BLYTH STAR E N T E R P R I S E S FINANCIAL STATEMENTS Blyth Star Enterprises Limited A Company Limited by Guarantee Company Registration Number 02152943 Registered Charity Number 519443 31st MARCH 2024 Bell Tindle Williamson LLP Chartered Accountants and Statutory Auditor The Old Post Office 63 Saville Street North Shields Tyne & Wear NE30 1AY CONTENTS Report of the Trustees..................................... .................-...-....-...-. ...................1-36 Independent Auditors, Report to the Trustees........---..........-........................37-41 statement of Financial Activities.. ..42 Statement of Financial Position.................................... ....................-.-.. ..-.-..........43 Statement of Cashflows.-.. .................................................................-.-.... ---.......... Notes to the Financial Statements................-............................--.--..-.-.... ......45-58 The following pages do not form part of the financial statements.. Detailed Analysis of Income and Expenditure................................... . ..59-64 l absolutely love it here, you can just be you, with noone judging you. 66 Pagel. REPORT OF THE TRUSTEES The Trustees, who are also Directors for the purposes of company law, are pleased to present their annual Directors, Report together with the f inancial statements of the Charity for the year ending 31st March 2024, which are also prepared to meet the requirements for a Directors, Report and financial statements for Companies Act purposes. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association and the charities Statement of Recommended Practice (applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland; FRS 102) (issued in October 2019). 4IA s- CHAIRMAN'S STATEMENT l am pleased to present the Annual Report for Blyth Star Enterprises Limited for the financial year ending 31 March 2024. This has been a year of both great challenge and remarkable achievement. as we continue to provide crucial adult social care day and living support services to individuals with complex mental health needs and learning disabilities. Throughout the year, we have remained committed to our core mission of enabling people to live meaningful and f ulfilling lives, no matter the barriers they face. Our services have become even more vital as the societal impacts of mental health and learning disabilities continue to rise, and demand for our support has increased accordingly. The past year, a one of resilience and progress, has seen a challenging external environment, with ongoing strains on public sector funding, increasing demand for services, and the continued recovery from the lasting effects of the COVID-19 pandemic. Despite these pressures, our dedicated staff, volunteers. and supporters have ensured that we continued to deliver high quality serdices to the individuals who depend on us. Page 3. Our day services and living support services have provided thousands of hours of tailored. person-centred care. All of our services are delivered as individualised care packages where we focus on helping people achieve their goals and gain greater independence. We remain proud of the work we do to promote dignity, choice. and inclusion in all aspects of the lives of those we serve. During this year we again saw organic growth within our services through natural expansion to meet need, establishing new partnerships and strengthening existing ones to widen access to our services. We have been able to support a larger number of individuals across different communities, creating pathways to social inclusion, skill development and enhanced well- being. Our impact is best illustrated by the personal stories of those we support. This year, more individuals than ever have transitioned to independent or supported living arrangements, completed vocational training, and achieved greater social participation all thanks to the tireless work of our team and the resilience of those we are privileged to serve. As we look to the future, we recognise the ongoing challenges posed by an evolving social care landscape. However, we also see opportunities. We are committed to innovating our service delivery model to ensure that we remain adaptable and responsive to the changing needs of the individuals and communities we support. Our strategic priorities for the coming year include strengthening further our financial resilience through diversified income streams and prudent management, ensuring that we can continue to provide high quality services. This will also allow us to continue investing in our workforce, providing training and development to ensure our staff continue to lead with excellence. compassion and skill. As ever, we will work to enhance collaboration with the local authority, healthcare providers and community organisations to improve service integration and advocate for better social care policy. Page 4. I would like to express my deep gratitude to our Trustees, whose unwavering commitment and guidance have been invaluable in navigating this year's challenges. l also extend my heartfelt thanks to our management team and staff, who work tirelessly every day to make a tangible difference in people's lives. Finally, I would like to thank our funders, partners, and supporters. Your generosity and belief in our mission enable us to continue our vital work. Together, we will continue to champion the rights and wellbeing of individuals with mental ill health and learning disabilities. We look to the future with hope, optimism, and a renewed sense of purpose. I am confident that with your continued support, we will build on our successes and continue to make a lasting impact in the years ahead. fp eiy Tim P. Chrisp JP Executive Chairman "Tra CHIEF EXECUTIVE STATEMENT Looking back at 2023/24,1 feel extremely proud at what we have achieved and l am filled with appreciation towards our dedicated workforce who are the ones who have helped to make it all happen. The past year has seen substantial organic growth across all of our departments and as a result, we have been able to create a number of new jobs for local people to help us meet the ever-increasing need for specialist mental health support in Northumberland. By growing our organisation in line with demand, we are enabling more adults than ever before who live with complex mental health needs and learning disabilities to stay safe and well and remain as independent as possible, while also ensuring the stability of Blyth Star as an employer. Our team continues to work closely with our partner agencies in order to provide a cohesive and consistent quality of support, which in turn enables us to provide the right support at the right time to the right people capitalising on people's choices and supporting them to live fulfilling, healthy and engaged lives within their communities. As an Organisation, we have always strived to remain true to our purpose and our core values - Somewhere to Live. Somewhere to Work and Someone to Care continue to give purpose and direction to everything we do. Page 6. Through commentary and review, our beneficiaries and stakeholders advise us that the support Blyth Star Enterprises provides to vulnerable adults is essential to their health and wellbeing, community presence and sense of belonging. Whilst this kind of positive feedback is great to receive and serves as an aff irmation that Blyth Star is indeed serving its intended purpose, it does provide added pressure to ensure the charity's continued success against the backdrop of an ever-evolving social care landscape. With the future set firmly in our sights, we have taken huge steps in 2023/24 to make improvements to our services in a number of core areas. as well as further develop our infrastructure to help streamline our operations and sure- up Blyth Star's success into 2024/25 and beyond. Together with the expansion of our Outreach Services in both the north and south of the county, and the development and roll out of a series of bespoke training programmes endorsed by the awarding organisation, NOCN, we have seen innovation in our Day Ser￿[Ces which offer services to the general public which have resulted in commercial successes - further strengthening our financial position and helping to provide new and exciting activities for our service users to engage with. Finally. I would like to take this opportunity to say thank you to all of Blyth Star Enterprises employees. partners and Trustees for their continued support. It is this support and dedication which enables us to effectively deliver our key objectives and maintain our values year after year whilst supporting the people at the heart of our Charity and for this, we are incredibly grateful. r Di%oN Julie Dixon Chief Executive Officer Page 7. OUR PURPOSES AND ACTIVITIES The Charity's purposes are set out in the objects contained in the company's Memorandum of Association. ABOUT US Blyth Star Enterprises works alongside people aged 18 and upwards with mental ill health and or learning and other disabilities to enable them to have meaningful and independent lives within their local communities. We support people to develop and take control of their own lives using a person-centred approach focused on rehabilitation and recovery. Our services include: Living Support Community Residential Rehabilitation Day Services • Training and Employment Training Life Coaching Social and Leisure Activities OUR VISION People with individual needs living the life they choose. The organisation is based upon three fundamental principles: Somewhere to Live, Soniewliere to Work, Someone to Care. Page 8. WHERE WE WORK We are a local organisation operating primarily in the South East of Northumberland, which contains some of the most deprived areas in all of Northumberland. We are also increasingly delivering services in the North and West of the county as the demand for our services grows. Working in partnership with people we support, their families or carers and our commissioners, being person-centred and focussing on what is important for every person is our passion. We pride ourselves on our ability to have a positive impact on people's lives. We recruit, train and support our staff to help people to maximise their independence and to have choice and control over their lives. OUR MISSION For people with mental ill health: Through recovery focused. age appropriate and person centre suppor ',, we encourage people with mental ill health to take back control of theirown lives as much as they can. For people with learning and other disabilities: By delivering a range of flexible care and support services, wwill ens that people living with learning and other disabilities are as independeryt a possible and connected with their local communities. OUR VALUES Treat people with dignity and respect Give people power to make choices Support people to be involved with their communities Take responsibility for our actions and act fairly Be honest. open and accountable Listen to ensure we deliver agreed plans and outcomes Encourage skill and expertise throughout the organisation Welcome and support innovation and new ideas to maximise our impact Promote leadership and learning Page 9. OBJECTIVES AND ACTIVITIES POLICIES AND OBJECTIVES In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit. SUMMARY OF OBJECTS AS SET OUT IN THE GOVERNING DOCUMENT The charitable objects are: To work with people who experience mental ill health and or learning and other disabilities, to enable them to live and work independently within their own local community and to support them towards achieving a quality of life. The provision of community residential rehabilitation, living support, day services, training and employment training services. STRATEGIES FOR ACHIEVING OBJECTIVES In order to achieve the objectives, the Charity provides community residential rehabilitation, living support, day services, training and employment training services, advice and support for people with mental ill health and or learning and other disabilities and their families and carers in Northumberland and other neighbouring Local Authority areas. Blyth Star Enterprises Limited is very involved in the local community and as such, is indebted to a number of local businesses for their support and volunteers who provide their services without financial reward. Page 10. JÈ,l4 ri£, ACHIEVEMENTS AND PERFORMANCE GOING CONCERN After making appropriate enquiries. the Trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they will continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies. REVIEW OF ACTIVITIES- OVERVIEW Blyth Star Enterprises Limited has continued to maintain its primarily organic service growth and innovative modernisation across all areas of the organisation. Our actual impact remains focused on our Organisations, principles of Somewhere to Live, Somewhere to Work and Someone to Care. The Organisations, services are delivered across two key areas: Living Support Services and Day Services. Page 11. LIVING SUPPORT SERVICES The 2023-2024 financial year has been very successful for Blyth Star's Living Support Services. Referrals to outreach remain healthy with new service users on a waiting list and care managers regularly requesting increased support for existing service users within the community. We have been able to create new jobs for both full-time and bank staff in order to keep up with the increased demand for our services which will help us to support more individuals moving forward. All of our independent supported living accommodation within our apartment buildings - Custom House and Bradbury's Old Chandlery, have remained occupied throughout the period. one service user even successfully moved into his own property in the community with support from Blyth Star's outreach service, but we already had a new service user commissioned and ready to move in once the flat had been refurbished. One of the big capital projects that we had hoped to complete within the period was an extension to the ground floor communal area of Custom House to create a larger shared lounge space and kitchen for residents. Unfortunately, due to delays in contractors getting started with the works. this is now due for completion later in the year. The two bungalows that Blyth Star own and operate as part of our outreach service both have tenants who are very content and we have been exploring the possibility of acquiring more properties in the community. ry.'•r }* I'.i.'¥l!¢ J. DAY SERVICES (OVERVIEW) While we seek to develop the potential of all individuals who attend Blyth Star's services, it is important to understand individuals, limitations too. Many of the service users that we work with are. for the most part, not able to enter competitive employment market due to the nature of their disabilities, which is why we provide sheltered work environments and seek to make these as real and as empowering as possible. We currently have approximately 140 people using these services, of which two thirds are under the age of 40 and many of whom may require our support for the foreseeable future. This long term service therefore needs to remain relevant, interesting, challenging and sustainable. Page13. THE STEAMBOAT Building on the success of the past year, where we saw exponential growth in demand for our services. the 2023-24 financial period has been another remarkable year at The Steamboat. Our referrals are increasing organically month on month and we now support 55 service users, ranging in age from 21 to 80. With growth in demand, we have had to increase our staff headcount. taking on two additional bank staff with different skill sets to support our full and part-time members of staff. We also have two service users who, during the period, have completed their Level l and 2 certificates in Food Hygiene so they can support staff and fellow service users in the kitchen. •4 Page 14. LIVING SKILLS While we have always offered elements of Living Skills support and training at The Steamboat, over the past year, we have taken steps towards formalising this into a modular framework of training. similar to the programmes we have in place at The Woodfuel Centre and Stakeford Nurseries. The programme we have developed will take one year for service users to complete and contains five separate units, designed to cover all aspects of essential living - basic health and safety, healthy eating and lifestyle, time telling, basic IT and cybersecurity and culminating in a reflective, self-led art project. The course material has been submitted to the awarding organisation, NOCN, for external endorsement and we will begin delivering the programme once this has been received. In the meantime, we have started a healthy eating regime and service users can get weighed weekly and given advice around diet and nutrition. Page 15. DAY TRIPS Our service users do like to get out and about and to explore new places. When the weather is nice, we go out and have walks locally to the park and the beach, but to make it easier for The Steamboat to plan trips further afield, Carol Boyd, Manager at The Steamboat learned how to drive Blyth Star's minibus in the spring. This has enabled service users to enjoy educational trips around Northumberland and to Beamish Open Air Museum. ARTS AND CRAFTS Arts and crafts are very important to our service users who attend The Steamboat. From knitting to crochet and watercolour painting to textiles, many of our service users are highly creative and find the time that they spend engaging in arts and crafts very important to their sense of wellbeing. During this financial period, we started working on a big group project to create a fidget blanket - a kind of sensory aid which is used to support people with dementia. Each service user created their own sensory 'square' and the squares were then sewn together to make the blanket. The service users enjoyed this project so much, they have gone on to make two more and we intend to donate these to a local care horne in due course. Another creative project the service users at The Steamboat enjoyed engaging with was in the run up to Easter. The Woodwork Department made a series of wooden rabbit-shaped boxes which our seniice users thoroughly enjoyed painting and making pom pom tails for. The finished boxes were then sold at Morpeth market. wy Page 16. STAKEFORD NURSERIES The past year. from April 2023 to March 2024, has been a year of growth and development for the Stakeford Nurseries team. Our gardening and nursery services saw an expansion in both projects and customers, while internal training and team development continued to enhance our workforce capabilities. Notable achievements include the successf ul expansion of retail capabilities and community involvement through various events and outreach programmes. Our nursery products remained in high demand throughout the year. In June, the EPBC planters were distributed, and community planters were refreshed and planted up. enhancing the local environment and supporting community engagement. The organics department continues to work in line with our sustainability goals, having successfully renewed our Soil Association registration in August 2023. This renewal demonstrates our commitment to organic principles and environmentally responsible practices. From a staff perspective. Graham Carr, Horticultural Services Manager at Stakeford Nurseries embarked on a professional development journey by starting the Level 4 Lead Practitioner in Adult Care course in April 2023 in a bid to provide a higher level of frontline support to our service users. Nurseries GARDENING TEAM PERFORMANCE The gardening team began the year with a near-full diary of customers, and any remaining gaps were promptly filled by new clients throughout the year. This consistency in demand is a testament to the excellent service our team provides. A notable achievement for the team was the renewal of our contract with the Port of Blyth, securing an important partnership that will continue to bolster our seniice portfolio. Additionally, our Garden Maintenance Supervisor successfully completed his HGV training, which enables him to drive the MAN gardening van, increasing our operational flexibility. The gardening team also completed a private landscaping job for a local client in October. This job represents a significant milestone in our private project portfolio and paves the way for future high- quality landscaping work. In December, the team launched a new venture into selling Christmas trees. This first-time offering was highly successful, adding a new stream of revenue for the business. with wreaths also remaining a popular seasonal product. Page 18. FACILITIES AND INFRASTRUCTURE Throughout the year, we invested in maintaining and expanding our f acilities to meet growing demand. In response to damage caused by high winds, we had to make repairs to an existing polytunnel by replacing the roof skin. Additionally, a new retail tunnel was erected. and further retail areas were expanded. enhancing our capacity to serve our growing customer base, EVENTS AND COMMUNITY ENGAGEMENT Our commitment to community outreach was evident through our participation in multiple events during the year. In June 2023, we attended the "Future Choices" event at Kirkley Hall, in collaboration with The Woodfuel Centre and The Steamboat day services, to promote our offer to students with special educational needs and disabilities (SEND), including those with Educational Health Care Plans (EHCPS). The event provided an excellent platform to raise awareness about the opportunities we offer and to connect with potential f uture clients and their families. A similar event, "G-Fest,' was held in August at Saint George's Park, furthering our outreach efforts to the SEND community. In September, we hosted a successful barbeque on-site for all of our service users, fostering a sense of community and strengthening relationships with those we serve. Additionally, our annual Christmas meal was once again a huge success, bringing festive joy to everyone involved. TEAM DEVELOPMENT Our team saw some exciting developments throughout this financial year. We recruited a full-time Support Worker on October 2nd, strengthening our workforce and adding fresh energy to our support team. Another key member of our staff completed their Level 3 Health and Social Care qualification, demonstrating their dedication to personal growth and to improving the care we provide to service users. These achievements in staff development are a crucial part of our strategy to ensure that we continue to provide the highest quality services to the individuals that we support. KEY PROJECTS AND INITIATIVES The start of 2024 saw an exciting development with the submission and discussion of our"Barren Land" proposal with Julie Dixon, Blyth Star's Chief Executive Officer. This proposal outlines the vision for transforming unused land into a productive and sustainable area which will lay the foundation for future growth in both service user engagement and educational initiatives. LOOKING FORWARD In February and March, our focus shifted toward preparing for the busy planting season. Seed sowings and plug plant deliveries were in full swing as we prepared for the spring season ahead. Looking to the future, we are excited about the opportunities that lie ahead in terms of expanding our services. continuing to build strong community relationships, and enhancing our internal capabilities to better serve our service users and customers. Page 20. THE WOODFUEL CENTRE 2023-24 has seen another busy year at The Woodfuel Centre. Our staff and service users have been busy producing lots of logs and kindling to supply to our customers over the winter months. We have seen some new faces attend both The Woodfuel Centre and our co-located Woodwork Department, with additional referrals boosting our attendance numbers. COMMERCIAL SUCCESSES On top of our regular kindling supply to Pearsons of Dunns (a major supplier across Scotland) we now also make regular deliveries to two local restaurants, Porkys BBQ and Davanti Italia, who are using our air dried logs to f ire their pizza ovens. The service users love being a part of the restaurant deliveries and often come away with a pizza or two! Our Woodwork Department has also been kept busy, creating some amazing wooden play equipment for a local primary school including mud kitchens, reading dens, a role play shop front, water play balance beam, climbing frame tipis and even a full- scale wooden carl Page 21. At the beginning of the year, service users in the Woodwork Department were busy making wooden tortoise planters to sell in the retail unit at Stakeford Nurseries. The tortoises flew off the shelves and were so sought after, the department ended up making around 35 of them. GARDEN DEVELOPMENT During the summer months. our service users were kept busy with some gardening activities, developing their skills while helping to transform the area of barren land at the back of the factory unit into a client garden. They involved themselves in grass cutting, garden tidy ups, flower bed planting and vegetable growing. We also took on a maintenance contract with a local primary school to cut the grass on their playing field. This has given service users and opportunity to further enhance their skills and practice using more ndustrial-scale gardening equipment. OUT AND ABOUT We always like to have some down- time too, so we visited Seahouses for a day trip and enjoyed some wonderful fish and chips. We also had a day out at the beach where we walked from St Mary's lighthouse all the way to Whitley Bay. Page 22. WOODFUEL AND WOODWORK TRAINING Throughout the period, service users have been continuing to work their way through our in-house programme of Woodfuel and Woodwork training, which is externally endorsed by the awarding organisation, NOCN. The programme is tailored to fit in with the activities the service users do within the factory. They really enjoy this training as it is evidence of what they can achieve. 'itJiJ Page 23. TRAINING We have seen some fantastic progress made by both staff and service users with various training courses and opportunities this financial year. STAFF SUCCESSES Staff completed their Care Certificate Staff completed their L3 Adult Care Worker Qualification Staff completed their L2 Food Hygiene Qualification Person completed their L1 Food Hygiene Qualification Person completed their Working at Height Qualification Staff completed their Manual Handling training staff completed their Fire Marshal training staff also continue to make progress with their mandatory training. Page 24. SERVICE USER SUCCESSES Service users completed their L2 Food Hygiene Qualification Service users completed their L1 Food Hygiene Qualification NOCN ENDORSED PROCIRIIMMES Our in-house training programmes endorsed by the awarding organisation, NOCN, continue to run very successfully across our day services. During the period, we had 60 service users registered to take part in the various programmes: at The Woodfuel Centre in the Woodwork Department at Stakeford Nurseries FINANCIAL REVIEW PRINCIPAL FUNDING SOURCES The principal funding sources of the Charity are the provision of a community residential rehabilitation and recovery sendice, living support outreach serdices, independent supported living services. day services, training and employment training services. These serdices represent 94.44/. (2023: 81.83/.) of the Charity's total income which is an increase on the previous year due to the receipt of a significant Deed of Gift in that year. EXPENDITURE Expenditure has increased compared to the previous year primarily due to the organic growth in service delivery, the effect of Living Wage pay awards made to employees and the impact the enduring cost of living crisis is having on all businesses. STATEMENT OF FINANCIAL POSITION Our statement of financial position continues to grow stronger with total reserves of £2,531,674 (2023: £2.390.089) primarily unrestricted in nature. We invested £7,470 in capital assets during the year (2023: £153,630), mainly in our freehold property and our plant and equipment. We will continue the policy of investing where necessary to modernise, remain safe and where possible, provide improved care at optimum cost. Page 26. Net current assets at the year-end were £818,915 (2023: £621,991) with the increase being attributable to the surplus achieved this year, coupled in particular, with timing effects of receipt of debtors. FINANCIAL AND RISK MANAGEMENT OBJECTIVES AND POLICIES As a registered Charity, the financial objectives of Blyth Star Enterprises Limited are: To be f inancially stable at all times and to maintain sufficient reserves to achieve this. To be managed professionally and prudently in line with policies agreed by the Board of Trustees. To generate operating surpluses and to re-invest these towards the achievement of our charitable objectives. To control expenditure and operate efficiently. To monitor, control and minimise all financial and other risks. Financial Risk Managem nt Policy Internal f inancial controls are regularly reviewed in line with guidelines set by the Charity Commission. This is the responsibility of senior management and the Board of Trustees. The charity manages its cash resources, including sufficient working capital, so that operating needs are met without the need for regular short term borrowing, any surplus cash is invested so as to maximise interest income. The charitable company is exposed to price risk in terms of statutory funding levels but is content that these are in line with those in the sector and budget accordingly. Credit risk is managed through regular contact with funders, liquidity and cash flow risks are managed through appropriate and carefully managed use of financial instruments with our principal bankers. Investment Powers and Policy Under the Memorandum and Articles of Association the Charity has the power to invest in any way the Trustees wish. Page 27. Reserves Policy and Going Concern The Board of Trustees of the Charity have a strategy of continuing wherever possible to build reserves through planned operating surpluses. They are aware that a prudent approach, particularly in the current climate of financial and economic uncertainty, must be maintained to ensure that sufficient reserves are available to provide resources and flexibility to achieve future plans. Should the Charity generate financial surpluses, the current reserves policy allows for up to six months running costs to be kept as an uncommitted reserve. Any funds remaining should be committed to works and services which meet the aims of the Charity, although once committed. these do not have to be spent within one financial year but become restricted funds. At 31st March 2024 unrestricted reserves were £2,284,897 (2023: £2,116,139) and six months running costs amounted to £1,119,819 (2023: £950,680) the Trustees are therefore pleased to report that unrestricted reserves exceed the minimum target by £1,165.078 (2023: £1,165,459). Whilst this is reassuring, ongoing and increasing uncertainty in our areas of activity suggest we continue with our prudent approach in respect of our reserve levels and on that basis, the Trustees have implemented their plan for unrestricted surpluses in this and future years to be extended to six months operating cost. The growth in reserves will be achieved through continued income generation, establishment of unrestricted income streams and sound financial management but we are mindful that we still need to invest in our current projects or any future project that arises which will be of benefit to the Charity. PLANS FOR FUTURE PERIODS The Trustees and senior management team have set out a growth strategy for Blyth Star Enterprises Limited focused on the expansion and modernisation of our services. This expansion and modernisation will generate year on year surpluses that we can re- invest in our staff to improve our service delivery and provide even better support to people with mental ill health and or learning and other disabilities, their families and carers. The Trustees are committed to continuing to invest in our Organisation through the use of our reserves and grant funding, rather than cut back on the seniices that we provide and the resultant impact that we can achieve for our beneficiaries. Page 29. REFERENCE AND ADMINISTRATIVE DETAILS CHARITY NAME. CHARITY REGISTRATION NUMBER: COMPANY REGISTRATION NUMBER: REGISTERED OFHCE AND OPERATIONAL ADDRESS: Blyth Star Enterprises Limited 519443 02152943 The Old Chandlery 30 Ridley Street Blyth Northumberland NE24 3AG BANKERS: Barclays Bank PLC 50-51 Northumbria House. Manor Walks Shopping Centre Cramlington Northumberland NE23 6QP SENIOR STATUTORY AUDITOR: Emma Hartshorne-Ferguson BA FCA Bell Tindle Williamson LLP The Old Post Office 63 Saville Street North Shields. Tyne and Wear NE30 IAY SOLICITORS: Carr & Co Arms Evertyne House Quay Road Blyth Northumberland,, NE24 2AS Paoe 30. DIRECTORS AND TRUSTEES The directors of the charitable company (the Charity) are its Trustees for the purposes of Charity law. The key management personnel who served during the year and since the year end were as follows: BLYTH STAR ENTERPRISES LIMITED: TRUSTEES AND DIRECTORS Elected Trustees: T.P. Chrisp JP (Chairman) S.W. Gibson (Company Secretary) Mrs S.M. Herron Mrs. L. Tweddle BLYTH STAR ENTERPRISES LIMITED: MANAGEMENT Chief Executive Officer: Ms J. Dixon Consultant: G. Moore MBE Page 31. STRUCTURE, GOVERNANCE AND MANAGEMENT NATURE OF GOVERNING DOCUMENT AND HOW THE CHARITY IS CONSTITUTED Blyth Star Enterprises Limited was incorporated in the UK as a company limited by guarantee on 6th August 1987 and as a charity on 30th October 1987. The Company was established under a Memorandum of Association which states the objects and powers of the company and is governed under its Articles of Association dated 18th June 1987 (updated 25th September 2015). In the event of the Company being wound up, the members are required to contribute an amount not exceeding £10. The charitable company is managed by Trustees with expertise relevant to the management of the company. The Trustees meet quarterly to monitor performance, agree resource allocation, identify and agree solutions to problems and respond to any opportunities that arise. The Chief Executive Officer meets regularly with the Chairman of the Board of Trustees to discuss performance. APPOINTMENT OF TRUSTEES The Directors of the Company are also Charity Trustees for the purpose of Charity law. Should Blyth Star Enterprises Limited wish to recruit a new Trustee there are formal procedures in place to ensure a good candidate is selected. There is no specific age group or experience required to be a Trustee, however Trustees must not have unspent convictions for offences involving deception or dishonesty and be willing and able to demonstrate that they can add to range of skills and experience present in the existing Trustees. They should also be able to demonstrate their commitment to actively participate in the governance and development of the company outside of Board meetings. The Board of Directors will strive to recruit new Trustees from within the area of influence of the Charity, from wider professional spheres, i.e. local business community and people with experience of providing, organising or administering employer training. Pago 32. In addition it will actively seek to recruit people with experience of mental ill health and learning disabilities, their families or carers. Under the requirements of the Articles of Association, members of the Board are normally elected at the Annual General Meeting (AGM), with one third of the Board resigning at each AGM; this number being made up of those who have been appointed to the Board longest since their last appointment. TRUSTEE INDUCTION AND TRAINING There is a formal induction process for all new Trustees. This includes an orientation by the Chairman and Chief Executive Officer and the provision of an information pack which explains their legal obligations under Charity and company law. The pack also contains the Charity Commission publication "The Essential Trustee" and specific guidance on public benefit and conflicts of interest and informs them of the content of the Memorandum and Articles of Association, the committee and decision-making processes, the current business plan and recent financial performance of the Charity. During the induction they meet key employees and other Trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role. ORGANISATIONAL STRUCTURE AND HOW DECISIONS ARE MADE The Charity has no fixed maximum of Trustees. Currently there are four Trustees who meet as a Board to discuss and decide the policies and strategy of the Charity. There is a plan to increase the number of Trustees to a minimum of 8 in the near future. Individual Trustees participate in other meetings in between Board meetings specific to their areas of interest. The Trustees have the ultimate responsibility for establishing the strategic direction and corporate objectives of the Charity with the day-to-day running of the Charity being the responsibility of the Chairman, the Chief Executive Officer and the Day Services Operations Manager. Committees of Trustees are formed as and when required to cover Audit and Finance, Care Quality, Health and Safety and Risk. The Chief Executive Officer is assisted by the Day Services Operations Manager and a variety of service level agreements for essential support services. Page 33. RELIITED-PARTIES AND CO-OPERATION WITH OTHER ORGANISATIONS Blyth Star Enterprises Limited is a specialist provider of care for people with mental ill health and or learning and other disabilities. Services are commissioned by Adult Social Services departments within local councils in the North East of England primarily but not exclusively Northumberland. The Charity enjoys good relationships with a variety of other local and national partners and statutory bodies. PAY POLICY FOR KEY MANAGEMENT PERSONNEL The pay of Key Management Personnel is reviewed annually and normally increased in accordance with average earnings. The Trustees benchmark against average pay levels of other charities and similar organisations within the sector and in the region. Pay levels are set using this information together with budget and forecast information, ensuring that the Charity can afford and proposed increase. The Trustees then agree any uplift to remuneration. PRINCIPAL RISKS AND UNCERTAINTIES Blyth Star Enterprises Limited operates within a highly regulated environment, with the majority of its income derived from the provision of services commissioned by a small number of public funders. As such, the principal risks and uncertainties for Blyth Star Enterprises Limited are: Financial constraints placed on all care providers by public sector commissioners, as they in turn face financial cutbacks. This is a challenge faced throughout the care sector and is by no means unique to Blyth Star Enterprises Limited. Changes in legislation affecting charities and the care sector, including additional compliance requirements. Failure to meet the requirements of our various regulators resulting in the inability to provide services. Changes in legislation affecting businesses in general, such as pension auto-enrolment and changes to the National Living Wage. These lead to increases in our operating costs and again are not unique to Blyth Star Enterprises Limited. Page 34. RISK MANAGEMENT The Trustees understand the importance of assessing major risks to which the Charity is exposed. There are appropriate systems, controls and procedures in place to minimise and mitigate any principal risks and uncertainties. The following major risks to which Blyth Star Enterprises Limited is exposed are regularly reviewed: Financial (fraud, insufficient income, exceptional costs) Governance (recruitment or loss of Trustees and management) External/political (Government policy changes, Local Authority changes) Quality and reputation (compliance failure, breach of law or regulations, serious incident, adverse publicity) Service delivery (recruitment or loss of staff. loss of contracts) Growth risks (failure to achieve long term objectives, availability of investment) Blyth Star Enterprises Limited has reviewed its organisational risk management and assessment policies and procedures and uses the services of specialist Health and Safety/Risk Management advisors to help oversee this area of work, supported by the Senior Management team and Trustees. TRUSTEES RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS The Charity Trustees (who are also Company Directors for the purposes of company law) are responsible for preparing a Trustees, annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Charity Trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure for that period. In preparing those financial statements, the Trustees are required to: Page 35. Select suitable accounting policies and apply them consistently. Observe the methods and principles in the Charities SORP; Make sound judgments that are reasonable and prudent. State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements. and. Prepare the financial statements on the going concern basis unless it is inappropriate to presume the charitable company will continue in business. The Trustees have overall responsibility for ensuring that the charitable company has appropriate systems and controls, financial and otherwise. The Trustees are also responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees 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 and to provide reasonable assurance that: Blyth Star Enterprises Limited is operating efficiently and effectively. All assets are safeguarded against unauthorised use or disposition and are properly applied; Proper records are maintained. and financial information used within Blyth Star Enterprises Limited is reliable, and; Blyth Star Enterprises Limited complies with relevant laws and regulations. The Trustees 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. Page 36. STATEMENT OF DISCLOSURE TO THE CHARITY'S AUDITORS In so far as the Trustees are aware at the time of approving our Trustees, Annual Report: there is no relevant information, being information needed by the Charity's auditors in connection with preparing their report, of which the Charity's auditors are unaware, and; the Trustees, having made enquiries of fellow directors that they ought to have individually taken, have each taken all the steps that he/she is obliged to take as a director in order to make themselves aware of any relevant information and to establish that the Charity's auditors are aware of that information. INDEPENDENT AUDITOR Emma Hartshorne-Ferguson BA FCA and Bell Tindle Williamson LLP are deemed to be re-appointed under Section 487(2) of the Companies Act 2006. Re-appointment will be confirmed at the next Annual General Meeting. This report was approved by the Trustees on 18th December 2024 and signed on their behalf by: T.P. Chrisp JP Executive Chairman *BLYTH STAR F N T E R P R I s r Page 37 BLYTH STAR ENTERPRISES LIMITED A CO.MPANY LI_￿lITED BY GUARANTEE INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF BLI'TH STAR E.JTERPRISES LIMITED YEAR ENDED 31ST Tr1.4RCH 2024 optNION We have audited the fitwlcial statements of Blyth Stsr EnteTprises Limited (Ihe 'charilable companv) for the year ended 3 1st March 2024 which comprise thc statemeni of financial acliTrities (incorporaling income and expenditure account), the stAtement of financial posilion, the statement of cashfi0￿S and ihe related not¢%, including a summary of significant accounting policies. The financial reporting frdmework that has been applied in their prepai'ation is applicable law and United Kingdom Accounting SL￿darl￿, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland {UnÈted Kingdom Generally Accepted Accountino Practice). In our opinion the fmancial statements.. give a true and fair view of the state of the chariiable companrfs affairs as at 3 1st March 2024 and of its incoming resources and application of resources for the year then ended; have beell properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have beell prepared in accordance with the requirementb of the Companies Act 2006. BASIS FOR OPINION We conducted our audit in accordance with International Standards on Auditing (UK) {ISA5 (UK)) aTkd appliLable law. Our responsibilities under those standard.% ttre further described in the auditor's responsibilities for the &udil of the finanLial .%lateTnents section of our report. We are independent of the chatitable con4)any in accordance witli the ethical requirements that are relevant to our audit of the financial sia*ments in the UK, includllig the FRC'S Ethical Standard, and we have fulfilled our other ethical iesponsibilitieq in accordance with tbese requirernenls. We beliei'e that the audit evidence have obtained is suffIcient and appropriate to proiide a basks for our opinion. CONCLLTSIONS RELATII%G TO GOLN'G CONI CERN In auditing the f￿ancIal stalements. we have concluded that the trustees, use of the going concern basis of accounting in the preparatloll of the financial STatements ts appropriate. Based on the ivork we have perfonned, lie have nol identified anN' material uncertainties relating to evenLs or coiidiliong that, individually or collectively, may cast signifieant doubi on the charitable companvs ability lo continue as a going concern for a period of at least tiyeli'e monilL8 (rom when the financial statements are authotised for issue. Our re.%pon8ibililies and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Page 38 BLYTH STAR EliTERPRISES LIN11TED A COTrIPANY LLTrIITED BY GUARANTEE INDEPEINDENT AUDITORS REPORT TO THE TRUSTEES OF BLYTH STAR EITERPRISES LIIlllTED YEAR EIYDED 31ST ￿lARCH 2024 OTHER ll¥FORMATIO.N The oilLer information comprises the inforntstion included in the Report of the T￿￿tee$, other than the fmancial statements and our auditor's report ihereon. The In￿teeS are responsible for the other infomlalion. Our opinion on the [￿all¢la1 statemellts does not cover the other infornthtion and, exeept to the extent otherwise explicitly btaled in our report, we do not express any forni of assurance conclusion thereon. In connection with our audit of the financial slatemenlb, our responsibility is to read ihe othet inforn￿tiOn alld, in doing so, consider whether the other inforn]ation is materiallN' Inco￿$1￿Le￿I the fu￿1claI statements or our knowledge obtained in the audit or otherwise appear8 lo be maLeriallJ misstated. If identrfy such n￿terial inconsistencies or apparent tnaterial tnisstatements, we are required to deterniiue iihether there is a material misslaternent in the f￿￿ne1&1 statetnenls or a n￿terial 1nisslaten￿At of the otber infornialioL If. based on the work we have perfornled. we conclude that there is a nuterial misstatement of this other informatior4 are required io report ihat facL We have nothing to report in this regard. OPll¥lOL¥S ON OTHER TrIA￿ERs PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion, based on the work undenaken in the course of the audit". the infonnalion given in the Report of the Tnjstees for the fllwicial year for which the fillancial statements ale prepared is consistent with the fmancial slatemenls; and the Report of the Trustees has been prepared in accordance wiih applicable legal requiicTnents. MATTERS ON WHICH WE ARE REQLIRED TO REPORT BY EXCEPTION In the light of the knowledge and understanding of the charithble company and ils eni4ronmenl obtained in the course of the alldit, we have nol identified material misstaten]ents in the Report of the Trustees. We have nothing to report tn ￿Spect of the folloThing matter5 in relation to which the Companies Act 2006 Tequires us to report lo you if. in our opinion.. adequate accounting records have not been kepi or returns adequate for our audit have not been received from branches not visited by ￿. or the financial slateTnents are not in agieement with the accounting records and retun￿. or certain disclosures of Trustees, and key managemenl personnel remuneration specified by law are not made,. or we have not reCeI￿.ed all the inforniation and explanations we require foi ow audit. or the Iruslee8 were nol entitled to prepare the financial Statell￿nts in accordance with the Small cornpanies regime and take advantage of the small conjpanies, exen)pllons in preparing the truèitec￿dIreCtors, report and from the requirement to prepare a strategic report. P&ge 39 BLYTH STAR ENTERPRISES LIMITED A cO￿1PANy LINIITED BY GUAR4NTEE INDEPENDEJY AUDITORS REPORT TO THE TRUSTEES OF BLYTH STAR ENTERPRISES LIIIIITED YEAR E￿￿ED 31ST ￿lARCH 2024 RESPONSIBILITIES OF TRLSTEES As explained more fully in the t￿Stees, responsibilities slalement, the trustees ate 1&8ponsible for the preparation of the financial statements and for being )alisfied that rhev give a true and fair Nue￿., and for such inten￿1 control as the Irllslees deterjnine is necessary lo enable the preparation of financial slalemenls that are free Jnalerial rnisstatemenl, whether due to fraud or error. In preparing the financial staternents. thc trusiees are responsible for assessing the charitable eompanls ability to continue as a going coiicern, discloying, applicable: rnatters related to going concern and using the going coneem basis of accounting unless the ttustees either intend to liquidate the charitable eompany or to cease operations, or have no realistic alternative but to do so. AUDITOR'S RESPONSIBILITIES FOR THE .4UDIT OF THE FINLNCIAL STATEMENTS Our objectives are to obtain reasonable assurance about i&hetheT the fiDancial statements as a whole are free from material misstatement. whether due to fraud or e￿0[, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance. but is not a guarantee that an audit conducted in accordanee with ISAS {UK) will alwayg detect a IDalerial mi%&itatenLenl iithen it exists. Mi"Ssralements can arisc from fraud or error and are considered material if: indivtdually or in the agJegate: they could reaionably be expected to infiuence the economic decisioJs of Usel% taken on the basis of these financial statement4. Irregularities, including fraud, are instances of non-compliance with laifvs and regulations. We design procedures in line with our responsibilities, outlined aboi'e: to detect materilll misslalements in respect of irregularities, including fraud. The ¢xtent to which our procedures are capablc of deteLting irregularities, including fraud Is detailed below: Our appioa¢h to identifying and assessing the risks of material misstatement in respect of ittegularities. including fraud and non-compliance with Laws and regulations. was as follows: The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non4on)pb"ance applicable laws and regulatiot]s; We identified the laws and regulations applicable to the cl)aritable company throuoh discussions with trustees and other management: and from our comJnercial knoth,ledge and experience of the cbaritable sector, We focused on specific laws and regulations which considered tnay have a direct material effect on the financial statements or the operaiions of the company. including the Conwanies Act 2006, kgxation legi4lation and data protec.tion, anli-bribery, employmenL environmental, health and sal-ety. mental health and mental capacity acts; We assessed the extent of compliance with the laws and re.oulaEions identified above through making enquiries of management and inspecting legal correspolldenc¢' and Identified laws and regulations were con]mullicated iiithin the audit team regularly and the team rematned alert to instances of non-compliance throughout the audit. We assessed tbe susceptibility of the charilable compangs fllwicial slatetnenls to material miSstaten￿nt, including uht occur: by.. obtaining an understandillg of bow fraud mi. Making enquiries of rnanagement as lo where they considered th¢re was susceptibility to frau(L their knowledge of actual, suspected and alleged fraud. Page 40 BLYTH STAR ENTERPRtSES LIIIIITED A Co￿JPANy LINIITED BY GUAII4NTEE INDEPENDENT ALDITORS REPORT TO THE TRUSTEES OF BLYTH STAR EIYTERPRISES LI￿IlTED YEAR ENVED 31ST NfARCH 2024 AUDITOR'S RESPONSIBILITIES FOR THE ALTDIT OF THE FINANCIAL STATEMENTS (CO￿tiN11ed) Considering the internal controls in place to mitigaie risks of fraud and non-COTnpliance iiitb laws and regulations. and Understanding the design of tbe charitable compangs remuneration pohcies. To addr¢.K% the risk of fraud through manaoement bias and override of control). we: Perfornied alla1￿1r81 piooedures lo identify any unusual or unexpected relationskn"ps; Tested journal entries to identify unusual transactions" Assessed whether judgements and assumptions made in detennining accounting esiimates We￿ indicative of potential bias. and In%'estigaled the rationale behtlld siwficant or unusual transactions. In response to Ihc risk of irregLLlarities and non-compliattce laivs and regulations. we degigned procedures which includ¢d, but were not limiled to: Agreeing financial slatetnent disclosures to underlying supporting documentatt"o Reading the minutes of meetings of tbose charged with goi.'ernance" Enquiting of manageEnent as to actual attd potential h"tigation and claims: and Reviewing Co￿eSpOndence ivith HMRC. releN'anl regulators and the charitable cornpanys legal advisors. There are inherent limitations in our audit pr(￿edureS describ¢d aboiF¢. The more remoi'ed tliat lamts and regulations are froTn finkmeial transactions, the less likely it is Ihxi ￿'e M'ould become aware of noll-compliance. Auditin¢y stand8rdg also limit the audit procedureb Tequited ts) ideniify non-compliance and reoulations to enquiry of the directors and other management and Ihe inspection of regulatory and legal Correspondence, if any. Material misslaternents tbat arise due 10 fraud can be harder lo detecl than those ¢hal atise from error as tljey may involve deliberate coneealmenl or collusion. As part of an audit in accordance wtth ISAS (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also.. Identify and a￿esS the risks of material tni&siatetnellt of the flllancial statements, Thllether due to fraud or e￿or, design and perfoffli audit proc¢duies responsive to those risks. and obtain audtl evidence that is sufficient and appropriate to provide a basis for our opinion. The ri>k of not detecting a material misstatement resiilting from fraud is liigher than for one resulting from error. as fraud ll￿y inTrolve collusion. forgery, intentional on]issioni, Inisrepreseniations, or the override of inten￿1 conlrol. Obtain an understanding of internal ￿ntrol relevant lo the audit in order to desigu audit procedures that are appropriate in the circumstances, bul not for the purpose OF expre&sing an opinion on the etyectii'eness ot tbe internal control. Page41 BL YTH STAR ENTERPRtSES Lll4illTED A cofslPAYL Y LIIIIITED BY GUARANTEE INDEPENDENT.4UDITORS REPORT TO THE TRUSTEES OF BLYTH STAR ENTERPRISES LIMITED YEAR ENDED 31ST l¥fARCH 2024 AUDrroR'S RESPOINSIBILITIES FOR THE ALIIIT OF THE FTh AliCLIL STATEMENTS (e