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2020-08-31-accounts

Registered Charity no. 1183771

Hopespring

Trustees Annual Report and Accounts Year Ended 31st August 2020

Hopespring

Year Ended 31st August 2020

Contents Page

Page
Legal and Administrative Information 1
Trustee's Annual Report 2
Independent Examiners Report 6
Statement of Financial Activities 7
Statement of Financial Position 8
Notes to the Financial Statements 9

Hopespring

Year Ended 31st August 2020

Legal and Administrative Information

Reference

The Charity is called “Hopespring” which is also known as Hopespring Sunderland and is registered with the Charity Commission for England and Wales. Hopespring is a Charitable Incorporated Organisation (CIO) incorporated on the 7th of June 2019.

Registered Charity Number 1183771 Registered Office Hopespring 10 Sea View Road West Sunderland SR2 9HA 7th of June 2019

Date of incorporation

The Trustees

The trustee's who have served from the 7th of June 2019 until the date this report was approved are:

Lois Gott Appointed 18/11/2019 Dr Chikezie Okike Appointed 07/06/2019 Dr Myra Belmont Herbert Appointed 15/08/2019 Joanne Dunnett Appointed 07/06/2019 Jenny Finlayson Appointed 09/06/2019 Resigned 24/09/2019

Key Management Personnel

Operations Manager Strategic Manager Social Care Manager Executive Head teacher Primary Bankers Lloyds Bank 54 Fawcett Street Sunderland Tyne & Wear SR1 1SF Independent Examiner: Nigel Wyatt BSC FCA Wyatt & Co Chartered Accountants 125 Main Street Garforth Leeds LS25 1AF

1

Hopespring

Year Ended 31st August 2020

Trustee's Annual Report

Mission Statement

Hopespring works throughout Tyne and Wear seeking to serve the various Educational, Physical and Mental Health needs of the young people in our region. With a highly committed team of trained staff and full time volunteers, we provide support and care for some of the most vulnerable people in society through our people-based interventions.

Principal Objects

The principal objects of the charity are as follows:

In fulfilment of the principle objects the following activities are undertaken:

Achievements and Performance

Hopespring Therapeutic Schools

Following extensive consultation with Together for Children, we opened a new school to serve the city of Sunderland. Hopespring Sunderland is now registered as an independent school with the Department for Education with places for up to twelve pupils aged 11-16 years who are demonstrating significant therapeutic need, including those who have been excluded from mainstream education and those who are at risk of permanent exclusion.

2

Hopespring

Year Ended 31st August 2020

Trustee's Annual Report

Our school in Newcastle has continued to expand and has supported 12 young people on roll full-time from 5 different Local Authorities. Staff have worked closely with families, schools, local authorities and supporting agencies to bring transformation to the lives of the young people in our setting.

Both of our schools have successfully supported young people to re-engage with learning, gain recognised qualifications and effectively transition on to further education or employment.

Our Therapeutic Schools have remained open throughout the Coronavirus pandemic, even staying open throughout half-term and summer holidays with staff working voluntarily to support the most vulnerable young people and families who have been adversely affected by the pandemic.

Mother & Baby Supported Accommodation

Our Mother & Baby Supported Accommodation has continued to provide tailored support and a safe nurturing environment to vulnerable pregnant young women and young mothers in Sunderland. Most of our young mothers are care experienced young people. We have seen amazing outcomes in the lives of many of our mums and their babies and have tailored support for those whose stories don’t progress as well.

Throughout the coronavirus pandemic, we took in multiple emergency referrals from social services throughout the North East as the pandemic caused young mothers domestic difficulties to exacerbate.

Support for care experienced young people

Each week we have provided in excess of 80kg of food to Sunderland’s Next Steps team to support care experienced young people transitioning into independent living. The donations included fresh vegetables and fruit, healthy ready meals, canned and packaged foods as well as toiletries, household cleaning products and other items essential for getting settled into independent living.

Christmas presents - cared for children

This year we provided 549 good quality Christmas gifts for the cared for children in Sunderland as well as over 100 presents for all those who had been adopted this year. We also gave over 150 luxury Christmas hampers with items donated by Together for Children staff to care experienced young people in Sunderland who have left care and would need Christmas goodies they would not otherwise have had.

Our team was able to raise the much needed funds by carol singing in our local supermarkets and receiving kind donations from the public.

3

Hopespring

Year Ended 31st August 2020

Trustee's Annual Report

Feature Plans

To open a Residential Childrens Home in Sunderland that accommodates up to three children, from the age of 12 -18, who have emotional and/or behavioural difficulties.

Reserves Policy

The Trustees and Management Team have developed the reserves policy to assist in strategic planning and considering how new projects or activities will be funded. This is also used when reviewing the financial year and to inform the budget process in consideration of balanced budgets or if reserves need to be drawn down or built up. The Charity's reserve policy also informs the budget and risk management process by identifying any uncertainty in future income streams and forecasting ahead for the forthcoming five years. The amount held in reserves is also monitored by the Trustees and Leadership Team during the course of the year as part of the charity's budgetary processes. The Trustees have adopted a reserves policy which they consider appropriate to maintain the activities of the charity in case of unforeseen circumstances or a drop in funding.

At the year end the Charity held more than three months of unrestricted funds. The formation of a designated fund did not take place during the financial year due to the set up and transitional year the Charity has gone through. It is the Board's intention over the medium term to set aside a designated fund for contingency purposes.

Governance Structure

Hopespring is a Charitable Incorporated Organisation. The governance of the Charity is overseen by the trustee's of which there must be a minimum of three members on the board at one time per the constitution. The day to day running of the organisation is delegated to the management team.

Trustee's meetings are held regularly throughout the year to give oversight and direction to the Charity.

Under the requirements of the constitution, in addition to the statutory powers of appointment, a new Trustee may be appointed by a resolution of the Trustees passed by a majority of the Trustees for the time being.

4

Hopespring

Year Ended 31st August 2020

Trustee's Annual Report

Public Benefit Statement

The Trustee's have referred to the Charity Commission's general guidance on public benefit when reviewing the Organisations aims and activities. The Trustee's are satisfied that the activities and aims of the Charity meet the guidance of Public Benefit outlined by the Commission.

Financial Review

The year ending 31st of August 2020 marked the first full year of activities undertaken with the organisational structure of Hopespring. The combined activities of the Charity has resulted in an income of £455,000 and expenditure of £362,000 leading to a surplus of £93,000. As part of the Charity's launch a range of generous grants and donations from supporters were given to help provide a firm financial foundation for the Organisation to operate. The total income from Grants and Donations amounted to £102,000 during the year. The provision of grants and donations during the year has put the Charity in a strong financial position to carry out its operations and invest in future activities against the backdrop of economic uncertainty caused by Covid-19 and Brexit.

At the year end the unrestricted funds were £87,719 and the restricted funds were £4,971.

Going Concern

The Trustee's are satisfied that the Charity is a going concern and do not know of any uncertainties regarding the organisations ability to continue operating as a going concern.

Approved by the Trustees of Hopespring

Name of Trustee:

----- Start of picture text -----
Lois Gott
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───────────────────────────────────────────────────

Signed on behalf of the Trustees: Date of approval:

─────────────────────────────────────────────────── 08/12/2020

───────────────────────────────────────────────────

5

Hopespring

Year Ended 31st August 2020

Independent Examiners Report

I report to the trustees on my examination of the financial statements of Hopespring ('the charity') for the year ended 31 August 2020.

Responsibilities and basis of report

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

I report in respect of my examination of the charity's financial statements 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 Act.

Independent examiner's statement

I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), 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:

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

  2. the financial statements do not accord with those records; or

  3. the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair' view which is not a matter considered as part of an independent examination.

I have 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.

09/12/2020 Nigel Wyatt BSC FCA Date: Independent Examiner 125 Main Street Garforth Leeds LS25 1AF

6

Hopespring

Year Ended 31st August 2020

Statement of Financial Activities

2020
Unrestricted Restricted Total
Funds Funds Funds
Note £ £ £
Income
Donations and legacies 41,627 60,782 102,409
Charitable activities 313,770 3,948 317,718
Activities for generating income 2 65 - 65
Investment Income 25 - 25
Transfer of charitable activities - 15,500 15,500
Other Income 19,323 - 19,323
────────── ────────── ──────────
Total Income 374,810 80,231 455,041
────────── ────────── ──────────
Expenditure
Expenditure on charitable activities 4 285,684 75,259 360,943
Expenditure on trading activities 5 1,407 - 1,407
────────── ────────── ──────────
Total Expenditure 287,091 75,259 362,350
────────── ────────── ──────────
────────── ────────── ──────────
Net income / (expenditure) 87,719 4,971 92,691
────────── ────────── ──────────
Net income and net movement in funds
Total funds brought forward 14 - - -
Transfers 14 - - -
────────── ────────── ──────────
Total funds carried forward 14 87,719 4,971 92,691
────────── ────────── ──────────

All income and expenditure derive from continuing activities.

The statement is a combined Statement of Financial Activities and Income and Expenditure Account for the purposes of meeting both companies act and charity SORP reporting requirements.

7

Hopespring

Year Ended 31st August 2020

Statement of Financial Position

2020
Note £
Fixed assets
Tangible Assets 10 31,213
Current assets
Debtors 11 4,224
Cash at bank and in hand 175,693
──────────
179,917
Creditors: amounts falling due within one year 12 65,975
──────────
Net current assets 113,942
──────────
Creditors: amounts falling due after one year 13 52,464
──────────
Total assets less current liabilities 92,691
──────────
Net assets 15 92,691
──────────
Funds of the charity
Restricted funds 14 4,971
Unrestricted funds 87,719
──────────
Total charity funds 92,691
──────────

Directors Responsibilities

These financial statements were approved by the board of trustees and authorised for issue :

Lois Gott Name of Trustee: ─────────────────────────────────────────────────── Signed on behalf of the Trustees: ─────────────────────────────────────────────────── 08/12/2020 Date of approval:

───────────────────────────────────────────────────

8

Hopespring

Year Ended 31st August 2020

Notes to the Financial Statements

1 Accounting Policies

Basis of Preparation

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities Financial Reporting Standards applicable in the UK and Republic of Ireland (Charities SORP 2019 FRS 102) and the Charities Act 2011.

Assessment of Going Concern

Preparation of the accounts is on a going concern basis. The trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern.

Fund Accounting

Unrestricted income funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the trustees, at their discretion, have set aside resources for a specific purpose.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor.

Further explanation of the nature and purpose of each fund is included in the notes to the accounts.

Incoming Resources

All incoming resources are recognised once the charity has entitlement to the resources, it is probable that the resources will be received, and the monetary value of incoming resources can be measured with sufficient reliability.

• All voluntary income from supporters are recognised as donations and are included in full, with associated Gift Aid receivable in the Statement of Financial Activities.

• Grants where entitlement is not conditional on the delivery of specific performance by the charity are recognised when the charity becomes unconditionally entitled to the grant.

• Income resources from charitable trading activities such as the letting of the building are accounted for when invoices are drawn up (as the point of entitlement).

• Donated services and facilities are included at the value to the charity where this can be quantified and the donation is material to the accounts.

• Gifts in Kind are accounted for at a reasonable estimate of their value to the charity or the amount actually realised.

• Volunteer time, the value of voluntary support for the work of the charity is not included in the accounts but is described in the accounts.

• Investment Income is included in the accounts when receivable.

9

Hopespring

Year Ended 31st August 2020

Notes to the Financial Statements

Resources expended

Expenditure is recognised on an accrual basis as a liability is incurred. Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out the resources and the amount of the obligation can be measured with reasonable certainty.

Governance Costs

Include costs of the preparation and examination of statutory accounts, the costs of the trustees' meetings and cost of any legal advice to trustees on governance or constitutional matters.

Liability Recognition

Abilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.

Tangible fixed assets

All assets costing more than £500 are capitalised and at historic cost. Fixed assets are stated at cost less accumulated depreciation. Depreciation is charged on furniture and equipment which is written off on a straight-line basis over time, estimated useful live of the asset.

Equipment 4 years straight line
Fixtures and Fittings 4 years straight line
Leasehold Improvements 15 years straight line

Pensions

The charity operates a defined contribution pension scheme. Contributions are charged to the Statement of Financial Activities as they become payable in accordance with the rules of the scheme.

Operating Leases

Rental charges payable under operating leases are charged on a straight line basis over the terms of the lease.

Taxation

The charity is exempt from tax on its charitable activities.

Period Of Accounts

The accounts cover at 15 month period from the 7th of June 2019 through to the 31st of August 2020. Hopespring started operating from the 1st of September 2019.

10

Hopespring

Year Ended 31st August 2020

Notes to the Financial Statements

2 Analysis of Income

Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Donations and legacies
Donations 26,805 34,827 61,632
Gift Aid 3,322 - 3,322
Donated Goods and Services - - -
Grants 11,500 25,955 37,455
────────── ────────── ──────────
41,627 60,782 102,409
Charitable activities
Placement and Referral Income 313,770 - 313,770
Housing Benefit Income - 3,948 3,948
────────── ────────── ──────────
313,770 3,948 317,718
Activities for generating income
Online Sales 65 - 65
────────── ────────── ──────────
65 - 65
Investment Income
Bank Interest 25 - 25
────────── ────────── ──────────
25 - 25
Transfer of charitable activities
Mother and Baby Home Activity Transfer - 15,500 15,500
────────── ────────── ──────────
- 15,500 15,500
Other Income
Volunteer Rental Income 19,323 - 19,323
────────── ────────── ──────────
19,323 - 19,323
────────── ────────── ──────────
Total Income 374,810
──────────
80,231
──────────
455,041
──────────

Government Grants

During the year Hopespring received government grants through the Covid-19 job retention scheme. The total amount received during the year was £4,805.21.

11

Hopespring

Year Ended 31st August 2020

Notes to the Financial Statements

Transfer of charitable activities

On the 1st of November 2020 the Mother and Baby Home charitable activity and fund balance transferred from Bethshan (North East) Charity number 1120015.

3 Donated goods, facilities and services

During the year Hopespring received 80kg of food per week from Fareshare to pass on and give to care experienced young people. Due to the quantity and nature of the goods no reliable estimate has been placed on the donation.

4 Expenditure on charitable activities by expenditure type

Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Administration and Communication 414 - 414
Building and Premises 84,301 18,092 102,393
Depreciation 5,489 1,357 6,846
Direct Activity Costs 32,060 4,856 36,917
IT and Computer 4,100 - 4,100
Professional, Legal and Governance 33,999 - 33,999
Salary and Staff Related Costs 125,320 50,954 176,275
────────── ────────── ──────────
285,684 75,259 360,943
────────── ────────── ──────────

5 Expenditure on trading activities

Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Hopespring Merchandise and Shop 1,407 - 1,407
────────── ────────── ──────────
1,407
──────────
-
──────────
1,407
──────────

6 Volunteers

The charity benefits greatly from voluntary contributions of time and money. It is estimated that the charity benefited from over 10,000 voluntary hours. The main bulk of this time is contributed from 7 full time volunteers. These volunteers give time towards areas such as but not exclusively fundraising, the running of Hopespring activities and administration. Due to the significant part that volunteers play to the running of the charity and its activities, Hopespring provide rental accommodation for certain volunteers.

12

Hopespring

Year Ended 31st August 2020

Notes to the Financial Statements

7 Independent examination fees

Fees payable to the independent examiner for:

2020
£
Independent examination and preparation of the financial 1,680
Payroll, bookkeeping and reporting services 1,884
──────────
3,564
──────────

8 Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

2020
£
Wages and salaries 131,872
Social security costs 5,978
Employer contributions to pension plans 9,094
──────────
146,944
──────────

As part of the transition arrangements of charitable activities moving from Bethshan (North East), it was agreed that Hopespring would cover the staff costs for the few months where the different charitable activities had transferred but the employment of staff had not. The total salary and employment costs recharged to Hopespring during this transition arrangement amounted to £13,601.

The average head count of employees during the year was as follows:

2020
Average Head Count 7

No employee received employee benefits of more than £60,000 during the year was as follows:

2020
More than £60,000 0

Key Management Personnel

The charity considers its key management personnel to be the Strategic Manager, Social Care Manager, Executive Headteacher and Operations Manager. The total employee benefits received by key management were as follows:

2020
£
Key management personnel employee benefit 82,177

13

Hopespring

Year Ended 31st August 2020

Notes to the Financial Statements

9 Trustee remuneration and expenses

The trustees did not receive any remuneration for their service as trustees. The charity did however use consultancy services from one trustee through their management consultancy business. Lois Gott is one of the director's of Revive Consultancy Limited (Company 08162406) who received payments for the consultancy work provided. The total consultancy fee's paid during the year was £21,710. The payments were made on the legal grounds that the charity constitution allows remuneration to trustees for providing services to the charity outside of the trustee's role. The consultancy service's were authorised by the other acting trustee's at that time.

None of the trustee's incurred out of pocket expenses during the year.

10 Fixed Assets

Fixtures and Leasehold
Equipment Fittings Improvements Total
£ £ £ £
Cost
At 7 June 2019 - - - -
Additions 18,540 4,919 14,600 38,059
────────── ────────── ────────── ──────────
At 31st August 2020 18,540 4,919 14,600 38,059
────────── ────────── ────────── ──────────
Depreciation
At 7 June 2019 - - - -
Charge for the year 3,405 1,032 2,409 6,846
────────── ────────── ────────── ──────────
At 31st August 2020 3,405 1,032 2,409 6,846
────────── ────────── ────────── ──────────
Carrying Amount
At 31st August 2020 15,136 3,887 12,191 31,213
────────── ────────── ────────── ──────────

11 Debtors

2020
£
Trade Debtors 1,279
Accrued Income 2,945
──────────
4,224
──────────

14

Hopespring

Year Ended 31st August 2020

Notes to the Financial Statements

12 Creditors: amounts falling due within one year

2020
£
Accruals 2,749
Deferred Income 50,540
Trade Creditors 2,828
Loans 9,857
──────────
65,975
──────────

Deferred Income Movement

Deferred Income Movement
Opening Deferred Released Closing
£ £ £ £
Placement and Referral Income - 50,540 - 50,540

At the year end invoices had been raised for school places relating to the 2020/21 year. This income has been deferred as the entitlement to the income had not yet passed as the service of educational provision had not been carried out at the point of the year end.

13 Creditors: amounts falling due after one year

Loans

2020 £ 52,464 ────────── 52,464

──────────

15

Hopespring

Year Ended 31st August 2020

Notes to the Financial Statements

14 Analysis of Charitable Funds

1 Sep 2019 Income Expenditure 31 Aug 2020
£ £ £ £
Unrestricted Funds
General Fund - 374,810 (287,091) 87,719
────────── ────────── ────────── ──────────
Total - 374,810 (287,091) 87,719
────────── ────────── ────────── ──────────
Restricted Funds
Covid-19 Job Retention Scheme - 4,805 (4,805) -
Mother and Baby Home - 20,948 (20,948) -
Children's Home - 2,450 - 2,450
Sunderland School - 28,150 (28,150) -
Newcastle School - 16,499 (16,499) -
Christmas Appeal - 6,818 (4,296) 2,521
Covid-19 Support - 500 (500) -
Care experienced support - 60 (60) -
────────── ────────── ────────── ──────────
Total - 80,231 (75,259) 4,971
────────── ────────── ────────── ──────────
────────── ────────── ────────── ──────────
Total Funds - 455,041 (362,350) 92,691
────────── ────────── ────────── ──────────

Covid-19 Job Retention Scheme

Funding received from the UK Government as part of the Covid-19 economic support package. The grants received are only to be used to pay the salaries of those employees whom have been furloughed during the pandemic.

Mother and Baby Home

The transfer of the closing funds balance from Bethshan (North East) as part of the transfer for charitable activities when the Mother and Baby Home transferred to Hopespring. At the point of the transfer the funds were restricted the Mother and Baby Home activities.

Grants income for the day to day running of the home.

Housing benefit support payments paid directly to the charity relating to the benefit entitlement of the service users.

£
Bethshan (North East) 15,500
The William Leech Trust 1,500
Housing Benefit 3,948
──────────
20,948

16

Hopespring

Year Ended 31st August 2020

Notes to the Financial Statements

Children's Home

Funds and donations received and restricted for the set up and running of a Children's Home based in Sunderland.

Sunderland School

Funds and donations received and restricted for the set up and running of a Therapeutic School based in Sunderland.

Grants and Donations received and fully spent during the year include:

£ KeyFund 2,750 Siobhan Dowd Trust 400 The Ballinger Trust 15,000 Sunderland Mayoral Foundation Donation 10,000 ────────── 28,150

Newcastle School

Funds and donations received and restricted for the running of a Therapeutic School based in Newcastle.

Grants and Donations received and fully spent during the year include:

£ Voluntary donations from supporters 16,499

Christmas Appeal

Funds and donations received and restricted from the 2019 Christmas Appeal to raise money for Christmas gifts for the cared for children in and luxury Christmas hampers for care experienced young people in Sunderland.

Covid-19 Support

Funds and donations received and restricted for the provision of food for those in need during the Covid19 pandemic.

Care Leavers

Funds and donations received and restricted for the provision of food and gift hampers for care experienced young people transitioning to independent living.

17

Hopespring

Year Ended 31st August 2020

Notes to the Financial Statements

15 Analysis of net assets between funds

Unrestricted Restricted Total Funds
Funds Funds 2020
£ £ £
Fixed Assets 31,213 - 31,213
Current Assets 174,945 4,971 179,917
Creditors less than 1 year (65,975) - (65,975)
Creditors greater than 1 year (52,464) (52,464)
────────── ────────── ──────────
87,719
──────────
4,971
──────────
92,691
──────────

16 Events after the Reporting Period

After the year end a non-adjusting post balance sheet event took place. At the very end of October 2020 the UK Government announced a further lockdown in England that was expected to last until the start of December 2020 but could be extended further. This event has not materially and directly effected the day to day running of the Charity's activities. However it is expected that the national lockdown will effect the fundraising activities that would normally take place over the Christmas period.

17 Related party transactions

During the year there have been a number of related party transactions.

The related parties are as follows:

Bethshan (North East)

Trustee Joanne Dunnett's spouse, Tim Dunnett is the chair of Trustee's for Bethshan (North East). As part of the transfer of charitable activities from Bethshan (North East) to Hopespring the following transactions took place during the year:

2020
£
Income 16,500
Expenditure 44,635

18 Operating lease commitments

The total future minimum lease payments under non-cancellable operating leases are as follows:

2020
£
No later than 1 year 89,938
Later than 1 year but less than 5 years 466,976
──────────
556,914
──────────

18

Hopespring

Year Ended 31st August 2020

Notes to the Financial Statements

19 Transfer of charitable activities

Prior to the legal formation of Hopespring as a charitable incorporated organisation (CIO), Hopespring operated operated as a department under the legal and governance structure of Bethshan (North East) charity number 1120015.

Between September and December 2020 the charitable activities which had historically being operating within Bethshan (North East) were transferred into Hopespring.

As part of the transfer arrangement Hopespring repaid a loan which had been taken out by Bethshan (North East) to fund the activities of the Newcastle School. Hopespring paid £16,736 to Bethshan (North East) in order to settle the outstanding loan.

This payment is included within charitable activities expenditure on the Statement of Financial Activity.

19