Charity registration number 1161643
Company registration number 07385704 (England and Wales)
THE PNE FOUNDATION
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
THE PNE FOUNDATION
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mrs T Moore
Mr NR M Clark
Mr AC Jones
Mr DT Mitchell
Mrs IL Allcroft
Ms C Ingle
Charity number
1161643
Company number
07385704
Registered office
Turners Building
7-15 Pink Lane
Newcastle upon Tyne
Tyne and Wear
NE1 5DW
Independent examiner
Robson Laidler Accountants Limited
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
England
NE2 1TJ
Investment advisors
Scholes & Brown Ltd
Rotterdam House
116 Quayside
Newcastle upon Tyne
NE1 3DY
THE PNE FOUNDATION
CONTENTS
Page
Trustees' report
1 - 2
Independent examiner's report
3
Statement of financial activities
4 - 5
Balance sheet
6
Notes to the financial statements
7 - 12
THE PNE FOUNDATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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).

Objectives and activities

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.

Achievements and performance

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.

Financial review

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.

THE PNE FOUNDATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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.

Structure, governance and management

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:

Mrs T Moore
Mr NR M Clark
Mr AC Jones
Mr DT Mitchell
Mrs IL Allcroft
Ms C Ingle

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.

Mrs T Moore
Trustee
12 August 2024
THE PNE FOUNDATION
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF THE PNE FOUNDATION
- 3 -

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.

Responsibilities and basis of report

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.

Independent examiner's statement

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:

1

accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

2

the financial statements do not accord with those records; or

3

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

4

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.

Nicholas Cunningham FCCA
Robson Laidler Accountants Limited
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
NE2 1TJ
England
Dated: 21 August 2024
THE PNE FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Current financial year
Unrestricted
Restricted
Total
Total
funds
funds
2023
2023
2023
2022
Notes
£
£
£
£
Income from:

Investments

2
15,542
-
15,542
13,155
Expenditure on:

Raising funds

3
6,022
-
6,022
6,063
Charitable activities
4
30,892
300
31,192
41,970
Total resources expended
36,914
300
37,214
48,033
Net gains/(losses) on investments
22,004
-
22,004
(99,362)
Net movement in funds
632
(300)
332
(134,240)
Fund balances at 1 January 2023
799,325
11,429
810,754
944,994
Fund balances at 31 December 2023
799,957
11,129
811,086
810,754

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.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
THE PNE FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Prior financial year
Unrestricted
Restricted
Total
funds
funds
2022
2022
2022
Notes
£
£
£
Income from:

Investments

2
13,155
-
13,155
Expenditure on:

Raising funds

3
6,063
-
6,063
Charitable activities
4
38,990
2,980
41,970
Total resources expended
45,053
2,980
48,033
Net gains/(losses) on investments
(99,362)
-
(99,362)
Net movement in funds
(131,260)
(2,980)
(134,240)
Fund balances at 1 January 2022
930,585
14,409
944,994
Fund balances at 31 December 2022
799,325
11,429
810,754
THE PNE FOUNDATION
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 6 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
10
635,609
805,341
Current assets
Cash at bank and in hand
224,059
24,656
Creditors: amounts falling due within one year
11
48,582
19,243
Net current assets
175,477
5,413
Total assets less current liabilities
811,086
810,754
The funds of the charity
Restricted income funds
12
11,129
11,429
Unrestricted funds
799,957
799,325
811,086
810,754

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 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 year 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 12 August 2024
Mrs T Moore
Trustee
Company registration number 07385704 (England and Wales)
THE PNE FOUNDATION
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
1
Accounting policies
Charity information

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.

1.1
Accounting convention

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.

1.2
Going concern

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.

1.3
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 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.

1.4
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.

1.5
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.

THE PNE FOUNDATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 8 -
1.6
Fixed asset investments

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.

1.7
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.

2
Income from investments
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Income from listed investments
14,326
13,022
Interest receivable
1,216
133
15,542
13,155
3
Expenditure on raising funds
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Investment management
6,022
6,063
THE PNE FOUNDATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
4
Expenditure on charitable activities
Charitable activites
Charitable activites
2023
2022
£
£
Direct costs
Grant funding of activities (see note 5)
27,862
38,508
Share of support and governance costs (see note 6)
Support
1,747
2,052
Governance
1,583
1,410
31,192
41,970
Analysis by fund
Unrestricted funds
30,892
38,990
Restricted funds
300
2,980
31,192
41,970
5
Grants payable

Charitable activities

Charitable activities

2023
2022
£
£
Grants to institutions:
Project North East
27,562
35,528
Brass tacks
300
2,980
27,862
38,508
6
Support costs allocated to activities
2023
2022
£
£
Sundries
49
67
Management recharges
1,698
1,985
Governance costs
1,583
1,410
3,330
3,462
Analysed between:
Charitable activites
3,330
3,462
THE PNE FOUNDATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
7
Trustees

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.

 

8
Employees

The average monthly number of employees during the year was:

2023
2022
Number
Number
Total
-
0
-
0
There were no employees whose annual remuneration was more than £60,000.
9
Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

10
Fixed asset investments
Listed investments
£
Cost or valuation
At 1 January 2023
805,341
Additions
35
Valuation changes
22,004
Disposals
(191,771)
At 31 December 2023
635,609
Carrying amount
At 31 December 2023
635,609
At 31 December 2022
805,341
THE PNE FOUNDATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
11
Creditors: amounts falling due within one year
2023
2022
£
£
Other creditors
1,868
157
Accruals and deferred income
46,714
19,086
48,582
19,243
12
Restricted funds

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.

At 1 January 2023
Resources expended
At 31 December 2023
£
£
£
Brass Tacks
11,429
(300)
11,129
Previous year:
At 1 January 2022
Resources expended
At 31 December 2022
£
£
£
Brass Tacks
14,409
(2,980)
11,429

Brass Tacks

This fund provides small grants to predominantly North Tyneside based organisations that provide activities for children and young people.

13
Unrestricted funds

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.

At 1 January 2023
Incoming resources
Resources expended
Gains and losses
At 31 December 2023
£
£
£
£
£
General funds
799,325
15,542
(36,914)
22,004
799,957
THE PNE FOUNDATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Unrestricted funds
(Continued)
- 12 -
Previous year:
At 1 January 2022
Incoming resources
Resources expended
Gains and losses
At 31 December 2022
£
£
£
£
£
General funds
930,585
13,155
(45,053)
(99,362)
799,325
14
Analysis of net assets between funds
Unrestricted
Restricted
Total
funds
funds
2023
2023
2023
£
£
£
Fund balances at 31 December 2023 are represented by:
Investments
635,609
-
635,609
Current assets/(liabilities)
164,348
11,129
175,477
799,957
11,129
811,086
Unrestricted
Restricted
Total
funds
funds
2022
2022
2022
£
£
£
Fund balances at 31 December 2022 are represented by:
Investments
805,341
-
805,341
Current assets/(liabilities)
(6,016)
11,429
5,413
799,325
11,429
810,754
15
Related party transactions

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.

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