Community Foundation serving Tyne & Wear and Northumberland (A company limited by guarantee) Annual financial statements for the year ended 31 March 2024 Registered company number 02273708 Registered eharity number 7(M)S10 Community Foundation serving Tyne & Wear and Northumberland (A company limited by guarantee) Annual financial statements for the year ended 31 March 2024 Contents Annual rewrt for the year ended 31 March 2024............................................................. Tndependent Auditors, Report to the Members vf CvmTnullily FuuT]ddtiOll serving Tync & Wear and Northumberland............................................................................................................................... Consolidated staiement of fmancial activities for the year ended 31 March 2024 ....... Consolidated income and expenditure account for the year ended 31 March 2024 ................... Balance shccls as at 31 March 2024.......................................................................................... Con%olidated Lash flow tstalemcnl for the ycar cnded 31 March 2024 .............................. ..... . Notes to the tinancial staternents for the year ended 31 MarLh 2024.... 13 17 18 19 .20 .21 Community FoundatRon serving Tyne & Wear and Northumberland Annual report for the year ended 31 March 2024 Introduction The Board presents its report and the audited consolidated fmancial statements for the year ended 31 March 2024. Thc Charity's full naTn¥ is Community Foundatiou serving Tyne & Wear and Northumberland. refe￿ed to hereafter as the Community Foundation. The Community Foundation's Lhitrity registrdtion nuTnbLr [8 70051 O and Ihc Iilniicd company number is 02273708. Tbe principal otfice and registered otfice is Philanthropy House, Woodbine Road, Gosforth, Newcastle upon Tyne, Tyne & Wear NE3 1 DD. The Charity is incoTporated in the United Kingdom. The Community Foundation comprises four separate organisations whose fmancial statements and activities are consolidated within th¢ group. Th¢y are as follow5.. Community Foundation serving Tyne & Wear and Northumbcrland- a limitcd company and main operating charity, also incotyorating Comrnunity First Trust. Tyne and Wear foundation Trust- a charitable trust, which holds donations of pernianent endowment to the Lommunity Foundation. 'Ihis has enabled several historic charitable trusts lo be transt"erred to the Group. Tyne & Weat Foundation Limited - a trading company whose profits are covenanlLd lo the Community Foundation. The trading company is mainly used for specific large ￿ndraising events bui was inactive during Ihe year. Joseph Brough ChariLable Trust - an endowed trust makiog grants in the historic counties of Durham and Northurnberland, of whiLh the Cornrnunily Foundaiion is solc Irusice. The Community Foundation also administers The Fred Clay Trust, which has its own trnstees and reports separately to the Charity Commission and ils f￿ancial inforniation is not included wilhin these fLnancial statements. The Community foundation is a member of UK Community Foundations, reg*istered chdrity number 1004630, which supports and promotes good practice between Community foundations in the United Kingdom. The Community tr'oundatton manages certain funding programmes on contracts from UK Community Foundations but is not otherwise subject to any governance arrdngements with UK Community Foundations. Community Foundation serving Tyne & Wear and INorthumberland Annual report for the year ended 31 March 2024 (continued) Advisers Independent Auditors Azets Audit Services Bulman House Regent Centre Gosforth Newcastle upon Tyne F,3 3LS Main Bankers Barclays Bank PLC Newcastle Corporate Services Barclays House 5 St. Ann's Street Quayside Newcastle upon Tyne NF.13DX Investment Managers Rathbone Inveslment Management Limited Earl Grey I louse 75-85 Grey Street Newcastle upon TyrAe NF,16EF Cazenove Capital l London Wall Place London EC2Y 3AB CCLA Investrnent Management Limited One Angel Lane London F.C4R 3AB Solicitors Muckle LLP Time Central 32 Gallowgate Newcastle upon 'l'yne NEI 4BF Community Foundation serving Tyne & Wear and Northumberland Annual report for the year ended 31 March 2024 (continued) Structure? governance and management The Community Foundation is a limited company governed by Memorandum and Articles of Association drawn up in 1988 and amended in 1990, 2000, 2007, 2017, 2018 and 2021. The Memorandum and Articles allow t.or four categories of members as follows: Category A - voluntary organisations Clltegory Fl - individuals Category C- Sta￿tOry authorities Category D - companies/businesses Members have voting rights ai the Annual Genenl Meeting and receive regular infom)ation about Community Foundation activities throU￿oUt the year. Members may nominate candidates for election to the Board. Each membLrship LalLgory clecis two members to the Board except for Category C, where Board membcrs are app(iinled by mutuiil Lonsenl. Thl Board may co-opl up io fivkn further members and is required to ensurc adequale representation throughout the area of benefit. Board membeTb serve for a ihree-year tenn and may be electedlappointed for two fi]rther periods of three years each. There arc arrangcmLTlts for induclion. training and support of Board members, which are reviewcd by the G()vernance, Finance and Audii Lommillcc. Each new Board Member is given an induction pack lind allcnds induction sessions with the executive team and meets the Chair. The N(irninations Conimittee reviews training needs of the Board members and arranges training as required. The involvement of Board mLmbers is reviewed by ihe Officers of the Board annually to ensure that skills and time provided by members are used io best effect. Additionally, Board skAlls are kept under review lo infonn Board member recwitment, engag¢meni and support. Boiird member% also volunlccr their services to assist in Coinmunity boundation activitieb, such as ant panels, donor development and publiL 8pcaking during the yLar. The full Board meets four times a year. An additional rneeting is held for retlection and forward planning as required within the strategy period. Within the annual cycle, the Board: agrees an operating budget. Teceives quarterly rnanagcment accounts; agrees annual objectives" reviews objectives- monitors perforn]8nce within agreed targets. onsiders risks and ways to mitigate them. considers strategic issues. and receives reports and minutes from all sub-committees listed below. Community Foundation serving Tyne & Wear and Northumberland Annual report for the year ended 31 March 2024 (continued) Strueture, governance and management (contlnued) The Lloard appoints sub-committees and working groups, which are responsible for more detailed i)vcrsight of strategy and actlVTtics within their area of responsibility. The sub-conunitt¢¢s and working groups meeting during the year were: Governance, Fin3nce and Audit Committee (G,F&A) Investment Comn]ittee (Inv) No￿InatiOnS Committee (Nom) NorthEastlOO development group (NE100) Members of the Board who served during the year and up to the date of signing of the financial statemL'T]ts, iT]cluding L()mmitt¥gs on which ihLy scrvcd during the year, are as follows: Phil M()orhou5e- Chair co-oplcd ()ct()ber 2021 Luey Win5kell OIJE - Depury Chair from October 2022 elected DeceTnber 2016 Paul Farquhar- Treasurer co-opted March 2U18 Jill Baker co-opted Junc 2019 Michael Brodie CBE co-oplcd Fcbruary 2020 Sarmh Glendinnin co-optcd Oclobcr 2022 Andrew Haigh el¢cl¢d DccLmber 2016 Colin Hewltt Llcclcd Ocl()ber 2021 Claire Malcolm MBE CO-OPlcd March 2019 Patrick Melia appointed December 2016 to represenl statutory authorities, resigned October 2023 Pam Smith appointed October 2023 to represent siathtory authorities Laura Warwick appointed November 2018 Stella Simbo ¢leL'ted October 2022 Fiona Stxndfield CO-OPl¢d O¥lob¢r 2022 (G, F&A, tnv, Nom, NF,100) (G,F&A, NEIOO, Nom) (G,F&A, Inv) (Nom, Inv) (NE 100) (Inv) (G,F&A) (G,F&A) (Inv) (NE 100) (Nom) (Nom) (Inv) At the AGM in autumn 2024, Colin Hewitt, Pbil Moorhouse and Laura Warwick come to the end of a three - year terni and are eligible for re-electionlre-CO-QPtion. Community Foundation serving Tyne & Wear and Northumberland Annual report for the year ended 31 March 2024 (continued) Structure? governance and manag¢ment (continued) The Board also appoints a PTesident. Vice Presidents and Patrons in recognition of their distinguished service to the community or contributions to the Community Foundation. These are honorary positions with no foTmal powers or duties. 'Ibe Board reviewed appointments in September 2020. 1.he current office holders arc li%ted Tn the yearbook and on the Community Foundation's website. The liability of the members for the debts and liiibilitie5 of the company is limited in the event of the company being wound up would not exceed £ I per member. The Board has a scheme of delegation which details areas where the Board has, in accordance with the Memorandum and Articles of Association, delegated decisions to individual trustees, to sub-committees or t&sk groups or lo Ihe cxeculivc ILam. The scherne of dclegation also covcr8 Ihosc matters always reserved tor the full membership and the full Buard. The delegated areas are segmented into the following Categories: yovernance, audit & risk, operations and tinance, ynvestment, and philanthropy and tunding. At the year end the executive team members responsible for day-to-day mauagement of the Charity &S delegalcd by thL Board wcre.. Rob Williiimson OFIF. Chivf F,xvLutive OffiLer Sonia Waugh hicf Finance and Operating Officer John Holling8WOrth Lhicfphilanlhropy o￿l¢Cr Adam Lopardo Chicf Funding and ParLncr8hips ()￿iCer At Ihc year-end there w&8 d total of 24 slarr (rull limc cquivalcnt 21.8). Thc Board has a remuneritti()n pulicy which covcr% thc arrangcmcnts. fOr.￿ttIng salarics throughout the organibation including chose staff responsibll for day-lo-day management. The Communiry Foundation has its own salary scale with gyades intended to be broadly cornpatible with charities of a similar si£e in the north of England, and those with similar functions across the UK. Because of its leading position in thc charity sector, the Community Foundation's executive staff must have significant expertise so it must be able lo draw frorn the best talent in a competitive market. Executive staff roles are therefore ungraded which allows the Board to be more flexible in setting pay when recruiting and reviewing performance. All salaries are reviewed annually by a sub-commiltee of the Board with any recornmendations for pay increases presented 10 the ￿]1 Board tor approval when it agrees the aTmual budget. The sub-committee takes account of cost-of-living rises and in flalii)n, external henchmarking dala, and 8latrpcrfonnancc and ci)nlributi()n¥ to LhL organisation's work. The Board sub-committee review5 the Chief Executive's salary and other benefits without hirn presenl, taking account of factors relating to perforn)ance, benChm￿]ng and internal salary differentials. Community Foundation serving Tyne & Wear and Northumberland Annual report for the year ended 31 March 2024 (continued) Objectives and activities The Community foundation's objects are for the benefit of th¢ publi¢ gen¢rally, in particulaT, bu¢ not ex¢lusiv¢ly, in the area of Tyne and Wear and Northumberland.. to promote and support the prevention or relief of poverty or disadvantage. to preserve and protect health. to advance the education of the publiL" for the g¥ncTtil PUTPOSes uf suLh charilablc bodics or for such other exclusively charitable purposes in each case as the Directors may trom time to time decide. The Community Foundation's operational purpose is to grow gyivillg and philanthropy, matching generous people with the region's irnportant community causes. The Community Foundation does this by.. enabling people from all waU(s of life to set up charitable fimds, give collectively or share expertise. supporting small, local charities and ¢on)munity organisations through grants from funds and help from networks; shining a light on vital issues affecting the area and working with others to tackle them. building cndowmenl as an asset for communities now. aud for generations to come. 'I"he CommuTJity Foundation is a generalist grant-tnaker to a wide range of community groups. SoTnL funds have more restricted purp()ses - for LxamplL thc %ir Tom Cowie Pund only makes grants to organisations to support disadvantaged or disabled children and young people in SundLrland. Thc Community foundation accommodates donors, wishes in respect of grant awards wherever possible. The Flotird has agreed certain exclusions for grants with its general funds and these are detailed in grant application materidl,s available on request. "L"he predominant activity is grani-making. but the Communiry Foundation also devotets rcsources to non-financial 8L'cior 8upport, research, development and donor education which aim to in¢rease loLal phildnthropy. Public benefit The Community Foundation exists and operates for the public benefit. Through its &￿t-making it works to improve the community, in particular, but not exclusively, in Tyne & Wear and Northumberldnd. lThe .1 rustee5 confLmi that they have referred to the guidaTh¢e produced by the Charity Cornmission on public bcncfit when reviewing Ihc Charity's aims and objectives and in planning future activities and grant-making and are salisfied ih&tt it meets the requirements. Plans for future periods Plans for future periods t￿e detailcd on pagc l O of this report. StralegiL report Achievements and performance 2023-24 was the fourth year of the Community Foundation's stralegy to 2025. Community Foundation servillg Tyne & Wear and Northumberland Annual report for the year ended 31 March 2024 (continued) Strntegic report (eontinued) Achievements and performance (continued) Other achievements during the year are set out below. More detailed descriptions of activities and their impact are included in the Community Foundation's yearbook. Goal J.. enable more and benerphilanihropy £2.1 m in endowment gFjfts' dnd £4rn ill rcvcnuL gifts were received. 12 new ￿ndS were established. We launched our North East Roots diaspora initiative with eveT]t8 in London and the North East A new NE100 development group compristng trnstees and other supporteT% wa8 Cstablished. Iroal 2.. .8upporl our regiopl's small local charities and community organtsations 1,253 gr￿t$ (2023: 1.406) totalling £8.48m (2023: £7.86m) were awarded, exceeding thL baseline of £6.8m and the five-yttar targLt ()f £7.5rn. The majority continued to be for amounts under £5,000. th total 626 organisations and 41 individuals were support¢d. Thc table below shows the breakdown by fund type. Fund type No of grants Total awards Individual and family funds Cory)oralc funds Charity and trust fiulds Collective tunds Projects and P&iriner8hip fund8 Agcncy funds (benefitillg a named organisation) Total grants 0w#rded by ihe full Group 434 2,570.068 9fj4,868 1,786,430 341,255 1.892,136 872,971 &417,728 207 272 171 146 23 1,253 We updated our ufeguarding policy and training for all slaff members. Funding was delivered tor partner5 including Newc&stle and Gateshead Councils. Grant-making support services were delivered for Rtdley Falnily Lharity and the Bernicia Foundation. 73 organisations benefited from trustee- and skills-matching, training and pro bono consultancy. Cyoal 3.. under.flund und UL'I on vilal issues affecting our communities Wc launLhed our Vital Signs 2024 research and published fmdings from five theme areas. We Lomplelcd our 'Mackem Money, participatory grant-making pilot in Sunderland. We delivered IhL Know Your Neighbourhood programme in partnership with DCMS and UKCr. We delivered the 'Wailing Well. scheme witb the North East and North Cumbria Integrated Care Boatd. Goal 4.. build and sustain our endnwment lo £IOOm and bgyond Trdnsitioned investment service providers and secured agreement for future aggregated reporting against our environmental, social and governance objective5. Received significant unrestricted legacy gifts and new legacy notifications. Community Foundation serving Tyne & Wear and Northumberland Annual report for the year ended 31 March 2024 (continued) Strategic report (continued) Achievements and performance (continued) Goal 5.. bé a shinlng exomple of effective choyilablefoundations accountable to the people it serves Received a unique AAA result in the independent Foundation Practice Rating. Held Staff and board team building events and activities. Recruited to all trustee vacancie5. th)proved demographic data capture. Commissioned an accessibility review of our grant-making process. Fundraising The Community Foundation is registered with the Fundraising Regyulator which is the independent regulator of charitable fundraising. The Board approved a Growth Plall (the Plan) in 2017 which includes the approach we take io fundraising in the organisation which meeis the requirements of the Charity Commission, Fundrai8ing Rcgulalor and Inforniali()n C'omrni8.%ioncr's o￿lce. Almost all income geneTalion activlty is dotte by Foundation statt"directly or un our bvhiilf thTou¥h introduLtiuns madL by (ImbiL%.4¢idDr8 and professional advisors. We also connect to potential donors and partners tI￿ouL￿h networkingv and by raising our profile thiough communications. When and if we enter into commercial participation arrangernents, wc have fonnal agreements in place that deal with risks to the foundation and ensure transparency. We do not.. use direct rniirketing, telephonc, doorslcp or on-8lrcct fundraising. employ for-profil agencies lo rai8c incomc on our behalf. or %hitre inforn]dtion db()uL donoT% or supportcr8 wilh(Jul Lheir cxprcss pcmiission. Some fundrd15ing will continue ti) bc donc for the Foundalion by third partics, for example with our High Sherift funds, or tunds where a donor Wibhe.% ti) rd7Se money from friLnds or fdrnily in rncmory of a loved one, or to support a particular cause. We have developed &Truidelines tor those undertakiD&i suLh acLivities to ensure we, and they, are compliant. The Con]munity Foundation n]aintains records of all complaints received and durinLy the yedr rcceived no complaints on its fi￿draisIllg activities. The Community Foundation reports this information annually to the Fundraising Regulator if requested. Social invcstmcnts (previously shown as programme related investments) Northern Kock F'oundation (NKf,) was involved in the set up of the North E&st Social Investment Fund (NEStF) and tnade loan conunitrnents for 20 years to the primary vehicle - the North East Social Investment Commullity Interest Company (NESIC). As part of the winding up of NRF,, its Board agreed to transfer the Loan Fund of £3m ¢0 the Conununity Fowidation to ensure continuity of the programme, with both sides signing the novation of the Loan Fulld on 12 April 2016. The full value of the novation of £3m was recognised within donations to restricted funds al the time of the novation. Community Foundation serving Tyne & Wear and Northumberland Annllal report for the year ended 31 March 2024 (continued) Stral¢gic report (continued) Financial review Net assets at 31 March 2024 were £103.20m (2023: £96.18m). £95.84m of the assets related to cndowment fi￿dS {2023: £89.23m). The totsl unrealised and Tealised gains ()n invLslTncnls amounted to £7.61m (2023: losses £4.48m). There were new donations to the endowment tunds during the year of £2.08m (2023: £0.87m), and fees and transfers out of endowment of £3.08m (2023: £3.15m). The expendable endowment (charity only) ]% tre¢lted by the TrusteLs a8 long-terni capital to provide income for future grant-making. Further details of pertorniance of subsidiary undertakings are detailed in note 22. The investments were miillaged throughout the year by Cazenove Capital, Rathbone Investmcnl Management, Investec Wealth & Inveslment Management, CCLA Investment Management and RBC Brewin Dolphin. to achieve maximum total returns and provide an agreed amouni annually for grant-making. CCLA InvestmeT]t Mandgcmcnt also manages funds donated to the Community First Trust as required by the match fimding agreernent. There is separate provision for donors who wish tu invest ethically. The Investment Committee monitors the managers, perforniance in relation tu benchmarks and other relevant iT]diccs ai its quarterly rneetings and meets with each of the managers at least annually, more frequently with Rathbone Inveslmcnt Management and Cazenove. During the year a ￿1] review of investment manageTS was completed and Ca7.enove Capital wcre appointed as managers for part of the main fimd with asscls being transferred from Investec Wealth & Investment m(In(￿ement, KBC Brewin Dolphin and sorne fund5. from CCLA. Clear guidelines have been agreid in rclation to asset allocation and these were also reviewcd by the tnvesttnent Committee quarterly. On the full year's perforniance, the main fund delivered a total return average estimate of 9.7 % (net of fees) which is ahead ot the Idrget rcturn of 6V/o plus CPI (9.20/0). The Board were content with perfonnan¢e on the other smaller ￿ndS in light ot'the very di￿]LUlL financial market conditions. Total income and endowmenl for thc year totalled £9.40m {2023.. £5.87m), The main sourccs of income were new donations and investment inLome. Thc main resources expended were for charitable grants of £8.32m net (2023.. £7.77m net). Financial rcvicw - reserves The Statement of financial Activities shows the m()vemcnl in thL year of the Community Foundation's (Group) Unrestricted and Restricted Funds. The year-eT]d balances on the Restricted funds are available in their entirety, less the property, Philanthropy House, for fiAture grdnt-making and other direct charitable expenditure. The Unrestricted Funds balance at 31 March 2024 of £2,535,290 includes £1,635,620 set &8idc for designated fimds wbich are solely for ￿tUre grant-makin& and the balxnce of £899,670 (the Administrative fund) ILSS fixed &ssLls of £23.786, £875,884 is the general reserve available to meet future administration development expenditure. The Board reviewed its reserve levels in March 2024 and dcsignated £68,000 of the generdl reseryes to support running costs dwillg the 2024-25 fman¢ial year. The Board sets a M￿lmuM level of r¢seTves to allow the Community Foundation to operate for up to 12 months if incoTn¢ slreams wer¢ significantly impacted by Tlliwk¢t condilions and a minimum level based on the same scenario but adjustitig some costs during the 12 months and reviews its policy annually. The general reserve, after adjusting for designated costs, amounted to £807,884 which is slightly above the range calculated, minimum level of £360,000 and the maximum £770,000. The Board is confident that reserves and the overall assets of the Community Foundation are sutyicient to continue a going concern. Community Foundation serving Tyne & Wear and Northumberland Annual report for the year ended 31 March 2024 (continued) Strategic report (continued) Plans for future periods In M￿ch 2020 th¢ Board agreed a 10-year vision to s¢e communities thriv¢ across North East bngland, with f¢iimess and gyenerosity changying, lives alld helpingT everyone feel they belong. This m¥dns having a strong and vibrant civil society. So, our ambition is to be the region's most trusted and effective charitsble foundation, supporting smalL local charities and community organisations tIvough more and better philanthTOPy. The Board agreed a i-year strategy to work towards its vision and ambition based on five goals.. To enablc more and better philanthropy To bL grcat at 8UPPOrting ihL TLginll'% %mall, local charitiLs and comTnunity organisations To understand ¢ind act on vitdl issuet> affectingi Lurnmunities To build and sustain the endowment to £100m and beyond To be a shining example of an effective charitable foundation accountable to the people it scrvcs. The targets for the period are below. KEY PERFORMANCE INDICATORS Total endowment value 2020-25 TARGET £IOOm Rolling average annual gifts to endowment Annual gifts to revenue and programme fijnds PerLentaLye ot total gyrants trom endowment funds. £3.Om £2.6m Key priorities for 2024-25 are as follows. Donor cultivation - building on the success of our North East Roots initiative and continuing io Lmgage donors in the region Corporate engagement- developing a more coherent and comprehensive offer to businesses Collective giving - developing and promoting existing funds which help address our goals Managing funds and awarding grants using all the tools in our toolkit Donor onb()arding- bcltcr bridging thc gap bclwccT] fund scl up and activaiion Kn()wledgie, en¥dgemint inflLLL'nLe - publi%hing and priiTn()ling Vitsl Signs reports. running cummunity conversations and exploring opportunitie5 for partnerships with public bodics Potential retro-fitting ot. ottice, rationalising staft capacitylresponsibilities and better using skills. ijnplementing accessibility review fjndingys. continuous improvement in commslsystemsllCT Preparing our next strategy from March 2025 Prineipal risks and uncertainties The Board receives an annual assessment of risk prepared by the executive team and agrees steps to rnanage risk. tn December 2022 the Board reviewed its risk policy for determining, managing and reviewing thc risks to which the Conununity Foundation is exposed. The Board has conunitted to continue to review the risk policy every tILree years. The risk register is reviewed quarterly by the Govemance, Finance and Audit Conunittee, and any significant changes reported to the Board. Every year. the Board receives a rq)ort on risk and approves an updated risk register. io Community Foundation serving Tyne & Wear and Northumberland Annual report for the year ended 31 March 2024 (contlnued) Strategic report (continued) Principal risks and uneertainties (continued) The highest risks identified in the most recent register dated June 2024 were: Losing significant asset value System breach or failure "llle Board reviews controls already in place for mitigating risks and identifies further treaimenl or mollit(iring required to Tnanagc the identified risks. 11)e first risk noted above is linked to the perfonnaDce and drawdown trom the Community Founddtion's endowmcT]t fun(Ls. The Investmeni Committee meets regularly with the investment managyers to di5CUSs and review peTforni¢lT]Le of the funds, whA¢h are invested iii line with the Cornmunity Foundation's Investment Policy. The Board agreed a new Invcstment Policy in March 2023. 'Ihe Board agreed to maintain an annual 6Q/o Wlthdrawal from the main and ethical fimds as part of it8 2020-25 SLraiegy, definAng trAggers that would prompt it to review the withdrawal rate. Inflation is a concern together with uther global issucs and thc Board will keep these under close review. The second risk is in recognition ot the g7eneTal risk ot breach OT failure of %ystems but al.%0 thc overall increased risk faced by all organisations of ¢yber crime, both in the number and the sophistication of allacks. The Comjnunity Foundation regular reviews its protection and other systems and has vulnerability tests carried oul lo hclp miligalc thi.s risk. It has achieved Cyber Essentials + accreditation. Systems are baLkcd up regularly. Sta¢¢ment of Irus¢ees' respon¥ibilitie$ The trustees (who are also direLlI)rs of Communily Foundation serving Tyne & Wear and Northumberliind for the purposes of company law) are resw)nsTble tor prepdring thv TrustttLS' Annual Rcport, the Strategic Report and th¢ f]nancial stai¢m¢nts in accordance with applicable law and regulations. Company law requires the truslees to prepare fmancial statements for ea¢h f￿allela1 year. Undcr that law the trnstees havc prcpared the financial statemerAts in accordance with United Kingdom Accounting Standards, comprising FR8 102 "The Financial Reporting Standard applicable in the UK and RepublAc of Ireland", and applicable law (United Kingdom (ienerally Accepted Accounting Practice). Under company law the trLLslces must not approve the finttnLial statcmLnLs unlLs.s ihcy arc salisfied that they give a true and fair view of the state of aftairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the Lharitablc group for thal pcriod. In preparing these f1nancial stafrments, tbe trustees are required to: select suitable accounting policies and then apply them consistently. observe the methods and principles in the Charities SOIiP: make judgements and eslimates that are reasonable and prudent. state whether applicable UK Accounting Standards comprising FRS102 have been followed, subject to any material departures disclosed and explained in the financial statements. and prepare the fmancial statements on the going concern basis unless it is inappropriate to presutne that the charitable compatLy will continue in business. Community Foundation serving Tyne & Wear and Northumberland Annual report for the year ended 31 March 2024 (continued) Strategic report (continued) Statement of trustees, responsibilities (continucd) The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of ihL chilritdble Lompany and thc group and enable them to ensure that the fjnancial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps f()T thL prevention and dctcction of fraud and other irregularities. The Trustees are responsible for the maintenan¢e and integrity of the charitable company's wcbsite. Legislation in ihe United Kingdom governing the preparation and dissemination of fmancial statements may diffcr from Icgislation in other jurisdictions. ststement as to disclosure to our auditors In so far as the Trustees are aware at the time of approvingF the annuiil report: there is no relevant audit inforn)ation, being intonnation needed by the auditors in connection with preparing their report, of which the gTOUP'S auditors are unaware. and thL ITuslccs, having made enquiries of fellow directors and the group's auditors that they ought to have individually takcn, havc cach taken all steps that he/she is obli¥ed to take as a director in order to make themselves aware ot uny relevant audit infoTmation and t() Lsiabli%h that the auditors are aw1￿¢ of that infornation, Independenl Auditors In dLcurdance with seLlion 485 of ihc Companies Act 2006, a resolution for the re-appoinknent of Azets Audil Services as auditors ot'the charity is lu be pr()p()sed aL thL forthcomiT]g Annual General Meeting. 'n]e Keport of the 'l'rustees and the Strategie Report were approved by the Board of Trustees. Byor ie Board orhouse Chair 18 Septem ber 2024 12 Community Foundation serving Tyne & Wear and Northumberland Independent Auditor's Report to the Members of Community Foundation serving Tyne & Wear and Northumberland We have dudited the financial %laLcments of Conununity Foundation s¢rving Tyne & Wear and Nor1humberliind (thL 'charilablc parent company? and ils subsidiaries (the 'group') for the year ended 31 March 2024, whiLh L(?Tnpri8e thc Consolidated Slatemenl of Financial Activiti¢s. Consolidated Incorne and Expenditure Account, Consolidaled Balance Sheet. Balance Sheet, Consolidated Statement of Cash Tr"lows and Notes to the Financial Slatements, including a summary of significant accounting policies. The fmancial reporting framework that has been applied in theiT preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable ID the UK and Republic of Ireland, and applicable law (United Kingdom Generally Accepted Accounting Practice). In our opinlon the fLnancial statements: give a true and fair view of the state of the group's and parent charity's aftairs as at 31 March 2024 and of the group's Ancoming resources and application of resources, including irs Income and expenditure for the year then ended; have been properly prepared in a¢¢ordan¢e with United Kingdom Generally AcceptLd Accounting Practice; have been prepared in accordance with the requirements of the Companies Act 2006. Basi5 lor opinion We conduclcd our audit in accordance with International Standards on Auditing (UK) {ISAy (UK)) and applicablL law. Our rLsponsibilities under those standards are fiffther described in the Auditor's responsibilities lor ihc audit ofihL financial slalements section of our report. We are independenl ot the &Froup in accordance wiLh ihc cthical rcquircmLnts that are relevant to our audit of the financial statements in the UK, including the FRC'8 Ethical Slandard. and we have fulfill¢d our other ethical responsibilities in accordance with these requirements. We believe thai ihe audit evidence we have obtsined is sufficient and appropriate to provide a basis for our opinion. Concluslons rel#ting to going concerD In auditing the financial statements, we have Concluded that the trustee's use of the going concern basis of accounting in the preparation of the f￿anCIal statements is appropriate. Based on the work we have perfonned, we have not identified any materlal uncertaintiL.s relating to the events or conditions Ihat, individually or collectively, may cast significant doubt on th# charily's ability to continue as a going concern for a period of at least twelve months from when the financial sLttcments are authorised tor issues. Our responsibilities and the re%pi)nsibilities of the lrnsiee with respect to going concern are described in the relevdllt section% ()f thi% rLporL Other information The trustees are respon51ble for the other inforniation. The other infonnation comprises the illfonnation included in the annual report, other than the fJnan¢ial statements and our auditor's report thereon. Our opinion on the f￿anCIal statements does not cover the other infonnation and, except to the extent otherwise explicitly stated in our reporL we do not express any fonn of assurdnce conclusion thereon. l3 Community Foundation serving Tyne & Wear and Northumberland Independent Auditor's Report to the Members of Community Foundation serving Trne & Wear and Northumberland (continued) In connection with our audit of the fmancial statements, our responsibility is to read the other infonnalion an in doingF so. consider whether the other inforniation is materially inconsistent with the fmancial slatements or ()ur knowledge obtained in the audit or othenvise appears to be materially misstated. If we id¥ntify such mdterial inconsistencies or apparent rnaterial rnisstatement4 we are requiTed to determine wholher there is a matcrial misstdtement in the fiT]ancial .%tatcments or a material mi.88tateTnent of thc olhcr infomlation. If, based on thL wi)rk wi hilVL pcrfoTmLd, wc concludL that thcre [8 a maiLrial mi8StalcmLnt of this other infonnation, we arc rcquired li) rLport Ihal facl. We have nothing to report in this regard. Opinion on other matters prescribed by the Companies Act 2006 In our opinion, bagcd on thc work undcrtaken in the course of the audil: the information given in the Strategic Report and Trustees, Report for the financial year for which the flnancial stalcmcnts are prepared is consistent with the fmancial statements. and the Straicgic Report and Trustees, Report have been prepared in accordance with applicable legal requir¢mcnls. Mxtters on which we are required to report by exception In thc lighi ofour knowlcdgc and undcrsianding of the group and thc parcnl charitable cornpany and its cnvironmcnl obiaincd in Ihc coursc of the audil, we have not idenlificd malcTial misstatements in the Strateg7lC Rcport and Ihc Truslc¢8' R¢port. Wc havc nothing io rupon in rcspcct of the following mattcrs wherc Ihc Companics Act 2006 requires us to report lo you if, in our opinion: adcquatc accounting records have not been kept by the parent charitable company, or retums adequate tor our audit havc not becn received from branches not visiled by us; or the parent charitable company fwAancial statements are noi in agreement wilh the accounting records and ertain disclosures of trustees remunerdtion specified by law are not made- or we have not received all the infomiation and explanations we require for our audit. Responsibilities of trustees As expldined morL fully SLI OLLI on pagcs I18nd 12, Ihc IruslcLS arc rLsponsiblL for the preparation of tbe rinancial slalcmcnls and for being satisfied that they give a true and fair view. and for such internal control as the lrnstees determine is necessary to enable th¢ preparation of f￿anCIal stat¢tnenls that are free from mat¢rial misslatement. whether due to fraud or e￿0[. In preparing the fmancial statements, the trustees are responsible for assessing the group's and the parent charitable company's ability to continue &s a going concern. disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so. 14 Community FoundatRon serving Tyne & Wear and Northumberland Independent Auditor's Report to the Members of Community Foundation serving Iyne & Wear and Northumberland (continued) Auditor's responsibilities for the audit of the financial 5ta¢emellts Our objectives are to obtain re&sonable assurance about whether the financial statements as a whole are free from material misstatemenl whether due to fraud or e￿Or. and lo issue an auditor's report thal includes our opinion. Reasonable &ssurance is a high level of assuTance, but is not a guarantee that an audit conducted in a¢¢ordance with ISAS (UK) will always detect a material misstatement when it exists. Mis5talements can arise from traud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to intluence the economic decisions of users taken on the basis of these fmancial statements. Irregularities, including fraud. are instances of non-compliance with laws and regulations. Wc design procedures in line with OUT reswDSTbilitie%, oullincd above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our proccdures are capable of deie¢ting irregularities, including fraud is detailed below: nquiries with management about any known or suspected instanccs of non-compliance with laws and regulations and fraud. Reviewing board minutes. Challenging assumptions and judgements made by management in thLir significant accounting cstimates. Rcview fLnancial statement disclosures and testing7 to supportingi duLurncnlalion to assess compliance with applicable laws and regulations; and Audiling the risk of management ove￿Ide of controls, includingF thr()ugh tcsting journal entries and other adjustments for appropriaieness. Because of the ficld in which the clieni operates, we identified the tollowingy areas as tho8c most likely to have d material impact on the financial statements.. Ileallh and Safety. employrnent Idw (including the Wvrkillg Timv Dircclivty); and coinplianre with the UK Companies Act, and the Cbdrilics Act. Owing to Ihc inherent limitations of an audit, there is an unavoidable risk that some material misstaternenl8 in thc financial statements may not be detected, even though the audit is properly planncd and perfonned in accordancc with the ISAS (UK). for instance, the further removed non-complidllLC is froin the events