**Registered Charity Number 1186306** **NORTHERN HEARTLANDS CIO** (A CHARITABLE INCORPORATED ORGANISATION) **REPORT AND ACCOUNTS For the year ending 31 March 2026** **NORTHERN HEARTLANDS CIO (A CHARITABLE INCORPORATED ORGANISATION) YEAR ENDED 31 MARCH 2026 TRUSTEES’ REPORT** As the Board of Trustees, we present our report and financial statements for the year to 31 March 2026. ## **REFERENCE AND ADMINISTRATIVE DETAILS** **Registered Charity Number** 1186306 **Registered Office** 3 Witham Studios, Hall Street, Barnard Castle DL12 8JB **Independent Examiner** Pete O’Hara FCA, Chartered Accountant, 26 La Sagesse, Jesmond, Newcastle upon Tyne NE2 3AF ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Governing Documents** Northern Heartlands CIO was established as a Charitable Incorporated Organisation (CIO) on 13 November 2019. As a CIO it is governed by its constitution. ## **Structure and Governance/ Board of Trustees** The charity currently has a board of seven non-executive Trustees. The Trustees of Northern Heartlands CIO during the year and to the date of signing this report were as follows: Mr A M J Harrington Mrs J Irving (nee Hartley) Ms L Jenkins Mr C Jones Appointed 15 December 2025 Mr B Tinkler Mrs A Tutin Mr G D Young ## **Recruitment and Appointment of Board of Trustees** One new Trustee was appointed in December 2025 and Trustees continue to consider recruitment of additional board members. A Trustee Skills Matrix was completed, and the Board remains committed to increasing its number and diversity. ## **Trustee Induction and Training** Trustees are provided with a range of resources to support their understanding of Northern Heartlands’ activities and outlining Trustee duties and responsibilities. ## **Management** Day-to-day operation of the charity during 2025-26 was delegated to the Director (0.8 Full Time Equivalent) and Senior Manager (Full-Time). The team includes an Office and Systems Manager (FT), a Creative Communities Co-ordinator (0.8FTE) and a freelancer for Social Media. Payroll is managed externally by Allen Sykes Accountants 2 **NORTHERN HEARTLANDS CIO (A CHARITABLE INCORPORATED ORGANISATION) YEAR ENDED 31 MARCH 2026 TRUSTEES’ REPORT** ## **OBJECTIVES AND ACTIVITIES** ## **Charitable Purpose, Aims & Objectives** ## **Northern Heartlands delivers trusted creative community engagement** Our principal charitable objective is " _To advance the education of the public in the subject of the arts through the provision of seminars and workshops_ ". We work with people to celebrate the unique identity of a place, valuing its heritage and culture, and fostering creativity. By amplifying local voices, we help empower communities to overcome challenges and imagine new possibilities so meaningful change can happen. Our programmes involve bringing together artists, communities and partners in their own spaces and places through consultation, engagement, activity and events. We work in places where creative engagement can make a big difference and can lead to policy and practice which is better informed by community need and aspiration. ## **Our Vision and Mission** Northern Heartlands’ Vision is for strong, connected, and healthy local communities, where people are actively involved in shaping their lives and their environment. Northern Heartlands’ Mission is to engage and support local people and communities by using creativity to develop agency, build social capital and foster individual potential. We aim to achieve this mission by: - Recognising that each place we work in, and each community we work with, is unique - Working with creative practitioners in everything we do - Ensuring we always work collaboratively with communities - Always reviewing, learning from and adapting our approach and sharing our learning with others - Supporting artists and creative practitioners to reach their full potential - Working in partnership ## **Our Values:** We aspire to be: - Committed - to what we do, to each other to those we work with - Trusted - by each other and by those we work with - Dignified - in our own actions and by respecting the dignity of everyone we work with - Ambitious - for ourselves, for our organisation and for the places, the communities, and the individuals we work with - Authentic - in all of our actions - Humble - in respecting and valuing the opinions and beliefs of others 3 **NORTHERN HEARTLANDS CIO (A CHARITABLE INCORPORATED ORGANISATION) YEAR ENDED 31 MARCH 2026 TRUSTEES’ REPORT** ## **OBJECTIVES AND ACTIVITIES (CONTINUED)** ## **Public Benefit** The Trustees understand and have discussed the implications of the provisions of the Charities Act 2006, which requires all charities to be able to 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 key principles. ## - Principle 1 There must be an identifiable benefit, or benefits The benefits from our work are: - Increased wellbeing for individuals, particularly those living in areas of socio-economic deprivation and/or deeply rural areas in Durham living with poor mental health and/or loneliness _This included Take Part in Teesdale delivered 14 weekly creative session in Barnard Castle, reaching people referred through Social Prescribing Link Workers. Average attendance was around 9-10 per session with participants reporting increased confidence, curiosity and connection through the Creative Habits of Mind Framework._ - Increased community cohesion in areas often marginalised or underserved _This included Place Lab Shildon which engaged 323 children, young people and adults through artist Vic Melody’s residency, meeting people in community settlings and across 18 organisations._ - Increased awareness of environmental issues _This included The Tees Swale Creatively Connected programme which brought around 100 people together at the Raby Castle Sharing event which celebrated the programme and explored the role of arts and creative enquiry in nature recovery. Senior representatives from Natural England, National Lottery Heritage Fund, farmers, academics, ecologists and communities joined the event._ - Increased support for the creative sector _This included supporting three creative practitioners with letters of support and guidance, ongoing artists development sessions alongside delivery such as action learning activity as part of Take Part in Teesdale and we proposed an approach to Cultivate Commissions 2026/7 which was successful as part of Into the Light Durham’s Place Partnership Programme._ ## - Principle 2 Benefit must be to the public, or a section of the public All elements of our work provide benefit to the public in general. _Our programmes are free to participate in and designed to reach people who can face the greatest barriers to cultural and creative engagement. Often these are areas that can lack infrastructure and opportunity. We work in partnership to encourage these voices to be heard in different ways._ 4 **NORTHERN HEARTLANDS CIO (A CHARITABLE INCORPORATED ORGANISATION) YEAR ENDED 31 MARCH 2026 TRUSTEES’ REPORT** ## **OBJECTIVES AND ACTIVITIES (CONTINUED)** ## **Reserves Policy** The Trustees have reviewed the charity's needs for reserves in line with the guidance issued by the Charity Commission. The Trustees aim to firstly hold a level of unrestricted Reserves which enables the charity to have sufficient financial resources to meet various liabilities which would crystallise if Northern Heartlands’ funding were to be withdrawn and/or it were unable to continue operating. At present, the Trustees estimate that the Unrestricted Reserves required for such purposes amount to approximately £53,000. If possible, the Trustees then aspire to retain an additional allowance of £10,000 to £20,000 to enable the charity to respond flexibly to issues or appropriate initiatives which might be identified outside of its annual budgeting process. The required level of Reserves is therefore in the range of £63,000 to £73,000. Northern Heartlands currently has total Unrestricted Reserves at 31 March 2026 of £88,347 (2025: £59,151). Free Reserves, defined as Unrestricted Funds minus any Designated Funds minus the value of Tangible Fixed Assets are £88,259 (2025: £57,971), which is slightly above the target level but is felt to provide a modest degree of additional contingency. The Trustees review specific liabilities at every quarterly Board meeting. The Reserves Policy is revisited by the Board annually in the light of progress against budget and is updated at the time of drafting the annual accounts. ## **Investment Policy** The charity has the power under the Constitution to make any investment which the Trustees see fit. ## **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. Northern Heartlands has a risk management strategy in place that comprises: - an annual review of the strategic risks the charity may face - the establishment of systems and procedures to mitigate identified risks - the implementation of procedures designed to minimise any potential impact on the charity should those risks materialise. The Trustees are satisfied that appropriate financial systems and controls are in place, together with appropriate employment policies and practices. The Trustees consider the key risks facing the charity at this time and the mitigating actions taken to be as follows. 5 **NORTHERN HEARTLANDS CIO (A CHARITABLE INCORPORATED ORGANISATION) YEAR ENDED 31 MARCH 2026 TRUSTEES’ REPORT** ## **OBJECTIVES AND ACTIVITIES (CONTINUED)** ## **Risk Management (Cont.)** The Trustees consider the key risks facing the charity currently are as follows: |**Risk**|**Mitigation**| |---|---| |Sudden loss of key personnel|Ability to employ temporary freelance staff| |Organisation’s inability to cover core costs owing
to lack of unrestricted funding|Careful budgeting of unrestricted funds
together with development of new business
strategy and diversification of income
streams| |Original Board members nearing retirement from
office per Constitution (maximum of 3 x 3yr terms
as a trustee)|Trustee Recruitment policy in place; as of
January 2025, active recruitment underway
for new Trustees; retain Trustee opportunity
on NH website; original Trustees' tenure
staggered| |Competition for funding from major funders, e.g.,
NLHF, Paul Hamlyn, Esmee Fairbairn Foundation,
with other organisations|Broaden approach to funders; develop new
business model to support diversified income
streams; continue to develop partnership
working| |Insufficient reserves thus not meeting current
policy|Careful monitoring of cash flow on a regular
basis; strategy in place to build up reserves
using robust full cost recovery calculations.
Reserves policy updated in line with Charity
Commission guidance March 2026.| |Current office space not being fit for purpose|Making effective use of current available
space; flexible home working options for staff| |Negative cash flow owing to grant payment
schedules|12-month rolling cashflow regularly monitored| The Trustees also manage the general financial risks by ensuring that: - prudent budgets are set for each financial year - • the charity maintains a low cost-base 6 **NORTHERN HEARTLANDS CIO (A CHARITABLE INCORPORATED ORGANISATION) YEAR ENDED 31 MARCH 2026 TRUSTEES’ REPORT** ## **ACHIEVEMENTS AND PERFORMANCE** **Summary of the Charity’s Main Achievements During the Year** Across the year, Northern Heartlands worked alongside communities in Teesdale, Weardale, Swaledale, Shildon and beyond, co-creating activity that responds to place, builds trust and leaves something lasting. We commissioned artists/creative practitioners who worked alongside communities and partners to contribute to regional landscape and environment agendas and carried out work that deepened our understanding of what community-led creative practice can do for positive wellbeing. 2025/26 has been a year of transition. In March 2026 founding Director Jill Cole retired. This report reflects her legacy as much as it highlights our journey going forward as Katy Milne steps into her role as Creative Director. We have invested time and resource in organisational development and strategic business planning work throughout the year to deepen our impact and strengthen our partnerships. The summary below outlines what we did across the year and why it matters, at a glance: |Creativepractitioners/artists employed|20| |---|---| |Days of employment|203 days| |Participants and beneficiaries engaged|Total - 2,982
Young People - 307
General public–2,675| |Locations/venues we worked in|32| ## **Health & Wellbeing** Our health and wellbeing strand in 2025/26 centred on the ‘Take Part in Teesdale’ Programme, which was first delivered in 2024/25 and extended into this year with a further £10,000 awarded from Creative Lives UK Know Your Neighbourhood DCMS Fund. Weekly artist-led participatory workshops took place in Barnard Castle and three creative practitioners co-designed and co-facilitated a flexible and responsive programme supporting those experiencing loneliness and isolation. Participants were referred through Social Prescribing Link Workers and partner organisations. During Take Part in Teesdale the following took place: 14 workshops, 130+ total attendances, 3 creative practitioners, X4 action learning sessions and x3 training sessions. “ _Since joining it’s really helped my own mental wellbeing… it has genuinely helped with my confidence getting involved with people again.”_ _“I probably wouldn’t have gone to some of those classes… I surprised myself while taking part.” “I have made some really good friends… it’s been great, and I have learned new things.”_ _“It’s been really lovely… to have met so many wonderful people whose company I have enjoyed.”_ - 92% of respondents recorded an increase or sustained level in their ability to be curious - 92% recorded an increase or sustained level in their ability to keep going - 75% recorded an increase or sustained level in their ability to come up with ideas and solutions - 83% recorded an increase or sustained level in their ability to stick with things even when they feel difficult 7 **NORTHERN HEARTLANDS CIO (A CHARITABLE INCORPORATED ORGANISATION) YEAR ENDED 31 MARCH 2026** **TRUSTEES’ REPORT** ## **ACHIEVEMENTS AND PERFORMANCE (CONTINUED)** **Summary of the Charity’s Main Achievements During the Year (Cont.)** ## **Connected Communities** Our Connected Communities strand brought together place based creative approaches in Shildon and Weardale, as part of the Into the Light Durham Place Partnership Programme. This approach is rooted in Northern Heartlands’ principles of listening to communities, working with existing groups/activity and supporting capacity building that lasts beyond our involvement. ## Place Lab Shildon The Shildon element of our PLACE Lab work has been funded by National Lottery Heritage Fund, with a focus on heritage and young people, as part of the wider Strategic Place work in Shildon and Newton Aycliffe in County Durham. Across the year we delivered a programme of public events and gatherings designed to use artsbased methods to gather community insight. This included: - S&DR200 (August 2025): Unfolding Theatre used creative interventions at the Stockton and Darlington 200 family fun day to elicit views from children and young people about Shildon. - Shildon Cavalcade (September 2025): Joe Bunce (Paperfinch) was commissioned by Northern Heartlands to create ‘The Time Train’ machine – a playful, imaginative and interactive digital experience exploring the community's heritage and the town’s future. Joe Bunce produced short films and participant responses which informed and helped shape the development of an artist brief. - Artists Residency (November 2025+): A co-designed artist in residence brief was created and a community led interview process took place which led to the appointment of artist/performer Vic Melody. During her initial residency activity in Q4, Vic engaged 323 children, young people and adults and through meetings met with more than 18 community groups, schools and youth organisations. Through informed conversation in familiar settings, she gathered rich insights into young peoples’ understanding of their heritage, what they value about Shildon and ways to work together throughout 2026/7 to explore together their hopes for the future. “ _I wish there could be more things to do. I wish there could be lots more stuff about.”_ _“I wish Shildon’s next generation will be the pioneers of the future of railways, building a society in which we would willingly live”._ - Live Performance (February 2026): Vic Melody performed her touring theatre show ‘Trouble, Struggle, Bubble and Squeak’ at Shildon Civic Hall in Q4 attracting 73 audience members. The post show Q&A enabled meaningful dialogue about local identity, lived experience and surfaced some current issues in the area - _“I enjoyed that the performance, that it is similar to my own experience of local life”_ 8 **NORTHERN HEARTLANDS CIO (A CHARITABLE INCORPORATED ORGANISATION) YEAR ENDED 31 MARCH 2026 TRUSTEES’ REPORT** ## **ACHIEVEMENTS AND PERFORMANCE (CONTINUED)** ## **Summary of the Charity’s Main Achievements During the Year (Cont.)** ## Place Lab Weardale In Weardale we spent the year building relationships and listening to communities. We provided shared spaces at agricultural shows for community partners to offer activity and gather insights to help inform a consultation session we facilitated. This gathering brought Weardale community partners together through shared priorities to shape the future of the PLACE Lab work. This led to the development of an artist brief to support partners to galvanise through some shared public art works across Weardale and support partners in their journey to establish shared aims and ambitions for the Dale. Community partners stated that this work will help to ‘ _increase connection between and visibility of the organisations and cultural activities happening in Weardale and help support a sense of pride and identity._ ’ ## **Landscape & Environment** Our landscape and environment strand has centred this year on Creatively Connected, which was a year-long creative enquiry project as part of the five-year high nature value farming programme - Tees Swale: _Naturally Connected_ . A programme led by North Pennines National Landscape Team and Yorkshire Dales National Park Authority. Five artists were commissioned to explore creative approaches to landscape, high nature value farming and nature restoration across the year. Activity included sound walks in Swaledale, the development of a ‘bog jumper, community knitting in Teesdale as well as film, photography and other creative community engagement work. Creatively Connected Knowledge Sharing Event: As Creative Producers for Creatively Connected, Northern Heartlands developed and delivered a knowledge sharing event at Raby Castle for 90 people including farmers, artists, policy makers, ecologists and community. The creative event raised the profile of the valuable role arts and creativity can play in the landscape and environmental sector. NPNL whole staff training: Katy and Jill led a whole staff event with the NPNL team and presented to the YDNPA team - exploring the role of creative and arts-based methods in their work. “ _Some of the most meaningful exchanges happened unexpectedly_ .” Artist Matt Denham “ _Real engagement is built when you return, when you follow up. That’s when people begin to trust the process...People were more willing to share when they saw I was committed to coming back - even when there was little to ‘show’ for it yet_ .” Artist Azadeh Faterhad “ _Sounds we hear today can speak to the story of what’s changed...Listening together can prompt reflection on what has changed and what endures_ .” Artist John Coburn " _Working with Northern Heartlands has helped us to be braver around using creative enquiry to explore aspects of our work, especially with the farming community. The arts are not an add on, they have helped us find ways to articulate what we do, and to provide broader pathways for people to engage with us, and with their landscape_ ” North Pennines National Landscape 9 **NORTHERN HEARTLANDS CIO (A CHARITABLE INCORPORATED ORGANISATION) YEAR ENDED 31 MARCH 2026 TRUSTEES’ REPORT** ## **ACHIEVEMENTS AND PERFORMANCE (CONTINUED)** ## **Summary of the Charity’s Main Achievements During the Year (Cont.)** ## **Creative Sector Support & Development** - Relationship & trust-based connections were established - Over 325 community events and workshops delivered with over 1,200 participants engaged - Organisational Learning Partner organisations began to adopt new approaches to community engagement, with staff incorporating creative methods into their ongoing work. Institutional Learning and Barriers Supporting artists and creative practitioners to reach their full potential is one of our core commitments as it runs through everything we do, from the way we commission artists to the development opportunities we create alongside delivery Developing practice: As part of ‘Take Part in Teesdale’ Northern Heartlands ran a parallel action learning and reflection programme with creative practitioners. All three Creative Practitioners also completed Barnardo’s Trauma Informed Care training. Cultivate Commissions: 2025/6 allowed time to reflect on learning from the 2024/5 Cultivate Commissions programme as part of Into the Light Durham Place Partnership. In 2025/6 we developed a proposal for the 2026/7 programme and secured the project lead role. This programme will utilise the connections established across Into the Light and support a programme of commissions for creative practitioners and communities to work together and explore creative practice across County Durham. Supporting Creative Practitioners: We offered advice and wrote letters of support for creative practitioners in pursuit of funding and commission work. We also supported artist Sam Slatcher in his proposal to Durham University for a year-long Fellowship and offered to act as host organisation to support this. This was secured and will take place from June 2026- June 2027. Marking a Milestone: A gathering on 6 March 2026 at The Witham Arts Centre marked an important moment for Northern Heartlands – celebrating Jill Cole’s career and legacy as she retired and the next chapter for Northern Heartlands. Designed to reflect Northern Heartlands’ values, the event brought together creatives, partners and friends to hear more about the next phase of Northern Heartlands work and its strategic direction. Poet Lizzie Lovejoy was commissioned to write a poem about Northern Heartlands and its impact, which also serves as a tool for our messaging and communications going forward. 10 **NORTHERN HEARTLANDS CIO (A CHARITABLE INCORPORATED ORGANISATION) YEAR ENDED 31 MARCH 2026** **TRUSTEES’ REPORT** ## **ACHIEVEMENTS AND PERFORMANCE (CONTINUED)** ## **Summary of the Charity’s Main Achievements During the Year (Cont.)** ## **Organisation and Business Development** A significant organisational development during 2025/26 was the retirement of founding Director Jill Cole and succession planning as Katy Milne prepared to step into role as Creative Director in April 2026. Jill and Katy worked in close partnership throughout the year to ensure a smooth handover, in the programme, relationships and vision for the organisation. The transition has been a thread through the year’s work including our communications, planning and in the purposeful gathering in March 2026. ## Business Development With funding from Esmee Fairbairn Plus and Business Durham, we commissioned Robert Laycock (Yes We Can) to help us develop a new business strategy, plan and model. This work built on investment from Pilot Light and the Weston Award. Business Durham support also unlocked additional support from RTC North to develop our marketing strategy and help us in the development of a refreshed website. We received support from the government funded Arrow Scheme through Newcastle University, which matched us with Academics, Dr Nicholas Cooke and Professor Simin Davoudi, who together produced a ‘proof of concept’ report about our work. This process has resulted in a clearer offer and supported the organisation to develop a new strategy that helps us identify relationship priorities. ## Culture Durham Jill Cole served as Chair of Culture Durham throughout the year, standing down in February 2026. During this period Jill helped develop the partnership, its website and its future governance. ## Training and Development ## Safeguarding - whole staff Lead and Manage – Senior Manager Unlocking Impact and Evaluation – Office and Systems Manager & Senior Manager ## Partnerships and Networks Partnerships and networks are fundamental to how Northern Heartlands operates. This year we have deepened relationships and developed new ones. These have included: - Durham County Council/Into the Light, North Pennines National Landscape and Yorkshire Dales National Park Authority, Creative Lives. - National Trust, North Yorkshire County Council, Rural Durham Community Research Network, Creative Health Pioneers Network - No More Nowt, Creativity Works, The Witham, The Bowes Museums, Teesdale Community Resources Hub, Weardale Together, North Pens, Wear’d Aliens, Weardale Museums, Shildon Town Council SKYPAN, Shildon Alive ## **Financial Review** The outturn for the year is an unrestricted surplus of £29,196 (2025: surplus of £17,651), leaving Unrestricted Funds at 31 March 2026 of £88,347 (2025: £59,151). 11 **NORTHERN HEARTLANDS CIO (A CHARITABLE INCORPORATED ORGANISATION) YEAR ENDED 31 MARCH 2026 TRUSTEES’ REPORT** ## **FUTURE PLANS** We move into 2026/27 with momentum, clarity and ambition for what’s next. Some of which includes: - PLACE Lab Shildon – cocreated work with Vic Melody and young people from Shildon, building on the residency work established in 2025/26 - Weardale Wonders – connected art works across five locations in Weardale – catalysing connection, visibility and pride - Waterlines – the development of a project exploring water demand through the heritage of the reservoirs – connecting upstream and downstream communities to each other, their place and the river - Cultivate Commission – leading this programme in Year 3 of Into the Light - Sam Slatcher Artists Fellowship - Development of the new NH strategy - Website Launch – summer 2026 - Outcome of ACE NPO 2027/28 extension bid – June 2026 - Ongoing business development and offer 12 ## **NORTHERN HEARTLANDS CIO (A CHARITABLE INCORPORATED ORGANISATION) YEAR ENDED 31 MARCH 2026** **TRUSTEES’ REPORT** ## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES** The Trustees are responsible for managing the business of the charity and may exercise all the powers of the charity unless restricted by the Charities Act or the constitution of the charity. The Trustees are responsible for the preparation of the financial statements for each financial year which show a true and fair view of the state of affairs of the charity as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparation of the financial statements the Trustees should follow best practice and: 1. Select suitable accounting policies and apply them. 2. Make judgements and exercises that are reasonable and prudent. 3. Prepare the financial statements on a going concern basis unless it is inappropriate 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. The Trustees are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities. ## **DECLARATIONS** This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (issued in March 2005 by the Charities Commission England and Wales). This report was approved by the Board of Trustees on 26 May 2026 and signed on its behalf by: **Graham Young Trustee/Chair** 13 ## **INDEPENDENT EXAMINER’S REPORT TO THE MEMBERS ON THE UNAUDITED ACCOUNTS OF NORTHERN HEARTLANDS CIO FOR THE YEAR ENDED 31 MARCH 2026** I hereby report to the Trustees/Members of Northern Heartlands CIO (Charity Registration Number 1186728) on the accounts for the year ended 31 March 2026 set out on pages 15 to 25. ## **Responsibilities and Basis of Report** As the charity’s Trustees (and also its directors for the purposes of company law), you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’). Having satisfied myself that the accounts of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act. ## **Independent Examiner’s Statement** I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: 1. accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or 4. the accounts have not been prepared in accordance with the methods or principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102)). 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. ## **Pete O’Hara, FCA, Chartered Accountant** ## **Fellow of the Institute of Chartered Accountants in England & Wales** 26 La Sagesse, Jesmond, Newcastle upon Tyne NE2 3AF 26 May 2026 ## **NORTHERN HEARTLANDS CIO (A CHARITABLE INCORPORATED ORGANISATION) STATEMENT OF FINANCIAL ACTIVITIES YEAR TO 31 MARCH 2026** |**Note**
**Income**
Income from Investments
3
Income from Grants, Donations &
Legacies
4
Income from Charitable Activities
5
**Total Income**
**Expenditure**
Expenditure on Charitable Activities
6
**Total Expenditure**
**Net Income/(Expenditure)**
7
Balance brought forward
**Balance carried forward at 31**
**March**
12|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**2026**
**Total**
**2025**
**£**
**£**
**£**
**£**
1,853
-
1,853
2,383
190,601
127,452
318,053
306,562
11,543
-
11,543
23,838| |---|---| ||**203,997**
**127,452**
**331,449**
**332,783**
174,801
96,926
271,727
338,363| ||**174,801**
**96,926**
**271,727**
**338,363**| ||**29,196**
**30,526**
**59,722**
**(5,580)**
59,151
10,844
69,995
75,575| ||**£88,347**
**£41,370**
**£129,717**
**£69,995**| The notes on pages 17 to 25 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. 15 ## **NORTHERN HEARTLANDS CIO (A CHARITABLE INCORPORATED ORGANISATION) STATEMENT OF FINANCIAL POSITION/BALANCE SHEET At 31 MARCH 2026** |**Notes**
**Fixed Assets**
Tangible Fixed Assets
10
**Current Assets**
Debtors
11
Cash at Bank and In Hand
**Creditors:**
Amounts Falling Due Within 1 Year
12
**Net Current Assets**
**Total Net Assets**
**Represented By:**
Unrestricted Funds
13, 14
Restricted Funds
13, 14|**2026**
**£**
**2025**
**£**
88
1,180
13,000
8,600
119,251
67,431| |---|---| ||132,251
76,031
(2,622)
(7,216)| ||129,629
68,815| ||**£129,717**
**£69,995**| ||88,347
59,151
41,370
10,844| ||**£129,717**
**£69,995**| The notes on pages 17 to 25 form part of the financial statements. **The financial statements were approved by the Board, and authorised for issue, on 26 May 2026 and signed on its behalf by:** **Graham Young Trustee and Chair** 16 ## **NORTHERN HEARTLANDS CIO (A CHARITABLE INCORPORATED ORGANISATION) NOTES TO THE ACCOUNTS At 31 MARCH 2026** ## **1. Accounting Policies** ## **Charity Information** Northern Heartlands CIO is a Charitable Incorporated Organisation. The registered office is 3 Witham Studios, Hall Street, Barnard Castle DL12 8JB. The charity is a public benefit entity. ## **Basis of Accounting** 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 Statement of Recommended Practice (Charities SORP FRS 102) "Accounting and Reporting by Charities" and the Charities Act 2011. The financial statements have been prepared on the historical cost basis, modified to include certain financial instruments at fair value. Advantage has been taken of the provisions in the SORP for Charities applying FRS 102 Update Bulletin 1 not to prepare a statement of cashflows. The financial statements are prepared in sterling, which is the functional currency of the charity. ## **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 years or where the donor or funder has imposed conditions which must be met before the charity has unconditional entitlement. Turnover 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. ## **Income from Investments** Interest receivable on fixed interest securities and bank deposits is included on an accruals basis. ## **Expenditure** All expenditure is accounted for on an accruals basis and is recognised when a liability is incurred. - Costs of Raising Funds are those costs of seeking potential funders and applying for funding. - Charitable activities include expenditure associated with the provision of grant funding, research, advocacy and the direct provision of creative learning-related activities. This includes both the direct costs and support costs relating to these activities. 17 ## **NORTHERN HEARTLANDS CIO (A CHARITABLE INCORPORATED ORGANISATION) NOTES TO THE ACCOUNTS At 31 MARCH 2026** ## **1. Accounting Policies (Cont.)** ## **Expenditure (Cont.)** - Support or Indirect costs are those costs incurred in support of the charitable objectives. These have been allocated to the resources expended on a consistent basis that fairly reflects the true use of those resources within the organisation, such as allocating staff costs by time spent and other costs by their usage. - Governance costs are those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements. ## **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 year of the lease. ## **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: Office & ICT Equipment – over 5 years Fixtures & Fittings – over 5 years A full year’s depreciation charge is applied in the year of acquisition and no charge is made in the year of disposal. ## **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. ## **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 is set out in Note 13 to the financial statements. All other funds are considered Unrestricted Funds and are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity. 18 **NORTHERN HEARTLANDS CIO (A CHARITABLE INCORPORATED ORGANISATION) NOTES TO THE ACCOUNTS At 31 MARCH 2026** ## **1. Accounting Policies (Cont.)** ## **Taxation** Northern Heartlands CIO is a registered charity and, as such, is not liable to taxation on its income in the current year. ## **Pensions** Northern Heartlands contributes to a defined contribution pension scheme. Further details can be found 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. ## **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. Going Concern** There are no material uncertainties about the charity's ability to continue and the Trustees believe that it is appropriate for the financial statements to be drawn up on a going concern basis. ## **3. Income from Investments** |Interest on Cash Balances|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**2026**
**2025**
**£**
**£**
**£**
**£**
1,853
-
1,853
2,383| |---|---| ||**£1,853**
**£-**
**£1,853**
**£2,383**| The 2025 total of £2,383 related wholly to Restricted Funds. 19 ## **NORTHERN HEARTLANDS CIO** ## **(A CHARITABLE INCORPORATED ORGANISATION) NOTES TO THE ACCOUNTS At 31 MARCH 2026** ## **4. Income from Grants, Donations & Legacies** |**Grant Income**
Arts Council England – Culture
Durham 2026
Arts Council England – National
Portfolio Organisation
Business Durham - Business
Development
Creative Lives – Know Your
Neighbourhood
Durham CC – Cultural Durham
Website
Durham CC - Place Labs
Durham CC - Cultivate Commissions
Esmee Fairbairn Foundation
Esmee Fairbairn Foundation "Funding
Plus" - Business Development
Garfield Weston Foundation
NECA - Creative Careers Event
Pride In Teesdale
Teesdale AAP Big Arts Project
**Donations**
Weston Charity Award
General Donations|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**2026**
**2025**
**£**
**£**
**£**
**£**
-
10,000
10,000
-
101,610
-
101,610
100,000
-
4,790
4,790
-
-
10,000
10,000
-
-
-
-
10,000
-
90,362
90,362
72,720
-
-
-
36,435
63,991
-
63,991
62,405
-
8,800
8,800
-
25,000
-
25,000
-
-
3,500
3,500
-
-
-
-
7,640
-
-
-
10,000
**190,601**
**127,452**
**318,053**
**299,200**
-
-
-
6,500
-
-
-
862
**-**
**-**
**-**
**7,362**
**£190,601**
**£127,452**
**£318,053**
**£306,562**| |---|---| Of the 2025 total of £306,562, £169,767 related to Unrestricted Funds and £136,795 to Restricted Funds. ## **5. Income from Charitable Activities** |Earned Income|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**2026**
**2025**
**£**
**£**
**£**
**£**
11,881
-
11,881
23,838| |---|---| ||**£11,881**
**£-**
**£11,881**
**£23,838**| The 2025 total of £23,838 related wholly to Unrestricted Funds. 20 ## **NORTHERN HEARTLANDS CIO (A CHARITABLE INCORPORATED ORGANISATION) NOTES TO THE ACCOUNTS At 31 MARCH 2026** ## **6. Expenditure on Charitable Activities** |**Direct Costs**
Project Costs
Marketing, Press & PR Costs
**Support Costs**
Company Development
Depreciation
Insurance
Other Overhead Costs
Premises Costs
Salaries & On Costs
Telephone, ICT & Website Costs
**Governance Costs**
Independent Examination
Other Accountancy & Payroll
Services|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**2026**
**2025**
**£**
**£**
**£**
**£**
1,587
78,931
80,518
159,237
6,000
-
6,000
7,914
4,097
8,800
12,897
924
1,092
-
1,092
2,826
1,110
-
1,110
1,166
5,360
5,360
4,767
7,600
1,280
8,880
8,880
141,202
7,915
149,117
146,227
3,124
-
3,124
3,059
1,200
-
1,200
1,200
2,429
-
2,429
2,163| |---|---| ||**£174,801**
**£96,926**
**£271,727**
**£338,363**| Of the 2025 total of £338,363, £178,337 related to Unrestricted Funds and £160,026 to Restricted Funds. ## **7. Net Income/(Expenditure)** ||**2026**|**2025**| |---|---|---| ||**£**|**£**| |Net income/(expenditure) is stated after charging/(crediting):||| |Independent Examiner - Examination Fees|1,200|1,200| |Independent Examiner - Other Services|1,680|1,680| |Depreciation of Owned Fixed Assets|1,092|2,826| 21 ## **NORTHERN HEARTLANDS CIO (A CHARITABLE INCORPORATED ORGANISATION) NOTES TO THE ACCOUNTS At 31 MARCH 2026** ## **8. Staff Costs** |Gross Salary Costs
Employer’s National Insurance
Employer’s Pension Contributions
The average monthly number of staff employed during the year was
as follows:
Artistic Education/Learning Programmes/Management|**2026**
**2025**
**£**
**£**
138,447
134,415
7,265
8,528
3,405
3,284| |---|---| ||**£149,117**
**£146,227**
**2026**
**No.**
**2025**
**No.**
5
5| No employees received remuneration in excess of £60,000 in the year (2025: None). The total paid to key management personnel, defined as the members of the Management Team, was £38,192 (2025: £37,080). No remuneration was paid to or waived by Trustees/Directors in the year (2025: £Nil). No expenses were reimbursed to Trustees (2025: £Nil) in respect of their attendance at meetings of the charity. ## **9. Pension Scheme** 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. In the year to 31 March 2026 Northern Heartlands made 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 scheme on a monthly basis. No contributions were outstanding at 31 March 2026 (2025: £Nil). 22 ## **NORTHERN HEARTLANDS CIO (A CHARITABLE INCORPORATED ORGANISATION) NOTES TO THE ACCOUNTS At 31 MARCH 2026** ## **10. Tangible Fixed Assets** |**Fixtures &**
**Fittings**
**£**
**IT &**
**Office**
**Equipment**
**£**
**Total**
**Fixed**
**Assets**
**£**
**Cost**
At 1 April 2025
1,715
7,993
9,708
Additions in year
-
-
-
At 31 March 2026
1,715
7,993
9,708
**Accumulated Depreciation**
At 1 April 2025
1,454
7,074
8,528
Charge for year
173
919
1,092
At 31 March 2026
1,627
7,993
9,620
**Net Book Value**
At 31 March 2026
**£88**
**£-**
**£88**
At 1 April 2025
**£261**
**£919**
**£1,180**
**11.**
**Debtors**
**2026**
**2025**
**£**
**£**
Trade Debtors
2,000
5,600
Accrued Income
11,000
3,000
**£13,000**
**£8,600**
**12.**
**Creditors - Amounts Falling Due Within One Year**
**2026**
**2025**
**£**
**£**
Trade Creditors
787
2,460
Other Creditors
27
180
Accruals
1,808
4,576
**£2,622**
**£7,216**|**Fixtures &**
**Fittings**
**£**
**IT &**
**Office**
**Equipment**
**£**
**Total**
**Fixed**
**Assets**
**£**
1,715
7,993
9,708
-
-
-|**Fixtures &**
**Fittings**
**£**
**IT &**
**Office**
**Equipment**
**£**
**Total**
**Fixed**
**Assets**
**£**
1,715
7,993
9,708
-
-
-| |---|---|---| ||1,715
1,454
173|7,993
9,708
7,074
8,528
919
1,092| ||1,627|7,993
9,620| ||**£88**|**£-**
**£88**| |||**£919**
**£1,180**
**2026**
**2025**
**£**
**£**
2,000
5,600
11,000
3,000| |||**£13,000**
**£8,600**
**2026**
**2025**
**£**
**£**
787
2,460
27
180
1,808
4,576| |||**£2,622**
**£7,216**| 23 ## **NORTHERN HEARTLANDS CIO** ## **(A CHARITABLE INCORPORATED ORGANISATION) NOTES TO THE ACCOUNTS At 31 MARCH 2026** ## **13. Analysis of Net Assets between Funds** ||||**Unrestricted**|**Restricted**|
**2026**|**2025**| |---|---|---|---|---|---|---| ||||**Funds**|**Funds**||| ||||**£**|**£**|
**£**|**£**| ||Fixed Assets||88|-|
88|1,180| ||Debtors||2,000|11,000|
13,000|8,600| ||Cash at Bank and In Hand||88,881|30,370|
119,251|67,431| ||Creditors – Due Within 1 Year||(2,622)|-|(2,622)|(7,216)| ||||**£88,347**|**£41,370**|
**£129,717**|**£69,995**| |**14.**|**Analysis of Charitable Funds**|||||| ||||**Fund at 1**|**Income for**|
**Expenditure**|**Fund at**| ||||**April 2025**|**Year**|
**for Year**|**31 March**| |||||||**2026**| ||||**£**|**£**|
**£**|**£**| ||**Unrestricted General Fund**||**59,151**|**203,997**|
**(174,801)**|**88,347**| ||**Restricted Funds**|||||| ||Arts Council England – Culture Durham
2026||-|10,000|
(7,757)|2,243| ||Arts Council England – Durham
Cultural Partnership||3,020|-|
(1,099)|1,921| ||Business Durham - Business
Development||-|4,790|
(4,000)|790| ||Creative Lives – Know Your
Neighbourhood||-|10,000|
(9,633)|367| ||Durham CC - Cultivate Commissions||1,909||(1,909)|-| ||Durham CC – Cultural Durham Website||4,976||(3,654)|1,322| ||Durham CC - Place Labs||-|90,362|
(55,635)|34,727| ||Esmee Fairbairn Foundation "Funding
Plus" - Business Development||-|8,800|
(8,800)|-| ||NECA - Creative Careers Event||-|3,500|
(3,500)|-| ||Teesdale AAP||939||(939)|-| ||**Total Restricted Funds**||**10,844**|**127,452**|
**(96,926)**|**41,370**| ||**Total Funds**||**£69,995**|**£331,449**|
**£(271,727)**|**£129,717**| ||**Name of Restricted Fund**|**Description, Nature**||**& Purpose**|**of the Restricted Fund**|| Arts Council England – Culture Towards the costs of the 2026 Culture Durham partnership Durham 2026 Arts Council England – Durham To fund participation in the partnership Cultural Partnership 24 ## **NORTHERN HEARTLANDS CIO (A CHARITABLE INCORPORATED ORGANISATION) NOTES TO THE ACCOUNTS At 31 MARCH 2026** ## **14. Analysis of Charitable Funds (Cont.)** **Name of Restricted Fund Description, Nature & Purpose of the Restricted Fund** Business Durham - Business Towards the costs of business development consultancy Development and website development Creative Lives – Know Your Towards the costs of Take Part in Teesdale, a project Neighbourhood delivering creative activities for people living with anxiety & loneliness in the former pit villages of Evenwood, Cockfield, Butterknowle and Woodland in Teesdale, Co Durham, Durham CC - Cultivate Towards the costs of Cultivate Commissions, a Commissions programme designed to accelerate creative growth for artists, creative practitioners and creative microbusinesses living or working across County Durham Durham CC – Cultural Durham Towards the costs of the development of the ‘Into the Website Light’ website for Cultural Durham Durham CC – Place Labs Towards the costs of the Place Lab mission to use art and creativity as enablers and innovators to realise place-shaping, collaborating with communities at a hyper-local level across the county to enable more people to fully participate in civil society and shape the future of their place. Esmee Fairbairn Foundation Towards the costs of business development consultancy "Funding Plus" - Business and website development Development NECA - Creative Careers Event Towards the costs of an event to support creative careers across County Durham Towards the costs of a heritage and landscape project as Teesdale AAP part of the Middleton in Teesdale Parish Council National Lottery Heritage Fund Application ## **15. Related Party Transactions** Details of transactions with Trustees are disclosed in Note 7. There were no other transactions in the year with related parties, such as are required to be disclosed. (2025: None) ## **16. Financial Commitments** No material financial commitments have been made in respect of future financial years. 25