2023-01-01-accounts - Difference

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DIFFERENCE CIO

ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2022

Charity Number 1170789

DIFFERENCE CIO

ANNUAL REPORT AND FINANCIAL STATEMENTS

For the year ended 31 December 2022

Contents	Page
Trustees annual report	1 to 5
Independent examiners report	6
Statement of Financial Activities	7
Balance sheet	8
Notes to the financial statements	9 to 16

DIFFERENCE CIO

TRUSTEES ANNUAL REPORT

For the year ended 31 December 2022

The trustees are pleased to present their annual report together with the financial statements of the charity for the period ended 31 December 2022, which are also prepared to meet the requirements for a Directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective October 2019).

Chair’s Report

This has been another excellent year for Difference. This year marks the first year of implementing delivering difference across the North East, funded by the National Lottery Community Fund, until 2024.

We have won our first prize of North East Charity Outstanding Contribution to Social Change Award at North East Charity Awards hosted by VONNE. We took this award to be a ratification of the work that we do across the region from our peers, and we thank them for that.

We have included hour annual report to the National Lottery, which exists as a short video which we invite people to watch:

https://gbr01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv%3D8 CdJmROLm8I&data=05%7C01%7Clynn.stoddart%40tnlcommunityfund.org.uk%7C32335d14f7654e2720e408 da68cf1430%7C5d89e35eee9447b494085ccf4e249aae%7C0%7C0%7C637937535845539575%7CUnknown %7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C30 00%7C%7C%7C&sdata=J%2F4kTESBkvX03g6i5zsnxAlKU6vzutbeDK9HBKIFhjk%3D&reserved=0

I would like to thank our Trustees, volunteers, staff, members and partners for their valued contributions over the year. I would also like to thank the National Lottery Community Fund for their continued support, which makes our work possible.

Caroline MacDonald

Chair – Difference North East

For the year ended 31 December 2022

DIFFERENCE CIO

TRUSTEES ANNUAL REPORT

Objectives and Activities

Difference is a unifying disability rights organisation that aims to represent disabled people in the North East of England and works to bring about significant and lasting social change. We are the first disability rights organisation dedicated solely to campaigning for disability equality covering the North East since the 1990s saw the closure of Disability Action North East. To achieve our objectives of increasing equality and tackling discrimination, we will:

Raise awareness of disability discrimination and influence public opinion and policy.
Represent and speak out about the needs and concerns of disabled people.
Use research as a tool to raise issues and influence change.
Mobilise disabled people to collectively advocate.

Difference grounds its ideas within the social and affirmation models of disability. It identifies disability as the personal experience of physical and social barriers, which exclude people with impairments from full participation in ordinary community life. The affirmation model takes a view of disability and impairment that encompasses positive social identities. It identifies impairment as a characteristic of human difference to be expected and respected on its own terms.

Achievements and Performance

We have produced a video to reflect our achievements on performances this year and we hope it is a more accessible format for interested parties.

Plans for Future Periods

Our plans for the future include developing a disabled climate change action forum, advancing our employment related work and other campaigning objectives which build on our members priorities identified at our launch event, namely:

Improving the voice, influence and participation of disabled people.
Increasing employment opportunities for disabled people.
Improve public awareness through education and training.
Improve access to physical and digital environments.
Continue to monitor the impact of COVID-19 and campaign for disabled people’s rights.

For the year ended 31 December 2022

DIFFERENCE CIO

TRUSTEES ANNUAL REPORT

Reference and administrative details of the charity, its trustees and advisors

Charity Name Difference CIO 1170789 Registered Charity Number 33 Forest Avenue Operational address Newcastle Upon Tyne NE12 9AH Trustees Caroline McDonald Chair David Barker Treasurer Gillian Lathan Secretary Nicky Erevik Valerie Milnes Independent Lilian Hetherington FCA Examiner Connected Voice Business Services Ltd One Strawberry Lane Newcastle upon Tyne NE1 4BX

Structure, Governance and Management

Governing documents

Charitable Incorporated Organisation - Foundation Model - whereby the only voting members are the charity Trustees. We have adopted the Charity Commissions Model Constitution to ensure we comply with the Charities Act 2011 (the 2011 Act) and the General Regulations. This helps us to ensure we:

Reflect recommended best practice; and
Are legally compliant

Appointment of Trustees

Trustees are appointed for their individual knowledge, experience and skills that are considered essential to ensure the charity’s effective administration and its continued sustainability, growth and development. Trustees are appointed by the Board of Trustees in a properly convened meeting. Trustees are also screened using a needs and skillsets assessment. This approach enables us to:

Ensure we have the right skills mix on the Board to meet the administrative needs of the charity
Ensure we do have a range of Trustees from diverse professional backgrounds to build knowledge and skills
Mitigate any potential risks or threats to the charity, as far as possible; and
Reduce, as far as is possible, the potential for any conflicts of interest with each Trustee and their existing professional occupations.

For the year ended 31 December 2022

DIFFERENCE CIO

TRUSTEES ANNUAL REPORT

Organisation

The Trustees meet each quarter and deal with the administration of the charity encompassing the strategic vision, financial accountability and risk management. The operational management of the organisation is undertaken by the paid staff team.

Risk management

The Trustees have conducted a review of the major risks to which the charity is exposed, and systems have been established to mitigate those risks including the implementation of procedures for authorisation of all transactions and projects and for ensuring the consistent quality of the delivery of all operational aspects of the charitable company. These procedures are periodically reviewed to ensure that they still meet the needs of the charity.

Statement on Public Benefit

The charity carries out a wide range of activities in pursuance of its charitable aims. The Trustees consider that these activities, summarised above, provide benefit both to those who directly receive services, and the wider community in the North East of England. The trustees confirm that they have complied with the duty in section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission.

DIFFERENCE CIO

TRUSTEES ANNUAL REPORT

For the year ended 31 December 2022

Financial Review

Difference CIO is primarily funded by grants. The total income for the year was £101,394 (2021: £67,892). This income is allocated across respective funds on the Statement of Financial Activities in accordance with the Statement of Recommended Practice.

The Statement of Financial Activities for the year ended 31 December 2022, shows a net surplus across all funds of £25,022 (2021: £1,317).

The Balance Sheet at 31 December 2022 shows total fund carried forward of £42,830 (2021: £17,808) of which there are £21,593 restricted funds (2021: £10,814).

Reserve policy

Difference CIO has established a policy whereby the unrestricted funds not invested in fixed assets held by the charity should be between three and six months of annual expenditure. At 31 December 2022 the free reserves are currently £21,237 (2021: £6,994l) fell short of this target level, the trustees are aware of this and will be building up reserves with planned operating surpluses.

Statement of Trustee Responsibilities

The charity trustees are responsible for preparing a trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The charity trustees are required to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and of incoming resources and application of resources. In preparing financial statements, the trustees are required to:

Select suitable accounting policies and apply them consistently;
Observe the methods and principles in the Charities SORP;
Make judgements and estimates that are reasonable and prudent;
State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Trustees on: 23.10.23 and signed on their behalf by:

Caroline McDonald Chair

DIFFERENCE CIO

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES

For the year ended 31 December 2022

I report on the financial statements of Difference CIO for the year ended 31 December 2022, which are set out on pages 7 to 16.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 ("the Charities Act) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

h examine the accounts under section 145 of the Charities Act,
h to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act), and
h to state whether particular matters have come to my attention.

Basis of independent examiner's statement

My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.

Independent examiner's statement

In connection with my examination, no material matters have come to my attention which gives me cause to believe that in, any material respect:

h the accounting records were not kept in accordance with section 130 of the Charities Act; or
h the accounts did not accord with the accounting records; or
h the accounts did 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 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.

Lilian Hetherington FCA Connected Voice Business Services One Strawberry Lane Newcastle upon Tyne NE1 4BX

Date: 23.10.23

DIFFERENCE CIO

STATEMENT OF FINANCIAL ACTIVITIES

For the year ended 31 December 2022

6 Other trading activities 7 Expenditure on: 8 Operation of the charity *Total expenditure* *Net income/(expenditure) and net* *movement of funds* Charitable activities *Total income* Income from: Charitable activities Grants and contracts Notes *Total funds carried forward* Reconciliation of funds Total funds brought forward	Unrestricted Funds £ 14,640 4,670 19,310 5,067 5,067 14,243 6,994 21,237	Restricted Funds £ 82,084 - 82,084 71,305 71,305 10,779 10,814 21,593	Total 2022 £ 96,724 4,670 101,394 76,372 76,372 25,022 17,808 42,830	Total 2021 £ 64,803 3,089 67,892 66,575 66,575 1,317 16,491 17,808

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 9 to 16 form an integral part of these financial statements.

Charity Number 1170789

DIFFERENCE CIO

BALANCE SHEET

As at 31 December 2022

Fixed assets Tangible assets 15 *Total fixed assets* Current assets Debtors 16 Cash at bank and in hand 17 *Total current assets* Creditors:amounts falling due within one year 18 *Net current assets* *Total net assets or liabilities* Funds of the charity Unrestricted income funds Restricted income funds *Total funds* Notes	£ 875 45,215 46,090 ( 3,996 )	Total 2022 £ 736 736 42,094 42,830 21,237 21,593 42,830	£ 1,128 16,138 17,266 ( 804 )	Total 2021 £ 1,346 1,346 16,462 17,808 6,994 10,814 17,808

The notes on pages 9 to 16 form an integral part of these financial statements.

These financial statements were approved by the Board on:

and are signed on its behalf by:

Caroline McDonald

Chair

DIFFERENCE CIO

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2022

1 Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

2 Basis of accounting

2.1 Basis of preparation

These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective October 2019) – Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

Difference CIO meets the definition of a public benefit entity under FRS 102.

2.2 Preparation of the accounts on a going concern basis

The charity reported total unrestricted funds at the year end of £21,237.

The trustees are of the view that the immediate future of the charity for the next 12 months is secure and that on this basis the charity is a going concern

3 Income

3.1 Recognition of income

Income is recognised when the charity has entitlement to the resources, any performance conditions attached to the item(s) of income have been met, it is more likely than not that the resources will be received and the monetary value can be measured with sufficient reliability

3.2 Offsetting

There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by FRS102 SORP or FRS102.

3.3 Grants and donations

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of the provision of a specified service is deferred until the criteria of income recognition are met.

3.4 Donated goods and services

Donated goods are measured at fair value (the amount for which the asset could be exchanged) unless impractical to do so.

Donated services and facilities are included in the SoFA when received at the value of the gift to the charity provided that the value of the gift can be measured reliably. Donated services and facilities that are consumed immediately are recognised as income with the equivalent amount recognised as an expense under the appropriate heading in the SoFA.

DIFFERENCE CIO

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2022

3.5 Volunteer help

The value of volunteer help received is not included in the accounts but is described in the trustees' annual report.

3.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

3.7 Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity.

4 Expenditure and liabilities

4.1 Liability recognition

Liabilities are recognised when it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty.

4.2 Charitable activities

Expenditure on charitable activities includes the costs of work and other activities undertaken to further the purposes of the charity and their associated support costs.

4.3 Governance and support costs

Support costs have been allocated between governance cost and other support. Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice.

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources.

4.4 Irrecoverable VAT

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

4.5 Creditors

The charity has creditors which are measured at settlement amounts less any trade discounts.

4.6 Provisions for liabilities

A liability is measured on recognition at its historical cost and then subsequently measured at the best estimate of the amount required to settle the obligation at the reporting date.

5 Assets

5.1 Tangible fixed assets for use by the charity

Individual fixed assets costing £250 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis, the charity does not currently have any tangible fixed assets:

Office and computer equipment

Straight line over four years

DIFFERENCE CIO

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2022

Analysis of income 6 Charitable activities Income from grants Other income 7 Other trading activities Training DWP Access to Work The National Lottery Employment allowance Consultancy	Unrestricted Funds £ - - 2,645 11,995 14,640 4,670 4,670	Restricted Funds £ 938 80,961 185 - 82,084 - -	Total 2022 £ 938 80,961 2,830 11,995 96,724 4,670 4,670	Total 2021 £ 2,125 55,684 4,250 2,744 64,803 3,089 3,089

Income was £101,394 (2021: £67,892) of which £19,310 was unrestricted or designated (2021: £10,083) and £82,084 was restricted (2021: £57,809)

Analysis of expenditure on charitable activities 8 Charitable activities Direct costs Support costs Other Staff travel Staff other costs Training Member events Subcontract project staff salaries Staff salaries Professional fees Depreciation *Expenditure carried forward* Website development Office expenses Insurance IT Telephone	Unrestricted Funds £ 2,980 - - - - - - - - - - 2,087 - - 5,067	Restricted Funds £ 54,748 6,000 232 240 125 4,290 - 816 696 1,224 580 1,071 133 610 70,765	Total 2022 £ 57,728 6,000 232 240 125 4,290 - 816 696 1,224 580 3,158 133 610 75,832	Total 2021 £ 42,960 10,446 - - 5,557 - 3,294 - 540 295 571 1,333 547 552 66,095

DIFFERENCE CIO

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2022

8	Charitable activities(continued) Governance costs *Expenditure brought forward* Independent examiner's fees for reporting on the accounts	Unrestricted Funds £ 5,067 - 5,067	Restricted Funds £ 70,765 540 71,305	Total 2022 £ 75,832 540 76,372	Total 2021 £ 66,095 480 66,575

Expenditure on charitable activities was £76,372 (2021: £66,575) of which £5,067 was unrestricted or designated (2021: £3,089) and £71,305 was restricted (2021: £63,486)

9 Fees for examination of the accounts

Independent examiner's fees for reporting on the accounts Other accountancy services paid to the examiner	2022 £ 540 1,071 1,611	2021 £ 480 483 963

10 Analysis of staff costs and the cost of key management personnel

Pension costs (defined contribution pension plan) Salaries and wages Social security costs	2022 £ 46,992 8,225 2,511 57,728	2021 £ 30,825 8,930 3,205 42,960

No employee received remuneration above £60,000 (2021: nil)

The key management personnel of the charity, comprise the trustees and the charity development consultant. The total employee benefits of the key management personnel of the charity were £33,460 (2021: £31,088).

11 Staff numbers

The average monthly head count was 2 employed staff (2021: 2) and 1 subcontracted staff (2021: 1) and the average monthly number of full-time equivalent employees during the year were as follows:

The parts of the charity in which the employees work Charitable activities	2022 Number 2.0 2.0	2021 Number 2.0 2.0

DIFFERENCE CIO

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2022

12 Transactions with trustees

None of the trustees have been paid any remuneration or received any other benefits from an employment with their charity or a related entity.

Trustees' expenses

No trustee expenses have been incurred in the year.

Transaction(s) with related parties

There have been no related party transactions in the reporting period.

13 Defined contribution pension scheme

The charitable company contributes to individual private staff pension schemes. The employer's pension costs represent contributions payable by the charity.

14 Corporation Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objectives.

15 Tangible fixed assets Cost Balance brought forward Additions Disposals Balance carried forward Depreciation Basis Rate Balance brought forward Depreciation charge for year Disposals Balance carried forward Net book value Brought forward Carried forward	Office and computer equipment £ 2,439 - - 2,439 SL 25% 1,093 610 - 1,703 1,346 736	Total £ 2,439 - - 2,439 1,093 610 - 1,703 1,346 736

DIFFERENCE CIO

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2022

16 Debtors and prepayments (receivable within 1 year)

Prepayments Holding account Debtors	2022 £ 475 400 - 875	2021 £ - 294 834 1,128

17 Cash at bank and in hand

Cash at bank and in hand 18 Creditors and accruals (payable within 1 year) Independent examination of accounts Accruals Holding account Pension	2022 £ 45,215 45,215 2022 £ 408 540 3,048 3,996	2021 £ 16,138 16,138 2021 £ 324 480 - 804

19 Events after the end of the reporting period

No events (not requiring adjustment to the accounts) have occurred after the end of the reporting period but before the accounts are authorised which relate to conditions that arose after the end of the reporting period.

20 Analysis of charitable funds

Analysis of movements in unrestricted funds Year ending 31 December 2022

Unrestricted funds General unrestricted fund *Totals*	Fund balances brought forward £ 6,994 6,994	Incoming resources £ 19,310 19,310	Resources expended £ ( 5,067 ) ( 5,067 )	Transfers £ - -	Fund balances carried forward £ 21,237 21,237

DIFFERENCE CIO

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2022

20 Analysis of charitable funds (continued)

Analysis of movements in unrestricted funds

Year ending 31 December 2021

Fund balances brought Incoming Resources forward resources expended Unrestricted funds £ £ £ General unrestricted fund - 10,083 ( 3,089 ) *Totals* - 10,083 ( 3,089 ) Purpose of unrestricted funds General unrestricted fund The 'free reserves' of the charity Fund balances brought Incoming Resources forward resources expended Restricted funds £ £ £ The National Lottery 8,510 81,146 ( 68,063 ) Community Foundation County Durham 1,690 - ( 1,690 ) DWP Access to Work 614 938 ( 1,552 ) *Totals* 10,814 82,084 ( 71,305 ) Fund balances brought Incoming Resources forward resources expended Restricted funds £ £ £ The National Lottery 14,160 55,684 ( 61,334 ) Community Foundation County Durham 1,896 - ( 206 ) DWP Access to Work 435 2,125 ( 1,946 ) *Totals* 16,491 57,809 ( 63,486 ) Analysis of movement in restricted funds Year ending 31 December 2022 Year ending 31 December 2021	Transfers £ - Transfers £ - - - - Transfers £ - - - -	Fund balances carried forward £ 6,994 6,994 Fund balances carried forward £ 21,593 - - 21,593 Fund balances carried forward £ 8,510 1,690 614 10,814

DIFFERENCE CIO

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2022

Purpose of restricted funds

Restricted funds represent income resources used for a specific purpose within the charity as identified by the donor.

The National Lottery

Protect and promote the rights of disabled people in the North East of the country.

Community Foundation County To pay for capacity building Durham DWP Access to Work Disability access.

21 Capital commitments

As at 31 December 2022, the charity had no capital commitments (2021 -£nil)

22 Guarantee

There have been no guarantees given by the charity at 31 December 2022.

23 Debt

There is no debt outstanding which is owed by the charity and which is secured by an excess charge on any of the assets of the charity at 31 December 2022.

24 Governing document

The organisation is a Charitable Incorporated Organisation - Foundation registered on 16 December 2016 as a body corporate under part 11 of the Charities Act 2011.

25 Analysis of net assets between funds

At 31 December 2022 At 31 December 2021 Tangible fixed assets Other net current assets/(liabilities) Cash at bank and in hand Tangible fixed assets Cash at bank and in hand Other net current assets/(liabilities)	Unrestricted Funds £ - 21,237 - 21,237 Unrestricted Funds £ - 6,994 - 6,994	Restricted Funds £ 736 23,978 ( 3,121 ) 21,593 Restricted Funds £ 1,346 9,144 324 10,814	Total 2022 £ 736 45,215 ( 3,121 ) 42,830 Total 2021 £ 1,346 16,138 324 17,808