OpenCharities

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

2023-03-31-accounts

CHARITY REGISTRATION NUMBER: 514733 COMPANY REGISTRATION NUMBER: 1781525

Disability North

Company Limited by Guarantee Financial Statements

31 March 2023

STEPHENSON COATES AUDIT LIMITED

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

Disability North

Company Limited by Guarantee

Financial Statements

Year ended 31 March 2023

Page
Executive Committee’s annual report (incorporating the message from our Chief
Executive Officer) 1
Independent Examiner’s Report 13
Statement of financial activities (including income and expenditure account) 14
Balance Sheet 15
Statement of cash flows 16
Notes to the financial statements 17

Disability North

Company Limited by Guarantee

Executive Committee’s Report (Incorporating the Directors’ Report)

Year ended 31 March 2023

The Executive Committee, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 March 2023.

Reference and administrative details

Registered charity name Disability North
Charity registration number 514733
Company registration number 1781525
Principal office and registered The Dene Centre
office Castles Farm Road
Newcastle upon Tyne
NE3 1PH
Chief Executive Officer Vici Richardson (Appointed 19 September 2022)
Victoria Armstrong (Resigned 16 September 2022)
The trustees L Reynolds (Chair) (Elected 20 December 2022)
J L Cairns (ex-Chair) (Resigned from Chair 20 December 2022)
A Gawne (Resigned 2 November 2022)
G Hunter (Appointed 20 December 2022)
K Morris (Appointed 20 December 2022)
A Neal (Appointed 20 December 2022)
L Pritchard
N Sinclair (Appointed 7 September 2023)
S Swanston – Newbrook (Resigned 20 December 2022)
T Rowlands (Appointed 20 December 2022)
R Thomas (Resigned 2 December 2022)
Independent Examiner Stephenson Coates Audit Limited
Chartered Accountants & Statutory Auditor
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 Sintons Law
Barrack Road
Newcastle upon Tyne
NE4 6DB

- 1 -

Disability North

Company Limited by Guarantee

Executive Committees Report (Incorporating the Directors’ Report) (continued)

Year ended 31 March 2023

Chief Executive Officer foreword

2022-2023 has seen a year of change at Executive Level and Leadership of the organisation. In September 2022 Disability North said goodbye to Victoria Armstrong as she took up a new position as Chief Executive of Community Transport Association. We would like to acknowledge Victoria's clear direction and service over the last 6 years, particularly throughout the pandemic. The board appointed a new Chief Executive, Vici Richardson. Vici has grown within the organisation over the last 13 years successfully developing and leading our Independent Direct Payment Support and Community Care Advice Service. Vici has a real passion for social justice and inclusion with a particular interest in self-directed support. We are looking forward to supporting Vici as she takes Disability North forward.

During 2022 we recruited several new trustees who have brought new skills and vision to the organisation. We have a majority of disabled people leading our executive board and this enables us to have a greater focus on the issues that matter to our community. As we delivered the final year of our current strategy, we continued with our mission to promote choice, control, and independence in everything that we do. Our 3 main services delivered, met, and even succeeded all objectives and targets set by the board and our funders.

It is not an easy time for the voluntary sector and the community we serve faces incredible pressures and challenges. Our work is more complex as we work to meet the gaps in support that austerity has created. People’s stories tell us of the difficulties they are facing often relating to financial inclusion, drawing on good care and support and good employment opportunities. In 2022 access and inclusion is still a barrier to living a good equal life.

Our social care and welfare system has been creaking down the middle for many years. Financial cutbacks, lack of workforce and professional burnout impacts every area of the health and social care sector. This in turn limits choice, control and inclusion.

The stories we hear on a weekly basis speak of battles, barriers and frustration. Social care charging is pushing many who draw on care and support into debt or to avoid that we hear of the difficult choices that are being made on spending and some feel the only option is to cancel their support. This further increases the isolation that many have faced since the pandemic. We can't fix the system but collectively working with our members, our stakeholders and our funders we can and are committed to support our community through this. We remain an active voice to bring challenge and with a rights-based approach work towards system improvement and good local support.

We will ensure our vision of choice control and independence runs through all the support we provide, the values our staff have, are ensuring the voice of lived experience is amplified at local and national level.

I would like to extend a thank you to all the incredible organisations that have funded us over the last 12 months and continue to fund us. This would not be possible without your funding.

We have an incredible staff team and executive board and I am looking forward to working alongside them as we look towards the future.

Vici Richardson Chief Executive Officer 11[th] December 2023

- 2 -

Disability North

Company Limited by Guarantee

Executive Committees Report (Incorporating the Directors’ Report) (continued)

Year ended 31 March 2023

The Executive Committee present their report together with the financial statements of the charity for the year ended 31 March 2023. 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 for the public benefit.

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:

For the year under review the main objectives were to:

- 3 -

Disability North

Company Limited by Guarantee

Executive Committees Report (Incorporating the Directors’ Report) (continued)

Year ended 31 March 2023

OBJECTIVES AND ACTIVITIES (continued)

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:

- 4 -

Disability North

Company Limited by Guarantee

Executive Committees Report (Incorporating the Directors’ Report) (continued)

Year ended 31 March 2023

ACHIEVEMENTS AND PERFORMANCE

During the year 2022/23

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 and income generated services.

Our Independent Direct Payment Support Service

Our independent direct payment support service provides one-to-one support to individuals managing Direct Payments and Personal Health Budgets. We have been providing Direct Payment Support for 19 years in Newcastle. Since 2020 we have offered this throughout the whole region. The support we offer includes recruiting personal assistants, managing budgets along with advice and support throughout the process. It is a highly personalised service.

During the 22-23 financial year we supported disabled people with 513 queries on direct payments/personal health budgets and supported 337 individual employers.

Personal Assistant recruitment continues to be a challenge as it is across the whole of the social care sector. Our team continue to look at creative ways to raise the profile of the role of the Personal Assistant, including attending many job fayres, using social media effectively, working with universities, as well as improving the search function on our website. We have developed a strong partnership with Newcastle College and have been able to attend sessions to raise awareness of the role of the PA and deliver specific training to their learners on self- directed support.

We have seen an increase of 33.2% in enquiries to the team in the second year of this service.

Over the last 12 months we have continued to raise awareness of the teams expertise and have become a leading, trusted voice in self- directed support. Our Chief Executive sits on a number of national forums enabling Disability North to feed into policy and share good practice.

- 5 -

Disability North

Company Limited by Guarantee

Executive Committees Report (Incorporating the Directors’ Report) (continued)

Year ended 31 March 2023

ACHIEVEMENTS AND PERFORMANCE (continued)

Community Care Advice

We have worked with 25 individuals on a 1 to 1 casework basis. Ranging from Disability Related Expenditure to advice around Care and Support Plans. In addition to this there have been 117 separate community care enquiries. The work we have supported on disability related expenditure (DRE) appeals has reduced individual’s care charges by a collective £12,619.66 over the period. DRE queries remain the biggest issue that we see.

Independent Living

The varied advice Disability North offers on Independent Living is an important service for the region's disabled people. In the 2022-2023 financial year Disability North responded to 617 requests for advice covering a wide range of equipment and services including: personal care, household items, wheelchairs, scooters, grants and accessible holidays.

Benefits Advice

Disability North's welfare benefits advisors provide an essential service for disabled people, their families, and carers in the North East. Despite some staffing challenges the team have continued to exceed funding targets. The cost of living crisis resulted in more people seeking advice on available financial support and many people making claims for disability benefits for the first time. We recruited a new member of the team in January 2023 and this has helped us increase the amount of enquiries we can deal with. Staff members have attended Energy Ambassadors Courses to help them understand the developments with rising energy prices and the options available for supporting service users. We have also increased the support we provide for online benefit forms, including Blue Badge and grant applications. We continue to support our service users with challenging welfare benefits decisions and this can include support to complete mandatory reconsiderations and representation at benefit tribunals.

During the 2022-2023 financial year there has been a substantial rise in demand to support. Due to capacity we are unable to meet all of the demand and will be seeking funding to further increase capacity over the next 12 months.

The team have responded to just over 3000 requests for information and advice on Welfare Benefits and helped over 3000 disabled people gain £7,169,788 worth of benefits, allowing greater opportunities in relation to inclusion and independence.

Our advisors have supported 296 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.

Training

During 2022/2023 we have developed our training offer this includes regular Personal Assistant training and inclusion and access training. Courses that have been developed and begun to be rolled out include:

During 2022/2023 we have run 12 Personal Assistant Courses, introducing 142 people to the role of a PA. We came to the end of the work we were involved in with Newcastle Hospital Trust, to coproduce an online training module to their staff around awareness of adjustments needed for disabled people when visiting and staying in hospital.

- 6 -

Disability North

Company Limited by Guarantee

Executive Committees Report (Incorporating the Directors’ Report) (continued)

Year ended 31 March 2023

ACHIEVEMENTS AND PERFORMANCE (continued)

Policy Influencing

Our Chief Executive Officer continues to work closely with partner organisations such as Think Local Act Personal, Skills For Care, National Direct Payment Forum, Disability Rights UK, Inclusion London, Disability Poverty Action Group, Newcastle Voluntary Advisory Group and North of Tyne Combined Authority.

Raising awareness of the issues disabled people face across the North East is a key part of our work, highlighting challenges those who draw on care and support face in self-directing their support and showing best practice. This year we have been involved with the co-production of the Local Government Associations Survey ‘Personal Assistants, The forgotten Workforce’. This highlighted the challenges direct payment employers faced during Covid and ongoing challenges in recruitment and lack of good direct payment support.

We have engaged with the Department of Health and Social Care in work around the social care workforce strategy. Our Chief Executive was able to travel to London to attend the All Parliamentary Party Group launching the social care workforce plan. This gave a unique opportunity to raise awareness of the Personal Assistant role and to enable the voices of those we support to be heard at government level, to ensure that PAs and Direct Payment employers are not forgotten within any workforce strategy.

We also fed into round tables with the Department of Health and Social Care.

At the beginning of the year, we took part in Difference North Easts employment summit to look at the barriers disabled people face in gaining good employment.

During the latter part of the year we worked with North of Tyne Combined Authority to host an employment equality summit looking at barriers to good employment.

Mayor Jamie Driscoll paid a visit to Disability North early in 2023 and heard first-hand the challenges faced within our community.

We continue to host the Northumberland Parent Carer Forum, which is enabling a strong parent carer voice to their Local Authority.

Research

Disability North is part of the Project Advisory Group for a research project led by Professor Janice Mclaughlin looking at transitions experiences of disabled young people. We hope that we can take some of the learning from this to help shape better services for our young people across the North East.

We have continued to partner with Northumbria University on the Gender and Sexualities Research project looking at how identity affects disabled young people when recruiting Personal Assistants.

Ability North

With funding from Sport England via The Active Together fund we delivered 162 supported sessions with a Personal Trainer. 27 individuals took part in a 1 to 1 personalised 6 week course. In total 33 individuals benefited from this project. This took place within the small accessible gym we have in the Dene Centre.

- 7 -

Disability North

Company Limited by Guarantee

Executive Committees Report (Incorporating the Directors’ Report) (continued)

Year ended 31 March 2023

ACHIEVEMENTS AND PERFORMANCE (continued)

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.

The new board of trustees along with the new Chief Executive have had a priority focus on ensuring the longevity of the building, as well as exploring a community hub facility. Stage 1 of this approach was to secure funding for a new roof and to explore the provision of a changing places facility within the building. Work is to be carried out on this phase early 2024.

We have received Carbon Literacy Training and are committed to ensuring sustainability when looking at building improvements.

Disability North continues to rent out space within the Dene Centre to a variety of tenants. Tenants up to 31 March 2023 include: Liveasy, KarePlus, A Time 2 Talk and Age UK Gateshead. Learning for Life Post 16 SEND provision.

We are delighted this year to have partnered with North East Mobility who have a regular booking and use of our outdoor mobility track for their mobility assessments.

During the latter part of 2022 early 2023 we received funding from Newcastle City Council to use one of our empty rooms as a warm space. Funds were used to repurpose the room and we were able to provide hot drinks, knit and natter sessions, along with welfare benefits advice.

Strategic Planning

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

FINANCIAL REVIEW

Financial Position

At 31 March 2023 the charity is reporting a net operating deficit of £75,939 (2022: surplus £42,201).

During 2022/23 a deficit was forecast within the budget. Largely due to a rise in minimum wage and some repairs that were needed within the building. Moving forward, the Executive Committee are confident that the budget set for 2023-24 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 23-34 and beyond.

Payroll services continues to be a source of revenue; income increased this year by 30% (2022: 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 (2023-2024). We will also commence a 3 year contract with Newcastle City Council to deliver their Direct Payment Support which will make a significant difference to the charity’s finance.

The long-term impact of the Covid-19 pandemic and cost of living crisis continues to affect both the demand for our services and the funding landscape. Due to reductions in budgets we, as many other VCSE organisations are doing more but with less.

The management team remain committed to the provision of core services within budget the award of the Direct Payment contract will provide an even more stable footing to move forward on and enable closer control over fundraising and expenditure

- 8 -

Disability North

Company Limited by Guarantee

Executive Committees Report (Incorporating the Directors’ Report) (continued)

Year ended 31 March 2023

FINANCIAL REVIEW (continued)

The charity enjoys good liquidity and has no issues meeting its liabilities when they fall due. The trustees are confident that the charity will continue to operate for at least the next twelve months.

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 2023 were £250,975 (2022 - £230,254), which excluding the fixed assets and 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 amounts set aside for the roof repair of Disability North’s head office.

Unrestricted reserves and restricted reserves were respectively £663,266 and £30,000 at the end of the year (2022: £95,760 and £45,000 respectively). Total reserves at 31 March 2023 show a net assets position of £693,266 (2022: £140,760) which is after accounting for the exit of the Tyne and Wear Pension Scheme liability. The liability at the end of 31 March 2022 was recalculated to £350,262. The exit valuation was triggered in the year due to the last employee leaving the organisation, and resulted in the calculation being in an overall surplus position, and Disability North being owed £291,300 from the scheme which was received post year end. The amounts have been incorporated into the financials in the year and have contributed to a significant improvement in the financial health of the charitable company at year end.

The trustees have agreed to designate the majority of this cash receipt to repairing the roof at Disability North’s head office, alongside performing other repair works that are required to the site. The total amount designated at year end for this works is £230,000.

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. A full list of our principal funders are documented in Note 4 of the financial statements.

- 9 -

Disability North

Company Limited by Guarantee

Executive Committees Report (Incorporating the Directors’ Report) (continued)

Year ended 31 March 2023

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.

Post balance sheet events

See note 24 of the accounts for details of cash receipts by the charity subsequent to the year end.

Hire of conference room facilities

Our training room provides a reasonable priced option to hire. During 2022/2023 there has been an increase in booking and we continue to have regular and ad hoc bookings bringing an income stream into the charity.

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 2023 we had a total of 511 payroll clients. 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. One such funding stream was the tender for the Direct Payment Support Contract. Our Chief Executive Officer put in a tender for this contract, which was one we successfully held for 17 years before it was retendered in 2020. We are delighted that the bid submitted early 2023 was successful and from May 2023 we will once again be delivering the Direct Payment Support for Newcastle City Council.

We have secured continued funding for 2022/2023 via the Integrated Care Board for our independent living service and welfare benefit advice services.

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.

The executive committee will be extending the current strategy into 2023/2024 as they work on a new 5 year strategy for April 2024. The new strategy will be shaped and influenced by those who use our services, stakeholders, staff and members. Refurbishing the building will begin in 2024 and we will be looking at activities that we can run from the centre, making use of our building and grounds.

- 10 -

Disability North

Company Limited by Guarantee

Executive Committees Report (Incorporating the Directors’ Report) (continued)

Year ended 31 March 2023

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.

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.

Decision Making

The Board entrusts the Chief Executive with the responsibility of making day-to-day operational decisions for the charity, this involves close collaboration with the senior management team. These decisions adhere to the Financial Control Policy, Delegated Responsibilities Procedure, and align with the current operational plan and budget.

The strategic direction is established by the Board, culminating in an annual organisational plan with detailed implementation plans for each team. Matters beyond the Chief Executive's delegated remit are presented to the Board for consideration. A comprehensive bi-monthly report and financial update are prepared for the Board's review.

- 11 -

Disability North

Company Limited by Guarantee

Executive Committees Report (Incorporating the Directors’ Report) (continued)

Year ended 31 March 2023

Executive Committee’s responsibilities statement

The Executive Committee, who are also directors 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 charity’s Executive Committee to prepare financial statements for each 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 trustees are required to:

The Executive Committee are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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.

The Executive Committees’ annual report was approved on 11[th] December 2023 and signed on behalf of the Executive Committee by:

L Reynolds Chair

- 12 -

Disability North

Company Limited by Guarantee

Independent Examiner’s Report to the Members of Disability North

Year ended 31 March 2023

I report on the financial statements for the year ended 31 March 2023, 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 Executive Committee 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

11th December 2023

- 13 -

Disability North

Company Limited by Guarantee

Statement of Financial Activities (including income and expenditure account)

31 March 2023

2023 2022
Unrestricted Restricted
funds funds Total funds Total funds
Note £ £ £ £
Income and endowments
Donations and legacies 5 32,031 94,000 126,031 230,222
Charitable activities 6 257,416 - 257,416 245,330
Other trading activities 7 64,101 - 64,101 50,433
Investment income 1,407 - 1,407 431
Other income 3,074 - 3,074 2,932
--------------------------------- ------------------------------------------ ------------------------------------------ ------------------------------------------
Total income 358,029 94,000 452,029 529,348
================================= ========================================== ========================================== ==========================================
Expenditure
Expenditure on charitable activities 8 403,866 109,000 512,866 464,061
Pension liability 19 13,117 - 13,117 21,800
--------------------------------- ------------------------------------------ ------------------------------------------ ------------------------------------------
Total expenditure 416,983 109,000 525,983 485,861
================================= ========================================== ========================================== ==========================================
Net losses on investments14 (1,985) - (1,985) (1,286)
--------------------------------- ------------------------------------------ ------------------------------------------ ------------------------------------------
Net (expenditure) / income (60,939) (15,000) (75,939) 42,201
================================= ========================================== ========================================== ==========================================
Actuarial gain on defined
benefit pension scheme19 628,445 - 628,445 -
--------------------------------- ------------------------------------------ ------------------------------------------ ------------------------------------------
Net movement in funds 567,506 (15,000) 552,506 42,201
================================= ========================================== ========================================== ==========================================
Reconciliation of funds
Total funds brought forward 95,760 45,000 140,760 98,559
--------------------------------- ------------------------------------------ ------------------------------------------ ------------------------------------------
Total funds carried forward 20 663,266 30,000 693,266 140,760
================================= ========================================== ========================================== ==========================================

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

The notes on page 17 - 26 form part of these financial statements.

- 14 -

Disability North

Company Limited by Guarantee

Balance Sheet

31 March 2023
2023 2022
£ £ £
Fixed assets
Tangible fixed assets 13 182,291 193,168
Investments 14 25,649 27,634
-------------------------------------- --------------------------------------
207,940 220,802
Current assets
Stock 300 300
Debtors 15 380,801 109,032
Cash at bank and in hand 141,819 182,903
--------------------------------- ---------------------------------
522,920 292,235
Liabilities
Creditors: amounts falling due within one year 16 (37,594) (44,615)
--------------------------------- ---------------------------------
Net current assets 485,326 247,620
--------------------------------- ---------------------------------
Total assets less current liabilities 693,266 468,422
Creditors: amounts falling due after more
than one year: 17 - (327,662)
--------------------------------- ---------------------------------
Net assets 693,266 140,760
================================= =================================
Funds of the charity
Unrestricted funds 663,266 95,760
Restricted funds 30,000 45,000
--------------------------------- -----------------------------
20,
Total charity funds 21 693,266 140,760
================================= =================================

These financial statements were approved by the Executive Committee and authorised for issue on 11[th] December 2023, and are signed on behalf of the Executive Committee by:

L Reynolds Chair

Company registration number - 1781525

The notes on page 17 - 26 form part of these financial statements.

- 15 -

Disability North

Company Limited by Guarantee

Statement of Cash Flows

Year ended 31 March 2023

2023 2022
£ £
Cash flows from operating activities
Net income 552,506 42,201
Adjustments for:
Depreciation charges 10,877 12,168
Loss on investment 1,985 1,286
Interest received (1,407) (431)
Changes in:
Trade and other debtors (271,769) (27,071)
Trade and other creditors (334,683) (48,494)
--------------------------------- ---------------------------------
Cash generated from operations (42,491) (20,341)
--------------------------------- ---------------------------------
Net cash from operating activities (42,491) (20,341)
================================= =================================
Cash flows from investing activities
Interest received 1,407 431
--------------------------------- ---------------------------------
Net cash used in investing activities 1,407 431
================================= =================================
Net decrease in cash and cash equivalents (41,084) (19,910)
Cash and cash equivalents at beginning of year 182,903 202,813
--------------------------------- ---------------------------------
Cash and cash equivalents at end of year 141,819 182,903
================================= =================================

The notes on page 17 - 26 form part of these financial statements.

- 16 -

Disability North

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 March 2023

1. General information

The charity is a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is The Dene Centre, Castles Farm Road, Newcastle Upon Tyne, Tyne And Wear, NE3 1PH.

2. Statement of compliance

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

3. Accounting policies

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.

Basis of preparation

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.

Going concern

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 there are no material uncertainties about the charity’s ability to continue, and they can continue to adopt the going concern basis in preparing the annual report and accounts.

Fund accounting

Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Where income has related expenditure (as with fundraising or contract income), the income and related expenditure are reported gross in the Statement of Financial Activities.

Donations, grants and gifts are recognised when receivable. In the event that a donation is subject to fulfilling performance conditions before the charity is entitled to the funds, the income is deferred and not recognised until it is probable that those conditions will be fulfilled in the reporting period. Income from Gift Aid tax reclaims is recognised for any donations with relevant Gift Aid certificates recognised in income for the year. Any amounts of Gift Aid not received by the year-end are accounted for in income and accrued income in debtors.

Income from contracts, government and other grants, whether ‘capital’ grants or ‘revenue’ grants, are recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

- 17 -

Disability North

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 March 2023

3. Accounting policies ( continued )

Income ( continued )

For legacies, entitlement is taken on a case by case basis as the earlier of the date on which: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate.

Clothing and other items donated for resale through the charity’s shop are included as incoming resources within activities for generating funds when they are sold.

Income received in advance for a future fundraising event or for a grant received relating to the following year are deferred until the criteria for income recognition are met.

Interest on deposit funds held is included when receivable and the amount can be measured reliably by the charity which is normally upon notification of the interest paid or payable by the bank.

Sponsorship from events, fundraising and events registration fees are recognised in income when the event takes place. Trading income is recognised on point of sale for both donated and purchased goods.

Donated goods and services

Donated services or facilities are recognised when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the item is probable and that economic benefit can be measured reliably.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis under the following headings.

Expenditure on charitable activities includes the costs of providing specialist care and support, community services, research and other activities undertaken to further the purposes of the charity and their associated support costs.

Support costs comprise those costs which are incurred directly in support of expenditure on the objects of the charity and include governance cost, finance, and office costs. Governance costs are those costs incurred in connection with the compliance with constitutional and statutory requirements of the charity.

Taxation

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

Tangible assets

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 Leasehold buildings Furniture and equipment

Over the period of the lease Reducing balance over 40 years Reducing balance over 1 to 10 years

- 18 -

Disability North

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 March 2023

3. Accounting policies ( continued )

Investments

Fixed asset investments are stated at market value.

Current assets

Amounts owing to the charity at 31 March in respect of grants and service level agreement income are shown as debtors less provisions for amounts that may prove uncollectible. Short term deposits represent cash held on deposit at the bank. Cash at bank and in hand represents bank balances at close of business on 31 March.

Creditors

Creditors 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 are normally recognised at their settlement amount after allowing for any trade discounts due.

Leases

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

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.

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.

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.

4. Limited by guarantee

Disability North is a company limited by guarantee and accordingly does not have a share capital.

Every member of the company undertakes to contribute such amount as may be required not exceeding £1 to the assets of the charitable company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member.

- 19 -

Disability North

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 March 2023

5. Donations and legacies

Donations
Grants
The Henry Smith Charity
The Access to Justice Foundation
The Community Foundation Tyne & Wear
and Northumberland
Sir James Knott Trust
Newcastle City Council
Garfield Weston
Awards For All
Bernicia Foundation
Tackling Inequalities Fund
ScrewFix
Connected Voice
Together Fund
Newcastle Hospitals NHS Foundation Trust
Weston Charity Awards
Freemasons of Northumberland
Other
6.
Charitable activities
Contractual payments
Sale of goods and services
7.
Other trading activities
Fundraising events
Rent and room hire		 Unrestricted
Restricted
2023
2022
£
£
£
£
17,751
-
17,751
23,056
-
60,000
60,000
54,300
-
-
-
42,261

-
-
-
25,000
-
-
-
25,000
-
6,000
6,000
20,000
-
15,000
15,000
-
-
-
-
10,000
-
-
-
8,800
-
-
-
8,685
-
5,000
5,000
-
-
4,000
4,000
-
9,280
-
9,280
-
5,000
-
5,000
-
-
-
-
6,500
-
-
-
4,620
-
4,000
4,000
2,000
32,031
94,000
126,031
230,222
Unrestricted
Restricted
2023
2022
£
£
£
£
106,430
-
106,430
88,023
150,986
-
150,986
157,307
257,416
-
257,416
245,330
Unrestricted
Restricted
2023
2022
£
£
£
£
3,176
-
3,176
2,207
60,925
-
60,925
48,226
64,101
-
64,101
50,433

- 20 -

Disability North

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 March 2023

8. Charitable Activities Costs

Independent living
Benefit, advice and support
port Costs
Salaries
Water rates
Electricity & Gas
Insurance
Repairs & Maintenance
Cleaning
Telephone
Photocopying, postage, printing & stationary
Training, travel & entertaining
Publicity, marketing & advertising
Professional fees
Bank charges
Depreciation
Sundry
Governance costs (note 11)		 Activities
undertaken
directly
Support
costs
2023
2022
£
£
£
£
266,963
120,342
387,305
343,687
86,547
39,014
125,561
120,374		 Activities
undertaken
directly
Support
costs
2023
2022
£
£
£
£
266,963
120,342
387,305
343,687
86,547
39,014
125,561
120,374
353,510
159,356
512,866
464,061
2023
2022
£
£
51,577
49,356
885
637
3,795
3,941
2,713
2,685
31,894
26,896
3,911
2,863
2,234
1,319
10,986
7,611
4,813
1,478
12,698
1,210
10,535
26,054
895
1,356
10,716
12,168
9,054
5,975
2,650
2,500
159,356
146,048

9. Support Costs

10. Net movement in funds Net movement in funds is stated after charging:

2023 2022
£ £
Independent examiner’s remuneration 2,650 2,500
Depreciation 10,877 12,168

11. Executive committee remuneration, benefits, expenses and governance costs

There were no executive committee remuneration or other benefits for the year ended 31 March 2023 ( 2022: Nil ).

Executive committees expenses paid for the year ended 31 March 2023 was £Nil ( 2022: Nil ). Governance costs were limited to the cost of the independent examination, which is disclosed in Note 10.

- 21 -

Disability North

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 March 2023

12. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

2023 2022
£ £
Gross Wages and Salaries 292,297 300,021
Employers National Insurance 16,459 14,371
Employers Pension 17,451 25,333
--------------------------------- ---------------------------------
326,207 339,725
================================= =================================

The average number of employees during the year was 16 (2022: 16) with all employee time involved in providing either direct charitable services, support to the governance of the charity or support services to charitable activities. No employee received employee benefits of more than £60,000 during the year (2022: Nil).

The Key Management Personnel of the charity comprises the Executive Committee, the Chief Executive Officer and Senior Managers. The total employee benefits of the Key Management Personnel of the Charity was £128,943 (2022: £145,537 ).

13.

Tangible fixed assets

Cost
At 1 April 2022
Additions
Disposals
At 31 March 2023
Depreciation
At 1 April 2022
Charge for year
Eliminated on disposals
At 31 March 2023
Net Book Value
At 31 March 2023
At 31 March 2022		 Long leasehold
land
Long leasehold
buildings
Furniture &
equipment
Total
£
£
£
£
50,847
687,335
36,567
774,749
-
-
-
-
-
-
-
-
50,847
687,335
36,567
774,749
8,713
546,772
26,096
581,581
484
7,809
2,584
10,877
-
-
-
-
9,197
554,581
28,680
592,458
41,650
132,754
7,887
182,291
42,134
140,563
10,471
193,168

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

- 22 -

Disability North

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 March 2023

14. Fixed asset investments

UK managed bond
UK managed bond
At 1 April 2022
Unrealised loss
At 31 March 2023
Historical cost
15.
Debtors
Trade debtors
Other debtors
16.
Creditors: amounts falling due within one year
Trade creditors
Taxation and social security
Accruals
Pension liability (note 19)
Other creditors
17.
Creditors: amounts falling due after more one year
Pension liability (note 19)		 2023
2022
£
£
25,649
27,634
£
27,634
(1,985)
25,649
24,442
2023
2022
£
£
77,148
97,139
303,653
11,893
380,801
109,032
2023
2022
£
£
18,775
7,747
14,744
5,909
3,715
3,715
-
22,600
360
4,644
37,594
44,615
2023
2022
£
£
-
327,662
-
327,662

- 23 -

Disability North

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 March 2023

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.

Holding account
At 1 April 2022
Income
Expenditure
At 31 March 2023		 £
1,636,716
7,303,243
(6,803,028)
2,136,931

19. Pensions and other post-retirement benefits

Defined contribution plans

A money purchase stakeholder pension scheme is offered to new employees. During the year contributions of £17,451 (2022 - £25,333) were paid, the employer’s contribution rate is 5%.

Defined benefit scheme

The charitable company’s employees have belonged to a Local Government Pension Scheme (LGPS) with the Tyne and Wear Pension Fund. This was 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 a significant deficit valued at £350,262 at 31 March 2022. Disability North have been required to make annual contributions to reduce this deficiency; amount charged to the statement of financial activities in the current financial period £13,117 (2022: £21,800).

During the financial year, the last employee of the scheme left the organisation, triggering the scheme’s exit valuation. The total surplus of the scheme after exit was valued at £291,300. The amount that has been charged to the statement of financial activities as the actuarial gain on revaluation is £628,445.

The surplus was received by the charity subsequent to the year end, as such the amount owed has been recognised as a debtor balance in the balance sheet at year end.

- 24 -

Disability North

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 March 2023

20. Analysis of charitable funds

Unrestricted
General
Designated
Restricted
Sir James Knott Trust
Newcastle City Council
The Henry Smith Charity
Garfield Weston
Connected Voice
ScrewFix
Other
Prior year comparatives:
Unrestricted
General
Designated
Restricted
The REACH Fund
The Henry Smith Charity
The Access to Justice
Foundation
The Community Foundation
Sir James Knott Trust
Newcastle City Council
Awards For All
Bernicia Foundation
Tackling Inequalities Fund		 At 1 April
2022
Income
Expenditure
Gains /
losses
Transfer
between
funds
At 31
March
2023
£
£
£
£
£
£
(86,937)
358,029
(416,983)
626,460
(47,303)
433,266
182,697
-
-
-
47,303
230,000
95,760
358,029
(416,983)
626,460
-
663,266
25,000
-
(25,000)
-
-
-
20,000
6,000
(26,000)
-
-
-
-
60,000
(30,000)
-
-
30,000
-
15,000
(15,000)
-
-
-
-
4,000
(4,000)
-
-
-
-
5,000
(5,000)
-
-
-
-
4,000
(4,000)
-
-
-
45,000
94,000
(109,000)
-
-
30,000
140,760
452,029
(525,983)
626,460
-
693,266
At 1 April
2021
Income
Expenditure
Gains /
losses
Transfer
between
funds
At 31
March
2022
£
£
£
£
£
£
(95,294)
335,302
(325,659)
(1,286)
-
(86,937)
190,990
-
(8,293)
-
-
182,697
95,696
335,302
(333,952)
(1,286)
-
95,760
2,863
-
(2,863)
-
-
-
-
54,300
(54,300)
-
-
-
-
42,261
(42,261)
-
-
-
-
25,000
(25,000)
-
-
-
-
25,000
-
-
-
25,000
-
20,000
-
-
-
20,000
-
10,000
(10,000)
-
-
-
-
8,800
(8,800)
-
-
-
-
8,685
(8,685)
-
-
-
-
2,863
194,049
(151,909)
-
-
45,000
98,559
529,348
(485,861)
(1,286)
-
140,760

Designated funds are the amounts ring-fenced for repairs to the roof at the Dene Centre.

- 25 -

Disability North

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 March 2023

21. Analysis of net assets between funds

Unrestricted Restricted Total Funds Total Funds
Funds Funds 2023 2022
£ £ £ £
Tangible fixed assets 182,291 – 182,291 193,168
Investments 25,649 – 25,649 27,634
Current assets 492,920 30,000 522,920 292,235
Current liabilities (37,594) – (37,594) (44,615)
Non-current liabilities – – – (327,662)
-------------------------------- --------------------------------- -------------------------------- ---------------------------------
Net assets 663,266 30,000 693,266 140,760
================================= ================================= ================================= =================================

22. Lease commitments

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

2023 2022
£ £
Due not later than one year 4,400 4,400
Due later than one year and not later than five years 14,300 17,600

23. Related parties

During the financial year, £5,000 was received from Newcastle Hospitals NHS Foundation Trust for charitable activities performed by Disability North. £2,500 of this income was paid out to We are all Disabled, a community interest charity which Dr Lucy Reynolds founded and was a trustee of in the financial year.

There are no other related party transactions in the year (2022: None).

24. Post balance sheet events

Subsequent to the year end, £290,000 was received by the organisation from the Tyne and Wear pension scheme. This was recognised as an other debtor at year end (note 15). See further consideration at note 19.

- 26 -