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2023-03-31-annual-return

Charity Registration No. NIC100012

Company Registration No. NI001792 (Northern Ireland)

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

GROUP ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Ms O Lyner Ms C Brooks Ms D Hayward Ms P Lewsley-Mooney CBE Mr L Devine Ms B Arthurs Ms O Black Ms H Weir Mr S Dallas Ms S E Didrichsen (Appointed 9 December 2022) Ms A Roberts (Appointed 9 December 2022) Ms M Cavanagh (Appointed 9 December 2022) Secretary Ms C McStravick Chief executive officer Ms C McStravick Senior management team Ms C McStravick, Chief Executive Ms Ú McKernan, Deputy Chief Executive (Resigned 1 September 2023) Mr R Best, Head of Communications Ms S Bailie, Head of Organisational Development Mr G Nuttall, Head of Public Affairs (Resigned 6 October 2023) Charity number NIC100012 Company number NI001792 Registered office 61 Duncairn Gardens Belfast BT15 2GB Auditor GMcG BELFAST Chartered Accounts & Statutory Auditor Alfred House 19 Alfred Street Belfast BT2 8EQ Bankers AIB 35 University Road Belfast BT7 1ND Solicitors Elliott Duffy Garrett 40 Linenhall Street Belfast BT2 8BA

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CONTENTS

Page
Chair's statement 1
Trustees' report 2 - 8
Independent auditor's report 9 - 14
Consolidated statement of financial activities 15
Consolidated balance sheet 16
Charity balance sheet 17
Consolidated statement of cash flows 18
Notes to the financial statements 19 - 41

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

CHAIR'S STATEMENT

FOR THE YEAR ENDED 31 MARCH 2023

The chair presents her statement for the year ended 31 March 2023.

Reflecting on the year, it feels as if our sector has gone from one crisis to another. Just as the COVID-19 pandemic was behind us, we have moved into a Cost of Living Crisis that has profoundly impacted our sector.

This Crisis, coupled with the political vacuum at Stormont, which has left us without a functioning Assembly, has created an unprecedented funding environment.

With short term funding arrangements for some and huge cuts for others – our sector is required to do much more, with much less. As ever, we in NICVA are here to help and support in any way we can.

Against this tumultuous backdrop, there has been change at NICVA. Seamus McAleavey, retired as Chief Executive, in January 2023 after over 30 years of distinguished service.

His successor, Celine McStravick, is now leading the organisation and we, the Executive Committee are looking forward to working with her over the coming months and years.

It is impressive what NICVA continues to deliver on behalf of our sector. Our strategic goals are to support, influence, develop and invest in our sector and this is evident in the work delivered every day.

We record over 500,000 people visiting our website every year and have grown our membership to over 1,300 – its highest level yet, demonstrating our relevance and the ongoing need for our services in these toughest of times.

We have delivered or facilitated 95 training courses to over 1,200 people and handled almost 1000 support cases in the areas of Human Resources, governance and finance. We continue to be the key support network for our sector as well to advocate with decision makers to ensure the sector’s voice is heard.

Despite all the change and challenge, the staff team at NICVA continues to deliver and strive for excellence and I thank them all on behalf of the Executive Committee as well as the wider membership.

The times may be challenging, but our sector continues to stand up and be counted, and NICVA is here not only to support you and advocate on your behalf, but to stand shoulder to shoulder with you to ensure a brighter future for all.

Ms O Lyner Chair

Dated: 2 November 2023

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2023

The trustees present their annual report and financial statements for the year ended 31 March 2023.

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 of Association, 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)".

Objectives and activities

The Northern Ireland Council for Voluntary Action (NICVA) is the umbrella body for the voluntary and community sector in Northern Ireland with a membership of 1,100 members. The Charity supports, represents, and promotes its membership and the voluntary and community sector and is committed to equality, social justice, embracing diversity and opposing discrimination.

NICVA provides support through information, training and advice including governance, charity law reform, fundraising, finance, human resources, advocacy, and management development. NICVA represents the interests of the sector across all government departments and with all stakeholders making sure the health and well-being of the sector are looked after. In addition, NICVA runs a conference facility for the use of voluntary and community organisations.

The trustees have paid due regard to the Charity Commission guidance on public benefit. The trustees are confident that NICVA's aims, and objectives are in accordance with the regulations on public benefit.

The objects for which the charity is established are to promote, develop and support the voluntary and community sector and any purpose for the benefit of the community in Northern Ireland and in any other part of the world which are, or hereafter may be deemed by law, to be charitable and in particular:

Achievements and performance

This year marked the second in NICVA’s new five-year strategic plan for April 2021-March 2026.

Our Strategic Goals

Four strategic goals will determine our programmes of work over the next five years. Each goal is supported by a series of operational goals and a series of outcomes which specifies the changes we want to see, our priorities for the next five years and how we will achieve them. The priorities identified against the goals are not exhaustive and are likely to evolve as the context changes. Our strategy is underpinned by our Vision Mission and Values which drives all that we do.

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Strategic Goal 1: Support

Helping the VCS to innovate , develop and improve to meet the needs of the communities it serves. We do this by:

Key outputs in the year included:

Strategic Goal 2: Influence

Helping the VCS to influence policy.

We do this by:

Key outputs in the year included:

Strategic Goal 3: Develop

Helping the VCS consolidate and develop the use of Data, Digital and Technology. We do this by:

Key outputs in the year included:

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Strategic Goal 4: Invest

Ensuring continuous improvement to provide the best service to our members.

We will do this by:

Key outputs in the year included:

Financial review

The results are set out in detail on pages 15 to 41. The group returned a net decrease in funds for the year of £19,891 (2022 - net increase of £152,146), of which £46,828 related to a net decrease in unrestricted funds and £26,937 related to a net increase in restricted funds.

The net decrease in unrestricted funds includes pension provision income of £1,952 (2022 - £17,340).

At 31 March 2023, the total funds of the group amounted to £2,210,994 (2022 - £2,230,887) comprising restricted funds of £1,112,371 (2022 - £1,085,434) and unrestricted funds of £1,098,623 (2022 - £1,145,453). The unrestricted funds at the year end are after accounting for a pension provision of £65,897 (2022 - £83,866). Further details of pension provisions are provided in note 18.

NICVA receives a core grant from the Department for Communities which contributes to the delivery of its core work as described in the strategic plan. Furthermore, NICVA delivers contracts on behalf of other funders such as Belfast City Council and The Executive Office which also support the delivery of NICVA’s Mission, Vision and Values. NICVA generates earned income from a range of sources including conference facilities and training courses which also contribute to the delivery of the core business.

Reserves policy

Unrestricted funds are essential to provide sufficient funds to cover any unforeseen costs which may arise and fulfil the legal obligations of the Charity if current levels of income are not maintained.

The reserves policy has been designed to recognise NICVA’s requirements for reserves considering the main risks to the organisation. It has established a policy whereby the unrestricted funds not committed should equate to 6 months’ total resources expended. The aim is to provide sufficient funds to cover any unforeseen costs which may arise, recognise the volatile grant environment as well as allowing for the payment of any liabilities which would arise should the company cease to operate. Any call upon the use of reserves will be at the approval of the Executive Committee which will examine the rationale for doing so and agree an amount where appropriate.

At 31 March 2023, the level of “free reserves”, excluding fixed assets and designated funds was £681,460 (2022 - £742,923) which equates to over 4 months' expenditure.

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Plans for future periods

Our new Chief Executive, Celine McStravick, has been in post since January 2023 and has been concentrating on giving leadership and direction to a sector beset by problems caused by the Cost-of-Living Crisis and a lack of a functioning devolved government in Northern Ireland.

As the leading voluntary and community sector support organisation, we want our sector to thrive . As we reach the midpoint of our 2021-2026 strategy we are reflecting on progress, listening to our stakeholders and refocussing our efforts on what the sector needs now in a post-Covid world. Staff turnover, including two long standing members of the senior management team, has allowed the Chief Executive and the Executive Committee the opportunity to look at the structure of the organisation and address any gaps in our staff team.

The Executive Committee is also working its own role as pertains to governance and the balance of strategic and operational input.

We are implementing an upgrade and reorganisation of NICVA’s websites to connect them to our backend CRM to allow more automation of processes that will streamline and improve our digital offering to members. We expect the initial build to be completed before the end of the financial year.

Structure, governance and management

Governing document

The Northern Ireland Council for Voluntary Action (NICVA) is a company limited by guarantee governed by its Memorandum and Articles of Association, dated 1 August 1944, and amended as at 5 September 2001, 20 November 2009, 19 November 2010, 10 December 2015 and 11 December 2020.

Appointment of Executive Committee

NICVA is governed by an Executive Committee elected by its member organisations on an annual basis through a postal ballot using the single transferable vote system. All NICVA members are invited to nominate to the Committee which consists of 12 people elected for a three-year period. Elected members, on completion of their three-year term, may stand for re-election if they so wish. One third (or the number nearest one third) of the Committee so elected must retire at each annual general meeting, those longest in office retiring first. For this financial year, there was five places for Executive Committee members. Following a formal process, five nominations were received. With five nominees and five places available, it was deemed unnecessary to carry out an election. The five nominees were duly elected at the AGM.

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:

Ms O Lyner Ms C Brooks Mr M Briggs (Resigned 9 December 2022) Ms D Hayward Ms P Lewsley-Mooney CBE Mr D McCluskey (Resigned 9 December 2022) Mr L Devine Ms B Arthurs Ms O Black Ms H Weir Mr S Dallas Ms S E Didrichsen (Appointed 9 December 2022) Ms A Roberts (Appointed 9 December 2022) Ms M Cavanagh (Appointed 9 December 2022)

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Committee induction and training

New Executive Committee members undergo induction training to brief them on roles and responsibilities and their legal obligations under charity and company law, the Committee and the decision-making processes, the strategic and operational planning processes, the organisational structure, and key organisational activities. Executive Committee members are provided with copies of the NICVA Governance Manual which includes the following:

Organisational structure

The Executive Committee ensures the good governance of the organisation by setting its strategic objectives and policy direction through NICVA’s five-year strategic plan, and monitoring progress on this through the annual operational planning process. The Committee meets every six weeks and the Resources Sub-Committee which deals with the human and financial resources of the organisation meets on a quarterly basis. The Chief Executive, appointed by the Committee, manages the day-to-day operations of the organisation. To facilitate effective operations, the Chief Executive has delegated authority for operational matters including the application and monitoring of strategic and operational objectives.

Related parties

NICVA is an independent organisation, and all operations are carried out in accordance with this. By the nature of the objects of the charity, NICVA works closely with its members, representing their interests to government bodies and funders as appropriate. NICVA continues to support its social economy business, Sector Matters Limited, a wholly owned subsidiary of NICVA, which was established in November 2009.

Risk management

Financial risks are assessed by the organisation through the Resources Committee on a quarterly and annual basis. Core funding is provided by the Department for Communities (DfC) which periodically conducts a Risk Assessment on all funded organisations. NICVA has retained its low risk status demonstrating that robust financial systems and controls are in place. As part of the governance review process, the NICVA Risk Register was reviewed and updated during the year. NICVA continues to monitor all procedures associated with risk management.

Pay policy for senior staff

The Trustees (Executive Committee) all give of their time freely and no Trustee received remuneration in the year.

The organisation has adapted the National Joint Council (NJC) pay scales for its use for many years following an independent job evaluation. The result of the job evaluation was a recommendation of pay points for each grade within the organisation including the Senior Management Team. These pay scales were set based on an external benchmarking exercise against roles with similar job roles and levels of responsibility.

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Funds held as custodian trustee

NICVA administers the Cheques for Charity scheme whereby they receive, claim gift aid and hold monies on behalf of donors and disburse according to their instructions. Details of these restricted funds are included within notes 19 and 27 to the accounts.

Conduit funding

NICVA is responsible for receiving and distributing funds on behalf of the Department for Communities. £209,163 (2022 - £191,814) was received and distributed during the year and no balance was held in relation to these monies at 31 March 2023.

Statement of trustees' responsibilities

The trustees, who are also the directors of Northern Ireland Council for Voluntary Action for the purpose of company law, are responsible for preparing the Trustees' Report and the group 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 group and parent charitable company and of the incoming resources and application of resources, including the income and expenditure, of the group for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the group and charitable company 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.

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Small companies exemption

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

Disclosure of information to auditor

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.

Ms C McStravick

Company Secretary

Dated: 2 November 2023

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

Opinion

We have audited the financial statements of Northern Ireland Council for Voluntary Action (the ‘parent charitable company’) and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the consolidated statement of financial activities, the consolidated balance sheet, the charity balance sheet, the consolidated statement of cash flows and the notes to the financial statements, including a summary of 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:

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 group and parent charitable company 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.

Conclusions relating to going concern

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 group and parent charitable company’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.

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INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE MEMBERS OF NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

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:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charitable company 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:

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INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE MEMBERS OF NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

Responsibilities of trustees

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 group's and parent charitable company’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.

Auditor's responsibilities for the audit of the financial statements

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.

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INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE MEMBERS OF NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing potential risks of material misstatement in respect of irregularities, including fraud and non-compliances with laws and regulations, we considered the following:

As a result of these procedures, we considered the opportunities and incentives that may exist within the group for fraud and identified the greatest potential for fraud in income recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006, and local tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group’s ability to operate or to avoid a material penalty.

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INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE MEMBERS OF NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

Audit response to risks identified

Our procedures to respond to the risks identified included the following:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as they may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect noncompliance with all laws and regulations.

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.

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INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE MEMBERS OF NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

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.

Mrs Susan Dunlop FCA (Senior Statutory Auditor) for and on behalf of GMcG BELFAST

2 November 2023

Chartered Accountants Statutory Auditor

Alfred House 19 Alfred Street Belfast BT2 8EQ

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CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income and endowments from:
Donations and legacies
3
773,695
73,980
Charitable activities
4
598,142
210,332
Other trading activities
5
9,713
-
Investments
6
5,799
-
Movement in pension
provision
7
1,952
-
Total income
1,389,301
284,312
Expenditure on:
Raising funds
8
10,894
-
Charitable activities
9
1,425,235
257,375
Total resources
expended
1,436,129
257,375
Net (expenditure)/income for
the year/
Net movement in funds
(46,828)
26,937
Fund balances at 1 April
2022
1,145,451
1,085,434
Fund balances at 31
March 2023
1,098,623
1,112,371		 Total Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
847,675
774,069
100,459
808,474
611,277
298,893
9,713
16,525
-
5,799
180
-
1,952
17,340
-
1,673,613
1,419,391
399,352
10,894
17,757
-
1,682,610
1,365,234
283,606
1,693,504
1,382,991
283,606
(19,891)
36,400
115,746
2,230,885
1,109,051
969,688
2,210,994
1,145,451
1,085,434		 Total
2022
£
874,528
910,170
16,525
180
17,340
1,818,743
17,757
1,648,840
1,666,597
152,146
2,078,739
2,230,885

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

CONSOLIDATED BALANCE SHEET

AS AT 31 MARCH 2023

2023 2022
Notes £ £ £ £
Fixed assets
Tangible assets 13 1,339,639 1,377,748
Current assets
Debtors 15 413,233 440,912
Cash at bank and in hand 2,636,674 2,884,867
3,049,907 3,325,779
Creditors: amounts falling due within
one year 16 (2,112,655) (2,388,776)
Net current assets 937,252 937,003
Total assets less current liabilities 2,276,891 2,314,751
Provisions for liabilities
Defined benefit pension liability 18 65,897 83,866
(65,897) (83,866)
Net assets 2,210,994 2,230,885
Income funds
Restricted funds 19 1,112,371 1,085,434
Unrestricted funds
Designated funds 20 151,536 155,769
General unrestricted funds 1,012,984 1,073,548
Pension reserve (65,897) (83,866)
1,098,623 1,145,451
2,210,994 2,230,885

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 2 November 2023 and signed on their behalf by:

Ms O Lyner Ms C Brooks Trustee Trustee

Company Registration No. NI001792

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CHARITY BALANCE SHEET

AS AT 31 MARCH 2023

2023 2022
Notes £ £ £ £
Fixed assets
Tangible assets 13 1,339,638 1,377,747
Investments 14 1 1
1,339,639 1,377,748
Current assets
Debtors 15 424,197 451,562
Cash at bank and in hand 2,608,539 2,859,432
3,032,736 3,310,994
Creditors: amounts falling due within
one year 16 (2,110,484) (2,385,145)
Net current assets 922,252 925,849
Total assets less current liabilities 2,261,891 2,303,597
Provisions for liabilities
Defined benefit pension liability 18 65,897 83,866
(65,897) (83,866)
Net assets 2,195,994 2,219,731
Income funds
Restricted funds 19 1,112,371 1,085,434
Unrestricted funds
Designated funds 20 151,536 155,769
General unrestricted funds 997,984 1,062,394
Pension reserve (65,897) (83,866)
1,083,623 1,134,297
2,195,994 2,219,731

As permitted by S408 Companies Act 2006, the chartiable company has not presented its own profit and loss account and related notes. The charitable company's deficit for the year was £23,737 (2022 - surplus of £145,946).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 2 November 2023 and signed on their behalf by:

Ms O Lyner Ms C Brooks
Trustee Trustee
Company Registration No. NI001792

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2023

Notes
Cash flows from operating activities
Cash absorbed by operations
25
Investing activities
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
Net cash used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
£
£
(220,760)
(33,232)
5,799
(27,433)
-
(248,193)
2,884,867
2,636,674		 2022
£
£
(180,793)
(8,547)
180
(8,367)
-
(189,160)
3,074,028
2,884,868

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Charity information

Northern Ireland Council for Voluntary Action is a private company limited by guarantee incorporated in Northern Ireland. The registered office is 61 Duncairn Gardens, Belfast, BT15 2GB.

1.1 Accounting convention

The financial statements have been prepared in accordance with 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 is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Basis of consolidation

The financial statements consolidate the accounts of Northern Ireland Council for Voluntary Action and all of its subsidiary undertakings ('subsidiaries').

The charity has taken advantage of the exemption contained within section 408 of the Companies Act 2006 not to present its own Income and Expenditure Account.

The income and expenditure account for the year dealt with in the accounts of the charity was net expenditure of £23,737 (2022 - net income of £145,946).

1.3 Going concern

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.

1.4 Charitable funds

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

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

Restricted funds are subject to specific conditions by donors 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.

Investment income, gains and losses are allocated to the appropriate fund.

1.5 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

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.

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies (Continued)

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Where funding is received and subsequently distributed to other organisations in accordance with the donor’s instructions it is treated as conduit funding and, therefore, is not recognised in the Statement of Financial Activities.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

Trading income represents net sales to customers and excludes Value Added Tax. Trading income is recognised upon provision of the service to the customer.

1.6 Resources expended

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 allocated on the portion of the asset’s use.

Support costs are those costs incurred directly in support of expenditure on the objects of the charity. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and Governance costs are costs incurred on the charity's operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.

All expenditure is inclusive of irrecoverable VAT.

1.7 Tangible fixed assets

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:

Leasehold land and buildings 2% straight line Fixtures and fittings 15% reducing balance Computers 33.33% straight line

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies (Continued)

Land is not depreciated.

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.

1.8 Fixed asset investments

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.

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible 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).

1.10 Cash and cash equivalents

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.

1.11 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies (Continued)

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Retirement benefits

In prior years the charity contributed to a multi-employer defined benefit pension scheme, NICPS, and to The Growth Plan, and the charity is committed to making payments of £1,740 per month to make good prior year deficits. The Schemes closed on 31 March 2009.

A provision is recognised for the contributions payable that arose from the agreements with NICPS and The Growth Plan to fund the prior year deficits.

NICVA operates a Qualifying Workplace Pension Scheme provided by Legal And General. Staff are auto enrolled to the scheme at the statutory minimum contribution rates. The NICVA executive have offered an opportunity for employees to increase their contributions to a higher tier whereby if an employee contributes 5% the employer will also contribute 5%. Contributions to this Scheme by the charity have therefore been accounted for by charging costs as payments accrue.

1.14 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

2 Critical accounting estimates and judgements (Continued)

Key sources of estimation uncertainty

Fixed Assets

The annual depreciation charge on fixed assets depends primarily on the estimated lives of each type of asset and estimates of residual values. The directors regularly review these asset lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset lives can have a significant impact on depreciation and amortisation charges for the period. Detail of the useful lives is included in the accounting policies.

Debtors

Short term debtors are measured at transaction price, less any impairment. Impairment of such debtors involves some estimation uncertainty.

Multi-employer Defined Benefit Pension Scheme Liability

The pension scheme liability is in relation to the contributions payable that have arisen from an agreement with a multi-employer plan to fund a deficit and is based on certain assumptions as detailed in note 18.

Restricted and Unrestricted Funds

Judgements are made in relation to allocation of income and expenditure to restricted and unrestricted funds. The directors consider it appropriate to allocate these funds based on interpretation of donations received.

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2023
2023
£
£
Donations and gifts
1,904
-
Legacies receivable
67
-
Department for
Communities - Core
Activities
740,424
-
Covid-19 Funding
-
-
Coronavirus Job
Retention Scheme
-
-
Charities Aid Foundation
(via NCVO)
31,300
-
Cheques for Charity
-
73,980
773,695
73,980		 Total Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
1,904
828
-
67
18,241
-
740,424
686,888
-
-
38,998
-
-
3,770
-
31,300
25,344
-
73,980
-
100,459
847,675
774,069
100,459		 Total
2022
£
828
18,241
686,888
38,998
3,770
25,344
100,459
874,528

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

4 Charitable activities

Earned income
Services provided under contract
Performance related grants
Cheques for Charity
Movement in deferred income
Analysis by fund
Unrestricted funds
Restricted funds
Performance related grants
Department for Communities - Faith Strand
Department for Communities - Shared Island
Department for Communities - Carbon Reduction Project
Department for Communities - Cyber Security Awareness
Peace IV - The Next Chapter
Department for Communities - Skills Match
Department for Communities - Cost of Living
Department for Communities - Fuel Grant
Dormant Accounts
Department for Communities - Community API
Safe Return Fund		 2023
£
367,598
215,377
200,857
2,820
21,822
808,474
598,142
210,332
808,474
-
15,000
-
-
-
-
170,000
3,000
12,357
500
-
200,857		 2022
£
352,495
262,753
308,521
3,911
(17,510)
910,170
611,277
298,893
910,170
50,968
50,000
150,000
29,400
22
5,445
-
-
-
19,950
2,736
308,521

Services provided under contract includes The Executive Office CIT £nil (2022 - £38,093), Belfast City Council £75,663 (2022 - £224,660) and Community Foundation NI £139,714 (2022 - £nil).

The Board considers the Charity to have one main charitable activity, being the alleviation of disadvantage amongst communities, families and individuals through the provision of information, advice, training and development services to community and voluntary groups in Northern Ireland.

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

5 Other trading activities

Unrestricted Total
funds
2023 2022
£ £
Trading activity income 9,713 16,525
6 Investments
**Unrestricted ** Unrestricted
funds funds
2023 2022
£ £
Interest receivable 5,799 180
7 Movement in pension provision
Unrestricted Total
funds
2023 2022
£ £
Unwinding of the discount factor (interest expense) (1,919) (1,043)
Remeasurements - impact of any change in assumptions 3,871 3,648
Remeasurements - amendments to the contribution schedule - 14,735
1,952 17,340

Further information in relation to the pension provision is provided in note 18.

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

8 Raising funds

Unrestricted
funds
2023
£
Fundraising and publicity
Advertising
5,027
Administration expenses
5,867
Fundraising and publicity
10,894
10,894		 Total
2022
£
7,432
10,325
17,757
17,757

9 Charitable activities

Staff costs
Depreciation and impairment
Recruitment
Travel and subsistence
Affiliation fees, reference books and publications
Research costs
Consultancy
Training course expenses
Seminars and conferences
Printing and stationery
Telephone and postage
Cheques for charity
Third party grant expenditure
Pension scheme management costs
Share of support costs (see note 10)
Share of governance costs (see note 10)
Analysis by fund
Unrestricted funds
Restricted funds		 2023
£
935,687
18,178
19,026
9,230
1,040
20,224
37,811
102,503
51,833
39,000
14,654
77,323
348
9,536
1,336,393
335,766
10,451
1,682,610
1,425,235
257,375
1,682,610		 2022
£
916,221
17,789
1,604
3,147
1,330
40,781
54,888
122,459
31,141
34,488
15,188
107,452
-
10,187
1,356,675
282,970
9,195
1,648,840
1,365,234
283,606
1,648,840

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

10
Support costs
Staff costs
Depreciation
Printing and stationery
Telephone and postage
Rent, insurance and
service charges
Cleaning, heat and light
Repairs and
maintenance
Equipment rental
General expenses
Bank charges and hire
purchase interest
Loss on disposal
Bad debts provision
Audit fees
Legal and professional
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
178,352
-
53,114
-
6,873
-
2,577
-
32,970
-
33,955
-
19,259
-
1,947
-
4,858
-
1,812
-
49
-
-
-
-
6,950
-
3,501
335,766
10,451
335,766
10,451		 2023
£
178,352
53,114
6,873
2,577
32,970
33,955
19,259
1,947
4,858
1,812
49
-
6,950
3,501
346,217
346,217		 Support
costs
Governance
costs
£
£
156,835
-
44,281
-
5,503
-
2,401
-
30,088
-
24,756
-
11,761
-
956
-
3,373
-
1,601
-
-
-
1,415
-
-
6,120
-
3,075
282,970
9,195
282,970
9,195		 2022
£
156,835
44,281
5,503
2,401
30,088
24,756
11,761
956
3,373
1,601
-
1,415
6,120
3,075
292,165
292,165

Governance costs includes payments to the auditors of £6,300 (2022- £6,120) for audit fees.

11 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year, but five of them were reimbursed a total of £332 for travelling expenses (2022 - £nil).

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

12 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs
The number of employees whose annual remuneration was £60,000 or more
were:
In the band £60,001 - £70,000
In the band £80,001 - £90,000
In the band £90,001 - £100,000		 2023
Number
31
2023
£
983,877
89,835
40,327
1,114,039
2023
Number
1
1
-		 2022
Number
30
2022
£
938,038
93,372
41,646
1,073,056
2022
Number
1
-
1

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

13
Tangible fixed assets
Group
Cost
At 1 April 2022
Additions
Disposals
At 31 March 2023
Depreciation and impairment
At 1 April 2022
Depreciation charged in the year
Eliminated in respect of disposals
At 31 March 2023
Carrying amount
At 31 March 2023
At 31 March 2022
Charity
Cost
At 1 April 2022
Additions
Disposals
At 31 March 2023
Depreciation and impairment
At 1 April 2022
Depreciation charged in the year
Eliminated in respect of disposals
At 31 March 2023
Carrying amount
At 31 March 2023
At 31 March 2022		 Leasehold
land and
buildings
Fixtures and
fittings
£
£
2,109,407
225,255
-
23,661
-
(1,602)
2,109,407
247,314
802,791
183,724
46,007
7,107
-
(1,553)
848,798
189,278
1,260,609
58,036
1,306,616
41,531
Leasehold
land and
buildings
Fixtures and
fittings
£
£
2,109,407
225,017
-
23,661
-
(1,364)
2,109,407
247,314
802,791
183,486
46,007
7,107
-
(1,315)
848,798
189,278
1,260,609
58,036
1,306,616
41,531		 Computers
£
176,275
9,571
(48,789)
137,057
146,674
18,178
(48,789)
116,063
20,994
29,601
Computers
£
175,941
9,571
(48,456)
137,056
146,341
18,178
(48,456)
116,063
20,993
29,600		 Total
£
2,510,937
33,232
(50,391)
2,493,778
1,133,189
71,292
(50,342)
1,154,139
1,339,639
1,377,748
Total
£
2,510,365
33,232
(49,820)
2,493,777
1,132,618
71,292
(49,771)
1,154,139
1,339,638
1,377,747

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

13 Tangible fixed assets (Continued)

Included in land and buildings is land at a cost of £67,051 (2022 - £67,051) which is not depreciated.

14 Fixed asset investments

Other
investments
Charity
Cost or valuation
At 1 April 2022 & 31 March 2023 1
Carrying amount
At 31 March 2023 1
At 31 March 2022 1
2023 2022
Other investments comprise: Notes £ £
Investments in subsidiaries 24 1 1

All fixed asset investments are held in the UK.

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

15
Debtors
Amounts falling due within one year:
Group
Trade debtors
Other debtors
Prepayments and accrued income
Charity
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income
16
Creditors: amounts falling due within one year
Notes
Group
Other taxation and social security
Deferred income
17
Trade creditors
Other creditors
Accruals and deferred income
Charity
Other taxation and social security
Deferred income
17
Trade creditors
Other creditors
Accruals and accrued income		 2023
£
181,114
220,228
11,891
413,233
180,184
13,000
220,228
10,785
424,197
2023
£
25,228
1,169,408
60,560
784,661
72,798
2,112,655
24,777
1,169,408
60,229
784,661
71,409
2,110,484		 2022
£
95,357
335,108
10,447
440,912
94,064
13,000
335,108
9,390
451,562
2022
£
35,895
1,191,230
215,285
863,047
83,319
2,388,776
33,606
1,191,230
215,285
863,047
81,977
2,385,145

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

17
Deferred income
Other deferred income
Deferred income is included in the financial statements as follows:
Deferred income is included within:
Current liabilities
Movements in the year:
Deferred income at 1 April 2022
Released from previous periods
Resources deferred in the year
Deferred income at 31 March 2023		 2023
£
1,169,408
2023
£
1,169,408
1,191,230
(61,230)
39,408
1,169,408		 2022
£
1,191,230
2022
£
1,191,230
1,173,720
(43,720)
61,230
1,191,230

The deferred income arises in respect of income being received in the year which relates to a future accounting period and in respect of income received in the year where conditions for recognition have not been satisfied. The income will be released to the Statement of Financial Activities in the period to which it relates.

18 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £40,327 (2022 - £41,646).

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

18 Retirement benefit schemes (Continued)

Defined benefit schemes

In prior years the Charity contributed to the Northern Ireland Charities Pension Scheme (‘the Scheme’), which is a funded multi-employer defined benefit scheme. The Scheme is not contracted-out of the State scheme.

The Northern Ireland Charities Pension Scheme closed to future accrual on 31 March 2009. There is currently no intention to wind-up the Scheme and it continues in paid-up form.

The Pension Trust commissions an actuarial valuation of the Scheme every three years. The main purpose of the valuation is to determine the financial position of the Scheme in order to determine the level of future contributions required so that the Scheme can meet its pension obligations as they fall due.

The actuarial valuation assesses whether the Scheme’s assets at the valuation date are likely to be sufficient to pay the pension benefits accrued by members as at the valuation date. Asset values are calculated by reference to market levels. Accrued pension benefits are valued by discounting expected future benefit payments using a discount rate calculated by reference to the expected future investment returns.

During the year NICVA paid contributions of £25,553 to cover the deficit payments and Scheme management costs.

It is not possible in the normal course of events to identify the share of underlying assets and liabilities belonging to individual participating employers. This is because the Scheme is a multi-employer scheme, where the assets are co-mingled for investment purposes, and benefits are paid out of total Scheme assets.

The last formal completed valuation of the Scheme was performed as at 30 September 2019 by a professionally qualified actuary using the ‘projected unit credit’ method. The market value of the Scheme’s assets at the valuation date was £35.4 million. The valuation revealed a shortfall of assets compared to liabilities of £2.4 million.

The Scheme Actuary has prepared a Triennial Valuation that provides an approximate update on the funding position of the Scheme as at 30 September 2022. Such a report is required by legislation for years in which a full actuarial valuation is not carried out. The funding update revealed a decrease in the assets of the Scheme to £22.8 million (from £35.4 million at 30 September 2019) and indicated an increase in the shortfall of assets compared to liabilities of approximately £3.2m (from £2.4 million at 30 September 2019), equivalent to a past service funding level of 88% (94% at 30 September 2019).

Given the results of the draft 2022 valuation, this may warrant a change to the deficit recovery plan to fund the deficit of £3.2 million. It is anticipated that this will be implemented from 1 April 2024 and would run until 29 February 2028, following agreement by all employers, and that this may increase the repayments.

Following a change in legislation in September 2005 there is a potential debt on the employer that could be levied by the Trustee of the Scheme. The debt is due in the event of the employer ceasing to participate in the Scheme or the Scheme winding up.

The debt for the Scheme as a whole is calculated by comparing the liabilities for the Scheme (calculated on a buy-out basis i.e. the cost of securing benefits by purchasing annuity policies from an insurer, plus an allowance for expenses) with the assets of the Scheme. If the liabilities exceed assets there is a buy-out debt.

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

18 Retirement benefit schemes (Continued)

The leaving employer’s share of the buy-out debt is the proportion of the Scheme’s liability attributable to employment with the leaving employer compared to the total amount of the Scheme’s liabilities (relating to employment with all the currently participating employers). The leaving employer’s debt therefore includes a share of any ‘orphan’ liabilities in respect of previously participating employers. The amount of the debt therefore depends on many factors including total Scheme liabilities, Scheme investment performance, the liabilities in respect of current and former employees of the employer, financial conditions at the time of the cessation event and the insurance buy-out market. The amounts of debt can therefore be volatile over time.

Under FRS 102, where an entity participates in a multi-employer plan, and the entity had entered into an agreement with the multi-employer plan that determines how the entity will fund a deficit, the entity shall recognise a liability for the contributions payable that arise from the agreement and the resulting expense in the Statement of Financial Activities.

The liabilities for the Northern Ireland Charities Pension Scheme as noted above, and The Growth Plan, which is also a funded multi-employer defined benefit scheme which the Charity contributed to in prior years, are shown in the tables below.

Movements in the present value of defined benefit obligations:

Movements in the present value of defined benefit obligations:
2023
£
Liabilities at 1 April 2022 83,866
Benefits paid (16,017)
Actuarial gains and losses (3,871)
Interest cost 1,919
At 31 March 2023 65,897

The total provision is £65,897 (2022 - £83,866).

The above provisions have assumed a discount rate of 5.15% per annum (2022 - 2.56% per annum) for the Northern Ireland Charities Pension Scheme, and 5.52% per annum (2022 - 2.35% per annum) for The Growth Plan, and are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

NICVA believes that as a responsible employer it should provide the opportunity of a pension scheme for all staff. NICVA operates a Qualifying Workplace Pension Scheme provided by Legal And General. Staff are auto enrolled to the scheme at the statutory minimum contribution rates. The NICVA executive have offered an opportunity for employees to increase their contributions to a higher tier whereby if an employee contributes 5% the employer will also contribute 5%.

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

19 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 April 2021
£
Atlantic Philanthropies (Property)
271,400
Belfast Regeneration Office (Property)
202,057
Big Lottery (Property)
311,520
DSD Capital Grants
18,711
CFC Client Funds
165,930
Peace lll Vital Links
70
Dormant Accounts
-
Department for Communities - Faith Strand
-
Peace IV - The Next Chapter
-
Department for Communities Projects
-
Halifax
-
969,688		 Movement in funds
Incoming
resources
Resources
expended
Balance at
1 April 2022
£
£
£
-
(9,200)
262,200
-
(6,849)
195,208
-
(10,560)
300,960
-
(661)
18,050
100,458
(107,453)
158,935
-
(11)
59
-
-
-
54,051
(54,051)
-
22
-
22
234,846
(84,846)
150,000
9,975
(9,975)
-
399,352
(283,606)
1,085,434		 Movement in funds
Incoming
resources
Resources
expended
31
£
£
-
(9,200)
-
(6,849)
-
(10,560)
-
(656)
73,980
(77,323)
-
(9)
12,357
(12,181)
-
-
-
(22)
188,000
(130,600)
9,975
(9,975)
284,312
(257,375)		 Balance at
March 2023
£
253,000
188,359
290,400
17,394
155,592
50
176
-
-
207,400
-
1,112,371

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

19 Restricted funds (Continued)

Atlantic Philanthropies (Property)

A restricted donation to assist with the cost of building NICVA’s regional community resource centre at Duncairn Gardens, Belfast.

Belfast Regeneration Office (Property)

A restricted grant to assist with the cost of building NICVA’s regional community resource centre at Duncairn Gardens, Belfast.

Big Lottery (Property)

A restricted grant to assist with the cost of building NICVA’s regional community resource centre at Duncairn Gardens, Belfast.

DSD – Capital Grants

A fund from year end additional grants from Department for Social Development for specific projects.

Cheques For Charity (CFC) Client Funds

A fund to receive, claim gift aid and hold monies on behalf of donors. NICVA disburses the monies according to the donors instructions.

Peace III - Vital Links

The Vital Links project is part-financed by the European Union's European Regional Development Fund through the EU Programme for Peace and Reconciliation (PEACE III) managed by the Special EU Programmes Body. Funded for three years, the aim of the Vital Links project is to increase the interaction and understanding of the key institutions, the voluntary and community sector and foster and promote positive engagement. Vital Links delivers a programme of free training, seminars, conferences and publications.

Dormant Accounts

The National Lottery Northern Ireland Dormant Account Funds in Jan 2023 is to futureproof digital systems to ensure its support and services for the sector. Over the course of the two year project we will seek feedback from stakeholders to redesign and redevelop the NICVA sites.

Regional infrastructure Support Programme (RISP) – Faith Strand

The Department for Communities, through the Regional Infrastructure Support Programme (RISP), provides support, training, advice, advocacy, information and resource services to those Faith Based Organisations interested in or engaged in community work as an expression of the church's mission.

The Department’s aim is to promote the role of faith based organisations in serving the needs of disadvantaged communities across Northern Ireland. In 2016, the Department funded NICVA and RCN to deliver this support pending the outcome of the review of RISP.

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

19 Restricted funds (Continued)

Peace IV - The Next Chapter

NICVA launched a two-year, cross-border partnership project ‘The Next Chapter’. The project is funded under the PEACE IV programme and the lead partner is Politics Plus. The project aims to encourage and support greater participation by women in politics and public life by establishing 10 local networks or ‘Chapters’ involving 300 women from across Northern Ireland and the Border Counties and providing networking, development, and training opportunities and supporting the development of local chapter projects.

Department for Communities projects

Project Title: Community Application Programming Interface (Community API)

This project involved the development of a pilot project “CommunityAPI” running on the CommunityNI platform. The pilot provides a directory of health & wellbeing services provided by Charities, Voluntary, Community and Social Enterprise organisations in North Belfast.

Project Title: DfC Shared Island: Shared Practices project, iCommunity

This project was launched in partnership with the Wheel in Dec 21. It aims to promote closer collaboration between the voluntary and community sectors across the island of Ireland. It has five key themes; rural connectivity & sustainability; recovery from the Covid-19 pandemic; developing the island economy & social enterprise; digital connectedness & inclusion; and achieving a just transition to a de-carbonized and sustainable island. Following its launch in Dec 21, a series of events and activities were scheduled. The project will run throughout 2022/2023.

Project Title: DfC Cyber security sector programme

NICVA received funding to promote the importance of cyber security for organisations within the sector. Through this funding web resources were developed and promoted across the sector. In addition, bespoke Cyber Security Clinics were held with organisations on request.

Project Title: DfC Carbon reduction Grant

NICVA received funding to work towards reducing its carbon footprint. This year NICVA’s boiler was replaced, and its heating system upgraded to ensure it was more energy efficient and environmentally friendly.

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

19 Restricted funds (Continued)

Project Title: DfC Cost of Living Proposals

Funding was received to provide the sector with additional support to navigate the Cost of Living Crisis. With this funding organisations within the sector were able to apply for bursaries to access Grant Tracker and accredited Institute of Leadership and Management training. With the bursaries, organisations were able to build their capacity and sustainability with access to relevant funds and developing leadership skills within their organisation. In addition, NICVA held six Cost of Living seminars across Northen Ireland in partnership with local networks, to establish the full extent of the impacts of the cost of living on the sector and to hear the stories behind the statistics. The findings were collated in a report and made available through the NICVA communication channels.

Project Title: DfC Fuel Grant

The DfC fuel grant was a one of payment towards increased energy costs. DfC recognised the challenges faced by organisations with the rise in Gas and Electricity prices

Halifax

This two-year programme started in April 21. Through this funding by March 2023 NICVA will have created four online finance tutorials and hosted two seminars to promote the tutorials. The tutorials are designed to help treasurers and trustees of small to medium sized organisations within the sector. They are accessible to those for whom English is not their first language. The Tutorials are available with Irish and British sign language interpretation and English subtitles can be translated into other languages.

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

20 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Balance at
1 April 2021
£
Designated Premises Reserve
160,002
160,002
21
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2023
2023
£
£
Fund balances at 31
March 2023 are
represented by:
Tangible assets
447,939
891,700
Current assets/(liabilities)
716,581
220,671
Provisions and
pensions
(65,897)
-
1,098,623
1,112,371		 Resources
expended
Balance at
1 April 2022
Resources
expended
31
£
£
£
(4,233)
155,769
(4,233)
(4,233)
155,769
(4,233)
Total Unrestricted
funds
Restricted
funds
2023
2022
2022
£
£
£
1,339,639
451,273
926,475
937,252
778,044
158,959
(65,897)
(83,866)
-
2,210,994
1,145,451
1,085,434		 Balance at
March 2023
£
151,536
151,536
Total
2022
£
1,377,748
937,003
(83,866)
2,230,885

22 Explanatory notes to the reserves funds

Unrestricted funds

Designated Premises Reserve

This is a designated fund NICVA established to facilitate the construction and maintenance of their premises at Duncairn Gardens, Belfast.

The purpose of the fund is to ensure resources are retained for the upkeep of the conference facilities and offices to include general repair work, building maintenance and decorating, as and when required.

General Unrestricted Fund

This fund is the result of NICVA's strategic objective to establish reserves which would allow NICVA to operate for 12 months without other sources of income.

Pension reserve

The pension reserve represents contributions payable under an agreement with NICPS to fund prior year deficits. The transfer from unrestricted funds into the pension reserve relates to deficit contributions paid in the year.

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

23 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023 2022
£ £
Aggregate compensation 279,562 298,027

The trustees have taken adantage of the exemption from disclosing related party transactions with other wholly owned group companies, in accordance with FRS 102.

There were no other transactions with related parties requiring disclosure.

24 Subsidiaries

Details of the charity's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered		 Nature of business Class of % Held % Held
office shares held **Direct ** Indirect
Sector Matters Limited
Northern Ireland		 The provision of HR, financial Ordinary 100.00
and other support services to
the voluntary and community
sector and to small
businesses.
25 Cash generated from operations 2023 2022
£ £
(Deficit)/surpus for the year (19,891) 152,146
Adjustments for:
Investment income recognised in statement of financial activities (5,799) (180)
Depreciation and impairment of tangible fixed assets 71,292 62,068
Difference between pension charge and cash contributions (17,969) (38,225)
Movements in working capital:
Decrease/(increase) in debtors 27,679 (136,844)
(Decrease) in creditors (254,250) (237,268)
(Decrease)/increase in deferred income (21,822) 17,510
Cash absorbed by operations (220,760) (180,793)
26 Analysis of changes in net funds

The charity had no debt during the year.

NORTHERN IRELAND COUNCIL FOR VOLUNTARY ACTION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

27 Cheques for charity

NICVA administers the Cheques for Charity scheme, whereby they receive, claim gift aid and hold monies on behalf of donors and disburse according to their instructions. During the year NICVA received £73,980 (2022 - £100,458) of Cheques for Charity donations, with £77,323 (2022 - £107,453) being dispersed to charitable organisations as instructed by the donors.

28 Conduit funding

NICVA is responsible for receiving and distributing funds on behalf of the Department for Communities. During the year £209,163 (2022 - £191,814) was received and distributed and no balance was held in relation to these monies at 31 March 2023.

29 Financial commitments, guarantees and contingent liabilities

(i) A portion of grants received may become repayable if the Charity fails to comply with the terms of the letter of offer.

(ii) During the year the charity received correspondence from The Pensions Trust in relation to a review the Trustee has undertaken regarding the application of changes to Northern Ireland Charities Pension Scheme benefits. The outcome of the review could give rise to an additional liability of approximately £137k.

After the year end further correspondence was received in relation to a potential new item that has come out of the review. It relates to changes in legislation made by the Government to the measure of inflation used for increasing pensions already in payment and how this interacts with members’ pensions provided under the Rules. It is anticipated that the Court will provide a ruling at the earliest in Q4 2024. At this stage the amount and likelihood of any additional liability arising from this change is not known.

The Pensions Trust have indicated that it is unlikely that any further liability will arise, therefore no provision for these items has been made in the financial statements.