Company resiglstration number. 8139367 Charty registration number.. 1149813 SC047781 The Junction 42 Foundation (A company limited by guarantee) Trustees Annual Report and Accounts Year Ended 31st March 2022 JUNC+ION°' The Junctlon 42 Foundation Year Ended 31st March 2022 Contents Page Page Legal and Administrative Information Trustee's Annual Report Independent Auditors Report 10 Statement of Financial Activities 13 Statement of Financial Position 14 Statement of Cash Flows 15 Noles to the Financial Statements 16 The Junction 42 Foundation Year Ended 31st March 2022 Legal and Administrative Infom)ation Relergnc8 The Junction 42 Foundation a charitable company, formed in 2012 to prO￿ld¢ help lo people who have criminal Gonwclions or those wnsidered al risk of offending against the law. 11 is a CLYnpany limite(I by guarantee and 18 also a registered charity (in England & Wale8.' and in Scotlandl. Registered Charity Numbe 1149813 SC047781 England and Wales Scolland Roglstered Company Numb8r 8139367 Reglstered Offico Bnjnswick Methodist Chur¢h Brunswick Place Newcastle upon Tyne NE17BJ W•bsite www.junctlon42.org Trust•8s Mr Richard Vardy Bishop Francls Whr(e Dr Paul Cassidy Mrs Alison Edward5 Mrs Sarah Wade Chief Executive Offlcer Joanne O'connor Primary Bankers HSBC 8ank plc 279 Whitley Roa Whit￿Y Bay Tyne & Wear NE26 2SW Independent Auditor Stephenson Coales Audit Limited West 2, Asama Court Newcastle Busines$ Park Newcastle upon NE4 7YD The Junctlon 42 Foundation Year Ended 31st March 2022 Trusteos, Annual Report The trustses present their report and the finar￿la1 statements forthe year endgd 31 March 2022. These are prepared in accordance with the goveming document, the récommendations of the Slalgmenl ol Recommended Practice, applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS1021 and the sm811 companies, regime of the Comp8nies Act 2006. Rèfarence and admlnlstratlve detalls The Junction 42 Foundation is a charitable eompany, fom*d in 2012 to provide help to pgt)ple who have cximin81 conwclions or those considered at risk of offènding against the law. It Is a company limited by guarantee and is also a registered charity lin England & Wales., and in Scollandl. The Irustees, who a￿ also directors for the purposes of company law, who seryed during the ye8r and up lo the date of this report are sel out on page 1. Structure, govomance and management As a company limlled by guarantee. there Is no share capitol. Every member of tho company undertakes lo contribute lo the assets ol the company in the event of il bein9 woufKI up whi15t being a member or within one year ol cèasing lo be 8 member. such amount not to exceed £10. Tho relevant goveming document is the Memorandum and Articles of Association. New trustees may be appointed by resolution passed al a gpecial meeting of the thjstees. or by stalutory power$. The training and inducli¢Jn for new Irustses will deperKI on experience. The trustees are rgspon$ible for setting general policy. bul the day to day running of the charitable company is ddeg8t8d Its an employed man8gemenl team headed by the Chief executive off￿er. Objectlves and prfnclpal actlvities The charitsble objects'ves of the company are.. 1. To relievg the charllablè needs of those in need by re8son of current and previous crirninal convictions or those considered at risk of offendlng against the law in particular bul not excluswety by creation of employment, housing, education. training and Ccmmunty projects lo assist with their rehabilitation 8nd to do this with a Christian ethic. 2. The prevention or alleviation of poverty and sickness through the prDV15ign of grants or swmces to individuals in n88d by reason of current and previou5 criminal conviction6 or those considered al risk of offending agalnsl the law andlor charilies, or other organisalion8 working lo prevent or relieve poverty, homelessness and sickness. The Junction 42 Foundation Year Ended 31st March 2022 Trustees, Annual Report Rlsks The trustees confim that the major risks lo vthich the charity is &xposed, in partiwlar those related to the operations and finances of the charity. have been idenlifiod and rgvSewed,- and that systems are In place lo mibgate those risks. Strategic developments in risk management this year indude-. 37 pollcy documents either ￿Viewed or written. Induding pa￿C￿lar attention lo Inft)rm8tion Govam8nce First Aid training for 12 stsff Improvement in financi81 controls Publlc beneflt The trustees ore satisfied th81 they have complied with the duty in Section 17151 ol the Charibes Act 2011 to have due regard to public benefit guidance published by the Charity Commlsslon. When planning tha charit￿$ adivf(ies, the Iruslees considered thè Charity Commission Guidance on public benefit. The trustees also considered how the charity had succeeded in delivering its aims. inGluding any public bènefit, vthen reviewing the achlevernents for the year Sel out below. The Junction 42 Foundation Year Ended 31st March 2022 Trustoes, Annual Report Achi6vernen18 and perfomianGe Junction 42 exists to see the lives Df offenders and their communilios visibly transfomiod through- Employability and entwpreneurlal training., Creative education and engagem$nt', Through the gate mentoring and faith support. Our values are.. Joumgying wth Inspirational Relational Missional Creating opportunities This ts Junction 42,8 year of operation Inlroduction As we exited lockdown restriclions Ihis yèar, we were able to re-launch projects with renewed vigour and were succ8ssful in consolidating the programmes we had Stsrted during Ihe pandetni¢. as part of our ongoing and regulai services. On Employablllty and ontreprenourshlp 155 indmduab completed our Wcwk Our programme 2021-22 and we provided additional support to another 188 individuals across Tyne and We8r, DurhamlTees V8118y and Edinburgh. Clients on the Work Out programme receive 1..2..1 mentoring support and groupwork opportunitl8s ID improve their social and lrfe skills. wellbeing, employability, and engagement wth slalutory serwces. l• 755 34 IX furKling securÈ* ra waci1(al supp￿.,, ramm en °Jundion 42 have been amazing... Itro been too unfit fo do ¢he mai(ffty of manu81 handling Ihaf quiredforlabounng. so they've gorn￿ doing foolball and th8 gym to buildmy eneryy up, whKh it has. Through Junclion 42 I've don8 a of volunteer wort theyve h8lped sort everything out my CSCS card arnl they applwng for my provisional I￿￿nGe. They've helped me better than any one I'vg gverhod and I couldn't ask form(NB ￿th8rn"_ Client Feedback .1 have spoken lo my customer ILwJay who cannot speak highly ermxwh of Junctlon 42, ho i* over mL)on with the support he is getting'_ Job Coaclj Fg8dback The Junction 42 Foundation Year Ended 31sl March 2022 Trustees. Annual Report Creatlvo Education and Engag•m•nt The success of the in-cdl leamirvJ we developed during lockdown le(1 to increased demand from our local prisons for our Creativ8 Arts provision. We provided 4 areas of creative engagement.. IK-C£LL PRISON WIDE COIIRSE MONTHLY PACKS 13WÈrkJr•Firy cdlartPW•i51w. Idi￿t￿ w to:TrLcarrKr5pErcouF£¢. InpEfsOD 5UPWt.¢offlpetitlons&nd voupptojeos A￿tati￿ar￿pack0tt￿reot￿thpplS Thesepxks impi0vÈ￿d1[Q￿5k￿5andw* eattlwJmeawJcommunttyi* AOD£DVAW£ Q4+ . DISTRAcfzoN PACKS DISPLAYS. GALLERZES KOESTLER Alandard. and iide have fijifilled our other eIhir￿1 re5ponsibiiitses Ir) 3ccoidance with these requirements. We believe that th¢ audit evfjdenc* we have r)btained is suffiaènt and approprfat8 to provide a basis for our opinion. Condu$lon5 relatlng to golng concem In aud￿ng the financial statemènts, we have concludod that the tsustees, u$& of the going concèrn basis of accounting In the preparation of the finandal stst&ments is approprfatè. Bas8d on the work we hav$ performed. we havè not identified any wnalerial uncertainties ￿ta￿ng lo events or conditions that, individually or collectively, may cast svJnlficanl dwbl on Ihe company's abilrty to continu8 as a going concem frjr a period of at least 12 months from when the flnancial stat8ments are authorfse(I f(* Issue. Our responslbililies and the responsibilN*s of the trust•*s' with resp8ct to going concem arg descflbed in the r8l•vant Sections of this rewt Other Informatlon The other Infom181ion comprises the infcfmalion includ8d in the annual report. other than the financial statements and our auditorfs report Ihereon. The trustees are responsible for the other infoirnalion. Our opinion on the financial statements does not cover the other informatlon and. except to the extent otherwtse explicilty ststed In our report. we do not exprnss any form of assuronce conduslon thereon. In connection wth our audit of th• financial slatemenls, our r¢$ponsibS1ity is to r88d the other infomiatlon and, in dolng so. Consider whether Ihe other inf0mia￿On ts mat8rially inconsistènt with the flnan¢lal ststgments cf our knowledge obtained In the or o(herwSse 8ppe8r8 to be materfalty Misstat￿1. If w8 identify Such material inconsistenetes or apparent material misstatements. we aro rgquired to detemlne whether there Ss ¥ malerial rnissiatem8nl in the finanaal stBtemenls or a mateiial mi¥ststement of th• other informalon. If, b8sed on tha work we have perfomigd. we condude that th&re is a rnaterfal mlsststement of this 01hor infomation, we are required to report th2t fact. We have nothing to repc*t in this regard. 10 The Junction 42 Foundatlon Year Ended 31st March 2022 Independent Audltor's Report to tho Members of The Junction 42 Foundation Opinions on oth•r matters P￿￿rIts$d by tho Companl•s Act 2006 In our opinion, based on the wort( undertaken In the course ofthe audit.. the inf¢2miation given in the trust88s' report for tho financial year for whlch the financlal statements ara prepared is conslstenl wlth the financial stalements,- and the trustees, re[￿ h88 been prepared in aco)rd8nce wth applicable legal r8quir8ments. Matt•rs on whlch we ar• rnquired to report by exceptlon In the light of the kr￿ledge and understandlng of the chartty and Its environment oblained In the eouise of 1he audll. w& have not idenllfied matsrial misstatements in Ihe trusta8s' report. We have nothing 1¢ report in respact of the f(11￿ng matters in relauon lo whlch the Cornpanies Ad 2006 requires us to roport lo you if. in our opin1r￿.. adequate accounting records have not been kept. or r¢turns ad8quate for our audlt have not been received from branches not visited by us.. or the financiql ststements are not in agreement with tho accounting racords and retums.. or certain disclosures of trustees, remuneration speclfied by law are not made., or w8 have not rec8lvod all the informafjon and explanations w8 requlre for our audrt., or the trustees werè not entrtled to propare the financiBI stslerrents in accordance with the sm811 C(￿PanieS r9glme and lake advantage of the small companles. èxemptions in prepartng th& dlre¢tors' report and from Ihg requirement lo prepare a strategie report. R•8pontsibllltles of twst••$ As explained rnore fully in thg Iwstees, responsibilities statement, the trustee5 (who are 81s0 the directors for the purtM)ses of company law} are Tesponsible for the preparation of the financial statements and for being 8alisfied thal th&ygiv$ a tru8 and fairview. and forsuch intemal ￿fitrol as thetrustèes delemine is necgssary lo enable the preparation of financial statgrnenls that are fr¢e from material misstatement, whett)er 10 fraud orerror. In preparirKJ thè financial statemants. the trustee5 are responsble for assesslng the charity's ability to continue as a golng concgm, disclosing, as appllcable. matters relatgd lo going concem and u8ing the golng cOn￿M basis of acctyjnting unless the trustaas oither Intend lo IiquKlats the charlty or lo c8ase operations, or have no reallstic alteinative bul to do so. AudFioV$ respon$lbllllles forthe audlt of the flnanclal statements Our objeclNes are lo obtsin reBson8ble assurart• about wheth•r th8 financial statements as 8 whole are fr6e from materfal misstatèmant. whether due to fraud or error. and to issue an auditols rèport that includas our opinion. Reasonable assurance is a hBh levd of assurance, but is not 3 9varanlee that an audll conducted in accorilance with ISAS {UKI will always detect a malwial misstslernenl when 11 gxists. Misstatem8nts can arise from fraud or error and are cOn￿dered material if, indlvldually or in the a99regate, they could reason8bly be expected to influenc8 th8 aconornic decision$ of users taken on the basis of these finanoal stslements. Irregularities, Sn¢ludSng fraud, are instances of nonwcompliance wlth laws and regulations. We design procedures In line wrth our responslblllties, outlined abDve, lo detect material mrsstatsments In rnspert of Irregulaiitres. including fraud. Tha èxtent to whlch our procèdures ere capable of detecting Irregu18ri1ies. Including fraud. is deiailed below. The Junction 42 Foundation Year Ended 31st March 2022 Independent Auditor's Report to tho Members of The Junction 42 Foundation Audltor's re8pon$lbllltie$ for the audlt of thè financial stat•m•nts {eonllnu•rf) We obtoined an und8YstandiNJ of the legal and wulatory framework applicable lo both the company itself and the sector in which It operatss. We identified areas of18ws and ￿gulationS that could reasonably expected to havg a material effect on thg flnanclal stalernents from our sector experience and through discussion with the Key Managamant Pgrsonnel. The most significant identified that dlrectly affect the financial stal8menls include financial reporting legislation lin¢luding related cc*mpaniè$' legislalionl, th8 Charities Act 2011 and UK tsxation legislati￿. The company 18 subject to other laws and regulations where the con3equences of non-wmpliance could have a matérial effect on amounts or disclosures in the finonclal statements. for Instance through the imF)osilion of flnes or libgation. We idenltfied the following araas as those most likely to have such an effeci.. Htralth and Safety, Employmonl Law an¢1 Data Pffjlection wulatlons. recognising the nature of the company's 8Ctpvi*es. We considered tha extènt of cornpliarice wlth thoso laws and Tegulations 0$ Part of our procedura$ on the related finaneial statements. Our audit procedures included.. making enquirtes of Trustees and Key Management Pétsonnel as to where Ihèy Consider Ihere to bts suscepbbility to fraud and whether they have any knowledge or suspicion of fraud,. obtaining an undprstsnding of the internal controfs estsblished lo mitigate risk8 related to fraud non.compliane8 wtth laws and regulations; asstsssing the design effectiv&nass of the controls In place to pment and detect fraud., assessing the risk of management override, including identifying and tssting journal 8ntries- challenging the 8ssumpts.ons and jud9ementS rnode by management In its signlflcant accwntl esJmates. Our audlt did not identify any key audlt matters rèlating lo the detedion of irregulartties including fraud. However, despilg the audit belng plannèd and cxjnducted in Bccor¢an¢e wlh ISAS IUKI there rèmains an unavoidable risk that rnaterial misstaternen15 in the financial stat8rnonls rnay not to dgt8cl8d owin9 to Inh¢rgnl limitations of the audlt and that by th￿r very nature, any Such instances of fraud or irregularity like invofv8 colluyon, forgery, int8ntion81 misrepresentauons, or the override of inlemal controls. A further description of our rg$ponsibditie5 is availablè on the Financial Reportin9 Coundl's website al.. hltysJAYwhY.frc.org.ukl8uditor8reSponsibilrt￿s. This d•scription forms part of our audltorf6 report. Us• of our r•port Thls report is made solely to the charfty's members, as a body. in acwr(Jance with Chapter 3 of Part 18 of the Comp8nies Act 2006. Our aud(t work has been und¢rtaken so that we mlght stste lo the charitys members those matters we are Tequired to state to them in an auditor's report and for no other purpos6. To the fvjllest extent pemitted by law. we do not 0￿p1 orassume responsibility to anyone otherthan the charity and the charity s members 85 8 body, for our audit work, for this report. or for the opinions we have formed. L_ John Oswall BA FCA Senlor Statutory Auditor F¢r and on behalf of Stephenson Coat•s Audlt Llmlted Chartered a¢￿Untants West 2, Asama Ct)urt N8wca$Uo Busines5 Park Newe8sY8 upon Tyne NE4 7YD Date.. 19th December 2022 12 The Junction 42 Foundation Year Ended 31st March 2022 Statement of Financlal Actlvltles 2022 Unrestricted Restricted Funds Funds 2021 Tolol funds Total Fund8 Nots Income Donations and legacies Chartiable aclivrknes Other trading activities Othor incom& 295,805 529,283 136,509 432.314 326,740 529,283 514.553 150 1,316 150 1,316 41,803 Total Income 826.404 136,659 963.063 883.096 Expenditure Raising funds haritable activities 783 733,132 783 3.117 912,004 729,269 178,872 Total Expendlture 733.915 178,872 912,787 732,386 Net In¢om• l {expgndlturo) 92,489 142,213) 50.276 150,710 N•t in¢ome and net movomorrt in funds Total funds brought forward Transfers 13 13 490,718 64,965 555.683 404,973 Total funds carrièd fornard 13 583,207 22,752 605.959 S55,683 All income and expenditure derive from continuing actNities. The statement is a combined Slalemenl of Financial Actwities and Income and Expenditure Account for the purposes of meeting both companieg act and charity SORP reporting requirement$. The notes on pages 16 to 30 form part of the fin8ncl81 slatemenls. 13 The Junction 42 Foundatlon Year Ended 31st March 2022 Statement of Financial Posltlon 2022 2021 Note Flxed assets Tangible Fixed A$¥ets Investments 13,300 20,811 10 13,301 20,812 Current assets Debtors Cash at bank and in hand 11 59,098 561.122 169.325 399,821 620,220 569.146 Crgdltors: amounts falling due wtthln one year Net CUTrent assots 12 27,562 34,275 592,658 534,871 Total assets less current Ilabilitles 605,959 555,683 Net assets 14 605,959 555.683 Funds of the charity ReStr￿ted funds 13 22,752 64,965 Unrestricted fvnds Unrestricted Gener81 DesvJnated Funds 13 446,024 137,183 446.780 43,938 583,207 490.718 Total charlty funds 605,959 556,683 These financial slalgmenls for The Junction 42 Foundation (Company number.. 81393671 have been prepared in accordance wth the provisions applicable to compan188 subject lo the small entities regime of the Companies Act 2006. The notes on pag8$ 16 to 30 form part of the financial statements. Dlrectors Responsibilities Thase financ￿1 slalemenls were approved by the board of trustees and 8Uthorised for issue . Namè of Trustee: Signed on behalf of the Trustees: Dats of approval". 14 The Junction 42 Foundation Year Ended 31st March 2022 Statement of Cash Flows 2022 2021 Cash flows from operating activitlos: Net cash provided by (used inl ¢Jperating actiwt￿s 161.290 109,646 181,290 109,646 Cash flow5 from inv&sting actlvities: Dwidends and interest Purchasè of tangible frxed assets Nel cash provided by (used in) investing &tivities 118,222} 11 (18,2211 Change in cash and cash equivalents in the reporting p9ri0d Cash and Cash equivalents al the beginning of the Teporting period cash and cash equiyalonts at Ihe ond of the reporting perlod 161,301 399,821 91,425 308,396 561,122 399,821 Reconeiliation of net movement in funds to net cash flow from operating activltlos 2022 2021 Net movement in funds for the reporting peri¢xl {as per the statem8nl ol financial activities) 50,276 150,710 Adjustments for.. Depreciation ¢harges Dividend$ and interest from investments Ilncieasel I decrease in debtors Incraase I (decrease} in credrtors Net cash provided by {used in} operating activibes 7.511 7,763 {1) {64,2951 15,469 170,227 16,713} 161.290 109,646 Analysis of cash and Cash gquivalents 2022 2021 Cash al bank 561,122 399,821 Totsl Gash and cash equivalents 561,122 399.821 15 The Junction 42 Foundation Y•ar Ended 31st March 2022 Notes to the Financial Statements 1 Accountlng Pollces 1.1 Basis of Preparatlon The financial Statements of the charitable ¢ompany have been prepargd under the historical Cost convention and in ¥¢ordan¢e with Ihg Stalemant of Recommended Practice applicabl8 lo charities preparing their accounts in a¢¢ordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021, the Companps Act 2006 and Unibj Kingdom General￿ Accepted Accounting Practice apPI￿ab￿ lo sMal￿r ent￿e$. The charitable company has taken the option under section 398 of the Companies Act 2006 and the Charities Act 2011 (Group Accounts) Regulations 2015 not to prepare consolidated financial statements. The financial accounts are prepared in Sterling {£} which Y6 the functional currency of the charitsble company. The Junction 42 Foundation meels the definition of a public benefit enlty under FRS 102. 1.2 Assessment of Going Concem Nolwilhslanding the post balance sheet event as diqclosed in Note 16 of the financ￿1 statements. the Directors of the charrtable ¢ompany are satisfied that there arè no material uncertainties about the charty's ability to continue as a going concem al least for a period of 12 months frc*n the date of approval of these financial slalemenls. Accordingly, the financial statements are prepa￿ on 8 goin9 concern basis. 1.3 Fund A¢counllng Unrestricted in¢ome funds ¢ompri¥e those funds whlch the trustees 8re fm lo use for any purpose in furtherance of the charitable objects. Unrestricted lund8 include desrgnaled funds where the trustees, al their discretion. have Set a8ide resour￿$ for a specific purpose. Restricted funds are funds which are lo be used in accordance wrth specific raslrictions impx)sed by the donor or the temi of specffic appeal. Further explanation of the nature 8nd purposa of each fund 1$ is i￿luded in Note 13 of the financial Slalements. 16 The Junction 42 Foundation Year Ended 31st March 2022 Notes to the Financlal Statements 1.4 In¢omlng Rosources All incoming resources are recognised once the charty has enlillement to the resources, it is probable that the resources WIN be received, and the mor*tary value of incoming rewurces can be measured with sufficient reliability. . All voluntary income B recognised as donations and ar& included in full, with associated Grft Aid receNable in the Statement of Financial Aclmties. Grants Whe￿ entitlement is not conditional on the fjelivery of specific performance by the charity are re¢ognised when the charity becomes Unconditional￿ entitled lo the grant. Inc(yne from fees for education, Iralning and mentoring are aecounled for when invol￿$ are drawn up and the SerV￿e has been provided las the point of entrtlemenll. . tk)nal8d services and facilities are included at the value to the charity where this can be quanlrfied. . Girts in Kind are xcounled for at a reasonable estimate of their value lo the charty or the amount actually realised. . Time is expended on the charivs activities artd governance which is donated free of charge. It is impractical lo quanlrfy the value of the lime given, and accordingly rt is neither orded as olonated income nor as an expense in the fin3n¢ial statements. . Inve8tment Income is included in the 8ccounl$ when receThi8ble. 1.5 R6sourco8 axpend•d char[tab￿ activrties- The costs of charitable activities represent the cost of Ul￿rtakIng the Charrt￿9 objectwes and include direct C05t5 incurred in delivering Ih05e services together with support costs. All expenditure is accounted for on an a¢¢ruo1s basis. Liabilities are recognised as expenditure as Soon a5 theie is a legal or constructive oblvJation committin9 the eharity to that expenditure, rt is probable that a transfer of econom￿ benefits will be required in settlement and the amount of the obligation can be measured reliabty. Value added tax is not recoverable by the charitable company and as such il is Included in the relevant costs in the Statement of Financkryl Aclmlies. Cosls of raising luThJs include eyndtture on promotion and advertising plus any fundraising trading Costs. 1.6 Governance Costs Include costs of the prepsration 8nd 8xamination of slalutory accounts, the costs of the trustees, meetings and cost of any legal advice to truslg9s cn govemance or constilLrtional matters. 1.7 Llabllltles Rewnlllon Liabilits"es are recognised as soon as there is a kgal or ¢onstruclive obligation commrtling the charity to pay out resources. 17 The Junction 42 Foundation Year Ended 31st March 2022 Notes to the Flnancial Ststements 1.8 Tanglblo r￿ed assots Al assets costing more than £1,LXIO are ¢apitalised and al historic cost. Fixed assals are slated al cost legs accumulated depreck*ion. Depreciation is charged on fixed assets which is written off on a Stra￿hl-l1n8 ba$is over time estimal8d useful Iwe of the asset. Fixtures, fittings and furnrture Motor vehicles 200h Straight line 25•A Reducing b8L8nce Fixtures, fittings and vehiC￿S are reviewed for impaimienl rf events or Changes in clrcumslances indicate th81 the carying amount of such a$sel$ may not b8 recoverable. If there is an indication of possible impaimient, the recoverabl8 amount of any affected asset is estimated and compared against its carrwng amount. Wh8re the estimated recoverable amount is Icwer, an impaim)enl loss is recognised immedialety in the Statement of Financk91 Aetivities. 1.9 Pensions The ¢hartty OP8ral8s a defined contribution pension scheme. Contributions are eharged to the Statement of Financial Aclwities as they btscc*ne payabla in accordance with the rules of the scheme. 1.10 Oporaling Leases Rental charges payable under operating leases are charged on a straight line basis over the terms of the lease. 1.11 Taxatlon The charty is exempt from tsxation in rg$pect of income or capital gains received to the extent that such income or gains are applied exclusively for chantable purposes. The charty is not exernpl from ValLte Added Tax. 1.12 Volunteèr asslstance Time is èxpended on the ch8rrtY$ aetivilie$ and govemance which is donated frge of charge. It is impractical lo quantrfy the value of the lime given, and accordingty it is neither recorded as donated in¢ome nor a5 an expense in the financial statements. 18 The Junction 42 Foundation Year End￿ 31st March 2022 Notes to the Flnanclal Statem8nts 2 Analy8b of Incomo Unreslricled Re51riGled Totsl Funds Funds Fund8 2022 Donatlons and lega¢ios Donations and granls Donations in respect of 80larEs Grft aid tax reclaims 285.895 76,827 59,682 382,722 59,682 9,910 432,314 9,910 295,805 136,509 Charltable actlvities Prison education services Employability education Faith in the community Creative educali)n and en9agement Incell leaming production hub 94,072 361,720 94,072 361,720 73.491 73A91 529,283 629,283 Other tradlng actlvltles Fund raising events 150 1S0 150 150 Other Income CoronaNrus job retention seheme Reimbursed expenses Bank Interest 570 735 11 570 736 11 1,316 1.316 Total Income 826.404 136,659 963.063 During the year a non-recurring. material unrestricted donation of £140.Oc￿l was r8C8iV8d lo further the work of th8 char(ty. During the year £570 {2021.- £41.7921 of government grant$ was r￿e1Ved from Ihg Covld-19 job retention scheme. 19 The Junction 42 Foundation Yoar Ended 31st March 2022 Notes to tho Financial Statsments 2 Analysis of Income fconrinuedj Unrestricted Restricted Total Funds Funds Funds 2021 Donations and legaclos Donations and grants Don*ions in fespeel of salaries Grft Aid tax wlaims 120,937 113,633 73.443 234.570 73,443 18,727 326,740 18,727 139,664 187,076 Charltable actlvltios Prison education services Employabir￿ education Faith in the community Creative education a￿1 engagement Prison Faith services 58.300 284.320 1,080 47,587 123.266 58.300 284.320 1.080 47,567 123.286 514,552 614,553 Othor Iradlng activitSes Fund faising events Oth•r incomo Coronarvir¥Js job retention scheme Reimbursed expenses 41,792 11 41.792 11 41,803 41,803 Total Income 696,019 187,076 883,096 20 The Junction 42 Foundation Year Ended 31st March 2022 Notss to the Financial Statements 3 Cost of Fundraising Unrestricted Restricted Total Funds Fund$ Funds 2022 Expenditure on raising funds 783 783 783 783 Unrestricted Restriled Total Funds Funds Funds 2021 Expenditure on raising funds 3,117 3.117 3,117 3.117 4 Expenditure on charitable activities unrestrict￿ Restricted Total Funds Fund$ Funds 2022 Prison education so￿1¢8$ Empltsyabilty education Faith in the communty CrealNe education and engagement Inc911 leaming production hub 112,771 114,801 10,381 295 219,546 13.100 112,533 10.000 3.349 11,353 126,871 227,334 20.381 3.644 230.898 457,794 150,334 608,128 Unrestricted Rastrieted Total Funds Funds Funds 2021 Prison education Serv￿$ Employability education Faith in the community Creative education and engagement IrKell learning production hub 29,900 38,491 2.C67 23.014 186,106 3.900 117,OC6 7.51)0 25.994 33,800 155,497 9,567 49,008 186,106 279,578 154,4Crf] 433.978 21 The Junction 42 Foundation Year Ended 31st March 2022 Not•s to the Financial Statements S Expendlture on charitable actlvltles support costs Unrestricted Re51ricl8d Total Funds Funds Fund5 2022 Donations and conlractual gwing Admin management staff costs Office rent and lates Insuranee Staff travel Gosls and subststence Office costs- t9￿phone, printing, computers Premises expen3es and canteen Motor and travel Gosls Depreciation Merchant servicos and bank charges Stsff training Consukancy- media and publicty Subscriptions and volunteer costs Accountancy charges Audit fees Cleaning and Comd PPE Other costs - legg1 and consull8n¢y 8,300 176,872 16,925 7,846 4,727 23,010 102 1,572 7,511 8.300 193,839 16,925 7.846 4.727 23.325 102 1,572 7,511 16,967 315 7,819 4.167 315 9.100 1.800 2,258 3,014 7.819 4167 315 9.100 1.800 2.258 14,270 303.87 11.256 275.338 28,538 Unreslficted Funds Restr￿ted Total Funds Funds 2021 Donation¥ and contractual giving Admin management Staff costs rent and rates Insuranco Staff travel eosts and subsistence Office costs- telephone, printing, computers Premises expensas and canteen Motor ènd travel cos18 Deprecith'on Merchant setvices 8nd bank charges Staff training Consultancy- media and publicty Subscriptions and volunteer costs Accountancy charges Audit fees Cleaniry and Covid PPE Other costs- legal and ¢on$ultancy 5.438 146,131 16,298 5.204 2,066 21.855 1,738 5,155 7,763 836 3,662 318 734 5,829 1,710 4,509 2,270 5,438 209,906 16.298 5.204 2.066 21,855 1,738 5,156 7.763 836 3.682 318 734 5,829 1.710 4,509 2,270 295.291 63,775 231,516 63,775 22 The Junction 42 Foundation Year Ended 31st March 2022 Notes to the Financial Ststsments 6 Statutory audltor f¢e$ Fees payabla to the slalutory audiloi for.. 2022 2021 Statutory audit fee 1,800 1,710 7 Staff costs The total staff costs and employee benefts for the rewting period are analyEed as follows.. 2022 2021 Wages and salaries Sock£l security costs Employer contributions lo pension plans 526,007 31,247 16,029 404,119 24,630 10,372 573,284 439.121 The aver￿• h8ad count of employees during the year was a$ follows.. 2022 2021 Average Head Count Direct charitable actwities Management and administration 23 10 18 33 25 Number of employees whom receNed employee bengfils of more than £60,000 during the year was as follows.. 2022 2021 More Ihan £60.000 Key Management Personnel The trustees, CEO, head of operations and head of projects are considered to be key management personnel for the purposes of FRS102. The remuneration of the key management personnel for the year including employers national insurance and employers pension Contribut￿n$ wa5 £111,98412021'. £102.5541. The increase in remuneration is due in part lo an increase in working houls for the head of operations. 23 The Junction 42 Foundation Year Ended 31st March 2022 Nots$ to th• Flnan¢ial Statemonts 8 Tnlstee remuneration. expenses and donalions The trustees received no remuner*ion in the year {2021.. £Nil}. During the year the total aggregated donations made to the charity by the Iruslees £1.860. 9 Tanglblo Fixed Assets F￿tureS and Fiitings Motor vehicles Tolal Cost as at 1st April 2021 Additions 32,842 16.994 49.836 Cost as at 3181 March 2022 32.842 16,994 49.836 Depr￿latIon as al 1st April 2021 Depreciation Charge Depreciation as 813151 March 2022 15,801 6,568 13,224 29,025 7,511 22,369 14.167 36,536 Net Book Value as at 31st March 2022 10,473 17,041 2.827 13,300 20,811 Nel Book Value as al 3181 March 2021 3,770 All fixed assets are used for purposes of the charitable company. 10 Investments Unlisted investments Cost 31 March 2022 and 31 March 2021 Unlisted investments represents on inv8Stmenl of 100% of the issued Share ¢aprtal of Junction 42 Sttial Enlerpri$es Limited, an unlisted dormant company registered in EngLgnd. 24 The Junction 42 Foundation Year Ended 31st March 2022 Notes to the Financial Statements 11 Debtors 2022 2021 Trade debtors Prepayments 57,324 1,774 165,316 4,009 59.098 169,325 12 Credltors.. amounts falling due within ono y8ar 2022 2021 Trade creditors Amoun15 due to subsidiary undortaking Accrual$ and deferred inwme Other taxes and social security 1,601 15,121 12 440 22,000 10.673 27.562 34.275 25 The Junction 42 Foundation Year Ended 31st March 2022 Notss to the Financial Statements 13 Analysis of Charitsble Funds 1 Apr 2021 Income ExperKlilure Transfers 31 Mar 2022 Unrnstrictod Funds Unrestrfcted General funds 446.780 826,404 (728.9151 1728.915) 198.2451 1982451 446,024 446,780 826.404 446,024 Dgsignatod Buiiding fund Giwng fund Operations fund Seolland fLtnd 43,938 43,938 14,246 29,000 50.000 {5,000> 19.245 29,000 50,000 43.938 15.OOOJ 98.245 137.183 Total Unrestrlcted 490,718 826.404 1733,9151 583.207 Restrlctgd Funds Acts 435 Commissioner- VRU moniets Fifyfour Two Foundat￿n Justsow Methodist Church Nepacs Salary Support fund Seedfield Trust Sodexo grant Sport England The Triangle Trust Volunteering Matters Totsl Restrl¢led 12,019 112,0191 {24,703} 13,7501 19,1671 {12,500} 427 165.1241 13,000) 114,ClOO} 16,2031 113,833} 115,0001 136,659 {178,8721 24,703 15,000 10.000 15,000 1,125 59,682 3,000 7,000 11,250 833 7,500 1.552 5,000 5.442 7,000 7,820 1.617 13,833 15,000 64,965 22,752 Total Funds 555.683 963,063 {912.7871 606.959 Funfl Tran8f•rs During the year Ihree new designated funds where established by tho the trustees designating £98.245 from the general funds. 26 The Junction 42 Foundation Year Ended 31st March 2022 NotOS to tha Financial Ststements 1 Apr 2020 Income Expendrture Transf8r$ 31 Mar 2021 Unrostrfcted Funds Unrestrlcted General funds 264,971 696,021 696.021 1514,2121 1$14,2121 264,971 446.780 D•slgnated Buikling fund Giwng fund Operations fund Scotland fund 43,938 43,938 43,938 43,938 Total Unrgstrlcted 308.909 696.021 1514,212) 490,718 R08trlcted Funds Acts 435 Connect Network Commtssioner- VRU monies Faith in Your Future Fiftyfour Two Foundation JLtslSow Melhodisl Church Nepacs Salary Support fund Saedfiold Trust Seedbed Trust ETS Grant Sodexo grant Sport England The Triangle Trust Voluftteering Matters 7,500 45,000 {7,$001 (74,110) 1646) 16,0001 53,813 24,703 6,000 5.000 15,WO 115.000) 5.000 16,962 73,443 184,9631 5,442 7,956 7,000 {7,9561 (7.0001 7,000 7.820 7.000 7.820 30.000 (15,CiOOI 187.076 {218,176) 15,000 Total RoStrict•d 96,064 64.965 Ti>tal Funds 404.973 883.097 1732,387) 555,683 27 The Junction 42 Foundation Year Ended 31st March 2022 Notes to the Flnan¢ial Statements Fund Dgscrlptlons Designated Funds Building fund Giving fund Money designated for the future purchase of a building. Money deB￿nat￿l lo give away as per our poI￿Y of glvwig a￿aY some our contractual income and unexpeeted grft$. The trusteès decKled to desKJnale some of th8 monay received from Vertu Motors lo invest in our oper*ions fun￿t￿n in the next year. The Iruslees decided lo desKJnate some reserves money towards developiro our work in Scolland. Operations fund Scotland fund Restrl¢ted Funds Acts435 Acts 435 provhle miucwranls for us to purchase items our elients are in financial hardship. The Connect Network was funded by grants frem Just Sow and was funded in the prior year by The Mercerfs Company and Henry Smrth. The Northumbria Police and Crime Commissioner and Vioben¢e Reduction Unit (VRUI gave 8 grant to fund Employabilrty work with VRU clYant8. Connect Network Commi$sioner- VRU moniès Fiftyfour Two FOundat￿n The Fifyfour Two Foundation grant was receNed to support of Stories of Hope National Prison Inilialive. Methodlsl Church The Meth)dist Church grant funded our 8mpl¢)yabilily support in Newcastle upon Tyne. Nepacs promde micr04Jranl$ for us to purchase riems for our cllenls who are in financial hardship. Tho Salary Support Fund 1$ for funding reCe￿d from various sources towards the salary costs of our staff. The Seedfield Trust giant funded the the hall hire costs for our production Hub. The Sodexo grant was recèived for the faith work in HMP NorthLtmberland. The Sport England grant is for sports actimles for clients. The Triangle Trust provided funds lor the development of our CRM system. Thè Volunteering matters grant is to pr¢)vide a telephone befriending service lo people who are currently serving their sentencès in the community either on 8 cornmunity sentence order or on a period on license. Nepaes Salary Support fund S88dfh8ld Trust S¢)dexo grant Sport England The Triangle Trust Volunteering Matters 28 The Junction 42 Foundation Year Ended 31st March 2022 Notes to the Financial Ststements 14 Anatysis of net a￿Ots between funds Unrestricted Restricted Total Funds Funds Fund5 2022 Fix8J assets Current assets Creditors le$8 than 1 year 13,301 597,468 127.562) 583,207 13.301 620.220 127,5621 606,959 22,752 22,752 Unrestricted Funds R¢Str￿lea Total Funds Funds 2021 Fixed 8$set5 Current assets Creditors less than 1 year 20,812 504,181 134,275) 490,718 20,812 569,146 134,2751 555,683 64,965 64,965 15 Related party transactlons During the year, the charrtable company received total donations of £12,000 {2021.. £50.4831 from The Vardy Foundation (England and Wale5 chanty no. 328415., Scotland SC0511521. The Varcty Foundation i% a related party of trustee Richard Vardy. There are no other rgla18(I party Iransactions to discbse. 16 Post balance 8h8et events Folbwng the year end the organisalim was received confirynation that contracts held with the Department for Work and Pensitin5 would not be renewed in the 2022r23 financial year. The total estimated10s5 of annual inccffi8 from the conliact is £236,000. 29 The Junction 42 Foundation Year Ended 31st March 2022 Notss to the Flnancial Statements 17 Prior year Statement of financlal activities 2021 Unrestricted Restrithd Funds Fund$ Total Funds Income Donations and leg￿￿$ Charitable aotivities Other trading actsvrties other ￿COme 139,664 514,552 187,076 326.740 514.552 41,805 41,80S Total Income 8￿,021 187,076 883,097 Expenditure Raising Funds ChaTilable activities 3,117 511095 3.117 729,270 218.175 Total Expenditur• 514,212 218,175 732.387 Net Inc(Kne l {expendilurel 181,809 131.099) 150,710 30