) 100,571 852,411 952,982 2022 £ 198,229 3,865 6,972 (4,093) (101,758) 7,424 110,639 2022 £ 797 952,185 952,982 |
2021 £ 9,527 2,573 (822) 1,751 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 |
|---|---|---|
8
Pennine Magpie
Notes to the accounts
for the year ended 31 December 2022
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.
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.
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.
9
Pennine Magpie
Notes to the accounts
for the year ended 31 December 2022
1 Accounting policies continued
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.
Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.
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 2022
| 2 Charitable activities income Grants for charitable activities Royal Mencap society (RMS) RMS Southern Division North Halifax Partnership Support services Out of hours support Garden produce sales Student events 3 Charitable activities expenditure Activities undertaken directly £ Charitable activities 648,575 648,575 Support costs 3a Support cost type Management and finance Office costs Legal and professional Governance |
2022 Unrestricted funds £ - - - 667,032 269,892 - 1,518 938,442 Grant funding of activities £ 4,748 4,748 Charitable activity £ 61,152 40,693 1,917 - 103,762 |
2022 Restricted funds £ 4,880 6,500 - - - - - 11,380 Support costs £ 105,575 105,575 Governance activity £ - - - 1,813 1,813 |
2022 Total funds £ 4,880 6,500 - 667,032 269,892 - 1,518 949,822 2022 Total cost £ 758,898 758,898 2022 Total cost £ 61,152 40,693 1,917 1,813 105,575 |
2021 Total funds £ - 1,000 497,813 35,296 20 2,489 536,618 2021 Total cost £ 550,484 550,484 2021 Total cost £ 57,506 35,049 1,909 1,800 96,264 |
|---|---|---|---|---|
11
Pennine Magpie
Notes to the accounts continued
for the year ended 31 December 2022
| 3b Charitable activities expenditure detail Salaries NI and pensions (8c) 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 General purchases DBS checks Arts and crafts costs 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 Provision for bad debts Donations 3c Staff costs and numbers Gross salaries Social security costs Employment allowance Pensions |
2022 Unrestricted funds £ 574,992 - 47,278 17,100 5,971 13,216 6,958 7,987 3,865 3,394 5,751 26 8,256 1,902 10,456 1,917 1,621 4,670 2,709 1,800 1,193 997 13 4,109 2,152 3,103 9,623 60 - 6,972 2,748 750,839 |
2022 Restricted funds £ - - - - - - - - - - - - - - - - - - - - - - - - 6,059 - - - - - 2,000 8,059 |
2022 Total cost £ 574,992 - 47,278 17,100 5,971 13,216 6,958 7,987 3,865 3,394 5,751 26 8,256 1,902 10,456 1,917 1,621 4,670 2,709 1,800 1,193 997 13 4,109 8,211 3,103 9,623 60 - 6,972 4,748 758,898 2022 £ 531,093 35,508 (5,000) 13,391 574,992 |
2021 Total cost £ 409,426 379 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 1,645 845 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 |
|---|---|---|---|---|
The average number of employees during the year was 25.3, being an average of 15.7 full time equivalent (2021: 20.3, 15.1 FTE). There were no employees with emoluments above £60,000.
12
Pennine Magpie
Notes to the accounts continued
for the year ended 31 December 2022
| Defined contribution pension scheme Costs of the scheme to the charity for the year Amount of any contributions outstanding at the year end 4 Restricted funds Balance b/f Incoming £ £ North Halifax Partnership 500 - Halifax Rugby Union donation - 2,000 Royal Mencap Society 1 - 4,880 Royal Mencap Society 2 - 6,500 500 13,380 |
Outgoing £ 500 2,000 - 5,559 8,059 |
2022 £ 13,391 3,727 Transfers £ - - - - - |
2021 £ 11,450 2,316 Balance c/f £ - - 4,880 941 5,821 |
|---|---|---|---|
Fund name
North Halifax Partnership Halifax Rugby Union donation Royal Mencap Society 1 Royal Mencap Society 2
Purpose of restriction
Towards materials for the sensory garden project.
Donation from CP & ST Siddall for Halifax Rugby club. Towards mixed ability football.
Towards the 'Let's get digital' programme for organisational digital needs and for an equipment bursary for members to access new technology and increase their digital skills.
| **5 ** | Tangible assets Cost At 1 January 2022 Additions At 31 December 2022 Depreciation At 1 January 2022 Charge for year At 31 December 2022 Net book value At 31 December 2022 At 31 December 2021 |
£ 94,526 - 94,526 94,526 - 94,526 - - Leasehold improvements |
£ 27,042 5,643 32,685 26,942 476 27,418 5,267 100 Computer equipment |
£ 78,142 - 78,142 77,158 984 78,142 - 984 Motor vehicles |
£ 117,996 8,518 126,514 115,104 2,405 117,509 9,005 2,892 Furniture and fixtures |
Total £ 317,706 14,161 331,867 313,730 3,865 317,595 14,272 3,976 |
|---|---|---|---|---|---|---|
13
Pennine Magpie
Notes to the accounts continued
for the year ended 31 December 2022
| 6 Debtors and prepayments Debtors Prepayments Accrued income Other debtors 7 Current asset investments Cash equivalents on deposit 8 Cash at bank and in hand Cash at bank Cash in hand 9 Creditors and accruals Creditors Accruals Taxation and social security Other creditors 10 Designated funds Building fund Fund name Building fund |
2022 £ 140,367 7,331 15,383 486 163,567 2022 £ 309,401 309,401 2022 £ 642,784 797 643,581 2022 £ 6,494 4,031 12,397 3,727 26,649 Balance b/f Incoming Outgoing Transfers £ £ £ £ 650,000 - - 100,000 650,000 - - 100,000 Purpose of designation Funds set aside towards the purchase of a building. |
2021 £ 51,915 7,266 2,628 - 61,809 2021 £ 612,367 612,367 2021 £ 238,964 1,080 240,044 2021 £ 4,075 5,916 6,918 2,316 19,225 Balance c/f £ 750,000 750,000 |
|---|---|---|
11 Related party transactions
Trustee expenses
No trustee received any expenses during this year or the previous year.
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 total employee benefits received by key management personnel were £58,962 (previous year: £55,736).
14
Pennine Magpie
Notes to the accounts continued
for the year ended 31 December 2022
| 12 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: |
2022 £ 4,320 3,480 - 7,800 |
2021 £ 15,957 8,199 - 24,156 |
|---|---|---|
15
Pennine Magpie
Statement of Financial Activities including comparatives for all funds (including summary income and expenditure account) for the year ended 31 December 2022
| 2022 2021 Unrestricted Unrestricted funds funds £ £ Income Donations and legacies 990 220 Charitable activities 938,442 535,618 Fundraising 222 319 Bank interest 4,093 2,573 Total income 943,747 538,730 Expenditure Charitable activities 750,839 549,984 Total expenditure 750,839 549,984 Net income / (expenditure) 192,908 (11,254) Fund balances brought forward 898,471 909,725 Fund balances carried forward 1,091,379 898,471 |
2022 Restricted funds £ - 11,380 2,000 - 13,380 8,059 8,059 5,321 500 5,821 |
2021 Restricted funds £ - 1,000 - - 1,000 500 500 500 - 500 |
2022 Total funds £ 990 949,822 2,222 4,093 957,127 758,898 758,898 198,229 898,971 1,097,200 |
2021 Total funds £ 220 536,618 319 2,573 539,730 550,484 550,484 (10,754) 909,725 898,971 |
|---|---|---|---|---|
16