The trustees present their annual report and financial statements for the year ended 31 December 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 charity's Memorandum and Articles, 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).
The objects of the Foundation are:
The prevention and relief of unemployment for the public benefit in such ways as may be thought fit, including assistance to find employment.
To help young people, especially but not exclusively through leisure time activities, so as to develop their capabilities that they may grow to full maturity as individuals and members of society, in particular by providing grants of financial assistance to organisations established to help young people.
Over the next 10 years the Foundation's strategy is to focus primarily on increasing access to enterprise for young people in the North East of England; through the provision of funding for projects and activities that support young people to consider self-employment as a realistic career option and develop sustainable businesses.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
In 2023 the Trustees continued to provide support to enterprising young people through the PNE Pioneers project, with an investment of £25,560 into business support and networking activities, and one small grant of just under £500 that was made through the Pioneers grants programme that supports young, sustainable entrepreneurs to enable them to overcome barriers to business. PNE Pioneers are all aged 18-30 and have aspirations to change the world through their business ideas and practices which align with the United Nation’s Sustainable Development Goals – businesses cover a range of areas including sustainable products, social impact services and environmental solutions, all tackling social, economic or environmental challenges. Pioneers are given the opportunity to increase their confidence through networking and collaborating, develop their business skills, access a small grant and promote their business through a shared stall, with assisted business support, at the local Ouseburn community market which operates six times each year.
During the year, the Trustees also made a £12,000 investment to support the continuation of PNEs frontline enterprise services for those facing the highest barriers to enterprise following a gap in services created by the delays in the UK Shared Prosperity Fund coming on stream to fill the gap left by the cessation of EU funding. This funding enabled support services to be delivered to people experiencing barriers through low confidence, poor numeracy skills, neurodiversity, caring responsibilities, disability or lack of opportunity due to family or financial circumstances.
The Trust’s Funds remain invested in a low-risk portfolio with a view to funding additional enterprise activities in the future, the fund growth has been inconsistent in the current environment with funds increasing by £22,000 in the year. We can report however that we are still in profit from commencement of the investment.
In the year, charitable activities costs totalled £31,192
The Foundation ended the year with reserves of £811,086 (2022: £810,754) of which £799,957(2022: £799,325) were unrestricted. The trustees anticipate that this will enable it to continue its activities over at least a 10 year horizon.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
Governing document
The PNE Foundation is a company limited by guarantee, governed by its Articles of Association, as amended on 27 April 2015.
The company was incorporated on 23 September 2010 (registered number 07385704) and was registered with the Charity Commission on 13 May 2015.
There are currently six members, each of whom agrees to contribute £10 in the event of the charitable company winding up.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Recruitment and appointment of new trustees
The existing board of trustees are authorised to appoint new trustees to fill vacancies arising or to strengthen the governing team.
Organisational structure
The trustees meet at least four times a year to review progress and to agree future plans. One of the trustees is also an executive director of Project North East and deals with any day to day matters arising; personnel from Project North East also maintain the accounting records of the Foundation.
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of The PNE Foundation (the charity) for the year ended 31 December 2023.
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Investments
Raising funds
The statement of financial activities includes all gains and losses recognised in the year.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Investments
Raising funds
The PNE Foundation is an incorporated charity incorporated in England and Wales. The registered office is Turners Building, 7-15 Pink Lane, Newcastle upon Tyne, Tyne and Wear, NE1 5DW.
The financial statements have been prepared in accordance with the charity's governing document, 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 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 the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
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 or grantors 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.
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.
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.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
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.
Charitable activities
Charitable activities
Trustees' remuneration and benefits
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 December 2023 nor for the year ended 31 December 2022.
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
Brass Tacks
This fund provides small grants to predominantly North Tyneside based organisations that provide activities for children and young people.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
Included in other creditors at 31 December 2023 is an amount of £1,868 (2022: £157) due to Project North East, a company which is under common control.
Included in grants payable is an amount of £27,562 (2022: £35,528) paid to Project North East, a company under common control.
Management charges of £1,698 (2022 : £1,985) has been paid to Project North East, a company under common control.