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2021-06-30-accounts

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Company Registration Number 10609517 Registered Charity Number 1175946

THE COMMON ROOM OF THE GREAT NORTH LIMITED

(A COMPANY LIMITED BY GUARANTEE)

REPORT AND ACCOUNTS For the year ending 30 June 2021

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THE COMMON ROOM OF THE GREAT NORTH LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT For the year ended 30 June 2021

The Trustees, who are also Directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 30 June 2021.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered charity name The Common Room Of The Great North Limited Charity registration number 1175946 Company registration number 10609517 Registered office North Of England Institute Of Mining & Mechanical Engineers, Neville Hall, Westgate Road, Newcastle upon Tyne NE1 1SE Key Management Personnel Elizabeth Mayes Chief Executive Officer Julie Eastlake Finance and Operations Manager

Trustees

For the purposes of the Companies Act 2006, the Board of Trustees is the Board of Directors of the charitable company and is referred to as the Trustees throughout this report.

The Trustees of The Common Room Of The Great North Limited during the year and to the date of signing this report are as follows:

Mr W Bell (resigned 11/01/2022) Mr M Boyle OBE (Chair) Ms C Miller Sir W Morrison-Bell Mr A Pender CBE (resigned 22/06/2022) Ms A Shaw Dr F Smith Ms H Whitfield Ms P Wilkinson NJ Doyle – Hall (appointed 3/8/2020) MJ Broadbent (appointed 3/8/2020) CA Bell OBE (appointed 3/8/2020)

Company Secretary Julie Eastlake Bankers Lloyds Bank plc, 25 Gresham Street, London EC2V 7HN Auditors Azets Audit Services, Bulman House, Regent Centre, Newcastle upon Tyne NE3 3LS Solicitors Ward Hadaway Solicitors, Sandgate House,102 Quayside, Newcastle upon Tyne NE1 3DX

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THE COMMON ROOM OF THE GREAT NORTH LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT For the year ended 30 June 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Documents

The Common Room of the Great North Limited is a charitable company limited by guarantee, incorporated on 8 February 2017 and registered as a charity on 27 November 2017. The charity is controlled by its governing document, its Memorandum & Articles of Association, as amended by a Special Resolution registered at Companies House on 21 November 2017 and subsequently amended by a Special Resolution registered at Companies House on 20 June 2021 and constitutes a limited company, limited by guarantee, as defined by the Companies Act.

The Directors of the company are also Trustees of the charity.

Eligibility for membership of the charity, and membership of the Board of Trustees, is governed by the Articles of Association. There are no restrictions in the governing document on the operation of the charity other than those imposed by general charity law.

Charitable Purpose

The Common Room of the Great North Limited’s charitable objects are to advance, for the benefit of the public, education in the practice and understanding of science, technology, engineering and mathematics, in particular in the North-East region by:

a) owning, operating and maintaining a building (known as Neville Hall in Newcastle upon Tyne) used for the presentation of debates, conferences, courses, exhibitions, events, lectures and workshops.

b) owning, preserving, protecting and promoting the cultural, industrial and engineering heritage of the building and its collection of documents, books and objects.

c) promoting public knowledge and awareness of the roles played by science, technology, engineering, mathematics and innovation in the past present and future of the north-east region.

The North-East region means the Administrative areas of the Boroughs of Gateshead, North Tyneside, South Tyneside, Hartlepool, Middlesbrough, Redcar and East Cleveland, Stockton and Darlington; the counties of Durham and Northumberland; and the cities of Durham, Sunderland and Newcastle upon Tyne.

Structure and Governance

The charity currently has a Board of 12 non-executive Trustees as at the year end.

The Board currently meets 4-6 times per year. A Chief Executive’s report, quarterly management accounts, a meeting agenda and any other necessary Board papers are prepared by the Chief Executive and circulated in advance of meetings.

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THE COMMON ROOM OF THE GREAT NORTH LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT For the year ended 30 June 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT (Continued)

Recruitment and Appointment of Board of Trustees

Trustees are elected to the Board based on discussions and recommendations offered by Trustees and outside advisors to the organisation, as well as through a range of advertising channels.

Trustee Induction and Training

New Trustees are inducted by the Chair of the Board and Chief Executive and are provided with a range of resources to support their understanding of Common Room’s plans.

Remuneration of Key Management Personnel

The Board, who give their time freely and have received no remuneration in the year, have considered who are the Key Management Personnel (KMP) of the charity. Together with the Board, these KMP are those in charge of directing and controlling, running and operating the activities of the charity on a day to day basis.

The pay of the KMP is reviewed annually. The Trustees benchmark against pay levels of other charities and similar organisations within the sector and the region. Pay levels are set using this information together with the budget and forecast information, ensuring that the charity can afford any proposed increases. The Board then agrees any uplift to remuneration.

The Contribution of Volunteers

The charity makes extensive use of volunteers to support its activities.

Fundraising Policy

The charity is required to report how it deals with fundraising from the public. The charity does not use a professional fundraiser or commercial participator to raise funds. Any monies raised direct from the public follows all guidelines set out by the Charity Commission and UK law in every respect. We respect the privacy and contact preferences of all public donors.

OBJECTIVES AND ACTIVITIES

Public Benefit

The Trustees understand and have discussed the implications of the provisions of the Charities Act 2011, which state that all charities must demonstrate that they are established for public benefit and have had due regard to the public benefit guidance issued by the Charity Commission.

The Trustees believe that the charity meets both of the key principles:

Principle 1 - There must be an identifiable benefit, or benefits

Achievement of the organisation's objectives will enable the preservation, upkeep and public use and accessibility of Neville Hall, a Grade 2* listed building of both historic and architectural value. They will also preserve the associated archives and collections, making them available to the public around the world both physically and digitally.

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THE COMMON ROOM OF THE GREAT NORTH LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT For the year ended 30 June 2021

OBJECTIVES AND ACTIVITIES (Cont.)

Public Benefit (Cont.)

Principle 2 - Benefit must be to the public, or a section of the public.

Each element of our work has the ability to provide benefit to the public as a whole who can access the building, engage with it in a range of ways and enjoy and/or participate in the programme of work produced.

The Common Room of the Great North Limited’s beneficiaries are therefore entirely appropriate to its aims and the public as a whole benefits from its work.

All of these benefits are clear, evidenced and relate directly to The Common Room of the Great North Limited’s aims. In addition, the Trustees do not consider that any significant detriment or harm flows from The Common Room of the Great North Limited’s work.

Risk Management

The Trustees of the charity regularly review the major governance, operational and financial risks which the charity faces as part of its annual business planning process and confirm that systems have been established to mitigate these risks.

The Common Room of the Great North Limited has a risk management strategy in place which comprises:

The Trustees are satisfied that appropriate financial systems and controls and employment policies and practices are being put in place.

The Trustees consider the key risks facing the charity at this time and the mitigating actions taken to be as follows:

Failure to raise match funding for re-development project

Short-term liquidity/cashflow issues threaten development project

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THE COMMON ROOM OF THE GREAT NORTH LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT For the year ended 30 June 2021

OBJECTIVES AND ACTIVITIES (Continued)

Risk Management (Cont.)

The Trustees also manage the general financial risks arising by ensuring that:

The Common Room also has a regularly updated Covid-19 risk assessment which is revisited in line with changing government guidance and identified risks to the operation of the charity.

ACHIEVEMENTS AND PERFORMANCE

Summary of the main achievements of the charity during the year

In July 2020 we began the process to identify and plan for the likely impact of the covid-19 pandemic on our charity. We successfully secured a grant from National Lottery Heritage Fund Emergency Grant Fund to support this work. We also worked with our contractor, Brims Construction Ltd and Project Managers Gardine & Theobald to identify the likely new completion date for the capital works.

In October 2020 we submitted a revised and prudent business plan to National Lottery Heritage Fund seeking a grant increase of £950,000 to support our operating costs through to June 2023 and add in additional capital upgrade works to help make the building more covid-safe. We found out we had been successful with this bid in December 2021.

Throughout 2020 we delivered our charitable mission via digital engagement. Including a series of Youtube videos inspiring children to undertake STEM activities at home during the lockdown, videos to engage them with geology and STEM recorded by The Rock Showman, and two series of podcasts- Pioneering Minds and The Face of Engineering. We were also able to move our touring exhibition “Graft & Glory” online into an interactive format.

Our Youth Board continued to meet, virtually, and played an important role in consultation on our business plan to ensure we had taken into consideration the views of those young people in our opening plans.

As the team were fully funded by the project we didn’t furlough any of the team until Feb 2021, to ensure we didn’t lose momentum on the capital project through delayed decision making.

Our grant increase request allowed for a softer opening period, and a much longer Opening Festival period from July 2021 to allow for uncertainties around how the public would want to engage with our project, and engagement, with covid still prevalent.

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THE COMMON ROOM OF THE GREAT NORTH LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT

For the year ended 30 June 2021

ACHIEVEMENTS AND PERFORMANCE (cont.) Summary of the main achievements of the charity during the year (cont.)

Our collection digitisation programme has continued we were able to recruit a number of home based volunteers to helped with transcription throughout the lockdown.

We took the keys of Neville Hall back from the contractor on 22[nd] January 2021 and began the 3- month process of bringing our heritage collection, books and furniture out of storage. The planning for our Opening Festival was undertaken in this period of time, including liaising with artists and our industry partners to pull together an engaging programme of events to celebrate the reopening of The Common Room after 2 years.

We recruited 8 new staff in the first 6 months of 2021 to support our re-opening including, Operations Supervisor, Food & Beverage Manager, F&B Assistant Manager, Finance Assistant, Programme Coordinator and 3 Exhibition Crew.

We began our Opening Festival on 30[th] July 2021 with a programme of family friendly STEM events including Lego workshops, Rock Showman shows, exhibitions, lectures and industry takeover days.

We have also put in place two new Board committees in 2020/21 including a Finance Committee and Remuneration Committee to assist in decision making and support the Senior Management Team.

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THE COMMON ROOM OF THE GREAT NORTH LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT For the year ended 30 June 2021

ACHIEVEMENTS AND PERFORMANCE (cont.)

Financial Review

The out-turn for the year, after the transfer between funds for capitalisation of Neville Hall, is an unrestricted deficit of £1,318,856 (2020: surplus of £1,001,457) together with a increase of Restricted Funds of £10,278 (2020: £(1,132,441))

This is largely due to the residual spend on the refurbishment of Neville Hall being from the NE LEP loan, and as a result paid out of unrestricted expenditure.

The unrestricted deficit leaves Unrestricted Funds at 30 June 2021 in a deficient position of £301,237 (2020: surplus position of £1,017,619)

The Trustees are pro-actively working to improve the financial position of the charity.

Reserves Policy

The Trustees have reviewed the charity's needs for reserves in line with the guidance issued by the Charity Commission.

The calculation of free reserves is based on the definition included in the charity Statement of Recommended Practice (SORP), which provides recommendations for accounting and reporting for charities. The trustees have examined the requirements of the charity to hold free reserves - those reserves not invested in tangible fixed assets, excluding long term liabilities, or designated for a particular purpose. The Trustees consider it to be appropriate to work towards building a free cash reserve fund, to the equivalent of 6 month’s operational costs, which would equate to £215,000.

The Trustees would also then aspire to retain an additional allowance of £50,000 to enable the charity to respond flexibly to events or appropriate initiatives which might be identified outside of its annual budgeting process.

At the year-end free reserves, all of which currently link to the value of the building, were in a deficit position at £188,939 (2020: positive free reserves of £418,879) a decrease of £607,818 (2020: £690,781 increase) in the year.

The trustees have prepared a budget and cashflow forecast, including consideration in light of the ongoing situation in relation to the Covid – 19 virus and on conclusion of this work, have concluded that the charity continues to be a going concern for the foreseeable future. On that basis they have continued to adopt the going concern basis when preparing the financial statements.

However, the charity intends, through its budgeting, to reach the desired level of Free Reserves within 5 years of re-opening. This policy will be reviewed by the Trustees on an annual basis as part of the charity’s budgeting processes.

Disclosure of information to auditor

Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.

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THE COMMON ROOM OF THE GREAT NORTH LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT For the year ended 30 June 2021

The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of Auditor

Azets Audit Services Limited, trading as Azets Audit Services were appointed auditor to the Company following their acquisition of Tait Walker LLP, trading as MHA Tait Walker on 1 May 2022.

Azets Audit Services have indicated their willingness to stand for reappointment at the forthcoming Annual General Meeting. A resolution for the re-appointment of Azets Audit Services as auditors of the Company is to be proposed at the forthcoming Annual General Meeting.

PLANS FOR FUTURE YEARS

Over the next 12 months we will continue to deliver the elements of our updated Activity Plan, as part of our National Lottery Heritage Funded Project in the building. This includes activities relating to the 150[th] Anniversary of Neville Hall and 170[th] Anniversary of The Mining Institute itself. We are looking to host a major conference in Spring 2022 called The Face of Engineering, building on our podcast from 2020/21 we will be hosting a live event.

Phase 2 of our website, with a searchable collection, will be live very shortly. We continue to work closely with NA College and Nissan to provide the heritage enrichment module to their first-year apprentices and they have several dates booked in to deliver their training here at The Common Room, as part of their sponsorship of our project.

We aspire to roll out our education offering – our Northern Aspirations and What’s Beneath Our Feet workshops, both within the building and at schools in the New Year. This has already begun and will continue in consultation with partner schools.

We continue to work with NUSTEM at Northumbria University on our Theory of Change model, to ensure the interventions we undertake have the desired impact in line with our charitable objectives.

The senior team will be focussed on ensuring we meet our fundraising targets to reduce reliance on the NE LEP loan and on building further partnership and stakeholder agreements to support both the mission and the commercial functioning of the business.

RESPONSIBILITIES OF THE TRUSTEES

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

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THE COMMON ROOM OF THE GREAT NORTH LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES’ REPORT For the year ended 30 June 2021

The law applicable to charities requires the trustees to prepare financial statements for each financial period 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 period. 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 charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Signed on behalf of the Trustees

Matt Boyle 29 Jun 2022 05:05:55 BST (UTC +1)

Mr M Boyle Trustee Company Registration Number 10609517

Date 29 June 2022

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THE COMMON ROOM OF THE GREAT NORTH LIMITED (A Company Limited by Guarantee) INDEPENDENT AUDITOR'S REPORT

Opinion

We have audited the financial statements of The Common Room of the Great North Limited (the 'charity') for the year ended 30 June 2021, which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cashflows and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We draw attention to note 1 in the financial statements, which indicates that there is a material uncertainty in the forecasts and projections over the timing and level of projected future income and therefore the derived cashflows of the charitable company. As stated in note 1, these conditions, along with the other matters as set below, indicate that a material uncertainty exists, that may cast significant doubt on the charitable company’s ability to continue as a going concern should these conditions occur. Our opinion is not modified in respect of this matter.

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements appears to be reasonable in the circumstances. Our evaluation of the trustees' assessment of the entity’s ability to continue to adopt the going concern basis of accounting included, review of their forecasts, their assumptions and their underlying business plan. However, for the reasons explained above and in note 1, there are inherent uncertainties in the timing and amount of the levels of income being forecast, and there is a consequential uncertainty regarding the willingness of the funders to provide additional support should income fall below the amounts being forecast.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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THE COMMON ROOM OF THE GREAT NORTH LIMITED (A Company Limited by Guarantee) INDEPENDENT AUDITOR'S REPORT

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially mis-stated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities set out on page 9 and 10, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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THE COMMON ROOM OF THE GREAT NORTH LIMITED (A Company Limited by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 June 2021

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Because of the field in which the client operates, we identified the following areas as those most likely to have a material impact on the financial statements: Health and Safety, music and alcohol licences and compliance with both the UK Companies Act and UK Charities Act.

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed noncompliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

......................................

Simon Brown BA ACA DChA (Senior Statutory Auditor) For and on behalf of Azets Audit Services, Statutory Auditor Bulman House, Regent Centre, Gosforth, Newcastle upon Tyne NE3 3LS

Date:.............................

Azets Audit Services is a trading name of Azets Audit Services Limited.

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THE COMMON ROOM OF THE GREAT NORTH LIMITED (A Company Limited by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 June 2021

Note
Income
Income from Grants, Donations &
Legacies
3
Income from Charitable Activities
4
Other Income
5
Total Income
Expenditure
Cost of Raising Funds
Expenditure on Charitable Activities
6
Total Expenditure
Net Income/(Expenditure)
Transfer between fund
Net Movement
Balance brought forward
Balance carried forward
16		 Unrestricted
Funds
Restricted
Funds
Total
2021
Total
2020
£
£
£
£
4
2,543,565
2,543,569
1,826,947
16,493
513
17,006
21,645
5,173
-
5,173
-
21,670
2,544,078
2,565,748
1,848,592
-
-
-
-
351,403
3,522,923
3,874,326
1,979,576
351,403
3,522,923
3,874,326
1,979,576
(329,733)
(978,845)
(1,308,578)
(130,984)
(989,123)
989,123
-
-
(1,318,856)
1,017,619
10,278
-
(1,308,578)
1,017,619
(130,984)
1,148,603
(301,237)
10,278
(290,959)
£1,017,619

The notes on pages 18 to 31 form part of the financial statements.

There are no recognised gains and losses during the year other than as shown above.

All the activities for the year are continuing activities.

The Statement of Financial Activities also complies with the requirements for an Income & Expenditure Account under the Companies Act 2006.

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THE COMMON ROOM OF THE GREAT NORTH LIMITED (A Company Limited by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 June 2020

Note
Income
Income from Investments
Income from Grants, Donations &
Legacies
3
Income from Charitable Activities
4
Total Income
Expenditure
Cost of Fundraising
Expenditure on Charitable Activities
6
Total Expenditure
Net Income/(Expenditure)
Transfer between funds
Net Movement
Balance brought forward
Balance carried forward
16		 Unrestricted
Funds
Restricted
Funds
Total
2020
£
£
£
-
-
-
1,275
1,825,672
1,826,947
21,645
-
21,645
22,920
1,825,672
1,848,592
-
-
-
131,476
1,848,100
1,979,576
131,476
1,848,100
1,979,576
(108,556)
(22,428)
(130,984)
1,110,013
1,001,457
(1,110,013)
(1,132,441)
-
(130,984)
16,162
1,132,441
1,148,603
£1,017,619
-
£1,017,619

The notes on pages 18 to 31 form part of the financial statements.

All the activities of the company are classed as continuing.

The Statement of Financial Activities includes all gains and losses in the period and therefore a statement of total recognised gains and losses has not been prepared.

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THE COMMON ROOM OF THE GREAT NORTH LIMITED (A Company Limited by Guarantee) BALANCE SHEET

AS AT 30 June 2021

Notes
Fixed Assets
Tangible Fixed Assets
10
Investments
11
Current Assets
Debtors
12
Cash At Bank & In Hand
Creditors – Amounts Falling Due Within 1 Year
13
Net Current (Liabilities)/Assets
Total Assets
Creditors – Amounts Falling Due After > 1 Year
14
Total Net Assets
15
Represented by:
Unrestricted Reserves
16
Restricted Reserves
16		 2021
2020
£
£
2,204,545
2,133,524
1
1
2,204,546
2,133,525
215,326
767,515
131,201
352,133
346,527
1,119,648
(525,188)
(700,769)
(178,661)
2,025,885
418,879
2,552,404
(2,316,844)
(1,534,785)
(290,959)
£1,017,619
(301,237)
1,017,619
10,278
-
(290,959)
£1,017,619

The notes on pages 18 to 31 form part of the financial statements.

These financial statements were approved and signed by a Member of the Board of Trustees on

…………….. 29 June 2022

Matt Boyle 29 Jun 2022 05:05:55 BST (UTC +1)

Mr M Boyle Trustee Company Registration Number 10609517

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THE COMMON ROOM OF THE GREAT NORTH LIMITED (A Company Limited by Guarantee) STATEMENT OF CASHFLOWS

AS AT 30 June 2021

(A Company Limited by Guarantee)
STATEMENT OF CASHFLOWS
AS AT 30 June 2021
2021 2020
Note £ £
Cash flows from operating activities
Net cash (expenditure)/income (1,308,578) (130,984)
Adjustments to cash flows from non-cash items
Depreciation 51,139 20,230
Impairment 2,905,515 1,139,897
Gifts in kind - -
1,648,079 1,029,143
Working capital adjustments
Decrease/(Increase) in debtors 12 552,189 226,397
Increase/(decrease) in creditors 13 (369,608) 398,096
Net cash flows from operatingactivities 1,830,660 1,653,636
Cash flows from investing activities
Purchase of tangible fixed assets 10 (3,027,675) (2,410,518)
Net cash flows from investing activities (3,027,675) (2,410,518)
Cash flows from financing activities
New loans 818,644
 877,720
Interest charged and repayments made on loans and
borrowings 157,442 56,995
Net (decrease)/increase in cash and cash equivalents (220,932) 177,833
Cash and cash equivalents at 1 July 352,133 174,300
Cash and cash equivalents at 30 June 131,201 352,133

All of the cash flows are derived from continuing operations during the above two periods.

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VirtualSignature Transaction Ref. UE2S-DGRD-VMRZ 29 Jun 2022 05:06:09 BST (UTC +1) D 4/4 P 18/32

THE COMMON ROOM OF THE GREAT NORTH LIMITED (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 June 2021

1. Accounting Policies

Going Concern

The financial statements have been prepared on a going concern basis. The charity has met its day to day working capital requirements through income from grant funders supporting the charity, loans and an overdraft facility and have commenced commercial operations following the lifting of lockdown restrictions during September 2021.

In the directors’ assessment of possible changes they have considered a fall in demand from their commercial/trading operations, whilst targeting potential cost savings within their core costs. Key scenarios and assumptions areas within the forecasts include:-

Although the forecast prepared takes account of the matters above to support the ability of the charity to remain a going concern and to be able to trade and meets its debts as they fall due, the underlying assumptions used in forecasting are extremely judgemental and difficult to predict and could be subject to significant variation.

The charity’s forecasts and projections show that the charity should be able to continue in operational existence for at least a period of 12 months from the approval of the financial statements. The forecasts project the trading income from commercial activities will continue to grow (based on nine months actual trading history from September 2021 to 31 May 2022 which shows strong demand and monthly surpluses being generated). The cashflow forecast shows the charity is a going concern on the basis that a number of funding bids submitted being submitted are successful, in addition to there being a strong uptake in sponsorship and fundraising during the 12-month period being forecast. Should the grant funding and fundraising levels projected not be achieved, this would potentially lead to a strain on cashflow and the inability of the charity to stay within its facilities, without further additional funding or current lenders further revising repayment terms. As a result of the uncertainty in the timing and levels of income levels being forecast and the consequential willingness of funders to provide additional support, there is a material uncertainty in respect of the going concern of the charity.

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VirtualSignature Transaction Ref. UE2S-DGRD-VMRZ 29 Jun 2022 05:06:09 BST (UTC +1) D 4/4 P 19/32

THE COMMON ROOM OF THE GREAT NORTH LIMITED (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 June 2021

1. Accounting Policies (Continued)

Based on the factors set out above, the directors believe that it remains appropriate to prepare the financial statements on a going concern basis. However, given the timing of decisions being made on funding applications, the uncertainty of membership and subscription income levels and the consequential willingness of funders to provide additional support, that these circumstances represent a material uncertainty that may cast significant doubt on the charity’s ability to continue as a going concern and therefore to continue realising its assets and discharging its liabilities in the normal course of business. The financial statements do not include an adjustments that would result from the basis of preparation being inappropriate.

Charity Information

The Common Room of the Great North Limited is a private company, limited by guarantee, incorporated in England and Wales. The registered office is North Of England Institute Of Mining & Mechanical Engineers, Neville Hall, Westgate Road, Newcastle upon Tyne NE1 1SE.

The charity is a public benefit entity.

Statement of Compliance

These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 – 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act 2006 and the Statement of Recommended Practice (Charities SORP FRS 102 effective January 2019) "Accounting and Reporting by Charities" and the Charities Act 2011.

The financial statements have been prepared on the historical cost basis having impaired the fixed asset freehold land and buildings down to its market value, having recognised the ‘conservation deficit’ for which specific grant funding has been received.

The financial statements are prepared in sterling, which is the functional currency of the charity.

Estimation Uncertainty and Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported.

Management have approved depreciation, prepayments, accruals and other cut-off adjustments, including the impairment of the land and buildings to its market value to recognise the conservation deficit for which specific grant funding has been received. Whilst management believe that these estimates and judgements are accurate, there is every likelihood that they will not be exact.

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VirtualSignature Transaction Ref. UE2S-DGRD-VMRZ 29 Jun 2022 05:06:10 BST (UTC +1) D 4/4 P 20/32

THE COMMON ROOM OF THE GREAT NORTH LIMITED (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 June 2021

1. Accounting Policies (Continued)

These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Income

All income, including grant income, is included in the Statement of Financial Activities (SOFA), net of VAT, when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Such income is only deferred when the donor or funder has specified that the grant or donation can only be used in future accounting periods or where the donor or funder has imposed conditions which must be met before the charity has unconditional entitlement.

Other income is measured at the fair value of the consideration received or receivable and represents amounts receivable for services provided in the normal course of business, net of discounts, VAT and other sales related taxes.

Expenditure

All expenditure is accounted for on an accruals basis and is recognised when a liability is incurred.

Irrecoverable VAT

All resources expended are classified under activity headings that aggregate all costs related to the category. Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

Operating Leases

The charity classifies the lease of certain printing equipment as operating leases as the title to the equipment remains with the lessor. Rental charges are charged against income on a straight-line basis over the period of the lease.

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VirtualSignature Transaction Ref. UE2S-DGRD-VMRZ 29 Jun 2022 05:06:10 BST (UTC +1) D 4/4 P 21/32

THE COMMON ROOM OF THE GREAT NORTH LIMITED (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 June 2021

1. Accounting Policies (Continued)

Tangible Fixed Assets and Depreciation

Depreciation is provided on the fixed assets at rates calculated to write off the assets over their remaining useful lives as follows:

Freehold Land & Buildings - over 50 years Computer Equipment - 33% per annum straight line Office Equipment, Furniture & Fittings - 25% per annum straight line

The building is held at historic cost and impaired to ensure it does not exceed its market value. The value of the building at completion is £2.1m, but funding allows a “conservation deficit” where Capital Works will be capitalised and the building impaired during the project, such that the value of the building never exceeds the completion valuation.

Impairment of Fixed Assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Cash and Cash Equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Fixed Asset Investments

Fixed asset investments are initially measured at transaction price excluding transaction costs and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

Trade debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Trade creditors

Creditors and provisions 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 and provision are normally recognised at their settlement amount after allowing for any trade discounts due.

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VirtualSignature Transaction Ref. UE2S-DGRD-VMRZ 29 Jun 2022 05:06:10 BST (UTC +1) D 4/4 P 22/32

THE COMMON ROOM OF THE GREAT NORTH LIMITED (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 June 2021

1. Accounting Policies (Continued)

Fund Accounting

The charity has a number of restricted income funds to account for situations in which a funder requires that a grant must be spent on a particular purpose or where funds have been raised for a specific purpose. The aim and use of each restricted fund are set out in Note 16 to the financial statements.

Restricted funding received for capital works will be recognised as restricted income. Once the money has been spent on the project, where there are no further ongoing restrictions of the asset, a transfer from Restricted Funds to Unrestricted funds will be made.

Funds considered Unrestricted Funds and are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.

Pensions

The charity contributes to a defined contribution scheme, as detailed in Note 9.

For the defined contribution scheme, the amount charged to the Statement of Financial Activities in respect of pension costs is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

Taxation

The Common Room of the Great North Limited is a registered charity and, as such, is not liable to taxation on its income in the current year.

Financial Instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ of FRS102 to all its financial instruments.

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

2. Legal Status

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1. The company law members of the charity are the members of its Board of Trustees.

There are currently 12 members of the company as at the year end (2020: 9).

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VirtualSignature Transaction Ref. UE2S-DGRD-VMRZ 29 Jun 2022 05:06:11 BST (UTC +1) D 4/4 P 23/32

THE COMMON ROOM OF THE GREAT NORTH LIMITED (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 June 2021

3. Income from Grants, Donations & Legacies

Unrestricted Restricted 2021 2020
Funds Funds
£ £ £ £
Grant Income
Foyle Foundation - 50,000 50,000 -
Garfield Weston Foundation - 75,000 75,000 -
NCIF - Community Foundation - 12,500 12,500 -
National Lottery Heritage Fund –
Emergency Fund - 170,500 170,500 -
National Lottery Heritage Fund – Delivery - 2,178,914 2,178,914 1,798,672
John and Ruth Howard Trust - - - 4,500
Idlewild Trust - - - 2,500
Royal Commission for the Exhibition 1851 - 20,000 20,000 20,000
The Minerals Engineering Society - - - 1,200
Wolfson Foundation - 35,000 35,000 -
- 2,541,914 2,541,914 1,826,872
Donations
The Minerals Engineering Society - 1,500 1,500 -
Northern Business Forum - 473 473 75
General donations 4 - 4 -
Gift Aid - (322) (322) -
4 1,651 1,655 75
-
4 2,543,569 2,543,569 1,826,947

Of the 2020 total of £1,826,947, £1,275 was attributed to unrestricted funds and £1,825,672 to restricted funds.

4. Income from Charitable Activities

Book Sales
Other Earned Income		 Unrestricted
Funds
£
Restricted
Funds
£
2021
£
2020
£
1,820
12
1,832
788
14,673
501
15,174
20,857
16,493
513
17,006
21,645

In 2020, all income from charitable activities was attributable to unrestricted funds.

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VirtualSignature Transaction Ref. UE2S-DGRD-VMRZ 29 Jun 2022 05:06:11 BST (UTC +1) D 4/4 P 24/32

THE COMMON ROOM OF THE GREAT NORTH LIMITED (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 June 2021

5. Other income

5.
Other income
Government grant – CJRS
6.
Expenditure on Charitable Activities
Direct Costs – Charitable Activities
Activity Plan Costs
Professional Fees – Re-development
Marketing & Communications
Salaries & On Costs
Evaluation
Equipment
Support Costs
Bank Charges
Depreciation
Legal & Professional
Impairment (conservation deficit)
Removal & Storage Fees
Rent, Rates & Water
Heat & Light
Insurance
Loan Interest and Charges
ICT Support, Software & Maintenance
Other Overheads
Recruitment
Repairs & Maintenance
Staff & Volunteer costs
Governance Costs
Audit Fees
Pension & Payroll Fees		 Unrestricted
Funds
£
Restricted
Funds
£
2021
£
2020
£
5,173
-
5,173
-
5,173
-
5,173
-
Unrestricted
Funds
£
Restricted
Funds
£
2021
£
2020
£
-
65,511
65,511
69,191
-
141,226
141,226
258,685
1,865
78,917
80,782
33,274
103,026
-
-
154,286
9,776
3,175
257,312
9,776
3,175
225,960
-
-
1,043
27
1,070
212
51,139
15,350
-
-
11,015
2,905,515
51,139
26,365
2,905,515
20,230
-
1,139,897
315
15,483
15,798
38,523
2,469
2,123
4,592
13,296
12,200
18,466
30,666
13,454
1,486
30,733
32,219
44,991
157,442
-
157,442
86,557
1,561
7,276
8,837
9,059
2,167
58,179
60,346
12,891
-
3,611
3,611
3
272
8,145
8,417
3,288
5
5,092
5,097
2,697
750
4,000
4,750
6,828
313
367
680
540
351,403
3,522,923
3,874,326
1,979,576

Of the 2020 total of £1,979,576, £131,476 was attributable to unrestricted funds and £1,848,100 to restricted funds.

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VirtualSignature Transaction Ref. UE2S-DGRD-VMRZ 29 Jun 2022 05:06:12 BST (UTC +1) D 4/4 P 25/32

THE COMMON ROOM OF THE GREAT NORTH LIMITED (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 June 2021

7. Net Income/(Expenditure)

Net Income/(Expenditure)
2021 2020
£ £
Net income/(expenditure) is stated after charging/(crediting):
Auditor’s Remuneration 4,750 3,000
Other fees paid to auditor 2,750 3,828
Depreciation of owned Tangible Fixed Assets 51,139 20,230
Impairment of owned Tangible Fixed Assets 2,905,515 1,139,897

8. Staff Costs & Trustees’ Remuneration

Unrestricted
Restricted		 2021 2020
Funds Funds
£ £ £ £
Gross Salary Costs 4,403 228,142 232,545 204,469
Social Security Costs - 17,820 17,820 15,397
Employer’s Pension Contributions –
Defined Contribution Scheme
-		 6,947 6,947 6,094
4,403 252,909 257,312 225,960
The average monthly number of staff employed during the year, was 2021 2020
as follows: No. No.
Cultural & Creative Learning Programmes 8 7

The number of the above staff expressed as full-time equivalents was 8 (2020: 7)

No employees received remuneration, including employer’s pension contributions, in excess of £60,000 in the year (2020: None)

The total paid to key management personnel, defined as the members of the Senior Management Team, was £93,324 (2020: £93,743).

No remuneration has been paid to any Trustees/Directors in the year (2020: Nil) and no reimbursement has been made of any Travel and Subsistence expenses to Trustees in respect of their attendance at meetings of the charity (2020: Nil).

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VirtualSignature Transaction Ref. UE2S-DGRD-VMRZ 29 Jun 2022 05:06:12 BST (UTC +1) D 4/4 P 26/32

THE COMMON ROOM OF THE GREAT NORTH LIMITED (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 June 2021

9. Pension Scheme

Contributions totalling £6,947 (2020: £6,094) were paid during the year into the defined contribution pension scheme operated in respect of the above staff. £1,929 in pension contributions were outstanding at 30 June 2021 (2020: £1,388).

Pension benefits are provided through a Group Personal Pension Scheme, which is a defined contribution scheme. The assets of the scheme are held separately from those of the company in a separately administered fund. The charity makes an employer's contribution of 3% of pensionable pay, provided that the employee makes a minimum contribution of 5%.

These amounts are paid over to the Fund on a monthly basis.

10. Tangible Fixed Assets

Tangible Fixed Assets
Cost
At 1 July 2020
Additions in year
At 30 June 2021
Accumulated Depreciation
At 1 July 2020
Charge for year
Impairment in year
At 30 June 2021
Net Book Value
At 30 June 2021
At 30 June 2020		 Freehold
Land &
Buildings
£
Office +
ICT
Equipt
£
Total
Fixed
Assets
£
3,239,897
70,863
3,310,760
2,905,515
122,160
3,027,675
6,145,412
193,023
6,338,435
1,139,897
37,339
1,177,236
-
2,905,515
51,139
-
51,139
2,905,515
4,045,412
88,478
4,133,890
2,100,000
104,545
2,204,545
2,100,000
33,524
2,133,524

The value of the building at completion is £2.1m, but funding allows a “conservation deficit” where capital works will be capitalised and impaired during the project build. At 30 June 2021 the total conservation deficit write off was £4,045,412 (2020 £1,139,897)

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VirtualSignature Transaction Ref. UE2S-DGRD-VMRZ 29 Jun 2022 05:06:12 BST (UTC +1) D 4/4 P 27/32

THE COMMON ROOM OF THE GREAT NORTH LIMITED (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 June 2021

11. Investments

Investment in trading subsidiary – Common Room Trading Limited 2021
£
2020
£
1
1
1
1

The Common Room of the Great North Limited owns 100% of the share capital of Common Room Trading Limited (Company Number 10620119). The company was dormant throughout the current and comparative period.

12. Debtors

Trade Debtors
Grant Debtors
VAT Recoverable
Prepayments
Accrued Income
Creditors – Amounts Falling Due Within 1 Year
Other Taxes & Social Security Costs
Trade Creditors
Other Creditors – NEIMME
Other Creditors – CRGN donation to NEIMME
Other Creditors – Unpaid Share Capital
Other Creditors – Pension Contributions
Loan – Newcastle City Council
Loan – North East LEP
Overdraft – North East LEP
Loans – Founders’ Fund
Accruals and deferred income		 2021
£
2020
£
8,296
4,213
6,375
129,176
14,461
272,336
21,510
25,407
164,684
336,383
215,326
767,515
2021
£
2020
£
5,652
4,454
115,687
177,793
6
-
6
25,000
1
1
1,929
1,388
9,027
-
120,000
-
65,000
-
207,886
5,000
487,127
525,188
700,769

13. Creditors – Amounts Falling Due Within 1 Year

Founders Fund repayment details:

During the year a £5,000 loan from A Pender was fully repaid.

An additional LEP loan was given during the year. This temporary loan was described as an overdraft and carries an interest rate of 4.5%.

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VirtualSignature Transaction Ref. UE2S-DGRD-VMRZ 29 Jun 2022 05:06:13 BST (UTC +1) D 4/4 P 28/32

THE COMMON ROOM OF THE GREAT NORTH LIMITED (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 June 2021

14. Creditors – Amounts Falling Due After > 1 Year

Loan – Newcastle City Council
Loan – North East LEP
Overdraft – North East LEP
Donation – CRGN to NEIMME payable 2022/2023		 2021
£
2020
£
698,945
1,460,023
107,876
50,000
607,065
877,720
-
50,000
2,316,844
1,534,785

Newcastle City Council Loan Interest rate: 7.4% Repayment date: June 2044 North East LEP Interest rate: 4.86% Repayment date: March 2025 The total drawdown facility for the North East LEP loan is £1.5million.

The North East Combined Authority and The Trustees of the National Heritage Memorial Fund hold a first charge on Neville Hall and Wood Memorial Hall, Westgate Road, Newcastle upon Tyne

15. Analysis of Net Assets between Funds

Fixed Assets & Investments
Net Current Assets/(liabilities)
Creditors – Amounts Due After 1 Year
Fixed Assets & Investments
Net Current Assets/(liabilities)
Creditors – Amounts Due After 1 Year		 Unrestricted
Funds
Restricted
Funds
Total
2021
£
£
£
2,204,546
-
2,204,546
(188,939)
10,278
(178,661)
(2,316,844)
-(2,316,844)
(301,237)
10,278
(290,959)
Unrestricted
Funds
Restricted
Funds
Total
2020
£
£
£
2,133,525
-
2,133,525
418,879
1,534,785
-
-
418,879
1,534,785
1,017,619
-
1,017,619

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VirtualSignature Transaction Ref. UE2S-DGRD-VMRZ 29 Jun 2022 05:06:13 BST (UTC +1) D 4/4 P 29/32

THE COMMON ROOM OF THE GREAT NORTH LIMITED (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 June 2021

16. Analysis of Charitable Funds

Analysis of Charitable Funds
Unrestricted Funds
Charity General Fund
Transfer of funds
Total Unrestricted Funds
Restricted Funds
National Lottery Heritage Fund
-
Delivery
-
Emergency Fund
Transfer of funds
Total Restricted Funds
Total Funds		 Fund at
1 July 2020
£
Incoming
Resources
in Year
£
Resources
Expended in
Year &
Transfers
£
Fund at 30
June 2021
£
(92,394)
1,110,013
1,017,619
21,670
-
21,670
(351,403)
(989,123)
(1,419,501)
(422,127)
120,890
(301,237)
-
2,373,578
170,500
(3,362,701)
(160,222)
(989,123)
10,278
-
-
989,123
989,123
-
2,544,078
(2,454,825)
10,278
1,017,619
2,565,748
(3,874,326)
(290,959)

Name of Restricted Fund

National Lottery Heritage Fund – Delivery

National Lottery Heritage Fund – Emergency Fund

Description, Nature & Purpose of the Restricted Fund

Towards the ‘Development’ phase of a project to redevelop Neville Hall

The National Lottery Heritage Fund has provided support for the heritage sector in response to the coronavirus outbreak. This grant is to help organisations that manage a heritage asset that is at risk over a period of 4 months. The support includes immediate costs as well as costs to help the organisations look towards longer term recovery.

Match Funding - Delivery Foyle Foundation, Garfield Weston Foundation, Institute of Mechanical Engineers EEGS, Leche Trust, Reece Foundation, Wolfson Foundation, Royal Commission for the Exhibition 1851, The Minerals Engineering Society, John and Ruth Howard Trust, Idlewild Trust, Individual Donors and associated Gift Aid

Towards the ‘Development’ phase of a project to redevelop Neville Hall

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VirtualSignature Transaction Ref. UE2S-DGRD-VMRZ 29 Jun 2022 05:06:13 BST (UTC +1) D 4/4 P 30/32

THE COMMON ROOM OF THE GREAT NORTH LIMITED (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 June 2021

17. Operating Lease Commitments

At 30 June 2021 the charity had total commitments under non-cancellable operating leases as follows:

Category
Operating leases which expire:
Within one to two years
At 30 June 2020 – operating leases to expire within one
to two years		 Rent
£
-
4,800		 Equipment
£
-
-

18. Financial Commitments

The amount committed but not spent at the year-end amounts to £Nil (2020: £2.8m) in in respect of the capital development programme of Neville Hall, which was completed by the year ended 30 June 2021.

19. Contingent Liabilities

The accounts are approved by the board noting that there are two outstanding claims against the charitable company being brought by two former employees.

The first claim is for unfair dismissal. The board have received legal opinion that whilst the size of the claim, if successful, would be material to the financial statements (up to 52 weeks salary costs for both employees) the likelihood of success of the claim is remote. The second claim is for unlawful deduction. The board have received legal opinion that whilst the claim has a possible chance of being successful, the size of the claim would be capped to a maximum of £25,000.

The trustees have not included provision in the financial statements for either of these claims on the basis that their success only being remote for the unfair dismissal claim and possible for the unlawful deductions claim.

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VirtualSignature Transaction Ref. UE2S-DGRD-VMRZ 29 Jun 2022 05:06:14 BST (UTC +1) D 4/4 P 31/32

THE COMMON ROOM OF THE GREAT NORTH LIMITED (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 June 2021

20. Related Parties

The Common Room of the Great North Limited (CRGN) have identified following relationships should be disclosed as related parties:

Party: Common Room Trading Limited Relationship: 100% Owned Subsidiary Nature of Transactions in the year: None

At 30 June 2021 and at 30 June 2020, CRGN owed £1 to Common Room Trading Limited in respect of unpaid share capital.

Party: North of England Institute of Mining & Mechanical Engineers (NEIMME) Relationship: Trustees in common and previous owner of Neville Hall

Nature of Transaction: Joint funding received for Neville Hall restoration from National Lottery Heritage and Reece Foundation, plus transfer of agreed assets and liabilities to CRGN with effect from 1 March 2019.

During the year, NEIMME purchased books from CRGN at a cost of £1,064 (2020: £nil).

At 30 June 2021 there is a contractual liability of £50,000 (2020: £75,000) payable to NEIMME, on the basis of £25,000 per annum and a liability of £5 (2020: £6) payable to NEIMME under the terms of the transfer agreement.

21. Analysis of Funds

Cash at bank
Amount due < 1 year
•
Founders Loan
•
Mortgage
•
NE LEP Loan
•
Overdraft
•
NIEMME
Amounts due > 1 year
•
Mortgage
•
NE LEP loan
•
Overdraft
•
NEIMME		 At 1 July
Cashflow
New
At 30 June
2020 £
£
Advances £
2021 £
352,133
(220,932)
131,201
(5,000)
-
-
-
(25,000)
5,000
(9,027)
(120,000)
-
25,000
-
-
-
(65,000)
-
-
(9,027)
(120,000)
(65,000)
-
(607,065)
(877,720)
-
(50,000)
9,027
120,000
-
-
(100,907)
(702,303)
(107,876)
-
(698,945)
(1,460,023)
(107,876)
(50,000)
(1,212,652)
(190,932)
(976,086)
(2,379,670)

31

VirtualSignature Transaction Ref. UE2S-DGRD-VMRZ 29 Jun 2022 05:06:14 BST (UTC +1) D 4/4 P 32/32

32