## 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
- 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: 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