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2023-03-31-accounts

Comp#ny Regi$trYdtion No. 09035820 Registered Charity No. 1158262 The Northstar Foundation Annual Report and Finanei#l Statements For the year end¢d 31 Mareh 2023

The Northstar Foundation Annual report and financial statements For the year ended 31 fvlarch 2023 Contents Page Offl¢¢rs Mnd profes$lonAI Advisers ChAlrman'$ r¢port Trustees, report Statement of trustee9' re$pon$ibiliti¢s Independent Audltor's report St#t¢m¢Nt of financial activitl¢S io Bal4ne¢ sh¢¢t Ca$h flow statement 12 Notes to the financial statements 13

The Northstar Foundation Annual report and financial statements For the year ended 31 March 2023 Officers and professional advisers Trllstees, Members (Dlreetors) A W Henfrey (Chairman) S M I'Anson ADRoss Seeretjry E R O'Rourke Reglstered Offlee 5th Floor Maybrook House 27-35 Grainger Street Newcastle upon lyne Tyne and Wear NEI 5JE Bnnker5 Barclay5 Bank pl 49151 Northumberlalld Street Newcastle upon Tyne NEI 7AF Sollcltor5 Muckle LLP Time Central 32 Gallowgate Newcastle upon Tyne NEI 4BF Audltor RSM UK Audit LLP Third Floor 2 Semple Street Edinburgh EH3 8BL

The Northstar Foundation Annual Report and financial statements For the year ended 31 March 2023 Chairman's Report- 2022-22 Thi5 has been the eighth year of significaiit activities for tlie Foundation whlch starred to operate during 2015-16. Payrnent5 and awirds A grant of £90,000 wa5 made to the County Durham Community Foundation (a registered charity) to provide grant bupport to Ihe investees of the North East Social Investment Fund and also to 5UPPOrt social investment in general. A grant of £10,000 was made to Th¢ Prince's Trusi (a registered chariry) to support its 8¢tivities in the North East or England. A grant of £2,000 was made to B¢aMish Museum (a reglsiered ¢h8riry) to support Its activities in the North East of England. A grfjnt of £1,000 was mad¢ to Voluntary Organisatiorts, Network North East (a registered charity) to support its tiviiies in rh¢ Norrh East of England. The Siaff Mat¢hed Giving Scheme, whereby appropriate charitable fund-raising by the individual employees of Northstar Ventures Limited athd NEL Fund Managers Limited is matched by the Foundation. Made total grants of £2,112. Goln£ forward$ Going forwards the Trusiees are explorlng several activities io see how best to further the Foundation's mission gnd impa¢t. A W Henfrey Ch8jmiAn l O November 2023

The Northstar Foundation Trustecs, report For the year ended 31 March 2023 The Trustees of The Northstar Foundation, who are a150 Directors of the company for the pu￿oSe5 of the Coinpanies Act 2006, present their annual iepoit on the affair5 of the charity, to8etli¢r with the finaiicial 5tatement5 and auditor's report for year ended 31 March 2023. Introductlon The ¢harity wa5 incorporaied on 12 May 2014 with Comp￿leS House with ¢omparty number 09035820 ind registered with the Charily Commitssiun on 15 Allgugt 2014. lis registered offiee 1$ 51h Floor, M2ybro¢)k Hvuse, 27-35 Grainger Street. Newtya$tlc upon Tyntt, Tyne and Wear, NEI 5JE. The Trustees who served during the year and subsequently were.. A W Henfrey ADRosS S M I'ADson Alm$ & Actlvlties The obj¢ct$ of The Northstar Foundation are lo support entrepreneurship And s￿18[ enterpri$¢s, primarily in the North East of England. The Trustees distribute tli¢ in¢ome to a limited nutnber of ¢harilie5, agreeing ro tnake substantial dot)aiions over a period of years to support sp¢¢ifi¢ proj¢¢ts for th¢ publi¢ b¢o¢fit. Grlnt-maklng polley The Trustees have deterniined that the current priorities for grant-m84king are to support entrepreneurship and 5(pcial enterprises (hAt benefit cxcluded and deprived communities primarily in the North East of England. Grants are awarded in line witli the Trust's Giving Criteria. Achlevements & Performance for the Publlc Beneflt The Tnain proj¢¢t fiDan¢¢d during the y¢8r wa5 a grant to the Cgunty Durham CtsTllTnunity Foundation to promote Soci￿1 iHv¢stm¢nt a¢ross th¢ North East of England, whi¢h will primarily be awarded to organisitions alongside loan5 ftom the North Ea$t So¢ial Investment Fund. Th¢ Tru5tee5 ¢9nfirm that in carryintr out the obje¢live5 of the ¢h4rity due regard h45 been paid to the public benefit guidan¢¢ published by the Charity Cotntnission. Financial Performance The ehariry's income consisied of donations received and invesiment income. Total in¢om¢ during th¢ year was £32,784 (2022.. £58,373) and after donations to benefs¢iari¢s ol. £105,112 (2022.. £21,484) and eo$t$ of ¢h)ritable a¢iiviti¢s of £15,256 (2022.. £6,106), ther¢ wa$ a net deer¢as¢ irt fund5 of £87.584 (2022.. £30.783 inerease). Res¢rv¢$ Poli¢y The Trustees review the level of reserves annually. The Trustees retain the reserves to the extent considered necessary io ensure that adequate funds are available to cover ￿tUre expendi￿re wl)icl) Inay not oihenvi5e be covered by incoine. The immediate need of tl)e Trust is considered to be no more than £10,000 to cover one year's audit and tax fees and Trusiee5' expenses. At the year end, the level of re5ei've5 was £600,149 cornpii5in¥ £600,149 of unrestricted reserves {2022.' total reserves of £687,733 comprising unrestricted res¢rve5). The reserves policy is therefore met.

Th¢ Northstar Foundation Trustees report For the year ended 31 March 2023 (continued) Risk Management The Trustees are responsible for the management of risks faced by the charity. The Trustees work to an established risk martagemenl process lo assess busintss risks and implement Tisk management stra(cgies. This has involved idelltifying the types of risks faced, prioritising them in Lemis of potential irnpact und likelihood of oceurrence. and identifying means ofmitigating the risks. The key ¢ontro15 us¢d and mitigating action3 undertaken include.. appointiiig an experienced Board of Truste¢s, and use of an experienc¢d inv¢srJn¢nt panel to approve all Growrh and Resilience Fund grant awards made. Golng concern bas1$ The charity is depet)dent llpot) irs exlsilnB unrestricted ¢8sh res¢rves of £540,164 at 31 March 2023 (2022.. £645,526} and receiving fut)dit)g froto Nortlisiar Ventures Litnired and NEL Fund Managers Liittited. ExisiinE reserves wlll enable the ¢h8riry to conrinue to make grants for the for¢$¢e0bl¢ fuwr¢. Crnt)is will noi be mad¢ unless there are adequate cash r¢servos to cover cunent proposals and future commitments. The Trustees believ¢ the ¢harity is well placed to manage i¢s business risks successfully despite the current uncertain economic outlook. Tjie Trust¢es Iiave further assessed the potential impact to the business from the effects ol'the current cost of living crisis however due to the nature of the charity's activities, no si&inificant impact on its going concem position is expected. The Trusteos, therefore. Consider that the going concern assumption 15 an appropriate basis on which to prepare these financial statem¢nts_ Plans for future perlods The Trustee5 are exploring Several aciivities to see how b¢st to further the Foundalic)n's mission and imp￿t. Siru¢tur¢, GovernAnc¢ and MAlligement Charlly organLsatlon The North$tar Foundation is a public benefit entity, registered charity (registered Charity Numb¢r 1158262) and A Company limited by guarantee (Company Regislration number 090358201. The liabilily of a m¢mber in the event of the Tru8t being wound up whilst a member. or within one year of ceasing to be a member. is nor to exceed £10. Governante and Management The Trust is governed by its Memorandum and Articl¢3 of A350cialion which proYid¢ for a minimurn of two Trustee3 and no Tn#XiTnUTll llutnber of Trusl¢¢5. Tl)e Chair of TTU5tees, together with the Company Secretary, i5 responsible for the recruitmei)t and induction of any new Trustees, Trustee induction involves raising awarenes5 of Tru5tee5 to their duties and responsibilities linder both the Charitigs A¢t 2011)nd th¢ Corllpanies Act 2006 #s well an introduction to the govgrning docurnenrs of the Trust and the int¢mal poli¢ies adopted. New Trusl¢e$ T¢ceive an Indu¢tlon Paek in whi¢h ¢opies of the following #re included.. The Tru5t'5 latest annual report and financial staternents,. The Trust's iniemal governing documents, The Trust'$ M¢morartdum and Article$ of A$$ociation' and Th¢ Chority Commission publi¢ation5 'Th¢ Essential Tru5tee.' What You Need to Know, md 'The Hallmarks of an Effe¢tive Charity,. When appropriate, fN5tees receive regular Charity Conllnission updates and inforniation about issues facing ihe voluntary sector locally.

The Northstar Foundation Trustees, report For the year ended 31 March 2023 (continued) The Trustees meetapproximately twice peryear to agree the strategic direction ol'the Foundation. to review applications at)d award grants. Cjrants are awarded in line with the Trllst'g Giving Criteria. Whilst there is no maximum awar grants to individual orgajiisaiions are £enerally Awarded for £50.000 or less. The Trust does not have any direct employees. On a day to day basis, the Trust is ￿mIn1$ter8d by members within ihe Corporate Social Responsibility team of Northstar Ventures Limited, and associAted costs are borne by Northstar Ventures Limited. Rel4t10115hlps with related pgrtles Details of transactions with related parties are set out in note 12 to the financial statements. The Foundation has one wholly-owned subsidiary, NSF Holding5 Limited. which is rl 20•/0 shareholder in NEL Fund Managers Limited, a vcnlure c&piial fund manager, and a 3011/0 associate of Northstar Ventures Holdings Limiied. which is the sole shareholdcr of Northstar Ventures Limited, a venttire c&pital fund Inonager. The Trustees have taken the exemption in seeiion 398 of the Companies Act to not prepar¢ group accounts. ort the basi3 that The Northsiar Foundation qualifies as 8 sm811 company and a small group. Auditor RSM UK Audit LLP have expressed their willingness to continue in office a5 auditor. Accordingly a resolution to reappoint thein will be proposed at the forthcoming Annual General Meetin8. The Trustees, Report was appi'oved by the Board and signed on its behalf by, A W Henfrey Chairmanrrru3tee l O November 2023

The Northstar Foundation Statement of Trustees, responsibilities For the year ended 31 March 2023 Statement of tru$tee¥' re$ponsibilitie$ The Truste¢s {who are tlso dir¢¢tor3 of Th¢ Northstar Foundation for the purp05e5 of company law) are responsible for preparing the TTU%t¢e$' Annual Report and the fill4n¢ial stateTnent5 in accordance witli applicable law and United Kingdom Ae¢ounting Standard5 ILlniied Kingdotn Generally Accepted Accounting Practice). Company law r¢quiTeS the Tru51e¢s to prepare financial stotements for ellcl) financial year which give a irue and fair view of tli¢ 5tat¢ of affairs of th¢ charitable coinpany and of the incoming resources and applic&tion of resources, in¥luding th¢ in¢oTne and expenditure, of the chaTltabl¢ company forthat period. In preparing ihese financial siateinents the Tru5te¢5 #re required to., 5el¢ct suitable accounting policie5 and then apply thein consistently. obs¢rv¢ the m¢rhods at)d prin¢ipl¢s it) the Ch8rities SORP,. make judgements and estimales that are reasonable and prudent: stait whether appli¢able UK A¢¢ountiny Standard5 have been followed subject to any material departures disclosed and explained in th¢ financial statements., and prepare the financial Statements on the ¥ioin&7 concern basis unl¢55 it is inappropriat¢ to presum¢ Ihoi ihe ¢haTltable company will conttnue in business. The TTuslees are responsible for keeping ￿equate a¢¢ouDtin¥ records thai disclose with r¢asot)able a¢¢uracy at any time the financial position of the charitable coillpany and enable 11)em to ensui¢ that th¢ finanriJl stat¢in¢nts comply with the Companies Act 2006. They are also responsible for safe.guarding tlie assets of tlie charitable Company anii henLe for taking reasonable Steps for ihe prevention w)d detection of fraud and other irre&iularitie5. In $0 far a$ the trustee5 are awaTe'. ther¢ is no relevant audit infortnalioD of which the charitable company'5 &uditor 13 unaware; and the trustees have takei) all 5tep5 that they oughi to have takeii to make themselves aware of any relevant audit inforniatioi) and to e5tablisli that tlie auditor is aware of thai infonnaiion. The Trustees are responsible foi. the maintenance and integrity of the corporare and financial infomation included on the charitable coinpany's website. Legislation in tlie Ui)ited Kii)gdoill governing the preparation and disseminaiion of f￿ancIal Statements may differ from legislation in other jurisdictions.

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE INORTHSTAR FOUNDATION Oplnlon W¢ hawe audited the financial staieinenls of The Northsiar Foundatioii {Ihe 'cl)aritable company'l for tlie year ended 31 March 2023 which comprise the Siatement of Financilll Activitie5 {incorpoTating the incon)e and expendi(urc accounil. the Balance Sheet. tl)e Cash Flow Staiement and notes to the financial 5t¢ltements, including significani accounting policies, 1-he financial repoitiiig frcwnework tliat has been applied in their preparation is applicable law wid Uiiited Kii)gdoin Accountii)g Siandvds, iiicluding FRS 102"The Financial Reporting Standard applicable in thc UK and Republic of Ireland" (United Kingdom Generally Accepted Accountzng Practice), In our opinion the finan¢ial $iatem¢nts'. givc a true and fair Yiew of the State of the chtritable comparty's affairs as at 31 March 2023 atld of its incoming resource5 and oppliotion of resources, including its ineome and expenditure, forthe year then ended.. have been PTop¢rly prepared in aecordanee with United Kingdom Generally Accepted Accounting Pra¢ti¢e: ond have been prepared in accordance with the r¢quir¢menl$ of th¢ Companies Aet 2006. BAsi5 for opinion We conducted our audit in accordance with International Standards on Auditing IUKI (ISA5 (UK)) and )ppli¢able law. Oui. responsibilities under those standards are furtlier deKribed in th¢ AuditQT'S respon5ibiliti¢¥ lor the audit of the finai)¢ial statements section of our r¢port. We ar¢ indepertderti of the charitable company in accordance with the ethical requirement5 that are relevant to our audit of the firtaneial statements in the UK, including the FRC'S Ethical Standard and w¢ have luifilled our other ethical responsibilities in accordance with these requireiM¢nts. W¢ beli¢ve th)t the audit evidertLe we have obtained is sufficieni and appropriaie to provide a basis for OUT opinion. Conclusions relating to going concern In auditing thg financial 5tat¢m¢nts, we have ¢oncluded thai the trustees, use of the going concem basis of accountin8 in the preparation ofthe finan¢ial statements is appropriate. Based on the work we have performed, we have not ideniified any m&ierial uncertainties relating to events or ¢onditions thai, individually or colleeiively, may c251 significant doubt on the charitable COmPk￿Y's ability to eontinlle as è going coiicern for a period of ai leRSt iwelve montl)s from wlieii the financial slaten)ents are auihorised for issue. Our responsibilities and the responsibilities of the trustee5 With respect to going concern are desci'ibed in the relevant sectiot)s of this report. Other Informatlon The vthttr infonnaiion comprises the inforinaiion included in the Trusiees, Repon other than the f￿ancial statements and our alldiior's report diereon. The tnjstees cilE responsible for the otl)er inforinalion coniained withiTh the Trnstees, Report. Our opit)ion on die financial siareinents doe5 not cover the other infomiation and, except to ¢ht extent otherwise expliciily stLted in our report, we do not express any forni of assurance conclusion tliereoi). Our responsibility is to read the other infomatiot) and, in doing so, consider whether Ilie other inforination is materially iftLonsistent with the flnancial staietttenis or our knowledge obtained in the course of tl)e audit or otherwise appear5 to be materially missiaied. If we idelliify such material inconsistencies or apparent Inaierial misstatements, we are required to deterniine whether this 8ives rise to a mil ierial misstateineni in ihe financial statements themselves. If, based on the work we have perfortned, we conclude tl)at there is a Inaterial misstatement of this other information, we are required to repon that f&ct, We have nothing to report in this regard.

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE NORTHSTAR FOUNDATION {CONTINUED) Oplnlons on otlier matters pr¢s¢rlb¢d by the CompADle$ Act 2006 In our opinion, based on th¢ work undertaken in the ¢ourse octhe audlt.. the information given in the Trustees, Report. which includes the Direciors, Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is con51Stent with the financial statements,. and the Directors. Report ineluded witliitt the 'frusiees' Report has been prepared irt ac¢ordan¢¢ with applicable legal requirements. M#tt¢r$ on which we Ore required to report by txc¥ption In the light of Llie knowl¢dg¢ and understanding of the charitable company and its environment obtained in the course of the audit. w¢ have noi id¢nlified m&terial mi$$taiem¢nt$ in the DiTe¢tors' Reporl included within the Trustee$. Report. We have nothins to report in respect of the following matters where the Companie5 Act 2006 requires us to report to you if. in our opinion-. adequate a¢cL)untin¥ Tecords have not been kept. or returns adequat¢ for our audit have not been r￿e1Ved frorn branches not visited by us: or the finan¢i81 $tal¢rn¢nls are not in &￿reement with the a¢¢ounling r¢cords and TetUrn5' OT ¢ertain disclosures of truste¢s' remuneration Specified by law are not made. or we have not received all the infonnation and explanations w¢ r¢quire for our audit., or Tii]5tee$ were not entitled to PT¢PIIT¢ the fLnanci31 stsl¢m¢nts in dr¢ordan¢e with the small companies, rcgiTnC and take adv&ntage of the small COTnpAnies exeTnption from the requiTenient lo pr¢par¢ a Strategi Report or in prepttring the Trustees, R¢port. Re$poniibiliti¢$ of trustee& As explained moi¢ fully in th¢ Slatement of Tru$l¢es' respon5ibilitie5 S¢t out OD page 6, the tru3t¢¢5 (who are als the directors of the ¢haTitsble LOTnpany foi the purposes of CQTllP8ny 18w} ET¢ rtsponsible for the preparation of the financi81 statements and for being satisfied that they give a true and fair view. ond lor sueh int¢mdl control as the trustees deterniine is necessary to enable the preparation of financial statements that are free from m8l¢rial misststement, whether due to fraud or error. In PTep8Ting the financial statements, the trustees 8re responsible for assessing the charitable company's ability lo continue a5 a going conccm. disclosing, as applicable, matters related to going concern and using the going concem basis of accounting unless the trustees either intend to liquidate the charitable company or to eease operations, or have no realistic &I￿rnatiVe but to do so. Audltor's responslbllllles for the 8udlt of the nnancl81 statements Our objectives arc to obtain reasonable assurance about whethcr the financi81 statements as 8 whole are free from material mis51atement, whether due to fraud or error, and to issue an auditor's report that include% our opinion. Reasonable assurance is a high level of assurance. but is not a guaranice that an audit conducted in accordance with ISA5 IUKI will always detect a m&terial mi5Statement when li exisis, Misstatements can arise from fraud or error and are Considered material if, individually or in the aggregate, they could reason&bly be expected to influence the economic decisions of users iaken on the basis of these financial statements. The extcnl to Ivhich the audit was consldered capable of detectlng Irregul8rltle5, Includlng fraud Irregularities are instances of non-cornpliancc with laws and regulations. The objectives of our audit 8re to obtain su￿1¢1ent appropriate audit evidence regarding compliance with laws and regulations that have a direct effeet on the deterniiiiation of material amounts and disclosure8 in the financial stateinents. to perforni audit procedures to help identify instances of non-coinpliance with other laws and regulations that may have a Inaterial effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulation5 identified during the audit. In relaiion io fraud, Ihe objectives of our audit are to identify and asscss the risk of material missiatcmerti of the firtancial statements due to fraud. to obtsin sufficieni appropriate audit evidence regarding the assessed ri$ks of

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE NORTHSTAR FOUNDATION (CONTINUED)

material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected f[r] aud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with govemance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS I 02, Charities SORP (FRS I 02), Companies Act 2006 and the Charities Act 2011 . We perfonned audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees' Report and remaining alert to new or unusual transactions which may not be in accordance with the governing documents.

The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to any significant, unusual transactions and transactions entered into outside the normal course of business.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at hnp://www.frc.org.ukauditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. OLtr audit work has been unde1iaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent pennitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have fo1111ed.

Kelly Adams

Kelly Adams (Senior Statutory Auditor)

for and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants Third Floor, 2 Semple Street Edinburgh EH3 8BL

15/11/23

9

The Northstar Foundation Statement of financial activities (ineorporating the income and expenditure account) For the year ended 31 March 2023 2023 2022 Unrestric¢¢d Unrestrlcled Note Intome from Donaiiolls, leEa¢ies and Èrants lllvesimenis 24.368 8.416 58,013 360 Totgl In¢ome 32.784 58,373 Expondlture on: Ch&ritable dctivlties {120.368) (27,590) Totol ¢xp¢odl¢ure {120,368) (27,590) Nel In¢omel(expendltur¢) for the yeAr (87.584) 30,783 Nel movement la funds (87.584) 30,783 R¢con¢lltstlon of funds: Total funds biou81)t forward Net movemeni in funds for the year 687,733 187,584) 656,950 30,783 Tot*l fund5 ¢Arrled forward 600,149 687,733 All the above results derive from Continuing operntions. All gains and losses recognised in the year are included above. The note5 on pages 13 to 18 form part of these financial siatements. There was no unrestricted income or exp¢nditur¢ in the current y¢8r or th¢ previou5 y¢ar. 10

The Northstar Foundation Balance sheet At 31 March 2023 2023 2022 No¢¢ Flxed a¥sels Investments 7,298 7,298 Curr£Mt a$$ets Debtors Cash and cash equivalents 57,847 540,164 49,972 645,526 598,011 695.498 {5,160) {15,063) Creditors: amounts (alling due within one yeAr Net current a55etS 592,851 680,435 Total a55ets les$ current lilbilities 600,149 687,733 Net assets 600,149 687,733 Fund$ Unr¢stri¢t¢d funds Restri¢ted funds 600,149 687,733 Total (unds 600,149 687,733 The note$ on pages 13 10 18 fom part of the$¢ financial statements. There were no unrestricted assets or liabilities or funds in the CU￿ent year or the previous year, Th¢ accounrs hav¢ b¢en pr¢pared in accordance with th¢ provisions Bpplicobl¢ to ¢ompanies subje¢l lo the small companies regime. The finan¢ial stateinents of The Nordistar Foundation, ¢ompany number 09035820 and ¢h8riry number 1158262. were approved by the Trusiees at)d authorised for issue on 10 Nov¢mber 2023. Signed on their behalf by.. A W Henfrey Chairnian 10 November 2023

The Northstar Foundation Cash flow Statement For the year ended 31 March 2023 2023 2022 Note Net cash flows from operaLing activiti¢$ 1113,778) (64,1121 Cash fiows from Investlng aetlYliltJ.' Interes( received 8,416 360 Net cash flows frorn inv¢sting activllies: 8,416 360 Net d￿re&s¢ IN cash and cash equivalents C4$h and c4$h equivalents at the beginning of the year 1105,362) 645,526 (63,752) 709,278 Cash and c85h equiv8l¢Nt$ al the end of the year 540.164 645,526 Reconciliolion to cAsh at bank and in hand.. Cash at bank aHd in hand Cash equivalcnt% 40,164 500,000 145,526 500,000 C&sh ond cash cquivglents 540,164 645,520 The note5 on pag¢5 13 to 18 form part of these fmancial stlltements. 12

The Northstar Foundation Notes to the financial statements For the year ended 31 March 2023 Aeeountlng polleies Compwny #nd ¢harltable status The Northstar Foundation. a public benefit entity. 15 inco￿orAted ih Englpthd and Wales as a compony limited by guarantee not having a share capital. There are currently three Trusiees who are &lso the tt7einbers attd directors of ihe ctsmpany. Each member has undertaken t¢) ¢(Trntribute to the assets in the event ofwindin8 up a sum t)ot exceeding £10. The Charity is a registered charity. The registered office is givert on page l. Th¢ prit)cipal attiviry of the chAriry is the making of grants to ¢haTities and other not.for.profit organisations to support social ¢nr¢Tprise and entr¢pr¢ii¢urship. primarily in the North East of EnglÈnd. Basly of prephration Th¢ financial stat¢Tnent5 ar¢ PT¢par¢d under the historical CDSt convention, in accordance with the Statement of Recommended Practic¢"Accountins and Reporting by Charitics (SORP 2019)" applicable to charities preparing their accounts in a￿ordanCe with the Financial Reportlll8 Standard appliLable to the UK and Republic of Ireland (FRS 102).. and th¢ Companies Act 2006. Its functional currency is considered to be poutsds sierling be¢&us¢ rha¢18 Ihe curren¢y of the primary economic environmenl in which the charity operates. The ch?rity has net a35¢t5 and expect5 thi$ to continue in future periods. Based tsn thi8. the Trustees have Assessed that ther¢ 15 no mafrri#l uncertainty SUTrounding the ¥oing concern of the charity a5 further noted in the Trustees, report. Thu5, they continue to &dopt the going conc¢m basis of accounting in preparing the annudl financial statements. Con501id4tio The directOTS haye taken the exeTnption in section 398 of the Companies A¢t to not prepare group ae¢ounts, on th¢ basis that The North5tar Foundation qualifies as a 5Tnall company and a small group. Income All income is reeognised in the staiement of financift5 activities when the charity has entitlement to the funds, any perfomiance conditions attached to ihe items of income have been met, it is probable tl)at the inc0￿C will be received, and the gmoun( can bc measured reliably. The following a¢¢ounLing polieies are applied to income.. DonalEOnS receivabl¢ Voluntary in￿rne 15 accounted for on tlie date when it b￿0￿¢$ re¢¢ivabl¢. Invuifflenl Iheome Investment irt¢ome is &e¢ount¢d for when receivable. Donaiedgoo& a￿dSerVICeS Gifts in kind and doJ)ated services ar¢ included al th¢ low¢r of their valu¢ to charity and their estimated market vttlue. Expendliure l.iabilities are recognised as expenditure as soon as there is a legal or constru¢iive obligatlon committing the ¢harity lo expenditure. All expenditure is accounte(L for on an Accruals basis firtd has been classified under headings that aggregate all costs related to the category. Charitable Jctivitie3- grant5 pay4bl¢ Grant5 are included in the Staten)ent of Financial Activities wh¢H approv¢d by the Tru$l¢es and a￿¢¢dwith the recipient organi5ation. If & gTant 15 awarded that 15 d¢pendenl on Certain conditions being mel, it 1$ tr¢aled as expenditure and & liability of the Trust if tliose conditions fall outside of the control of th¢ charity. 13

The Northstar Foundation Notes to the financial statements (continued) For the year ended 31 March 2023 Aecountlng polleleg (conlinuedl Fund J¢roulltillg The Charity tnaintains various types of funds as follow5.. Resli'icledluKds Restricted funds represent grants and donation$ Teceived whi¢li are provided by the donor for specific purposes. Any costs of raising or administering su¢h funds #Te Charged a¥ain5t the Specific funds. Uni'eJtYi¢ledfiin¢ts General unrestricted fund5 Tepre5enl funds which are expendable nt the discretion of Trnsiees in fthrtheranee of the objects of the Charity. Such funds may be held in order to fmance both working capital and capital investment. Tpxation The company is a registered Chariry and has no liability to ¢orporation tax on its charitable activiti¢s. Flxed asset Invextmenls Investments held as fixed assots are ststed al ¢osi l¢ss any provision for impainnent. Flnancial Insti'uments The charity only has fii)an¢ial assets and financial Ilabllitles of a klnd that qualify as basic financial instrum¢nt5. Ba51 financial instruments are initially r¢¢ognised at trunsaction value artd subsequently measured at their settlemcnt value. Trade and other debtors are re¢ognised at the settlement amount due after any trade dis¢ounl off¢red. Pr¢paytn¢nt5 are valued at the amount prepaid nei of any trade dls¢ounts due. CAsh at b&nk and Cash i# hand include8 cash and equivalcnts being short temi tr¢a$ury d¢p03it5, Creditors and provisions are recognised where the charity has a present obligatiotl r¢sulling froin a past event tllat will probably result in the transfer of funds lo a third party 8nd the amount due to s¢ttle the obligation can be measured or e5timot¢d ￿l]￿bly. Creditors and provisions are nomially recognised &1 their settlement gmount after allowing for any trad¢ di5¢0unts due. Concesslonary108ns Concessionary loans made or received are initially r¢¢o#ni$ed ID th¢ statement of financial position at the amount paid or received. To the extent ihat a loan that has been made 15 irre¢ov¢rable, an impairnient loss shall be recognised in income and expenditu¥e. Crltlc81 aeeountln% jud%ement$ gnd key yource5 of estimation uncertainty In the )ppli¢ation of the charity's accounting policies, the 'l'nisiees are required to make judgements. estimates and a55UmPtion5 about the ¢arryirsg amounts of as5et5 and liabilities ihai are not readily apparent from other sources. Th¢ ¢stimates and associat¢d 8s$umptions are ba5¢d on experience and other factors that are considered to be relevant. A¢iual results may ditTer from th¢s¢ ¢sliThat¢5. The e$timates and underlying assumptions are reviewed on an ongoing basis. Revisions to aceountirtg es¢imate5 are recogni5¢d in the period in which the esiimare is revised if the revision affects only tha( period, or in the period of the revision and future periods if th¢ revision affects boih current and future periods. The Tru5tee5 do not consider there are any critical judgemenrs or sources of esiimaiion une¢rtainty requiring dis¢losure beyond the accouiiting policies listed above. 14

The Northstar Foundation Notes to the financial statements (continued) For the year ended 31 March 2023 Imeome Irom donAtion5, legacles grants 2023 2022 Dot)ation from Northslar Ventures Limited Dot)atlOh from NEL Fund Managers Limited Donation frorn NSF Holdings Limited In¢om¢ from Amazon Smile 5,626 18,000 730 12 40.000 18.000 24.368 58.013 IM¢omc from investments 2023 2022 Bank inteTe5t received 8,416 360 Analy$l$ of expenditure ¢harit#ble activities 2023 2022 Supportlng entrepreneur9hlp and $ocio1 enterpriJe$ Crant fuiidlng of aetlvltles Griinis io bencficigries 105,112 21,484 Support Costs Bank charges Annual return fee Infortllation Commissioner's Office annual fee GraT)t administration fee Governance c08t5 {note 3) 35 26 35 10,000 S,160 30 26 35 6,015 120,368 27,590 Grants which relate to applications Tequesting funding of £IOO.000 {2022.. £100,000). are dealt with under delegated powers. During the year there was one Inajor grani made (2022.. none). I'his was a commitment of £90,000 to the Counry DuTharn Community Foundation {"CDCF") alongside £90,000 from that organisation to provide grants to h#riiies and other org?ni53tion5 to promote social inve5tnient. Primarily those obtaining social investments from the North East So¢ial IDV¢5¢ment Fund. Thi5 grant fund is administered by CDCF, 15

The Northstar Foundation Notes to the financial statements (continued) For the year ended 31 March 2023 Analysis of expenditure on charitable actlvities (¢ODtinued) Other grant5 which relate to applications requesiing fiinding of £40.000 or less are 8150 d¢alt with under delegated pow¢r5. Under such delegated authority, awards totalling £15,112 (2022.. £21,484) were mad¢ to eiglit 12022,, 5) benefi¢iaries, COTnprisin8 registered charities. community intcrcsi companies and noi-for-profiL organi5ations, summary of the awards Tnade during the year ended 31 March 202J is shown on page 2. All awards are ratified at regular Tru5tee5' Tne¢tins5. 2023 2022 Gralltg to In$titutlOnS County Durham Community Foundation- social inv¢5tment support Donation to 'fhe Prince's Trust Donation to Bellmish Donation to Voluntary Organisations. Network North F8$t Donation to Durham University (accrued at 31 March 2022, paid in May 2022) Staff matcliin8 90,000 10,uoo 2,000 1,000 i 0,000 10,000 1,484 2,112 105,112 21,484 Govern8n¢¢ ¢o$ts 2023 2022 Govemance costs 5.160 6,015 Governance costs includc audit fees which art amounts payabl¢ for the audit of the charity's financial staieinents12023.. £5,160 {2022.. £4,500)). A tax reDJrn Was not required for the year end¢d 31 March 2023 (2022,. no Teturn required), Inv¢$tm¢nl8 h¢ld *$ fix¢d 0$5et5 2023 2022 C05t: Shares in group undertakings Subsidiary Associate Other investments 7,286 7,286 7,298 7,298 16

The Northstar Foundation Notes to the financial ststements (continued) For the year ended 31 March 2023 Inv¢stm¢nts b¢ld as llxed assets (¢ontlnu¢d) Deialls of subsldlary and asg0¢iated undertakings owi)¢d by the Company which are registered in England and Wk)le9 ar¢ As follows,. Name Share capltal Ownershlp Actlvlty NSF Holdings Limited (fomierly NEL Fund Management Group Liinited) {owner of 200/0 of the ordinary 5har¢5 in NEL Fund Manag¢TS Limited. a ventur¢ capital fund Tnanag¢r) £600 ordinary 100% Inlemiediate holding company, non-tradirtg Northstar Ventures Holdillgs Limited (own¢r of l OOQ/o of the ordinary shares in Northstar Ventuies Limited. a ventyro capital fund manager) At 31 March 2023. the aggregate5 of rapitsl aJLd r¢3erv¢s and the profits of the abOv￿￿8M¢d ¢ompanies #re shown below.. £33 B ordinary and £500.000 redeemable preference shares 300h Intemiediate holding company. non-trading Capital nd re9erY• Profit NSF Holdings Limited Northstar Venture5 Holdings Limited (soo) 100 511.287 Other inv¢5tments are as follow5.. 2023 2022 Capitsl ¢ontribulion lo the North East So¢i&l Investment Fund Limited Parthership Debtors 2023 2022 Concessionary loans made Prepayments and accrued income 52,005 5,842 49.756 216 57,847 49,972 Concessionary loan5 made aTe un5¢¢ured, b¢&T no interest and hav¢ #o fiy¢d r¢payment date. A commitment of £100,000 was made on 7 July 2017 to tlie North East Social Investment Fund Limited PartneTship> which is an invesllnent ￿nd making loans to charities and social enterprises. The Nortl)star Foundation is a limited partner in the fund. The commitment will be drawn down behveen 7 July 2017 and 9 December 2024, as required by the fund in order to make investments and finance fund management fees. The fvnd 15 managed by Northstar Venture5 Limited. The commitment is being funded by the charity's unrestricted reserves. 17

The Northstar Foundation Notes to the financial statements (continued) For the year ended 31 March 2023 Cr¢ditors', f4llin% dN¢ within one year 2023 2022 Accru¢d grants Aecruols 10.000 5,Q63 5.160 5,160 15.063 Reconciliation of net income to net CAsh generaied from operAtioRs 2023 2022 Net incomellexpenditure) Inter¢st rec¢ivabl¢ (In¢roase) in debtOT$ Increa$el(d¢ereas¢l in ¢reditors (87,584) (8,4161 (7.8751 (9,9031 30,783 (360) (5,398) (89,137) Nei eashtlows from operating activities (113.7781 (64,112) io. Trustees None of the trustees received any remuneration in the current or prior yeaT, Dr A W Henfrey wa5 reiinbursed for out- of-pocket trnvel expeiises of £nil12022.. £nil) during tl)e year. Mr A D Ross was reimbursed for out-of-pocket travel expenses of £nil (2022.. £nill during the year. 12. Related party transaetions During the year, the eharity received donation ineome of £5,626 {2022.' £40,000) from ft relatcd company, Northstar Ventures Limited. The charity indirccily owns 300/D of the ordinary share capiial of Northstar Veniures Limited. During the year, the chorily received donation in¢ome of £18,00012022. £18,000) from a related eompany, NEL Fund Managers Limited. The charity indireLily own$ 200/0 ofthe ￿rdinary share capital of NEL Fund Martag¥rs Limited. The charity has no direct key management or other personnel. The charity is administeT¢d by mernbers within the Corporate Social Responsibility team OF North5tar Ventures Limited, and assts¢iated ¢o$ts are borne by Northslar V¢ntures Limited although their value cannot be reliably estimated. Dyrin8 the year ended 31 March 2023 the charity made conces5ionary loans of £2,249 (2022.. £5.182) to the North East So¢ial Investment Fund Limited Partnership. The balance of the concessionary loan outstandinuF at 31 March 2023 was £52,005 (2022.. £49,756). Durin&7 the year ended 31 MaTch 2017 the charity made a capital Contribution of £1 I to the North East Social Investment Fund Limited Partnership. a venture capital investment fund which is managed by North5tar Ventures Limited. 18