Heart Wood TAR / financial statements 2021- 2022 Charity Number 1182889 ## **HEART WOOD** **Report and financial statements for the year ended 31 March 2022** 1 Heart Wood TAR / financial statements 2021- 2022 Charity Number 1182889 ## **HEART WOOD CHARITY** ## **Reference and administrative information for the year ended 31 March 2022** |**Charity Number:**|**1182889**|| |---|---|---| |**Trustees:**|**Sue James (Chair)**|| ||**Stephanie Ellis (Treasurer)**|| ||**Judi Perry**|| ||**Nancy Rios**|| |**Principal Office:**|**12 Woodside**|| ||**Hexham**|| ||**NE46 1HU**|| |**Bankers:**|**Co-Operative Bank**|| ||**P.O. Box**|**48**| ||**1 Balloon Street**|| ||**Manchester**|| ||**M60 1GP**|| |**Independent Examiner:**|**Karen Rae FCCA**|| ||**Armstrong Watson**|| ||**15 Victoria Place**|| ||**Carlisle**|| ||**CA1 1EW**|| 2 Heart Wood TAR / financial statements 2021- 2022 Charity Number 1182889 ## **HEART WOOD** ## **TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2022** ## **Introduction** The trustees present their report and the unaudited financial statements for the year ended 31 March 2022. The trustees have prepared the annual report and financial statements in accordance with the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" issued in January 2015. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** Heart Wood is a registered charity number 1182889. It was registered with the Charity Commission on 9 April 2019 and is constituted as a Charitable Incorporated Organisation. Its Constitution was adopted on 20 September 2018. The charitable objectives of Heart Wood are “to improve the mental health of people with a focus on men through evidence-based, person-centred counselling and psychotherapy projects delivered primarily outdoors.” ## **Governance** The Management Committee comprises a minimum of three trustees, who are charity trustees for the purpose of charity law. Trustees are appointed by other trustees. ## **Trustee Induction and Training** A Trustee Information Pack is available to potential and new trustees. Potential trustees are invited to attend a trustee meeting to find out more about the workings of the Management Committee and the governance of the charity, after which they may feel better informed to make the decision to put themselves forward to become a trustee. During an induction period of six months after appointment, new trustees are introduced to the charity, their legal obligations under charity law, the content of the governing document, the trustees and the decision-making process, the business plan and financial performance of the charity. After six months, the current trustees will vote to invite the new trustee to be officially appointed. Trustees are encouraged to attend appropriate training events that will support effective conduct in their role. ## **Risk Management** Where appropriate, policies and procedures or systems have been put in place to mitigate the risks the charity might face. Significant external risks to funding, and the nature of funding across the Community and Voluntary Sector, have led to the development of a longterm strategic plan including the identification of priority activities in relation to income generation. 3 Heart Wood TAR / financial statements 2021- 2022 Charity Number 1182889 Policies and procedures exist to ensure compliance with health and safety of all staff, volunteers, and beneficiaries of the charity. This includes the provision of adequate insurance cover and risk assessment of all charitable activities. These policies and procedures are reviewed annually or more frequently, on change of circumstances, to ensure that they continue to meet the needs of the charity. ## **OBJECTIVES AND ACTIVITIES** ## **Public Benefit** In shaping the objectives for the year and in planning the activities, the trustees have considered the Charity Commission's guidance on public benefit, including the guidance 'public benefit: running a charity (PB2)'. The charity provides group counselling in a nature setting for people, primarily in South West Northumberland, suffering with poor mental health, including those with complex and enduring poor mental health. The current provision is: - Men’s Group - group sessions for men aged 25+ - Active Survival - group sessions for young adults aged 16-24 The charity also provides training led by the Lead Facilitators, available to the charity’s Cofacilitators and other therapists interested in learning more about the Heart Wood Approach (https://www.heartwoodcharity.org/the-heart-wood-approach) . ## **ACHIEVEMENT AND PERFORMANCE** Heart Wood have continued to develop projects and training the offer in this period. The following activity was delivered: - eighteen Men’s Group sessions for men aged 24+ taking place weekly between April and August 2021 in private woodland at Minsteracres Retreat Centre, engaging with 7 men - eight _Active Survival_ pilot open sessions for young men aged 18-24. These took place monthly on Saturdays at the Thorneyford site between April and August 2021, engaging with 6 young men - - - - seven monthly taster sessions for Hexham Youth Initiative young people aged 16-24 between July 2021 and March 2022 engaging with 5 young people - five Men’s Group Connecting Sessions between September 2021 and February 2022 engaging with 15 men - one Men’s Group taster sessions specifically for new participants in March 2022 - training programme for 5 therapists with a view to them being brought on board as Heart Wood facilitators to enable the charity to sustain or its provision 4 Heart Wood TAR / financial statements 2021- 2022 Charity Number 1182889 ## **FINANCIAL REVIEW** The charity remains grateful for the help and support given by local government agencies, charitable trusts and other sources of fundraising and donations. The charity also recognises the valuable contribution made by individuals and supporters. Total income, including these fees, grants, fundraising and donations, in the year ended 31 March 2022 was £49,533 (2021: £32,692). Grants received in this period were: National Lottery Reaching Communities (£28,937.00) Greatham Hospital of God (£1,000) Hadrian Trust (£1,000) Sir James Knott (£750) Arnold Clark (£1,000) Awards For All (£9,228) – restricted fund for activity in next period Allen Lane Foundation (£3,000) – restricted fund for activity in next period Total costs in 2022 were £45,993 (2021: £15,879). Total cash funds at 31 March 2022 were £25,048 (2021: £21,508) of which £12,820 was unrestricted and £12,228 was restricted. ## **Reserves Policy** Heart Wood does not yet have any reserves at present. The Trustees are creating a Reserves Policy for the period 2023 – 2026 as part of the new Business Plan, with the aim to build a reserve of sufficient unrestricted funds to cover three months' operating costs, plus exit charges. This figure has been identified following consideration of the main financial risks to the charity once the staff are moved from short term freelance contracts to payroll. The strategy will be to build reserves through economies of scale wherever possible, suitable cost control, and seeking additional funding to meet essential expenses which underpin the provision of service. The trustees will regularly review the level of unrestricted reserves at Management Committee meetings. ## **Grant Making Policy** The Charity does not make grants. ## **Investment Policy** The charity holds no investments, other than reserve funds held in interest bearing bank deposit accounts, and as such has no formal investment policy. 5 Heart Wood TAR / financial statements 2021- 2022 Charity Number 1182889 ## **PLANS FOR FUTURE PERIODS** Our main aim this year is to continue to find funds to support the most disadvantaged and vulnerable people in our community. We will expand our Men’s Groups to two running concurrently on Friday’s at Minsteracres and have developed a second site there. We will pilot a partnership with the Hexham Youth Initiative to offer fortnightly sessions specifically for their young people (men and women). We will publish the Heart Wood approach on our website. We will write a business plan for the period 2023 – 2026 and look to make the organisation more sustainable as we expand our delivery. ## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES** Charity law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charity as at the balance sheet date and of its incoming resources and application of resources, induding income and expenditure, for the financial year; in preparing those financial statements, the trustees should follow best practice and: - select suitable accounting policies and then apply them consistently - observe the methods and principles in the Charities SORP - make judgements and estimates that are reasonable and prudent - state whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is not appropriate to assume that the charity will continue on that basis. The trustees are responsible for maintaining proper accounting records which 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 trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection or fraud and other irregularities. 6 Heart Wood TAR / financial statements 2021- 2022 Charity Number 1182889 ## **RESPONSIBILITIES OF THE TRUSTEES** Trustees who served during the year and up to the date of this report are set out under Legal and Administrative Information. In accordance with charity law, as the charity's trustees, we certify that: - so far as we are aware, there is no relevant information of which the charity's examiner is unaware; and - as trustees we have taken all the steps that we ought to have taken in order to make ourselves aware of any relevant accounts information and to establish that the charity's examiner is are aware of that information. The trustees' annual report has been approved by the trustees and signed on their behalf by SIGNED: Sue James (Chair) DATE: 28 November 2022 7 CHARITY COMMISSION FOR INGLAND Aho WIIES H••rt Wood 1182B89 Receipts and payments accounts CC16a For the period from To 01.,04r2021 311Q2r2022 Section A Receipts and payments ijnrestricted funds Restrl¢ied fundj Endowmefit fund• Total lunds Last yèar i• th• nMreBI£ to wre8L£ io thq r*4wi£ A1 Recei is Grnn.. Recei'éabès Dor4UQnS &JSl fy Frivuiè 31.9J7 1.669 649 15,278 47.215 32.392 Sub tot•l(Gros$ incon79 for ARI 15,278 411.533 32.892 A2 Asset ¥nd inv•$trngnt salqs. Isw tabl•l. Sub total Total recelpts 34.255 15.278 49.533 32.692 A3Pa •nt• Cor• Coslb 13.5M 5,967 1091 13.$•4 5.967 2.091 CPD Evaluatso Yodn Èr mens Older tn&ns Lao$ & cads p J.isB ecl 6.355 Ac￿1 su￿¥41 4,337 1S.714 41,¢93 4,JOD 8.637 15.714 45.993 Sub tolal 4.3011 15.879 IA4 Ass¢1 ènd In￿SIM￿l purchases, $ptr table Sub total Total payments 41,693 4J.993 15,879 N•t ol rKoipts/(paymentsJ AS Tran8f•rs b•twe•n funds A6 Cash funds last y•ar énd Cash funds thls year end 10.97 16.813 20.258 12.UO 1.250 12.228 21.508 25.048 4.695 21.508 CCXX Rl accoun15 ISS Section B Statement of assets and liabilities at the end of the period Uni•strlcted f*Jnds Restrided funds lo y••ro*t£ EfidowmtrnL lundi ta r••r•¥l £ B1 C•sh fund• 13.21• Total cash lunds 12.8ZO 12.228 UnrestrlGt•d tund$ Endowmwrt lunds to n•ar•Bt£ tunds Detail$ Fufid tawf4c Details B3 Inve$trn•nt a89ets Fund lo wN¢h •S••l Dotai15 Co¥% It)p￿￿1￿) B4 Assets rtlained forthe ¢harity s own Furnd io b¥h•n d Delails ¥pnil 85 Li8biliti¢$ S4n¢d by gn¢ 1ruilo￿Q¥l bettal¢ of all thfy trU$tees Prinl N8mt Datr of roval Sonalure 30m&2Q22 CCXX R2 •c¢oun¥ Iss 3W120Z2 HEART WOOD INDEPENDENT EXAMINATION REPORT TO THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022 Indgpgndent examlnerfs report to Ihe Trustees of Heart Wood (the 'charlty? I rewt to the charity Trustees on my exarnination of the a(xounts of the tharity fc￿ the year ended 31 Mardb 2022. RaJponsibilitiès and basis of report As the Trustees of the charity are reSPC￿s1b1e for Ihe preparation of the arAx)unls in arn)rdanc8 WTth th8 requirem8nts ofthe Charities Acl 2011 fft 2011 Ad). I reF*Jt in resF*Ct of my eX￿InatiOn of the charitys accounts carried out under se(*on 145 of the 2011 Act and in Ca￿ng out ffly examination I have folluwed the DirBCtion5 gven by the Charity CunmisshM urKler seclion 145ISMb} of the 2011 ACL Independent examlnerfs ststement I have G(Mnpleled my 8xaminalK)n. I can confiryn thal ￿ mallers have come to my attenti¢￿ in conr￿¢1￿ with the exafflination gI￿ng me cause to believe Ihal in any material respecL" - a(xounting records ￿Pre not kept in respect of the charity a5 required by sect}C￿ 130 of the 2011 ACL. or - the aLKOUnt5 do not aLKord wth such reLX)fds'. or - ts accounts do not c￿pIY wth Ihe applicatAe wuirements concemiThJ the form a￿1 conlent of accounts set out in lh8 Charities {Accounts and Reports) Regulabons 2008 other than any requirement that the accounts give a Irue and fai view Nthich is not a matter Cons￿￿er8d a5 Fqrt of an independent examinat1¢￿. I have no conc*ms and have come across ￿ other matters In ¢xnneclion with ts examinabon to %thch attenticffi shcrfjld be drav•ing in this rep)rt in order to e￿a￿4e a prcper understandiThJ of the accwntS to k reached. This rewt is fflade solety lo th8 chartys Twstees, a5 a bcxjy, in XDJrdance Part 4 of the Charilies IAccoun15 and Reports) RegUlati￿S 2008. My work has been undertaken so that I might slate to the charivs Trustees those matters I am required to state to them in an Independent examinerfs report and for no other purpose. To Ihe fullest extent permitted by law, I do nol accept or assume responsibility lo an￿ne other than tha charity and the charitys Trustees as a body. for my ovm w￿lk or for this report. Karen Rae FCCA Dated.. 30 August 2022 Armstrong Watson Audlt Llrni*d Chartered Accountants Ca￿1￿e