The past 12 months have once again presented challenges for organisations within the Voluntary, Community and Social Enterprise (VCSE) sector, whether by way of increased service demand, or uncertainty about contracting or grant funding. The strong contribution by sector colleagues in supporting our communities with the needs they face, has never been more needed. The VCSE continues to enable community led action as trusted sources of practical and emotional support to their communities, helping to underpin community resilience.

In response to this landscape, Durham Community Action maintained our close collaborative work with colleagues in the sector, and across the Public Sector. We once again kept in touch with the organisations and groups that have played such a key role in sustaining community-led support activity in response to the most pressing needs of their communities. The focus for 2025/26 was once again about supporting communities to develop, and to grasp fresh opportunities that help to build community resilience.

Colleagues in the VCSE (large and small organisations) continue to face many challenges adapting service provision to meet community needs, amidst increasingly constrained funding and rising delivery costs. Staff recruitment and retention continued to present difficulties, even where funding and investment had been secured.

The VCSE and our partners in the public sector continue to face complex challenges with respect to equitable provision of public services, including health, social care, and education, at a time when public finances are under growing pressure. These challenges include the undermining impacts of poverty, poor and worsening mental health and continued inflationary pressures faced by individuals and organisations alike. We continued to see increases in the numbers accessing crisis support, and a growing number of people seeking debt advice and other welfare or emotional support services. These challenges remain highly visible and exacerbate the health inequalities that are evident across our communities.

Through all these challenges, volunteer led activity across County Durham continues to provide a safety net of support for those in need.

Our work during the year was focused on supporting volunteer leaders to build capacity and take action with their communities. We were able to collaborate with colleagues in the VCSE, and in the public sector, to support communities with information, advice, and training, provide leadership and advocacy for volunteer led delivery, and to amplify the demonstrable contribution that the voluntary sector makes to our local economy.

Addressing this broad spectrum of issues, our work themes continued to prioritise:

•    Health and wellbeing & community resilience including mental health

•    Volunteering

•    Representation, advocacy, and voice for the VCSE

•    Policy and implications for communities: housing, access to services, enterprise, carbon reduction and

community energy, poverty, economic growth, social isolation, and loneliness.

The three key themes that remain consistent for us, year on year, are Volunteering Support, Community Asset building, and collaborations and alignment with key VCSE support organisations.

Supporting networks and partnerships within the VCSE continued to be of crucial importance to us. As a VCSE infrastructure support provider, we play a key role in representing and championing the sector. Multi-sector partnerships in County Durham continued to be highly effective conduits for consultation, information exchanges, problem solving, and co-production in shaping fresh approaches to services.

Over the course of the year, we once again worked closely with a diverse range of funders, including commissioners, and the Point North Community Foundation. Working collaboratively, funders continued to be hugely supportive. Through this support a lot of VCSE organisations and volunteer led groups were able to sustain activities and continue to consider how best to build and reshape their income streams and activities for the future.

Alongside many organisations in the VCSE who are reliant on a broad portfolio of funding support. We were very fortunate and grateful to have the overwhelming support of Durham County Council, Defra, the National Lottery Community Fund, National Lottery Community Fund - Climate Action Fund, North East & North Cumbria Integrated Care Board, the Office of the Durham Police & Crime Commissioner, Point North Community Foundation, and all our other funders.

Our Trustees continued to meet on a bi-monthly basis to review income and cash flow and to ensure DCA remains a proactive well-run organisation that is able to respond to the needs of our beneficiaries.

Financially, we are grateful that DCA is able to look forward to 2026/27 with a degree of confidence, despite the continuing challenges, and the tough economic climate in which we continue to operate.

This report outlines the charity's objectives and achievements during the year to 31 March 2026 and details the arrangements that are in place to protect and develop resources. 2025/26 was a year that continued to challenge and stretch community resilience. DCA’s longevity in County Durham has helped us to work responsively and supportively.

As Chair, I would once again like to express my thanks and appreciation to our Staff and Trustees, who are without doubt Durham Community Action's most valuable assets. On behalf of all the Members, Staff and Trustees I would also like to express special thanks and appreciation to our funders and all those who placed their faith in us to continue our support for the sector.

It was a pleasure to welcome representatives of over 100 community groups, funders, and partners who joined us to celebrate and reflect upon DCA’s 90 years of operation at a special event held at Ushaw in November 2025. We know that the challenges on all sectors will continue to be exceptional, and we look forward to the coming years with confidence, as we continue to adapt and respond to the new and emerging needs of our communities.

On a personal level, I shall be retiring from DCA’s Board of Trustees in November 2026. It has been a great privilege to serve as a Trustee, and the Chair of Trustees, and I know that I will be leaving DCA in strong and capable hands as it moves forward into the next phase of its development. Thanks, and best wishes to you all for your generous help and support.

Mrs Jan Worters MBE

Chair of Executive Committee

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 governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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)".

The purpose of the charity is 'to promote the benefit of the inhabitants of County Durham and the surrounding areas without distinction of sex, sexual orientation, race or of political, religious or other opinions, by associating together the said inhabitants and the statutory authorities, voluntary and other organisations in a common effort to advance the welfare of the said inhabitants with the object of improving their conditions of life, through any or all of the following:

(a) the relief of poverty.

(b) the advancement of education.

(c) the advancement of health.

(d) the relief of unemployment.

(e) the promotion of urban and rural regeneration; and

(f) such other charitable purposes as may from time to time be determined.'

About DCA and Our Values

Durham Community Action (DCA) works with and for communities across County Durham. We believe County Durham is a better place for having thriving community organisations. We run DCA well, so we can support community organisations by:

• Providing expertise and advice which is tailored to needs and circumstances.

• Supporting and nurturing new community initiatives.

• Enabling good volunteering practice and opportunities.

• Representing and providing a voice for the community and voluntary sector in County Durham.

The Trustees consider the Charity Commission's guidelines on public benefit, including 'Public benefit: running a charity' (PB2) when shaping and planning the charity's objectives and activities.

We have placed an emphasis on supporting and sustaining community assets, with an objective to support the resilience of our social and community infrastructure in County Durham. Our work streams were focused primarily on three objectives.

Good progress was made in delivering against each of the three themes during the year, producing a range of outcomes that provided clear public benefits:

Objective 1 - Supporting Community Organisations: Keeping in touch, providing support and help (information, advice, and guidance) for community organisations and groups, particularly for volunteer led groups. Supporting development and public access to community spaces and services.

Objective 2. Volunteering: Support for volunteers and the volunteering infrastructure in County Durham (groups and organisations that work with volunteers, mutual aid groups, individual volunteers supporting health and wellbeing programmes, and local community action).

Objective 3 - Voice: Representing and championing the VCSE (Voluntary, Community & Social Enterprise Sector) voice, through the range of strategic multi sector partnerships, and through continuing reviews of partnership working across the sector.

Volunteers

The charity provides a comprehensive range of services that promote and support volunteering across County Durham. These services are provided through a Volunteer Centre (County Durham Volunteering). The priorities and achievements for volunteering services are set out in Objective 2 above.

The charity's work is directly supported through the Trustees, all of whom are volunteers. The recruitment and management of casual volunteers is handled through the Volunteer Centre, and there are appropriate policies, procedures, and agreements in place to cover both their recruitment, and their roles and engagement with the charity's staff and work.

Our primary role regarding volunteers in any setting, is one of brokerage and advice. We support groups and organisations in the VCSE sector to recruit and support volunteers, and provide training and resources to ensure that they have compliant policies and procedures in place. Significantly, we provide training, resources, guidance, and advice about Safeguarding for volunteers and for VCSE beneficiaries.

The result for the financial year ended 31 March 2026 showed a surplus of £6,172 compared to a deficit of £106,200 in 2025. This was split between a £26,180 unrestricted surplus from the charity's core activities, and a deficit of £20,008 on its restricted activities.

The deficit on restricted funds relates to year-on-year differences in the timing between funds being received and expended on project activity. The surplus in our day-to-day activities was encouraging, especially given the ongoing challenges for organisations within the Voluntary, Community and Social Enterprise (VCSE) sector. We ended the year with healthy reserves that will hold us in good stead to maintain delivery at current levels, when funding inevitably becomes more constrained due to the wider financial pressures within the economy.

Financial procedures

Our financial planning follows an annual cycle, linked into the business planning and reporting rounds. The draft annual budget for organisational core costs is usually set by the Board of Trustees at the start of each financial year. Income and projected expenditure for programmes /​ projects and work streams during the year are factored into the budget.

The charity operates an accounting system that ring fences project /​ programme funding within the accounts, ensuring that monitoring and auditing systems are transparent. The Executive Committee undertakes regular monitoring of the budget on a bi-monthly basis.

Durham Community Action's accounts are subject to a full external audit on an annual basis. The charity complies with Charity Law by lodging all accounts with the Charities Commission. The accounts are authorised and approved by the Board of Trustees and presented to members for adoption at the Annual General Meeting each Autumn.

We aim to maintain a diverse portfolio of funding sources. Forms of investment in services are also varied and include a balance of income from grants, commissions, and earned income. Sources of funding include:

• Charitable Trusts: Point North Community Foundation, Young Foundation

• Government: Defra

• Health: North East & North Cumbria Integrated Care Board (ICB)

• Local Authorities: Durham County Council, Office of the Durham Police & Crime Commissioner

• National Lottery Community Fund

• National Lottery Community Fund - Climate Action Fund

Details of incoming resources for project-based activities are listed in Note 3 to the accounts.

Surplus cash balances are invested on deposit to earn interest at the best available rate having due regard to the balance between risk and reward.

Reserves policy

On 31 March 2026, the Charity's free reserves were £509,179 with an additional £274,956 held in restricted funds that are ring fenced to support specific projects.

DCA starts from a position of relative strength, with healthy reserves that we built up thanks to the support of our funders. However, DCA has not been immune to the wider cost pressures within the economy, and we continue to look for savings through the careful management of running costs.

The calculation of free reserves, and the amounts that have been allocated against each category are:

In accordance with DCA’s Reserves Policy, our Trustees have addressed the following priorities when determining how our reserves should be designated:

• Six months core costs and estimated redundancy costs. This is the amount that we estimate would be needed to cover staff costs, redundancy costs, and essential running costs for up to 6 months in the event of the unplanned closure of DCA. This would allow time for an orderly wind down or transfer of activities to other providers, thereby offering some protection for beneficiaries, staff, and volunteers.

• Designated investment to undertake a stakeholder evaluation to measure impact and social value. This is a follow up to the survey previously undertaken in 2022/23 and will provide evidence of DCA’s social impact.

• The designated fund for future organisational development will allow DCA to ramp up investment in staff training and development, and allocate extra resources to improve IT facilities and, digitise services etc. over the next 12 – 18 months. Greater use of online training and development is attracting more participants, and freeing up valuable staff time for more specialised one to one interventions.

• There are growing pressures on all community support services, and DCA’s support will be under additional and significant demand by the VCSE over the next 2-3 years. Designating funds for the provision of services in the next business planning cycle (2027-30) will provide a buffer through the anticipated contraction and difficulties, when we expect to see a reduction in income whilst maintaining expenditure to continue our current range of support services.

• The contingency fund provides a hedge against inflationary cost pressures and unforeseen costs.

Investment policy and objectives

Under the Memorandum and Articles of Association, the Trustees have the power to deposit or invest funds in any manner, including the establishment of a trading arm (but to invest only after obtaining advice from a financial expert and having regard to the suitability of investments and the need for diversification). They have adopted a conservative policy on depositing funds and choose only low risk deposits.

Risk management

The Executive Committee of Trustees has a risk management strategy that comprises:

• A Business Continuity Plan incorporating an annual review of the risks that the charity may face.

• The establishment of systems and procedures to mitigate those risks.

• The implementation of procedures designed to minimise any potential impact on the charity should any of the risks materialise.

Key risks for the coming 2-3 years considered relevant to this report, together with mitigating actions that have already been taken, or which are planned, are outlined in the table below.

These are also further considered as part of the reserves allocation policy (detailed earlier), which offsets the actual and contingent liabilities of the organisation against the combined value of all unrestricted funds.

This policy allows the charity to continue to operate on a reduced basis until alternative funding arrangements can be put in place.

The charity will continue to adapt and respond in a manner that is designed to meet our primary objectives. Objectives are reviewed annually, based on shared intelligence with our colleagues and partners in the VCSE, and regarding an evolving face of public services, local government, and policy.

As set out in the Reserves Policy, the Trustees have considered the implications for a changing landscape of public services, especially for health care, and the continuing evolution of systems for integrating health and social health care services. This is in the context of rebuilding civil society in the wake of service demand and funding pressures, coupled with a continuing fall back in confidence and ongoing economic uncertainty.

Over the course of the last three years, Senior Management and Trustees have been working proactively in dialogue with funders and commissioners. We have been collaborating on a more robust system for informing Commissioners where there are needs arising, and working with the VCSE to target resources more effectively.

2025/2026 marked the second year of a renewed three-year Grant Funding Deed, testament to the value placed upon VCSE infrastructure support. This has enabled us to work in partnership with the Integrated Care Board (ICB) and Durham County Council, including Public Health. The Grant Funding Deed (GFD) has been brought together by public sector commissioning partners as an investment into VCSE infrastructure support and development. This is intended to enable a more collaborative and trust-based approach to funding the sector in County Durham.

During 2025/2026, DCA continued to operate a hybrid working policy that enabled staff to split their time between home and office-based working, providing greater operational flexibility and directly benefiting DCA through savings on office running costs.

Demand for the charity's services remained high throughout the year, reflecting the continued need to support community groups, volunteers, and volunteering infrastructure organisations on issues such as fundraising and governance. DCA's Trustees are continuing to meet on a bi-monthly basis, to review budgets and cashflows and to act if required to continue within the parameters of the agreed budget.

DCA will also explore opportunities to secure additional funding that are a comfortable fit with the charity's remit and forward work plan.

Durham Community Action Limited is a company limited by guarantee and does not have share capital. The charity is governed by Memorandum and Articles of Association that were adopted on 17 October 2013.

The charity is registered with the Charity Commission. Membership is open to any individual or organisation that meets the criteria specified in the Memorandum and Articles of Association.

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 Trustees as charity trustees have control of the Charity and its property and funds, however there is no individual exercising significant control (PSC). All the Trustees are members of the company and guarantee to contribute £10 in the event of a winding up. There must be a minimum of five Trustees and a maximum of 20 Trustees.

All the charity's Trustees are volunteers and provide their time freely. Expenses are offered to cover travel costs. Trustees attending appropriate conferences and networking activities for the charity may also be reimbursed for travel costs, conference fees, and occasional accommodation when an overnight stay is necessary. No Trustees benefit financially, contractually, or materially from their roles.

Our Trustees have continued to work with the Senior Management Team to monitor and review our policies and procedures, and to undertake a review of our Business Continuity Plan.

Officers

The honorary posts of Chair, Vice-Chair and Treasurer are elected by serving Trustees immediately after the Annual General Meeting.

Organisation

Currently membership of the Board of Trustees stands at 12. The Executive Committee meets bi-monthly, and on an ad hoc basis if the necessity arises. There is the facility to establish ad hoc task and finish sub-groups; for example Trustees and Staff collaborated during the year to review DCA’s policies and procedures.

Pay policy for senior staff

Salary scales for senior staff are determined by the Trustees, having due regard to remuneration for similar roles within the VCSE sector. No employee earned more than £60,000 during the year.

Induction and training of new trustees

New Trustees undergo orientation meetings to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the Executive Committee and decision-making process, the business plan and recent financial performance of the charity. During the induction process they meet key employees and other Trustees. All Trustees are encouraged to attend appropriate external and internal training events.

Key management remuneration

The Trustees hold overall responsibility for management of the organisation, its assets, staff, and funds. Responsibility for day-to-day management of the organisation, finance, employment of staff, and for providing support and resources to the Trustees to enable strategic planning, is delegated to the Executive Director. The Trustees appoint her to manage the operations of the charity and is an employee of the company. Despite the title, the Executive Director is neither a Director of the Company nor a Trustee of the Charity.

The Executive Director manages the charity with the support of a small Senior Management Team, comprising the Managers for Community Development, Community Support, and Volunteering. Governance and finance support are provided by an external contractor, with a good working knowledge of the business. Details of the Key Management Personnel and their costs applicable during 2025/26 are included in the accounts.

Related parties

The charity's work programme is primarily determined by the needs of the communities that it serves.

Wherever possible, DCA aligns its work with prevailing national, and local policies and priorities. We achieve this by working closely with a range of partners, including ACRE, County Durham Partnership, Durham County Council, the Office of the Durham Police & Crime Commissioner, and the North East & North Cumbria Integrated Care Board.

DCA also works responsively with our colleagues in the Voluntary, Community and Social Enterprise sector within County Durham, and in various community-based networks and partnerships. As a result, close working relationships are maintained with a range of other organisations, although none meet the related parties' criteria as defined in company law:

• During 2025/26 DCA maintained a Funding Agreement with Action for Communities in Rural England (ACRE) to provide intelligence and information for Defra about areas of policy, as it affects rural communities on a regional and county-wide basis. Key priorities included affordable energy, rural health, rural life opportunities, and social enterprise development.

• The charity maintains a strong relationship with Durham County Council and is recognised by the Council as the primary VCSE infrastructure support organisation for County Durham. This provides the council with a single conduit for public sector investment into VCSE support services. During the year DCA worked particularly closely with Public Health, both Adult and Children's Services, Environment, Economic Regeneration, and the Transformation, Policy & Partnerships teams at Durham County Council. The Office of County Durham’s Police & Crime Commissioner also contributed funds to support work with front line community groups and organisations, including volunteer development.

• Physical and mental health and wellbeing was an important theme during 2025/26. Working with the Integrated Care Board, and wider Integrated Care System (ICS) partners, we developed a programme of work to reinforce VCSE engagement in new and emerging governance structures for primary and secondary care.

• We were represented on and supported on a range of networks and partnerships including the County Durham Partnership Board, County Durham Economic Partnership, the Environment & Climate Change Partnership, the Health & Wellbeing Board, the North East Combined Authority, and the Safeguarding Children & Safeguarding Adults Partnerships,

• The Better Together VCS Forum (comprising 61 countywide or specialist VCSE organisations), the AiCD Partnership, the Community Growing and Food Network (comprising 167 organisations and individuals), and the Volunteer Co-ordinators Forum (comprising 603 organisations engaged in volunteering across the North East) were amongst the networks and organisations that we chaired or supported during the year.

The trustees, who are also the directors of Durham Community Action Limited 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.

In accordance with the company's articles, a resolution proposing that Robson Laidler Accountants Limited be reappointed as auditor of the company will be put at a General Meeting.

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

Opinion

We have audited the financial statements of Durham Community Action Limited (the ‘charity’) for the year ended 31 March 2026 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the charitable company's affairs as at 31 March 2026 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and

the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of trustees' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit; or

the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The risk of material misstatement due to error or fraud has been assessed in conjunction with how internal controls may mitigate any such risk. These controls are reviewed as part of the audit by performing systems walkthroughs to ensure they are operating effectively. Analytical review and substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team;

• obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework, in which the charity operates and how the charity complies with that legal and regulatory framework

• inquired with management and those charged with governance about their own identification and assessment of the risks of irregularities, including any know actual, suspected or alleged instances of fraud

• discussed with management and those charged with governance any non-compliance with laws and regulations and how fraud might occur including assessments of how and where the financial statements may be susceptible to fraud.

The risk of management override of controls was also considered an area of potential misstatement due to fraud. Audit procedures performed included testing of manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

Durham Community Action Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 8 St. Stephens Court, Low Willington, Crook, County Durham, DL15 0BF, England.

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 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 £.

Durham Community Action Limited meets the definition of a public benefit entity entry under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The financial statements have been prepared on a going concern basis. The Trustees have considered a period of 12 months from the balance sheet date and consider no further disclosures relating to the charity's ability to continue as a going concern need to be made.

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

- Voluntary income received by way of grants, donations and gifts is included in full in the Statement of Financial Activities when receivable. Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant;

- Incoming resources from grants, where related to performance and specific deliverables, are accounted for as the charity earns the right to consideration by its performance;

- Rental & other income are recognised on a receivable basis;

- Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

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.

Expenditure includes VAT which cannot be fully recovered, and is reported as part of the expenditure

to which it relates:

- Costs of generating funds comprise the costs associated with attracting voluntary income;

- Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Amortisation 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:

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.

At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

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.

As a charity, the company is exempt from tax on income and gains to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity.

Provisions are recognised when the charity has a legal or constructive present obligation as a result of a past event, it is probable that the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.

Debtors/creditors due within one year

Trade debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid after taking account of any trade discounts due. Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under circumstances.

Critical accounting estimates and judgements

The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results.

Critical areas of judgement

In categorising leases as finance leases or operating leases, the Trustees make judgements as to whether significant risk and rewards or ownership have transferred to the charity as lessee.

In recognising income from projects, the trustees make judgements as to whether the conditions of income have been met.

Support & Advisory

Community Development

Income from Charitable Activities

Other includes grants totalling £Nil (2025: £2,800) from OASES, £Nil (2025: £6,479) from Innovate UK, £Nil (2025: £12,800) from The Ballinger Trust, £11,000 (2025:£11,000) from Cornforth Partnership, £Nil (2025:£6,000) from British Red Cross, £10,000 (2025:£Nil) from Newcastle University, £10,450 (2025: £Nil) from TEWV Foundation, £100,000 (2025:£Nil;) from NE & NC ICB Social Prescribing and £nil (2025: £698) from sundry funders.

Consultancy

Meeting expenses

Grants to small communities

Marketing and promotion

Cleaning and welfare

Electricity, gas and water

Repairs and renewals

Insurance

Staff travel and training

Printing, postage and telephone

Publications and subscriptions

Computer costs

Sundries

There were no Trustees' remuneration or other benefits for the year ended 31 March 2026 nor for the year ended 31 March 2025.

The average monthly number of employees during the year was:

Key management remuneration

The key management of the charity in the period comprised the Executive Director, Community Support Manager, Community Development Manager and the Volunteering Development Manager. Total employee benefits of the key management personnel for the year were £211,654 (2025 : £192,791).

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.

Incoming resources

ACRE / Defra funding

Provision of strategic support to rural communities, sharing learning on sustainable funding models, and providing access to local intelligence.

ACRE / Defra Rural Housing Enabler

This Defra funded initiative aims to boost the supply of new rural affordable housing by providing access to a service that supports landowners and communities to identify sites, and works with housing associations and local authorities to deliver high quality homes that meet local housing need through small scale schemes.

Amicable

This project is supporting volunteers working with the Durham Police & Crime Commissioner’s Community Peer Mentors initiative to support the recovery of vulnerable and isolated people who have been affected by significant life-changing events including crime and anti-social behaviour.

Community Buildings Energy Audit Small Grant Fund

Small grant scheme that will assist community buildings groups to implement energy audit improvements recommended by Durham County Council’s BEEP energy audit team.

Community Spaces Partnership

This partnership project, supported by the Communities Fund is supporting DCA to provide community buildings in County Durham with information, advice, and guidance, and grant funding to assist with building improvements.

Destination Capacity to support Mental Health Transformation

Funded by the North East & North Cumbria Integrated Care Board, this aims to provide a dedicated resource in each new community Mental Health hub area to increase the capacity of VCSE organisations to deliver interventions.

Durham Police & Crime Commissioner grant

Provision of advice and signposting to organisations providing specialist support for people, including volunteering, mutual aid groups, link workers, and assistance with liaison meetings & on-line training.

Durham Together - VCS Employability Programme

Provision of volunteering advice and support as part of the lottery funded Durham Together project. Delivered in partnership with Cornforth Partnership (lead partner), the Coalfields Regeneration Trust, Wheels 2 Work County Durham and WEA North East and Cumbria, to provide community learning and bespoke training to support individuals to increase their confidence, improve their health and wellbeing and progress into further learning or sustainable employment and volunteering.

Durham Victim Expert by Experience

Funding to develop a process for ensuring that the authentic voice of experts by experience can be utilised across the work of Durham OPCC.

Enterprising Durham

Funding for the provision of enterprise animation and light touch business support and signposting services on behalf of North East Business & Innovation Centre.

Health Determinants in Research

Working in partnership with Durham University and Durham County Council to deliver this project, which aims to use research and innovation to tackle the causes of unfair differences in health outcomes across County Durham. The aim is to place inclusive research, evaluation, and innovation practice at the heart of the design and delivery of public services, and to ensure that communities are fully and equitably engaged in public health policy research activity.

Healthy Communities & Social Prescribing place-based engagement & support

Funded by the North East & North Cumbria Integrated Care Board, and administered by VONNE, this project is building sustainable community-centred approaches that connect and promote public health messages, support communities, enhance relationships with the voluntary sector, and provide local intelligence to inform planning.

NICRE Innovation Project

The project has worked with NICRE to build capacity in rural communities, community spaces, businesses and individuals, involving cross-sector representation, demonstrating social return on investment and stimulating a diverse portfolio of innovations.

Poverty Truth Commission

This project aims to better understand the challenges faced by residents living in poverty in County Durham, and to come up with practical changes and solutions to some of those challenges. It aims to bring about changes for individuals and organisations at a policy and systems level, and alter the ways people think about poverty.

Rural Durham Community Research Network

Collaboration with Durham University and the Rural Design Centre, to develop and deliver a 5-year project that will provide a community research network for County Durham, giving local communities a voice. The project is funded by The Young Foundation.

Rural North East Climate Action Plan

Funded by the National Lottery Community Fund, CAIRN aims to support small communities to take charge of their energy needs and find practical, long-term solutions that benefit everyone. The project is being delivered in partnership with Community Action Northumberland (CAN), the Rural Design Centre (RDC) and National Innovation Centre for Rural Enterprise (NICRE).

Social Prescribing Development & Support

This initiative, funded by the North East & North Cumbria Integrated Care Board, supports DCA to develop and expand the Social Prescribing Link Worker (SPLW) network, providing peer support for SPLW’s, raising awareness, and embedding social prescribing into teams working across and within GP practices.

Volunteer Development Strategy

Funding to provide bespoke support to the Office of the Police & Crime Commissioner of Durham (OPCC) with their Volunteer Development Strategy, Volunteer Management and Training Programme, building up to accreditation of the County Durham Volunteer Kitemark across the whole of the organisation.

Volunteering & Infrastructure Support

Grant funding agreement with Durham County Council for the provision of support services to the Voluntary & Community Sector across County Durham.

Grouped Restricted Funds

Community Energy fund

This project is providing funding for an assessor to undertake a study examining the feasibility of installing electric vehicle charging equipment at 5 community buildings across Teesdale.

County Durham Faith Network

This is funds held on behalf of County Durham Faith Network.

Covid-19 Vaccination Centre Volunteer Expenses

Administration of a fund to provide travel expenses to volunteers assisting at Covid 19 vaccination and lateral testing centres.

TEWV Foundation trust

Building on the Amicable initiative aiming to recruit, engage and retain involvement with 30 people released from prison by offering people bespoke volunteering. This is a research based project examining the barriers to maintaining contact with people following their release and considering how to encourage participation in research programmes for those through the prison gates.

VCS Emergencies Partnership preparedness

Administered via the British Red Cross Society, this is funding DCA to help local organisations ensure they are prepared to work together to assist local emergencies. There is no carry forward balance.

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.

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Durham Community Action participates in The Pension Trust's Flexible Retirement Plan, a defined contribution scheme. The plan is funded and contracted out of the state scheme.

The assets of the scheme are held separately from those of the charity in an independently administered fund. The contributions payable by the charity expensed to income and expenditure amounted to £33,980 (2025: £29,654).

Contributions totalling £Nil (2025: £287) were payable to the fund at the year-end.

There were no related party transactions for the year ended 31 March 2026 nor for the year ended 31 March 2025.

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £10.