**Charity Registration Number: 1168614**
## **Lifeline Community Action**
## **Financial Statements**
## **For the Year Ending**
## **31 March 2026**
## **JANE ASCROFT ACCOUNTANCY LIMITED**
Chartered accountants Enterprise House Harmire Enterprise Park Barnard Castle County Durham DL12 8XT
## **Lifeline Community Action**
## **Financial Statements**
**Year Ended 31 March 2026**
||**Page**|
|---|---|
|Trustees' Annual Report|**1**|
|Independent Examiner's Report to the Trustees|**8**|
|Statement of Financial Activities|**9**|
|Statement of Financial Position|**10**|
|Statement of Cash Flows|**11**|
|Notes to the Financial Statements|**12**|
|**The Following Pages Do Not Form Part of the Financial Statements**||
|Detailed Statement of Financial Activities|**24**|
## **Lifeline Community Action**
## **Trustees' Annual Report**
## **Year Ended 31 March 2026**
The trustees present their report and the unaudited financial statements of the charity for the year ended 31 March 2026.
## **Objectives and Activities**
## **Purposes and Aims**
Lifeline Community Action works from the heart of Newton Aycliffe and supports individuals and families across County Durham and Darlington who are experiencing poverty, crisis, isolation or disadvantage. Our purpose is to respond practically and compassionately at the point of greatest need, helping people to stabilise their circumstances and regain dignity, confidence and hope.
The people we support may be facing unemployment, poor mental health, domestic abuse, debt, relationship breakdown, homelessness, social isolation or the pressures affecting working households on low incomes. We seek to understand the whole situation behind each referral and provide practical support that meets immediate need while also connecting people with wider help, community and opportunity. We operate with a Christian ethos and provide support to anyone who needs it, regardless of faith or background. Our services are impartial, confidential and free at the point of access. We do not discriminate, and we aim to ensure that every person who meets Lifeline is treated with dignity, respect and kindness.
During the year, the charity moved into its new registered office within the Lifeline Community Hub. This has significantly strengthened our ability to reach local people and provide accessible community facilities, including an interview room, training room, IT suite, community café, charity shop and community pantry. The Hub also enables us to expand activities that reduce isolation, improve wellbeing and create a welcoming place where people can access support before crisis deepens.
## **Ensuring our work delivers our aims**
We listen to service users, referral partners and the wider community to understand changing need and assess whether our work is achieving its aims. Feedback and monitoring information are used to adapt our provision, improve access and ensure resources are directed where they can make the greatest difference. Our work focuses on ensuring that individuals and families have the essentials needed to live safely and with dignity: warmth, clean clothing, a comfortable bed, the ability to cook and serve meals, and the means to keep themselves and their homes clean. Alongside emergency support, we provide opportunities for connection, learning and wellbeing so that people are not only helped through immediate hardship but are also supported to move forward.
**1**
## **Lifeline Community Action**
**Trustees' Annual Report** _**(continued)**_
## **Year Ended 31 March 2026**
Our projects include:
**Helping Hands** - Helping Hands provides essential household goods tailored to the circumstances of each person or family referred. The project helps people set up, maintain or recover a safe and functional home during periods of crisis or hardship.
**Children’s Support** - Children's Support provides emergency practical help to parents, carers and parents-to-be living in poverty. Support includes items that help babies and children stay clean, warm, safe and fed, reducing pressure on families at critical points.
**Basic Hygiene Packs** – Our hygiene packs provide essential cleaning and personal care items that enable households to maintain basic hygiene, protect dignity and reduce health risks. Packs are distributed through foodbanks, charities and other organisations offering frontline support.
**Teenage toiletry pack** - These packs provide older children and young people with age-appropriate toiletries and personal hygiene items. They are delivered primarily in response to requests from schools and help ensure young people can attend school with dignity and confidence.
**Ask for Charlotte packs** – These packs provide sanitary protection for anyone who is struggling to afford period products, helping to reduce period poverty and protect dignity.
**Socialisation & Wellbeing projects** – We provide free activity sessions that encourage social connection, reduce loneliness and support mental and physical wellbeing. Sessions during the year included knit and natter, craft activities, Zumba and armchair exercise, ensuring that cost is not a barrier to participation.
**Recycling Scheme** – This project operates from the Community Hub and ensures donated items that cannot be used in support packs are still put to good use. Items are made available free of charge to local people through initiatives including:
- School uniform scheme
- Winter coat appeal
- Seasonal giveaway events (Christmas, Halloween & World Book Day)
These projects reduce waste, prevent usable items from going to landfill and ensure resources are redirected to families who can benefit from them.
**Christmas toy appeal** – Each year we run a Christmas Toy Appeal to support families who would otherwise struggle to provide gifts. The appeal helps reduce pressure on parents and carers and ensures children can experience the joy and inclusion of Christmas.
## **How our activities deliver public benefit**
Lifeline Community Action delivers clear public benefit by supporting individuals and families in crisis across County Durham and Darlington. We work in close partnership with approximately 150 referral agencies, including Durham County Council, social workers, health visitors, midwives, housing officers, schools, the NHS, the police, domestic abuse organisations, and a wide range of charities and food banks. These trusted partners identify vulnerable individuals and families in need of urgent assistance and refer them to our service, ensuring support is well-targeted and reaches those most at risk. We also accept referrals directly from members of the public, ensuring open access to our support. Each referral is assessed individually, and the help we provide is tailored to the specific needs of the household. This may include emergency food aid, essential household items, clothing, baby supplies, or other forms of practical support designed to ease hardship, promote stability, and safeguard wellbeing.
**2**
## **Lifeline Community Action**
## **Trustees' Annual Report** _**(continued)**_
## **Year Ended 31 March 2026**
Our work contributes to reducing poverty, alleviating distress, and preventing crisis escalation. We support people facing a range of challenges including financial hardship, homelessness, domestic abuse, poor health, and social isolation. By working collaboratively with professionals and the community, we ensure effective, compassionate responses that improve lives and strengthen community resilience, meeting the legal requirement of public benefit under charity law.
## **Achievements and Performance**
32,132 individuals have been supported across our projects and services in 2025/2026. 1,524 packs of support have been distributed via our projects. 352 children have been supported with school uniform, and 418 children were provided with Christmas toys from our toy appeal. We provided 52 homeless adults with tents and sleeping bags where we were unable to find them emergency accommodation.
6,362 people have used our community cafe since it opened in November 2025, accessing food at affordable prices. 153 individuals have attended our activity sessions accruing 1,923 attendances. 20,340 adults and children have attended our hub (previous hub during April until July 2025 - new hub from September until March 2026).
Data has revealed that 78% of those seeking support have experienced an improvement in their mental health and wellbeing. 91% of those surveyed told us that their lives have improved as a result of the support received from Lifeline demonstrating the positive impact Lifeline has on those from our area of benefit.
**3**
## **Lifeline Community Action**
**Trustees' Annual Report** _**(continued)**_
## **Year Ended 31 March 2026**
## **Financial Review**
For the year ended 31 March 2026, income totalled £741,689 (2025: £998,693), revenue expenditure was £552,703 (2025: £317,805), and capital expenditure of £190,305 was incurred on property improvements. The year reflected continued investment in the Community Hub alongside the delivery of core charitable activities, with the charity moving from the redevelopment phase towards operating and embedding services from the new facility.
Although total income reduced compared with the prior year, the previous year included significant capital grant funding connected with the Hub redevelopment. In 2025/26, income continued to support both service delivery and the final stages of establishing the Hub as a community asset.
## **Principal Funding Sources**
Major funding was received from the National Lottery Reaching Communities fund, including a further three-year grant awarded in February 2026. Other support was received from Garfield Weston, Livin, Point North, Awards for All, Woodham Christian Centre, Believe Housing, local AAPs, Darlington Building Society, Homesite CIC, Banks Foundation, Sir John Knott Trust, Great Aycliffe Town Council, Hadrian Trust and Rothley Trust. The Trustees are grateful for this support, which has enabled the charity to maintain and develop services for local people, meet growing demand and strengthen provision from the Lifeline Community Hub.
The charity also generated unrestricted income through donations, fundraising, room hire, the charity shop and café/kitchen activity. These income streams are important in supporting core costs and helping the charity respond flexibly to local need.
## **Investment Policy**
Any funds not required for day to day running of the charity are placed in a higher interest deposit account
## **Reserves Policy**
The Trustees maintain reserves to protect the charity against unexpected reductions in income, unforeseen costs, funding delays and emerging community need, while ensuring resources remain available to support planned service delivery. This is particularly important as the charity now operates a larger community facility with increased running costs and wider service commitments.
At 31 March 2026, unrestricted general reserves were £240,898.
These have been designated as follows:
- £150,000 for financial resilience and orderly wind-down if required.
- £26,309 for the final Community Hub redevelopment contractual payment.
- £15,000 towards a future delivery vehicle.
- £15,000 for Community Hub maintenance, repairs and unforeseen costs.
After designations, free reserves are approximately £34,589 for day-to-day operations and short-term fluctuations.
The Trustees review reserves annually and consider the current level appropriate for the charity's activities, commitments and future plans. The reserve position provides a reasonable level of protection while allowing the charity to continue investing in services, staffing and facilities for the benefit of the community.
**4**
## **Lifeline Community Action**
**Trustees' Annual Report** _**(continued)**_
## **Year Ended 31 March 2026**
## **Plans for Future Periods**
The Trustees' priority is to develop services within the Lifeline Community Hub while maintaining sustainability. Annual revenue costs are expected to exceed £410,000, so careful financial planning remains essential. Plans include recruiting a Finance Officer and Delivery Driver, increasing cleaning hours, opening the Community Pantry, developing new community activities, improving digital systems, and strengthening community safety and engagement through local partnerships. The charity will continue to seek a balanced mix of grant funding, donations and earned income to support this growth and reduce reliance on any single source of funding.
**5**
## **Lifeline Community Action**
**Trustees' Annual Report** _**(continued)**_
## **Year Ended 31 March 2026**
## **Structure, Governance and Management**
## **Governing Document**
The organisation is a Charitable Incorporated Organisation established under a constitution which established the objects and powers of the organisation.
## **Recruitment and Appointment of Management Committee**
The Trustees of the CIO are charity trustees for the purposes of charity law and under the charity's constitution are known as members of the Management Committee. Under the requirements of the constitution the members of the Management Committee are elected to serve for a period of three years after which they must be re-elected at the next Annual General Meeting.
All members of the Trustee Board give their time voluntarily and received no benefits from the charity.
The Trustee Board seeks to ensure that the needs of our service users are considered, and the Board is representative of the community it serves. The Trustee Board is made up of six Trustees. LCA would like to enhance the skills and experience of the board and so are searching for people who would be willing to become Trustees and use their own experience to assist the charity.
## **Trustee Induction and Training**
Trustee Induction is covered fully in the office manual. Trustees are expected to read all the recommended information suggested in the induction materials and provided by the Charity Commission (links given in induction material).
## **Risk Management**
The Trustee Board has set up a system to review the major risks to which the charity is exposed. A risk register will be established which will be updated at least annually. Where appropriate, systems or The Trustee Board has set up a system to review the major risks to which the charity is exposed. A risk register will be established which will be updated at least annually. Where appropriate, systems or procedures will be established to mitigate the risks the charity faces. The outcome of this assessment will be included in our Business Plan.
Procedures are in place to ensure compliance with health and safety of staff, volunteers, service users and visitors. These procedures are periodically reviewed to ensure that they continue to meet the needs of the charity. Due to the move to a new building, there is a need for a total review of the Office Manual which will take place in the coming year and bring all policies and procedures up to date.
## **Organisational Structure**
In the last 12 months the charity was overseen by the Chief Operating Officer who reported to the 6 Trustees and is the operational lead. The charity also employs a Chief Strategic Officer who manages all the funding applications, monitoring and returns. The CSO also drafts and reviews all governance documents, policies and procedures and submits them to the Trustees. They also act as the charity's secretary.
Eddy Adam was coopted onto the Board as a trustee bringing the total number of trustees to 6.
The charity financial processes are carried out by the Chief Operating Officer supported by a member of the Jane Ascroft Accountancy team on a quarterly basis. The COO reports quarterly management accounts to the Treasurer who in turn reports to the Trustees. The charity employs eight other paid staff who are responsible for administration and stock control/ distribution and running the Community Hub. We employ a Community Safety & Engagement Coordinator, Admin and Reception Supervisor, Senior Cook, Assistant Cook, Hub Supervisor, Wellbeing & Pantry Coordinator, Cafe & Retail Assistant and Cafe & Retail Coordinator.
**6**
## **Lifeline Community Action**
## **Trustees' Annual Report** _**(continued)**_
## **Year Ended 31 March 2026**
We now have 15 volunteers supporting the paid staff team across the projects and services and are looking to increase this number to 20 in the next financial year.
We are also providing placements for HIYED service users. HIYED is an employability CIC that support people with additional needs into work by gaining experience in real life workplaces.
## **Reference and Administrative Details**
**Registered charity name** Lifeline Community Action **Charity registration number** 1168614 **Principal office** 30 Beveridge Way Newton Aycliffe County Durham DL5 4DS **The Trustees** Mrs A White (Chair) Mr P Hawkins Mrs J Donald (Treasurer) Mr E Adam Ms A M Smith Mr P Howell **Independent Examiner** Jane Ascroft FCA MA (Cantab) Enterprise House Harmire Enterprise Park Barnard Castle County Durham DL12 8XT
The trustees' annual report was approved on 10[th] June 2026 and signed on behalf of the board of trustees by:
Mrs A White (Chair) Trustee
**7**
## **Lifeline Community Action**
## **Independent Examiner's Report to the Trustees of Lifeline Community Action**
## **Year Ended 31 March 2026**
I report to the trustees on my examination of the financial statements of Lifeline Community Action ('the charity') for the year ended 31 March 2026.
## **Responsibilities and Basis of Report**
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent Examiner's Statement**
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or
2. the financial statements do not accord with those records; or
3. the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Jane Ascroft FCA MA (Cantab) Independent Examiner
Enterprise House Harmire Enterprise Park Barnard Castle County Durham DL12 8XT
**8**
## **Lifeline Community Action**
## **Statement of Financial Activities**
## **Year Ended 31 March 2026**
||||**2026**||2025|
|---|---|---|---|---|---|
|||Unrestricted|Restricted|||
|||funds|funds|**Total funds**|Total funds|
||**Note**|**£**|**£**|**£**|£|
|**Income and endowments**||||||
|Donations and legacies|**4**|39,739|673,379|713,118|997,740|
|Other trading activities|**5**|27,319|–|27,319|–|
|Investment income|**6**|1,252|–|1,252|953|
|||`────────`|`─────────`|`─────────`|`─────────`|
|**Total income**||68,310|673,379|741,689|998,693|
|||`════════`|`═════════`|`═════════`|`═════════`|
|**Expenditure**||||||
|Expenditure on charitable activities|**7,8**|144,507|408,196|552,703|317,805|
|||`─────────`|`─────────`|`─────────`|`─────────`|
|**Total expenditure**||144,507|408,196|552,703|317,805|
|||`═════════`|`═════════`|`═════════`|`═════════`|
|||`─────────`|`─────────`|`─────────`|`─────────`|
|**Net income**||(76,197)|265,183|188,986|680,888|
|||`═════════`|`═════════`|`═════════`|`═════════`|
|Transfers between funds||177,961|(177,961)|–|–|
|||`─────────`|`─────────`|`─────────`|`─────────`|
|**Net movement in funds**||101,764|87,222|188,986|680,888|
|**Reconciliation of funds**||||||
|Total funds brought forward||853,913|48,230|902,143|221,255|
|||`─────────`|`─────────`|`────────────`|`─────────`|
|**Total funds carried forward**||955,677|135,452|1,091,129|902,143|
|||`═════════`|`═════════`|`════════════`|`═════════`|
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 22 form part of these financial statements.**
**9**
## **Lifeline Community Action**
## **Statement of Financial Position**
## **31 March 2026**
|||**2026**|2025|
|---|---|---|---|
||||**_(restated)_**|
||**Note**|**£**|£|
|**Fixed Assets**||||
|Tangible fixed assets|**14**|699,531|586,878|
|**Current Assets**||||
|Debtors|**15**|11,823|129,984|
|Cash at bank and in hand||380,846|252,266|
|||`─────────`|`─────────`|
|||392,669|382,250|
|**Creditors: amounts falling due within one year**|**16**|1,071|66,985|
|||`─────────`|`─────────`|
|**Net Current Assets**||391,598|315,265|
|||`────────────`|`─────────`|
|**Total Assets Less Current Liabilities**||1,091,129|902,143|
|||`────────────`|`─────────`|
|**Net Assets**||1,091,129|902,143|
|||`════════════`|`═════════`|
|**Funds of the Charity**||||
|Restricted funds||135,452|48,230|
|Unrestricted funds||955,677|853,913|
|||`────────────`|`─────────`|
|**Total charity funds**|**18**|1,091,129
`════════════`|902,143
`═════════`|
These financial statements were approved by the board of trustees and authorised for issue on 10[th] June 2026, and are signed on behalf of the board by:
Mrs J Donald (Treasurer) Trustee
**The notes on pages 12 to 22 form part of these financial statements.**
**10**
## **Lifeline Community Action**
## **Statement of Cash Flows**
## **Year Ended 31 March 2026**
||**2026**|2025|
|---|---|---|
|||**_(restated)_**|
||**£**|£|
|**Cash Flows from Operating Activities**|||
|Net income|188,986|680,888|
|_Adjustments for:_|||
|Depreciation of tangible fixed assets|86,435|65,209|
|Other interest receivable and similar income|(1,252)|(953)|
|Accrued (income)/expenses|(7,338)|7,069|
|_Changes in:_|||
|Trade and other debtors|118,161|(120,302)|
|Trade and other creditors|(58,576)|55,738|
||`─────────`|`─────────`|
|Cash generated from operations|326,416|687,649|
|Interest received|1,252|953|
||`─────────`|`─────────`|
|Net cash from operating activities|327,668|688,602|
||`═════════`|`═════════`|
|**Cash Flows from Investing Activities**|||
|Purchase of tangible assets|(199,088)|(652,087)|
||`─────────`|`─────────`|
|Net cash used in investing activities|(199,088)|(652,087)|
||`═════════`|`═════════`|
|**Net Increase in Cash and Cash Equivalents**|128,580|36,515|
|**Cash and Cash Equivalents at Beginning of Year**|252,266|215,751|
||`─────────`|`─────────`|
|**Cash and Cash Equivalents at End of Year**|380,846|252,266|
||`═════════`|`═════════`|
**The notes on pages 12 to 22 form part of these financial statements.**
**11**
## **Lifeline Community Action**
## **Notes to the Financial Statements**
## **Year Ended 31 March 2026**
## **1. General Information**
The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is 30 Beveridge Way, Newton Aycliffe, County Durham, DL5 4DS.
## **2. Statement of Compliance**
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.
## **3. Accounting Policies**
## **Basis of Preparation**
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
## **Going Concern**
There are no material uncertainties about the charity's ability to continue.
## **Judgements and Key Sources of Estimation Uncertainty**
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The trustees consider that there are no significant estimates or judgements affecting these financial statements.
## **Fund Accounting**
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular future project or committment.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
## **Income**
All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
**12**
## **Lifeline Community Action**
## **Notes to the Financial Statements** _**(continued)**_
## **Year Ended 31 March 2026**
## **3. Accounting Policies** _**(continued)**_
**Income** _**(continued)**_
- income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
## **Expenditure**
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
- expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
- other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apprortioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
## **Tangible Assets**
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
## **Depreciation**
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Equipment - 25% reducing balance Leasehold Improvements - 10% straight line
## **Impairment of Fixed Assets**
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.
**13**
## **Lifeline Community Action**
## **Notes to the Financial Statements** _**(continued)**_
## **Year Ended 31 March 2026**
## **3. Accounting Policies** _**(continued)**_
## **Financial Instruments**
The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
## **Defined Contribution Plans**
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.
## **Trade Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Accrued income and tax recoverable is included at the best estimate of the amounts receivable at the balance sheet date.
## **Cash at Bank and in Hand**
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **Trade Creditors**
Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.
## **Taxation**
The company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
**14**
## **Lifeline Community Action**
## **Notes to the Financial Statements** _**(continued)**_
## **Year Ended 31 March 2026**
## **4. Donations and Legacies**
||Unrestricted|Restricted|**Total Funds**|
|---|---|---|---|
||Funds|Funds|**2026**|
||£|£|**£**|
|**Donations**||||
|Donations|27,739|10,000|37,739|
|Woodham Christian Centre|12,000|–|12,000|
|**Grants**||||
|Point North (previously CDCF)|–|140,251|140,251|
|Livin Housing Ltd|–|28,000|28,000|
|National Lottery Community Fund|–|237,078|237,078|
|Rothley Trust|–|1,500|1,500|
|Daejan Holdings|–|200,000|200,000|
|GAMP|–|7,300|7,300|
|Garfield Weston|–|30,000|30,000|
|Believe Housing|–|4,000|4,000|
|Neighbourly Aid|–|250|250|
|Ministry of Housing|–|10,000|10,000|
|Other smaller grants|–|5,000|5,000|
||`────────`|`─────────`|`─────────`|
||39,739|673,379|713,118|
||`════════`|`═════════`|`═════════`|
||Unrestricted|Restricted|Total Funds|
||Funds|Funds|2025|
||||**_(restated)_**|
||£|£|£|
|**Donations**||||
|Donations|22,074|–|22,074|
|Woodham Christian Centre|12,000|–|12,000|
**15**
## **Lifeline Community Action**
## **Notes to the Financial Statements** _**(continued)**_
## **Year Ended 31 March 2026**
## **4. Donations and Legacies** _**(continued)**_
|||Unrestricted|Restricted|Total Funds|
|---|---|---|---|---|
|||Funds|Funds|2025|
|||||**_(restated)_**|
|||£|£|£|
|**Grants**|||||
|Point North (previously CDCF)||–|39,600|39,600|
|Livin Housing Ltd||–|53,610|53,610|
|National Lottery Community Fund||–|50,814|50,814|
|GAMP||–|2,494|2,494|
|Garfield Weston||–|20,000|20,000|
|Believe Housing||–|6,000|6,000|
|Durham County Council||–|2,793|2,793|
|3 Towns AAP||–|6,944|6,944|
|UKSPF||–|770,304|770,304|
|Spennymoor AAP||–|8,702|8,702|
|Neighbourly Aid||–|510|510|
|Ministry of Housing||–|–|–|
|Other smaller grants||1,895|–|1,895|
|||`────────`|`─────────`|`─────────`|
|||35,969|961,771|997,740|
|||`════════`|`═════════`|`═════════`|
|**Other Trading Activities**|||||
||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
||Funds|**2026**|Funds|2025|
|||||**_(restated)_**|
||£|**£**|£|£|
|Fundraising events|327|327|–|–|
|Charity Shop Income|15,255|15,255|–|–|
|Room Hire Income|2,313|2,313|–|–|
|Cafe/Kitchen Income|9,424|9,424|–|–|
||`────────`|`────────`|`────`|`────`|
||27,319|27,319|–|–|
||`════════`|`════════`|`════`|`════`|
|**Investment Income**|||||
||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
||Funds|**2026**|Funds|2025|
|||||**_(restated)_**|
||£|**£**|£|£|
|Bank interest receivable|1,252|1,252|953|953|
||`═══════`|`═══════`|`════`|`════`|
## **5. Other Trading Activities**
## **6. Investment Income**
**16**
## **Lifeline Community Action**
## **Notes to the Financial Statements** _**(continued)**_
## **Year Ended 31 March 2026**
## **7. Expenditure on Charitable Activities by Fund Type**
|||Unrestricted|Restricted|**Total Funds**|
|---|---|---|---|---|
|||Funds|Funds|**2026**|
|||£|£|**£**|
||Expenditure on charitable activities|144,507|408,196|552,703|
|||`═════════`|`═════════`|`═════════`|
|||Unrestricted|Restricted|Total Funds|
|||Funds|Funds|2025|
|||||**_(restated)_**|
|||£|£|£|
||Expenditure on charitable activities|69,393|248,412|317,805|
|||`════════`|`═════════`|`═════════`|
|**8.**|**Expenditure on Charitable Activities by Activity Type**||||
|||Activities|||
|||undertaken|**Total funds**|Total fund|
|||directly|**2026**|2025|
|||£|**£**|£|
||Expenditure on charitable activities|552,703|552,703|317,805|
|||`═════════`|`═════════`|`═════════`|
|**9.**|**Net Income**||||
||Net income is stated after charging/(crediting):||||
||||**2026**|2025|
|||||**_(restated)_**|
||||**£**|£|
||Depreciation of tangible fixed assets||86,435|65,209|
||||`════════`|`════════`|
|**10.**|**Independent Examination Fees**||||
||||**2026**|2025|
|||||**_(restated)_**|
||||**£**|£|
||Fees payable to the independent examiner for:||||
||Independent examination of the financial statements||720|720|
||||`════`|`════`|
|**11.**|**Staff Costs**||||
||The total staff costs and employee benefits for the reporting period are analysed as|||follows:|
||||**2026**|2025|
|||||**_(restated)_**|
||||**£**|£|
||Wages and salaries||155,026|143,329|
||Social security costs||7,084|11,236|
||Employer contributions to pension plans||2,895|3,036|
||||`─────────`|`─────────`|
||||165,005|157,601|
||||`═════════`|`═════════`|
**17**
## **Lifeline Community Action**
## **Notes to the Financial Statements** _**(continued)**_
## **Year Ended 31 March 2026**
## **11. Staff Costs** _**(continued)**_
The average head count of employees during the year was 12 (2025: 7). The average number of full-time equivalent employees during the year is analysed as follows:
**2026** 2025 **No.** No. Number of staff 12 7 `════ ════`
No employee received employee benefits of more than £60,000 during the year (2025: Nil).
## **12. Trustee Remuneration and Expenses**
Trustees have received neither remuneration nor expenses in the current or previous year.
## **13. Transfers Between Funds**
During the year £177,961 was transferred from restricted to unrestricted funds. £179,394 represented capital assets purchased using restricted funds and the remaining £1,433 represented various smaller transfers to and from reserves to cover overspends on projects and contribution to core costs from projects.
## **14. Tangible Fixed Assets**
||||Leasehold||
|---|---|---|---|---|
|||Equipment|Improvements|**Total**|
|||£|£|**£**|
||**Cost**||||
||At 1 April 2025 (as restated)|–|652,087|652,087|
||Additions|8,783|190,305|199,088|
|||`───────`|
`─────────`|`─────────`|
||**At 31 March 2026**|8,783|842,392|851,175|
|||`═══════`|
`═════════`|`═════════`|
||**Depreciation**||||
||At 1 April 2025|–|65,209|65,209|
||Charge for the year|2,196|84,239|86,435|
|||`───────`|
`─────────`|`─────────`|
||**At 31 March 2026**|2,196|149,448|151,644|
|||`═══════`|
`═════════`|`═════════`|
||**Carrying amount**||||
||**At 31 March 2026**|6,587|692,944|699,531|
|||`═══════`|
`═════════`|`═════════`|
||At 31 March 2025|–|586,878|586,878|
|||`═══════`|
`═════════`|`═════════`|
|**15.**|**Debtors**||||
||||**2026**|2025|
|||||**_(restated)_**|
||||**£**|£|
||VAT debtor||–|129,984|
||Other debtors||11,823|–|
||||`────────`|`─────────`|
||||11,823|129,984|
||||`════════`|`═════════`|
**18**
## **Lifeline Community Action**
## **Notes to the Financial Statements** _**(continued)**_
## **Year Ended 31 March 2026**
## **16. Creditors: amounts falling due within one year**
||**2026**|2025|
|---|---|---|
|||**_(restated)_**|
||**£**|£|
|Trade creditors|(219)|–|
|Accruals|720|8,058|
|Pension creditor|570|504|
|Deferred income|–|46,423|
|Other creditors|–|12,000|
||`───────`|`────────`|
||1,071|66,985|
||`═══════`|`════════`|
## **17. Pensions and Other Post Retirement Benefits**
## **Defined contribution plans**
The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £2,895 (2025: £3,036).
## **18. Analysis of Charitable Funds**
## **Unrestricted funds**
|**Unrestricted funds**||||||
|---|---|---|---|---|---|
||At|||**At 31 March**||
||1 April 2025|Income|Expenditure|Transfers|**2026**|
||£|£|£|£|£|
|General funds|267,035|43,631|(47,424)|(22,344)|
240,898|
|Capital fund|586,878|–|(86,435)|200,305|700,748|
|Peoples Boutique|–|15,255|(621)|–|14,634|
|Peoples Cafe|–|9,424|(10,027)|–|(603)|
||`─────────`|`────────`|`─────────`|`─────────`|`─────────`|
||853,913|68,310|(144,507)|177,961|955,677|
||`═════════`|`════════`|`═════════`|`═════════`|`═════════`|
||At||||At 31 March|
||1 April 2024|Income|Expenditure|Transfers|2025|
||£|£|£|£|£|
|General funds|101,310|36,922|(4,184)|132,987|267,035|
|Capital fund|–|–|(65,209)|652,087|586,878|
||`─────────`|`────────`|`────────`|`─────────`|`─────────`|
||101,310|36,922|(69,393)|785,074|853,913|
||`═════════`|`════════`|`════════`|`═════════`|`═════════`|
**19**
## **Lifeline Community Action**
## **Notes to the Financial Statements** _**(continued)**_
## **Year Ended 31 March 2026**
## **18. Analysis of Charitable Funds** _**(continued)**_
## **Restricted funds**
|**Restricted funds**||||||
|---|---|---|---|---|---|
||At||||**At 31 March**|
||1 April 2025|Income|Expenditure|Transfers|**2026**|
||£|£|£|£|£|
|Awards For All 2024|15,389|–|(15,052)|(337)|
–|
|Garfield Weston 2026|–|30,000|–|–|30,000|
|National Lottery -||||||
|Reaching Communities|7,045|78,246|(85,487)|196|–|
|Garfield Weston 2023|9,084|–|(9,084)|–|–|
|Believe Housing 3|3,507|2,000|(5,689)|182|–|
|CDCF - Darlington||||||
|Building Society|4,705|–|(4,708)|3|–|
|3 Towns AAP|3,926|–|(3,830)|(96)|
–|
|GAMP - Recycle &||||||
|Re-use|139|7,300|(7,600)|161|–|
|UKSPF|(5,246)|–|(672)|5,918|–|
|Point North - Health &||||||
|Wellbeing Project|608|–|(609)|1|–|
|Point North - Household||||||
|Support Fund|–|50,500|(50,500)|–|–|
|Point North - Winter||||||
|Warmth|1,062|–|(1,063)|1|–|
|Spennymoor AAP 2025|8,011|–|(7,072)|(939)|
–|
|Daejan - Landlord||||||
|Contribution|–|200,000|(20,606)|(179,394)|
–|
|Believe Housing 4|–|2,000|(330)|–|1,670|
|Great Aycliffe Town||||||
|Council|–|2,500|(3,086)|586|–|
|Homesite Group CIC|–|10,000|(10,000)|–|–|
|Livin IT|–|8,000|(7,505)|(495)|
–|
|Livin 7|–|10,000|(9,959)|(41)|
–|
|MHCLG Common||||||
|Ground|–|10,000|–|–|10,000|
|National Lottery 2026|–|60,832|(12,570)|–|48,262|
|National Lottery Captial||||||
|fund|–|98,000|(92,303)|–|5,697|
|Point North General||||||
|Grant|–|7,000|–|–|7,000|
|Point North Mayors||||||
|Fund|–|9,931|(385)|–|9,546|
|Point North Thriving||||||
|Together|–|22,500|(2,334)|(800)|
19,366|
|Point North Trailblazer|–|50,320|(47,230)|(3,090)|
–|
|James Knott Trust|–|10,000|(8,340)|–|1,660|
|Other Small Grants|–|4,250|(2,182)|183|2,251|
||`────────`|`─────────`|`─────────`|`─────────`|`─────────`|
||48,230|673,379|(408,196)|(177,961)|
135,452|
||`════════`|`═════════`|`═════════`|`═════════`|`═════════`|
**20**
## **Lifeline Community Action**
## **Notes to the Financial Statements** _**(continued)**_
## **Year Ended 31 March 2026**
## **18. Analysis of Charitable Funds** _**(continued)**_
||At||||At 31 March|
|---|---|---|---|---|---|
||1 April 2024|Income|Expenditure|Transfers|2025|
||£|£|£|£|£|
|Awards For All 2024|15,916|–|(527)|–|15,389|
|4 Together 2023|680|–|(677)|(3)|
–|
|Garfield Weston 2026|4,727|–|–|(4,727)|
–|
|National Lottery -||||||
|Reaching Communities|44,371|50,814|(92,866)|4,726|7,045|
|CDCF - General Grant|5,000|–|(5,000)|–|–|
|GAMP - Community Hub||||||
|2|7,256|–|(7,043)|(213)|
–|
|GAMP - Older Persons|7,016|–|(6,858)|(158)|
–|
|Garfield Weston 2023|12,249|20,000|(23,165)|–|9,084|
|Livin - Have A Go Fund|400|–|(404)|4|–|
|Livin - Feasability Study|5,000|–|–|(5,000)|
–|
|Livin - Development||||||
|Worker|9,327|40,110|(50,519)|1,082|–|
|DCC Spennymoor AAP|6,756|–|(6,752)|(4)|
–|
|Believe Housing 2|1,247|2,000|(2,495)|(752)|
–|
|Believe Housing 3|–|4,000|(493)|–|3,507|
|CDCF - Household||||||
|Support Fund 2|–|16,500|(14,100)|(2,400)|
–|
|CDCF - Darlington||||||
|Building Society|–|5,000|(295)|–|4,705|
|3 Towns AAP|–|6,944|(2,618)|(400)|
3,926|
|DCC Fun & Food|–|2,793|(2,090)|(703)|
–|
|GAMP - Recycle &||||||
|Re-use|–|2,494|(2,355)|–|139|
|Livin - Winter Packs|–|3,500|(3,389)|(111)|
–|
|Livin 6|–|10,000|(10,035)|35|–|
|Neighbourly Aid|–|280|(280)|–|–|
|Neighbourly Aid 2|–|230|(230)|–|–|
|UKSPF|–|770,304|–|(775,550)|
(5,246)|
|Point North - Health &||||||
|Wellbeing Project|–|1,100|(492)|–|608|
|Point North - Household||||||
|Support Fund|–|15,000|(14,100)|(900)|
–|
|Point North - Winter||||||
|Warmth|–|2,000|(938)|–|1,062|
|Spennymoor AAP 2025|–|8,702|(691)|–|8,011|
||`─────────`|`─────────`|`─────────`|`─────────`|`────────`|
||119,945|961,771|(248,412)|(785,074)|
48,230|
||`═════════`|`═════════`|`═════════`|`═════════`|`════════`|
**21**
## **Lifeline Community Action**
## **Notes to the Financial Statements** _**(continued)**_
## **Year Ended 31 March 2026**
## **19. Analysis of Net Assets Between Funds**
||Unrestricted|Restricted|**Total Funds**|
|---|---|---|---|
||Funds|Funds|**2026**|
||£|£|**£**|
|Tangible fixed assets|699,531|–|699,531|
|Current assets|257,217|135,452|392,669|
|Creditors less than 1 year|(1,071)|–|(1,071)|
||`─────────`|`─────────`|`────────────`|
|**Net assets**|955,677|135,452|1,091,129|
||`═════════`|`═════════`|`════════════`|
||Unrestricted|Restricted|Total Funds|
||Funds|Funds|2025|
||£|£|£|
|Tangible fixed assets|703,864|–|703,864|
|Current assets|204,036|48,230|252,266|
|Creditors less than 1 year|(66,985)|–|(66,985)|
||`─────────`|`────────`|`─────────`|
|**Net assets**|840,915|48,230|889,145|
||`═════════`|`════════`|`═════════`|
## **20. Analysis of Changes in Net Debt**
||||||**At**|
|---|---|---|---|---|---|
||At|1|Apr 2025|Cash flows|**31 Mar 2026**|
||||£|£|**£**|
|Cash at bank and in hand|||252,266|128,580|380,846|
||||`═════════`|`═════════`|
`═════════`|
## **21. Prior Year Adjustment**
A prior year adjustment has been made to reduce the cost of the property by the amount of input VAT that has subsequently been recovered on the costs.
**22**
**Lifeline Community Action**
## **Management Information**
**Year Ended 31 March 2026**
**The Following Pages Do Not Form Part of the Financial Statements.**
**23**
## **Lifeline Community Action**
## **Detailed Statement of Financial Activities**
## **Year Ended 31 March 2026**
||**2026**|2025|
|---|---|---|
||**£**|£|
|**Income and endowments**|||
|**Donations and legacies**|||
|Donations|37,739|22,074|
|Woodham Christian Centre|12,000|12,000|
|Point North (previously CDCF)|140,251|39,600|
|Livin Housing Ltd|18,000|53,610|
|James Knott Trust|10,000|–|
|National Lottery Community Fund|237,078|50,814|
|Rothley Trust|1,500|–|
|Daejan Holdings|200,000|–|
|GAMP|7,300|2,494|
|Garfield Weston|30,000|20,000|
|Believe Housing|4,000|6,000|
|Durham County Council|–|2,793|
|3 Towns AAP|–|6,944|
|UKSPF|–|770,304|
|Spennymoor AAP|–|8,702|
|Neighbourly Aid|250|510|
|Ministry of Housing|10,000|–|
|Other smaller grants|5,000|1,895|
||`─────────`|`─────────`|
||713,118|997,740|
||`─────────`|`─────────`|
|**Other trading activities**|||
|Fundraising events|327|–|
|Charity Shop Income|15,255|–|
|Room Hire Income|2,313|–|
|Cafe/Kitchen Income|9,424|–|
||`────────`|`────`|
||27,319|–|
||`────────`|`────`|
|**Investment income**|||
|Bank interest receivable|1,252|953|
||`───────`|`────`|
||`─────────`|`─────────`|
|**Total income**|741,689|998,693|
||`═════════`|`═════════`|
**24**
## **Lifeline Community Action**
## **Detailed Statement of Financial Activities** _**(continued)**_
## **Year Ended 31 March 2026**
||**2026**|2025|
|---|---|---|
||**£**|£|
|**Expenditure**|||
|Wages|155,026|143,329|
|Employer's NIC|7,084|11,236|
|Pension costs|2,895|3,036|
|Room hire|4,222|2,597|
|Utilities|15,210|3,732|
|Insurance|1,744|1,289|
|Other premises costs|109,167|8,396|
|Travel and training costs|2,935|1,701|
|Legal & professional fees|9,454|2,048|
|Irrecoverable VAT|40,897|–|
|Office costs|15,910|7,605|
|Depreciation|86,435|65,209|
|Beneficiary costs|101,564|67,618|
|Other costs|160|9|
||`─────────`|`─────────`|
|**Total expenditure**|552,703|317,805|
||`═════════`|`═════════`|
||`─────────`|`─────────`|
|**Net income**|188,986|680,888|
||`═════════`|`═════════`|
**25**