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2021-03-31-accounts

NEIGHBOURHOOD WATCH NETWORK

(Charity No. 1173349)

Report and Financial Statements For the year ended 31 March 2021

As the national umbrella organisation of the largest voluntary movement for crime prevention in England and Wales, we support people to prevent and reduce crime by coming together with their neighbours to create safer, stronger and active communities.

Neighbourhood Watch Network Trustees’ Report

Contents

About Neighbourhood Watch Network .................................................................................................. 3 Our vision ............................................................................................................................................ 3 Our mission ......................................................................................................................................... 3 Our values ........................................................................................................................................... 3 Introduction from the Chair and the CEO ............................................................................................... 4 Trustees report ....................................................................................................................................... 5 Delivering Our Charitable Purpose ..................................................................................................... 5 Public Benefit & Contribution Made by Volunteers ........................................................................... 5 Main Activities .................................................................................................................................... 6 Achievement and Performance .......................................................................................................... 7 Future Plans ...................................................................................................................................... 10 Financial review ................................................................................................................................ 11 Structure, governance and management ......................................................................................... 13 Reference and administrative details ................................................................................................... 15 Trustees responsibilities ....................................................................................................................... 16 Independent Examiner’s Report to the Trustees of Neighbourhood Watch Network......................... 17 Financial Statements ............................................................................................................................. 18 Notes to the financial statements ........................................................................................................ 20

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Neighbourhood Watch Network Trustees’ Report

About Neighbourhood Watch Network

Neighbourhood Watch Network is the strategic voice and national umbrella organisation for England and Wales. We support the grassroots Neighbourhood Watch movement which involves over 2.3 million volunteers in preventing crime and strengthening communities. This work is delivered by our local Associations who are the members of Neighbourhood Watch Network.

Our vision

Our vision is a society where neighbours come together to create safer, stronger and active communities.

Our mission

Our mission is to support and enable individuals and communities to be connected, active and safe, which increases wellbeing and minimises crime.

Our values

Neighbourly, community-focused, inclusive, proactive, trusted, collaborative.

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Neighbourhood Watch Network Trustees’ Report

Introduction from the Chair and the CEO

While the Covid-19 pandemic has brought much hardship and sadness over the last 18 months, it has also highlighted the hidden strengths of local communities where people watch out for one another and provide mutual support. It is widely recognised that these are assets to be sustained and developed if the country is to not just recover from the health crisis but to also tackle the inequalities and social pressures highlighted by the pandemic. Neighbourhood Watch groups and volunteers have been at the heart of community responses throughout the pandemic, helping neighbours to connect and support each other, as well as maintaining our traditional role of helping to prevent crime and keep people safe. We are firmly committed to making our knowledge, experience and resources available to even more communities in the future.

We have therefore used the experience of the past year to look towards to our future and to understand how we can better support communities in need across England and Wales. In particular, we have recognised the need to focus on diversity and inclusion and to extend our reach to everyone no matter their age, culture, background, or ethnicity. At the heart of out 5-year strategy are goals to reach more young people, more people in high crime areas and broaden the diversity of our supporter base.

Our staff, trustees and volunteers have embraced the challenges and opportunities that have arisen during the pandemic and have delivered impactful and effective new ways of working to support their communities. The move online has enabled us to more closely connect our trustees with volunteers in the community by running quarterly online meetings and setting up more joint working groups, including: Rural Crime; People, Culture and Ethics; Digital Development; Volunteer Support Programme; and Alert System Multi-Scheme Administrators. This has ensured our volunteers and members are fully involved in the delivery of our ambitious strategy.

With the increased use of virtual technology to maintain engagement, our events have been held online, enabling more people to attend and cutting our running costs. We added these savings to the launch of our Community Grant Programme pilot, which in the first six months to June 2021 distributed over £5,000 to local Neighbourhood Watch groups for projects. More information about this is on page 9.

With the pandemic restrictions tentatively easing, Neighbourhood Watch will remain at the forefront of strengthening communities, with our volunteers becoming more visible once again as they resume face-to-face community activities. The ambitious 5-year strategy is progressing well, with our new Volunteer Development Programme underway, and a stronger focus on working in areas of high need and with people who are vulnerable or isolated.

We want to say a big THANK YOU to our funders, partners, trustees staff and our own communities. Your support means we can keep on progressing and maximise our efforts to help support stronger, connected and resilient communities. We reserve our BIGGEST THANKS for our incredible volunteers! Without you, none of our work would be possible and just like us, we know our communities are hugely proud of you.

With thanks

John Hayward-Cripps CEO

Ian Bretman Chair

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Neighbourhood Watch Network Trustees’ Report

Trustees report

The Trustees of Neighbourhood Watch Network (NWN) present their report and financial statements for the year ended 31 March 2021.

The financial statements comply with current statutory requirements, the charity’s trust deed and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Delivering Our Charitable Purpose

The Objects of NWN, as set out in the Constitution dated 10 April 2017 are to:

To achieve these objects, we provide free online resources for everyone to help them reduce their chances of becoming a victim of crime. We also signpost them to local Neighbourhood Watch groups which aim to strengthen community cohesion and wellbeing and create better connected and more resilient communities.

At a national level, we work closely with government departments, and voluntary sector partners to extend the reach of our work as far as possible and involve policy and research institutions in assessing our impact and help us plan for future improvements.

Local Neighbourhood Watch groups make a real, long-lasting difference to communities: as well as helping to reduce crime they increase neighbourliness and community wellbeing and strengthen the voice of the community with councils, the police and other public services. We support and enable local schemes to operate by providing resources, training and networking support to volunteers and members.

Public Benefit & Contribution Made by Volunteers

The public benefit from the activities carried out by the Charity by:

The Trustees confirm that they have had due regard to the guidance on public benefit published by the Charity Commission in exercising their powers or duties.

Neighbourhood Watch volunteers (estimated to number at least 2.3 million individuals) work through their local schemes, many of which are charities in their own right. So, while this is not a direct contribution to NWN, it is important to recognise the significant social value created within communities by preventing crime, reducing the fear of crime, alleviating loneliness and isolation and providing practical assistance between neighbours.

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Neighbourhood Watch Network Trustees’ Report

Main Activities

We review the aims, objectives and activities of the charity each year to ensure they remain focused on the charity’s stated purposes. In this report, we describe what the charity has achieved and how it has performed in the reporting period and how each key activity has benefitted the people that the charity was set up to help.

Objectives set out in our 2020-2025 strategic plan are to be:

Activities to achieve these objectives, that we carry out as the umbrella body and the national voice for the Neighbourhood Watch movement in England and Wales, include:

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Neighbourhood Watch Network Trustees’ Report

Achievement and Performance

Some of our achievements in furthering Neighbourhood Watch Network’s charitable purposes 2020/2021 are described below.

A new role of ‘Community Champion’ was piloted. This aims to build networks and support wellbeing within communities, helping to raise awareness of local issues, crime prevention advice and to reach a wider audience to enhance the existing volunteer structure. Over the year we trained 12 Community Champions with a further 87 volunteers signing up in two pilot areas of Lewisham, South-East London and North Yorkshire.

The ‘Communities That Care’ fraud prevention programme, enables volunteers to start conversations about fraud with those who are most at risk within their communities and offer direct advice and practical help to support residents to protect themselves. During the year 273 new Communities That Care volunteers were recruited - 50 in Suffolk, 100 across South East England, 80 in West Yorkshire, and 43 in North Wales, including Neighbourhood Watch members and new partner agencies, Suffolk Good Neighbour Network and Optivo Housing Association.

Cyberhood Watch Ambassadors support their communities in understanding and protecting themselves against cyber risks and to use technology with confidence. This programme is a partnership with cybersecurity firm, Avast. We have trained 53 Cyberhood Watch Ambassadors and developed 14 toolkits for them to use in their communities.

• Campaigning

Three national crime prevention campaigns were delivered during the year: ‘Protect your Car’, ‘Protect your Password’ and ‘Safety in Neighbours’ reached 295,000, 182,000 and 53,000 people respectively, through Facebook adverts to members of the public and Neighbourhood Watch members via email.

The Government’s Covid-19 messages were relayed to our supporter base throughout the year, sharing guidelines and advice to support everyone through lockdowns and transitioning back to school, work, and socialising. The NHS ‘Every Mind Matters’ campaign to support mental wellbeing and reduce loneliness and isolation was also featured in our communications.

• Promoting the Neighbourhood Movement

The successful Neighbour of the Year competition was repeated in partnership with Co-op Insurance, with the introduction of an award for Young Neighbour of the Year’. Among 655 pieces of media coverage was a comprehensive feature on BBC1’s The One Show.

A sponsorship arrangement with the distributors of the film ‘The Croods 2: A New Age’, enabled us to successfully engage with a younger audience than our traditional supporter base through a competition for children to design a ‘Croods 2’-inspired treehouse to be built in their local community. This was organised in partnership with Co-op Insurance and the Wildlife Trust.

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Neighbourhood Watch Network Trustees’ Report

Achievements and performance (continued)

NWN joined with over 35 community-focused charities as founder members of the Community Action Response group to campaign for neighbours, community groups and individuals to do their bit to reduce the impact of social isolation, loneliness and localised inequality brough to light during the Covid-19 crisis.

Two surveys on ‘cybercrime’ and ‘using technology during the pandemic’ were conducted, reaching over 19,000 people responded to the surveys. We used this and our work with the Cyberhood Watch Ambassadors, to built on our existing relationship with the National Cyber Security Centre and strengthen our voice in this area.

The National Lottery Community Fund approved our application for a £40,000 grant to support our Volunteer Programme. With this funding secured, we have launched a new ‘Knowledge Hub’ for volunteers – the hub provides resources and forums, allowing volunteers to learn and exchange information with other volunteers.

Over 1,100 hours of training were delivered to our volunteers via workshops and seminars.

Some examples of the work of local Neighbourhood groups carried out in the year are described below:

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Neighbourhood Watch Network Trustees’ Report

Achievements and performance (continued)

A grant programme for local Neighbourhood Watch groups was introduced for the first time. Local Associations can request funds for their project work. In the first tranche of funding between January and June 2021, we distributed over £5,000 for projects including: Seeds of Change - Young People planting up window boxes for older people, Looking after our Neighbours – creating 'help' cards for support and a thank you recognition scheme, a Little Library, and several brilliant litter pick initiatives. The programme was very well received and we plan to continue (and hopefully extend) it for future years.

Over 10,000 people responded to our ‘new members’ survey, which helped us better understand the reasons why people join Neighbourhood Watch.

We have established a presence on Instagram to increase our reach to a younger audience and a presence on LinkedIn to enhance our professional and network partnerships. As a result of this, and some of the other promotional work described above, four times as many 18-24 year olds visited our website compared to the previous year.

The Croods 2 campaign described above reached 83,000 younger people online.

Overall, we had over 7,500 new followers on social media.

The trustee board considered the revisions to the Charity Governance Code issued in December 2020 and welcomed the increasing focus on Equality, Diversion & Inclusion (EDI) as integral to delivering public benefit by enabling charities to understand where their work is most needed and how it can have most impact. This resonated strongly with our new strategy, as extending the reach of our work requires us to tackle attitudes and perceptions that have limited engagement in the past. We also recognise the need to better support people and communities who are most vulnerable to crime. In order to support our local Associations in this regard, and to share the good practice that exists across the movement, a People and Ethics and Culture Committee was formed, chaired by Rebecca Bryant a member of NWN’s Trustee Board and involving volunteers from our local Associations. The Committee has consulted on and developed an organisational Diversity Statement and a Community Charter and updated the organisational Ethics and Standards. The Committee has liaised with other organisations about the Community Charter and is planning on launching the Charter at the Neighbourhood Watch Crime and Community Conference early in 2022.

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Neighbourhood Watch Network Trustees’ Report

Future Plans

Our current 5-year strategy runs from 2020 to 2025. In 2021/2022 we aim to continue building on the start to this new phase of work for Neighbourhood Watch Network. The workstreams include:

More information about our future plans are contained in the 2020-2025 strategy which can be found on our website: www.ourwatch.org.uk.

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Neighbourhood Watch Network Trustees’ Report

Financial review

Financial position

The detailed figures for the year ended 31 March 2021 are set out in the financial statements that follow the Trustees’ Report.

There was a net deficit in the year of £71,584 (2019/20: £146,378). The deficit was planned as additional income had been received in previous years that was set aside by the Trustees, as designated funds, for projects in future years. This left total funds of the charity at £220,082 (2019/20: £291,666) at the end of the year.

Reserves

Total funds held by NWN may include those that are –

and/or those that are

The existence or level of these funds do not imply that there has been an underspend but may result from a variety of circumstances including timing differences between NWN’s financial year and that of our funders.

The balance of funds constitutes the charity’s unrestricted funds reserve which should be at a level to maintain a positive cashflow for day-to-day operations and provide sufficient funds for contingencies including scaling back operations in the event of a downturn in funding or for a winding-up of the organisation in the event of more significant loss of revenue. Unrestricted funds may also be designated for investment in future developments as part of NWN’s long-term strategy.

We review the reserves policy at least annually and have agreed on an unrestricted reserve fund of £105,000, which is more than three months of all budgeted operating costs. At the end of the year, the reserves held, after taking into account restricted funds and some designated amounts and the carrying amount of fixed assets was £159,000 (2019/20: £187,000). Although this is 52% (2019/20: 79%) above the minimum level, we expect funds surplus to immediate requirements to be applied to implementation of the 2020-2025 strategic plan. We have also mandated the Finance and Audit Committee to monitor reserves on a quarterly basis and to recommend any changes to the policy to the Board.

Going concern

After reviewing the Charity’s forecasts, projections and its reserves, the trustees have a reasonable expectation that NWN has adequate resources to continue in operation for the foreseeable future. The Charity therefore continues to adopt the going concern basis in preparing its financial statements.

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Neighbourhood Watch Network Trustees’ Report

Financial review (continued)

Sources of funds

NWN’s core costs in 2020/21 were covered by sponsorship income from three commercial partners - Co-operative Group (home insurance), ERA (home security products) and Avast (internet security software). In addition, the Home Office provides a grant of £280,000 to fund key deliverables through programmes and projects. Work is on-going to secure new sponsors in 2021/22.

We recognise the risks arising from reliance on a narrow base of funders and have agreed an increase in fundraising capacity to address this. There appears to be strong potential for increasing revenue from additional commercial sponsors but this will take sustained investment of time from the Head of Fundraising and the CEO.

Fundraising Practices

Neighbourhood Watch Network is registered with the Fundraising Regulator and is fully compliant with the Code of Fundraising Practice. Our Head of Fundraising is an Individual Member of the Institute of Fundraising. In the year 2020/21 we did not carry out any direct marketing or face-toface fundraising and received no complaints related to our fundraising practices. We are committed to always protecting vulnerable people and will ensure adherence to the Code of Fundraising practice and clear guidelines should we undertake different types of fundraising in the future. All marketing materials contain clear instructions on how a person can be removed from mailing lists.

Risk Management

We review the main risks facing the charity on a regular basis. The current risk register highlights the reliance on a narrow range of funders mentioned above and the related need to better demonstrate the impact of Neighbourhood Watch activities, particularly in respect of crime prevention. NWN also recognises the need to extend its reach and develop a stronger offer that is relevant to all parts of society and that builds engagement among younger people, those from ethnic minority backgrounds and those most at risk from crime. All of these issues are addressed in NWN’s 2020-2025 strategy and being implemented in our future plans. The charity has also insured against risks where practical to do so.

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Neighbourhood Watch Network Trustees’ Report

Structure, governance and management

Legal structure

Neighbourhood Watch Network was registered as a Charitable Incorporated Organisation (CIO) on 9th June 2017. The charity replaced Neighbourhood & Home Watch Network, a registered charity and company which was then dissolved. The voting membership of the CIO is explained below; trustees are also voting members.

Governance

NWN’s governing document is its Constitution, dated 10 April 2017 which is available on NWN's website www.ourwatch.org.uk. The overall governance, finance and operations of NWN are controlled by the Trustees, within the regulatory framework set by the Charity Commission.

The Constitution, resolutions and complementary procedures set by the Board, are the rules that NWN operates by, and by which decisions are made. The Trustees are ultimately responsible for NWN.

Members

NWN’s membership structure aligns with the 43 Police Force areas across England and Wales and each of these can form a “Force Level Association” and become voting members of NWN by signing a Memorandum of Understanding covering joint working arrangements and providing a common framework of ethics and standards. There are currently 30 of these Force Level Associations. The exception to the national structure is the Metropolitan Police Force Area which is organized around the 32 London Boroughs and which collectively account for 4 votes within the membership.

Individual membership of local Neighbourhood Watch Associations does not confer membership of the CIO.

Trustees

The governing document states that there must be between 4 and 12 trustees in post at any time. Trustees who serve at the date of this report, and those who served during the year under review are set out on page 14.

The trustees delegate much of the day-to-day management of the Charity to the CEO, but remain ultimately responsible. Their responsibilities are active, not passive, and include:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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Neighbourhood Watch Network Trustees’ Report

Structure, governance, management (continued)

The trustees are members of the Charity but this entitles them only to voting rights. The trustees have no beneficial interest in the Charity.

All trustees give their time voluntarily and receive no benefits from the Charity. Any expenses reclaimed are set out in note 6 to the financial statements.

The Board’s operations

The Board of Trustees meets at least four times a year to conduct its business and oversee progress against strategic and operational plans. Trustees are also involved in various working groups that support strategic workstreams. The Board is supported by a Finance and Audit Committee, which oversees the Charity’s finances (including reserves), income generation and risk management, and reports regularly to the Board on these matters.

Appointment and retirement of trustees

The Trustees are elected by the Members at NWN’s Annual General Meeting (AGM) and others may be co-opted by the Board between Annual General Meetings, provided that the total number of trustees does not exceed twelve. Members are entitled to nominate candidates for election as trustees at the AGM and other trustees are recruited through advertising and evidence-based recruitment processes against the trustees’ role description.

Board recruitment and induction

The Board is responsible for ensuring that it is made up of trustees who are collectively able to fulfil the governance function of the Board and therefore needs to have a mix of skills, both those which relate to the objectives of NWN and more generic skills and experience such as legal and financial.

The Board regularly undertakes a self-assessed skills audit against the set of skills it has identified as being essential for the governance of the Charity; this enables the Board to identify skills gaps, which informs the recruitment process and training needs. Trustees are able to access learning and development opportunities relevant to their trustee position.

Management

The Trustees delegate day-to-day running of the charity to the CEO who reports directly to the Board. The CEO leads a staff team of 8 salaried staff (6.8 full-time equivalents) at the time of signing the report. The Chair and Treasurer hold a meeting with the CEO each month. The Board receives regular reports on operational performance and provides oversight and scrutiny of results, using a set of key performance indicators.

Remuneration

The remuneration of the CEO is set by the Board and the remuneration of other staff is set by the CEO. In all cases, this is informed by formal and informal benchmarking information from comparable organisations in the voluntary sector, the responsibilities of each individual role and the requirements of the person specification.

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Neighbourhood Watch Network Trustees’ Report

Reference and administrative details

Charity name: Neighbourhood Watch Network Charity number: 1173349 Country of registration: England & Wales Principal office: Room WG07, Vox Studios, 1-45 Durham Street, London SE11 5JH

Trustees who served during the year and up to the date of this report were: Ian Bretman Chair Peter Buchanan Rebecca Bryant OBE appointed June 2020 Mohamed Hammeda appointed July 2020 Kirsty McHugh Sue Pillar appointed June 2020 Kardaya Singh Rooprai Treasurer David Huse resigned April 2020 Derek Pratt resigned June 2020 Key management personnel: John Hayward-Cripps, Chief Executive Officer Bankers: HSBC, 41 Market Place, Loughborough, LE11 3EJ Independent Examiner: Joanna Pittman, Sayer Vincent LLP, Invicta House, 108-114 Golden Lane, London, EC1Y 0TL

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Neighbourhood Watch Network Trustees’ Report

Trustees responsibilities

The Trustees are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the governing document. They are also responsible for safeguarding the assets of the charity and the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of NWN and financial information included on our website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

BY ORDER OF THE BOARD OF TRUSTEES

Ian Bretman

Chair

Date: 4 November 2021

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Neighbourhood Watch Network Financial Statements

Independent Examiner’s Report to the Trustees of Neighbourhood Watch Network

I report to the trustees on my examination of the accounts of Neighbourhood Watch Network for the year ended 31 March 2021.

This report is made solely to the trustees as a body, in accordance with the Charities Act 2011. My examination has been undertaken so that I might state to the trustees those matters I am required to state to them in an independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the trustees as a body, for my examination, for this report, or for the opinions I have formed.

Responsibilities and basis of report

As the charity trustees of the CIO you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the CIO’s accounts 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 2011 Act.

Since the CIO’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 Accounts in England and Wales, 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:

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.

Signed:

Name: Joanna Pittman FCA The Institute of Chartered Accountants in England and Wales Address: Sayer Vincent LLP, Invicta House, 108-114 Golden Lane, London, EC1Y 0TL Date: 12 November 2021

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Neighbourhood Watch Network Financial Statements

Financial Statements

Statement of financial activities for the year ended 31 March 2021

31 March 21
31 March 20
Notes Unrestricted Restricted Total
Total
funds funds
Income from:
Donations 227 10,000 10,227
-
Charitable activities 2 280,000 63,250 343,250
344,987
Other trading activities 3 116,711 - 116,711
113,534
Investments - 116 - 116
664
Total income 397,054 73,250 470,304
459,185
Expenditure on:
Charitable activities 4 428,619 65,244 493,863
546,220
Raising funds 4 48,025 - 48,025
59,343
Total expenditure 476,644 65,244 541,888
605,563
Net (expenditure)/income (79,590) 8,006 (71,584)
(146,378)
Transfers between funds - - -
-
Net movement in funds (79,590) 8,006 (71,584)
(146,378)
Reconciliation of funds:
Total funds brought forward 263,476 28,190 291,666
438,044
Total funds carried forward 11 183,886 36,196 220,082
291,666

All income and expenditure relate to continuing activities.

There are no other gains or losses other than those stated above.

Notes 1 – 14 form part of the financial statements.

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Neighbourhood Watch Network Financial Statements

Balance sheet

at 31 March 2021

Notes 31 March 2021 31 March 2020
Fixed assets
Intangible fixed assets 8 11,314 16,971
Tangible fixed assets 8 2,461 2,874
Total fixed assets 13,775 19,845
Current assets
Stock 840 -
Debtors 9 78,364 79,967
Cash at bank and in hand 183,836 259,475
Total current assets 263,040 339,442
Creditors:amounts due within one year 10 (56,733) (67,621)
Net current assets 206,307 271,821
Total net assets 220,082 291,666
Funds of the charity 11
Unrestricted funds
Designated funds 57,771 148,236
General funds 126,115 115,240
Total unrestricted funds 183,886 263,476
Restricted funds 36,196 28,190
Total funds 220,082 291,666

The financial statements were approved by the Board of Trustees and signed on their behalf:

Ian Bretman Chair

Kardaya Rooprai Treasurer

Date: 4 November 2021

Date: 4 November 2021

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Neighbourhood Watch Network Notes to the financial Statements

Notes to the financial statements

for the year ended 31 March 2021

1. Accounting policies

a. Statutory information Neighbourhood Watch Network is a Charitable Incorporated Organisation registered in England and Wales. The address of the registered office is Room WG07, Vox Studios, 1-45 Durham Street, London SE11 5JH.

b. Statement of compliance and basis of preparation

The financial statements have been prepared in accordance with:

The charity meets the definition of a public benefit entity under FRS 102.

c. Critical accounting judgements and estimates

When preparing the financial statements in line with FRS 102, the trustees are required to make judgements and estimates. The estimates and judgements are based on historical experiences and other factors that are considered relevant including expectations of future events. The estimates and judgements include:

In the view of the trustees, no assumptions concerning the future have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

d. Going concern

When considering going concern, the trustees consider all available information about the future at the date they approve the accounts, which includes information from budgets and forecasts about income, expenditure and cash flows. Attention is also given to reserves.

The charity has not been adversely affected by Covid-19 as it does not rely on donations from the general public as a result of fundraising events.

Given the Home Office grant agreed for the year ending 31 March 2022 and the reserves currently held, the trustees believe that the continuing Covid-19 pandemic does not pose a material uncertainty that would cast doubt on the charity’s ability to continue as a going concern. The trustees therefore consider it appropriate for the financial statements to be prepared on a going concern basis.

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Neighbourhood Watch Network Notes to the financial Statements

1. Accounting policies (continued)

e. Income

Income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income can be measured reliably.

f. Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Expenditure is attributed to the following areas:

Where expenditure cannot be directly attributed to these areas, it is allocated to them on a usage or head count basis. Support costs, such as general management, finance, office rent and governance costs are allocated in this way. Governance costs are costs associated with the general running of the charity and include audit, strategic management and trustees’ meetings and reimbursed expenses.

Raising funds relate to the costs in carrying out activities that are intended to generate income, such as staff time managing grant applications and developing commercial sponsorship agreements.

Charitable activities are costs incurred in delivering activities and services for the charity’s beneficiaries. These include providing information and resources to Neighbourhood Watch members and the general public on the Ourwatch.org.uk website, staff costs for delivering campaigns and project.

The charity is unable to recover the majority of VAT charged. This irrecoverable VAT is included in the costs of those items to which it relates.

g. Fund accounting

Restricted funds are funds which arose when donors gave them for particular restricted purposes which are narrower than the general purposes of the charity. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in note 11 to the financial statements.

Unrestricted funds are donations and other income received or generated for the general objectives of the charity without further specified purposes and are available as for use at the discretion of the trustees.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the note 11 to the financial statements.

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Neighbourhood Watch Network Notes to the financial Statements

1. Accounting policies (continued)

h. Operating leases

Payments made under operating leases are charged to the SOFA when incurred. The charity does not acquire assets under finance leases.

i. Fixed assets

Tangible fixed assets costing more than £350 are capitalised and are held on the balance sheet at cost less accumulated depreciation and impairment losses.

Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset evenly over its estimated useful life as follows:

Intangible fixed assets are held on the balance sheet at cost less accumulated amortisation and impairment losses.

The Ourwatch.org.uk website for the national Neighbourhood Watch Network is capitalised as an intangible asset and amortised on a straight line basis over its expected useful life of 3 years.

Impairment reviews are conducted when events and changes in circumstances indicate that an impairment may have occurred. If any asset is found to have a carrying value materially higher than its recoverable amount, it is written down accordingly.

j. Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments

k. Debtors

Trade and other debtors are recognised at the settlement amounts due for the provision of services delivered. Prepayments are recognised at the amount prepaid or the amount paid in advance.

l. 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.

m. Financial instruments

The charity only has financial assets and financial 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.

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Neighbourhood Watch Network Notes to the financial Statements

1. Accounting policies (continued)

n. Pensions

Pension costs comprise the costs of the charity’s contribution to its employee’s pension schemes. The charity provides a money purchase scheme which is available to all employees.

2. Income from charitable activities

31 March 2021 31 March 2021 31 March 2020
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
Grants
Home Office 280,000 - 280,000 280,000 - 280,000
NESTA - 15,330 15,330 - 34,987 34,987
National Lottery
-		 40,000 40,000 - - -
Partners - 7,920 7,920 - 30,000 30,000
Total 280,000 63,250 343,250 280,000 64,987 344,987

3. Income from other trading activities

31 March 2021 31 March 2020
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
Sponsorship
AVAST 39,301 39,301 21,700 21,700
ERA 50,000 - 50,000 50,000 - 50,000
Co-op 25,000 - 25,000 40,063 - 40,063
Commission
Patlock 2,410 - 2,410 1,771 - 1,771
Total 116,711 - 116,711 113,534 - 113,534

4. Expenditure

Year ended 31 March 2021

Raising
Charitable		 Support Total
funds
activities		 costs
Direct costs
Staff costs 32,862
246,968		 92,786 372,616
Other direct costs 606
133,029		 31,174 164,809
Grants paid -
4,463		 - 4,463
Total 33,468
384,460		 123,960 541,888
Support costs 14,557
109,403		 (123,960) -
Total 48,025
493,863		 - 541,888
Split between
Unrestricted funds 48,025
428,619		 476,644
Restricted funds -
65,244		 65,244
Total 48,025
493,863		 541,888

23

Neighbourhood Watch Network Notes to the financial Statements

4. Expenditure (continued)

Prior year, year ended 31 March 2020

Raising Charitable Support
Total
funds activities costs
Direct costs
Staff costs 38,727 246,389 57,129
342,245
Other direct costs 1,050 166,352 86,916
254,318
Grants repaid* - 9,000 -
9,000
Total 39,777 421,741 144,045
605,563
Support costs 19,566 124,479 (144,045)
-
Total 59,343 546,220 -
605,563
Split between
Unrestricted funds 59,343 479,869 539,212
Restricted funds - 66,351 66,351
Total 59,343 546,220 605,563

Staff costs are allocated to raising funds, charitable expenditure and support costs using an activities-based time split. Non-staff costs are allocated directly to the category to which they relate.

5. Analysis of support costs

Year ended 31 March 2021

Raising
Charitable		 Total
funds
activities
Staff costs 10,896
81,889		 92,785
Office running costs (rent, IT) 2,757
20,718		 23,475
Professional fees (HR, legal) 82
618		 700
Governance (audit, trustee expenses) 822
6,178		 7,000
Total 14,557
109,403		 123,960

Prior year, year ended 31 March 2020

Raising
Charitable		 Total
funds
activities
Staff costs 7,760
49,369		 57,129
Office running costs (rent, IT) 6,877
43,749		 50,626
Professional fees (HR, legal) 412
2,622		 3,034
Governance (audit, trustee expenses) 4,517
28,739		 33,256
Total 19,566
124,479		 144,045

Support costs are allocated to raising funds and charitable activities on a percentage basis based on expenditure, as an approximation of usage.

24

Neighbourhood Watch Network Notes to the financial Statements

6. Governance costs

The Independent Examiner’s fee and the Auditor’ remuneration is included within governance costs. The amount payable in the year to the Independent examiner was £3,000 + VAT. The amount paid to the Auditor in the previous year was £4,700+VAT.

Trustees give their time and expertise without charge and do not receive any other benefit from the charity. They are reimbursed for travel and subsistence costs incurred when fulfilling their duties as trustees. During the year no trustees (2019/20: 8) were reimbursed a total of £nil (2019/20: £8,979).

There were no related party transactions during the year.

7. Staff costs and remuneration of key management personnel

31 March 2021 31 March 2020
Wages and salaries 325,392 286,650
Social security costs 29,734 26,553
Pension costs 11,055 9,647
Total employment costs 366,181 322,850
Other staff related costs 6,435 19,395
Total staff related costs 372,616 342,245

The average head count of staff employed throughout the period was 9.1 (2019/20: 8.4).

There was 1 member of staff (2019/20: 1) whose total employee benefits (excluding employer pension costs) were between £70,001-£80,000.

Key management personnel

The total cost of employee benefits (salary and employer’s National Insurance and pension contributions) for key management personnel in the year was £88,033 (2019/20: £86,352).

8. Fixed assets

Intangible assets – Ourwatch.org.uk website

Cost
1 April 2020 16,971
Additions
Disposals -
At 31 March 2021 16,971
Amortisation
At 1 April 2020 -
Charge for the year 5,657
Disposals -
At 31 March 2021 5,657
Net book value at 31 March 2021 11,314
Net book value at 31 March 2020 16,971

25

Neighbourhood Watch Network Notes to the financial Statements

8. Fixed assets (continued) Tangible assets

Fixtures Office Total
and fittings
equipment
Cost
1 April 2020 1,128 3,063 4,191
Additions - 334 334
At 31 March 2021 1,128 3,397 4,525
Depreciation
At 1 April 2020 18 1,299 1,317
Charge for the year 222 525 747
At 31 March 2021 240 1,824 2,064
Net book value at 31 March 2021 888 1,573 2,461
Net book value at 31 March 2020 1,110 1,764 2,874
9. Debtors
31 March 2021 31 March 2020
Trade debtors 70,000 30,329
Other debtors 5,550 11,803
Prepayments and accrued income 2,814 37,835
Total 78,364 79,967
10. Creditors
31 March 2021 31 March 2020
Trade creditors 1,684 7,752
Other taxes and social security 4,895 26,180
Other creditors 19,540 18,414
Accruals and deferred income 30,614 15,275
Total 56,733 67,621

26

Neighbourhood Watch Network Notes to the financial Statements

11. Movement in funds

Current year At 1 April Income Income Expenditure Expenditure
At 31		 March
2020 2021
Unrestricted funds
Designated funds
Advancement fund 55,787 - (44,967)
10,820
Project funds 92,449 - (45,498)
46,951
Total designated funds
148,236		 - (90,465)
57,771
General fund 115,240 397,054 (386,179)
126,115
Total unrestricted funds
263,476		 397,054 (476,644)
183,886
Restricted funds
NESTA 7,969 15,330 (18,168) 5,131
Devon and Cornwall 20,221 7,920 (27,718) 423
Volunteer Programme - 40,000 (9,893)
30,107
Co-op funded projects - 10,000 (9,465) 535
Total restricted funds 28,190 73,250 (65,244)
36,196
Total funds 291,666 470,304 (541,888)
220,082
Prior year At 1 April Income Expenditure Transfers At 31
2020 March
2021
Unrestricted funds
Designated funds
Advancement fund 60,000 - (4,213) - 55,787
Project funds 177,053 - (87,174) 2,570 92,449
Total designated funds
237,053		 - (91.387) 2,570 148,236
General fund 169,037 394,198 (447,825) (170) 115,240
Total unrestricted funds
406,090		 394,198 (539,212) 2,400 263,476
Restricted funds
NESTA 18,284 34,987 (45,302) - 7,969
Devon and Cornwall - 30,000 (9,779) - 20,221
Patlock Fund 2,270 - (2,270) - -
Segmentation Fund 9,000 - (9,000) - -
CQC Leaflet Fund 2,400 - - (2,400) -
Total restricted funds 31,954 64,987 (66,351) (2,400) 28,190
Total funds 438,044 459,185 (605,563) - 291,666

Designated funds

Advancement fund is money received from the Home Office and designated by the trustees for the ‘Advancement Areas’ programme, which aims to deliver a framework for Neighbourhood Watch development in areas of high crime areas, underrepresented communities and in areas of social disadvantage. The fund has paid for a full-time development manager for one year.

Project fund is money received from the Home Office and designated by the trustees for the charity to deliver a series of intervention projects to support the trustees’ 10-point strategy.

27

Neighbourhood Watch Network Notes to the financial Statements

11. Movement in funds (continued)

Restricted funds

NESTA grant fund is funding received from NESTA (a national grant-making charity, www.nesta.org.uk) for the ‘Communities that Care’ project. During the year, a further £15,330 was received to fund a piece of research on social change.

Devon and Cornwall grant is money received to fund a part time post based and working in the Devon and Cornwall Force area. This fund is expected to run for two years from October 2019, with potential to extend for a further period.

Volunteer Programme is restricted money from the National Lottery Community Fund, which was secured to support the volunteer programme – a project to invest in Neighbourhood Watch volunteers.

Co-op funds projects is money received from the Co-op Group for specific projects, including purchase of window stickers for households and development of the Ourwatch website.

Force area Patlock commission fund is money received from Patlock, the manufacturer of a patio locking system, where for each product sold, £5 is donated to the local force area association, and the charity receives an administration fee of £2. In previous years this had been treated as a restricted fund however, the money due to local force area associations is accounted for as a creditor immediately as it is received and is no longer treated as a restricted fund.

Segmentation grant fund was formed from a grant received from the Home Office between 2015-2017 for a project to test the application and measurable impact of the serious and organised crime public intervention model. After discussing the fund with the Home Office, it was agreed the unspent fund would be returned to the Home Office and the fund wound up.

Care Quality Commission (CQC) leaflet and survey fund was formed from money received in September 2015 from the CQC for the charity to deliver a survey and leaflet distribution on behalf of the CQC. After discussing the fund with the CQC, it was agreed the fund could be transferred to general funds.

28

Neighbourhood Watch Network Notes to the financial Statements

12. Analysis of net assets between funds

Current year General Designated Restricted Total funds
fund funds funds
Fixed assets 13,775 - - 13,775
Net current assets 112,340 57,771 36,196 206,307
Total funds 126,115 57,771 36,196 220,082
Prior year General Designated Restricted Total funds
fund funds funds
Fixed assets 19,845 - - 19,845
Net current assets 96,395 148,236 28,190 271,821
Total funds 115,240 148,236 28,190 291,666

13. Operating leases

The charity had one operating lease at the balance sheet date, for rented office space. The minimum non-cancellable lease payments are:

31 March 2021 31 March 2020
Not later than one year 8,820 8,400
Later than one year and not later than 5 years - -

14. Prior year comparatives

Statement of Financial Activities for year ended 31 March 2020

Notes Unrestricted Restricted Total
funds funds
Income from:
Charitable activities 280,000 64,987 344,987
Other trading activities 113,534 - 113,534
Investments 664 - 664
Total income 394,198 64,987 459,185
Expenditure on:
Charitable activities 479,869 66,351 546,220
Raising funds 59,343 - 59,343
Total expenditure 539,212 66,351 605,563
Net income (145,014) (1,364) (146,378)
Transfers between funds 2,400 (2,400) -
Net movement in funds (142,614) (3,764) (146,378)
Reconciliation of funds:
Total funds brought forward 406,090 31,954 438,044
Total funds carried forward 263,476 28,190 291,666

29