The trustees are pleased to present their annual directors' report with the unaudited financial statements of the charity for the year ended 31 March 2024, which are also prepared to meet the requirement of a directors' report and accounts for Companies Act purposes.
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their annual accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
St Martin's Centre was completed in 2006 and is a large, bright space consisting of four multipurpose rooms, a coffee shop, a kitchen, nursery and a church. Situated on the border of Byker and Walker in Newcastle upon Tyne, the centre provides a facility which is used by all sections of this community as a safe meeting and learning place.
Objectives and aims
The objects as set in the Governing Document are:
- to promote the physical, intellectual and social development of young children, particularly those who are disadvantaged, to ensure that they are ready to flourish when they go to school;
- to promote the benefit of the inhabitants of the City of Newcastle upon Tyne, and in particular the East End of that City (the area of benefit) by associating together the local inhabitants and the local authorities, voluntary and other organisations in a common effort to advance education and to provide facilities in the interests of social welfare for recreation and leisure time occupation with the object of improving the conditions of life of the said inhabitants;
- to advance the Christian religion;
- to establish or secure the establishment of a Community Centre and to manage and to maintain the same and to do all such things as are usually carried out in such a centre in furtherance of these aims.
The Charity fulfils these objects by:
- The delivery of children's services specifically for the local community in liaison with partners, including Children and Families Newcastle East, through which the Charity seeks to provide opportunities for personal and social development of children and their families to address issues that affect their lives and maximise opportunities for children;
- The provision of quality childcare in St Martin's Centre Nursery, providing term time day care for local children aged between two and five;
- Providing volunteering and training opportunities, principally in the coffee shop and nursery, to help local people move closer to employment, increase their skill set and confidence levels.
- Delivering a wide timetable of activities for older people, providing a welcoming environment where people feel supported and new friendships are made.
-The provision of outreach support to those who are most vulnerable in out community,and the provision of food parcels for families and individuals in their time of need.
- Working in a wide number of partnerships, including statutory bodies and other voluntary sector organisations, and in consultation with the local community to provide facilities and activities to increase awareness and opportunities for residents of all ages.
-St Martin's Centre incorporates St Martin's Church and the centre works in partnership with the church, although the charity does not promote any religion and the centre is welcoming to people from all faiths or none.
-In addition to delivering the Charity's own activities and services, space within the centre is also available to hire by local organisations, thereby maximising the use of the space and providing the best possible facilities for local residents. The Charity aims to include services and activities for all age ranges, cultures, circumstances and abilities.
The mission of St Martin's Centre Partnership is to work with local people to live happy, healthy and safe lives.
Significant activities
The trustees approved a revised business plan, which outlined the programme of activities and development areas for the year. This focused mainly on the continued support for the community during the ongoing cost-of-living crisis and the development and adaptation of projects to respond to the needs of our community. These are highlighted in more detail below:
Children and families
Following the ‘outstanding’ judgement in July 2022, St Martin’s Centre Nursery has worked hard to maintain the same level of service, maximising the opportunity for children to reach their potential and be in the best possible position to start school. The number of children with special educational needs continues to be high compared to pre-pandemic levels and we employ a SENCO Leader and a specialist SEN Early Years Practitioner to provide one-to-one focused activities with the children in the nursery and ensure each child can access the maximum amount of support available during their time with us as well as providing support to the families. Daily attendance at the nursery is good, with an average attendance of 78% for the year.
The funding for our work with young children in the centre came to an end; however in recognition of the need of this provision, we have continued to offer a ‘Stay and Play’ session for parents with young children funded from our reserves. This has been well attended during the year, with an average of 32 each session.
Volunteering
Volunteers receive a full induction and training, relevant to their role in the centre. Opportunities are available in the coffee shop, nursery, older people’s groups and young children’s activities. We are a small staff team and recognise that without volunteers we would not be able to offer the wide range of services and activities that we do. We also understand the beneficial impact volunteering has on the volunteers themselves, with improved confidence, feelings of wellbeing and skills gained. An amazing 993 hours (2023:582 hours) were donated by volunteers in the year, equivalent to 0.5 FTE post.
Older People and Befriending and Wellbeing Project
We offer a full in-house timetable of activities for older adults, including exercise classes, social groups, IT support groups, hot meal provision and trips and excursions. On average, we welcome 76 (2023:65) older adults to the groups each week. This work is funded by the Kellett Fund through the Community Foundation serving Tyne & Wear and Northumberland.
We are into our second year of funding from Henry Smith Charity to develop and deliver our Befriending and Wellbeing project, which was identified as a need through our outreach work during the pandemic.The project is going well, with social prescribers referring those most in need for friendship and support in their own home.The funding also includes the continued provision of food parcels to families and individuals, with 613 parcels distributed in the year.
From September 2023 with funding through Search Newcastle, we have held a fortnightly Memory Tea session for those diagnosed with dementia.With a variety of activities and trips, this relaxed group is proving extremely beneficial, both to people living with dementia and their carers.
Towards the end of the year, we secured additional funding from the Pargiter Trust, together with the Pamela and Dorothy Denham, Joseph Brough Charitable Trust, Brian & Margaret Thompson and Pamela Denham Grassroots funds, all through the Community Foundation serving Tyne & Wear and Northumberland, to extend the provision with new physical activity classes. The introduction of Zumba Gold and Gentle Circuits has proven popular.
The Avenue coffee shop
The Avenue coffee shop reopened in May 2023 with the appointment of a new Catering Manager. The Avenue is at the heart of the centre, offering affordable, delicious meals, snacks, barista coffees and drinks as well as a place to feel welcomed and make new friends.
Cost of living crisis
In November 2023, we received funding from the Community Organisations Cost of Living Fund delivered by the National Lottery to support our community with the cost-of-living crisis as well as funding towards our own increased costs. The community support included free snacks and drinks in the coffee shop (with 1,487 free snacks provided) and the provision of 70 Christmas hampers with food and gifts delivered to families and individuals most in need.
Public benefit
When planning the activities for the year, the trustees have regard to the Charity Commission's guidance on public benefit. St Martin's Centre runs activities and programmes for all age ranges and the services are open to all members of the local community.
The people accessing our services benefit directly through the services and activities we provide. Through participation in our programmes and activities they develop the skills and confidence to be able to make positive choices and are able to increase their living standards and health and wellbeing. Working with our staff they are able to identify barriers to success and develop the skills and strategies to overcome them and progress into education, employment, volunteering or training. They are able to form better relationships with peers and families and work towards contributing to the local community in a positive way. This also benefits the family and the local community.
Over 97% of income for nursery places was derived from the government 2-year-old offer or the 3-5-year-old offer, with the balance in the form of fees. This demonstrates the level of deprivation in the area we serve.
The Centre has arguably benefited the public more these last four years than at any other time in its history. This has been at a time when people have been most in need and some alternative areas of support have been closed to them. We have extended our reach, been flexible in our delivery and secured sufficient funding to be able to carry this out.
Volunteers
St Martin's Centre has a volunteering policy in place, together with volunteer agreements and staff policies which also relate to volunteers. During the year we worked with 29 volunteers (2023:20), with 17 active volunteers at the year end. Currently we have 19 active volunteers.
Charitable activities
Our general activities within the centre are driven by the community around us in Byker and Walker, Newcastle upon Tyne, and we offer a wide range of activities for all age groups, such as the under-five play groups, nursery provision for two to five year olds, baby socials and breastfeeding support groups. For the over 55s, we offer a weekly nutritious, home-made lunch and social/support groups to tackle the key problem of social isolation amongst the elderly within Byker and Walker. We have extended our provision with a new outreach Befriending and Wellbeing project, providing social support for people in their homes and the continued provision of food parcels to those most in need via referrals from social prescribers, schools, GPs and local organisations. We also offer a volunteering project, providing skill building, training and volunteering experience in a professional workplace for local people. We work closely with Children and Families Newcastle East, targeting those families most in need of our services. We are a dynamic and evolving centre that looks to identify the need within our community and develop services appropriately.
Financial dependency
St Martin's Centre continues to be influenced by the uncertainty of financial support to the voluntary sector and the cost-of-living crisis. However, the charity has received sufficient income to operate its essential services and support core costs, including from Newcastle City Council for Children and Families Newcastle East activities, room hire contributions and payments under government offers for nursery occupancy.
In addition to this income, the centre has benefited from the support of many funders in the year, including the Henry Smith Charity, Garfield Weston Foundation, the Kellett Fund at the Community Foundation Tyne & Wear and Northumberland, the Greggs Foundation, the Community Organisations Cost of Living Fund delivered by The National Lottery Community Fund, the Pargiter Trust at the Community Foundation Tyne & Wear and Northumberland, Search Newcastle, Winn Group, Shepherds Offshore and the Pamela and Dorothy Denham, Joseph Brough Charitable Trust, Brian & Margaret Thompson and Pamela Denham Grassroots funds at the Community Foundation Tyne & Wear and Northumberland.
Investment policy and objectives
The fund balances carried forward at 31 March 2024 show a surplus total of £357,509 (2023: £354,148). An operating surplus at 31 March 2024 amounting to £3,361 (2023: £56,700) is shown in the Statement of Financial Activities.
The majority of funds are to be spent in the short term, so there are few funds for long term investment; however excess funds are deposited in an interest-bearing instant access account.
Reserves policy
The Charity currently has a contingency fund of reserves and any interest accrued is applied to the work of the charity.
At 31 March 2024 the free reserves amounted to £257,599 (2023: £258,352). The trustees agreed a new reserves policy in May 2024, which comprises of a cessation reserve together with an income risk reserve. The cessation reserve includes potential redundancy costs and exit costs for leases and contracts and the income risk reserve is based on three months’ worth of unrestricted running costs. These combine to give a target reserve at the year end of £248.7k. We are holding reserves slightly above this level; however we expect the level of unrestricted reserves to fall in the new financial year, given the increased competition on funding streams, the continued impact of inflation and the cost-of-living crisis and the reduction in self-generated income from room hire.
Designated reserves
The trustees had previously designated £10,000 to spend on marketing and a new website. The majority of this has been spent in the year, with a new website recently launched and new signage for the centre and nursery. The balance of £2,886 will be carried forward for a further year to cover any final costs associated with the website and marketing. In addition, designated reserves include the capital asset fund, which represents the net book value of assets purchased using specific grant funding.
Insurance
St Martin's Centre Partnership used Ecclesiastical Insurance plc as the main insurers for the year and Victor Insurance as the insurers for the nursery.
Political contributions
The Charity made no political contributions during the year.
Policy of payments of creditors
It is St Martin's Centre's policy to pay all suppliers within their settlement terms.
Pension Commitment
St Martin's Centre Partnership has a pension scheme arrangement with Royal London and makes employer's contributions to the scheme. Membership is offered to all staff and includes death-in-service cover. The company also has a NEST scheme to meet its auto enrolment duties.
Plans for the future are based around the consolidation of our existing delivery and extending our reach to ensure more people can access the activities, groups and support on offer. We are hoping to secure funding for a new early-years project, which will provide early intervention for young children with speech and language delay, as well as providing in-depth support for families who have children with additional needs.
Our infrastructure will be further strengthened through contracting with a HR and Health and Safety support organisation. A full review of policies and health and safety procedures will take place to ensure we meet with best practice.
Governing document
The charity's governing documents are its Memorandum and Articles of Association, which constitute the charity as a limited company, limited by guarantee, as defined by the Companies Act 2006.
The charity's full name is St Martin's Centre Partnership. It is a registered charity in the United Kingdom, Charity No: 1108131 and a company limited by guarantee, registered in England No: 05235539.
Recruitment and appointment of new trustees
Trustees may from time to time appoint a new member of the charity as a trustee, whether to fill a casual vacancy or by way of addition to the Board, provided that the appointment does not cause the number of trustees to exceed the maximum number allowed. Trustees are appointed for three years and are eligible for re-election for further three-year terms.
Organisational structure
The charity is managed by a Board of Trustees together with a Finance Sub-Committee. Both of these meet bi-monthly. The Chief Executive and Director of Finance and Business Development attend meetings of the Board of Trustees and the sub-committee but have no voting rights.
A scheme of delegation is in place and day to day responsibility for the provision of services rests with the Chief Executive. The Chief Executive is responsible for ensuring that the charity delivers the services agreed by the Board of Trustees and ensuring adequate support and supervision of the staff team.
Induction and training of new trustees
When recruiting trustees, the Board looks for individuals with skills and experience which are of value to St Martin's Centre and which may not be represented by existing trustees. Trustees are recruited through advertisement or by recommendation, personal invitation, representatives from partnerships, or from current or historic service users. Anyone wishing to become a trustee is required to undergo a check with the Disclosure and Barring Services (DBS) at enhanced level and sign a declaration that they are not debarred from holding office. After appointment all new trustees go through an induction led by staff and board members.
Key management remuneration
The trustees consider the board of trustees, senior staff and in particular the Chief Executive and the Director of Finance and Business Development as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day-to-day basis. Other key personnel during the year include the Befriending and Wellbeing Manager and Nursery Manager. All trustees give of their time freely and no trustee remuneration was paid in the year. Details of trustee expenses, key management remuneration and related party transactions are disclosed in notes 9, 10 and 22 to the accounts.
Trustees are required to disclose all relevant interests and register them with the Chief Executive and in accordance with the charity's policy withdraw from decisions where a conflict of interest arises.
The pay of the charity's key management is reviewed annually. The remuneration is also bench-marked with charities of a similar size and activity to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles.
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 Chief Executive presents a risk register to the Board of Trustees annually. Services delivered to children, young people and vulnerable adults are risk assessed in accordance with the appropriate guidelines before commencement of any activity.
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:
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.
I report to the trustees on my examination of the financial statements of St Martin's Centre Partnership (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 Institute of Chartered Accountants of England and Wales, 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.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
St Martin's Centre Partnership is a charity incorporated as a company limited by guarantee in England and Wales. The registered office is St Martin's Centre, Roman Avenue, Byker, Newcastle upon Tyne, Tyne and Wear, NE6 2RJ, England.
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, 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 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.
Designated funds are funds set aside by the trustees out of unrestricted general funds for specific future purposes or projects.
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.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Donations are received by way of grants and donations and are included in full in the statement of financial activities when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, and it is probable that the income will be received and the amount can be measured reliably.
Grants and other income received in advance of the period to which they relate are treated as deferred income if the related expenditure cannot be incurred until the future period. Deferred income is included within liabilities in the balance sheet.
Expenditure is 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, inclusive of any VAT which cannot be recovered.
Charitable expenditure comprises all costs of activities in furtherance of the objects of the charity.
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:
Assets are capitalised where it is expected that they will be in use for a number of years. Assets costing below £25 will not be capitalised. An impairment review of fixed assets is conducted annually.
Stocks 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 corporation tax on its charitable activities.
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
Short term debtors and creditors
Debtors and creditors with no interest rate which are receivable or payable within one year are recorded at transaction price. Any loss arising from impairment are recognised immediately in profit and loss.
Volunteers
St Martin's Centre Partnership benefits from the time and skills of volunteers in all areas of operational delivery. In accordance with the Charities SORP (FRS 102) this time is not recognised as a value in the accounts. Further information on volunteer contribution is included in the Report of the Trustees.
Grants
Government grants
Income from governments grants in the year comprise of grant funding from the Community Organisations Cost of Living Fund delivered by the National Lottery Community Fund £40,095 (2023 : £Nil), the Newcastle Fund via Newcastle City Council for the delivery of the Volunteering Project, totalling £Nil (2023 : £29,077) and funding from Newcastle City Council to support the Warm Hub £Nil (2023 : £16,500). Governments grants totalled £Nil (2023 : £45,577).
Other unanalysed grants
Other grant income in the year comprises of funding from Winn Group £2,000, Christmas Appeal £1,223 and Search Newcastle £5,000.
Other grant income in the prior year comprises of funding from The Newcastle Building Society £3,000, Willan Trust totalling £10,000, Children in Need £10,383, Children in Need Money Heroes £1,000, the National Lottery totalling £4,141, the Ringtons Fund totalling £5,500, Christmas Appeal totalling £3,267, Esmee Fairbairn grant £2,500, Connected Voice totalling £4,000, the Emergency Fund totalling £10,
Nursery income
Café income
Contributions from user groups
Other income comprises of miscellaneous income totalling £10,218 (2023: £5,837).
Rates and water
Insurance
Light and heat
Telephone and ICT
Postage and stationery
Sundries
Training
Repairs and renewals
Bank charges
Travelling
Accountancy
Governance costs includes payments to the independent examiners of £2,520 (2023: £2,400) for independent examination fees.
Trustees' expenses
No expenses were reimbursed for travelling expenses during this or the prior period.
The average monthly number of employees during the year was:
Pension costs
The charity operates two defined contribution pensions schemes. £10,864 has been recognised in the SOFA as an expense (2023: £9,445).
Key management
Key management personnel of the charity are the trustees and senior staff and in particular the Chief Executive and the Director of Finance. The remuneration of all senior staff totalled £150,726 (2023: £119,783).
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
Included within accruals and deferred income is deferred income of £322 (2023 : £467) relating to event income received in advance.
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 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.
Purpose of Designated Funds
Community Family Hub
Funds received to run family hub activities from the centre.
General-Nursery
Funds received from Newcastle City Council under the Government’s 2 and 3-year-old offers for childcare places, together with a small amount of private fees from parents/carers.
Café and hospitality
Income and expenditure from The Avenue coffee shop in the centre, together with hospitality provided to room bookings.
Capital Asset Fund
This fund has been set up to represent the net book value of capital assets purchased from restricted funding received from the Fresh Ideas Fund. It is being reduced each year in line with the charity's depreciation policy.
Marketing Reserve
The trustees have designated funds to spend on a new website and improved marketing.
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.
Purpose of Restricted Funds
Henry Smith Charity - Core costs
Three-year funding received to contribute towards the core costs of the centre.
Henry Smith Charity - Covid - 19
Three year funding received to develop and deliver the Befriending and Wellbeing Project
Newcastle Building Society
Funding to cover the salary and ingredient cost of running the warm hub over the winter months.
Garfield Weston Foundation
One-year contribution to the core costs of the centre.
Kellett Fund at the Community Foundation Tyne & Wear and Northumberland
Two-year continuation funding enabling the expansion and continuing services and activities offered to older adults within our community.
Ringtons Fund
St Martin’s Centre was Ringtons’ charity of the year for 2022, with Ringtons staff carrying out fundraising activities. The amount raised was matched by the Ringtons Fund. The funding was unrestricted and used to provide additional activities for older adults and to support the Emergency Fund.
Greggs Foundation
One-year contribution to the core costs of the centre.
Emergency Fund
Funds generated through fundraising and utilised to provide emergency supplies to families most in need.
Christmas Appeal
Funds generated from the public and local organisations to provide Christmas hampers containing food and gifts to families most in need.
Pargiter Trust and Community Foundation - general, (Pamela and Dorothy Denham, Joseph Brough Charitable Trust, Brian & Margaret Thompson and Pamela Denham Grassroots funds) at the Community Foundation Tyne & Wear and Northumberland
Funding provided to extend the provision of physical activities for older adults.
Search Newcastle
Funding to operate bi-monthly Memory Teas for people living with dementia and their carers.
Winn Group
The funding was used to provide items within the Emergency Fund and to extend our provision around the cost-of-living crisis.
National Lottery - Community Organisations Cost of Living Fund
Delivered by The National Lottery Community Fund, this project supported our community through a second winter of the cost-of-living crisis, as well as funding our own increased costs.
There were no disclosable related party transactions during the year (2023 - none).