Charity registration number 1083301
Company registration number 03648835 (England and Wales)
NORTH ORMESBY NEIGHBOURHOOD DEVELOPMENT TRUST LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 JULY 2023
NORTH ORMESBY NEIGHBOURHOOD DEVELOPMENT TRUST LIMITED
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mrs A E Bayley
Mrs P E Smith
Mrs J Holdaway
Mrs M Robson
Charity number
1083301
Company number
03648835
Registered office
8 Kings Road
North Ormesby
Middlesbrough
TS3 6NF
Accountants
Allen Sykes Limited
5 Henson Close
South Church Enterprise Park
Bishop Auckland
Co Durham
DL14 6WA
NORTH ORMESBY NEIGHBOURHOOD DEVELOPMENT TRUST LIMITED
CONTENTS
Page
Trustees' report
1 - 2
Accountants' report
3
Statement of financial activities
4
Statement of financial position
5
Notes to the financial statements
6 - 13
NORTH ORMESBY NEIGHBOURHOOD DEVELOPMENT TRUST LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE PERIOD ENDED 26 JULY 2023
- 1 -

The trustees, who are also the directors for the purposes of company law, present their annual report and financial statements for the period ended 26 July 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The objects are to promote any charitable purpose for the benefit of the inhabitants of North Ormesby and its environs, to relieve poverty, advance education and provide or assist in the provision of facilities for recreation or leisure time occupation with the object of improving the conditions of life for local residents. We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning.

Achievements and performance

Due to a lack of funding the charity has not undertaken any activities in the current period. During the period the trustees made the difficult decision to close the charity and it ceased operating on 26 June 2023.

Financial review

Prior to the cessation of operations the charity generated a deficit of £15,195 during the period. On 26 June 2023 the remaining assets of the charity with a total value of £299,325 were transferred to Community Ventures (Middlesbrough) Limited, a charitable company with similar objects to North Ormesby Neighbourhood Development Trust Limited.

Structure, governance and management

The charity was set up by a group of North Ormesby residents and other community members who formed a regeneration partnership following consultations with Community Future Workshops and Community Appraisals.

 

The organisation was formally incorporated as a company limited by guarantee on 13 October 1998 and as a registered charity on 5 January 2001 and a development trust on 10 November 2000. The memorandum and articles of association were both amended by special resolutions dated 23 October 2000 and 27 June 2006.

The trustees, who are also the directors for the purpose of company law, and who served during the period and up to the date of signature of the financial statements were:

Mrs A E Bayley
Mrs P E Smith
Mrs J Holdaway
Mrs M Robson

The directors of the company are also charity trustees for the purpose of charity law and under the company's articles are known as members of the management committee.

 

The company is run by a management committee (board of directors) all of whom meet on a monthly basis.

 

Interested parties are invited to be ex-gratia members on the management committee. If after attending the meetings they continue to be interested then they can be appointed trustees by the board. The necessary forms will be sent to Companies House and the new trustees will be asked to sign a "conflict of interest policy" to acknowledge receipt of the confidentiality agreement and code of conduct. All training is provided as and when required.

 

No paid employee or person in receipt of fees or any other remuneration from the charity may be a member of the management committee. However, any member, officer or servant of the charity will be entitled to be paid for any work done for the charity.

NORTH ORMESBY NEIGHBOURHOOD DEVELOPMENT TRUST LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE PERIOD ENDED 26 JULY 2023
- 2 -

Organisational Structure

 

The trustees are responsible for the strategic direction of the charity. The charity cannot currently afford a paid manager and so the trustees currently also administer the charity on a day to day basis.

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The trustees' report was approved by the Board of Trustees.

Mrs A E Bayley
Trustee
20 October 2023
NORTH ORMESBY NEIGHBOURHOOD DEVELOPMENT TRUST LIMITED
CHARTERED ACCOUNTANTS' REPORT TO THE TRUSTEES ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF NORTH ORMESBY NEIGHBOURHOOD DEVELOPMENT TRUST LIMITED FOR THE PERIOD ENDED 26 JULY 2023
- 3 -

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of North Ormesby Neighbourhood Development Trust Limited for the period ended 26 July 2023, which comprise the statement of financial activities and the related notes from the charity’s accounting records and from information and explanations you have given us.

 

As a practising member firm of the Institute of Chartered Accountants in England and Wales, we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation

This report is made to the charity's trustees, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of North Ormesby Neighbourhood Development Trust Limited and state those matters that we have agreed to state to the charity's trustees, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than North Ormesby Neighbourhood Development Trust Limited and the charity's trustees as a body, for our work or for this report.

It is your duty to ensure that North Ormesby Neighbourhood Development Trust Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and deficit of North Ormesby Neighbourhood Development Trust Limited. You consider that North Ormesby Neighbourhood Development Trust Limited is exempt from the statutory audit requirement for the period, and is not required to obtain an independent examiner's report.

We have not been instructed to carry out an audit or a review of the financial statements of North Ormesby Neighbourhood Development Trust Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Allen Sykes Limited
1 November 2023
Chartered Accountants
5 Henson Close
South Church Enterprise Park
Bishop Auckland
Co Durham
DL14 6WA
NORTH ORMESBY NEIGHBOURHOOD DEVELOPMENT TRUST LIMITED
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE PERIOD ENDED 26 JULY 2023
- 4 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2023
2023
2023
2022
2022
2022
Notes
£
£
£
£
£
£
Income and endowments from:
Donations and legacies
4
-
-
-
200
-
200

Salary recharges

-
-
-
45,103
-
45,103
Other income
5
500
-
500
-
-
-
Total income
500
-
500
45,303
-
45,303
Expenditure on:
Charitable activities
6
15,695
-
15,695
71,471
-
71,471

Assets transferred on cessation of operations

217,329
81,996
299,325
-
-
-
Other
11
-
-
-
6,102
-
6,102
Total expenditure
233,024
81,996
315,020
77,573
-
77,573
Net expenditure for the period/
Net movement in funds
(232,524)
(81,996)
(314,520)
(32,270)
-
(32,270)
Fund balances at 1 October 2022
232,524
81,996
314,520
264,794
81,996
346,790
Fund balances at 26 July 2023
-
-
-
0
232,524
81,996
314,520

The statement of financial activities includes all gains and losses recognised in the period.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
NORTH ORMESBY NEIGHBOURHOOD DEVELOPMENT TRUST LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
26 JULY 2023
26 July 2023
- 5 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
-
550
Investment properties
13
-
298,650
-
299,200
Current assets
Cash at bank and in hand
2,046
17,020
Creditors: amounts falling due within one year
15
(2,046)
(1,700)
Net current assets
-
15,320
Total assets less current liabilities
-
314,520
Income funds
Restricted funds
16
-
81,996
Unrestricted funds
Designated funds
17
-
216,654
General unrestricted funds
-
15,870
-
232,524
-
0
314,520

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the period ended 26 July 2023.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476.

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

The financial statements were approved by the Trustees on 20 October 2023
Mrs A E Bayley
Trustee
Company registration number 03648835
NORTH ORMESBY NEIGHBOURHOOD DEVELOPMENT TRUST LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 JULY 2023
- 6 -
1
Accounting policies
Charity information

North Ormesby Neighbourhood Development Trust Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 8 Kings Road, North Ormesby, Middlesbrough, TS3 6NF.

 

The company has ceased operations and is in the process of being wound up.

1.1
Reporting period

The reporting period is the period ended 26 July 2023. However, the comparative information presented in the financial statements relates to the year ended 30 September 2022 and is therefore not entirely comparable.

1.2
Accounting convention

The financial statements have been prepared in accordance with the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

 

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

 

The charity has prepared accounts to 26 July 2023. The charity ceased operations on 26 June 2023 and its investment property was legally transferred on 26 July 2023.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.

1.3
Going concern

These financial statements are not prepared on the going concern basis. The charity ceased operations on 26 June 2023.

1.4
Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

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

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.5
Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

NORTH ORMESBY NEIGHBOURHOOD DEVELOPMENT TRUST LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 JULY 2023
1
Accounting policies
(Continued)
- 7 -
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
1.6
Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

 

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Equipment
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.8
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.9
Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.10
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

NORTH ORMESBY NEIGHBOURHOOD DEVELOPMENT TRUST LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 JULY 2023
1
Accounting policies
(Continued)
- 8 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.12
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2
Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Limited by guarantee

The charity is a company limited by guarantee, there being no issued share capital, and as such is not under the direct control of any individual but by the board of directors as a whole. At 26 July 2023 there were 4 members, each of whom had undertaken to contribute an amount not exceeding £1 in the event of a winding up.

NORTH ORMESBY NEIGHBOURHOOD DEVELOPMENT TRUST LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 JULY 2023
- 9 -
4
Donations and legacies
Total
Unrestricted
funds
2023
2022
£
£
Donations and gifts
-
200
5
Other income
Unrestricted
Total
funds
2023
2022
£
£
Other income
500
-
6
Charitable activities

Neighbourhood Development

Neighbourhood Development

2023
2022
£
£
Share of support costs (see note 7)
177
52,602
Share of governance costs (see note 7)
15,518
18,869
15,695
71,471
NORTH ORMESBY NEIGHBOURHOOD DEVELOPMENT TRUST LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 JULY 2023
- 10 -
7
Support costs
Support costs
Governance costs
2023
Support costs
Governance costs
2022
£
£
£
£
£
£
Staff costs
-
-
-
45,103
-
45,103

Premises costs

-
-
-
6,422
-
6,422

Office costs

-
-
-
153
-
153

Other costs

74
-
74
740
-
740

Depreciation

103
-
103
184
-
184

Governance costs

-
1,800
1,800
-
1,200
1,200

Consultancy

-
13,708
13,708
-
17,669
17,669

Other governance costs

-
10
10
-
-
-
177
15,518
15,695
52,602
18,869
71,471
Analysed between
Charitable activities
177
15,518
15,695
52,602
18,869
71,471
8
Net movement in funds
2023
2022
£
£
Net movement in funds is stated after charging/(crediting)
Depreciation of owned tangible fixed assets
103
184
9
Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the period.
10
Employees

The average monthly number of employees during the period was:

2023
2022
Number
Number
-
0
2
Employment costs
2023
2022
£
£
Wages and salaries
-
24,830
Social security costs
-
175
Other pension costs
-
98
Redundancy costs
-
20,000
-
45,103
NORTH ORMESBY NEIGHBOURHOOD DEVELOPMENT TRUST LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 JULY 2023
10
Employees
(Continued)
- 11 -
There were no employees whose annual remuneration was more than £60,000.
11
Other
Total
Unrestricted
funds
£
2023
2022
Debt written off
-
6,102

In the previous year the charity wrote off the amount owed from its subsidiary company, North Ormesby Development Company Limited, at the year end of £6,102 as it was not believed to be recoverable given that North Ormesby Development Company Limited is in liquidation.

12
Tangible fixed assets
Equipment
£
Cost
At 1 October 2022
19,520
Disposals
(19,520)
At 26 July 2023
-
Depreciation and impairment
At 1 October 2022
18,970
Depreciation charged in the period
103
Eliminated in respect of disposals
(19,073)
At 26 July 2023
-
Carrying amount
At 26 July 2023
-
At 30 September 2022
550

On 26 June 2023 the company transferred its assets to Community Ventures (Middlesbrough) Limited, a charitable company with similar objects.

13
Investment property
2023
£
Fair value
At 1 October 2022
298,650
Disposals
(298,650)
At 26 July 2023
-
NORTH ORMESBY NEIGHBOURHOOD DEVELOPMENT TRUST LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 JULY 2023
13
Investment property
(Continued)
- 12 -

A decision was made by the trustees to transfer the properties held by the company to Community Ventures (Middlesbrough) Limited, a charitable company with similar objects to North Ormesby Neighbourhood Development Trust Limited, on 26 June 2023. The properties were legally transferred to Community Ventures (Middlesbrough) Limited on 26 July 2023.

14
Investments

The charity holds 100% of the ordinary share capital of North Ormesby Development Company Limited. The investment in North Ormesby Development Company Limited has been written down to zero in a previous period as its value is believed to be impaired given that the subsidiary company is in liquidation.

15
Creditors: amounts falling due within one year
2023
2022
£
£
Other creditors
228
500
Accruals and deferred income
1,818
1,200
2,046
1,700
16
Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
Movement in funds
Balance at
1 October 2021
Incoming resources
Balance at
1 October 2022
Resources expended
Balance at
26 July 2023
£
£
£
£
£
Big Local
81,996
-
81,996
(81,996)
-

Purpose of restricted funds

 

Big Local Property - To fund the purchase of housing.

NORTH ORMESBY NEIGHBOURHOOD DEVELOPMENT TRUST LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 JULY 2023
- 13 -
17
Designated funds
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
Balance at
1 October 2021
Transfers
Balance at
1 October 2022
Resources expended
Balance at
26 July 2023
£
£
£
£
£
Fair value reserve
216,654
-
216,654
(216,654)
-
Designated fund
19,825
(19,825)
-
-
-
236,479
(19,825)
216,654
(216,654)
-
18
Analysis of net assets between funds
Unrestricted funds
Restricted funds
Total
Unrestricted funds
Restricted funds
Total
2023
2023
2023
2022
2022
2022
£
£
£
£
£
£
Fund balances at 26 July 2023 are represented by:
Tangible assets
-
-
-
550
-
550
Investment properties
-
-
-
216,654
81,996
298,650
Current assets/(liabilities)
-
-
-
15,320
-
15,320
-
-
-
232,524
81,996
314,520
19
Related party transactions

Mrs A Bayley & Mrs P E Smith, trustees, are also trustees of Community Ventures (Middlesbrough) Limited, a charitable company. On 26 June 2023 the company transferred its assets to Community Ventures (Middlesbrough) Limited as the company had ceased operations.

 

The value of the assets transferred is as follows:

Tangible Assets -         £447

Investment Properties -    £298,650

Cash -             £228

Total            £299,325

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