The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their annual report and financial statements for the year ended 31 March 2024.
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 governing document, 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 objectives of the Charity are set out within the Memorandum of Association which are:
-To develop the capacity of the socially and economically disadvantaged members of the community in such a way that they are better able to identify and help meet their needs and to participate fully in society
-The relief of unemployment amongst members of the community in such ways as may be thought fit, including assistance to find employment
-To provide or assist in the provision of facilities in the interests of social welfare for recreation or other such leisure time occupations by members of the community who have need of such facilities by reason of their youth, age, infirmity or disability, financial hardship or social circumstances with the object of improving their condition of life, and
-To promote the good health and well-being of all members of the community.
Public benefit
All our activities are undertaken for the benefit of our local community and the trustees continuously consider the Charity Commission advice on public benefit. All our activities are about encouraging health, welfare and recreation to those who are disadvantaged in some way and those of restricted means. Access to our facilities and services is either at nil or low cost to ensure the widest of participation by members of our community.
Charitable Activities
"Thank you very much for your help, we didn't even expect it. You've done a lot for our daughter, now she can study calmly and not be nervous about school. We are very grateful for you for this help"
“I am slowly settling into my new home. It is very peaceful; I have a lovely view and see squirrels and lots of birds daily. Most importantly of all, Tiny the cat loves lying on the balcony in the sunshine. If Tiny is happy then so am I. Thanks so much for all your support – I am looking forward to a new start for me and my son.”
“You have been there for me through thick and thin, always happy to lend an ear and to help where you could. The benefit of this is I don’t go to the doctors for anything other than physical problems and medications as needed.
This is a truly wonderful service which I cannot praise enough.”
Edberts House is all about people, and building happier, healthier, friendlier communities, and we have been delighted over the past year to have been able to support more people than ever before, receiving lots of positive feedback.
Our charitable activities are delivered by three teams, who work in an integrated way to support our local communities: -
Community Linking Project (Social Prescribing): Gateshead Primary Care patients supported around the non-clinical issues that are affecting their health and well being
Health Equity: Proactively creating solutions to health inequalities particularly focussing on areas of high statistical deprivation or on groups of people who experience health inequalities
Community Development and Engagement (Community Houses): our four community houses are run by steering groups of local people, and offer lots of fun activities, as well as volunteering and training opportunities, access to surplus food, advice and guidance
Throughout the financial year, we have followed three priorities to provide the bases of continuous improvement in delivering our aims and objectives. These are: -
Data and Quality
Financial sustainability
Staff Wellbeing
Data and Quality
Edberts House chose data and quality as one of the key areas of strategic focus in the financial year as our growth required us to take more meaningful measures of our impact on the communities and individuals we serve. During the financial year, a new role within the organisation was created, that of Executive Assistant and Business Manager. One of the key tasks of this role was to
“Identify gaps and quality improvement opportunities in internal processes and systems and create streamlined solutions (IT and human based) to improve operational efficiency, impact evaluation, and monitoring.”
The post was filled by an internal promotion and has produced significant and welcome qualitative and quantitative improvements in management’s monitoring and understanding of key operational outputs and outcomes.
In the Community Linking Project, anonymised data has been uploaded from patient records to create a tool to monitor the number of patient referrals and the issues that those referrals encompass. Figure 1 is an example of an extract from a regular report to the Board, which provides a snapshot of the caseload carried by our staff as well as highlighting the health determinants which the referrals are bringing forward.
Financial Position
The Charity’s financial results for the year are shown in the Statement of Financial Activities (SOFA). Income for the year totalled £1,655,973 (2023: £1,572,252). Expenditure was £1,643,297 (2023: £1,499,627). The recorded surplus for the year is £12,676 (2023: £72,625).
At the end of the financial year, cash and bank balances totalled £661,576 (2023: £525,788).
Reserves Policy
Free reserves, which represent general unrestricted reserves not used for fixed assets, rose to £459,909 from £434,221 at the end of the preceding financial year. The trustees periodically review the Free Reserves Policy which, for now, remains having a rolling target of cash and net current assets equivalent to the next subsequent three months’ worth of unavoidable costs plus the statutory redundancy liability for employees at the end of the three months. Based on the budget for the financial year ending 31st March 2025, the Free Reserve Target at 31st March 2025 is £456,000.
Governing document
The Charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
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
Trustees are appointed by the existing board of trustees and confirmed at the annual general meeting of the Charity. Trustees are appointed for a maximum of three years. Retiring trustees are eligible to be reappointed by the remaining trustees if they agree.
New trustees meet with the Chief Executive Officer to brief them on:
their legal obligations under charity and company law
the Charity Commission guidance on public benefit, and
inform them of the content of the Memorandum and Articles of Association, the committees and decision-making processes, the business plan and recent financial performance of the Charity.
New trustees also meet key employees and other trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.
Organisational structure
The board of trustees administers the Charity. The board normally meets bi-monthly and sub-committees of the board can meet at shorter notice to consider specific matters for later reporting to the board. A Chief Executive Officer is appointed by the trustees to manage the day-to-day operations of the charity. To facilitate effective operations, the Chief Executive Officer has delegated authority, within terms of delegation approved by the trustees, for operational matters including finance, employment and operational activity.
Key management remuneration
Key management remuneration is disclosed in the notes to the accounts.
Related parties
None of the trustees receive remuneration or other benefit from their work with the Charity. Any connection between a trustee or senior manager with an external party must be disclosed to the full board of trustees. In the current year no such related party transactions were reported.
Risk management
The trustees have a risk management strategy which comprises:
- an annual review of the principal risks and uncertainties that the charity faces;
- the establishment of policies, systems and procedures to mitigate those risks identified in the annual review; and
- the implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.
The key risk continues to be financial sustainability. During the year, the trustees faced uncertainty that the funding of what amounted to two-thirds of the workforce would continue into the new financial year. The potential impact of the risk was major, but with continual monitoring and analysis by management, we were able to form the view that the likelihood of the worst-case scenario was becoming increasingly remote. That allowed the trustees to put at risk part of the free reserves to allow more time for the funding issues to be resolved. The trustees note with satisfaction that this was an occasion where the reserves were put to the use for which such a reserve was designed, and the strategy proved to be successful.
The trustees review the Free Reserves Policy and status each quarter with the presentation of management information and revised financial forecasts. In doing so, the trustees recognise the information flows from the efforts of the dedicated operating staff who face difficult challenges daily with kindness, consideration and professionalism, and the considerable contribution of the very capable team of management and support at the centre of the Charity.
Statement of trustees' responsibilities
The trustees, who are also the directors of Edbert's House for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees' report was approved by the Board of Trustees.
Opinion
We have audited the financial statements of Edbert's House (the ‘charity’) for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and
the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit; or
the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as 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 charitable company or to cease operations, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
The risk of material misstatement due to error or fraud has been assessed in conjunction with how internal controls may mitigate any such risk. These controls are reviewed as part of the audit be performing systems walkthroughs to ensure they are operating effectively. Other substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team;
obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework, in which the company operates and how the company complies with that legal and regulatory framework
inquired with management and those charged with governance about their own identification and assessment of the risks of irregularities, including any know actual, suspected or alleged instances of fraud
discussed with management and those charged with governance any non-compliance with laws and regulations and how fraud might occur including assessments of how and where the financial statements may be susceptible to fraud.
The risk of management override of controls was also considered an area of potential misstatement due to fraud. Audit procedures performed included testing of manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Edbert's House is a private company limited by guarantee incorporated in England and Wales. The registered office is 17- 19 St. Edmund's Drive, Gateshead, Tyne and Wear, NE10 9AE, England.
The financial statements have been prepared in accordance with the charity's governing document, 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 charity is a Public Benefit Entity as defined by FRS 102.
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. 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.
All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:
- Voluntary income received by way of grants, donations and gifts is included in full in the Statement of Financial Activities when receivable. Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.
- Incoming resources from grants, where related to performance and specific deliverables, are accounted for as the charity earns the right to consideration by its performance.
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
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:
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).
Stock are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items.
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.
The charity is exempt from tax on income and gains to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Grants received
Other unrestricted grants include:
NHS England - £5,000 (2023: £5,000)
Friend of Felling Park - £nil (2023 : £350)
Gateshead Central Library - £nil (2023 : £145)
Groundwork UK - £nil (2023 : £500)
Locality - £nil (2023 : £1,600)
Newcastle University - £nil (2023 : £175)
Other restricted grants include:
Virgin Community Anchor Fund - £nil (2023: £18,000)
Mental Health Community Fund - £9,984 (2023 : £nil)
Baur Radio Cash for Kids - £nil (2023 : £200)
Blue Stone Collaborative - £nil (2023 : £5,000)
Community Foundation - John & Barbara Sadler and Jeanette Henderson Fund - £1,150 (2023 : £1,000)
RISE NE - £4,608 (2023 :: £4,608)
Earned income
Group work costs
Insurance
Utilities
Project costs
Recruitment and training
Volunteer expenses
Repairs and maintenance
Partner costs
The average monthly number of employees during the year was:
The cost of remunerating key management including all payroll taxes was £62,985 (2023: £50,070).
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Included in accruals and deferred income is £32,801 (2023:£28,095) in respect of deferred grants.
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
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.
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.
The purposes of the restricted funds are as follows:-
Peoples Health Trust - Local Conversations
A long term project for community development and engagement on the Old Fold and Nest Estates in Felling, Gateshead
The National Lottery Community Fund
A long term fund to support Thrive in Beacon Lough East project.
Primary Care Networks
Payments under Service Level Agreements for the development and provision of social prescribing services to GP Practices throughout the four of the five Primary Care Networks of Gateshead.
Other restricted funds
Represents sundry small grants for specific purposes, including money for cycling initiatives, sports equipment for youth club and contributions towards running costs and chief executives costs..
Pea Green Boat Foundation
A Community Foundations sourced fund to be applied to the cost of employing a youth and community worker at Beacon Lough East.
Ann Cleeves Foundation
A partnership with Gateshead Central Library to promote reading and literacy.
Gateshead Council - Thrive in Beacon Lough East
Contributions from Gateshead Council towards the cost of welfare assistance in Beacon Lough East, as well as the running costs of the local hub.
Gateshead Council Health Equity and Highfield House
Funding originally from NHS Newcastle Gateshead CCG, routed through Gateshead Public Health, to support the development of the Health Equity and Highfield House Projects.
Gateshead Council Warm Spaces Pattinson House
Funding to provide warm spaces in the four community hubs for residents during winter of 2022/23
NIHR ARC NENC - NIHR Applied Research Collaborative, North East & North Cumbria
Funding for a Research Project under the ARC Programme centred on the social and health impacts of community development work at Beacon Lough East.
RISE North East
A grant under the Sport England Together Fund, funding the "Families Finding Freedom" project run by the Health Equity.
Mental Health Community Fund
A programme to deliver a dementia network for Gateshead & specific activities for residents in inner west and east PCN localities who have/are awaiting a dementia diagnosis.
Gateshead Council - Sundew Project
A project to develop a new community hub building on the Beacon Lough East estate.
UK Shared Prosperity Fund - People & Skills - Work for Health
An intensive support service for Gateshead residents who are economically inactive, working in partnership with Primary Care and Gateshead Learning Skills. Funded by the UK Government.
Peoples Health Trust - Homes for Health
The Homes for Health pilot programme explores ways to improve housing conditions for private and/or social rental tenants that will ultimately improve tenant's health, e.g. through changes in policy and/or practice as directed by the people most affected.
People's Health Trust - Strategic Partnership Funding Programme
A programme to increase residents' voice and awareness of how health inequalities are affecting them in terms of decision making, leading to changes in policies and practices to reduce health inequalities and more equitable health outcomes.
Community Foundation Kellett Fund
A project to increase the active involvement of over 50's in the activities and events of the Edberts community hubs.
Family Hub - Felling and Pelaw & Highfield and Chopwell - Gateshead Council
A project to fund additional resources for Edberts House to be part of a Family Hub support network to deliver the core objectives of the Council's Family Hub and Start for Life Programme.
There were no disclosable related party transactions during the year (2023 - none).
The charity had no material debt during the year.