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2022-03-31-accounts

Company Registration Number: 1781525 (England and Wales) Charity Registration Number: 514733

Disability North

(a company limited by guarantee)

Executive Committee Report and Financial Statements

Year Ended 31 March 2022

DISABILITY NORTH

CONTENTS

Page
Executive Committee Report 1 – 9
Independent Examiner’s Report 10
Statement of Financial Activities 11
Balance Sheet 12
Cash Flow Statement 13
Notes to the Financial Statements 14 – 29

DISABILITY NORTH

EXECUTIVE COMMITTEE REPORT FOR THE YEAR ENDED 31 MARCH 2022

The Executive Committee present their report together with the financial statements of the charity for the year ended 31 March 2022. The financial statements are also prepared to meet the requirements for a directors’ report and accounts for the Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard in the UK and Republic of Ireland (FRS 102).

OBJECTIVES AND ACTIVITIES

Objects of the Charitable Company

The charitable company’s objects are:

Aims and Activities

The charity’s statement of its main aims and principles is:

“Disability North aims to promote inclusion, independence and choice for disabled people in the region”.

In order to achieve these aims, the charity has the following objectives:

1

DISABILITY NORTH

EXECUTIVE COMMITTEE REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2022

For the year under review the main objectives were to:

Additionally, as we came out of the Covid-19 pandemic Disability North were compelled to continue to provide a remote service, keep our support functions running, all whilst operating under lockdown conditions and managing the continued impact of Covid-19 on the people we support.

The significant activities to achieve those objectives were:

Public Benefit

Disability North's mission is to promote inclusion, independence and choice for disabled people. The benefits to the general public are clearly identifiable. Our services, available to disabled people of all ages are:

2

DISABILITY NORTH

EXECUTIVE COMMITTEE REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2022

ACHIEVEMENTS AND PERFORMANCE ( continued )

During the year 21/22:

Review of Activities Disability North Service Team

The Disability North Service Team provides information, advice and guidance on a wide range of disability issues. The service is funded by the statutory sector and charitable grants, supplemented by income generated by fundraising activities.

Our Independent Direct Payment Support Service

Disability North have been empowering disabled people through the delivery of the Newcastle City Council's Direct Payment Support Service for over 18 years. This contract was retendered with another organisation in 2020. In May 2020 we launched our independent direct payment support service to provide one-to-one support on managing Direct Payments and Personal Health Budgets and offer this throughout the whole region. The support we offer includes recruiting personal assistants and all aspects of employment support.

During the 2021-22 financial year we supported disabled people with 408 queries on direct payments/personal health budgets and supported 253 individual employers.

Personal Assistant recruitment is a challenge as it is across the whole of the social care sector. Our team have looked at creative ways to raise the profile of the role of the Personal Assistant including attending many job fayres, using social media affectively, worked with universities as well as improving the search function on our website. We have seen an increase of 122% in enquiries to the team in the second year of this service.

Community Care Advice

Our Community Care advisor worked with 35 individuals on a case basis. Ranging from Disability Related Expenditure to advice around Care and Support Plans. In addition to this there has been 116 separate community care enquiries.

The work we have supported on Disability Related Expenditure appeals has reduced individual’s care charges by £7,498 over the period.

Independent Living

The varied advice Disability North offers on Independent Living is an important service for the region’s disabled people. In the 2021-21 financial year Disability North responded to 874 requests for advice covering a wide range of equipment and services including: personal care, household items, wheelchairs, scooters, grants and accessible holidays.

3

DISABILITY NORTH

EXECUTIVE COMMITTEE REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2022

Benefits Advice

Disability North's Benefits advice provides an essential service for disabled people, their families, and carers in the North East. During the 2021-2022 financial year we have seen an almost 20% increase in demand for the service. The team have responded to 3,043 requests for information and advice on Welfare Benefits and helped our clients gain £5,738,914 worth of benefits, allowing greater opportunities in relation to inclusion and independence. Our advisors have supported 258 individuals with digital inclusion linked to welfare benefits and equipment.

Many of the individuals have needed help with online benefits such as Universal Credit and online applications. There has also been a shift to online applications for Personal Independence Payment and the Blue Badge scheme. We expect to see the support needed for digital inclusion to continue to rise in the coming year.

Disability North (The Dene Centre)

The Executive Committee acknowledges that the Dene Centre building is over 30 years old and that its infrastructure including electrical systems and the general building structure must be monitored for significant deterioration or operational failure. We are currently considering our options in relation to the leasehold and the current building. This is a focus for the forthcoming financial year.

2021/2022 saw some ambitious plans for use of the building including a new hub and independent living accommodation. However due to the current climate and cost of building materials partners for independent living accommodation have stepped down. The new board of trustees along with the new Chief Executive will have a priority focus on ensuring the longevity of the building, as well as exploring a community hub facility.

Disability North continues to rent out space within the Dene Centre to a variety of tenants. Tenants up to 31 March 2022 include: Liveasy, KarePlus, Silverline Memories, A Time 2 Talk and Age UK Gateshead. Learning for Life have established their Post 16 SEND provision upstairs.

Strategic Planning

The Chief Executive Officer regularly reports on progress to the Executive Committee.

FINANCIAL REVIEW

Financial Position

At 31 March 2022 the charity is reporting a net operating surplus of £42,201. This surplus is a reflection of the operations of the charity during the financial year, and is after a charge of £21,800 in respect of the long term pension liability, which is recalculated each year and any increase or decrease is reported within the accounts, see note 19.

The charity has operated largely within budget during the period under review. Moving forward, the Executive Committee are confident that the budget set for 2022-23 will be met and the position of the charity will improve, and be in a more stable and coherent structure to build on in line with the Strategic Direction 2018-23.

Payroll services continues to be a source of revenue; income increased this year by 30% (2021: decrease 7%) as a result of the additional payroll work done for York in the current year.

Uncertainties as always remain within funding streams from Clinical Commissioning Groups and Local authorities but much of the funding for these streams, in line with our expectations, has been confirmed for the forthcoming year (2022/23) and beyond.

The political delays in achieving an exit from the EU made long term planning for these income streams difficult though current indications are that they will remain at around current levels over the short to medium term. The long-term impact of the Covid-19 pandemic will no doubt effect both the demand for our services and the funding landscape. However, given our work during this time and the funding we were able to secure, we believe that we are in a relatively strong position.

The management team remain committed to the provision of core services within budget and the restructuring and consolidation within the charity will provide an even more stable footing to move forward on and enable closer control over fundraising and expenditure.

4

DISABILITY NORTH

EXECUTIVE COMMITTEE REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2022

Reserves Policy

The reserves policy is formally reviewed and adopted annually and determines the targets necessary for the achievement of appropriate financial underpinning to ensure that the charitable company’s statutory financial objectives are capable of being met. We have set a target for unrestricted reserves equivalent to six months expenditure. Free reserves at 31 March were £230,254 (2021 - £250,779), which excluding the long term pension liability is in line with the reserve target. Moving forward and reserves are intended to remain at this level. Designated funds at the year-end consist of the property fund, which equals the net book value of the property.

Total reserves at 31 March 2022 show a net assets position of £140,760 which is after deducting the net present value of the Tyne and Wear Pension Scheme liability. This has been recalculated this year and at 31 March 2022 amounted to £350,262. The liability is expected to be repaid in annual instalments based on the Recovery Plan which runs to 2037, the repayment of this liability is incorporated into the annual budgets.

Principal Funding Sources

The principal funders remain as charitable foundations/grants, Local Authorities and Clinical Commissioning groups, without whose annual grants, core work of the charitable company could not continue. The charity is making efforts to increase its base of donors and in this respect the Executive Committee wishes to record its gratitude to all those authorities, organisations, bodies and individuals that provide support to Disability North in the furtherance of its mission, including:

5

DISABILITY NORTH

EXECUTIVE COMMITTEE REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2022

PLANS FOR THE FUTURE

Disability North remains in a sound position financially. This financial stability allows the organisation time to focus on strategic growth as well as build on its reserves.

Hire of conference room facilities

We will continue to promote the training room as a reasonable priced option to hire, there has already been some interest in this and it will also be one of the rooms in use as a warm space as we go into 2023.

Office space

Office space available to rent will be reviewed and advertised appropriately. We currently have one empty space.

Funding bids

In addition to statutory funding, the main potential sources of income generation are through successful bids to funding trusts. Disability North continues to focus on sourcing and submitting funding applications.

Payroll

Payroll and Payroll Plus continues to expand and to provide steady, additional income for Disability North. At the end of March 2022 we had a total of 507 payroll clients. In real terms this exceeds our figures from last year because we closed over 50 dormant accounts which counted towards last year’s figures. Our payroll service has an excellent reputation and is a truly personalised service.

Statutory Funding

The Chief Executive Officer will continue to work to maintain good relationships with all statutory funders and work to identify any new potential statutory funding streams.

Partnerships

The Chief Executive Officer will continue to maintain relationships with existing partners and explore opportunities to form new alliances with a variety of organisations with a view to working effectively together.

Key drivers for the future

Personalisation, social care crisis, the cost of living crisis, the ageing population and austerity are all continuing themes on the health and social care agenda. The role of the voluntary sector is consistently mentioned within Government agenda at both local and national levels. Disability North needs to ensure it is well placed to take advantage of all potential opportunities both to raise its profile in the region and to ensure financial stability.

FUNDS HELD AS CUSTODIAN TRUSTEE ON BEHALF OF OTHERS

Disability North holds monies on behalf of other organisations relating to a payroll service, this is provided to a number of small organisations and individuals.

6

DISABILITY NORTH

EXECUTIVE COMMITTEE REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2022

REFERENCE AND ADMINISTRATIVE DETAILS

Charity Number: 514733 Company Number: 1781525 Registered Office: The Dene Centre , Castle Farm Road , Newcastle upon Tyne , NE3 1PH

Our advisors

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

Bankers Lloyds TSB PO Box 8, High Street, Gosforth, Newcastle upon Tyne, NE3 1JQ Unity Trust Bank Plc Nine Brindley Place, Birmingham, B1 2HB Solicitors Weightmans LLP, 1 St James Gate, Newcastle upon Tyne, NE99 1YQ

Directors and Executive Committee

The directors of the charitable company are its Executive Committee for the purpose of charity law. The Executive Committee and officers serving during the year and since the year end were as follows:

L Reynolds (Chair) (Elected 20 December 2022) J L Cairns (ex-Chair) (Resigned from Chair 20 December 2022) A Gawne (Appointed 7 January 2022, resigned 2 November 2022) M Hood (Resigned 7 July 2022) G Hunter (Appointed 20 December 2022) K Morris (Appointed 20 December 2022) A Neal (Appointed 20 December 2022) L Pritchard S Swanston – Newbrook (Appointed 7 January 2022, resigned 20 December 2022) T Rowlands (Appointed 20 December 2022) R Thomas (Resigned 2 December 2022)

Key management

(Ex) Chief Executive Officer Chief Executive Officer Service Team Manager Payroll Manager

Victoria Armstrong (resigned 16 September 2022) Vici Richardson (appointed 19 September 2022) Keith Moore Lynne Waggott

7

DISABILITY NORTH

EXECUTIVE COMMITTEE REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Documents

The charitable company is limited by Guarantee and is governed by its memorandum and articles.

Recruitment and Appointment of Executive Committee

Members of the Executive Committee, who must be members of Disability North, are elected by the members at the annual general meetings or appointed by the Executive Committee until the next annual general meeting when the person appointed is eligible for re-election by the members.

Executive Committee Induction and Training

The induction and training of new members of the Executive Committee is accomplished by selection interviews and an introductory session prior to appointment. Periodic training opportunities and all Charity Commission bulletins and fact sheets are forwarded to members of the charity.

Organisational Structure

The Executive Committee is ultimately responsible for the activities of the organisation. The Senior Executives of the charitable company attend the meetings of the Executive Committee but are not eligible to vote.

Related Parties

Details of related parties arising through third party connections with members of the Executive Committee are given in note 23 to the accounts.

Pay policy for senior staff

The Executive Committee and senior management team comprise the key management of the charity and are in charge of directing, controlling, running and operating the charity on a day to day basis. All Executive Committee members give their time freely and no director received remuneration during the year. The pay of senior staff is reviewed annually by the board along with all other staff.

Risk Management Policy

The Executive Committee has assessed the major risks to which the charitable company is exposed, and are satisfied that systems and controls are in place to mitigate exposure to the major risks. The Executive Committee formally reviews the Risk Assessment Policy, which covers every area of activity every year.

8

DISABILITY NORTH

EXECUTIVE COMMITTEE REPORT (Continued) FOR THE YEAR ENDED 31 MARCH 2022

EXECUTIVE COMMITTEE STATEMENT OF RESPONSIBILITIES

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

Company law requires the Executive Committee 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 the incoming resources and application of resources, including the income and expenditure, for that period. In preparing these financial statements, the Executive Committee is required to:

The Executive Committee are also responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company 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.

The Executive Committee are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

INDEPENDENT EXAMINERS

A resolution proposing that Stephenson Coates Audit Limited will be re-appointed as independent examiners of the company will be put to the Annual General Meeting.

Approved by the Executive Committee on 17 February 2023 and signed on their behalf by:

…………………………….

L Reynolds Chair

9

DISABILITY NORTH

INDEPENDENT EXAMINDER’S REPORT TO THE MEMBERS OF DISABILITY NORTH

I report on the financial statements for the year ended 31 March 2022, which comprise the statement of financial activities (including income and expenditure account), balance sheet, statement of cash flows and the related notes to the accounts.

Responsibilities and basis of report

As the charity’s trustees of the company (and also its directors for the purposes of company law), you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (the ‘2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner’s report

Since the company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

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

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

Rachael Oswald BA ACA STEPHENSON COATES AUDIT LIMITED Chartered accountants West 2, Asama Court Newcastle Business Park Newcastle upon Tyne NE4 7YD

17 February 2023

10

DISABILITY NORTH

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022

Unrestricted Designated Restricted
Income:
Notes
Funds
£
Funds
£
Funds
£
Donations and Grants
4
36,176
-
194,046
Income from charitable activities
5
245,330
-
-
Income from other trading activities
6
50,433
-
-
Investment income
7
431
-
-
Other income
2,932
-
-
Total income
335,302
-
194,046
Expenditure:
Cost of raising funds
6
-
-
-
Expenditure on charitable activities
8
303,859
8,293
151,909
Pension liability
21,800
-
-
Total expenditure
325,659
8,293
151,909
Net gains/(losses) on investments
( 1,286 )
-
-
Net income/expenditure
8,357
( 8,293 )
42,137
Transfer between funds
20
-
-
-
Net movement in funds
8,357
( 8,293 )
42,137
Reconciliation of funds
Total funds brought forward
( 95,294 )
190,990
2,863
Total funds carried forward
( 86,937 )
182,697
45,000		 Total
2022
£
230,222
245,330
50,433
431
2,932
529,348
-
464,061
21,800
485,861
( 1,286 )
42,201
-
42,201
98,559
140,760		 Total
2021
£
299,306
156,860
41,031
944
2,288
500,429
650
454,750
22,405
477,805
81
22,705
-
22,705
75,854
98,559

This Statement of Financial Activities includes all gains and losses recognised in the year. All incoming resources and resources expended derive from continuing activities.

The notes on pages 14 – 29 form part of these financial statements.

11

DISABILITY NORTH

BALANCE SHEET AS AT 31 MARCH 2022

Notes
Fixed Assets
Tangible assets
13
Investments
14
Current Assets
Stocks
Debtors
15
Cash at bank and in hand
Liabilities:
Creditors: amounts falling due
within one year
16
Net current assets
Total assets less current liabilities
Creditors: amounts falling due
after more than one year
17
The funds of the charity:
Restricted funds
20
Unrestricted funds
Designated funds		 £
2022
£
193,168
27,634
220,802
300
109,032
182,903
292,235
( 44,615)
247,620
468,422
( 327,662 )
140,760
45,000
( 86,937 )
182,697
140,760		 £
300
81,961
202,813
285,074
(60,352 )		 2021
£
205,336
28,920
234,256
224,722
458,978
( 360,419 )
98,559
2,863
( 95,294 )
190,990
98,559

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

For the year in question, the charitable company was entitled to exemption from an audit under section 477 of the Companies Act 2006. The trustees have not required the charitable company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Act. The trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

Approved by the Executive Committee on 17 February 2023 and signed on their behalf by:-

………………………………………….

L Reynolds Chairman

Company Registration No. 1781525

The notes on pages 14 - 29 form part of these financial statements.

12

DISABILITY NORTH

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2022

Note
2022
£
Cash flow from operating activities
Net cash flow from operating activities
24
( 20,341 )
Cash flow from investing activities
Payments to acquire tangible fixed assets
-
Investment income
431
Net cash flow from investing activities
431
Net increase / (decrease) in cash and cash
equivalents
( 19,910 )
Cash and cash equivalents at the beginning of the year
202,813
Cash and cash equivalents at the end of the year
182,903
Cash and cash equivalents consist of:
Cash at bank and in hand
182,903		 2021
£
79,723
( 6,455 )
944
( 5,511 )
74,212
128,601
202,813
202,813

The notes on pages 14 – 29 form part of these financial statements.

13

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2022

DISABILITY NORTH

1. Accounting Policies

1.1

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice.

Disability North meets the definition of a public benefit entity under FRS 102. The financial statements are prepared under the historical cost convention or transaction value unless otherwise stated in the relevant accounting policy note(s). The financial statements are prepared in Sterling which is the functional currency of the charity and rounded to the nearest £1.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

1.2 Going concern

A pension liability of £350,262 shown in note 19 has been provided in the financial statements in accordance with FRS 102. The liability represents the additional contributions required in line with the Recovery Plan which runs to 2037. Further detail in relation to the recognition of the liability can be found in note 1.14. The pension liability does not fall due immediately.

The financial statements are prepared on a going concern basis. The Executive Committee have reviewed the annual budgets and considered relevant information. Actual results are monitored against budget along with cash flows. Based on these assessments and the current resources available, the Executive Committee have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

1.3 Funds

Unrestricted funds are donations and other incoming resources receivable or generated for the objects of the charity without further specified purposes and are available as general funds.

Designated funds are amounts earmarked by the Executive Committee for a specific purpose.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Incoming resources

All incoming resources are included in the Statement of Financial Activities when the charity has entitlement to the funds, any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

Donations from individuals and charitable trusts are recognised when notification of payment is received, unless there are specific conditions attached.

Income from charitable activities includes income received under contract or where entitlement to grant funding is subject to specific performance conditions and is recognised as earned. Grant income included in this category provides funding to support performance activities and is recognised where there is entitlement, certainty of receipt and the amount can be measured with reasonable certainty. Income received to deliver services over a specific period covering more than one financial year is accounted for over the specific period; related expenditure is accounted when incurred.

Investment income relates to interest earned through holding assets on deposit.

No amount is included within the financial statements for volunteer time in line with the SORP (FRS 102).

14

DISABILITY NORTH

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2022

1.5 Expenditure and irrecoverable VAT

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as an expense against the activity for which the expenditure arose.

1.6 Support costs

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, finance, personnel and governance costs. They are incurred directly in support of expenditure on the objects of the charity.

1.7 Tangible fixed assets and depreciation

Tangible fixed assets other than freehold land are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Leasehold land over the remaining period of the lease Leasehold buildings 40 years Furniture and equipment 1 to 10 years

1.8 Investments

Fixed asset investments are stated at market value.

1.9 Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are stated at the amount prepaid net of any trade discounts due.

1.10 Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.11 Creditors and provisions

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 fund 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 after allowing for any trade discounts due.

1.12 Leases

Rentals payable under operating leases are charged against income on a straight line basis over the base term.

1.13 Pensions

The charitable company contributes to a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charitable company. The annual contributions payable are charged to the SoFA.

The charity also contributes to a defined benefit pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. It is not possible for the charitable company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme and therefore accounts for it as a defined contribution scheme. In addition to the above accounting deficit the scheme has agreed a schedule of contributions with participating employers that will eliminate the plan over 20 years. The charity has recognised a liability for the contributions adjusted for the time value of money and an equal expense in the SoFA.

15

DISABILITY NORTH

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2022

1.14 Financial instruments

The charity 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.

1.15 Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

1.16 Voluntary assistance

Time is expended on the charity’s activities and governance which is donated free of charge. It is impractical to quantify the value of the time given, and accordingly it is neither recorded as donated income nor as an expense in the financial statements.

1.17 Critical accounting estimates and judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results.

There are no critical judgements, significant assumptions concerning the future and key sources of estimation of uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

16

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2022

DISABILITY NORTH

2. Legal status

Disability North is a private company limited by guarantee (No 1781525) and not having a share capital. The company is registered in England and Wales and a registered charity in England and Wales. The address of the registered office is The Dene Centre, Castle Farm Road, Newcastle upon Tyne, NE4 7YD.

In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

3. Comparative statement of financial activities

Unrestricted
Funds
£
Designated Restricted
Funds
Funds
£
£
Income:
Donations and Grants
187,635
-
111,671
Income from charitable activities
156,860
-
-
Income from other trading activities
41,031
-
-
Investment income
944
-
-
Other income
2,288
-
-
Total income
388,758
-
111,671
Expenditure:
Cost of raising funds
650
-
-
Expenditure on charitable activities
317,790
8,294
128,666
Pension liability
22,405
-
-
Total expenditure
340,845
8,294
128,666
Net gains/(losses) on investments
81
-
-
Net income/expenditure
47,994
( 8,294 ) ( 16,995 )
Transfer between funds
-
-
-
Net movement in funds
47,994
( 8,294 ) ( 16,995 )
Reconciliation of funds
Total funds brought forward
( 143,288 )
199,284
19,858
Total funds carried forward
( 95,294 )
190,990
2,863		 Total
2021
£
299,306
156,860
41,031
944
2,288
500,429
650
454,750
22,405
477,805
81
22,705
-
22,705
75,854
98,559

17

DISABILITY NORTH

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2022

4. Donations and legacies

Donations
Grants
Analysis of grants:
Unrestricted Funds
The Community Foundation Tyne & Wear and Northumberland
The Community Justice Fund
Power to Change Trust
National Lottery Awards for All – Community Fund
Charities Aid Foundation – Coronavirus Emergency Fund
Weston Charity Awards
County Durham Community Foundation
Karbon Homes
Northumberland County Council
The Clothworkers Foundation
Freemasons of Northumberland
The Joicey Trust
Northumbria Police Crime Commissioner Coronavirus Response Fund
Other (less than £2,000)
Restricted Funds
The Henry Smith Charity
The Access to Justice Foundation
The Community Foundation Tyne & Wear and Northumberland
Sir James Knott Trust
Newcastle City Council
Sport England
Awards For All
Bernicia Foundation
Tackling Inequalities Fund
The Edward Gostling Foundation
The REACH Fund
Total Grant income		 2022
£
23,056
207,166
230,222
2022
£
-
-
-
-
-
6,500
-
-
-
-
4,620
-
-
2,000
13,120
54,300
42,261
25,000
25,000
20,000
-
10,000
8,800
8,685
-
-
194,046
207,166		 2021
£
14,289
285,017
299,306
2021
£
62,411
45,000
18,935
10,000
10,000
-
5,000
5,000
5,000
4,500
-
3,000
2,500
2,000
173,346
54,300
30,068
-
-
-
18,238
-
-
-
5,000
4,065
111,671
285,017

18

DISABILITY NORTH

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2022

5. Income from charitable activities

Contractual payments
Sale of goods and services
Income from other trading activities
Fundraising
Rents
receivable
and room
events
hire
£
£
Income
2,207
48,226
Direct costs
-
-
2,207
48,226		 Shop
sales Training
£
£
-
-
-
-
-
-		 2022
£
88,023
157,307
245,330
2022
£
50,433
-
50,433		 2021
£
43,399
113,461
156,860
2021
£
41,031
( 650 )
40,381
-

6. Income from other trading activities

7.
Investment income
Income from listed investments
Interest receivable		 2022
£
258
173
431		 2021
£
656
289
944

8. Charitable expenditure analysis

Activities
undertaken
directly
£
Independent living
235,522
Benefit, advice and support
82,490
318,012		 Support
costs
£
108,165
37,884
146,049		 2022
£
2021
£
343,687
350,043
120,374
104,707
464,061
454,750

19

DISABILITY NORTH

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2022

9. Support costs

Salaries
Water rates
Electricity & Gas
Insurance
Repairs & Maintenance
Cleaning
Telephone
Photocopying, postage, printing & stationary
Training, travel & entertaining
Publicity
Professional fees
Bank charges
Depreciation
Sundry
Governance costs (note 10)
10.
Governance costs
Independent examiner’s fees
Audit fees
11.
Net movement in funds
This is stated after charging:
Depreciation
Auditor’s remuneration
Independent examiner’s remuneration		 2022
£
49,356
637
3,941
2,685
26,896
2,863
1,319
7,611
1,478
1,210
26,054
1,356
12,168
5,975
2,500		 2021
£
45,523
659
1,590
2,497
22,316
3,145
821
3,246
844
645
12,486
610
12,756
3,952
5,000
116,090
2021
£
-
5,000
5,000
2021
£
12,756
5,000
-
146,049
2022
£
2,500
-
2,500
2022
£
12,168
-
2,500

20

DISABILITY NORTH

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2022

12. Analysis of staff costs and Executive Committee remuneration and expenses

Wages and salaries
Social security costs
Other pension costs
Number of employees
The average monthly number of employees during the year was:
Direct charitable services
Management and administration of the charitable company		 2022
£
300,021
14,371
25,333
339,725
2022
10
6
16		 2021
£
276,719
19,742
22,854
319,315
2021
10
6
16

Included in the above are redundancy costs of £2,720 (2021 – £505).

There were no employees who received employee benefits (excluding employer pension costs) of more than £60,000 (2021 – None).

None of the Executive Committee (or any persons connected with them) received any remuneration for their services as directors during the year. No members of the Executive Committee were reimbursed travelling expenses during the year (2021 - £Nil).

The key management personnel of the charity comprise the Executive Committee, the Chief Executive Officer, Service Team Manager, Finance Manager and Payroll Manager. The total employee benefits of the key management personnel of the charity were £145,537 (2021 - £145,264).

21

DISABILITY NORTH

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2022

13.
Tangible Fixed Assets
Cost
Long
Long
leasehold
leasehold
Furniture &
land
buildings
equipment
£
£
£
At 1 April 2021
50,847
687,335
36,567
Additions
-
-
-
At 31 March 2022
50,847
687,335
36,567
Depreciation
At 1 April 2021
8,229
538,963
22,221
Charge for the year
484
7,809
3,875
At 31 March 2022
8,713
546,772
26,096
Net book value
At 31 March 2022
42,134
140,563
10,471
At 31 March 2021
42,618
148,372
14,346		 Total
£
774,749
-
774,749
569,413
12,168
581,581
193,168
205,336

All tangible fixed assets are held for direct charitable purposes. Parts of the building are let to organisations with related objectives.

22

DISABILITY NORTH

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2022

14.
Fixed Asset Investments
UK Managed Bond
UK Managed Bond
At 1 April 2021
Unrealised gain
At 31 March 2022
Historical cost
15.
Debtors
Trade debtors
Prepayments and accrued income

23

DISABILITY NORTH

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2022

16. Creditors: Amounts falling due within one year

Trade creditors
Taxes and social security costs
Accruals
Pension liability (note 19)
Other creditors
17.
Creditors: Amounts falling due after more than one year
Pension liability (note 19)		 2022
£
7,747
5,909
3,715
22,600
4,644
44,615
2022
£
327,662		 2021
£
19,082
10,817
3,715
21,800
4,938
60,352
2021
£
360,419

18. Holding accounts

During the year Disability North held monies on behalf of individuals and organisations in relation to the payroll plus service provided to service users.

£
At 1 April 2021 1,866,420
Income 5,989,009
Expenditure ( 6,218,713 )
At 31 March 2022 1,636,716

24

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2022

DISABILITY NORTH

19. Pension costs

Defined contribution scheme

A money purchase stakeholder pension scheme is offered to new employees. During the year contributions of £25,333 (2021 - £22,854) were paid, the employer’s contribution rate is 5%.

Defined benefit scheme

The charitable company’s employees belong to a Local Government Pension Scheme (LGPS) with the Tyne and Wear Pension Fund. This is a funded defined benefit scheme, with the assets held in separate trustee administered funds. The defined benefit scheme was closed to new entrants on 1 April 2004.

The most recent valuation was at 31 March 2019 and showed it to be in deficit. Disability North is required to make contributions to the deficiency. The next year’s deficiency payments, which are in addition to the normal pension cost, will be £22,600.

In accordance with FRS 102, the net present value of the future contributions required by Disability North over 15 years to clear the funding deficit is £350,262 (2021 - £382,219). In calculating this net present value the contributions from the triennial valuation to 31 March 2019 have been used, along with a discount rate of 2.7% (2021 – 2.5%) representing the typical yield of high quality corporate bonds.

25

DISABILITY NORTH

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2022

20. Statement of funds

Year ended 31 March 2022 Balance at Balance at Gain/loss Balance at
1 April Incoming Outgoing investment
31 March
2021 resources resources & transfers
2022
£ £ £ £ £
Unrestricted funds
General funds ( 95,294 ) 335,302 ( 325,659 ) ( 1,286 ) ( 86,937 )
Designated funds
Capital assets 190,990 - ( 8,293 ) - 182,697
Total unrestricted funds 95,696 335,302 ( 333,952 ) ( 1,286 )
95,760
Restricted funds
The REACH Fund 2,863 - ( 2,863 ) - -
The Henry Smith Charity - 54,300 ( 54,300 ) - -
The Access to Justice Foundation - 42,261 ( 42,261 ) - -
The Community Foundation - 25,000 ( 25,000 ) - -
Sir James Knott Trust - 25,000 - - 25,000
Newcastle City Council - 20,000 - - 20,000
Awards For All - 10,000 (10,000 ) - -
Bernicia Foundation - 8,800 ( 8,800 ) - -
Tackling Inequalities Fund - 8,685 ( 8,685 ) - -
Total restricted funds 2,863 194,046 ( 151,909 )
-		 45,000
98,559 529,348 ( 485,861 ) ( 1,286 ) 140,760

26

DISABILITY NORTH

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2022

20. Statement of funds (Continued)

Year ended 31 March 2021 Balance at Gain/loss Balance at
1 April Incoming Outgoing investment
31 March
2020 resources resources & transfers
2021
£ £ £ £ £
Unrestricted funds
General funds ( 143,288 ) 388,758 ( 340,845 ) 81 ( 95,294 )
Designated funds
Capital assets 199,284 - ( 8,294 ) - 190,990
Total unrestricted funds 55,996 388,758 ( 349,139 ) 81 95,696
Restricted funds
The Access to Justice Foundation - 30,068 ( 30,068 ) - -
The Clinical Commissioning Group
4,958		 - ( 4,958 ) - -
The Edward Gostling Foundation - 5,000 ( 5,000 ) - -
The Henry Smith Charity - 54,300 ( 54,300 ) - -
The REACH Fund 12,900 4,065 ( 14,102 ) - 2,863
Reeds Grassroots Fund 2,000 - ( 2,000 ) - -
Sport England - 18,238 (18,238 ) - -
Total restricted funds 19,858 111,671 ( 128,666 )
-		 2,863
75,854 500,429 ( 477,805 ) 81 98,559

Designated funds

The capital asset fund equals the net book value of the leasehold property.

Restricted funds

The Access to Justice Foundation - to fund the salary costs of the Community Care Advisor.

Awards for All – to fund the trainer developing Personal Assistant training and awareness

Bernicia Foundation - to fund the trainer developing Personal Assistant training and awareness

The Clinical Commissioning Group – the fund is to support The Information and Advisory Service and Independent Living and Resource Centre.

The Community Foundation – to fund the benefits advice service.

The Edward Gostling Foundation – to fund independent living advice

The Henry Smith Charity – to fund the salaries and on costs of two Welfare Benefit Advisors.

27

DISABILITY NORTH

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2022

20. Statement of funds (Continued)

Restricted funds ( continued )

Newcastle City Council – to fund the Awareness training

The REACH Fund – to fund the building consultant to undertake a review of future opportunities for the Dene Centre.

Reeds Grassroots Fund - to contribute towards the salary and on costs of a Welfare Benefit Advisor.

Sport England – to fund the set up and pilot of the Ability North project; tailored one-to-one personal training sessions for disabled people

Sir James Knott Trust – to fund the consultancy work and building planning.

Tackling Inequalities Fund – Continuation of Ability North Project tailored one to one Personal Training sessions for disabled people

21. Analysis of funds

Year ended 31 March 2022

Unrestricted
Designated
Restricted
Funds
Funds
Funds
£
£
£
Tangible fixed assets
10,471
182,697
-
Investments
27,634
-
-
Net current assets
202,620
-
45,000
Long term liabilities
( 327,662 )
-
- (
( 86,937 )
182,697
45,000
Year ended 31 March 2021
Unrestricted
Designated
Restricted
Funds
Funds
Funds
£
£
£
Tangible fixed assets
14,346
190,990
-
Investments
28,920
-
-
Net current assets
221,859
-
2,863
Long term liabilities
( 360,419 )
-
- (
( 95,294 )
190,990
2,863		 Total
£
193,168
27,634
247,620
327,662 )
140,760
Total
£
205,336
28,920
224,722
360,419 )
98,559

28

DISABILITY NORTH

NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 MARCH 2022

22. Operating commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

Not later than one year
Later than one and not later than five years		 Equipment
2022
£
2021
£
4,400
8,360
17,600
17,600
22,000
25,960

23. Related Parties

There are no related party transactions in the year (2021: None).

24. Reconciliation of net income to net cash flow from operating activities

2022
£
Net movement for the year
42,201
Investment income
( 431 )
Depreciation
12,168
Loss/(gain) on investments
1,286
Decrease/(increase) in debtors
( 27,071 )
(Decrease)/increase in creditors: due within one year
( 15,737 )
(Decrease)/increase in creditors: due after more than one year
( 32,757 )
( 20,341 )		 2021
£
22,705
( 944 )
12,756
( 81 )
50,203
( 5,521 )
605
79,723

29