Company Registration No. 09035820 Registered Charity No. l 158262 The Northstar Foundation Annual Report and Financial Statements For the year ended 31 March 2024 The Northstar Foundation Annual report and financial statements For the year ended 31 March 2024 Contents Page Offjcers and professional advisers Chairman's report Trustees, report Statement of trustees, responsibilities Independent auditor's report Slatement of financial activilies io B4lance sheet Cash flow statement 12 Note5 to the financial 5tAtements 13 The Northstar Foundation Annual report and financial statements For the year ended 31 March 2024 Officers and professional advisers Truslees, Members (Directors) A W Henfrey (Chainnan) S M I'Anson ADRoss Seeretarv E R O'Rourke Registered Office 5th P l()or Maybrook House 27-35 Cjrainger Street Ncwc(1sllc upon Tyne Tync and Wear NEI 5JE Bankers Barclay5 Ilank plc 49151 Nurthumbcrland Street Newcasllc upon Tync NEI 7AF Sollcltors MIiLklc LLP TIML CLnlral 32 (iallowgale Newcastle upon Tyne NEI 4BF Audilor RSM UK Audii LLP Third Floor 2 SemplL Street Edinburb,h EH3 8BL The Northstar Foundation Annual Report and financial statements For the year ended 31 March 2024 Chairman's Report- 2023-24 This has been the ninth year of significant activities for the Foundation which started to operate during 2015-16. Pgyments and awards A gyrant or £ I i).O()O was made to The Prince's Trust (a regisiered charity) to support its activiiies in the North East or England. A grant of £2,250 was mad¢ to B¢amish Museum (a regisl¢r¢d charity) lo support ils activities in the North East or England. A gYTant of £ I,OIK) was made 10 the Community Foundaiion Serving Tyne & Wear and Northumberland (a reLFislered charily} to support its activities in the North Easl of England. A grant ot £500 was made to Catalysi Stockton on Te¢s Limited (a r¢gislered charity) to support its aclivities in ih¢ North East of Enbpland. A gyrant of £250 was made to the Plunkeii Foundation {a registered charity) 10 SUPPOrt ils activities in the North East of Eng,land. The StafT Malched Giving Schemc. whercby appropriate charitable fund-raising by the individual employees of Northslar Vcnlurcs Limilcd and NEL Fund Manab)crs Limitcd is malchcd by the Foundation, niadc total girants of £2.833. Going forwards Going forwards Ihe Trustees are exploring several aciivilies to see how besi io further the Foundaiion's mission and impact. A W Henfrey Chairnidn 08111124 The Northstar Foundation Trustees, report For the year ended 31 March 2024 The Truste¢q of The Northslar Foundation. who ar¢ also Direciors of th¢ company for th¢ pun￿￿¢S of th¢ Companies Act 2006, prcscnt IhLir annual report on the affairs of the charily, logcther with the financial slalcments and auditor's report tor year ended 31 March 2024. Introdu¢tlon The charity was incorporated on 12 May 2014 ￿'1th Companies House wilh company number 09035820 and registered with Ihc Charity Commission on 15 Aubpusl 2014. lis regislLrLd o￿lee As 5, Floor. Maybrook Ilou5L, 27-35 Grainb>Lr Stre¢l. N¢wcasil¢ upon Tyn¢. Tyn¢ and Wear. NE15JE. The Trusl¢es who s¢rved during th¢ y¢ar and subs¢qu¢ntly were: A W Henfrcy ADRo%s S M I'Anson Alms & Actlvitles Thc objccl% of The Northqlar Foundation are lo %uppon enlrepreneurship and social enterprises, primarily in the North Easl L)f EnglÉind. The Tru51ees distribute the income to a limiled number of charities. agreeing to make substantial donations over a period of yLars lo support speLifiL projccts for ihc public bcnLfit. Grant-maklng policy The TrusteL5 havL dclcnnincd Ihal the currcnt priorilics for bpranl-making arc to supporl cnlrcprcnLufship and 50Lial enlerpriscs Ihal benclil excludcd and dcprivcd communilics primarily in thc North Easl of England. Grants are awardcd in linc with the Trust's Giving Criteria. Achievements & Performance for the Public Benefil The Foundation made a numbLr of small granls during the year and the Trustees are considering a larger grant prob?rammc tor 20?$ onwards. Thc Truslccs confirm Ihat in carying out the objcctives of ihe charity due regard has been paid to thc public bcncfit guidance published by Ihe Charily Commission. Financial Performance The charity's income consisted of donation5 received and investmeni income. Total incomc during the ycar was £33,057 (2023.. £32.784) and aftcr donations to bcncficiarics of £16.833 (2023.. £105.112) and costs of charilabl¢ aclivilies of £7.875 (2023: L15.256), th¢r¢ was a n¢1 incrcasc in funds of £6.406 (2023.. £87,584 decrease). Reserves Pollcy Thc Trustces rcvicw Ihc Icvcl of reserves annually. Thc Truslccs rctain Ihc rcservcs lo thc extcnt considered neccssary lo ensure thal adequate funds are available lo cover future expenditure which may nol otherwise be covered by incorn¢. The immediate nccd of the Trust is considcrcd lo be no more than £10,000 lo cover one ycar's audit and tax fces and Trustees, expenses. At Ihe year end. the level of reserves was £606.555 comprising L606.555 of unrestrieled reserves (2023.. lolal reserves of £600,149 comprising unrestricted reserves). The reserves policy is Iherefore mel. The Northstar Foundation Trustees, report For the year ended 31 March 2024 (continued) Risk Management The Truslees are responsible for the management of risks faced by the charity. The Trustees work lo an esthblished risk management process to assess business risks and implement risk management strategies. This has involved identifying the types of risks faced, priorilising ihem in lerms of potential impact and likelihood of o¢curr¢nce, and idenlifying means of miligaling ih¢ risks. The key controls used and mitigating aclions undertaken include- appointing an experienced Board of Trustees, and use of an experienced invesimenl panel io approve all Growth and Resilience Fund granl awards made. Going concern basls The charily is dependeni upon its exisling unresiricted cash Teserves of £552.340 ai 31 March 2024 (2023.. £540.164) and rcLciving funding from Northsiar Veniurcs Limiied and NF.L Fund Mai)agcrs Liiniicd. Exis1ii)g rcserve% will enablc Ihe charily to continue to makc g7rants for thc forcsccablc future. Grants will not be madc unlcss thcrc are adequate cash reserves 10 cover curreni proposals and future commitmenlq. The Trusleeq believe the charity is well pliiccd to manilgFC its busine55 ri5k5 SUCCCssfully dcspilc thc curreni unccrtain economic ouilook. The Tru5tCC5 have furthcr assesscd Ihc polcniial impaci to Ihc biisincss from Ihe cffecis of the current cosi of living crisis howcver duc to Ihc n(Itur¢ ul the Lh(Irily's aLliN'iiies. no significani impaLI on it% gioing concern position is expecicd. The Tru%lLCS, Ihcrcforc, considcr Ihat Ihc gioingv conccrn assuinption is an appropriatc ba%is on which lo prcparc thcsc finanLirt and financial statements. The Trust's internal governing documents; The Trust's Memorandum and Articles of Association. and The Charity Commission publications 'The Essenlial Truslee: What You Need to Know, and 'The Hallmarks of an Effective Charity.. When appropriate. Trustees receive regular Charity Commission updates and inforn]ation about Issues facing the voluntary sector locally. The Northstar Foundation Trustees, report For the year ended 31 March 2024 (continued) The Tru.sl¢es m¢¢1 approximal¢ly twice per y¢ar lo agree th¢ slral¢gic direction of the Foundation. to revi¢w applications and award grants. Grants are awardcd in linc wilh Ihc T￿St'S Giving Crileria. Whilst there is no maximum awar grants to individual organisations are generally awarded for £50.000 or less. Th¢ Trust docs not havc any dircct cmployccs. On a day to day basis. thc Trust is administered by members Within the Corporate Social Rcspon%ibilily team ol- Nonhstar Veniures Limiicd, and associaicd cosi% are borne by N()rthqiar Ventures Limilcd. Relationships Ivith related parties Dctai15 of iransaclions with relaled parties are sel oul in note 12 to ihe financial 51alcmcnt5. The Foundalion has one wholly-owned subsidiary. NSF Holdings Limited. which is a 20°/o shareholder in NEL Fund Mana&ycrs Limilcd. a vcnlurc capital fund manab?cr. and a 3￿/0 associatc ofNorthsiar Vcnlures Holdings Liinitcd, whiLh is the sole shareholder of Northstar V¢nlur¢s Limited. a v¢ntur¢ capilal fund manag¢r. The Trustees havc iaken the exemption in seclion 398 of the Companies Acl to nol prcpare group accounts, on thc basis Ihat The Northsiar Foundation qualifies as a small company and a small group. Auditor RSM UK Audil LLP have expressed their willingness lo conlinue in office as audilor. Accordingly a resolulion to reappoint them will be proposed at the forthcoming Annual General Meeling. Thc Truslccs. Report was approvcd by Ihc Board and signed on ils bchalf by: A W Henfrey ChairmanlTrustee 08111124 The Northstar Foundation Statement of Trustees, responsibilities For the year ended 31 March 2024 Statement of trustees, responsibilities The Trustees (who are also dircciors of The Northslar Foundalion for ihc purposes of company law) are responsiblc for preparing the Trustees, Annual Report and the financial slalemenls in accordance wilh applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepied Accounting Practice). Company law rcquircs th¢ Trust¢¢s io prepare financial slat¢m¢nis for ¢a¢h financial year which giv¢ a tru¢ and fair view of the stale of affairq of the chariiable company and of Ihe incoming resources and application of resources. includingi th¢ inLumc and cxpcndilurc. of thc LhiirilJblc company for tlial period. In prcpiiring7 thc5c fiijanLi(11 stilt¢'n)ciits Ihc Trusices are required lo: select suilablc accounting poli¥ics and then apply ihcm consistcntly; observe the method.q and principles in the Charities SORP: make jud¥cm¢nls and cslimalcb thai arc r¢a50nablc and prudeni: slate whcihcr applicable UK Accounting Siandards have been followed subject to any material departurcs disc105ed and explÉiined in the financial statements. anil pr¢p<1r¢ the financial statements on th¢ going Concern basis unless it is inappropriate to presume that the LharilJblL company will continu¢ in busin¢s5. The Trustccs are rcsponsible for keepingi adcqualc accounting records Ihal disclosc with reasonable accuracy al any lime Ihc linancial position of Ihc charilablL company and cnablc Ihcin lo cnsurc thal Ihc financial slalcincnls coinply with thc Companies Act 2006. Thcy are also responsiblc for safc-guardinb Ihc assets of the charitable coinpany and hence for taking reasonable steps for ihe prevention and deleclion of fraud aTJd other irregularities, In so far as th¢ trustees are aware: there is no relevanl audil inforniation of which the charitable company's auditor is unaware; and the Iruslccs have lak¢n all stcps that they ought lo have lakcn to mak¢ themselves aware of any rclcvanl audit informaiion and lo eslJbli%h Ihai the audiior is aware of Ihat infomiation. Thc Trustccs arc rcsponsiblc for ihe mainlcnance and inlcgrity of thc corporatc and financial inforniation includcd on Ihe charitable company's websiie. Legislalion in the United Kingdom governing the preparation and dissemination of rinancial statements may differ from legislation in other jurisdiclions. INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE NORTHSTItR FOUNDATION Opinion W¢ hav¢ audited the financial slal¢m¢nts of The Northstar Foundation (the 'charitabl¢ company.) for the year ended 31 March 2024 which comprise ihc Sialcmcnl of Financial Aclivilies (incorporating the income and expenditure account). the Balance Sheet. Ihe Cash Flow Sialemenl and noles to the financial statements. including sibynificant accounting policies. The financial reporting framework Ihat has been applicd in ihcir preparation is applicable law and United Kingdom Accounling Standards. including FRS 102"The Financial Reporting Standard appliLable in ihe UK and Republic of Ireland" Iuniled Kingdom Generally Accepted ALcounting PraLtILe). n our opinion the financial slatcments- give a true and fair view of th¢ state of th¢ chariLqble company's affairs as at 31 March 2024 and of ils incoming resour¢¢s and application of resourccs. including its incomc and expendiiure. for the year then ended; have been properly pr¢par¢d in accordanc¢ with Unil¢d Kingdom G¢n¢rally A¢¢¢pt¢d A¢¢ounting PraLtiLL; and have been prepared in accordance with the requirements of the Companies Acl 2￿6. Basis for opinion We LonduLlcd our audit in accordance with Internaiional Standards on Auditing IUKI IISA5 (UK)) and applicable law. Our responsibilities undcr lho￿ standards are further dcscribcd in ihe Audilor's rcsponsibilitics for the audit ol. the financial %iaiemenl.s ￿¢110n of our report. We are independenl of Ihe charitable company in accordance with Ihl Lithi¢al r¢quir¢mL'ntS that arc r¢l¢vant lo our audit uf ihc financial slal¢incnts in ihc UK, inLludingJ thL FRC'S Ethical Siandard and we have fuifillcd our oihcr cihical rcsponsibiliiics in accordance with Ihcsc rcquircmcnts. Wc bclievc that Ihe audit cvidcncc we have obtaincd is suifi¢i¢ni and apprupriulc to providc a basis for oiir opinion. Conclusions relating to going concern In audilinby the Iinancial statemcnts. we have concluded that the truste¢s' use of the going concern basis of a¥Lounting in thL pr￿p￿all￿n ol. IhL financial slalLmcnis is approprialL. Based on the work we have pertonned. we have not idenlilied any material uncertainties Telaling to events or conditions Ihat. individually or ¢ollLLtiv¢ly. may cast 5ignifi¢ani doubt on th¢ charitabl¢ Coinpany's abilily lo conlinuc as a going conccrn for a pcriod of at least Iwelvc monihs from when the linancial statemenls are auihorised for issu¢. Our rc8ponsibiliti¢s and thc rcsponsibililics of the trustees with respect lo going concern ar¢ described in the relevant 5ection5 of Ihi5 report. Other Informallon Thc oihLr inlonnalion comprises the informalion included in the Trustees. Report other Ihan the financial statements and our auditor's rcport thereon. The trnstees are responsible for the oihcr information contained wiihin the Trustees. Report. Our opinion on the financial slalemenls does not cover the other information and, except lo the extent oihenvise explicitly staled in our r¢port, we do not cxpr¢ss any fom] of assuranc¢ conclusion Ih¢r¢on. Our rcsponsibility is to rcad thc othcr inforniation and. in doing so. considcr whthhcr thc other inforniation is materially inconsistent with the financial statement4 or our knowledge obtained in the course of the audil or olhenvise appear5 to be materially mi551aled. If we ideniify such material inconsistencies or apparent material misst1c tcmcnts, wc arc rcquircd to dclcrminc whethcr thi5 givcs risc lo a matcrial misstatcmcnl in thc financial statements themselves. If, based on the Work we have performed. we conclude that there is a material misstatcmcnt of this oiher information, wc arc rcquircd to rcport Ihat facl. We have nothing to report in this regard. INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE NORTHSTAR FOUNDATION (CONTINUED) Opinions on other matters prescribed b). the Companies Act 20116 In our opinion, based on ihe work und¢rtak¢n in th¢ cours¢ of th¢ audit: the information given in ihe Truslees, Report. which includes the Directors. Report prepared for the purposes of company law, for the financial year for which thc financial statcincnls arc prcparcd is consistent wilh the financial statements- and the Directors. Report included within the Tru51ees' Report has been Prepared in accordance with applicable Icgal requirements. Matters on whieh we are required to report bv exception In ihe light of lh¢ knowledge and Unders￿ndIng of ihe chdritdble company dnd its environment obtained in th¢ course of ihc audit, we have noi idcntilicd matcrial misstaicm¢nis in ihc Dircctors, Report includcd within tlic Trust¢¢q' Report. We have nothing lo rewrt in respecl of ihe following matters where the Companies Act 2006 requires us to report to you if, in our opinion: Idcqualc accounting rccvrds havc not bccn kcpi. or rciums adcqualc for our audil havc noi been rcccivcd t.rom branches not vi%itcd by us; or thc linancial siaicm¢nts arc not in agrc¢mcnl wtih the accounting records and rctums. or certain disclosurcs of Irnslees. remuneration specificd by law are not madc: or wc have not rcccivcd all the informalion and cxplanalions we require for our audtl; or TrustLCS WLrL nui cntitlc'd to prcparc th¢ financial slat¢m¢i)ts in aLcordancc with tlic small compani¢s' regimc and takc adi'anlagc of Ihc small companics cxempiion from Ihe rcquircmcni lo prcparc a Siralcgyic Report or in preparing the Tru5tccs' Report. Responslbllltles of trustees As ¥xplain¥d morL fully in th¥ Siai¥m¢nl of Trusi¢¢s' r¢sponsibilili¢s s¢t out on pabY¢ 6. th¢ Irustccs {who ar¢ also thc dircctors of thc charilablc company for thc purp)ses of company law) are responsible for the prcparalion of thL linaniial slal¢mLnls and for bLinbp salisfiLd ihal thcy givc a iruL and lair view. and tor such inicrnal control ab thc tru51¢¢s dclerminc is n¢ccssary lo cnablc th¢ prcparalion of financial stal¢m¢nls that ar¢ fr¢c from Inatcrial misstatement. whether due to fraud or error. In preparing the financial slaiements. Ihe iru%iees are responsible for assessing the charilable company's ability lo continuL' as il gFoingF LollLCrn, disclosiiig. as iipplicable. mallLrs related to gioingi cunccm (Ind usiiig Ihc gyoiiig conccrn basis of accounling unless the Irustec5 eiihcr inlcnd to liquidalc Ihc charitable company or to ccase operations, or have no reali51ic aliernalive but to do so. Audltor's responslbilitles for the audit of the fin2nc121 statements Our objcclives arc 10 oblain rcasonablc assurance aiN)ul whLthLr Ihc financial statcmcnts as a wholL arc frcL from matcrial misslal¢meni, whcthor duc lo frdud or error, and lo issu¢ an auditor's report that includcs our opinion. Rea.%onJble a%4uranLe is a high level of assurance. but is not J ¥uaraniee ihat an audit conducied in acLordanLe with ISA5 (UK) will always dctcci a malcrial misstsicmcni when it ¢X1515. Mi55tatcinent5 can arisc from fraud or error and are considered material if, individually or in the aggregate. they could reasonably be expected to influcnLc the economic dccisions of users lakLn on the basis ofihese financial siaicmenis. The exlent lo which Ihe audit eon5idered capable of deteclin% irregularitie5, including fraud Irregularities are instanLes of non-complianLe with lam's and regulations. The objectives of our audil are to obtain sutyicicnt appropriatc audit cvidcncc regarding compliancc with laws and regulations that havc a dircct cffcct on the determination of material amounls and disclosures in the financial statements. to perforni audit procedures to hLlp idcnlify instances of non-compliancc with other laws and rcgulations that may havc a malerial cfTcLI on the financial statements. and io respond appropriately to identified or suspecied non-compliance with laws and regulations identified during the audit. INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE NORTHSTAR FOUNDATION (CONTINUED) In relation lo fraud. the objectives of our audil are to identify and assess the risk of material misslalemenl of the financial statements due to fraud. to obtain su￿1Clent appropriale audit eN'idence regarding the assessed risks of material misslalemeni due to fraud through designing and implementing appropriate responses and to respond appropriately lo fraud or suspected fraud identified during the audit. Howcver, it is Ihc primary r¢spon5ibility of managcment. with thc oversighi of those charged wilh gFov¢rnancc. to ensurc thai the entity'5 opcration5 are conducied in accordance with the provisions of laws and regulations and for thc prevention and detection of fraud. In identifying and assessing risks of malerial misslalemenl in respect of irregularilies, including fraud, the audit engagement team.. obtained an understanding of ihe nature of ihe sector, including the legal and regulatory frameworks thal the charilablc company operales in and how the charitable company is complying with the legal and rcgTulatory frameworks- inquircd of managemeni, and those charged with governancc, al)out their own idcnlificalion and a$8e8%meni of Ihc ri%k8 of irrcgulariiics. including any known aciual. suspccicd or allcgcd instanccs of fraud: discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial slalemenls may be susceplible lo fraud. Aq a result of these procedure% we con8ider the most significani laws and regulations ihat have a direct impact on thc financi(Il %lalcmenl% arc FRS 102, Charilie% SORP (FRS 1021, Companie4 Act 2006 and the CharitiL'4 Aci 2022. We perfomied audil procedures to detect non-compliances which may have a material impaci on ihe financial %tatement% which included reviewing Ihe financial statements includinL the Trustees. Rcport and remainingi alert to new or unusual transactions which may nol be in accordance with the gToverninLF documenls. The audit engagement team idcntifi¢d the risk of management ov¢tTide of controls as the area where the financial slalcmcnls w¢r¢ most susc¢pliblc lo material misslal¢menl duc lo fraud. Audit proc¢du￿S p¢rfonn¢d includ¢d bul w¢rc not limilcd lo Icsling manual journal enlrics and oth¢r adjustm¢nts. evaluating th¢ business ralionalc in rolation to any significant. unusual transactions and transactions entcrcd into outsid¢ the nonnal course of businLbb. A further de5CriPtion of our responsibililies for (he audil of the financial 51aiemen15 is locaied on the Financial Reporting, Council's website al hii :/lwww.frc.or .uk/audilorsres nsibilities. This description fomis part of our auditor's report. Use of our report This report is made solely to the charitable company'5 members. as a body, in accordance with Chapter 3 of Part 16 of the Companies Acl 2006. Our audil work has been undertaken 50 thal we might state to the charitable company'5 member5 those matters we are required 10 State to them in an auditor'5 report and for no other purpose. To the fullest extent permitted by law. we do nol accepi or assume responsibility to anyone other than the charilable company and the charitable company'5 members a5 a body. for our audit work, for thi5 report, or for the opinions we have formed. Kelly Adams (Senior Statutorv Auditor) For and on behalf of RSM UK AUDIT LLP. Statutory Auditor Chartered Accounlan15 Third Floor. 2 Semple Street Edinburgh EH3 8BL Date 08111124 The Northstar Foundation Statement of financial activities (incorporating the income and expenditure account) For the year ended 31 March 2024 2024 2023 Unreslrlcted Unrestrlcled Note Ineome from: Donalions. legacies and graDIs Inveslmenls 10,020 23,037 24,368 8,416 Total income 33,057 32,784 Expendlture on: Chariiable activities 126.651) (120.368) Total expenditure {26.651) 1120.16111 Net incomel(expenditure) for the ye*r 6,406 (87,5841 Net movement in funds 6,406 (87,584) Reconciliation of funds: Total tunds brougihi lonvard Nct movcmcni in funds for the year 600.149 6,406 687.733 (87,584) Total funds carrled fonvard 606,555 600,149 All the above results derive from continuing operations. All gains and losses recognised in the year arc included above. The nole5 on pages 13 10 18 fomi part of these financial slalements. There was no restricted income or expenditure in the current year or the previous year. io The Northstar Foundation Balance sheet At 31 March 2024 2024 2023 1¥4ote Fixed assets Investments 7,298 7,298 Current asset5 Dcblors Cash and cash equivalent5 56.017 552.340 57.847 540,164 608.357 (9,100) 598.011 (5,160) Credltors: amounts fallln% due wlthln one year Net current assels 599.257 592.851 Total assels less Current liabilities 606.555 600.149 Net assets 606.555 600,149 Funds Unr¢slri¢t¢d funds Rcslriclcd funds 606.555 600,149 Total funds 606,555 600,149 The notes on pages 13 10 18 fomi part of these financial slalemenls. There were no restricled assets or liabililies or funds in the current year or the previou5 year. The accoiinls have been prepared in accordance with the provisions applicable lo companies subject lo the small ¢ompdni¢s r¢gimc. The financial statements of The Northstar Foundation. company number 09035820 and charity number 1158262, were appruvL.d by IhL Truslccs and authoriscd for issuc on 8 Noi'cmbcr 2024. Sign¢d on their b¢half by.. A W Henfrey Chainnan 08111124 The Northstar Foundation Cash flow statement For the year ended 31 March 2024 2024 2023 Nole Net cash flows from operating activities (10,861) (113,778) Cash flows from investing activitie5: Interesl received 23.037 8.416 Net eash flows from investin% activities: 23.037 8.416 Net decrease in cash and cash equiv4lent5 Cash and cash equlvalents at the be%lnnln2 of the year 12.176 540,164 (105,362) 645,526 Cash and cash equivalents at the end of the year 552.340 540,164 Reconciliation to cash at bank and in hand: Cash al bank and in hand Cash ¢quivalenl8 52.340 500.(M)O 40,164 500.000 Cash and cash equivalents 552.340 540.164 The noles on pages 13 to 18 fom] part of Ihese financial slal¢menls. 12 The Northstar Foundation Notes to the financial statements For the year ended 31 March 2024 Accounting policies Componv and charitable 5t4tUS The Northstar Foundation. a public benefit entity. is incorporated in England and Wales as a company limited by guarantee not having a share capital. There are currently ihree Trustees who are also the members and directors of the Company. Each member has undertaken to conlribule lo the assets in the evenl of winding up a sum not exceeding £10. ThL Lharily is a rLbislLrcd charity. Thc rcb>lStLfLd offiLC is given on pagc l. ThL principal aLlivily of Ihc Lharily is Ihe making of grants to charities and oth¢r not-for-profit organisalions lo support social enterpris¢ and ¢ntr¢pr¢n¢urship. primarily in th¢ North East of England. Basis of preparation Thc financial statcmcnts are prepared under the historical cost convcntion, in accordance with ihc Sialemcnt of Recommended Praclic¢ "Accounting and Reporting by Charities (SORP 2019)" applicable lo charities preparing their acLounls in aLLordancc with the FinanLial RLPOrting Standard appliLable lo Ihc UK and RLpublic of IrLland (FRS 102). and Ihe Companies Act 2006. Its tunclional currency is considered to be pounds sterling because that is the currcncy of the primary economic environmenl in which the charity opcrales. Thc charity has nct asscis and expccis Ihis lo continue in ￿lUre pcriods. Bascd on this. Ihc Trustccs havc asscssed thal Ihere is no maierial uncertdiniy surrounding the going concern of Ihe charity as further noted in the Trusiees, report. Thus, they coniinuc to adopt the goingy concern basis of accounting in preparing ihe annual financial statemcnts. Consolldatlon Thc dircclor% havc taken the cxcmption in section 398 of the Companies Act to not prepar¢ group accounts. on the basis Ihat The Nonhstar Foundation qualifies as a small company and a small group. Income All income 15 recoginised in the slalemeni or rinancial aciivilies when the charity has enlitleinenl tu the funds, perforniancc condilions attached to Ihc items of income have been rnet. it is probable that the income will be received, and the amouni can be measured reliably. The following accounting policies are applied lo income". Donalion5 receivable Voluntary income is accounted lor on the dale when it becomes r¢ceivable. Invej'lmenl inc'ume Investment income is a¢counl¢d for when r¢c¢ivabl¢. Donalcd good.s and si)n'ices Gifts in kind and donated s¢rvic¢s ar¢ includ¢d al the lowcr of their value to charity and their ¢slimal¢d mark¢t value. Expenditure Lidbililics are recognised as expenditure as soon as there is a legal or constrnctive obligation committing the charity to cxpendilurc. All cxpcndilurc is accounted for on an accruals basis and has been classified under headings Ihal aggregate all costs related lo the category. Ch4ritable activities - grants payable Granls arc includcd in thL SialLmcnl of FinanLial Acli¥'ilies when approvcd by Ihc Trustees and agrccd with Ihc rccipicnt organisation. If a grant is awarded that is dependent on certain conditions being mel, il is treated as expenditure and a liability of the Trust if those conditions fall oulside of the conlrol of the charity. 13 The Northstar Foundation Notes to the financial statements (continued) For the year ended 31 March 2024 Accounting policies (continued) Fund accounting The Charity maintains various types of funds as follows: Re.Ylricled fiind.Y Reslricled funds represent grants and donations received which are provided by the donor for specific purposes. Any ¢o.sls of raising or administering such ￿ndS are charged against the specific funds. Unres¢ric¢ed]i4nds General unrestricted funds represent funds which are expendable at the discrelion of Trustees in turtherance of th¢ objLCts of Ihc Charity. Such funds may bc hLld in ordLr to finance l)oih working capital and capitsl invLStinenl. Taxatlon The company is a registcrcd Charity and has no liabtlity lo corporation lax on its charitable a¢tivili¢s. Flxed assel Investments Investments held as fixed assets are stated at cost less any provision for impairn)ent. Flnanclal Instruments The charity only has financial assets and financial liabilities of a kind Ihal qualify as basic financial inslrumenls. Basic financial inslrum¢nls ar¢ initially r¢cognis¢d at Iransaction valu¢ and subs¢qucnily mcasurcd at thcir s¢iilcm¢nl valu¢. Trade and oiher debiors are recognised ai Ihe seiilemeni amounl due after any trade discouni offered. Prepayments are valued at the amounl prepaid nel of any trade discounts due. Cash al bank and cash in hand includes cash and equivalents being short terni treasury deposits. Crcditors and provisions are rccogniscd whcrc thc charily has a prcscnt obligTation rcsulling from a pa51 cvcnt that will probably result in Ihe Iransfer of fund% to a third party and Ihe amouni due lo sellle ihe obligalion can be measured or estiinatcd reliably. Creditors and provisions (Ire norm(Illy recogjnised at ilicir settlcmenl amount iiftcr alluwing for (￿Y Iradc discounls due. Concesslonary loans Concessionary loans made or received are initially recognised in the siaiemenl of financial posltion at the amount paid or rcLLived. To ihc cxlcnt thal a Io(In that has becn Iniidc is 1￿CLoVer￿bIC, an iinpairincni10s5 slidll be rL'LugJni5Ld in income and expenditure. Critical accounting judgements and key sources of estimation uncertainty In the application of the charity's accounting EK)licies, the Trustees are required to make judgements. estimates and assumptions aboul the Ca￿Ing amounts of a5sels and liabililies thal are not readily apparent from oiher sources. The estimates and associated as.sumplions are based on experience and other factors that are considered to be relevant. ALtual results may dilTer from ihese estimates. The eslimalcs and undcrlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimales are recognised in Ihe period in which the estimate is rel'ised if the revision affects only thal period, or in th¢ period of the revision and futurc periods if the revision affects both current and future periods. The Trustees do noi consider there are any criiical judgements or sources of estimaiion uncertainty requiring disclosure beyond the accounting policies listed above. 14 The Northstar Foundation Notes to the financial statements (continued) For the year ended 31 March 2024 Income from donations, legacies and grants 2024 2023 Donaiion from Northstar Ventures Limited Donation from N EL Fund Managers Limiicd Donation from NSF Holdingys Limited InLome from Amazon Smile 5,000 5.000 5,626 18,000 730 20 10.020 24.368 ncome from investments 2024 2023 Bank intcrcsl rcccivcd 23,037 8,416 Anal)sls of expendlture on charltable actlvltles 2024 2023 Supportin% entrepreneurship and social enterprises Grant fundinx of aelivitie5 Grants to bLnLfiLidfiLS 16,833 105,112 Support Costs Bank charges Annual retum fee Infonnalion Commissioncr's Officc annual fee (wrant administration fee Bad debt provision Govemance costs (note 5) 56 13 35 35 26 35 I O,OIK) 443 9.271 5,160 26,651 120,368 Grants which relate to application5 requesting funding of £100,0￿ (2023: £100,000), are dealt with under delegated powers. During ihc ycar there were no major grants madc12023: one). 15 The Northstar Foundation Notes to the financial statements (continued) For the year ended 31 March 2024 Analvsis of expenditure on charitable activities (continued) Other gyranls which relate to applications requesting funding of £ l 0.000 or less are also dealt with under delegFaled powcrs. Under such dclcgaicd auihoriiy, awards ioialling £16.833 12023.. £15,112) were madc to 11 (2023: 8) bcncficiarics, comprising rcgislcrcd charitics, cominunity intcrcst companics and nol-for-profit organisations. summary ot Ihe award% madc during Ihe year ended 31 March 2024 is shown on page 2. All awards are raiified ai regular Trustce5' meciings. 2024 2023 Grants to in5titution5 County Durham Community Foundalion - social investmenl support ThL Prince's Trusl BcaTnish Voluntary Organisations. Network North Easi The Community Foundation Serving Tyne & Wear and Northumberland Calalysl Si(ILkic)n on Tces Limited The Plunkclt Foundation Staft" matching 90,000 10,000 2.000 1,000 10,000 2.250 1,000 500 250 2,833 2.112 16,833 105,112 Governance cost5 2024 2023 Audit fees Tax tees Trust¢¢ ¢xpens¢s r¢imburs¢d 7,000 2.100 5,160 9.271 5.160 Governance costs include audit fees which are amount% payable for the audit of the charity'5 financial 5tatemenis (2024.. £7.00012023: 15,1601 lind tdx rctum cos15 ofL2,1 IX) (2023: no tax rctum rcquircd). Investments held 8$ fixed assets 2024 2023 Cost: Shares in group undertakings Subsidiary A550ciate Other investments 7.286 7,286 7,298 7,298 16 The Northstar Foundation Notes to the financial statements (continued) For the year ended 31 March 2024 Investments held as fixed assets (continued) Details of subsidiary and associated undertakings owned by the company which are registered in Engyland and Wales are as follows.. Name Share Cvdpital Ownership Activity NSF Holdings Limiled (formerly NEL Fund Managicmcnt Group Limited) (owner of 200/D of the ordinary shares in NEL Fund ManagTers Limilcd. a venlurc capital fund managcr) £600 ordinary loo% nlemiediale holding company, non-Iradin&' Northslar VcnlurLS F loldings Limilcd (owner ot- l 00 % ot Ihc ordinary shares in North51ar Veniures Limiied, a veniure apital fund managier) Al 31 March 2024, the aggr¢gal¢s of capital and re￿rVeS and th¢ profits of the above-named compani¢s are shown below.. £35 B ordinary and £5O0.000 redccTnablc prcfcrcnce shares 300/0 Inlcmicdialc holding company. non-lrading Capltal and reserves Profit NSF Holdings Limited N()rthsiar VeniurL'S Holdings Limiied 100 511.287 Oiher inve51menis are a5 follows: 2024 2023 Capital contribution to the North Ea51 Social Investmeni Fund Limited Partnership Debtors 2024 2023 Con¢¢ssionary loans made Prcpaymen15 and accrued income Amounts due from group undertakings 53.897 2.034 86 52.005 5,842 56,017 57,847 Concessionary loans made are unsecured, bear no interest and have no fixed repayment date. A commilmenl of £ 100.000 was made on 7 July 2017 10 the North East S(Kial InN'cstincni Fund Limilcd Partncrship, which is an investment fund making loans to charities and social entery)rises. The Northstar Foundation is a limited panner in the fund. The commilmL'lli will be drawn down beiween 7 July 2017 and 9 December 2024. as requirLd by the fund in order to make investments and finance fund management fee5. The fund is managed by Northstar Ventures 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 2024 Creditors: amounts falling due within one year 2024 21b23 Accruals 9,100 5.160 Reconcilialion of net income to net cash generated from operations 2024 2023 Net income/{expendilure) Intcrcsl reccivable Decreasell increase) in debtors Incrcasc/(dccrcasel in creditors 6,406 (23,037) (87.5841 (8,416) (7.¥751 {9.903) 3,940 Net ca5hflow from operaling aciivilies {10,861) (113,778) io. Trustees None of the trustees received any remuneration in ihe curreni or prior year. One ofthe tru51ees was reimbursed for out- of-pockel travel cxpcnscs or £171 (2023.. £nil) duringi thc year. 12. Re12ted party transactions During thc ycar. Ihc charily rcccivcd donalion income of £5.000 (2023.. £5.626) from a rclalcd company, Northslar Vcnlures Limiled. Al 31 March 2(124 Ihc charity was owcd £116 {202.3- £nil I by Nonhslar Venlures Lirnilcd relaling7 to over-payment of re-imbursemenl of Truslee's expenses. This ainounl was repaid by Northstar Ventures Limiled after the year end. Thc charity indirectly owns 3￿/0 of the ordinary share capilal of Northslar Vcnlurcs Limited. During th¢ y¢ar, the charity recciv¢d donalion income of £5.00012023.' £18.0(K)) froin a r¢lated company. NEL Fund Managers Limited. The charity indirectly owns 20Q/o of the ordinary share capital of NEL Fund Managers Limited. During Ihe year. the ch