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2022-03-31-accounts

NEIGHBOURHOOD WATCH NETWORK

(Charity No. 1173349)

Report and Financial Statements For the year ended 31 March 2022

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 ...................................................................................................................................... 12 Financial review ................................................................................................................................ 13 Structure, governance and management ......................................................................................... 15 Reference and administrative details ................................................................................................... 17 Trustees responsibilities ....................................................................................................................... 18 Independent Examiner’s Report to the Trustees of Neighbourhood Watch Network......................... 19 Financial Statements ............................................................................................................................. 20 Notes to the financial statements ........................................................................................................ 23

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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

2022 marks the 40[th] anniversary of the first NW scheme in England. While most of the events to mark this milestone will be covered in the next annual review for 2022/23, this report provides an opportunity to reflect on the legacy of the original initiatives. Known as Home Watch, the first scheme was set up in 1982 in Mollington in Cheshire and was joined soon after by groups in Harpenden and Chorleywood in Hertfordshire, Bedford and South Wales. These schemes reflected the ethos and values of the movement which has remained constant through the decades – locally mobilised and organised and reliant on the efforts of volunteers on behalf of their own communities. Incredibly, there are volunteers who set up a Neighbourhood watch 40 years ago and are still going strong today, while the national reach of the movement exceeds two million people.

We want to take this opportunity to acknowledge the selfless work and tenacity of all our volunteers during the life of this charity. Without all of you, none of our work would be possible and just like us, we know our communities are hugely proud of you. But this anniversary year will be more than just a celebration of that historic legacy; it will also showcase the need and the potential to build on that legacy for the future. The past few years have highlighted the importance of connected communities to our health and wellbeing and the value people place on knowing their neighbours better. We are committed to our charity and our movement playing as important a role in the future of that work as it has done over the past 40 years. We also want to say a huge thank you to our funders, partners, trustees, staff, and our Neighbourhood Watch communities whose continued support will make that possible.

John Hayward-Cripps Ian Bretman CEO 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 2022.

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, the National Police Chiefs Council Police and Crime Commissioners 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 20212022 are described below.

We have a wide range of crime prevention advice on our website, including regularly updated content which links to our most recent campaigns on fraud, dog theft, car theft, anti-social behaviour (ASB), county lines, hate crime, modern slavery and burglary. Our site was again visited by over 1.3million people over the year with the time spent on advice and actions-to-take pages being very high.

We have developed, with national agencies Historic England, Countryside Alliance, and the NFU, Rural Crime pages to identify what constitutes a rural crime and what people can do to prevent and report this. We have also worked with Safer Communities Wales, Crimestoppers, Get Safe Online, Eden project, Women’s Aid, and the National Cyber Security Centre to co-develop revised content and ‘how to’ guides on the website to tackle local crime and community issues.

The National Counter Terrorism Security Office (NaCTSO) reviewed and updated our counter terrorism toolkit and provided accessible and engaging visual content. This has strengthened our partnership with NaCTSO and developed means to further raise public awareness of counter terrorism, promote the public online training available and use of the Action Counters Terrorism or AcT app.

The Communities that Care (CTC) programme continues to be rolled out to both volunteers in partner organisations and NW coordinators. This programme trains and provides resources for coordinators to support those vulnerable to fraud within their communities to protect themselves, while offering support and signposting to other agencies for victims of fraud. West Yorkshire Police are engaging their coordinators in the programme and 51 extra volunteers in a range of police forces have signed up this year to be a CTC volunteer.

We have produced five national, targeted crime-prevention campaigns on car theft (April 2021), dog theft (June 2021), fraud (July 2021), ASB (Nov 2021) and burglary (March 2022). The social media reach of these campaigns was 295,000, 280,000, 392,000, 400,000 and 1.6million respectively with an additional 650,000 members via direct email in each campaign.

We continued to promote the governments Covid-19 messages and rules, and promoted the Home Office’s Beating Crime Plan in our newsletter to 700,000 members. We have identified, and are adapting, a range of areas within our current workplan to support priorities within the Beating Crime Plan.

We also supported the Cabinet Office campaign to launch the emergency alerts service, which will broadcast alerts to people’s phones in the event of a scenario that poses a significant threat to life, health, or property.

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Neighbourhood Watch Network Trustees’ Report

Achievements and performance (continued)

We developed and trialled our ‘Affiliate Model’ where existing local organisations such as resident associations, faith groups or other community groups can join Neighbourhood Watch as a group with one member of the group acting as the local coordinator and disseminating information, advice and benefits via their own network. This approach is making it easier for people and groups to engage with us and is increasing the diversity of our members and supporters to be more representative of our whole communities.

Neighbourhood Watch Week 2021 reached 92,000 via social media people and over 4,500 engaged directly with the materials. We gained 2,500 new followers on social media and were featured in 12 local newspapers. We delivered our first podcast and over 700 people downloaded our listening campaign guide. Neighbourhood Watch Week was part of the nationwide “Month of Community” in which several good causes come together to celebrate everything that makes our communities stronger. It includes The Big Lunch, Volunteers Week, Carers Week and Refugee Week. Research undertaken on behalf of the Month of Community based on a nationally representative sample of 4000+ people and scaled up proportionally found:

We ran our annual Neighbour of the Year Award with the Coop, which serves to celebrate those volunteers in our community who have been actively involved in increasing community wellbeing and reducing crime and the fear of crime in their communities. This year we saw 800 nominations and over 800 pieces of press coverage. The individual winner, Lynette Pryke, set up and ran the amazing Alford Hum support service and Keyham Neighbourhood Watch won the community of the year award for incredible support after the tragic shootings there.

Neighbourhood Watch Network is now represented on the Home Office/ Serious Fraud Office Victims' Working Group and has actively contributed to development of the Fraud Action Pan for Safeguarding victims. Neighbourhood Watch Network is also on the Home Office Burglary Task Force and the ASB Task Force contributing to Home Office Policy and implementation from a community perspective.

We worked closely with Deliveroo and the Metropolitan Police Service to create, verify and deliver online training to Deliveroo riders to keep themselves and their communities safer. 3,000 riders completed the training which had modules on keeping safe, harassment, female safety, domestic abuse and hate crime. Feedback from riders and members has been very positive.

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Neighbourhood Watch Network Trustees’ Report

Achievements and performance (continued)

We have continued to develop our Volunteer Training Hub which is a central point for all our training support and information for volunteers. Additional on-line training courses have been added on topics ranging from data security, governance, and compliance with Data Protection Regulations. The hub also provides volunteer forums, enabling coordinators from across England and Wales to discuss issues and ideas. Over 7,200 hours of training were delivered to volunteers including training on the new database for Neighbourhood Watch schemes provided by Visav.

The local Association Leads are meeting with Board members, the staff team and each other at quarterly meetings to ensure they are involved and support new projects and proposals and are involved in all the organisations working groups.

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

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Neighbourhood Watch Network Trustees’ Report

Achievements and performance (continued)

After launching our Community Grant Scheme last year, we committed to continue and enhance this programme into the future. The scheme has enabled local Neighbourhood Watch groups, schemes, and associations to apply for funds to support projects, growth or start-up. We have provided almost £5,000 over the year and are receiving very positive feedback on the reach, impact, and outcomes from the grants.

16,500 and 14,000 people respectively responded to our second Crime and Community survey and our Insight surveys which enables us to reflect on our progress towards our strategic aims, the public’s perception of us and the impact we have in communities. The results are positive with more people recognising us as the authoritative voice on community-based crime prevention; the most popular gateway for citizens to engage in their locality; and a recognised contributor to community health and wellbeing.

We have increased the number of non-members we are reaching through targeted direct social media campaigns with positive results in terms of engagement with the campaigns and 9,000 new followers.

We are working closely with our partner the Coop to produce and roll out Student Watch in several universities with the ‘Lookout’ (student produced) magazine. Our Young Peoples Development Manager is working with various youth organisations and young people to develop a new youth and young people offer.

Our Community Safety Charter has been developed by the People, Culture and Ethics Committee to involve volunteers in promoting wider involvement by local businesses and organisations community safety. The Charter includes a range of resources for businesses, individuals and organisations to commit to supporting crime prevention in their area. It was launched at the NW Conference on 31[st] May 2022 following successful pilots in London and Thames Valley.

Working with Good Neighbour Networks in Suffolk and Avon and Somerset, residents’ associations and communities networks in North Wales, mosques in High Wycombe, faith groups in Coventry, Historic England, Optivo Housing, Deliveroo and Thirteen and Accent Groups and students in several universities we have trained staff / members in crime prevention and given access to crime prevention materials either in printed format (e.g. Communities that Care Fraud prevention packs, Lookout magazines) or through the Knowledge Hub or our website. Through these organisations we are reaching new demographics and higher crime-rate areas.

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Neighbourhood Watch Network Trustees’ Report

Achievements and performance (continued)

People from ethnic minority backgrounds, people with disabilities and other marginalised groups continue to experience higher levels of crime and fear of crime than the overall population and so ensuring that we engage and involve them in our work is vital to our charitable mission. Neighbourhood Watch Network has established a People, Culture and Ethics Committee, chaired by a Trustee and involving staff members, association leads and coordinators to take forward work to improve the diversity and reach of Neighbourhood Watch. This group has developed and published a Diversity, Equality and Inclusion Statement and supported the development of the Neighbourhood Watch Community Safety Charter. A revised Code of Ethics and Standards of Behaviour has been developed and published.

Neighbourhood Watch Network ran Diversity Awareness training sessions for Associations and coordinators and included a session on diversity, equality, and inclusion in each of the six 2021 summer seminars reaching an audience of 420 association leads and coordinators.

We were delighted to welcome John Azah, Chief Executive of Kingston Race and Equalities Council as a keynote speaker to our 2021 Annual General Meeting. John was able to share some of his 30 years’ experience of working with government, police forces and local communities to promote strong community relations.

We are celebrating our 40[th] Anniversary by relaunching our brand guidelines, a special-edition logo, volunteer recognition awards, a timeline of our journey showing the breadth of our work – all of which include elements highlighting our relevance to all parts of our communities and expressing our commitment to attracting a more diverse audience.

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Neighbourhood Watch Network Trustees’ Report

Future Plans

Our current 5-year strategy runs from 2020 to 2025. In 2022-2023 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 2022 are set out in the financial statements that follow the Trustees’ Report.

There was a net deficit in the year of £36,720 (2020/21: £71,584). 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 £183,362 (2020/21: £220,082) 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.

The full trustee board reviews the reserves policy at least annually and has agreed on an unrestricted reserve fund of at least £115,000 (2020/21: £105,000), which is more than three months of all budgeted operating costs. At the end of the year, the reserves held were £161,000 (2020/21: £159,000) which is calculated as total net assets less restricted funds, some designated funds and the carrying value of fixed assets. This is still 40% above the target level, although it has reduced from 52% of the target level at 31 March 2021 and we have developed plans to invest funds that are surplus to immediate requirements to implement the 2020-2025 strategic plan. The Board has 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 2021/22 were covered by sponsorship income from three commercial partners - Co-operative Group (home insurance), ERA (home security products) and Avast (internet security software). We are grateful for their sustained support that provides a stable base for us to work strategically on our mission. 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 2022/23.

However, 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 carefully selected 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 2021/22 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 17.

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 5 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 9 salaried staff (7.8 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 Kardaya Singh Rooprai Treasurer Rebecca Bryant OBE Mohamed Hammeda Sue Pillar Hugh Ind appointed 17 August 2022 Tayo Oguntonade appointed 17 August 2022 Andrew Whyte appointed 17 August 2022 Peter Buchanan resigned 2 May 2022 Kirsty McHugh resigned 7 December 2021 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: 9 November 2022

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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 2022.

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.

Independent examiner’s statement

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: 21 November 2022

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Neighbourhood Watch Network Financial Statements

Financial Statements

Statement of financial activities for the year ended 31 March 2022

31 March 22 31 March 21
Notes Unrestricted Restricted Total Total
funds funds
Income from:
Donations 1,041 25,941 26,982 10,227
Charitable activities 2 280,219 40,122 320,341 343,250
Other trading activities 3 179,722 - 179,722 116,711
Investments - 16 - 16 116
Total income 460,998 66,063 527,061 470,304
Expenditure on:
Charitable activities 4 426,697 92,481 519,178 493,863
Raising funds 4 44,603 - 44,603 48,025
Total expenditure 471,300 92,481 563,781 541,888
Net (expenditure)/income (10,302) (26,418) (36,720) (71,584)
Transfers between funds - - - -
Net movement in funds (10,302) (26,418) (36,720) (71,584)
Reconciliation of funds:
Total funds brought forward 183,886 36,196 220,082 291,666
Total funds carried forward 10 173,584 9,778 183,362 220,082

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 2022

Notes 31 March 2022 31 March 2021
Fixed assets
Intangible fixed assets 7 5,657 11,314
Tangible fixed assets 7 4,075 2,461
Total fixed assets 9,732 13,775
Current assets
Stock 840 840
Debtors 8 62,625 78,364
Cash at bank and in hand 166,333 183,836
Total current assets 229,798 263,040
Creditors:amounts due within one year 9 (56,168) (56,733)
Net current assets 173,630 206,307
Total net assets 183,362 220,082
Funds of the charity 10
Unrestricted funds
Designated funds 26,847 57,771
General funds 146,737 126,115
Total unrestricted funds 173,584 183,886
Restricted funds 9,778 36,196
Total funds 183,362 220,082

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

Ian Bretman Chair

Kardaya Rooprai Treasurer

Date: 9 November 2022

Date: 9 November 2022

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Neighbourhood Watch Network Financial Statements

Statement of cash flows For the year ended 31 March 2022

Notes 31 March 2022 31 March 2021
Reconciliation of net expenditure to net cash flow
from operating activities
Net expenditure as per the statement of financial (36,720) (71,584)
activities
Investment income (16) (116)
Depreciation of fixed assets 7 6,522 6,403
Movements in working capital
Change in stock - (840)
Change in debtors 8 15,739 1,604
Change in creditors 9 (565) (10,888)
Cash flow from operating activities (15,040) (75,421)
Cash flow statement
Cash flow from operating activities (15,040) (75,421)
Cash flow from investment activities 8
Purchase of fixed assets 7 (2,797) (334)
Disposal of fixed assets 7 318 -
Investment income 16 116
Net cash used in investment activities (2,463) (218)
Change in cash in the year (17,503) (75,639)
Cash and cash equivalents at the beginning of the year 183,836 259,475
Cash and cash equivalents at the end of the year 166,333 183,836
Analysis of cash and cash equivalents
Current account 3,855 9,374
Deposit account 162,478 174,462
Total cash and cash equivalents at the end of the year 166,333 183,836

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Neighbourhood Watch Network Notes to the financial Statements

Notes to the financial statements

for the year ended 31 March 2022

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 the cost of living crisis 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 2023 and the reserves currently held, the trustees believe that the current economic situation, including the cost of living crisis, 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 and paying grants. Grants are recognised as expenditure when they are approved and this has been communicated to the recipient.

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.

25

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 2022 31 March 2022 31 March 2022 31 March 2021
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
National Lottery
-
- - - 40,000 40,000
Partners 219 40,122 40,341 - 7,920 7,920
Total 280,219 40,122 320,341 280,000 63,250 343,250

3. Income from other trading activities

31 March 2022 31 March 2021
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
Sponsorship
AVAST 62,833 - 62,833 39,301 - 39,301
ERA 50,000 - 50,000 50,000 - 50,000
Co-op 25,000 - 25,000 25,000 - 25,000
Airbnb 20,833 - 20,833 - - -
Deliveroo 10,000 - 10,000 - - -
Licence fees 5,000 - 5,000 - - -
Commission 5,393 - 5,393 2,410 - 2,410
Other income 663 - 663 - - -
Total 179,722 - 179,722 116,711 - 116,711

4. Expenditure

Year ended 31 March 2022

Raising Charitable
Governance
Support Total
funds activities
costs
costs
Direct costs
Staff costs 28,797 228,323
29,163
73,043 359,326
Other direct costs 349 163,424
5,535
30,271 199,579
Grants paid - 4,876
-
- 4,876
Total 29,146 396,623
34,698
103,314 563,781
Support costs 11,571 91,743
-
(103,314) -
Governance costs 3,886 30,812
(34,698)
- -
Total 44,603 519,178
-
- 563,781
Split between
Unrestricted funds 44,603 426,697 471,300
Restricted funds - 92,481 92,481
Total 44,603 519,178 563,781

26

Neighbourhood Watch Network Notes to the financial Statements

4. Expenditure (continued)

Expenditure (continued) Expenditure (continued)
Prior year, year ended 31 March 2021
Raising Charitable Governance Support Total
funds activities costs costs
Direct costs
Staff costs 32,862 246,968 24,508 68,278 372,616
Other direct costs 606 133,029 7,000 24,174 164,809
Grants paid - 4,463 - - 4,463
Total 33,468 384,460 31,508 92,452 541,888
Support costs 10,857 81,595 - (92,452) -
Governance costs 3,700 27,808 (31,508) - -
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

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

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

5. Governance costs

The Independent Examiner’s fee is included within governance costs. The amount payable in the year to the Independent examiner was £3,150 + VAT (2020/21: £3,000 + 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 one trustee (2020/21: none) was reimbursed a total of £51 (2020/21: £nil).

There were no related party donations or other transactions during the year (2020/21: none).

6. Staff costs and remuneration of key management personnel

31 March 2022 31 March 2021
Wages and salaries 307,622 325,392
Social security costs 28,601 29,734
Pension costs 13,623 11,055
Total employment costs 349,846 366,181
Other staff related costs 9,480 6,435
Total staff related costs 359,326 372,616

27

Neighbourhood Watch Network Notes to the financial Statements

6. Staff costs and remuneration of key management personnel (continued)

The average head count of staff employed throughout the period was 8.5 (2020/21: 9.1).

There was 1 member of staff (2020/21: 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 £89,655 (2020/21: £88,033).

7. Fixed assets

Intangible assets – Ourwatch.org.uk website

Cost
1 April 2021 16,971
Additions
Disposals -
At 31 March 2022 16,971
Amortisation
At 1 April 2021 5,657
Charge for the year 5,657
Disposals -
At 31 March 2022 11,314
Net book value at 31 March 2022 5,657
Net book value at 31 March 2021 11,314

7. Fixed assets (continued)

Tangible assets

Fixtures
Office
Total
and fittings
equipment
Cost
1 April 2021 1,128
3,397
4,525
Additions -
2,797
2,797
Disposals -
(1,550)
(1,550)
At 31 March 2022 1,128
4,644
5,772
Depreciation
At 1 April 2021 240
1,824
2,064
Charge for the year 178
687
865
Disposals -
(1,232)
(1,232)
At 31 March 2022 418
1,279
1,697
Net book value at 31 March 2022 710
3,365
4,075
Net book value at 31 March 2021 888
1,573
2,461

8. Debtors

28

Neighbourhood Watch Network Notes to the financial Statements

31 March 2022 31 March 2021
Trade debtors 14,602 70,000
Other debtors 6,078 5,550
Prepayments and accrued income 41,945 2,814
Total 62,625 78,364

9. Creditors

31 March 2022 31 March 2021
Trade creditors 7,687 1,684
Other taxes and social security 12,624 4,895
Other creditors 13,410 19,540
Accruals and deferred income 22,447 30,614
Total 56,168 56,733

10. Movement in funds

Current year At 1 April Income Expenditure At 31 March
2021 2022
Unrestricted funds
Designated funds
Advancement fund 10,820 - (8,037) 2,783
Project funds 46,951 - (25,533) 21,418
Community fund - 4,218 (1,572) 2,646
Total designated funds 57,771 4,218 (35,142) 26,847
General fund 126,115 456,780 (436,158) 146,737
Total unrestricted funds 183,886 460,998 (471,300) 173,584
Restricted funds
NESTA 5,131 - (4,522) 609
Devon and Cornwall 423 40,122 (32,026) 8,519
Volunteer Programme 30,107 - (29,457) 650
Co-op funded projects 535 25,941 (26,476) -
Total restricted funds 36,196 66,063 (92,481) 9,778
Total funds 220,082 527,061 (563,781) 183,362

29

Neighbourhood Watch Network Notes to the financial Statements

10. Movement in funds (continued)

Prior year At 1 April Income 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

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 young people’s engagement and development manager for part of the 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. In the year, funds were used for crime prevention campaigns on social media.

Community fund is money set aside for making small grants to local neighbourhood watch community projects across England and Wales. Money used for this fund comes from Patlock commission, where Patlock donates £7 from each lock it sells to neighbourhood watch members.

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. This fund continues to be spent.

Devon and Cornwall grant is money received to fund a part time post based and working in the Devon and Cornwall Force area. During the year, further funding was received for additional ‘Safer Streets’ projects.

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.

30

Neighbourhood Watch Network Notes to the financial Statements

10. Movement in funds (continued)

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.

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 in 2020, it was agreed the unspent fund would be returned to the Home Office and the fund wound up, and this was recorded as ‘grants unspent’ in expenditure in 2019-2020. However, since this balance sheet date, further discussions with the Home Office have resulted in the instruction that the fund can be kept by NWN but ringfenced to boost our neighbourhood crime / safer streets programme in the financial year 2022-2023. As a result of this, in the next financial period, the fund will be transferred and spent within the terms set by the Home Office.

12. Analysis of net assets between funds

Current year General Designated Restricted Total funds
fund funds funds
Fixed assets 9,732 - - 9,732
Net current assets 137,005 26,847 9,778 173,630
Total funds 146,737 26,847 9,778 183,362
Prior 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

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 2022 31 March 2021
Not later than one year 9,261 8,820
Later than one year and not later than 5 years - -

31

Neighbourhood Watch Network Notes to the financial Statements

14. Prior year comparatives

Statement of Financial Activities for year ended 31 March Statement of Financial Activities for year ended 31 March 2021
Notes Unrestricted Restricted Total
funds funds
Income from:
Donations 227 10,000 10,227
Charitable activities 280,000 63,250 343,250
Other trading activities 116,711 - 116,711
Investments 116 - 116
Total income 397,054 73,250 470,304
Expenditure on:
Charitable activities 428,619 65,244 493,863
Raising funds 48,025 - 48,025
Total expenditure 476,644 65,244 541,888
Net (expenditure)/income (79,590) 8,006 (71,584)
Transfers between funds - - -
Net movement in funds (79,590) 8,006 (71,584)
Reconciliation of funds:
Total funds brought forward 263,476 28,190 291,666
Total funds carried forward 183,886 36,196 220,082

32