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2024-03-31-accounts

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

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

FOR

CHILDREN NORTH EAST (A COMPANY LIMITED BY GUARANTEE)

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

CHILDREN NORTH EAST

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

Page
Report of the Trustees 1 to 12
Report of the Independent Auditors 13 to 15
Statement of Financial Activities 16
Balance Sheet 17
Cash Flow Statement 18
Notes to the Financial Statements 19 to 34

CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

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 2024. 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).

OBJECTIVES AND ACTIVITIES

1. Objectives

The charity's objectives are:

Children North East exists 'because growing up can be hard' for babies, 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 happy and healthy.'

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 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 of these rights.

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.

2. 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. 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:

As part of the strategy, we 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:

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CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

OBJECTIVES AND ACTIVITIES - continued

Sustainability and growth

Reach

Impact

Theory of Change

Our strategy supported us with a five-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. 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 2024/25 we want to continue 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.

3. Public Benefit

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England & Wales.

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CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

ACHIEVEMENTS AND PERFORMANCE

1. Message from the CEO

As we reflect on the past year, we are reminded of the resilience, determination and power of community that has defined Children North East since 1891. It has been a year marked by challenges and uncertainty for babies, children, young people and their families. Their opportunity for happiness and health continues to be deeply affected by the difficulties faced growing up, living in poverty and the impact of policy failure; both in the North East region and across the UK.

Responding to these pressures, Children North East has strengthened its advocacy efforts, amplifying the voices of the children and families who need real systemic change to thrive. This has included calling for key policy changes in the lead up to North East Mayoral and General elections, including an end to the two-child cap, universal Free School Meals and a national strategy to address child poverty, which now affects 4.3 million UK children.

We have remained committed to our mission: ensuring that every baby, child, and young person has the opportunity to grow up happy and healthy. We've worked creatively and resourcefully to meet increased demand for services, launching new initiatives, such as our dedicated Therapeutic site in Central Newcastle, and invested in improved provision where there is a critical lack of support, including for young people navigating SEND and neurodiversity diagnoses.

None of this would have been possible without the dedication and hard work of our staff, trustees, volunteers, funders and partners. Their expertise, passion, and tireless commitment are the foundation of everything we do. We extend our heartfelt thanks to them - along with the hundreds of donors, fundraisers, and advocates whose generosity continues to transform lives.

With your help, we won't stop until every baby, child and young person has the happy, healthy start in life they deserve.

2. Our Impact and Reach

During the financial year, our key impact figures included:

Across the charity we have delivered 2,956 counselling sessions to children, parents and groups.

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CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

ACHIEVEMENTS AND PERFORMANCE - continued

3. Our Services

The financial year 2023/24 has seen us continue to achieve against our strategy. We have been successful in sustaining funding for much of what we have traditionally done over the past number of years and have continued to grow in many new areas, gaining confidence in delivering new programmes that are having a profound and positive effect on babies, children and young people.

During the year, our services were provided by:

Further detail around our services during the year are detailed by service area below.

3.1. Family Support

Part of our Communities Service, giving families the opportunity to thrive, through safe and strong relationships. Our expert teams offer a range of services which create a space to focus on play, communication and spending quality time together.

Some of the key services delivered this year include:

Our Cowgate Centre, which is part of a community family hub, empowers families to access 26 support opportunities under one roof, including those supporting health, wellbeing, play, healthy eating, employability and domestic abuse recovery.

At the heart of the service is our community café, Café Hope, which creates a place to strengthen local networks and informally tap into the support of our teams.

A team of 26 volunteers provided 866 hours of support through a dedicated programme that provides accredited training.

The team were nominated for a North East Arts and Culture award, along with Tin Arts, for the bespoke work we do in schools to celebrating individuality and friendship.

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CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

ACHIEVEMENTS AND PERFORMANCE - continued

3.2. Youth Work

Part of our Communities Service, creating pathways for young people to connect, explore and pursue a future that matters to them. Our youth work projects include drop-ins, cooking and activity sessions, peer support groups, mentoring and sexual health services.

The team delivered a wide range of services to young people at Children North East sites, community venues, schools and in public spaces through outreach work. Our programmes include street dance and cookery sessions, early health intervention sessions within schools and enrichment sessions for LGBTQ+ young people. Other flagship programmes include:

3.3. Therapeutic Services and Mental Health Support

Therapy is a proven way of overcoming difficult mental health experiences, such as trauma, grief and the breakdown of relationships, yet people can find it difficult to access therapy when they most need it. Our expert teams offer a range of therapeutic support, such as counselling, behavioural therapies like CBT and parentinfant therapy. We provide specialist treatment to babies, children, young people and families at times when therapy can make a significant difference to their quality of life and long-term health.

This year, the charity's Graingerville site was dedicated for therapeutic use, providing seven counselling rooms and a communal area. The change has enabled the team to provide a holistic approach to our therapeutic and mental health services, including installing a Rainbow Play Room for delivering support to younger children and introducing a mental health and wellbeing library in the reception space.

We have delivered a wide range of projects offering specialist therapeutic and mental health support to children, young people and families, including:

In total, 2,956 counselling sessions were provided by the charity over 12 months.

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CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

ACHIEVEMENTS AND PERFORMANCE - continued

3.4. Neurodiversity Support

This year represented a milestone in establishing our support for neurodiverse children and young people. We have invested in the expansion of our provision through building on successful pilots and introducing new programmes of support.

Flagship projects within this expanded provision include:

We are committed to include neurodiverse staff in the design and delivery of each project, ensuring those with experience are leading the provision.

A review of the peer support groups revealed they had helped young people to grow in their confidence, improve their mental health and develop a sense of community, as well as to connect with other aspects of their identity, such as being LGBTQ+. Our success meant that we were able to work with 213 children and young people over 12 months.

3.5. Poverty Proofing©

In the UK, approximately 20% of people live in poverty. They often face additional barriers to participating in important experiences, such as school, healthcare, and cultural and community activities. Our Poverty Proofing© service supports organisations to listen to the experiences of those living in poverty and to use that insight to identify and address barriers to participation and stigma. We also provide training on the impact of poverty and how teams can 'Poverty Proof' their decision- making. The outcome is reduced inequalities, making it possible for everyone to participate and thrive in vital services, cultural experience and within their communities, regardless of financial background.

Our Poverty Proofing© achievements are listed below per focus area:

Poverty Proofing the School Day

Our North East and Midlands based team delivered interventions in 120 schools across England and Wales, consulting with 29,015 individuals. Over 1,050 staff and PTA members have received poverty awareness training. Thanks goes to key funders included Kavli Trust and North of Tyne Combined Authority.

Newcastle University conducted a qualitative retrospective study of 'Poverty Proofed' primary schools which had undertaken Poverty Proofing and found that schools who had undergone the intervention saw improvements in attainment for all pupils, regardless of financial background, in particular reading and mathematics.

Poverty Proofing Healthcare

The team delivered Poverty Proofing© as part of the NENC ICB's Healthier & Fairer Communities Programme, providing poverty awareness training to 600+ staff. The project also gave voice to 882 individuals across a huge range of healthcare settings.

We have delivered Poverty Proofing© interventions for Marie Curie, Greater Manchester Poverty Action and NHS Foundation Trusts in RDaSH, Somerset and Airedale. This year, Poverty Proofing Healthcare was also the subject of an NIRH Applied Research Collaboration published in the PLOS One Academic Journal.

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CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

ACHIEVEMENTS AND PERFORMANCE - continued

Poverty Proofing Culture

Our work continued to build across the UK, with flagship projects including delivering poverty awareness sessions for National Trust, and Speke Hall being chosen to be their first 'Poverty Proofed' site. Paisley Museum marked the first Scottish Poverty Proofing cultural project and we launched a project with Artsmark, exploring the barriers pupils faced engaging with the national Award in school.

Poverty Proofing Early Years

Building on pre-pandemic work, Poverty Proofing© was delivered with four Early Years settings in Newcastle and Darlington, continuing our pilot of the model.

3.6 Policy and Campaigning

We use our experience and expertise to guide local, regional and national decision-making on issues affecting babies, children, young people and families, and the VCSE sector. In 2023/24 this included:

In February, Children North East published its milestone report, Change Now. The report consolidated learning from consultations with over 35,000 children and young people into a single report providing recommendations for organisations, local authorities and policy makers acting in the North East. Recommendations included giving pupil voice priority in schools, improving mental health and wellbeing provision, increasing the autonomy of young people within their healthcare and addressing the 'digital divide'.

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CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

ACHIEVEMENTS AND PERFORMANCE - continued

4. Our Supporters

We want to share our deepest gratitude to our funders, partners, donors and supporters. Your generosity and commitment are the foundation of everything we do and we are grateful for the trust and collaboration we share with you.

Your investments, through financial support, in-kind donations, strategic partnerships and raising awareness have made it possible for us create lasting change in the communities we serve. Together, we have achieved milestones that would not have been possible without you.

FINANCIAL REVIEW

1. Financial Position

At the balance sheet date, the charity held funds of £831,118 (2023: 638,763) of which £530,000 (2022: £455,000) was designated in accordance with the reserves policy.

2. 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. 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 all the organisations, trusts and foundations who awarded us grants during the financial year - there are too many to name as we received over 50 separate grants. These grants were wide ranging with the majority to assist us in delivering our services but a number of unrestricted grants have been crucial in helping support our core costs which have increased due to the cost-of-living crisis.

Restricted income

We received income through contracts with a number of commissioners, mainly across the North East but also within North Cumbria and Warwickshire.

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

Sales

We have been focusing on a sales strategy during the year and hope to expand on this over the remainder of our 5-year strategy. Our Poverty Proofing work has been underway for over 10 years, working with schools, and we have recently grown this to include Poverty Proofing Health settings, communities and Arts and Cultural organisations. Our sales income has increased to £489,000 in 2024 from £401,000 in 2023.

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CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

FINANCIAL REVIEW - continued

Donations and Fundraising

We are very grateful to all of the individuals and businesses who support Children North East; their support is invaluable in raising unrestricted income to ensure we can be there for babies, children and young people when they need us most.

3. 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.

4. Investment Policy

There are currently no investments in place.

FUTURE PLANS

As part of our 5-year Strategy, and following the growth sustained in the past three years, we have reviewed our operational structure and have made changes to help future proof for further growth. We have created an Operations Development Team which will focus on expanding our existing services into new areas, both geographically and client based, and will develop training and evaluation services targeting Neuro and SEND.

Following the opening of a base in Northumberland in 2022, we have recognised Gateshead as an area where we need to establish a CNE office and service delivery space in order to meet the growing need for our services. We have identified a suitable building and will be securing a lease during 2024/25 with a view to delivering services from early 2025.

We are also continuing to look 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.

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CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

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 and Wales. The governing instruments are the memorandum and articles of association as adopted by written resolution passed in March 2020.

Recruitment and appointment of trustees

Trustees of Children North East are also directors of the company charity. 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 three Trustees have retired, and four new Trustees have been appointed. The Board reviews expertise among the existing Trustees and ensures that new Trustees offer a broad range of skills and experience including business, financial, law and voluntary sector experience.

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 comprises seven 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.

Key management remuneration

Staff salaries, including those of the key management personnel are set according to the NJC payscales.

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.

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CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

REFERENCE AND ADMINISTRATIVE DETAILS

Trustees Mark Stoddart Chair
Reverend Sarah Lunn
Alex Coburn
Lynn Charlton Resigned 8 April 2024
Lucy Atherton Appointed 19 May 2023
Susan Howe Appointed 19 September 2023
Sophie Bentley Appointed 16 October 2023
Samantha Haley Appointed 16 October 2023
Lisa Alcorn Resigned 21 June 2023
Liam Clark-Brown Resigned 21 November 2023
Chief Executive Officer
 Leigh Elliott
Operations Director
 Michele Deans
Growth & Engagement Director Janet Cairns
Finance Director
 Johanna Dubois
Head Office & Registered 89 Denhill Park
Office Newcastle upon Tyne
NE15 6QE
Registered Company Number
 00090288
Registered Charity Number
 222041
Auditors Read, Milburn and Co.
Chartered Accountants and Statutory Auditor
71 Howard Street
North Shields
NE30 1AF
Bankers Unity Trust Bank plc
Nine Brindley Place
Birmingham
B1 2HB

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CHILDREN NORTH EAST

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024

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 the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable 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 trustees 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

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Read, Milburn & Co. as auditors of the charity is to be proposed at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on 17 December 2024 and signed on its behalf by:

Mr M B Stoddart - Trustee

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

Opinion

We have audited the financial statements of Children North East (the 'charitable company') for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is 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 charitable 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 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 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.

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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 charitable 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 charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the 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.

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

Our responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. In this regard, our procedures include the following:

Because of the field in which the charity operates, we have identified the following areas as those most likely to have a material impact on the financial statements: Health and Safety; Employment Law; and compliance with the Companies and Charities Acts.

A further description of our responsibilities for the audit of the 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 charitable 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 charitable company and the charitable 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 Chartered Accountants and Statutory Auditors 71 Howard Street North Shields Tyne and Wear NE30 1AF

19 December 2024

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CHILDREN NORTH EAST

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2024

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
5
General operations
Children and young people
Families and parenting
Parent infant partnership
Other trading activities
3
Investment income
4
Other income
Total
EXPENDITURE ON
Raising funds
6
Charitable activities
7
General operations
Children and young people
Families and parenting
Parent infant partnership
Reversal of impairment losses
Total
NET INCOME
Transfers between funds
21
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
730,496
4,800
643,864
346,049
254,500
268,024
190
-
2,247,923
101,168
697,817
806,206
358,961
197,411
(75,000)
2,086,563
161,360
30,995
192,355
638,763
831,118		 Restricted
funds
£
1,250
-
1,149,072
89,517
164,613
221,623
-
-
1,626,075
-
-
1,346,555
85,690
162,835
-
1,595,080
30,995
(30,995)
-
-
-		 2024
Total
funds
£
731,746
4,800
1,792,936
435,566
419,113
489,647
190
-
3,873,998
101,168
697,817
2,152,761
444,651
360,246
(75,000)
3,681,643
192,355
-
192,355
638,763
831,118		 2023
Total
funds
£
616,235
48,855
1,670,869
406,227
160,899
401,415
61
4,234
3,308,795
95,024
467,557
2,025,295
528,265
169,281
(32,500)
3,252,922
55,873
-
55,873
582,890
638,763

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

The notes form part of these financial statements

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CHILDREN NORTH EAST (REGISTERED NUMBER: 00090288)

BALANCE SHEET 31 MARCH 2024

Notes
FIXED ASSETS
Tangible assets
14
Investments
15
CURRENT ASSETS
Debtors
16
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
17
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
PROVISIONS FOR LIABILITIES
19
NET ASSETS
FUNDS
21
Unrestricted funds:
General fund
Designated fund
TOTAL FUNDS		 2024
£
584,579
1
584,580
803,899
632,574
1,436,473
(1,173,432)
263,041
847,621
(16,503)
831,118
301,118
530,000
831,118
831,118		 2023
£
488,472
1
488,473
635,089
545,182
1,180,271
(994,651)
185,620
674,093
(35,330)
638,763
183,763
455,000
638,763
638,763

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 17 December 2024 and were signed on its behalf by:

Mr M B Stoddart - Trustee

The notes form part of these financial statements

Page 17

CHILDREN NORTH EAST

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2024

Notes
Cash flows from operating activities
Cash generated from operations
24
Interest paid
Net cash provided by/(used in) operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash used in 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		 2024
£
124,939
-
124,939
(37,737)
190
(37,547)
87,392
545,182
632,574		 2023
£
(238,740)
299
(238,441)
(17,274)
61
(17,213)
(255,654)
800,836
545,182

The notes form part of these financial statements

Page 18

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the 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.

The presentation currency of the financial statements is the Pound Sterling (£).

Going concern

At the date of approval of these financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue for the foreseeable future and as such the financial statements are prepared on the going concern basis.

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.

Grants receivable

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Contracts

Contractual income is recognised by reference to the stage of completion of the contract. Amounts received in advance of delivery are included on the balance sheet as deferred income and released in accordance with the delivery of the contract.

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

Freehold property is initially recognised at cost and subsequently measured at open market value.

Other tangible fixed assets are initially recognised at cost and subsequently measured at cost less accumulated depreciation and impairments.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost, less any estimated residual value, over their useful economic life as follows:

continued...

Page 19

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

1. ACCOUNTING POLICIES - continued

Tangible fixed assets Asset class Depreciation method and rate Computer and office equipment 25% and 33 1/3 % straight line Fixtures and fittings 20% and 33 1/3% straight line

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.

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 statements.

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.

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.

continued...

Page 20

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

2.
DONATIONS AND LEGACIES
Post Code Children Trust
Other donations and legacies
3.
OTHER TRADING ACTIVITIES
Fundraising events
Charges for goods & services
4.
INVESTMENT INCOME
Investment income
5.
INCOME FROM CHARITABLE ACTIVITIES
Grants
Contract income
Spot purchase of services
Grants
Contract income
Spot purchase of services		 General
operations
£
4,800
-
-
4,800
Parent
infant
partnership
£
84,613
334,500
-
419,113		 2024
£
500,000
231,746
731,746
2024
£
17,226
472,421
489,647
2024
£
190
Children
and young
people
£
1,135,384
653,181
4,371
1,792,936
2024
Total
activities
£
1,261,919
1,265,609
124,887
2,652,415

continued...

Page 21

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

5. INCOME FROM CHARITABLE ACTIVITIES - continued Grants received, included in the above, are as follows:

INCOME FROM CHARITABLE ACTIVITIES - continued
Grants received, included in the above, are as follows:
Health
Trusts
Other		 2024
£
312,034
1,192
948,693
1,261,919		 2023
£
120,724
1,375
776,266
898,365

6. RAISING FUNDS

Raising donations and legacies
Staff costs
Other fundraising costs		 2024
£
73,131
28,037
101,168		 2023
£
71,116
23,908
95,024

7. CHARITABLE ACTIVITIES COSTS

General operations
Children and young people
Families and parenting
Parent infant partnership		 Direct
Costs (see
note 8)
£
408,977
2,083,866
436,715
357,364
3,286,922		 Support
costs (see
note 9)
£
288,840
68,895
7,936
2,882
368,553		 Totals
£
697,817
2,152,761
444,651
360,246
3,655,475

continued...

Page 22

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

8. DIRECT COSTS OF CHARITABLE ACTIVITIES

DIRECT COSTS OF CHARITABLE ACTIVITIES
Staff costs
Motor & travel expenses
Staff training & recruitment
Volunteer costs
Other client costs		 2024
£
2,810,855
85,336
45,592
3,747
341,392
3,286,922		 2023
£
2,570,790
91,452
24,682
5,741
204,314
2,896,979

9. SUPPORT COSTS

SUPPORT COSTS
Management Governance
& administration
costs
£
£
General operations
284,040
4,800
Children and young people
68,895
-
Families and parenting
7,936
-
Parent infant partnership
2,882
-
363,753
4,800		 Totals
£
288,840
68,895
7,936
2,882
368,553

Support costs, included in the above, are as follows:

Management & administration

Rent & rates
Insurance
Light and heat
Telephone
Printing, postage, stationery and
advertising
Sundries
Repairs & maintenance
Cleaning
Computer support & maintenance
Professional fees
Subscriptions
Bank charges
Depreciation of tangible fixed assets
Interest payable		 General
operations
£
30,517
12,498
7,405
18,853
22,289
6,823
11,922
28,193
93,480
22,189
12,068
1,768
16,035
-
284,040		 Children
and young
people
£
5,246
-
6,040
8,329
9,325
1,892
8,994
8,647
15,965
2,774
1,088
-
595
-
68,895		 Families
and
parenting
£
-
-
-
1,405
442
719
914
191
9
3,298
276
682
-
-
7,936

continued...

Page 23

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

9. SUPPORT COSTS - continued

Management & administration - continued

Parent
infant
partnership
£
Rent & rates
-
Insurance
-
Light and heat
-
Telephone
1,664
Printing, postage, stationery and
advertising
81
Sundries
70
Repairs & maintenance
72
Cleaning
-
Computer support & maintenance
10
Professional fees
-
Subscriptions
985
Bank charges
-
Depreciation of tangible fixed assets
-
Interest payable
-
2,882
Governance costs
Auditors' remuneration
10.
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Auditors' remuneration
Depreciation - owned assets		 2024
Total
activities
£
35,763
12,498
13,445
30,251
32,137
9,504
21,902
37,031
109,464
28,261
14,417
2,450
16,630
-
363,753
2024
General
operations
£
4,800
2024
£
4,800
16,630		 2023
Total
activities
£
25,555
11,408
12,507
27,829
16,895
13,885
24,395
35,599
60,656
35,398
8,535
2,677
13,579
(299)
288,619
2023
Total
activities
£
4,800
2023
£
4,800
13,579

continued...

Page 24

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

11. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2024 nor for the year ended 31 March 2023.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2024 nor for the year ended 31 March 2023.

12. STAFF COSTS

STAFF COSTS
Wages and salaries
Social security costs
Other pension costs		 2024
£
2,489,959
209,885
184,142
2,883,986		 2023
£
2,306,528
196,193
139,185
2,641,906

The key management personnel, including the trustees, are listed under Reference and Administrative Details. The total employee benefits of the key management personnel were £244,042 (2023 - £179,074).

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

2024 2023
All staff 101 98

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

£60,001 - £70,000
£70,001 - £80,000		 2024
-
1
1		 2023
1
-
1

continued...

Page 25

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

13.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
Restricted
funds
funds
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
616,235
-
Charitable activities
General operations
48,855
-
Children and young people
1,214,015
456,854
Families and parenting
359,681
46,546
Parent infant partnership
121,987
38,912
Other trading activities
401,415
-
Investment income
61
-
Other income
4,234
-
Total
2,766,483
542,312
EXPENDITURE ON
Raising funds
95,024
-
Charitable activities
General operations
467,557
-
Children and young people
1,529,609
495,686
Families and parenting
478,160
50,105
Parent infant partnership
158,750
10,531
Reversal of impairment losses
(32,500)
-
Total
2,696,600
556,322
NET INCOME/(EXPENDITURE)
69,883
(14,010)
Transfers between funds
(14,010)
14,010
Net movement in funds
55,873
-
RECONCILIATION OF FUNDS
Total funds brought forward
582,890
-
TOTAL FUNDS CARRIED
FORWARD
638,763
-		 Total
funds
£
616,235
48,855
1,670,869
406,227
160,899
401,415
61
4,234
3,308,795
95,024
467,557
2,025,295
528,265
169,281
(32,500)
3,252,922
55,873
-
55,873
582,890
638,763

continued...

Page 26

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

14. TANGIBLE FIXED ASSETS

COST
At 1 April 2023
Additions
Reversal of impairments
At 31 March 2024
DEPRECIATION
At 1 April 2023
Charge for year
At 31 March 2024
NET BOOK VALUE
At 31 March 2024
At 31 March 2023		 Freehold
property
£
455,000
-
75,000
530,000
-
-
-
530,000
455,000		 Fixtures
and
fittings
£
29,640
37,737
-
67,377
10,063
8,700
18,763
48,614
19,577		 Motor
vehicles
£
39,650
-
-
39,650
25,755
7,930
33,685
5,965
13,895		 Totals
£
524,290
37,737
75,000
637,027
35,818
16,630
52,448
584,579
488,472

The property at 89 Denhill Park was revalued in November 2022 by R.A. George F. White at £280,000, the trustees believe this remains appropriate. The property at 4 Graingerville North was revalued in March 2024 by Knight Frank at £250,000. The historic cost of these properties is £407,734 and £593,382 respectively.

15. FIXED ASSET INVESTMENTS

FIXED ASSET INVESTMENTS
Shares in
group
undertaking
£
MARKET VALUE
At 1 April 2023 and 31 March 2024 1
NET BOOK VALUE
At 31 March 2024 1
At 31 March 2023 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:

continued...

Page 27

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

15. FIXED ASSET INVESTMENTS - continued

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
2024 2023
£ £
Aggregate capital and reserves 1 1

The results of CNE Trading Ltd have not been consolidated with those of the Company as their inclusion is not material for the purpose of giving a true and fair view, in accordance with section 405(2) of the Companies Act 2006.

16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Other debtors
Prepayments and accrued income		 2024
£
694,904
5,253
103,742
803,899		 2023
£
517,252
17,511
100,326
635,089

17. 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		 2024
£
116,351
1
70,094
27,622
959,364
1,173,432		 2023
£
87,678
1
96,302
25,599
785,071
994,651

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 2023
Released to income from charitable activities
Amount deferred in year
Balance at 31 March 2024		 £
745,532
(745,532)
884,413
884,413

continued...

Page 28

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

18. SECURED DEBTS

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

19. PROVISIONS FOR LIABILITIES

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
Provision at end of period
Income and Expenditure Impact
Interest expense
Remeasurements - impact of any change in assumptions		 2024
£
16,503		 2024
£
16,503
2023
£
35,330
2024
£
35,330
1,351
(20,190)
12
16,503
2024
£
1,351
12
1,363		 2023
£
35,330
2022
£
55,417
2023
£
55,417
1,046
(20,190)
(943)
35,330
2023
£
1,046
(943)
103

continued...

Page 29

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

19. PROVISIONS FOR LIABILITIES - continued

Assumptions

2024 2023 2022
% per annum % per annum % per annum
Rate of discount 5.31 5.52 2.35

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.

20. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fixed assets
Investments
Current assets
Current liabilities
Provision for liabilities		 Unrestricted
funds
£
584,579
1
859,655
(596,614)
(16,503)
831,118		 Restricted
funds
£
-
-
576,818
(576,818)
-
-		 2024
Total
funds
£
584,579
1
1,436,473
(1,173,432)
(16,503)
831,118		 2023
Total
funds
£
488,472
1
1,180,271
(994,651)
(35,330)
638,763

21. 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		 At 1/4/23
£
183,763
455,000
-
-
-
638,763
-
-
-
-
638,763		 Net
movement
in funds
£
(66,923)
75,000
51,176
45,018
57,089
161,360
3,827
25,390
1,778
30,995
192,355		 Transfers
between
funds
£
184,278
-
(51,176)
(45,018)
(57,089)
30,995
(3,827)
(25,390)
(1,778)
(30,995)
-		 At
31/3/24
£
301,118
530,000
-
-
-
831,118
-
-
-
-
831,118

continued...

Page 30

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

21. MOVEMENT IN FUNDS - continued

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

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		 Incoming
resources
£
732,062
-
410,137
851,224
254,500
2,247,923
89,517
1,371,945
164,613
1,626,075
3,873,998		 Resources
expended
£
(798,985)
75,000
(358,961)
(806,206)
(197,411)
(2,086,563)
(85,690)
(1,346,555)
(162,835)
(1,595,080)
(3,681,643)		 Movement
in funds
£
(66,923)
75,000
51,176
45,018
57,089
161,360
3,827
25,390
1,778
30,995
192,355

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		 At 1/4/22
£
160,390
422,500
-
-
-
582,890
-
-
-
-
582,890		 Net
movement
in funds
£
508,219
32,500
(118,479)
(315,594)
(36,763)
69,883
(3,559)
(10,388)
(63)
(14,010)
55,873		 Transfers
between
funds
£
(484,846)
-
118,479
315,594
36,763
(14,010)
3,559
10,388
63
14,010
-		 At
31/3/23
£
183,763
455,000
-
-
-
638,763
-
-
-
-
638,763

continued...

Page 31

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

21. MOVEMENT IN FUNDS - continued

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

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		 Incoming
resources
£
1,070,800
-
359,681
1,214,015
121,987
2,766,483
46,546
456,854
38,912
542,312
3,308,795
Resources

expended
£
(562,581)
32,500
(478,160)
(1,529,609)
(158,750)
(2,696,600)
(50,105)
(467,242)
(38,975)
(556,322)
(3,252,922)
Movement

in funds
£
508,219
32,500
(118,479)
(315,594)
(36,763)
69,883
(3,559)
(10,388)
(63)
(14,010)
55,873

Designated fund

The designated fund represents the net book value of the properties at Denhill and Weyes.

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.

continued...

Page 32

CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

22. EMPLOYEE BENEFIT OBLIGATIONS

TPT Retirement Solutions - The Growth Plan

The Company participates in the scheme, a multi-employer scheme which provides benefits to some 638 non-associated 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.

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 2023 to 31 January 2025: £20,190 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 19 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 charity 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 £139,082 (2023: £100,054) and the outstanding contributions (employer plus employee) owed at the balance sheet date was £23,765 (2023: £22,167).

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

continued...

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CHILDREN NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024

23. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2024.

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 received
Interest paid
Reversal of impairment losses
Increase in debtors
Increase/(decrease) in creditors
Difference between pension charge and cash contributions
Net cash provided by/(used in) operations		 2024
£
192,355
16,630
(190)
-
(75,000)
(168,810)
178,781
(18,827)
124,939		 2023
£
55,873
13,579
(61)
(299)
(32,500)
(18,736)
(236,509)
(20,087)
(238,740)

25. ANALYSIS OF CHANGES IN NET FUNDS

At 1/4/23 Cash flow At 31/3/24
£ £ £
Net cash
Cash at bank and in hand 545,182 87,392 632,574
545,182 87,392 632,574
Total 545,182 87,392 632,574

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.

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