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Charity registration number: 1193927
## Redhills CIO
Annual Report and Financial Statements
for the Year Ended 31 March 2023
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## **Redhills CIO**
## **Contents**
|Reference and Administrative Details|1|
|---|---|
|Trustees' Report|2 to 9|
|Independent Auditors' Report|10 to 12|
|Statement of Financial Activities|13|
|Balance Sheet|14|
|Cash Flow Statement|15|
|Notes to the Financial Statements|16 to 22|
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## **Redhills CIO**
## **Reference and Administrative Details**
## **Trustees**
**Key Management Personnel**
John Tomaney (Chair) Raymond Mills (Treasurer) Chris McDonald Rachael Lennon Stephen Guy Elizabeth Scott, Cllr Mary Stratford Kate Abson Victoria Hughes Beth Jones N Malyan, CEO R Forbes, Programme Director C Moore, Finance Manager
**Principal Office** Durham Miners Hall Flass Street Durham England DH1 4BE **Charity Registration Number** 1193927 **Bankers** Handelsbanken Newcastle upon Tyne Earl Grey House 75 - 85 Grey Street Newcastle upon Tyne NE1 6EF **Auditor** Azets Audit Services Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS
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## **Redhills CIO**
## **Trustees' Report**
The trustees present the annual report together with the financial statements and auditors' report of the charity for the year ended 31 March 2023.
## **Key management personnel**
Nick Malyan (CEO)
Ross Forbes (Programme Director)
Corina Moore (Finance Manager)
**Charitable Objects:** The objects of the CIO are:
(a) To promote for the benefit of the inhabitants of Durham without distinction of sex, sexual orientation, race or of political, religious or other opinions, by associating together the said inhabitants and the local authorities, voluntary and other organisations in a common effort to advance education and to provide facilities in the interests of social welfare for recreation and other leisure time occupations with the objects of improving the conditions of life of the said inhabitants; and
(b) To preserve and maintain the Miners Hall, Durham and to manage the same for the purpose of a community centre.
## **Summary of activities**
1. Preservation and management of the Miners’ Hall, Durham and its associated heritage.
- Promotion and provision of education, recreation and leisure activities in relation to the
- 2. heritage and culture of the Durham coalfield.
- Improving understanding of Durham coalfield heritage and its regional, national and
- 3. international significance.
## **Achievements and performance**
1. **Preservation and management of the Miners’ Hall and its associated heritage.**
## **Ownership and management of the Miners’ Hall**
The most significant achievement in this period was the completion of the transfer of the Miners’ Hall from Durham Miners’ Association (DMA) to Redhills CIO on March 2nd 2023, thus confirming ownership of the hall and immediate area surround the building.
## **Preservation and the Hall**
The purpose of receiving the Hall is to ensure its continued use by and for the benefit of the general public through the successful delivery of a major refurbishment project funded by a National Lottery Heritage Fund award and further funds provided by Durham Miners' Association, Durham County Council, Garfield Weston, Kirby Laing and a number of Trades Unions. This scheme will see a full conservation and renovation programme including the development of new, accessible visitor facilities that ensure the Hall is accessible to all.
In partnership with DMA the charity has overseen the preparatory works associated with this scheme to RIBA planning stage, received full planning permission and completed a tender exercise to identify a preferred contractor for the scheme. Subject to securing the total funding for the scheme the project will commence in year 2023-24.
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## **Redhills CIO**
## **Trustees' Report**
## **Preservation of associated heritage**
A significant programme of works around preserving and better promoting the collected and archived heritage of the Hall is also ongoing. For example, more than 2000 boxes of written material have been deposited in safe storage ahead of a major archiving project in partnership with County Durham Records Office.
The collected heritage of the Durham Miners’ Association has for the first time been recorded and catalogued by volunteers with support from skilled graduates and heritage professionals.
## **Promotion and provision of education, recreation and leisure activities in relation to** 2. **the heritage and culture of the Durham coalfield.**
Working in partnership with DMA and others the charity has undertaken a broad range of activities for the above purpose. Highlights include the following key projects and programmes;
## **Durham Miners’ Gala**
We programmed family-friendly activities and performances inspired by the geology of the coalfield at the 2022 Durham Miners’ Gala.
Our information-stall about the heritage of the miners’ hall including photographs and copies of historic documents. These activities attracted a combined audience of more than 2000 people.
## **Brass Festival**
Working in partnership with Durham County Council we presented two original commissioned performances at the 2022 Durham Brass Festival. Building on the heritage of brass banding in the Durham coalfield two traditional colliery bands were paired with contemporary, popular music groups to write and perform music.
- Field Music: Binding Time. The Sunderland-based, former Mercury Music Prize nominated
- band worked with the NASUWT Riverside Brass Band to write and perform 10 songs inspired by the heritage of the coalfield at Durham’s Gala theatre.
- LYR: Firm As A Rock We Stand. Poet laureate Simon Armitage was joined by bandmates from LYR to write original poems about the history of Category D villages in the former
- • coalfield. Working with Easington Colliery Band these songs were then premiered at Durham Cathedral, subsequently winning a North East Culture Award for Performance of the Year. A short film about the project was also commissioned being nominated for a Radio and Television Society Award in the category of Best Non-Broadcast Documentary.
## **Redhills Youth Brass Band**
A new county-wide youth brass band was formed with support from the National Lottery Heritage Fund to encourage young musicians from County Durham to engage in their brass-banding heritage. The group attended a performance of the play Brassed Off, giving a performance to audience members the following week.
Additionally, the youth band took part in a masterclass with Black Dyke Brass Band at Sage then giving a performance of Christmas Carols for the audience before joining the band on-stage for the encore.
## **Wider Community Partnerships**
Redhills has established and works with a range of important community partners across County Durham, developing activities and projects as part of a successful bid for Arts Council of England support and the wider NLHF Activity Plan. These include Building Self Belief CIC, County Durham Rainbow Alliance, Durham Area Youth, North East Youth Focus, Sacriston Enterprise Workshops and many others.
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## **Redhills CIO**
## **Trustees' Report**
- **Improving understanding of Durham coalfield heritage and its importance to regional,**
- 3. **national and international history.**
## **Community Research Network**
In partnership with University College London and other academic institutions the charity has been conducting research into heritage, community-identity and belonging in post-industrial places. A paper was published in April 2022 entitled; _**“Understanding 'Left-behind' Places: Developing a Deep Place Study”.**_
Following this Redhills CIO staff were joined by colleagues from community organisations in Sacriston to attend the first part of a learning-exchange. Visiting Tottenham in North London and meeting counterparts from similar organisations the programme allowed for a comparison of the challenges faced in working in the community sector, and in particular the difficulties faced by organisations working with heritage buildings and community assets. A follow up visit to Durham will take place in the future.
The partnership with UCL has produced new, strong community partnerships which will enable the charity to increase its impact in such areas going forward. Following this work a major grant award was made to Redhills CIO to establish an expanded community research network exploring similar issues.
## **UK City of Culture Bid**
Redhills played a central role in County Durham’s shortlisted bid to become the UK City of Culture. The purpose of the bid was to raise awareness and promote Durham’s arts and heritage offer on a national and international scale and to increase investment in the area.
Durham was selected as one of the final four bidding cities and as such received a judges’ visit from the DCMS selected panel of assessors. As part of the process we were featured extensively in a special edition of BBC One’s The One Show and BBC Radio 4’s Front Row. Redhills CEO Nick Malyan was also invited to present the final bid to DCMS in London in May 2022 and attend the live reveal of the winning city live on BBC Television.
While Durham was ultimately not selected the bid process significantly raised the profile of the charity at a national level.
## **UNESCO World Heritage Bid**
Work on the ongoing bid to become part of a UNESCO transnational network for world heritage status continues. In partnership with the Workers’ Museum of Copenhagen the bid focuses on architecturally and historically significant workers’ assembly halls originally financed by collective labour without public or private funds.
It is likely to be several years before the outcome of the bid is known. Historic England continue to provide guidance on this process where appropriate, including a potential relisting and/or regrading which would further safeguard the future of the hall.
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## **Redhills CIO**
## **Trustees' Report**
## **Constitution and governance**
In addition to the constitution adopted by the charity on formation the following governing documents, policies and working groups have been established:
Financial regulations
- Ethical policy
Finance subcommittee
Register of interests and management of interests statement
Equality, diversity and inclusion statement
Safeguarding policy statement Maintaining charity independence statement
## **Appointment of Trustees**
Trustees shall be appointed for a term of three years by a resolution passed at a properly convened meeting of the Trustees. Any person retiring as a Trustee is eligible for reappointment, although a Trustee who has completed two consecutive terms of service may not be reappointed for a third term until a period of at least one year has elapsed.
In addition to Trustees appointed in accordance with the above clauses, additional Trustees may be co-opted for shorter or fixed periods because of the particular capabilities and competences they may bring for specific projects or programmes of work.
In selecting individuals for appointment as Trustees, the Trustees must have regard to the skills, knowledge and experience needed for the effective administration of the CIO.
Upon appointment, all Trustees shall be given— (a) a copy of the current version of this Constitution; and (b) a copy of the CIO's latest Trustees' Annual Report and statement of accounts (c) a‘full and comprehensive briefing on the objectives, strategy, operations and finances of the CIO.’(d) up to date Charity Commission guidance on trustee duties and obligations including public benefit.
## **Retirement and removal of Trustees.**
The office of a Trustee shall be vacated if he or she (a) resigns office by giving three months’ notice in writing to the CIO (but only if at least three Trustees will remain in office); or (b) is absent without the permission of the Trustees from all their meetings held within a period of six months and the Trustees resolve that his or her office be vacated; or (c) is removed from office for conduct prejudicial to the CIO by a majority vote of the Trustees, provided that any Trustee whose removal is proposed shall have the right to make representation to the meeting where the decision is to be taken; CIO Constitution (d) becomes bankrupt or makes any arrangement with his or her creditors generally; or (e) is otherwise disqualified by law from serving as a charity trustee.
**Taking of decisions by Trustees.** Any decision may be taken either— (a) at a meeting of the Trustees; or (b) by resolution in writing or electronic form agreed by all of the Trustees.
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## **Redhills CIO**
## **Trustees' Report**
## **Delegation by Trustees**
The Trustees may delegate any of their powers or functions to a committee or committees, provided that the terms of any delegation must be recorded in the minute book. The Trustees may subsequently revoke or alter a delegation.
The Trustees may impose conditions when delegating, and will always include the conditions that—
(a) a committee may consist of two or more persons, but at least one member of each committee must be a Trustee; (b) the relevant powers are to be exercised exclusively by the committee to whom they delegate; (c) no expenditure may be incurred on behalf of the CIO except in accordance with a budget previously agreed with the Trustees; (d) the committee shall report regularly to the Trustees **.**
## **Meetings of Trustees**
A meeting shall be summoned on the request of a Trustee by giving reasonable notice to all the Trustees. It shall not be necessary to give notice of a meeting to any Trustee when absent from the United Kingdom.
At present meetings are held monthly with agreement to revise this to alternating monthly meetings at an appropriate time.
## **Chairing of meetings**
The Trustees may appoint one of their number to chair their meetings and may at any time revoke such appointment. If no-one has been so appointed, or if the person appointed is unwilling to preside or is not present within 10 minutes after the time of the meeting, the Trustees present may appoint one of their number to chair that meeting.
## **Related Parties**
**1. Durham Miners’ Association:** Redhills CIO and Durham Miners' Association have worked together to transfer the ownership of the hall and realise the required funds for the halls' renewal. The two organisations also share key personnel, with DMA Directors Stephen Guy and Ross Forbes holding the role of Trustee and Employee respectively. Durham Miners’ Association is therefore considered by Redhills CIO to be a related party and all transactions between the two organisations should be declared as such to ensure the best interests of the charity are served at all times.
**2. University College London:** Redhills CIO is working in partnership with UCL to develop community research networks in the former Durham Coalfield area. Redhills Trustee Professor John Tomaney is an employee of UCL as a Senior Professor. All transactions between the two parties should therefore be declared to ensure the best interests of the charity are served at all times.
## **Trustees Remuneration**
No members of the board of trustees received any remuneration during the year. No trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity during the year.
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## **Redhills CIO**
## **Trustees' Report**
## **Financial Statement**
## **Review of financial position**
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## **Redhills CIO**
## **Trustees' Report**
## **Reserves policy statement**
The Trustees have reviewed the charity's needs for reserves in line with the guidance issued by the Charity Commission. The calculation of free reserves is based on the definition included in the charity Statement of Recommended Practice (SORP), which provides recommendations for accounting and reporting for charities. The trustees have examined the requirements of the charity to hold free reserves— those reserves not invested in tangible fixed assets, excluding long term liabilities, or designated for a particular purpose.
At present the charity holds the value of the Miners’ Hall as free reserves, valued at circa £1.5m. The Trustees consider it to be appropriate to work towards building a free cash reserve fund in addition to the value of the hall. The target value for this is the equivalent of 3 month's operational costs for a full year of trading (estimated at £95,000). The Trustees would also then aspire to retain an additional allowance of £50,000 to enable the charity to respond flexibly to events or appropriate initiatives which might be identified outside of its annual budgeting process.
## **Statement on the charity as a going concern.**
As of March 2023 the board of Trustees of Redhills CIO are confident of securing the necessary funds to deliver the renewal programme for Miners’ Hall. These funds are anticipated to be secured in the next financial year.
## _**Fundraising disclosures**_
The charity is required to report how it deals with fundraising from the public. The charity does not use a professional fundraiser or commercial participator to raise funds. Any monies raised direct from the public follows all guidelines set out by the Charity Commission and UK law in every respect. We respect the privacy and contact preferences of all public donors.
## _**Public benefit**_
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
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## **Redhills CIO**
## **Trustees' Report**
## **Statement of Trustees' Responsibilities**
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:
- 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 accounting standards 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 inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Disclosure of information to auditor**
Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
The annual report was approved by the trustees of the charity on 30/01/2024.................... and signed on its behalf by:
Ray Mills 30 Jan 2024 14:04:51 GMT (UTC +0)
......................................... Raymond Mills (Treasurer) Trustee
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## **Redhills CIO**
## **Independent Auditor's Report to the Members of Redhills CIO**
## **Opinion**
We have audited the financial statements of Redhills CIO (the 'charity') for the year ended 31 March 2023, which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statement, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).
- In our opinion the financial statements:
- give a true and fair view of the state of the charity's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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## **Redhills CIO**
## **Independent Auditor's Report to the Members of Redhills CIO**
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees' Responsibilities (set out on page 9), the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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## **Redhills CIO**
## **Independent Auditor's Report to the Members of Redhills CIO**
- Enquires with management about any known or suspected instances of non-compliance with laws and regulations and fraud;
- Reviewing board meeting minutes;
- Challenging assumptions and judgements made by management in their significant accounting estimates; and
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
Because of the field in which the client operates, we identified the following areas as those most likely to have a material impact on the financial statements: Health and Safety; employment laws, and compliance with the Charities Act.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISA's (UK). For instance, the further removed non-compliance is from the event and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charity trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our work has been undertaken so that we might state to the trustees those matters we are required to state to trustees in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Simon Brown 31 Jan 2024 12:20:44 GMT (UTC +0)
...................................... Simon Brown BA ACA DChA (Senior Statutory Auditor) For and on behalf of Azets Audit Services Chartered Accountants Statutory Auditor Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS
Date:.............................31 January 2024
Azets Audit Services is a trading name of Azets Audit Services Limited.
Azets Audit Services is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
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## **Redhills CIO**
## **Statement of Financial Activities for the Year Ended 31 March 2023**
|**Note**
**Income and Endowments from:**
Donations and legacies
**Expenditure on:**
Charitable activities
Total Expenditure
Net movement in funds
**Reconciliation of funds**
Total funds carried forward
12|**Unrestricted**
**£**
1,659,019
(166,884)
(166,884)
1,492,135
1,492,135|**Restricted**
**£**
273,462
-
-
273,462
273,462|**Total**
**2023**
**£**
1,932,481
(166,884)
(166,884)
1,765,597
1,765,597|**Total**
**2022**
**£**
-
-|
|---|---|---|---|---|
|||||-|
|||||-|
|||||-|
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2022 is shown in note 12.
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## **Redhills CIO**
## **(Registration number: 1193927) Balance Sheet as at 31 March 2023**
|**Note**
**Fixed assets**
Tangible assets
8
**Current assets**
Debtors
9
Cash at bank and in hand
10
**Creditors: Amounts falling due within one year**
11
**Net current assets**
**Net assets**
**Funds of the charity:**
**Restricted income funds**
Restricted funds
12
**Unrestricted income funds**
Unrestricted funds
**Total funds**
12|**2023**
**£**
1,500,000
7,606
265,491
273,097
(7,500)
265,597
1,765,597
273,462
1,492,135
1,765,597|**2022**
**£**
-
-
49,462|
|---|---|---|
|||49,462
(49,462)|
|||-|
|||-|
|||-
-|
|||-|
The financial statements on pages 13 to 22 were approved by the trustees, and authorised for issue on ....................30/01/2024 and signed on their behalf by:
Ray Mills 30 Jan 2024 14:04:51 GMT (UTC +0)
.........................................
Raymond Mills (Treasurer) Trustee
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## **Redhills CIO**
## **Cash Flow Statement for the Year Ended 31 March 2023**
|**Note**
**Cash flows from operating activities**
Net income
**Working capital adjustments**
Increase in debtors
9
(Decrease)/increase in creditors
11
Net cash flows from operating activities
**Cash flows from investing activities**
Donation of tangible fixed assets
8
Net increase in cash and cash equivalents
Cash and cash equivalents at 1 April
Cash and cash equivalents at 31 March|**2023**
**£**
1,765,597
(7,606)
(41,962)
1,716,029
(1,500,000)
216,029
49,462
265,491|**2022**
**£**
-
-
49,462|
|---|---|---|
|||49,462
-|
|||49,462
-|
|||49,462|
All of the cash flows are derived from continuing operations during the above two periods.
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## **Redhills CIO**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
## **1 Accounting policies**
## **Statement of compliance**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
## **Basis of preparation**
Redhills CIO meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
The functional currency is sterling.
## **Going concern**
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
The charity's forecasts and projections for the next twelve months show that the charity should be able to continue in operational existence for that period. The charity has strong positive cash balances and is forecasting for this to continue to be the case. The trustees have stress tested their forecasts, taking into account various scenarios, and remain confident that the uncertainties do not cast significant doubt on the charity's ability to continue to be a going concern.
## **Estimation uncertainty and judgements**
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported.
Management have provided depreciation, prepayments, accruals and other cut-off adjustments. Whilst management believe that these estimates and judgements are accurate, there is every likelihood that they will not be exact.
These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
## **Income and endowments**
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
## _**Donations and legacies**_
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
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## **Redhills CIO**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
## _**Grants receivable**_
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
## **Expenditure**
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
## _**Charitable activities**_
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## **Governance costs**
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
## **Taxation**
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## **Tangible fixed assets**
Individual fixed assets are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
## **Trade debtors**
Trade debtors are amounts due from funders for grants receivable and from customers for services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
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## **Redhills CIO**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
## **Fund structure**
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
## **Pensions and other post retirement obligations**
The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
## **2 Income from donations and legacies**
|Donations and legacies;
Donations
Grants, including capital grants;
Grants
**3**
**Expenditure on charitable activities**
Charitable Activities
Governance costs
Charitable activities
Governance costs|**Unrestricted**
**funds**
**General**
**£**
1,659,019
-
1,659,019
**Activity**
**undertaken**
**directly**
**£**
159,019
-
159,019|**Restricted**
**funds**
**£**
49,462
224,000
273,462
**Unrestricted**
**funds**
**General**
**£**
159,019
7,865
166,884
**Activity**
**support**
**costs**
**£**
-
7,865
7,865|**Total**
**2023**
**£**
1,708,481
224,000
1,932,481
**Total**
**2023**
**£**
159,019
7,865
166,884
**2023**
**£**
159,019
7,865
166,884|**Total**
**2022**
**£**
-
-|
|---|---|---|---|---|
|||||-|
|||||**Total**
**2022**
**£**
-
-|
|||||-|
|||||**2022**
**£**
-
-|
|||||-|
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## **Redhills CIO**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
## **4 Analysis of governance and support costs**
## **Governance costs**
|Audit fees
Audit of the financial statements
Other governance costs
**5**
**Staff costs**
The aggregate payroll costs were as follows:
**Staff costs during the year were:**
Wages and salaries
Social security costs
Pension costs|**Unrestricted**
**funds**
**General**
**£**
7,500
365
7,865|**Total**
**2023**
**£**
7,500
365
7,865
**2023**
**£**
145,667
11,072
2,280
159,019|**Total**
**2022**
**£**
-
-|
|---|---|---|---|
||||-|
||||**2022**
**£**
-
-
-|
||||-|
The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows:
|Employees|**2023**
**No**
4|**2022**
**No**
-|
|---|---|---|
No employee received emoluments of more than £60,000 during the year
The total employee benefits of the key management personnel of the charity were £122,332 (2022 - £Nil).
## **6 Auditors' remuneration**
|Audit of the financial statements|**2023**
**£**
7,500|**2022**
**£**
-|
|---|---|---|
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## **Redhills CIO**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
## **7 Taxation**
The charity is a registered charity and is therefore exempt from taxation.
## **8 Tangible fixed assets**
|**8**
**Tangible fixed assets**|||
|---|---|---|
|**Cost**
Additions
At 31 March 2023
**Depreciation**
At 31 March 2023
**Net book value**
At 31 March 2023
**Transfer of Proeprty to Redhills CIO**|**Land and**
**buildings**
**£**
1,500,000
1,500,000
-
1,500,000|**Total**
**£**
1,500,000|
|||1,500,000
-|
|||1,500,000|
||||
The Miners Hall, included in land and buildings above, was transferred to the charity from DMA 2021 Limited in March 2023. The property was transferred at a cost of £1,500,000 based on a valuation of the building performed by Hampton Smith Lampton on 7 June 2022. The valuation will form the deemed cost of the building within the financial statements.
## **9 Debtors**
|**9**
**Debtors**|||
|---|---|---|
|Trade debtors
**10 Cash and cash equivalents**
Cash at bank
**11 Creditors: amounts falling due within one year**
Other creditors
Accruals|**2023**
**£**
7,606
**2023**
**£**
265,491
**2023**
**£**
-
7,500
7,500|**2022**
**£**
-|
|||**2022**
**£**
49,462|
|||**2022**
**£**
49,462
-|
|||49,462|
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## **Redhills CIO**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
## **12 Funds**
|**12 Funds**|||||
|---|---|---|---|---|
||**Balance at**|||**Balance at**|
||**1 April**|**Incoming**|**Resources**|**31 March**|
||**2022**|**resources**|**expended**|**2023**|
||**£**|**£**|**£**|**£**|
|**Unrestricted funds**|||||
|**_General_**|||||
|Unrestricted funds|-|1,659,019|(166,884)|1,492,135|
|**Restricted funds**|||||
|UCL Community Research Network|-|170,000|-|170,000|
|NLHF Redhills Revealed|-|54,000|-|54,000|
|DMA Partnership Funds|-|49,462|-|49,462|
|**Total restricted funds**|-|273,462|-|273,462|
|**Total funds**|-|1,932,481|(166,884)|1,765,597|
|The specific purposes for which the funds are|to be applied|are as follows:|||
|UCL Community Research Network: developing research programmes and activities exploring|||||
|heritage and identity in the former coalfield.|||||
|NLHF Redhills Revealed: Capital development programme||for the renewal|of Durham Miners' Hall.||
|DMA partnership funds: funding support for the delivery of the Redhills Revealed programme.|||||
|**13 Analysis of net assets between funds**|||||
||**Unrestricted**|||**Total funds**|
|||**funds**|**Restricted**|**at 31 March**|
|||**General**|**funds**|**2023**|
|||**£**|**£**|**£**|
|Tangible fixed assets||1,500,000|-|1,500,000|
|Current assets||(365)|273,462|273,097|
|Current liabilities||(7,500)|-|(7,500)|
|Total net assets||1,492,135|273,462|1,765,597|
||**Unrestricted**|||**Total funds**|
|||**funds**|**Restricted**|**at 31 March**|
|||**General**|**funds**|**2022**|
|||**£**|**£**|**£**|
|Current assets||49,462|-|49,462|
|Current liabilities||(49,462)|-|(49,462)|
|Total net assets||-|-|-|
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## **Redhills CIO**
## **Notes to the Financial Statements for the Year Ended 31 March 2023**
## **14 Analysis of net funds**
|**14 Analysis of net funds**||||
|---|---|---|---|
|Cash at bank and in hand
Net funds
Cash at bank and in hand
Net funds|**At 1 April**
**2022**
**£**
49,462
49,462
**At 1 April**
**2021**
**£**
49,462
49,462|**Financing**
**cash flows**
**£**
216,029
216,029
**Financing**
**cash flows**
**£**
-
-|**At 31 March**
**2023**
**£**
265,491|
||||265,491|
||||**At 31 March**
**2022**
**£**
49,462|
||||49,462|
## **15 Related party transactions**
During the year the charity made the following related party transactions:
## **Durham Miners Assocation (DMA)**
(The two organisations share key personnel.)
During the year, DMA provided income amounting to £49,462 in regards to transferring funds receipted on behalf of Redhills CIO, and paid wages of £159,019 for staff employed by Redhills CIO.
DMA also transferred the ownership of The Miners Hall, a listed building with a value at the point of transfer of £1.5million.
Redhills CIO incurred costs on behalf of DMA relating to building costs pre-transfer of £7,606. At the balance sheet date the amount due from Durham Miners Assocation (DMA) was £7,606 (2022 - £Nil).
## **University College London (UCL)**
(Redhills Trustee Professor John Tomaney is an employee of UCL as a Senior Professor. ) Redhills CIO is working in partnership with UCL to develop community research networks in the former Durham Coalfield area. During the year, Redhills CIO received a grant of £170,000 from UCL towards this project. This was recorded as restricted income within the financial statements. . At the balance sheet date the amount due to/from University College London (UCL) was £Nil (2022 - £Nil).
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