The trustees present their annual report and financial statements for the year ended 31 December 2025.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
The objects of the Foundation are:
The prevention and relief of unemployment for the public benefit in such ways as may be thought fit, including assistance to find employment.
To help young people, especially but not exclusively through leisure time activities, so as to develop their capabilities that they may grow to full maturity as individuals and members of society, in particular by providing grants of financial assistance to organisations established to help young people.
Over the next 10 years the Foundation's strategy is to focus primarily on increasing access to enterprise for young people in the North East of England; through the provision of funding for projects and activities that support young people to consider self-employment as a realistic career option and develop sustainable businesses.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
During 2025, the Trustees continued to invest in activities that advance the Foundation's charitable objectives of preventing and relieving unemployment and supporting the development of young people across the North East of England.
The Foundation provided funding towards PNE’s Core Enterprise Programme, helping to ensure continued access to high-quality enterprise support for individuals considering self-employment and business start-up. Through this investment, the Foundation's funding also supported enterprise activity amongst individuals who experience significant barriers to employment and self-employment, including those affected by disability, caring responsibilities, neurodiversity, financial disadvantage and limited access to opportunities. By filling gaps and supporting established enterprise support programmes, the Foundation continued to help people improve their economic prospects whilst contributing to stronger and more resilient local communities.
In addition to its enterprise-focused activities, the Foundation continued to administer the Brass Tacks Legacy Fund. During the year, grants totalling £2,800 were awarded to eight recreation, sports and community organisations operating in North Tyneside that support the development and wellbeing of children and young people. These small grants helped local organisations deliver activities that encourage participation, personal development, community engagement and positive life opportunities for young people.
The Trustees remain committed to ensuring that the Foundation's resources are used to generate the greatest possible social impact. Demand for both enterprise support and youth-focused community activities remained strong throughout the year, demonstrating the continuing importance of accessible opportunities that help individuals develop skills, confidence and aspirations for the future.
The Foundation's investment portfolio continues to be managed on a prudent, low-risk basis, providing a sustainable source of income to support charitable activities whilst protecting the long-term value of the charity's assets for future beneficiaries.
In the year, charitable activities costs totalled £19,430
The Foundation ended the year with reserves of £940,960 (2024: £835,426) of which £936,631(2024: £828,297) were unrestricted. The trustees anticipate that this will enable it to continue its activities over at least a 10 year horizon.
PNE Foundation holds reserves to ensure the sustainability of our charitable activities and to manage financial risks effectively. The Trustees have set a target to maintain unrestricted reserves at a level sufficient to cover at least three months of core operating costs and fund specific future projects or commitments that enable us to fulfil our charitable objects.
The reserves position is reviewed annually by the Board of Trustees to ensure it remains appropriate for the charity’s size, commitments, and future plans.
Governing document
The PNE Foundation is a company limited by guarantee, governed by its Articles of Association, as amended on 27 April 2015.
The company was incorporated on 23 September 2010 (registered number 07385704) and was registered with the Charity Commission on 13 May 2015.
There are currently six members, each of whom agrees to contribute £10 in the event of the charitable company winding up.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Recruitment and appointment of new trustees
The existing board of trustees are authorised to appoint new trustees to fill vacancies arising or to strengthen the governing team.
Organisational structure
The trustees meet at least four times a year to review progress and to agree future plans. One of the trustees is also an executive director of Project North East and deals with any day to day matters arising; personnel from Project North East also maintain the accounting records of the Foundation.
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
The trustees' report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of The PNE Foundation (the charity) for the year ended 31 December 2025.
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the Companies Act 2006 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. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.
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 Companies Act 2006.
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 Companies Act 2006 other than any requirement that the financial statements 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 financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Investments
Raising funds
The statement of financial activities includes all gains and losses recognised in the year.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Investments
Raising funds
The PNE Foundation is an incorporated charity incorporated in England and Wales. The registered office is Turners Building, 7-15 Pink Lane, Newcastle upon Tyne, Tyne and Wear, NE1 5DW.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Charitable activities
Charitable activities
Trustees' remuneration and benefits
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 December 2025 nor for the year ended 31 December 2024.
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
Brass Tacks
This fund provides small grants to predominantly North Tyneside based organisations that provide activities for children and young people.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
Included in other creditors at 31 December 2025 is an amount of £499 (2024: £8,184) due to Project North East, a company which is under common control.
Included in grants payable is an amount of £13,068 (2024: £30,451) paid to Project North East, a company under common control.
Management charges of £1,867 (2024: £1,214) has been paid to Project North East, a company under common control.
Donation of £50,000 (2024: nil) has been received from Project North East, a company under common control.