## **PATCHWORK PROJECT**
**A company limited by guarantee**
**REPORT AND FINANCIAL STATEMENTS For the year ended 31 May 2023**
**Charity number 1157186 Company number 08510835**
**PATCHWORK PROJECT** (A company limited by guarantee)
## **TRUSTEES ANNUAL REPORT**
For the year ended 31 May 2023
The Trustees are pleased to present their Annual Directors’ report together with financial statements of the Charity for the year ended 31 May 2023, which are also prepared to meet the requirements for a Directors’ report and Accounts for the Companies Act purposes.
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
## **1. Objectives and activities**
Below we have a summary of the project work over the previous year. For further information contact the project via 0191 273 9700, admin@patchworkproject.org.uk.
The impact of the death in August 2021 of our long-running Project Manager Michael Bell after 18years of service continues to be felt. The trustees are proud of the commitment to the project staff have shown and continue to show. It is a joy to see the work continue to give hope in dark corners, and that those who come through the project leave better off than they arrived.
Details and updates can be found on the Website: www.patchworkproject.org.uk and the project's Facebook page: www.facebook.com/PATCHWORK.PROJECT.Newcastle Each funder that we are supported by is able to take huge pleasure from the knowledge that their support has been instrumental in effecting positive change in the lives of children and young people and so the wellbeing of the community. The whole that is Patchwork Project, is indeed other than sum of its funding parts.
Patchwork is a creative project making and building neighbourhood change that will last. It will last as that change is in children and young people's lives, minds and attitudes. They will take their learning into other areas of life and neighbourhood.
We have not specifically mentioned any work funded as a distinct project, rather given themed headings for the work we do. Some grants are aimed at specific outcomes and though very important it would take up too much space to cover in a summary.
## **2. Achievements and performance**
## New senior worker
Sarah Warren an experienced youth and community worker with 27 years’ service in community work joined our team in May 2022. A year on, she has settled in well and is helping us to progress on and make plans for the future.
This despite a regional shortage of youth workers and a challenging period for recruitment.
## Investment in structures:
We invested in QuickBooks an accounting tool that should help us long into the future. (Our previous tool had become too clunky and had glitches that we were unable to fix.) We also
1
**PATCHWORK PROJECT** (A company limited by guarantee)
## **TRUSTEES ANNUAL REPORT**
For the year ended 31 May 2023
chose to invest in software to help us to ‘go online’ with consent forms, registers and monitoring. Helping to ensure children and young peoples safety on every trip, and support workers in the field in case of emergencies, whilst also taking up less paper and the dreaded annual updating! Happens at every session now instead!
## Detached work:
Patchwork staff continue to have their roots in building high quality relationships with activities on the streets, via what is called detached work. We catch up with young people we know, meet and get to know those we don't know, become familiar with issues and concerns of the community.
We pass on news about what's happening in the area and beyond, what we and other agency services have on offer. Group work planning for activities and projects happens without the need to attend a physical base at all.
Detached allows the project to be seen on the street by other community members and agencies providing old fashioned face to face accountability. This is a vital aspect of Patchwork and youth work.
## Group work sessions:
2 groups an evening, 5 days a week. We have literally doubled the groupwork available for children and young people from just a few years ago: friendship groups, smaller Keyfund groups, interest led groups e.g. DofE, open access larger groups, mixed and single gender.
Groups age and progress, change over time and friendships. This year we have been fortunate to have the opportunity to support those interested in climbing, as well as others interested in helping to lead the work of Patchwork, and our role in the community with our own Patchy Youth Panel – which helped to support the community over Xmas and in improving the local area.
## Drop-in and 1-1 work
Each day Patchwork enables people turn up, unannounced for a multitude of reasons, including crisis support. Our usual support around employment and training and linking into specialist work opportunities.
## Holiday Programmes
This summer we were able to return to doing all our outdoor camping and walking trips for which we are famous! Lots of DofE expeditions done in wind, rain and sunshine 😊 Loads of memories and photos.
Sarah and Ashleigh led on a 5day residential to Birmingham Commonwealth Games, an opportunity that came via our partnership with streetgames. Young people took part in a ‘youth camp’ with hundreds of other young people representing Patchwork and the North East alongside other groups from all over the UK. This took place over the time span of the anniversary of Michaels death, and was a great way to ensure children and young people had a great time, whilst other staff spent time more quietly in remembrance.
## Working with younger ones:
Patchwork does provide open evening sessions for children between 8 and 14 years. Our aim is to provide space and a sense of security in which children can play and express themselves freely. Crafts and cooking, sport and foraging are just some of the things we do.
2
**PATCHWORK PROJECT** (A company limited by guarantee)
## **TRUSTEES ANNUAL REPORT**
For the year ended 31 May 2023
Many of the children that attend these sessions become regular uses for the next 10 years or so. The sessions are run in or around Patchy2 several times per week and continued as regularly as possible
We continued to make use of Patchwork2 our centre that provides a wide range of activities, sports crafts cooking and more for children between 8-12, these sessions can and do facilitate up to 40 children at a time.
## Volunteering:
We continue to encourage young people to volunteer throughout the project, particularly peer volunteers, and also foster an project value of 'being helpful' to others. We are proud that many volunteers follow a path that sees them gain sessional hours, and move into meaningful work.
## Training and progression:
This year 2 lads; Kieron Copley and Elliot Baird who have volunteered through Patchwork gained 1 year apprenticeships via a partnership with Northbourne Youth Initiative (NBYI). This saw them both achieve qualifications in youth work; level 2 and 3 respectively. Kieron continues to work sessionally at Patchwork as he strives to discover what path he wishes to follow, Elliot was offered a full-time role beyond his apprenticeship with NBYI.
Ashleigh Aylward and Karl Gilbert entered their 2nd year of their BAhons in youth and Community work at Sunderland. Whilst sessional worker Louise Bransby entered her 3rd year BAHons in Health and Social Care.
Two young people; Gold Duke of Edinburgh Achievers and their loved ones were finally able to attend an award celebration event at Buckingham Palace gardens (following Covid19 restrictions being lifted). Well done to Adam Houchin and Lauren Weaver.
## Partnership work
Aside from Patchworks participation in youth focused city-wide forums, a Neighbourhood Based Youth Projects group, and COBs community organisations Benwell and Scotswood. We continue to work with partners locally; North Benwell project; sharing good practice and local concerns, Healthworks for training on Food hygiene and allergies. Search around support for the over 50s, Riverside project and Action for children for support for families etc. Local providers for 1st aid training, sexual health work with young people and a myriad of other initiatives that may like to offer their services to the young people we work with.
## Events:
## Michaels Birthday Bash
A sub-group of trustees and staff led a group including children and young people to organise a memorial birthday Bash to celebrate what would have been Michael 60th Birthday.
Much of the community young and old, with members past and present came to show their respects; laugh and reminisce, wear silly hats, drink tea, mess amount, and watch a slide show of Michaels life at Patchy .Which included so many of the people in the room. It was a great atmosphere and it was lovely to see all members of the different communities within Benwell attend. Especially older members, or those with babies and young children who could not get to the funeral to come and celebrate as well as pay their respects.
3
**PATCHWORK PROJECT** (A company limited by guarantee)
## **TRUSTEES ANNUAL REPORT**
For the year ended 31 May 2023
Don McDonald a fellow community worker and performance poet asked permission to honor Michael. Taking a look at the memorial books (we had all written in, in the days after Michaels death) for inspiration. He wrote and performed a poem, that captured much of what we all felt. With laughs and tears aplenty. A deeply moving day, but lots of fun, and plenty of food. We all thought that Michael would have loved it. Thanks to Michaels family and others who joined us on the day.
## Community swimming trip
With so many children and asking to go swimming we hosted our first Patchy community swim. We Booked Elwick pool which with a slope and dive area caters for all. From parents and babies to teenagers all coming together to make it a huge success, and introducing more families to the assets on our doorstep and the joy of low-cost fun in a local community owned swimming pool.
## Christmas in 2022
Included a visit to the panto for 20 children and young people to see Cinderella, most who have never been to a theatre before. We had our usual epic round of ice-skating for all groups. And with money from LGA we were also able to gift ‘Fampers’ Family hampers to 100 families with a stock of cupboard essentials to see them well into the new year. Our future challenges
## Rising costs:
Keeping abreast of increasing costs i.e. utilities, fuel, staffing, activity costs including food. Including new staff and trustees and our new project youth panel in reviewing the work and focus of the organisation and any improvements we might need.
Retirement of key staff - ensuring knowledge is kept within the organisation.
## **3. Public benefit**
The Board of Trustees has referred to the Charity Commission's guidance on public benefit when reviewing the charity's objectives and planning its future activities. This annual report will aim to demonstrate the link between our charitable activity and how this benefits our service users.
## **4. Financial review**
Patchwork Project are funded by a variety of income. The total income for the year was £276,036. This income is allocated across respective funds on the Statement of Financial Activities in accordance with the Statement of Recommended Practice.
The Statement of Financial Activities for the year ended 31 May 2023, shows a net surplus across all funds of £19,317 (2022: £94,554).
The Balance Sheet at 31 May 2023 shows total funds carried forward of £339,932 of which £189,055 are restricted funds, the trustees have designated funds totalling £60,000 as detailed in the reserves policy, the unrestricted reserves are £90,877.
4
**PATCHWORK PROJECT** (A company limited by guarantee)
## **TRUSTEES ANNUAL REPORT**
For the year ended 31 May 2023
## Reserves policy
The Board of Trustees has examined the charities requirements for reserves in light of the major risks to the organisation. The established policy is for designated unrestricted funds held by the charity to be set at 5 months of the expenditure plus estimated redundancy and close down costs; the designated fund for the year is £60,000. The reserves are needed to maintain the current activities of the charity in the event of a significant drop in funding. The reserves are also needed to cover the costs of potential redundancies.
## **5. Plans for future periods**
## Maintaining the focus:
Patchwork was successful with a ‘Power to change’ grant that sees support invested into the Project Manager (Andi Kewley) to help oversee change and invest in sound longterm support that will help the organization to continue to prosper. There will be more to report in the next years report.
## Future Funding;
Is as ever the biggest of challenges, and we continue to maintain links with existing funders as well as build relationships with new funders. I would like to take this opportunity to thank funders for their support over the many years and hopefully into the future.
5
**PATCHWORK PROJECT** (A company limited by guarantee)
## **TRUSTEES ANNUAL REPORT**
For the year ended 31 May 2023
## **6. Reference and administrative details of the charity, its trustees and advisors**
Charity Name Patchwork Project Registered 1157186 Charity Number Registered 08510835 Company Number Trustees Mary Shearer John Pattison Chair Carole Pattison Carol Hunter Dr Matthew Paul Marshall-Dent Donna Partington Danielle Conroy Chelsea Dixon Appointed 20 Sept 2022
Registered Office 83 Adelaide Terrace Newcastle upon Tyne, NE4 8BB Independent MW Accounting, Bookkeeping Examiner and Training Woodgate House Wood Street Gateshead NE11 9NP Bankers Barclays Bank Plc Northumberland Street Newcastle NE1
6
**PATCHWORK PROJECT** (A company limited by guarantee)
## **TRUSTEES ANNUAL REPORT**
For the year ended 31 May 2023
## **7. Structure, governance and management**
## Governing documents
Patchwork Project is a charitable organisation, governed by its constitution, adopted on 30[th] April 2013.
## Appointment of Trustees
Trustees are elected by members of the organisation at the Annual General Meeting (AGM) and are eligible to stand for re-election each year. There is a minimum of three and maximum of 12 trustees at any given time. The trustees have the power to co-opt up to three other members and agree to meet at least four times a year.
Newly appointed trustees are invited to an induction day which includes meeting with the other trustees and the Coordinator to get an overview of the work of the charity, including its constitution and its finances. Part of this day also includes a brief induction with other key staff members. Trustees are given a copy of the constitution and the previous year's annual report and accounts. Should trustee training be required, this is arranged and once a year a development day is held for all trustees and staff.
## Organisation
The trustees administer the charity and the Project Manager is responsible for managing the work of the charity on a day-to-day basis.
The trustees are aware that the major risk to the organisation is lack of funding. Each quarter the risk is assessed when budgets are compared to actual spend and reserves are reviewed on a yearly basis to ensure that there are sufficient funds available to cover five months running costs and any possible redundancy costs.
## Risk management
The management committee has conducted its own review of the major risks to which the charity is exposed and systems have been established to mitigate those risks. Internal risks are minimised by the implementation of procedures for authorisation of all transactions and projects and for ensuring the consistent quality of the delivery of all operational aspects of the charitable company. These procedures are periodically reviewed to ensure that they still meet the needs of the charity.
7
**PATCHWORK PROJECT** (A company limited by guarantee)
## **TRUSTEES ANNUAL REPORT**
For the year ended 31 May 2023
## **8. Trustees responsibilities in relation to the financial statement**
The Trustees, who are also directors for the purposes of company law, are responsible for preparing the Trustees Annual Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (UK Generally Accepted Accounting Practice.)
Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of incoming resources and application of resources, including the income and expenditure of the charitable company for that year.
In preparing the 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 accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## 22/01/2024
Approved by the trustees on ………………….. and signed on their behalf by:
John Pattison Chair
8
## **PATCHWORK PROJECT**
(A company limited by guarantee)
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES**
For the year ended 31 May 2023
I report on the financial statements of Patchwork Project for the year ended 31 May 2023, which are set out on pages 10 to 23.
## **Respective responsibilities of trustees and examiner**
The charity's trustees (who are also directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 ("the Charities Act) and that an independent examination is needed.
The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a Member of the Association of Accounting Technicians.
Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:
- examine the accounts under section 145 of the Charities Act,
- to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act), and
- to state whether particular matters have come to my attention.
## **Basis of independent examiner's statement**
My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
## **Independent examiner's statement**
In connection with my examination, no material matters have come to my attention which gives me cause to believe that in, any material respect:
- accounting records were not kept in accordance with section 386 of the Companies Act 2006; or
- the accounts do not accord with such records; or
- the accounts do not comply with relevant accounting requirements under section 396 of the Companies Act 2006 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
- the accounts have not been prepared in accordance with the Charities SORP (FRS102).
I 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.
Michelle Wright Woodgate House 5c Wood Street Gateshead Tyne and Wear NE11 9NP Date: 25/01/2024
9
## **PATCHWORK PROJECT**
(A company limited by guarantee)
## **STATEMENT OF FINANCIAL ACTIVITIES**
(INCLUDING SUMMARY INCOME & EXPENDITURE ACCOUNT)
For the year ended 31 May 2023
|6
7
Other trading activities
8
9
10
**Expenditure on:**
11
**_Total funds carried forward_**
**Reconciliation of funds**
Total funds brought forward
Notes
**_Total income_**
Donations and legacies
**Income from:**
Other income
Charitable activities
Grants and contracts
Investments
Operation of the charity
**_Total expenditure_**
**_Net income/(expenditure)_**
Transfers between funds
**_Net income/(expenditure) and net_**
**_movement of funds_**
Charitable activities|Unrestricted
Funds
£
993
134,212
251
354
5,030
140,840
117,039
117,039
23,801
34,675
58,476
92,401
150,877|Restricted
Funds
£
-
135,196
-
-
-
135,196
139,680
139,680
( 4,484 )
( 34,675 )
( 39,159 )
228,214
189,055|**Total**
**2023**
**£**
**993**
**269,408**
**251**
**354**
**5,030**
**276,036**
**-**
**256,719**
**256,719**
**19,317**
**-**
**19,317**
**320,615**
**339,932**|Total
2022
£|
|---|---|---|---|---|
|||||3,459
358,020
-
-
1,362|
|||||362,841|
|||||268,287|
|||||268,287|
|||||94,554
-|
|||||94,554
226,061|
|||||320,615|
The Statement of Financial Activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities
The notes on pages 12 to 23 form an integral part of these accounts.
10
Charity Number 1157186 Company Number 08510835
## **PATCHWORK PROJECT**
(A company limited by guarantee)
## **BALANCE SHEET**
As at 31 May 2023
|**Fixed assets**
Tangible assets
18
**_Total fixed assets_**
**Current assets**
Debtors
19
Cash at bank and in hand
20
**_Total current assets_**
**Creditors:**amounts falling due within
one year
21
**_Net current assets_**
**_Total assets less current liabilities_**
**_Total net assets or liabilities_**
**Funds of the charity**
Unrestricted income funds
Restricted income funds
**_Total funds_**
Notes|**£**
7,208
337,427
**344,636**
**( 27,568 )**|**Total**
**2023**
**£**
22,864
**22,864**
**317,068**
**339,932**
**339,932**
150,877
189,055
**339,932**|**£**
82
358,819
**358,901**
**( 60,934 )**|**Total**
**2022**
**£**|
|---|---|---|---|---|
|||||22,648|
|||||**22,648**
**297,967**|
|||||**320,615**|
|||||**320,615**|
|||||92,401
228,214|
|||||**320,615**|
The company was entitled to an exemption from audit under s477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act with the respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to small companies subject to the small companies regime and in accordance with FRS102 SORP.
The notes on pages 12 to 23 form an integral part of these accounts.
22/01/2024 These financial statements were approved by the Board on: and are signed on its behalf by: John Pattison Chair of Board of Trustees
11
## **PATCHWORK PROJECT**
(A company limited by guarantee)
## **NOTES TO THE FINANCIAL STATEMENTS**
For the year ended 31 May 2023
## 1 **Accounting Policies**
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## 2 **Basis of accounting**
## 2.1 **Basis of preparation**
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 accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to 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) – Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
Patchwork Project meets the definition of a public benefit entity under FRS 102.
## 2.2 **Preparation of the accounts on a going concern basis**
The financial statements have been prepared on a going concern basis. In making their assessment the trustees have reviewed and considered relevant information, including their annual budget and future cash flows. In response to the COVID-19 pandemic, the trustees have revised their forecasts to take into account measures that they can take with the current resources available to mitigate the impact of the current adverse conditions. The trustees are of the view that the immediate future of the charity for the next 12 months is secure and that on this basis the charity is a going concern.
## 3 **Income**
## 3.1 **Recognition of income**
Income is recognised when the charity has entitlement to the resources, any performance conditions attached to the item(s) of income have been met, it is more likely than not that the resources will be received and the monetary value can be measured with sufficient reliability
## 3.2 **Offsetting**
There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by FRS102 SORP or FRS102.
## 3.3 **Grants and donations**
Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Income received in advance of the provision of a specified service is deferred until the criteria of income recognition are met.
12
## **PATCHWORK PROJECT**
(A company limited by guarantee)
## **NOTES TO THE FINANCIAL STATEMENTS**
For the year ended 31 May 2023
## 3.4 **Donated goods and services**
Donated goods are measured at fair value (the amount for which the asset could be exchanged) unless impractical to do so.
Donated services and facilities are included in the SoFA when received at the value of the gift to the charity provided that the value of the gift can be measured reliably. Donated services and facilities that are consumed immediately are recognised as income with the equivalent amount recognised as an expense under the appropriate heading in the SoFA.
## 3.5 **Volunteer help**
The value of volunteer help received is not included in the accounts but is described in the trustees' annual report.
## 3.6 **Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
## 3.7 **Income from membership subscriptions**
Membership subscriptions received in the nature of a gift are recognised in donations and legacies.
Membership subscriptions which gives a member the right to buy services or other benefits are recognised as income earned from the provision of goods and services as income from charitable activities.
## 3.8 **Investment gains and losses**
This includes any realised or unrealised gains or losses on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of the year.
## 3.9 **Fund accounting**
Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the
## 4 **Expenditure and liabilities**
## 4.1 **Liability recognition**
Liabilities are recognised when it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty.
13
## **PATCHWORK PROJECT**
(A company limited by guarantee)
## **NOTES TO THE FINANCIAL STATEMENTS**
For the year ended 31 May 2023
## 4.2 **Charitable activities**
Expenditure on charitable activities includes the costs of working with youth groups in the local area and other activities undertaken to further the purposes of the charity and their associated support costs.
## 4.3 **Governance and support costs**
Support costs have been allocated between governance cost and other support. Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice.
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources.
## 4.4 **Irrecoverable VAT**
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
## 4.5 **Creditors**
The charity has creditors which are measured at settlement amounts less any trade discounts.
## 4.6 **Provisions for liabilities**
A liability is measured on recognition at its historical cost and then subsequently measured at the best estimate of the amount required to settle the obligation at the reporting date.
## 5 **Assets**
## 5.1 **Tangible fixed assets for use by the charity**
Individual fixed assets costing £1,000 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis, a full years depreciation charge is applied in the year of acquisition and no charge is made in the year of disposal:
Fixtures & fittings IT and office equipment Motor Vehicles
Straight line over five years Straight line over three years Straight line over four years
14
## **PATCHWORK PROJECT**
(A company limited by guarantee)
## **NOTES TO THE FINANCIAL STATEMENTS**
For the year ended 31 May 2023
## **Analysis of income**
|6
7
8|**Donations and legacies**
**Charitable activities**
Bernicia Foundation
Edward Family Trust
Greggs Foundation
Newcastle City Council Public
Health
Newcastle City Council
Outreach
Newcastle Building Society
Reece Foundation
Rise NE
Sir James Knott Trust
Together
Virgin Money Foundation
Wellesley
DCMS YIF
Other grants
**Other trading activities**
Newcastle City Council COVID Fund
Donations and Gift Aid
Income from grants and contracts
CAF
Newcastle City Council
Earned income - room hire
Northumbria Police
Newcastle City Council Youth
Key Fund
Rathbone Brothers Foundation
Ballinger Charitable Trust
Garfield Western Foundation
Streetgames
Community Foundation
Connected Voice
HMRC Furlough|Unrestricted
Funds
£
993
993
-
-
-
-
12,500
-
7,000
9,375
-
20,000
10,000
-
-
-
-
-
-
-
-
-
15,000
-
-
-
-
-
60,337
134,212
251
251|Restricted
Funds
£
-
-
-
10,000
-
-
5,940
-
-
3,000
-
-
-
488
22,075
2,146
19,566
3,000
-
-
-
-
-
21,609
5,000
-
10,000
-
32,371
135,196
-
-|**Total**
**2023**
**£**
**993**
**993**
**-**
**10,000**
**-**
**-**
**18,440**
**-**
**7,000**
**12,375**
**-**
**20,000**
**10,000**
**488**
**22,075**
**2,146**
**19,566**
**3,000**
**-**
**-**
**-**
**-**
**15,000**
**21,609**
**5,000**
**-**
**10,000**
**-**
**92,709**
**269,408**
**251**
**251**|Total
2022
£|
|---|---|---|---|---|---|
||||||3,459|
||||||3,459|
||||||18,000
-
1,500
5,364
36,137
2,650
-
8,000
30,755
20,000
18,940
747
19,610
-
-
-
1,000
10,000
2,600
4,149
15,000
50,738
-
36,200
-
76,630
-|
||||||358,020|
||||||-|
||||||-|
15
## **PATCHWORK PROJECT**
(A company limited by guarantee)
## **NOTES TO THE FINANCIAL STATEMENTS**
For the year ended 31 May 2023
|**Analysis of income**continued
9
**Income from investments**
10 **Other income**
Bank interest
Other income|Unrestricted
Funds
£
354
354
5,030
5,030|Restricted
Funds
£
-
-
-
-|**Total**
**2023**
**£**
**354**
**354**
**5,030**
**5,030**|Total
2022
£|
|---|---|---|---|---|
|||||**-**|
|||||-|
|||||1,362|
|||||1,362|
Income was £276,036 (2022: £362,841) of which £140,840 was unrestricted or designated (2022: £45,576) and £135,196 was restricted (2022: £317,265)
16
## **PATCHWORK PROJECT**
(A company limited by guarantee)
## **NOTES TO THE FINANCIAL STATEMENTS**
For the year ended 31 May 2023
## **Analysis of expenditure on charitable activities**
|11|**_Charitable activities_**
Direct costs
Activities and events
Support costs
Governance costs
Training costs
Travel costs
Staff costs
Project staff costs
Equipment purchases
Office stationery and postage
Insurance
Independent examiner's fees for reporting on
the accounts
Bank charges
Depreciation
Repairs and maintenance
Subscriptions & publications
Legal and professional fees
Office rent
Utilities
Telephone and internet
Minibus expenses|Unrestricted
Funds
£
69,594
3,049
219
1,675
1,176
6,751
6,759
5,400
3,980
747
226
940
2,178
4,152
800
212
8,945
236
117,039|Restricted
Funds
£
92,342
7,807
547
2,749
77
1,318
21,588
-
668
82
4
-
10,939
1,336
75
89
-
61
139,680|**Total**
**2023**
**£**
**161,935**
**10,856**
**766**
**4,424**
**1,254**
**8,069**
**28,347**
**5,400**
**4,647**
**829**
**230**
**940**
**13,117**
**5,488**
**875**
**301**
**8,945**
**297**
**256,719**|Total
2022
£|
|---|---|---|---|---|---|
||||||151,957
-
5,399
3,350
17,536
1,770
23,500
-
16,682
1,337
385
5,916
39,495
-
960
-
-
-|
||||||268,287|
Expenditure on charitable activities was £256,719 (2022: £268,287) of which £117,039 was unrestricted or designated (2022: £30,835) and £139,680 was restricted (2022: £237,452)
12 **Fees for examination of the accounts**
|Independent examiner's fees for reporting on the accounts|**2023**
**£**
**500**
**500**|2022
£|
|---|---|---|
|||960|
|||960|
17
## **PATCHWORK PROJECT**
(A company limited by guarantee)
## **NOTES TO THE FINANCIAL STATEMENTS**
For the year ended 31 May 2023
## 13 **Analysis of staff costs and the cost of key management personnel**
|Pension costs (defined contribution pension plan)
Salaries and wages
Social security costs|**2023**
**£**
**152,058**
**10,750**
**5,259**
**168,066**|2022
£|
|---|---|---|
|||137,894
-
14,063|
|||151,957|
No employee received remuneration above £60,000 (2022: nil)
The key management personnel of the charity, comprise the Trustees, and the Project Manager. The total employee benefits of the key management personnel of the charity were £34,657. (2022: £34,657)
## 14 **Staff numbers**
The average monthly head count was 8 staff (2022: 10 staff) and the average monthly number of full-time equivalent employees during the year were as follows:
|The parts of the charity in which the employee's work
Charitable activities|**2023**
**Number**
**6.0**
**6.0**|2022
Number|
|---|---|---|
|||8.0|
|||8.0|
Sessional staff are hired on a project by project basis and are included within charitable activities as direct project costs as they typically relate to specific production or projects.
## 15 **Transactions with trustees**
None of the trustees have been paid any remuneration or received any other benefits from an employment with their charity or a related entity.
## **Transaction(s) with related parties**
There have been no related party transactions in the reporting period.
## 16 **Defined contribution pension scheme**
The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The employer's pension costs represent contributions payable by the charity to the fund and amount to £8,680 (2022: £14,063). There was £0 outstanding as at 31 May 2023 (2022: £0)
## 17 **Corporation Taxation**
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objectives.
18
## **PATCHWORK PROJECT**
(A company limited by guarantee)
## **NOTES TO THE FINANCIAL STATEMENTS**
For the year ended 31 May 2023
|18 **Tangible fixed assets**
**Cost**
Balance brought forward
Additions
Disposals
**Balance carried forward**
**Depreciation**
Basis
Rate
Balance brought forward
Depreciation charge for year
Disposals
**Balance carried forward**
**Net book value**
**Brought forward**
**Carried forward**
19 **Debtors and prepayments (receivable within 1 year)**
20
Cash at bank and in hand
21
**Cash at bank and in hand**
Prepayments & accrued income
Deferred income
Taxation and social security
Trade creditors
Accruals
Independent examination of accounts
**Creditors and accruals (payable within 1 year)**
Other debtors|**Fixtures &**
**fittings**
**£**
-
-
-
-
SL
20%
-
-
-
-
-
-
**2023**
**£**
**2,208**
**5,000**
**7,208**
**2023**
**£**
**337,427**
**337,427**
**2023**
**£**
**1,957**
**-**
**500**
**25,111**
**27,568**|**Motor**
**Vehicles**
**£**
40,460
9,161
-
49,621
SL
25%
17,812
8,945
-
26,757
22,648
22,864
2022
£
82
-
82
2022
£
358,819
358,819
2022
£
-
2,368
960
57,606
60,934|**Total**
**£**|
|---|---|---|---|
||||**40,460**
**9,161**
**-**|
||||**49,621**|
||||**17,812**
**8,945**
**-**|
||||**26,757**|
|||||
||||**22,648**|
|||||
||||**22,864**|
|||||
19
## **PATCHWORK PROJECT**
(A company limited by guarantee)
## **NOTES TO THE FINANCIAL STATEMENTS**
For the year ended 31 May 2023
## 22 **Deferred income**
Deferred income comprises of advance payments from grants that relate to future periods
|Balance carried forward
Amount deferred in year
Amount released to income earned from
charitable activities
Balance brought forward|**2023**
**£**|
|---|---|
||**57,606**
**( 57,606 )**
**10,000**|
||**10,000**|
## 23 **Events after the end of the reporting period**
No events (not requiring adjustment to the accounts) have occurred after the end of the reporting period but before the accounts are authorised which relate to conditions that arose after the end of the reporting period.
## 24 **Analysis of charitable funds**
## **Analysis of movements in unrestricted funds**
## **For the year ending 31 May 2023**
|**Unrestricted funds**
General unrestricted fund
Designated funds
Future projects
**_Totals_**
**Unrestricted funds**
General unrestricted fund
**_Totals_**
**For the year ending 31 May 2022**|**Fund**
**balances**
**brought**
**forward**
£
92,401
-
92,401
**Fund**
**balances**
**brought**
**forward**
£
77,660
77,660|**Incoming**
**resources**
£
140,840
-
140,840
**Incoming**
**resources**
£
45,576
45,576|**Resources**
**expended**
£
( 117,039 )
-
(117,039)
**Resources**
**expended**
£
( 30,835 )
(30,835)|**Transfers**
£
( 25,325 )
60,000
34,675
**Transfers**
£
-
-|**Fund**
**balances**
**carried**
**forward**
**£**|
|---|---|---|---|---|---|
||||||**90,877**
**60,000**|
||||||**150,877**|
||||||**Fund**
**balances**
**carried**
**forward**
**£**|
||||||**92,401**|
||||||**92,401**|
## **Purpose of unrestricted funds**
General unrestricted fund Designated funds
The 'free reserves' after allowing for designated funds Fund set aside for developing future projects, bus and site costs
20
## **PATCHWORK PROJECT**
(A company limited by guarantee)
## **NOTES TO THE FINANCIAL STATEMENTS**
For the year ended 31 May 2023
## 24 **Analysis of charitable funds continued**
## **Analysis of movement in restricted funds For the year ending 31 May 2023**
|**Restricted funds**
Lottery NYP COVID
Community Foundation
Ballinger Charitable Trust
Duke of Edinburgh
NHS
Virgin Money Foundation
Streetgames
CAF
Connected Voice
Children in Need DCMS
Key Fund
Newcastle City Council
Rise NE
Newcastle City Council Health
Bernicia Foundation
Newcastle Building Society
Together
Wellsley
Newcastle City Council Outreach
Other grants
**_Totals_**
Tynexe
Newcastle City Council Youth|**Fund**
**balances**
**brought**
**forward**
£
12,500
20,627
26,380
1,000
5,000
9,075
19,610
35,622
15,000
5,364
2,650
19,961
111
8,000
6,199
1,600
-
-
-
-
-
39,515
228,214|**Incoming**
**resources**
£
-
5,940
260
-
22,075
21,609
-
-
-
488
5,146
10,000
3,000
5,000
10,000
19,566
32,111
135,196|**Resources**
**expended**
£
-
( 19,097 )
( 21,767 )
( 1,000 )
-
( 13,486 )
( 12,280 )
( 26,709 )
-
-
( 10,800 )
( 599 )
( 1,587 )
( 831 )
( 2,917 )
( 5,000 )
( 10,048 )
( 13,560 )
(139,680)|**Transfers**
£
( 12,500 )
-
( 5,000 )
-
-
( 5,364 )
( 2,650 )
( 9,161 )
-
-
-
-
-
-
-
-
-
-
(34,675)|**Fund**
**balances**
**carried**
**forward**
**£**|
|---|---|---|---|---|---|
||||||**-**
**7,470**
**4,613**
**260**
**-**
**9,075**
**28,199**
**23,342**
**9,900**
**-**
**-**
**-**
**-**
**8,000**
**4,612**
**5,915**
**7,083**
**3,000**
**-**
**10,000**
**9,518**
**58,066**|
||||||**189,055**|
21
## **PATCHWORK PROJECT**
(A company limited by guarantee)
## **NOTES TO THE FINANCIAL STATEMENTS**
For the year ended 31 May 2023
## 24 **Analysis of charitable funds continued**
## **Analysis of movement in restricted funds For the year ending 31 May 2022**
|**Restricted funds**
Lottery NYP COVID
Lottery Grant
Community Foundation
Wellesley
Duke of Edinburgh
Tynexe
NHS
Newcastle City Council Youth
Garfield Western Foundation
Virgin Money Foundation
Northumbria Police
Reece Foundation
Sir James Knott Trust
Streetgames
CAF
Connected Voice
Children in Need DCMS
Key Fund
Newcastle City Council
Rise NE
Newcastle City Council
Other grants
**_Totals_**
Ballinger Charitable Trust
YHN CIF|**Fund**
**balances**
**balances**
**brought**
**forward**
£
12,500
44,596
13,592
656
8,380
1,000
2,508
5,000
14,605
-
-
-
-
-
-
-
-
-
-
-
-
4,300
20,689
20,575
148,401|**Incoming**
**resources**
£
-
-
36,137
-
18,000
-
-
-
-
19,610
20,000
36,200
1,000
2,600
15,000
50,738
5,364
2,650
76,630
747
8,000
4,149
1,500
18,940
317,265|**Resources**
**expended**
£
-
( 44,596 )
( 29,102 )
( 656 )
-
-
( 2,508 )
-
( 5,530 )
-
( 20,000 )
( 578 )
( 1,000 )
( 2,600 )
( 15,000 )
( 35,738 )
-
-
( 56,669 )
( 636 )
-
( 2,250 )
( 20,589 )
-
(237,452)|**Transfers**
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-|**Fund**
**balances**
**carried**
**forward**
**£**|
|---|---|---|---|---|---|
||||||**12,500**
**-**
**20,627**
**-**
**26,380**
**1,000**
**-**
**5,000**
**9,075**
**19,610**
**-**
**35,622**
**-**
**-**
**-**
**15,000**
**5,364**
**2,650**
**19,961**
**111**
**8,000**
**6,199**
**1,600**
**39,515**|
||||||**228,214**|
## 24 **Analysis of charitable funds** continued
## **Purpose of restricted funds**
Restricted funds represent income resources used for a specific purpose within the charity as identified by the donor.
Lottery NYP COVID
COVID support for the organisation
22
## **PATCHWORK PROJECT**
(A company limited by guarantee)
## **NOTES TO THE FINANCIAL STATEMENTS**
For the year ended 31 May 2023
## **Purpose of restricted funds** continued
Community Foundation Ballinger Charitable Trust Duke of Edinburgh NHS Newcastle City Council Youth Virgin Money Foundation Streetgames Children in Need DCMS Key Fund Newcastle City Council Rise NE Newcastle City Council Health Newcastle Building Society Together Wellsley Newcastle City Council Outreach
To fund various projects including salaries To fund the youth project To deliver Duke of Edinburgh Award activities To fund youth projects To fund the delivery of the youth project To fund the Youth panel and youth work To support holiday activities Capital fund To fund ideas presented to the panel To fund the youth project To fund training of staff and volunteers To fund activities for groups To fund volunteer support To fund a trainee/apprentice post To fund the salaries of the full time staff To fund outreach/detached work
## **Transfers between funds**
## **Reason for transfer**
|**Transfers between funds**
||
|---|---|
|Between restricted and
unrestricted funds
Between unrestricted and designed
Transfer of asset purchase and funds adjustment
Transfer of funds for future projects and committed projects
**Reason for transfer**|**Amount**
**£**|
||**9,161**
**60,000**|
## 25 **Capital commitments**
As at 31 May 2023, the charity had no capital commitments (2022 -£nil)
## 26 **Analysis of net assets between funds**
|**nalysis of net assets between funds**|||||
|---|---|---|---|---|
|Other net current assets/(liabilities)
Cash at bank and in hand
Tangible fixed assets|Unrestricted
Funds
£
22,864
148,372
( 20,359 )
150,877|Restricted
Funds
£
-
189,055
-
189,055|**Total**
**2023**
**£**
**22,864**
**337,427**
**( 20,359 )**
**339,932**|**Total**
**2022**
**£**|
|||||**22,648**
**358,901**
**( 60,934 )**|
|||||**320,615**|
23