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2023-05-31-accounts

CHARITY REGISTRATION NUMBER: 1194520

SIGNIFICANCE

Trustees Annual Report & Financial Statements Year ended 31 May 2023

STEPHENSON COATES AUDIT LIMITED

Chartered Accountants & Statutory Auditor West 2, Asama Court Newcastle Business Park Newcastle upon Tyne NE4 7YD

SIGNIFICANCE

Financial Statements

Year ended 31 May 2023

Page
1
Independent
 report to the Trustees 6
Statement of financial activities (incorporating the income and expenditure
account) 7
Balance Sheet 8
Statement of cash flows 9
Notes to the financial statements 10

SIGNIFICANCE

Trustees' Annual Report

Year ended 31 May 2023

During the second year of the charity, the Trustees were dedicated and determined to continue the work and legacy of its founder, Fr Donnelly. At the heart of SIGNIFICANCE is the belief that young people are not called to live lives of survival or even lives of success, but to live lives of happiness and significance. Once they come to know

The initial donation from the Sisters of Mercy in September 2021 enabled grant funding to be provided for the Youth Ministry Trust to complete phase one of the redevelopment project and to refurbish existing facilities. In September 2022, the Sisters generously made a second donation to enable further grant funding for Youth Ministry Trust. This second donation allowed the Youth Ministry Trust to proceed with a planning application to expand cember 2023. We wish to record once again our thanks to the Sisters of Mercy for the overwhelming level of support provided to the project and look forward to witnessing the development in 2024.

We also wish to say a big thank you to all our other supporters and donors for the kind and generous donations, be that one-off donations, regularly monthly giving, taking part in challenges such as the Great North Run and fundraising on behalf of the charity, or volunteering and supporting the work of the charity. As Trustees, we commit to be responsible stewards of both your donation and your trust by ensuring that the charity continues to meet its objectives by continuing to provide grants for projects that support and encourage the development of young people.

In July 2023, SIGNIFICANCE and the team at the Youth Ministry Trust joined the Donnelly Family and many people from across the Diocese to mark the first Anniversary of the death of Fr Dermott and to celebrate his ministry and the legacy that he has left us. Fr Dermott founded the charity to provide opportunities for young people to realise their unique worth and we were able to hear just some of the many stories of young people being nurtured through projects and opportunities that received support from SIGNIFICANCE. These included granting rena in March 2023. SIGNIFICANCE was able to offer this opportunity to all who applied to participate.

Mary Hughes Chair

Date: 01 February 2024

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SIGNIFICANCE

Trustees' Annual Report

Year ended 31 May 2023

The trustees present their report and the unaudited financial statements of the charity for the year ended 31 May 2023.

Reference and administrative details

Registered charity name SIGNIFICANCE Charity registration number 1194520

Principal Office

Emmaus Village Pemberton Road Allensford Consett DH8 9BA

The Trustees

Fr Dermott Donnelly (Deceased 8 July 2022) M Hughes (Chair) Fr S Weymes Dr R Stanley D Robinson A Lawless (Appointed 27 April 2023)

Independent examiner

Rachael Oswald BA ACA Stephenson Coates Audit Limited West 2, Asama Court Newcastle Business Park Newcastle upon Tyne NE4 7YD

Bankers

NatWest 12 Market Place Durham DH1 3NG

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SIGNIFICANCE

Trustees' Annual Report (continued)

Year ended 31 May 2023

Structure, governance and management

Governing document

The charity is a Charitable Incorporated Organisation (CIO) established on 18 May 2021, governed by its constitution. The Charity Registration number is 1194520.

Recruitment and appointment of Trustees

Recruitment of trustees is undertaken by the trustees as the need arises in order to ensure that charity trustees collectively have the necessary skills, knowledge and experience for the effective administration of the CIO.

The trustees who served during the year were:

Induction and training of trustees

New trustees are briefed on the powers and responsibilities of the trustees and are provided with a copy of the ch They are also briefed on the grant making process and the recent financial statement of accounts.

Organisation

The charity is managed by the trustees, who meet at least quarterly, or more frequently if the need arises. The number of trustees may not be less than three and is subject to a maximum of 12. The quorum for the transaction of business is one third of the trustees or two trustees, whichever is greater.

Risk management

The trustees have carried out a risk assessment to identify the major governance, financial, operational and compliance risks which the charity faces and this is reviewed each year. Procedures have been established to enable the trustees to monitor and mitigate those risks.

Objectives and activities

SIGNIFICANCE was formally established as a CIO on 18 May 2021. Prior to this, in 2017, Fr Dermott Donnelly, on the occasion of his Silver Jubilee, marking 25 years of priestly ministry working with young people in the and our world and I want to give them every opportunity to develop their potential. Through the projects SIGNIFICANCE will support, young people will be inspired to reach high and achieve thei Donnelly). At the heart of SIGNIFICANCE is the belief that young people are not called to live lives of survival or even lives of success, but to live lives of happiness and significance. Once they come to know their

The objective of the CIO is to advance, for the public benefit, the education (including social, physical, spiritual and mental development) of young people in the North East of England.

The main activities of the CIO is that of fundraising, so that the funds raised can be used to provide grants to other charities, ministries and organisations who are seeking to achieve materially similar objectives.

The CIO has a grant-making policy which sets out the principles, criteria and processes that govern how it awards grants. The trustees have ultimate collective responsibility for all grant-making decisions in accordance with the objectives of the charity. Eligible applicants will be from the North East of England, with a focus on the Diocese of Hexham and Newcastle areas.

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SIGNIFICANCE

Trustees' Annual Report (continued)

Year ended 31 May 2023

Achievements and performance

During the year to 31 May 2023, the charity was active in its principal activity of fundraising. Following a significant donation in the prior period, a further £570,000 was received during the financial year from The Sisters of Mercy Sunderland. The purpose of the funding is to provide grant funding to YMT for the primary purpose of -sufficient.

Additional donations were received by the charity in the financial year totalling £26,599 (2022: £43,630).

Going Concern

The charity has reviewed its cash flow forecasts and there is a reasonable expectation that it has adequate resources to continue in operational existence for at least the next twelve months and on this basis the charity is considered to be a going concern.

Financial review

Total income for the financial year was £596,599 (2022: £793,630), of which £570,000 was received as restricted income from the Sisters of Mercy Sunderland, and £26,599 of unrestricted donations were received from other sources. Total expenditure for the year was £211,513 (2022: £95,231) resulting in a net income result for the charity of £385,086 (2022: £698,399).

Of the total expenditure, there were four grants paid totalling £209,960 (2022: £93,064). Details of grants paid in the year are in Note 7 of the financial statements.

The total charitable funds at 31 May 2023 was £1,083,485 (2022: £698,399), of which £1,053,936 are restricted funds. Free reserves are considered to be the unrestricted reserves of the charity, being £29,549 (2022: £41,463). charity are minimal, meaning that most of the unrestricted reserves are expected to be utilised for future potential activities that advance the objectives of the CIO. As such at the year end, the trustees believe that SIGNIFICANCE is in a strong financial position.

Reserves policy

As the day to day running costs of the CIO are minimal, the trustees do not feel that a formal reserves policy is currently necessary. At regular intervals, such as a meeting of the trustees, the cash reserves are noted at the same time as reviewing any grant applications received. When making a decision whether to approve any grant applications, the trustees take into consideration the level of reserves, both restricted and unrestricted depending on the application received, to ensure that the CIO will retain sufficient reserves if the grant is approved. Should the activities and/or costs of the CIO change in the future, it might become appropriate for the trustees to formalise an appropriate reserves policy.

Plans for future years

Our priorities for the future are to continue to support YMT by providing grant funding, utilising the restricted funds generously provided by the Sisters of Mercy Sunderland, for the primary purpose of contributing to the ling it to be self-sufficient. Further fundraising activities will also be undertaken with the aim of generating further unrestricted donations, in addition to the £29,549 at the year end (2022: £41,463), so that the charity can also seek to advance the education of young people in the North East by providing grants to help fund appropriate projects.

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SIGNIFICANCE

Trustees' Annual Report (continued)

Year ended 31 May 2023

applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales 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 year. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate 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 Charity (Accounts and Reports) Regulations 2008 and the provisions of the charities governing document. They 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.

The trustees' annual report was approved on 01 February 2024 and signed on behalf of the board of trustees by:

Mary Hughes Trustee (Chair)

Daryn Robinson Trustee (Treasurer)

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SIGNIFICANCE

Independent Examiner's Report to the Trustees of SIGNIFICANCE

Year ended 31 May 2023

I report to the trustees on my examination of the financial statements of SIGNIFICANCE ('the charity') for the year ended 31 May 2023.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with

I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since th 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

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

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

  3. the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Rachael Oswald ACA Member of the ICAEW

Stephenson Coates Audit Limited West 2, Asama Court Newcastle Business Park Newcastle upon Tyne NE4 7YD

01 February 2024

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SIGNIFICANCE

Statement of Financial Activities

(incorporating the income and expenditure account)

Year ended 31 May 2023

Notes
Income and endowments
Donations, legacies and grants
4
Total income
Expenditure
Expenditure on charitable activities
5, 6
Total expenditure
Net income and net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
Restricted
funds
2023
Total
funds
2022
Total
funds
£
£
£
£
26,599
570,000
596,599
793,630
26,599
570,000
596,599
793,630
38,513
173,000
211,513
95,231
38,513
173,000
211,513
95,231
(11,914)
397,000
385,086
698,399
41,463
656,936
698,399
29,549
1,053,936
1,083,485
698,399

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 10 - 15 form part of these financial statements.

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SIGNIFICANCE

Balance Sheet

31 May 2023

Notes
Current assets
Cash at bank and in hand
Creditors: amounts falling due within one year
11
Net current assets
Total assets less current liabilities
Net assets
Funds of the charity
Unrestricted funds
Restricted funds
Total charity funds
12, 13		 2023
2022
£
£
1,084,745
699,399
1,084,745
699,399
1,260
1,000
1,083,485
698,399
1,083,485
698,399
1,083,485
698,399
29,549
41,463
1,053,936
656,936
1,083,485
698,399

These financial statements were approved by the board of trustees and authorised for issue on 01 February 2024, and are signed on behalf of the board by:

Mary Hughes Trustee (Chair)

The notes on pages 10 - 15 form part of these financial statements.

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SIGNIFICANCE

Statement of Cash Flows

Year ended 31 May 2023

Cash flows from operating activities
Net income
Adjustments for:
Other interest receivable and similar income
Changes in:
Trade and other creditors
Cash generated from operations
Interest received
Net cash from operating activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
2022
£
£
385,086
698,399
260
1,000
385,346
699,399
385,346
699,399
385,346
699,399
699,399
1,084,745
699,399

The notes on pages 10 15 form part of these financial statements.

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SIGNIFICANCE

Notes to the Financial Statements

Year ended 31 May 2023

1. General information

The charity is registered charity in England and Wales and is a charitable incorporated organisation. The address of the principal office is Emmaus Village, Pemberton Road, Allensford, Consett, DH8 9BA.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity. SIGNIFICANCE meets the definition of a public benefit entity under FRS 102.

Going concern

The charity has reviewed its cash flow forecasts and there is a reasonable expectation that it has adequate resources to continue in operational existence for at least the next twelve months and on this basis the charity is considered to be a going concern.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. 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. There are no key judgements or estimates that impact on the financial statements.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future projects or commitments.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to income:

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SIGNIFICANCE

Notes to the Financial Statements

Year ended 31 May 2023

3. Accounting policies (continued)

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes VAT, and is classified under headings of the statement of financial activities to which it relates:

Grants payable are recorded once the charity has made an unconditional commitment to pay the grant which is communicated to the beneficiary or the grant has been paid, whichever is the earlier. Grants offered subject to conditions which have not been met at the balance sheet date are noted as a commitment, but not provided as expenditure.

Governance costs represents expenditure incurred in connection with the administration of the charity and compliance with constitutional and statutory requirements.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Voluntary assistance

to quantify the value of the time given, and accordingly it is neither recorded as donated income nor as an expense in the financial statements.

Comparative figures

The charity present their financial statements for the second reporting period since establishing. The prior year figures are for a reporting period 18 May 21 31 May 2022.

4. Donations, Legacies and Grants

Donations, Legacies and Grants
Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Donations & Legacies
Donations 26,599 26,599
Grants
The Sisters of Mercy Sunderland 570,000 570,000
-------------------------------- -------------------------------- --------------------------------
26,599 570,000 596,599
================================ ================================ ================================

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SIGNIFICANCE

Notes to the Financial Statements

Year ended 31 May 2023

4. Donations, Legacies and Grants ( continued )

Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Donations & Legacies
Donations 43,630 43,630
Grants
The Sisters of Mercy Sunderland 750,000 750,000
-------------------------------- -------------------------------- --------------------------------
43,630 750,000 793,630
================================ ================================ ================================
Expenditure on charitable activities by fund type
Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Grants payable (Note 7) 36,960 173,000 209,960
Other activities 93 93
Legal & Professional fees 1,460 1,460
---------------------------- -------------------------------- ----------------------------
38,513 173,000 211,513
============================ ================================ ================================
Unrestricted Restricted Total Funds
Funds Funds 2022
£ £ £
Grants payable (Note 7) 93,064 93,064
Other activities 207 207
Legal & Professional fees 1,960 1,960
---------------------------- -------------------------------- ----------------------------
2,167 93,064 95,231
============================ ================================ ================================

5. Expenditure on charitable activities by fund type

6. Expenditure on charitable activities by activity type

Activities
undertaken Total funds
directly Support costs 2023
£ £ £
Grants payable (Note 7) 209,960 209,960
Other activities 93 93
Legal & Professional fees 1,460 1,460
-------------------------------- -------------------------------- ----------------------------
210,053 1,460 211,513
================================ ================================ ================================

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SIGNIFICANCE

Notes to the Financial Statements

Year ended 31 May 2023

6. Expenditure on charitable activities by activity type ( continued )

Activities
undertaken Total funds
directly Support costs 2022
£ £ £
Grants payable (Note 7) 93,064 93,064
Other activities 207 207
Legal & Professional fees 1,960 1,960
-------------------------------- -------------------------------- ----------------------------
93,271 1,960 95,231
================================ ================================ ================================
rants payable
Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Youth Ministry Trust 173,000 173,000
Flame 31,960 31,960
Catholic Scouts 3,000 3,000
Pope John Paul II Award Ceremony 2,000 2,000
---------------------------- -------------------------------- ----------------------------
36,960
============================		 173,000
================================		 209,960
================================

7. Grants payable

Grants payable in the prior period were made in total to the Youth Ministry Trust, £93,064 (restricted fund).

8. Net incoming resources

Net incoming resources for the charity is stated after charging:

et incoming resources for the charity is stated after charging:
2023 2022
£ £
Fees payable to the independent examiner for:
Independent examination of the financial statements 1,050 1,000

9. Staff costs

There were no staff costs in the year (2022: None).

The average head count of employees during the year was Nil (2022: Nil).

The charity considers its key management personnel to be the trustees. See note 10.

10. elated party transactions

The trustees did not receive any remuneration during the year and were not paid or reimbursed for any expenses.

There are no related party transactions during the year ended 31 May 2023 (2022: None).

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SIGNIFICANCE

Notes to the Financial Statements

Year ended 31 May 2023

11. Creditors: amounts falling due within one year

2023 2022
£ £
Other creditors 1,260 1,000
12. Analysis of charitable funds
At At
1 June 2022 Income Expenditure 31 May 2023
Unrestricted funds £ £ £ £
General funds 41,463 26,599 (38,513) 29,549
============================ ================================ ============================ ============================
At At
1 June 2022 Income Expenditure 31 May 2023
Restricted funds £ £ £ £
The Sisters of Mercy Sunderland 656,936 570,000 (173,000) 1,053,936
============================ ================================ ============================ ============================
Total charitable funds 698,399 596,599 (211,513) 1,083,485
================================ ================================ ================================ ================================
Comparatives:
At At
18 May 2021 Income Expenditure 31 May 2022
Unrestricted funds £ £ £ £
General funds 43,630 (2,167) 41,463
============================ ================================ ============================ ============================
At At
18 May 2021 Income Expenditure 31 May 2022
Restricted funds £ £ £ £
The Sisters of Mercy Sunderland 750,000 (93,064) 656,936
============================ ================================ ============================ ============================
Total charitable funds 793,630 (95,231) 698,399
================================ ================================ ================================ ================================

The Sisters of Mercy Sunderland funding received to assist the Youth Ministry Trust (YMT) and contribute to modernisin -sufficient and no longer reliant on grant funding from the Diocese of Hexham & Newcastle.

13. Analysis of net assets between funds

nalysis of net assets between funds
Unrestricted Restricted Total Funds
Funds Funds 2023
£ £ £
Current assets 30,809 1,053,936 1,084,745
Creditors less than 1 year (1,260) (1,260)
-------------------------------- -------------------------------- --------------------------------
Net assets 29,549 1,053,936 1,083,485
================================ ================================ ================================

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SIGNIFICANCE

Notes to the Financial Statements

Year ended 31 May 2023

14. Prior period Statement of Financial Activities

Period ended 31 May 2022
Unrestricted Restricted Total
funds funds funds
£ £ £
Income and endowments
Donations, legacies and grants 43,630 750,000 793,630
---------------------------- -------------------------------- --------------------------------
Total income 43,630 750,000 793,630
============================ ================================ ================================
Expenditure
Expenditure on charitable activities 2,167 93,064 95,231
---------------------------- -------------------------------- --------------------------------
Total expenditure 2,167 93,064 95,231
============================ ================================ ================================
---------------------------- -------------------------------- --------------------------------
Net income and net movement in funds 41,463 656,936 698,399
============================ ================================ ================================
Reconciliation of funds
Total funds brought forward
---------------------------- -------------------------------- --------------------------------
Total funds carried forward 41,463 656,936 698,399
============================ ================================ ================================

The prior period was the first set of financial statements for the Charity.

15. Post balance sheet events

Following the year end, the following material events have occurred:

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