OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2022-03-31-accounts

REGISTERED COMPANY NUMBER: 00090288 (England and Wales) REGISTERED CHARITY NUMBER: 222041

REPORT OF THE TRUSTEES AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 FOR

CHILDREN NORTH EAST (A COMPANY LIMITED BY GUARANTEE)

Read, Milburn & Co 71 Howard Street North Shields Tyne and Wear NE30 1AF

CHILDREN NORTH EAST

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Page
Report of the Trustees 1 to 18
Report of the Independent Auditors 19 to 21
Consolidated Statement of Financial Activities 22
Consolidated Balance Sheet 23 to 24
Consolidated Cash Flow Statement 25
Notes to the Financial Statements 26 to 42

CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2022. The trustees have adopted the provisions of 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).

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing documents

Children North East is a registered charity in the United Kingdom and a company limited by guarantee registered in England. The governing instruments are the memorandum and articles of association as adopted by special resolution passed in 2007.

Recruitment and appointment of trustees

Trustees of Children North East are also directors of the company. They are appointed at the annual general meeting for three years. A third of Trustees (selected by those longest in office) retire in rotation at each annual general meeting but may be re-elected for a further 3-year period. The Board also appoints during the year as necessary.

Since the last annual report four trustees have retired, with two of these being subsequent to the financial year end. The Board reviews expertise among the existing trustees and recruits' people with expertise that the Board lacks. The Board is currently undergoing a recruitment process to appoint additional Trustees to ensure there is the right mix of skills and experience among the trustees.

Trustee induction, training and appraisal

New trustees are provided with information about the charity, the role of the Board and the responsibilities of trustees.

Induction training is tailored to the experience, skills and interests of each trustee but includes meetings with the chief executive and key staff. Induction may include: visiting projects and meeting staff and volunteers. All trustees have an annual conversation with the chair to review their contribution.

Organisational structure

The governing body is the Board, which normally comprises twelve trustees. The Board is responsible for the strategic direction, policy and finances of the charity. The Board exercises its responsibilities through full board meetings and operational board meetings. The Chief Executive manages the charity on behalf of the trustees. There is a clear structure and reporting accountabilities that runs through the whole organisation.

Page | 1

CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

Risk management

Trustees maintain a register of the main strategic, business and operational risks to the charity and ensure that systems and procedures have been established to reduce the risks. Risks are reviewed, actions recommended and monitored in board and sub-committee meetings.

The key controls used by the charity to mitigate risks include:

Trustees are satisfied that the major risks identified have been adequately mitigated.

OBJECTIVES AND ACTIVITIES

Objectives

The charity's objects are:

Children North East exists ‘because growing up can be hard’ for children, young people and their parents. The charity pays particular attention to transition stages during growing up when things can go wrong but can be put right relatively easily by effective early intervention. The five stages and the outcomes that the charity aims to achieve are:

  1. Pregnancy and Babyhood – we want babies to feel safe and loved

  2. Starting School – we want children to feel ready and looking forward to starting school

  3. Changing School – we want children and young people to feel confident in school

  4. Adolescence – we want young people to feel valued and confident

  5. Becoming independent – we want young people to feel they are given a chance

Put together these outcomes add up to Children North East’s mission that ‘children and young people grow up healthy and happy’.

The United Kingdom is a signatory to the United Nations Convention on the Rights of the Child, which gives all children the right to health, education, safety, play, family life, protection from harm and

Page | 2

CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

support when things go wrong at each stage of growing up. Children North East targets services to those children and young people who do not enjoy all these rights.

Children North East was established in 1891, making 2021 our 130[th] anniversary. Throughout that time, the overall objective of the charity has been to make a positive difference to the lives of babies, children and young people.

Children North East has worked tirelessly over the last year to ensure that we could continue to deliver our services to the people we work with. Because of the ongoing impact of the COVID-19 pandemic, this has invariably meant that we have delivered less of what we would normally do and continued different ways of working.

Our Strategy and Theory of Change

Strategy

Children North East have a 5-year Strategy covering 2021 to 2026, which sets out how the charity will achieve its objectives, and how it will create and make the most of opportunities over the coming years, in line with Our Vision that babies, children and young people grow up to be healthy and happy.

In 2021 we reviewed our outcomes against our purpose and strategy, and we have made some refinements to this. Now our ambitions are to ensure that all babies, children and young people are given the opportunities to be happy and healthy and to grow up feeling:

We continue to work against our strategic objectives and have developed a theory of change that reflects the intention of our work to meet its purpose and the strategic objective agreed for the next 5 years. Our objectives are:

Sustainability and growth

Reach

Impact

Page | 3

CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

Theory of Change

Our strategy supported us with a 5-year vision of where we want to take the charity. It provided us with a solid foundation, and, as outlined in our review of the year, achievements have been made and we are continuing to progress well. During 2021 we also reviewed our theory of change and decided to adapt and renew a version of this. Our purpose remains the same; we want to ensure all babies, children and young people are given the chance to grow up happy and healthy. Our work supports this purpose and we deliver against this through the following support services:

We recognise the importance of directly delivering services to the people we work with, in many of our services we offer a bespoke approach, ensuring that babies, children, young people and families are supported in the way that they want. However, what we recognised through developing the theory of change is that we don’t always put equal weight into trying to change the ways things work that stops babies, children and young people from being happy and healthy, and so in 2022 we want to:

Whilst this is a key ambition of our leadership and management team, in the long term it is our ambition that everyone who works for Children North East are supporting us to reach these wider goals.

We will be training, developing and monitoring the impact of this work by growing our presence across a number of platforms and will be able to report in next year’s annual report about achievements made.

Page | 4

CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

ACHIEVEMENTS AND PERFORMANCE

COVID Impact

As we moved back into working in the office in September 2021, we had learnt so much from our time during COVID-19 that we now have some new ways of working. This has included hybrid working options for staff, and we have worked to ensure that all staff have the technology to enable them to work from home when needed. We have incorporated some online work into the projects that we have been delivering, this includes continuing to use (when appropriate) online counselling sessions to young people.

During the pandemic, we have been conducting a consultation in partnership with Newcastle University, seeking out and listening to the experiences of children and young people during COVID19, although the findings will not be available till late 2022, it will provide us as a charity with further evidence of what our focus should be in the coming years.

Sustainability and Growth

Operational

In the 2021/22 financial year, we embarked on a restructure of our operational teams. This was long overdue and put on hold because of COVID-19. We reviewed all of our work and put in place a more robust management structure to support the growth and sustainability of the work that we do. Our Service Managers were replaced with two Heads of Service who take on a more overarching role both internally and externally, freeing them up from day-to-day management and taking opportunities to grow our work in other areas. We also appointed two Deputy Heads who provide a more dedicated day to day management to our ever-expanding work. Lastly, we appointed seven team managers who hold a portfolio against the delivery work outlined above within our new theory of change. We continue to deliver our sexual health work and our youth work offer is developing, alongside our participation and consultation work which is acting as a gateway into other provision that we offer.

We are also collaborating with more organisations, we continue our UK Cost of the School Day project with the Child Poverty Action Group and next year we are in the process of starting new projects with Streetwise and YMCA in Northumberland, Mortal Fools and N.E.S.T (North East Solidarity and Teaching).

We have been successful in sustaining funding for much of what we have traditionally done over the last five years. We still have a thriving Peer Mentoring Programme, we continue to run our therapeutic infant mental health programme (renamed Little Minds in Mind in early 2022), we have developed our allotment space and our counselling services for children and young people continues to grow momentum and provide a much-needed service. Our Poverty Proofing© the School Day work continues to grow nationally. Our early help work in Newcastle and our growing specialist intensive family intervention service are all working incredibly hard to support families through difficult times. We also work with parent volunteers, many of whom have gained confidence since using our services and we have ambition to grow this area as we truly believe that lasting social change is achieved when led by those with lived experience.

Page | 5

CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

We have also grown in many new areas, gaining confidence in delivering new programmes that are having a profound and positive effect on babies, children and young people. Here is a short summary of some of that growth:

Poverty Proofing© Health Settings

Children North East, in partnership with the Child Health and Wellbeing Network (CHWN) are combining expertise in addressing both health inequalities and poverty in the North East and North Cumbria, in the delivery of the holistic programme ‘Tackling Inequalities for Children’ (TIC). We are Poverty Proofing© eight settings across our four Integrated Care Partnerships in the North East with a focus on reducing health inequalities in both rural and urban areas across the following health areas: sexual health, general practice, paediatric speech and language therapy, CAMHS (Child and Adolescent Mental Health Services) service pathway, paediatric outpatients, and social prescribing.

Patient feedback following consultation during the Poverty Proofing© process:

‘It’s been cathartic! It’s been safe. It’s been a 1:1 conversation with you and a chance to talk about the community, and I feel like I’ve been given a chance to talk about my community.’

Feedback from Health Professional:

‘I really enjoyed the training, it made me think of a lot of things you just don’t think of, or you make these assumptions, you always see a phone number and you don’t think about those without one. The whole conversation is making us think about what we’re doing and reaching a whole layer of the population we might not already be reaching.’

Poverty Proofing© in Warwickshire

Our partnership with Warwickshire Council has combined expertise in health and social inequalities in Warwickshire as part of the wider Tackling Social Inequalities in Warwickshire Strategy 2021 which is being carried out across the county, including maternity services, leisure services, palliative care, and upcoming work in housing. The production of our Poverty Proofing [©] e-module has provided opportunity for a number of healthcare staff to be trained in poverty awareness across Warwickshire County.

Tweet from Sharon Hudson, Strategic Nurse Consultant in Palliative Care and Clinical Lead EoL Warwickshire ICS Equity-Education Research:

‘We are starting some work with @povertyproofcne looking at the impact of financial hardship on endof-life care. Already hearing of oxygen concentrators switched off and mobility scooters which can’t be charged, it is unforgiveable.’

Domestic Abuse Recovery Programme (DARE)

DARE is a community-based programme for children aged between 5 – 16 years who have been exposed to domestic violence and abuse. This is a recovery programme which seeks to give children an opportunity, in a safe and therapeutic way, to move beyond the violence and abuse that has happened in their family. During the group, the children are given an opportunity to process and understand what they have experienced. During 2021/22 we supported 130 victims of domestic abuse.

Page | 6

CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

Feedback from parent:

I have found the whole thing fascinating and enjoyable. It’s been great for my kids to have a safe place. I have done a lot of courses through Social Services but my kids have never had a place to ever be able to come to terms with everything and feel like they’re not being questioned or feel like they were going to get me into trouble. I have found Queenie fascinating and passionate which has made this even more interesting. There have been some things which I believe that kids need to be aware of, abuse, especially emotional abuse, and I feel this course should be there for every family as it’s something that has brought me and my kids a lot closer about accepting and moving on from problems or arguing that we all have been through.

ROSES

ROSES (Recovery of Survivors Emotional Support) is a peer support group that runs weekly for parent victims to join. Parents have engaged in Yoga sessions to promote good physical and mental health, participating in food hygiene classes, gaining a certificate in Food Hygiene which could support volunteer or employment opportunities. This group is open to victims of domestic abuse that may have attended domestic abuse programmes with other agencies or for those not yet ready for the DARE programme. We have supported 10 women on this programme

SEND (Special Educational Needs and Disability) work

Within our Youth Service, there has been exciting developments to meet the needs of young people aged 11-25 with special educational needs and disabilities, this includes:

Page | 7

CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

CAN (Confident Adults North East)

The CAN project helps 16–25-year-olds from Newcastle and Gateshead who may require support to transition into adulthood or make steps towards improving their confidence and reducing isolation. CAN aims to support young adults to overcome any barriers affecting them to move forward in their lives. This project is being fully funded by a major donor.

Case Study

Josef is a 21-year-old who was referred to CAN because he was socially isolated and experiencing low self-esteem. Josef didn’t have any positive activities in his life. Josef took on a lot of caring responsibility with younger siblings at home after his father passed away 2 years ago. Josef was very keen to work but he was struggling to apply for and find work. English is not Josef’s first language and he lacks confidence in his ability to communicate with others. He has a passion for dance but this is only ever something he has done at home.

Josef was paired with a mentor called David and a shared passion for dancing was an instant ice breaker. They used a local dance studio, Dance City, as a base to meet and get to know each other and David was able to get Josef enrolled onto an Afro dance class, every Wednesday evening with the financial support from CAN. This was an amazing opportunity for Josef as this is something Josef has only dreamt about but could never afford.

David then supported Josef with other elements in his life. As Josef dreams of opening his own Dance studio, David set up a meeting with a producer at Dance City, this gave Josef an opportunity to find out all about career options and academic courses available to him.

These discussions were beneficial because although he is not ready for this yet it gave him hope for the future. David worked with Josef on his CV and supported Josef to get relevant qualification documents that he was missing from school. David also supported Josef to get his right to work documents.

Josef attended two workshops with Hays recruitment around building CV’s and Interview skills. David and Josef explored work options and looked into temporary career options to get Josef into the job market. They secured an interview with a hotel in Newcastle and CAN were able to make links with a community interest company called ‘Suitability CIC’ to get Josef some interview clothes donated as this was something he did not own.

David was able to meet Josef before the interview to prep him and make sure he was feeling confident, Josef did amazingly well in his interview and he got the job!

Josef has now started his employment and he is absolutely loving it. He feels ecstatic, proud and so very grateful to CAN and his mentor for all the support. David has a few more sessions left with Josef where he will make sure he is supported in the first crucial weeks of employment. David will work on some budgeting skills with Josef so he is able to manage his first ever wage at the end of the month. Thanks to CAN and the dedicated time from a committed volunteer, this young person’s life has been completely transformed in just 7 weeks.

This is just one example of the incredible and unique support CAN is able to offer young adults in what can be a difficult time in their lives and how this support, thanks to you is life-changing.

Page | 8

CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

Neurodiversity work

Masquer-Aid is a unique project for neurodivergent young people which has developed and adapted over the last year to meet the needs and demand of young people who are pre or post Neuro diagnostic assessment. Young people receive bespoke support from our highly skilled team through short-term 1:1 support, small group work or counselling. We aim to build young people’s confidence and selfawareness, get help with their mental health and come to terms with their diagnosis. Our work has been developed with a focus group of people who are neurodivergent to ensure that what we offer is shaped by people with lived experience.

Feedback by a parent whose child has been supported by Masquer-Aid:

‘His communication has definitely improved; he’s actually spoke to his psychiatrist & people at college. Admittedly not much but a big step for him! His enthusiasm for coming to the group is massive for his social development, he actually sets his own alarms etc. & reminds us about it rather than the other way round! Considering how averse he was to coming to the group in the first place & we could barely get him to leave the house for school he’s come a long way, especially deciding to go to two groups a week. I know these are small differences that other people would barely notice & there’s still huge amounts of work to be done but for himself it’s really big steps’

Fundraising

Our approach to fundraising is to encourage supporters and local businesses to fundraise for Children North East, and to engage in our events. Businesses also provide pro bono support and their sponsorship of fundraising events organised by Children North East helps reduce costs and increases net income.

Due to the impact of COVID-19, the majority of the usual fundraising events organised by Children North East have been unable to go ahead during the past two financial years. However, a number of events are currently being planned for the 2022/23 financial year and an Events and Community Officer has been appointed to help grow this area post COVID.

The Hope for Christmas appeal took place again and raised a record amount of just over £40,000, including £6,000 raised as part of The Big Give Appeal. The focus of the Appeal was to “Give a Child a Hand Up not a Hand Out”.

Children North East fundraising conforms to the requirements of the Fundraising Regulator. The Board of Trustees monitors fundraising activities carried out by Children North East. There were no complaints made to Children North East about our fundraising during the year.

Page | 9

CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

This chart shows the sources of fundraising income during the financial year, other than the People’s Postcode Lottery:

----- Start of picture text -----
6.4%
Activities and donations, including
7.0%
businesses
27.9%
130th Anniversary Appeal
9.8%
Hope for Christmas Appeal
Trusts
Regular Donors
21.9%
CNE Events
26.9%
----- End of picture text -----

Reach

Children North East have a footprint in every local authority in the North East, whether that is through direct delivery provision or delivering our unique and ground breaking Poverty Proofing© the School Day. Whilst direct delivery mainly takes place in Newcastle, Gateshead, North Tyneside and Northumberland, we reach out to South Tyneside and Sunderland through our work with the Police and Crime Commissioner, and we have plans in 2022/23 to expand this reach and will be setting up hubs in Northumberland and Gateshead.

We worked with 377 organisations, through our referrals system, including schools, colleges, local authorities, the police, the health sector and the voluntary sector. We work in schools in every part of the North East region and in other parts of the United Kingdom.

Children North East provides opportunities for adults and young people to volunteer their time as mentors and offers practice placements for social work students. During the financial year, we worked with 57 (2021: 44) volunteers and 4 (2021: 15) students. We are looking to expand these opportunities in 2022/23.

During the 2022 financial year, Children North East provided services directly to a total of 4,132 individuals (2021: 2,949). The impact of COVID-19 continued to be reflected in these figures and so they are not comparable with previous years. We also had impact on children at 595 schools where we delivered our Poverty Proofing[©] programme.

Page | 10

CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

Demographics

Direct services were provided to the following demographics:

----- Start of picture text -----
By age
60.0%
50.0%
50.0%
40.0%
30.0%
20.6%
20.0%
9.8% 9.9%
10.0% 4.2% 5.5%
0.0%
Babies: age 0-1 Pre-school: age 2- Primary school: Secondary school: Young people; age Adults: age 25+
4 age 5-11 age 12-18 19-25
By gender
60.0% 56.6%
50.0%
39.6%
40.0%
30.0%
20.0%
10.0%
3.0%
0.8%
0.0%
Boys Girls Not known Other
Boys Girls Not known Other
----- End of picture text -----

Overall, we worked with 708 (2021: 554) families.

Activities

During the financial year, our staff delivered the following amount of activities to help babies, children and young people:

----- Start of picture text -----
1,000,100
•Minutes of Activities
7,500
•Support calls, text messages and e-mails
1,132
•New cases for support opened
----- End of picture text -----

Page | 11

CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

We have delivered the following to those who need it most, including:

These services were provided by:

If the volunteers were paid at the Living Wage (Children North East is a Living Wage Foundation employer) their contribution would have been worth approximately £47,652 (2021: £22,943).

Impact

Children North East want all babies, children and young people to be happy and healthy and to grow up feeling; safe and loved, resilient to challenges they may face and feel valued and confident.

To enable us to be able to understand the impact we will have, we have invested in systems this year to make sure we know the impact that we are having, this includes continuing to invest in our CiviCRM system, and upgrading our Outcome Star™ so that staff can put this information online, providing us with much more efficient feedback against our core outcomes.

We also continue to assess our work through evaluations, feedback and case studies that bring the impact of our work to life, and we will be growing this aspect of our work over the next year.

Our service users are asked to complete an end of service questionnaire. Of those completed:

Page | 12

CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

FINANCIAL REVIEW

Financial Position

At the balance sheet date, the group held funds of £582,890 (2021: £276,085) of which £422,500 (2021: £422,500) was designated in accordance with the reserves policy and an additional £29,777 (2021: £40,650) was represented by tangible fixed assets; there were no restricted funds. Excluding provisions, the group's free reserves amounted to £180,030 (2021: a deficit of £79,955).

Principal Sources of Income

The main sources of income are contracts and grants from the public sector and grant making bodies. These are a mixture of both restricted and unrestricted funds. In addition, we generate sales income through offering our services, in particular in regard to our Poverty Proofing© service.

We are very grateful to People’s Postcode Lottery for £400,000 unrestricted income, plus a one-off extra award of £400,000. Previously, this funding has been utilised in advance of the financial year it related to, but thanks to this extra award, the funding is now back on track and is being spent in the period it is granted for. £150,000 of the extra award was used to fund our Parent Infant Partnership work from July 2021 until 30 June 2022 in order to keep this service running.

Other unrestricted income is generated through fundraising, donations and events.

Total income was higher than the previous year and is reflected in the reported surplus for the year.

It is the policy of the Board to wind down and close activities where there is no prospect of securing adequate funding.

Grants

Our thanks and appreciation go to the following for their grants during the financial year:

iwill Newcastle Fund Action for Children Newcastle University Appletree NHS Charities Together Blyth Offshore Wind Farm Fund NHS North Cumbria CCG-Grassroots Small Grants Fund Buckland Charitable Trust NIHR Applied Research Collaboration North East & Cumbria Cafcass North of Tyne Combined Authority Carnegie Trust North Tyneside Council Carr Ellison Charitable Trust North Tyneside Learning Trust Child Health and Wellbeing Network Northumberland Children’s Trust Child Poverty Action Group Northumberland Village Homes Trust Children in Need Northumberland Youth Link Comic Relief Northumbria Police and Crime Commissioner Community Foundation - Durham & Darlington People’s Postcode Lottery Community Foundation - Tyne & Wear Pilgrim trust Community Health Fund Screwfix Foundation Coop Foundation Sir James Knott Trust Craft Council Street Games

Page | 13

CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

Department for Digital, Culture, Media & Sport Tesco Department for Education TIN ARTS Hadrian Trust Tyne and Wear High Sheriff High Sheriff of Northumberland W A Handley Charitable Trust Joseph Strong Frazer Trust Warburtons Leslie and Lilian Manning Trust West Midlands Police and Crime Commissioner Linden Family and Prime Funds - CF Yorkshire Building Society Ncle CC Arts Council England Culture Bridge Your Homes Newcastle Newcastle City Council Youth Focus : North East

Restricted income

We received income through contracts with the following commissioners:

Ashington Learning Partnership Cumbria, Northumberland, Tyne & Wear NHS Newcastle and Gateshead Clinical Commissioning Group Newcastle City Council NHS Newcastle and Gateshead North Tyneside Council Northumberland County Council Warwickshire County Council

Children North East competes for contracts that are consistent with our mission, skills and experience, sometimes in partnership with other organisations.

Donations

We are very grateful to all the businesses and individuals who support Children North East, there are too many to list. A special thank you goes to the following, who are some of the individuals and companies who have made donations over £1,000 during the financial year, as well as a number of other donors who wish to remain anonymous:

Andie Stokoe John Lewis Bellway Homes Mrs Helen McArdle Callum Underwood Phillip Lee Drummond Central Robertsons Construction Ltd

Fundraising and events

Thank you to all of the groups and individuals who have fundraised for us over the year, taking part in everything from quiz nights to walking challenges to raise funds and awareness for Children North East.

Page | 14

CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

Reserves Policy and Going Concern

The Board reviewed the reserves policy during the year as follows:

The Board designates unrestricted reserves as:

The Board has decided that fluctuations in restricted income are always known in advance and that plans will always be made to manage expenditure against this income without calling on reserves. The majority of expenditure is always staff salaries.

The Board considers that sufficient reserves should be maintained to manage the charity in the event of sudden withdrawal of significant unrestricted income. The Board has examined the pattern of income and expenditure over recent years and decided that a realistic ‘comfortable’ level of General Funds (free reserves) should be between £250,000 and £300,000.

Investment Policy

When investments are made the investment objective is to provide a balanced return between income and capital growth with a low to medium level of risk. Investments are made within an ethical framework set by the Board:

There are currently no investments in place.

Funds in deficit

In accordance with FRS 102, the charity has recognised a provision in its financial statements for the present value of future additional contributions to its defined benefit pension scheme (as detailed in notes 19 and 22), amounting to £55,417 (2021: £267,020). As a result, in the prior financial year, there was a net deficiency in general, unrestricted funds of £146,415.

Page | 15

CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

FUTURE PLANS

As part of our 5-year Strategy, and following the growth sustained in the past year, we have reviewed our central support services and a restructure of the finance, HR and fundraising, marketing & comms teams has taken place during 2022 to allow the teams to grow in line with the organisation. We have appointed a new Income Generation Director to lead to on growing our income, both unrestricted and restricted. As part of diversifying and growing our income, we are looking at a sales strategy within all areas of our support services, to allow our services to be accessed as required.

Operationally, we are ensuring that we have the right resource to work efficiently in the areas where we have secured funding, including setting up an office base. This commenced with a base in Ashington in the summer of 2022.

We continue to reflect on the work that we do against our strategic objectives and our aim is to grow the presence of Children North East in more areas of the North East over the coming years. We are also looking at how we can maximise opportunities to work in other areas of the UK, including Wales, Scotland and Northern Ireland, specifically in relation to our Poverty Proofing work.

Page | 16

CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

REFERENCE AND ADMINISTRATIVE DETAILS

Trustees Mr David W Bavaird, Chair
Mrs Debbie McCordall resigned 15 December 2021
Mr Ian Railton resigned 11 July 2021
Mrs Lucy Kendall resigned 5 July 2021
Mr Stephen Robinson resigned 14 September 2022
Prof Eileen Kaner resigned 15 December 2021
Mr Mark Stoddart
Mr Alex Coburn
Ms Philippa Hughes
Reverend Sarah Lunn
Mrs Lisa Alcorn appointed 15 June 2022
Mrs Lynn Charlton appointed 15 June 2022
Mr Liam Clark-Brown appointed 15 June 2022
Mrs Louise Hall appointed 15 June 2022
Chief Executive Officer Mrs Leigh Elliott
Operations Director Ms Michele Deans
Head Office & Registered Office 89 Denhill Park
Newcastle upon Tyne,
NE15 6QE
Auditors Read, Milburn and Co
71 Howard Street
North Shields
NE30 1AF
Bankers Unity Trust Bank plc
Nine Brindley Place
Birmingham
B1 2HB
Investment Managers Speirs & Jeffrey Limited - currently no investments
36 Renfield Street
Glasgow
G21 NA

Page | 17

CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

STATEMENT OF TRUSTEES RESPONSIBILITIES

The trustees (who are also the directors of Children North East for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires directors to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the directors are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

AUDITORS

The auditors, Read, Milburn & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the Board of trustees on 14 December 2022 and signed on its behalf by:

Mr David W Bavaird, Chair

Page | 18

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF CHILDREN NORTH EAST

Opinion

We have audited the financial statements of Children North East (the 'parent company') and its subsidiary (the ‘group’) for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Company Balance Sheets, the Consolidated and Parent Company Cash Flow Statements 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditors responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company 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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are 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 Report of the Independent Auditors 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 consolidated 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 this gives rise to a material misstatement in the consolidated financial statements themselves. 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.

Page | 19

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF CHILDREN NORTH EAST

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the parent company for the purposes of company law) are responsible for the preparation of the consolidated 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 consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the trustees are responsible for assessing the charitable company'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 charitable company or to cease operations, or have no realistic alternative but to do so.

Page | 20

REPORT OF THE INDEPENDENT AUDITORS TO THE ME-MBERS OF CHILDREN NORTH EAST

Our responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors 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 consolidated financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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. In this regard, our procedures include the following:

A further description of our responsibilities for the audit of the consolidated financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent company's members those matters we are required to state to them 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 parent company and the parent company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Nicholas Liley FCA (Senior Statutory Auditor) for and on behalf of Read, Milburn & Co 71 Howard Street North Shields Tyne and Wear NE30 1AF

15 December 2022

Page | 21

CHILDREN NORTH EAST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022

Unrestricted
Funds
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
585,288
Charitable activities
4
General operations
18,499
Children and young people
782,423
Families and parenting
410,124
Parent infant partnership
165,586
Other trading activities
3
201,781
Other income
10,239
Total
2,173,940
EXPENDITURE ON
Raising funds
5
41,491
Charitable activities
6
General operations
293,537
Children and young people
832,679
Families and parenting
464,316
Parent infant partnership
257,442
Total
1,889,465
NET INCOME
284,475
Transfers between funds
22,330
Net movement in funds
306,805
RECONCILIATION OF FUNDS
Total funds brought forward
276,085
TOTAL FUNDS CARRIED FORWARD
582,890		 Restricted
Funds
£
-
-
358,751
42,820
-
-
5,725
407,296
-
5,725
336,629
42,612
-
384,966
22,330
(22,330)
-
-
-		 2022
Total
funds
£
585,288
18,499
1,141,174
452,944
165,586
201,781
15,964
2,581,236
41,491
299,262
1,169,308
506,928
257,442
2,274,431
306,805
-
306,805
276,085
582,890		 2021
Total
funds
£
611,198
38,872
690,536
440,781
293,731
109,743
117,491
2,302,352
47,836
725,189
568,216
398,263
258,693
1,998,197
304,155
-
304,155
(28,070)
276,085

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

The notes form part of these financial statements

Page | 22

CHILDREN NORTH EAST (REGISTERED NUMBER: 00090288)

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2022

Notes
FIXED ASSETS
Tangible assets
13
Investments
14
CURRENT ASSETS
Debtors
15
Cash at bank and in hand
25
CREDITORS
Amounts falling due within one year
16
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
PROVISIONS FOR LIABILITIES
18
NET ASSETS
FUNDS
20
Unrestricted funds:
General fund
Designated fund
Restricted funds
TOTAL FUNDS		 Group
2022
£
452,277
-
452,277
616,353
800,836
1,417,189
(1,231,159)
186,030
638,307
(55,417)
582,890
160,390
422,500
582,890
-
582,890		 Group
2021
£
463,150
-
463,150
354,061
368,364
722,425
(642,470)
79,955
543,105
(267,020)
276,085
(146,415)
422,500
276,085
-
276,085		 Charity
2022
£
452,277
1
452,278
616,353
800,836
1,417,189
(1,231,160)
186,029
638,307
(55,417)
582,890
160,390
422,500
582,890
-
582,890		 Charity
2021
£
463,150
1
463,151
449,779
362,889
812,668
(639,264)
173,404
636,555
(267,020)
369,535
(52,965)
422,500
369,535
-
369,535

continued…

The notes form part of these financial statements

Page | 23

CHILDREN NORTH EAST (REGISTERED NUMBER: 00090288)

CONSOLIDATED BALANCE SHEET - CONTINUED AS AT 31 MARCH 2022

The trustees have prepared group financial statements in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to charitable small companies.

The financial statements were approved by the Board of Trustees on 14 December 2022 and were signed on its behalf by:

Mr David W Bavaird, Chair

The notes form part of these financial statements

Page | 24

CHILDREN NORTH EAST

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2022

Notes
Cash flows from operating activities:
Cash generated from/(used in) operations
24
Interest paid
Net cash provided by/(used in) operating
activities
Cash flows from investing activities:
Purchase of tangible fixed assets
Net cash (used in)/provided by investing
activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of
the reporting period
Cash and cash equivalents at the end of the
reporting period		 Group
2022
£
433,611
(1,139)
432,472
-
-
432,472
368,364
800,836		 Group
2021
£
360,109
(2,113)
357,996
(12,366)
(12,366)
345,630
22,734
368,364		 Charity
2022
£
439,086
(1,139)
437,947
-
-
437,947
362,889
800,836		 Charity
2021
£
363,304
(1,858)
361,446
(12,366)
(12,366)
349,080
13,809
362,889

The notes form part of these financial statements

Page | 25

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the group and charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value, as modified by the revaluation of certain assets. The presentation currency of the financial statements is the Pound Sterling (£).

Going concern

The trustees are of the view that there are no material uncertainties regarding the charitable company's ability to continue and as such the charitable company is a going concern.

Group financial statements

The financial statements consolidate the results of the charity and its wholly owned subsidiary CNE Trading Ltd on a line-by-line basis. A separate Statement of Financial Activities and Income and Expenditure Account for the charity has not been presented because the charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property - not provided
Motor vehicles - at 20% on cost
Fixtures and fittings - at 20% on cost and 25% on cost

No depreciation is provided in respect of the freehold properties held, which is a departure from the Companies Act 2006 which requires all properties to be depreciated. The directors however consider that the adopted policy of non depreciation of freehold properties results in the accounts giving a true and fair view.

Page | 26

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES - continued

Related party exemption

The charitable company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

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

Pension costs and other post-retirement benefits

The company contributes to a defined contribution pension scheme for its employees. Pension costs are charged to the income and expenditure account when paid which results in spreading the cost of pensions over the employees working lives with the charity.

Investments

Investments are stated at mid market value at the balance sheet date. Purchases and sales include transaction fees charged by investment managers. All other fees are charged to expenditure.

Debtors

Debtors and prepayments are recognised at the settlement amount due or amount prepaid.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments.

Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount.

Financial instruments

Other than those mentioned above, the company only has financial assets and financial 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.

Page | 27

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

2. DONATIONS AND LEGACIES

Post Code Children Trust
Other donations and legacies
3.
OTHER TRADING ACTIVITIES
Fundraising events
Charges for goods & services		 2022
£
362,500
222,788
585,288
2022
£
24,731
177,050
201,781		 2021
£
400,000
211,198
611,198
2021
£
7,966
101,777
109,743

4. INCOME FROM CHARITABLE ACTIVITIES

General Children and Families and
Operations young people parenting
£ £ £
Grants 2,877 624,662 104,931
Contract income - 513,749 230,308
Spot purchase of services 15,622 2,763 117,705
18,499 1,141,174 452,944
2022 2021
Parent infant Total Total
partnership activities activities
£ £ £
Grants - 732,470 577,346
Contract income 165,006 909,063 846,081
Spot purchase of services 580 136,670 40,493
165,586 1,778,203 1,463,920

Page | 28

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

4. INCOME FROM CHARITABLE ACTIVITIES - continued

Grants received, included in the above, are as follows:

2022
£
Health
5,877
Trusts
58,639
Other
667,954
732,470
5.
RAISING FUNDS
Raising donations and legacies
2022
£
Staff costs
33,135
Other fundraising costs
8,356
41,491
6.
CHARITABLE ACTIVITIES COSTS
Direct costs Support Costs
(See note 8)
(See note 9)
£
£
General operations
149,668
149,594
Children and young people
1,075,242
94,066
Families and parenting
438,308
68,620
Parent infant partnership
239,933
17,509
1,903,151
329,789
7.
DIRECT COSTS OF CHARITABLE ACTIVITIES		 2021
£
-
32,243
545,103
577,346
2021
£
39,330
8,506
47,836
Totals
£
299,262
1,169,308
506,928
257,442
2,232,940
Staff costs
Motor & travel expenses
Staff training & recruitment
Volunteer costs
Other client costs		 2022
£
1,775,941
40,573
26,117
3,897
56,622
1,903,150		 2021
£
1,626,706
20,809
6,567
4,102
51,761
1,709,945

Page | 29

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

8. SUPPORT COSTS

Management & Governance
administration costs Totals
£ £ £
General operations 144,794 4,800 149,594
Children and young people 94,066 - 94,066
Families and parenting 68,620 - 68,620
Parent infant partnership 17,509 - 17,509
324,989 4,800 329,789
Support costs, included in the above, are as follows:
Management & administration
General Children and Families and
Operations young people parenting
£ £ £
Rent & rates (6,539) 8,472 12,000
Insurance 12,580 - -
Light & heat 3,421 6,086 -
Telephone 5,881 8,578 6,099
Printing, postage, stationery & advertising 6,969 7,561 2,084
Sundries 6,447 1,610 964
Repairs & maintenance 14,260 7,285 25,447
IT costs 43,487 38,870 6,340
Other costs 46,468 14,572 15,386
Depreciation of tangible fixed assets 9,186 1,032 218
Interest payable and similar charges 2,634 - 82
144,794 94,066 68,620
2022 2021
Parent infant Total Total
partnership activities activities
£ £ £
Rent & rates 6,000 19,933 27,499
Insurance - 12,580 7,916
Light & heat - 9,507 6,285
Telephone 3,081 23,639 24,884
Printing, postage, stationery & advertising 2,315 18,929 20,992
Sundries - 9,021 739
Repairs & maintenance - 46,992 18,326
IT costs 4,668 93,365 80,502
Other costs 1,227 77,653 35,876
Depreciation of tangible fixed assets 218 10,654 8,747
Interest payable and similar charges - 2,716 3,245
17,509 324,989 235,011

Page | 30

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

8. SUPPORT COSTS - continued

Governance costs

Auditors' remuneration
9.
NET INCOME/(EXPENDITURE)
Net income is stated after charging:
Auditors' remuneration
Depreciation - owned assets		 2022
2021
General
Total
Operations
activities
£
£
4,800
5,405
2022
2021
£
£
4,800
5,405
10,873
9,401

10. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2022 nor for the year ended 31 March 2021.

11. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2022
£
1,708,602
144,451
(43,977)
1,809,076		 2021
£
1,449,575
118,930
97,531
1,666,036

The key management personnel, including the trustees, are listed under Reference and Administrative Details. The total employee benefits of the key management personnel were £132,101 (2021 - £129,961).

The average monthly number of employees during the year was as follows:

2022 2021
All staff 79 66

Page | 31

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

11. STAFF COSTS - continued

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2022
£60,000 - £70,000
1
12.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
Restricted
Funds
Funds
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
611,198
-
Charitable activities
General operations
38,872
-
Children and young people
453,443
237,093
Families and parenting
229,590
211,191
Parent infant partnership
233,584
60,147
Other trading activities
109,743
-
Other income
18,516
98,975
Total
1,694,946
607,406
EXPENDITURE ON
Raising funds
47,836
-
Charitable activities
General operations
626,214
98,975
Children and young people
374,624
193,592
Families and parenting
228,853
169,410
Parent infant partnership
206,640
52,053
Total
1,484,167
514,030
NET INCOME
210,779
93,376
Transfers between funds
93,376
(93,376)
Net movement in funds
304,155
-
RECONCILIATION OF FUNDS
Total funds brought forward
(28,070)
-
TOTAL FUNDS CARRIED FORWARD
276,085
-		 2021
-
Total
funds
£
611,198
38,872
690,536
440,781
293,731
109,743
117,491
2,302,352
47,836
725,189
568,216
398,263
258,693
1,998,197
304,155
-
304,155
(28,070)
276,085

Page | 32

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

13. TANGIBLE FIXED ASSETS - GROUP AND CHARITY

COST
At 1 April 2021
Additions
At 31 March 2022
DEPRECIATION
At 1 April 2021
Charge for year
At 31 March 2022
NET BOOK VALUE
At 31 March 2022
At 31 March 2021		 Freehold
Property
£
422,500
-
422,500
-
-
-
422,500
422,500		 Motor
Fixtures
Vehicles
and Fittings
£
£
39,650
12,366
-
-
39,650
12,366
9,895
1,471
7,930
2,943
17,825
4,414
21,825
7,952
29,755
10,895		 Totals
£
474,516
-
474,516
11,366
10,873
22,239
452,277
463,150

The property at 89 Denhill Park was revalued in 2019 by R.A. Jackson & Son at £247,500. The property at 4 Graingerville North was revalued in 2015 by Dunlop Haywood at £175,000 and the directors believe this remains appropriate. The historic cost of these properties is £407,734 and £593,382 respectively.

Page | 33

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

14. FIXED ASSET INVESTMENTS

Charity
Shares in
group
undertakings Totals
£ £
MARKET VALUE
At 1 April 2021 and 31 March 2022 1 1
NET BOOK VALUE
At 1 April 2021 and 31 March 2022 1 1

There were no investment assets outside the UK.

The company's investments at the balance sheet date in the share capital of companies include the following:

CNE Trading Ltd

Registered office: 89 Denhill Park, Newcastle upon Tyne, NE15 6QE Nature of business: Delivery of services on behalf of the charity.

%
Class of share: holding
Ordinary 100
2022 2021
£ £
Aggregate capital and reserves 1 (93,449)
Profit for the year 93,450 1,115

Page | 34

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

15. DEBTORS

Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Group
2022
£
502,412
-
41,908
72,033
616,353		 Group
2021
£
268,882
-
7,521
77,658
354,061		 Charity
2022
£
502,412
-
41,908
72,033
616,353		 Charity
2021
£
255,548
109,052
7,521
77,658
449,779

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Amounts owed to group undertakings
Social security and other taxes
Other creditors
Accruals and deferred income		 Group
2022
£
35,597
-
137,177
23,206
1,035,179
1,231,159		 Group
2021
£
18,189
-
75,028
22,414
526,839
642,470		 Charity
2022
£
35,597
1
137,177
23,206
1,035,179
1,231,160		 Charity
2021
£
18,117
-
74,387
21,976
524,784
639,264

Deferred income

Included within Accruals and Deferred Income are the following amounts comprising income received in advance of delivery of the related services or expenditure incurred.

Balance at 1 April 2021
Released to income from charitable activities
Amount deferred in year
Balance at 31 March 2022		 Group
£
497,441
(497,441)
1,002,043
1,002,043		 Charity
£
497,441
(497,441)
1,002,043
1,002,043

17. SECURED DEBTS

The charity's pension liabilities are secured by a fixed charge on the freehold property at 4 Graingerville North.

Page | 35

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

18. PROVISIONS FOR LIABILITIES - GROUP AND CHARITY

Pension deficit provision
Present Values of Provision
Present value of provision
Reconciliation of Opening and Closing Provisions
Provision at start of period
Unwinding of the discount factor (interest expense)
Deficit contribution paid
Remeasurements - impact of any change in assumptions
Remeasurements - amendments to the contribution schedule
Provision at end of period
Income and expenditure impact
Interest expense
Remeasurements - impact of any change in assumptions
Remeasurements - amendments to the contribution schedule
Assumptions
%
Rate of discount		 2022
£
55,417
2022
per annum %
2.35		 2022
£
55,417
2021
£
267,020
2022
£
267,020
1,521
(67,572)
(1,274)
(144,278)
55,417
2022
£
1,521
(1,274)
(144,278)
(144,031)
2021
per annum %
0.66		 2021
£
267,020
2020
£
316,383
2021
£
316,383
7,109
(65,604)
9,132
-
267,020
2021
£
7,109
9,132
-
16,241
2020
per annum
2.53

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

Page | 36

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

19. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS

Unrestricted
Funds
£
Fixed assets
452,277
Current assets
1,417,189
Current liabilites
(1,231,159)
Provision for liabilities
(55,417)
582,890		 Restricted
Funds
£
-
-
-
-
-		 2022
Total
funds
£
452,277
1,417,189
(1,231,159)
(55,417)
582,890		 2021
Total
funds
£
463,150
722,425
(642,470)
(267,020)
276,085

20. MOVEMENT IN GROUP FUNDS

Unrestricted funds
General fund
Designated fund
Families and Parenting
Young People
Parent Infant Partnership
Restricted funds
Families and Parenting
Children and Young People
TOTAL FUNDS		 Net
At 1/4/21
£
(146,415)
422,500
-
-
-
276,085
-
-
-
276,085		 movement
Transfers
in funds
between funds
£
£
480,779
(173,974)
-
-
(54,192)
54,192
(50,256)
50,256
(91,856)
91,856
284,475
22,330
208
(208)
22,122
(22,122)
22,330
(22,330)
306,805
-		 At 31/3/22
£
160,390
422,500
-
-
-
582,890
-
-
-
582,890

Page | 37

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

20. MOVEMENT IN GROUP FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Families and Parenting
Young People
Parent Infant Partnership
Restricted funds
Families and Parenting
Children and Young People
Other restricted funds
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
Designated fund
Families and Parenting
Young People
Parent Infant Partnership
Restricted funds
Families and Parenting
Children and Young People
Parent Infant Partnership
TOTAL FUNDS		 Net
At 1/4/20
£
(450,570)
422,500
-
-
-
(28,070)
-
-
-
-
(28,070)		 Incoming
Resources Movement in
resources
expended
funds
£
£
£
815,807
(335,028)
480,779
410,124
(464,316)
(54,192)
782,423
(832,679)
(50,256)
165,586
(257,442)
(91,856)
2,173,940
(1,889,465)
284,475
42,820
(42,612)
208
358,751
(336,629)
22,122
5,725
(5,725)
-
407,296
(384,966)
22,330
2,581,236
(2,274,431)
306,805
movement
Transfers
in funds between funds
At 31/3/21
£
£
£
104,279
199,876
(146,415)
-
-
422,500
737
(737)
-
78,819
(78,819)
-
26,944
(26,944)
-
210,779
93,376
276,085
41,781
(41,781)
-
43,501
(43,501)
-
8,094
(8,094)
-
93,376
(93,376)
-
304,155
-
276,085

Page | 38

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

20. MOVEMENT IN GROUP FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Families and Parenting
Young People
Parent Infant Partnership
Restricted funds
Families and Parenting
Children and Young People
Parent Infant Partnership
Coronavirus Job Retention Scheme
TOTAL FUNDS		 Incoming
resources
£
778,329
229,590
453,443
233,584
1,694,946
211,191
237,093
60,147
98,975
607,406
2,302,352		 Resources Movement in
expended
funds
£
£
(674,050)
104,279
(228,853)
737
(374,624)
78,819
(206,640)
26,944
(1,484,167)
210,779
(169,410)
41,781
(193,592)
43,501
(52,053)
8,094
(98,975)
-
(514,030)
93,376
(1,998,197)
304,155		 Resources Movement in
expended
funds
£
£
(674,050)
104,279
(228,853)
737
(374,624)
78,819
(206,640)
26,944
(1,484,167)
210,779
(169,410)
41,781
(193,592)
43,501
(52,053)
8,094
(98,975)
-
(514,030)
93,376
(1,998,197)
304,155
210,779
41,781
43,501
8,094
-
93,376
304,155

Designated fund

The designated fund represents the net book value of the properties at Denhill Park and Graingerville North.

Restricted funds

Families & Parenting

The Families & Parenting fund was set up to support children, young people and parents in challenging circumstances such as living in temporary homeless accommodation, parent mental health, parental substance misuse, domestic violence and non school attendance. It also provides training in parenting with particular emphasis on fathers.

Children & Young People

The Children & Young People fund provides services in a drop in advice centre for young people including outreach sexual health advice and also provides training in schools for young people about health, wellbeing and mental health. Five Youth Link projects train and support young people as volunteers to support young people in need. The service also supports Newcastle Youth Council.

21. PENSION COMMITMENTS

TPT Retirement Solutions - The Growth Plan

The company participates in the scheme, a multi-employer scheme which provides benefits to some 638 nonassociated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the Company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

Page | 39

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

22. PENSION COMMITMENTS - continued

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

From 1 April 2022 to 31 January 2025: £20,190 per annum (payable monthly and increasing by 3% each on 1 April).

Note that the scheme's previous valuation was carried out with an effective date of 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

From 1 April 2019 to 31 January 2025: £54,560 per annum (payable monthly and increasing by 3% each on 1 April).

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

Where the scheme is in deficit and where the Company has agreed to a deficit funding arrangement the Company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rates detailed in note 18 to the financial statements. The unwinding of the discount rate is recognised as a finance cost.

Pension Trust Flexible Pension Plan

From December 2006 the group has also offered the Flexible Pension Plan (the new scheme) to all staff. The new scheme is a money purchase plan and is not contracted out of the state scheme. The Charity paid contributions at the rate of 7.25% during the accounting period and members paid minimum contributions at the rate of 5% but could make additional voluntary contributions if they wished. The employer's contribution payable during the year was £100,054 (2021: £81,291) and the outstanding contributions (employer plus employee) owed at the balance sheet date was £16,536 (2021: £14,749).

The group continues to offer membership of the new scheme to all of its employees.

Page | 40

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

23. RELATED PARTY DISCLOSURES

The charitable company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

There were no related party transactions requiring disclosure for the year ended 31 March 2022.

24. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as
per the statement of financial activities)
Adjustments for:
Depreciation charges
Interest paid
Increase in debtors
Increase in creditors
Difference between pension charge and cash
contributions
Net cash provided by operating activities		 Group
2022
£
306,805
10,873
1,139
(262,292)
588,689
(211,603)
433,611		 Group
2021
£
304,155
9,401
2,113
(181,845)
275,648
(49,363)
360,109		 Charity
2022
£
213,355
10,873
1,139
(166,574)
591,896
(211,603)
439,086		 Charity
2021
£
303,040
9,401
1,858
(256,767)
355,135
(49,363)
363,304

25. ANALYSIS OF CHANGES IN NET FUNDS

Group

Cash at bank and in hand
Charity
Cash at bank and in hand		 At 1/4/21
£
368,364
At 1/4/21
£
362,889		 Cash flow
At 31/3/22
£
£
432,472
800,836
Cash flow
At 31/3/22
£
£
437,947
800,836

Page | 41

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

26. LEGAL STATUS

The charity is incorporated under the Companies Act as a company limited by guarantee, with the liability of each member not exceeding 50p on winding up, and is registered in England and Wales. The company's registered number and registered office address can be found within Reference and Administrative Details.

Page | 42