The trustees 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 Deed of Trust, 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's objects are:
1. To promote all or any purposes for the benefit of the community in the County of Northumberland which now or hereafter may be deemed by law to be charitable.
2. To promote and organise cooperation in the achievement of the above purposes and to that end to bring together representatives of the statutory authorities and voluntary organisations engaged in the furtherance of the above purposes within the area of benefit.
CAN has a long history of providing effective and valued support to rural communities. CAN's vision is of rural communities in Northumberland that are vibrant, inclusive and sustainable.
Our mission, reviewed in March 2020, is to benefit and help sustain rural communities in Northumberland by:
- Promoting Rural Issues: Providing and supporting a 'rural voice' to influence policy, programmes and action.
- Empowering Communities: Supporting and developing local communities, their key groups and organisations.
- Delivering solutions: Identifying, developing and managing projects to address the needs of individuals.
- Addressing climate change: delivering projects and influencing behaviours to help meet climate action requirements.
In practice we deliver this in a variety of ways. For example:
- By devising and running a number of services of benefit to local rural communities, for example in the fields of fuel poverty, employability and housing
- By providing 'infrastructure' support to village halls/community buildings and Parish/Town Councils across the county
- By continuing to provide a wide range of expert advice, information, encouragement and other forms of support to key community groups
- By supporting networking, co-operation and mutual support between community bodies such as village halls consortia and NALC
- By monitoring and influencing local and national bodies and service-providers to ensure that they respond to the needs and opinions of local communities
- By promoting the take-up by local residents of new opportunities, such as bulk purchase schemes and energy efficiency measures.
- By running training events on themes such as management, licensing, risk management, websites and food safety.
Our Mission has subsequently been reviewed again in 2024/5 with minor adjustments to reflect our continued development and growth.
Public benefit
CAN operates a performance management system which involves periodic researching (and seeking feedback from) our beneficiaries in order to adapt our services and activities to ensure they continue to be relevant, accessible and delivered in an appropriate way.
As a rule, CAN's services are:
- delivered through a variety of media, including e-bulletins, face-to-face contact, posted hard-copy material, emails, CAN website etc
- available in all parts of Northumberland, without prejudice
- open to new, as well as established, groups and organisations as funding permits
- able to draw upon a high level and wide range of expertise, to advantage all our beneficiaries.
CANs trustees review all activities in the light of our constitutional objects, and we are satisfied that CAN continues to operate exclusively for public benefit.
Changes from previous year
To reflect the need to respond positively to the covid pandemic, our previous strategic review and the continually changing financial environment, CAN maintains its active focus on Northumberland's rural communities and has maintained diversity in the amount of funds generated through different routes. This has included, a number of externally funded services and projects, for the benefit of individuals, households and/or community groups covering such topics as energy efficiency, fuel poverty, employability and housing in addition to our traditional core strengths in relation to village halls/community buildings and Parish/Town Councils.
In addition, we have continued to actively seek strong relationships with key partners in order to maximise our effectiveness in achieving our objectives and we have consolidated our capacity in relation to core areas.
CAN has maintained an increase in its overall funding in a time of continuing challenges due to the aftermath of the COVID crisis, the rising cost of living and restricted public sector funds. Despite such significant challenges impacting the charity sector, the rise in overall funding can only be credited to the hard work and dedication all CAN staff and volunteers. The positive results are a strong indicator of the continued high value placed on CAN and its vital services to rural Northumberland, by funders and partners.
CAN’s total income for 2023-2024 increased again to £893,304 The increase is explained by a rise in specific time-limited project funds including those related to the National Lottery Community Fund and a range of energy projects. It also reflects the emergence of new initiatives including the Solid Foundations project (taking the place of the former BBO programme), the Rural Housing Enabling project (RHE) and Volunteering Development project.
The rise in income is attributed to a continued growth in our effective collaborations with a range of key partners and the number of separate funding sources secured. In 2023/24, funds were secured from 16 sources, representing a 33% increase on the number of sources in the previous year. Increasing the diversity of funds secured is a key element of CAN’s financial strategy.
Total payroll costs have risen, directly reflecting the growth of our activities in providing services to the rural community of Northumberland. Despite this increase, the total amount spent on governance costs has reduced.
The increase in payroll costs has been more than outmatched by the additional delivery of services to the rural communities of Northumberland, who, together with the Trustees of CAN, owe a huge debt of gratitude to all the staff and volunteers of CAN for their continued outstanding performance during 2023.
Reserves policy
Community Action Northumberland income is mainly derived from grants and donations, but a growing proportion of our income is derived from trading. These resources are subject to fluctuation, and are time limited depending on the nature of the funder or funding programme.
As part of our strategic planning, we as Directors/Trustees, believe it is important to retain reserves in order to maintain effective resource management and assist with financial viability and long-term sustainability. We also believe this will build the confidence of our beneficiaries, funders, employees and wider stakeholders and help CAN meet expectations of transparency and accountability.
Due to a changing and uncertain funding environment we have established several unrestricted designated funds which includes one which equates to at least 50% of our core annual costs relating to governance, back-office support and development work (excluding projects). We believe this to be an appropriate level of resources necessary to function effectively for a period of 6 months, should financial difficulties occur beyond the control of CAN. These difficulties include unplanned and unforeseen increases in expenditure or decreases in income. That this is a prudent policy is underlined by the circumstances surrounding the pandemic and whilst we, partly by our own efforts and partly by external support, increased our resources during this period, this might not have been the case. Details of these reserves are set out in note 14 to these accounts.
Because our costs and liabilities change over time, the level of each fund will be agreed by the Finance and General Purposes Committee and approved by the Board. As directors/trustees we believe in a continual process of careful financial management and will review this policy annually, taking into consideration any significant changes in the organisation's financial circumstances.
Risk management
CAN takes a comprehensive and systematic approach to risk-management, identifying significant risks under 5 main headings: external and strategic; governance; financial; operational and personnel; and compliance. Procedures are in place to mitigate or otherwise manage the most significant risks identified.
In 2024/25 we will deliver against our vision and mission as set out in the 'Objectives and activities' section above within the changing context of the cost of living crisis, changing public sector funding regimes and other significant external issues. This will focus on:
- Promoting rural issues
- Empowering communities
- Delivering solutions
- Addressing climate change
We will continue to build strong relationships with our key partners and seek to develop activities to address the unmet needs of Northumberland's rural communities.
We will also seek to gradually build our reserves to reflect recent growth in project activities. We will seek to develop strong relationships with the new North East Combined Authority.
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.
Charity constitution
CAN is a charity and a company limited by guarantee which aims to support rural communities in Northumberland that are vibrant, inclusive, and sustainable. CAN is one of 38 members of the ACRE Network (Action with Communities in Rural England), all of which continue to receive support direct from government through the Department for Environment, Food and Rural Affairs (Defra). CAN works across Northumberland and beyond in relation to particular areas of work, such as our support to Parish and Town Councils and community-led housing.
The Board currently has one formal committee: Finance and General Purposes. In February 2018, CAN established Communities CAN (North East LTD) as a trading arm to form a hub for community-led housing development. CAN is the sole member of this company limited by guarantee, which has its own independent board.
Property
CAN owns no premises. Our registered office in Pegswood is occupied on a licence, from the charity Groundwork North-East and Cumbria.
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:
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
People with Significant Control
The company knows or has reasonable cause to believe that there is no registrable person or registrable relevant legal entity in relation to the company.
CAN is made up of over 100 individual or organisational members and managed by 9 directors/trustees. Consequently, no individual has more than 25% of the company’s voting rights so there are no people with significant control who should be registered as required by the Companies Act 2006.
Planning and implementation
CAN's trustees prepare a Business Plan for a 3-year period which is reviewed annually along with an annual budget. Together, these plans set out the roles and activities which CAN staff undertake on behalf of the Board. The Board regularly monitors and reviews CAN's work to ensure that it is of public benefit, and that the Charity Commission's guidelines on public benefit are met. All of CAN's staff are employed directly by CAN.
CAN also contracted with a marketing consultant to support our communication activities and a small number of work coaches at our Rural Employment Hubs From time to time, CAN employs and supports the development of a small number of staff on behalf of other bodies: mostly voluntary organisations which are in their early stages of development, or which do not have the capacity directly to employ and manage their own staff. Currently this relates the Project Officer for Prudhoe Community Partnership and the Coordinator for Communities CAN (North East).
Over the past year, the Board has met once every two months, and it receives and considers reports from staff on the delivery of the Business Plan.
Related parties
CAN is a partnership body, with a range of individuals, statutory and voluntary bodies in its membership. As a 'community development body', CAN provides services to a wide range of local groups and agencies throughout Northumberland, all of which are invited to attend CAN's AGM and can receive our regular news bulletins (CAN e-news). In addition, from time to time CAN convenes and supports a range of forums and networks: for example, in relation to village halls/community buildings and community-led housing.
CAN has established “Communities CAN (North East) Ltd” as a Company limited by guarantee Company Number 11203303, of which it is the sole member.
Volunteers
CAN encourages people to undertake voluntary action in their own communities, in wider voluntary organisations and other settings. CAN itself receives unpaid assistance in several ways.
-The board consists of unpaid individuals who volunteer their time and expertise.
-It benefits from the unpaid advice/assistance of other volunteers, some of whom come from partner organisations
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Community Action Northumberland (the charity) for the year ended 31 March 2024.
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.
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of Association of Chartered Certified Accountants, which is one of the listed bodies.
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
Community Action Northumberland is an incorporated charity incorporated in England and Wales. The registered office is Uniun Building Front Street, Pegswood, Morpeth, Northumberland, NE61 6UF.
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. 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.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
Further explanation of the nature and purpose of each fund is included 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.
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:
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.
We do not depreciate any equipment under the purchase price of £1,000. At present no items over this value are held.
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 corporation tax on its charitable activities
Charitable activities
Charitable activities
Other income
Grant income
Included in other grants is £4,500 (2023: £4,590) from Rural Employment Hubs; £Nil (2023: £1,435) CELL; £2,500 (2023: £2,500) from The Ballinger Trust; £95,976 (2023: £Nil) from UKSPF; £26,600 (2023 :£nil) North of Tyne Combined Authority; £10,471(2023 : £nil) Tees Valley Combined Authority; £5,000 (2023: £Nil) from The Sir James Knott Trust; £3,000 (2023: £Nil) from The Joicey Trust; £25,750 (2023: £Nil) from ACRE.
Other Income
The following amounts are included in other income: 2024 2023
Northumberland Association of Local Councils £30,000 £30,000
Prudhoe Partnership £12,500 £12,500
Haltwhistle Partnership - £14,000
Wingates £3,659 £3,285
Oil CAN £2,887 £3,242
Total £49,046 £63,027
Raising funds
Raising funds
Raising funds
Insurance
Telephone, postage & stationery
Sundry expenses
Central office costs
Office equipment
Fees & subscriptions
IT support
Travel
Project allocation
Meetings and admin costs
Independent examiners fees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
There were no trustees expenses paid from the charity during the year.
The average monthly number of employees during the year was:
Key management remuneration during the year totaled £59,792 (2023 : £58,514)
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Amounts included within other creditors are for liabilities to external organisations.
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 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.
Transfers between funds
The net transfer from restricted to unrestricted funds takes into account the understanding from funders that an agreed and reasonable allocation is spent on necessary support, management and indirect costs
There were no disclosable related party transactions during the year (2023 - none).