The trustees present their annual report and financial statements for the year ended 31 March 2026.
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, reviewed in 2024, is: Rural communities in Northumberland will be vibrant, inclusive, sustainable and resilient. Within this vision we aim to:
• Promote Rural Issues – Providing and supporting a ‘rural voice’ to influence policy, programmes and action.
• Empower Communities – Supporting and developing local communities, their key groups and organisations.
• Deliver Solutions – Identifying, developing and managing projects to address the needs of individuals.
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 and energy advice, employability, digital inclusion 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 facilitating training events themes such as volunteering, safeguarding, management and food safety.
Public benefit
CAN operates a performance management system which involves periodic researching (and seeking feedback from) our beneficiaries in relation to specific projects and programmes to ensure that our services and activities are needed, 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, for the benefit of our beneficiaries
CANs trustees review their 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
CAN maintains its active focus on Northumberland's rural communities and 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 advice, fuel poverty, employability and housing in addition to our traditional core strengths in relation to village halls/community buildings and Parish/Town Councils. Programmes continuing during the year include Climate Action in the Rural Northeast (CAIRN), a Community Spaces Partnership and our Rural Digital Inclusion project. Northumberland Community Energy Ltd continued operations with support from CAN to reduce energy costs, increase resilience and lower carbon emissions for community buildings across Northumberland.
In addition, we have continued to actively nurture 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 a diverse range of funding in a time of continuing significant challenges and restricted public sector funds. This funding strength 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 and by the impact of our services and activities on rural communities, organisations and residents.
CAN’s total income for 2025-2026 was £886,463 The continuing high level reflects a diverse amount of specific time-limited project funds including those related to the National Lottery Community Fund and a range of energy projects. It also reflects the continued development of more recent initiatives including the Digital Inclusion Project, Rural Employment Hubs, and the Rural Housing Enabling project (RHE).
The maintained high income level ls attributed to a continued growth in our effective collaborations with a range of key partners and the number of separate funding sources secured. In 2025/26, funds were secured from over 15 sources. Maintaining 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.
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 2025.
Reserves policy
Community Action Northumberland income is mainly derived from grants and donations, but a 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 an increase to our general reserve reflecting our increased staffing levels. 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 liability change over time, the level of each fund will be agreed by the Finance and General Purposes Committee and approved by the Board. We, as directors/trustees 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 2026/27 we will deliver against our vision and mission as set out in the 'Objectives and activities' section above within the changing context of changing public sector funding regimes and other significant external issues. This will focus on:
- Promoting rural issues
- Empowering communities
- Delivering solutions
We will continue to build strong relationships with our key partners and funders and seek to implement services and activities to address the needs of Northumberland's rural communities.
We will also seek to gradually build our reserves to reflect the growth in our project activities over recent years.
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 was the sole member of this company limited by guarantee, with its own independent board. Communities CAN (North East LTD) transitioned to a fully independent Community Interest Company in 2025 ending the formal relationship with CAN..
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 eleven 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 an Operating 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 appointed a Communications Manager in 2025 to support our communication activities, replacing the service previously delivered through a marketing consultant. 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. In 2025/26 this relates to the Chief Officer for the Northumberland Association of Local Councils (NALC), the Project Officer for Prudhoe Community Partnership, the Coordinator for Communities CAN (North East LTD), and the Project Manager for Northumberland Community Energy Ltd.
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 energy.
CAN previously established “Communities CAN (North East) Ltd” as a Company limited by guarantee Company Number 11203303, of which CAN was the sole member This organisation became a fully independent CIC on 10 June 2025.
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, who are also the directors of Community Action Northumberland 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.
I report to the trustees on my examination of the financial statements of Community Action Northumberland (the charity) for the year ended 31 March 2026.
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, the independent examiner must be a member of a body listed in section 145 of the Charities Act 2011. 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 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. All income and expenditure derive from continuing activities.
Investments
Raising funds
Community Action Northumberland is an incorporated charity, limited by guarantee, 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.
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 £3,000 (2025: £nil) from The Ballinger Trust; £85,840 (2025: £161,175) from UKSPF; £5,000 (2025: £5,000) from The Sir James Knott Trust; £55,048 (2025: £44,544) from ACRE; £31,000 (2025: £8,000) from Digital inclusion; £nil (2025: £680) from Northumberland Village Hall Heritage; £nil (2025: £119,860) from Solar Projects MOTCA / TVCA; £113,256 (2025: £49,693) from Northumberland Community Energy Ltd; £10,000 (2025: £10,000) from NICRE; £2,200 (2025: £nil) from Amazing Communities together/ACRE/Vonne.
Other Income
The following amounts are included in other income:
| 2026 | 2025 |
| £ | £ |
Northumberland Association of Local Councils | 32,710 | 30,000 |
Prudhoe Partnership | 9,525 | 12,700 |
Wingates | 3,793 | 3,779 |
Oil CAN | 862 | 1,481 |
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 totalled £67,137 (2025 : £61,441)
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
Funds received as agent
During the year the charity received funds on behalf of third parties in its capacity as agent. These amounts are not included in the Statement of Financial Activities as the charity is not entitles to any of the economic benefits and acts solely as an intermediary.
| Income | Expenditure | Balances held at year end |
| £ | £ | £ |
National Lottery Community Spaces Fund | 150,000 | 150,000 | - |
National Lottery Community Spaces Capital | 634,855 | 634,845 | 10 |
Ballinger Trust | 12,600 | 12,100 | 500 |
CAIRN - Climate Action in Rural North east | 230,685 | 150,646 | 80,037 |
Wingates Windfarm Community Fund - Infinis | 137,029 | 58,112 | 78,917 |
Grants to small local groups | 300 | 300 | - |
There were no disclosable related party transactions during the year (2025 - none).