## **CTS Ltd** ## **Statement of Financial Activities (including an income and expenditure account) For the Year Ended 31 March 2023** |||**Restricted**|**Unrestricted**||| |---|---|---|---|---|---| |||**funds**|**Funds**|**2023 Total**|**2022 Total**| ||**Notes**|**£**|**£**|**£**|**£**| |**Incoming Resources**|||||| |Incoming Resources from Generating Funds;|||||| |Voluntary Income|**2**|**-**|**45,190**|45,190|209,179| |Activities for Generating funds|**3**|**-**|**577,737**|577,737|515,090| |Other Incoming Resources|**4**|**-**|**10,750**|10,750|38,131| |Children In Need||**23,631**|**-**|23,631|43,903| |**Total Incoming Resources**||**23,631**|**633,677**|**657,308**|**806,303**| |**Resources Expended**|||||| |Purchases||**-**|**7,625**|7,625|539| |Staff Costs & Trainee Allowances|**6**|**29,547**|**267,764**|297,311|329,377| |Tutor & Programme Costs|**8**|**-**|**151,782**|151,782|110,820| |Establishment Costs||**-**|**34,273**|34,273|31,332| |Motor and Travelling Expenses||**-**|**3,480**|3,480|7,104| |Legal and Professional Fees||**-**|**1,435**|1,435|495| |Telephone & Subscriptions||**-**|**6,426**|6,426|4,853| |Other Office Expenses||**-**|**17,499**|17,499|16,316| |Depreciation and Impairment||**-**|**9,228**|9,228|10,855| |CSR Cards||**-**|**26,186**|26,186|36,695| |Bank Charges||**-**|**1,728**|1,728|1,660| |Advertising||**-**|**3,139**|3,139|5,009| |Audit||**-**|**3,240**|3,240|3,240| |**Total Resources Expended**||**29,547**|**533,805**|**563,352**|**558,295**| |**Net incoming/(outgoing) resources for the**
**year/Net income/(expense) for the year**||**(5,916)**|**99,872**|**93,956**|**248,008**| |Total Funds Brought Forward||**22,655**|**932,696**|**955,351**|**707,342**| |**Total Funds Carried Forward**||**16,739**|**1,032,568**|**1,049,307**|**955,350**| The statement of financial activities includes all gains and losses in the year and therefore a separate statement of total recognised gains and losses has not been prepared. All of the above amounts are classed as continuing activities. The notes on pages 13 to 20 form an integral part of the financial statements. **______________________________________________________________________________________________________** **SCC - Chartered Accountants and Statutory Auditors** 11 ## **CTS Ltd STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2023** |**Non-Current Assets**
Plant, Property & Equipment
**10**
**Current Assets**
Receivables
**11**
Cash and Cash Equivalents
**Payables**
Amounts falling due within one
year
**12 **
**Net Current Assets**
**Net Assets**
**Represented by:**
Ordinary Share Capital
Unrestricted Funds
Restricted Funds|**£**
**£**
**2,836**
**118,572**
**969,880**
**1,088,452**
**41,930**
**1,046,522**
**1,049,358**
52
1,032,567
16,739
**1,049,358**
**2023**|£
£
12,064
84,833
893,374
978,207
34,869
943,338
**955,402**
52
932,695
22,655
**955,402**
2022| |---|---|---| The financial statements were approved by the Board on 27 June 2023 and signed on their behalf by: **___________ _________ Sam Walker Leo Quinn Secretary Chairman** **______________________________________________________________________________________________________ SCC - Chartered Accountants and Statutory Auditors** 12 ## **CTS Ltd NOTES TO THE FINANCIAL STATEMENTS** ## **1. Accounting Policies** The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the charitable entities financial statements. ## **1.1 Basis of accounting** The Charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared on a going concern basis under the historical cost convention and in accordance with '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) and the Companies Act 2006. ## **1.2 Cash Flow Statement** The charitable entity has applied Update Bulletin 1 as published on 2 February 2016 and does not include a cash flow statement on the grounds that it is applying FRS 102 Section 1A. ## **1.3 Incoming resources** All incoming resources are included in the Statement of Financial Activities 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 is received by way of grants, donations and gifts and 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. Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included. Gifts donated for resale are included as incoming resources within activities for generating funds when they are sold. Grants, including grants for the purchase of fixed assets, are recognised in full in the Statement of Financial Activities in the year in which they are receivable. ## **1.4 Resources expended** Expenditure is recognised on an accrual basis as a liability is incurred. **______________________________________________________________________________________________________ SCC - Chartered Accountants and Statutory Auditors** 13 ## **CTS Ltd NOTES TO THE FINANCIAL STATEMENTS (Continued)** Expenditure includes any 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 and the costs of trading for fundraising purposes including the charity's shop. 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. Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management. ## **1.5 Fund Accounting** The charitable entity has two types of funds for which it is responsible at the year-end: **Unrestricted Funds** – Funds which are expendable at the discretion of the Trustees in furtherance of the objectives of the charitable entity. In addition, funds may be held in order to finance capital investment and working capital. **Designated Funds** – Monies which has been set aside to cover costs for 9 months in the event of a significant and unforeseen future reduction in funding. Designated Funds total 75% of the current year’s expenditure as follows: |**Designated Funds**
Purchases
Staff Costs & Trainee Allowances
Tutor & Programme Costs
Establishment costs
Motor and travelling expenses
Legal and professional fees
Telephone & Subscriptions
Other office expenses
Depreciation and impairment
CSR Cards
Bank Charges
Advertising
Audit
**Total Designated Funds**|**£**
5,719
200,823
113,836
25,705
2,610
1,076
4,820
13,124
6,921
19,640
1,296
2,354
2,430| |---|---| ||**400,354**| **______________________________________________________________________________________________________ SCC - Chartered Accountants and Statutory Auditors** 14 ## **CTS Ltd NOTES TO THE FINANCIAL STATEMENTS (Continued)** ## **1.6 Property, Plant and Equipment and Depreciation** Plant, Property and Equipment is stated at cost less accumulated depreciation. Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows: Leasehold Improvements - Straight line over lease Fixtures, fittings and equipment - 25% Straight line ## **1.7 Defined contribution pension schemes** Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises. ## **1.8 Trade and Other Receivables** Trade and other receivables are initially recorded at fair value and thereafter stated at cost less impairment losses for bad and doubtful debts. ## **1.9 Trade and Other payables** Trade and other payables are initially recognised at fair value and thereafter stated at cost. ## **1.10 Taxation** No current or deferred taxation arises as the company has been granted charitable exemption. Irrecoverable valued added tax is expensed as incurred. ## **1.11 Judgements and Key Sources of Estimation Uncertainty** The preparation of the financial statements requires management to make judgements, estimates and assumptions that effect the amounts reported. Management believed that the estimates, assumptions and judgements upon which it relies are reasonable based on the information available at the time that those estimates, assumptions and judgements are made. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. ## **2. Voluntary Income** |**2. Voluntary Income**|| |---|---| |Training for Success|**Unrestricted**
**2023**
**2022**
**funds**
**Total**
**Total**
**£**
**£**
**£**
56,906
56,906
209,179| ||56,906
56,906
209,179| **______________________________________________________________________________________________________ SCC - Chartered Accountants and Statutory Auditors** 15 ## **CTS Ltd** ## **NOTES TO THE FINANCIAL STATEMENTS (Continued)** ## **3. Activities for generating funds** |VEP
IEP
Coalisland Neighbourhood
CSR Courses
Other Workplace Courses
Moving to Success
IFI - Personal Youth Development|**Unrestricted**
**Funds**
**2023 Total 2022 Total**
**£**
**£**
**£**
103,066
103,066
17,000
31,500
31,500
20,160
8,618
8,618
42,790
60,732
60,732
80,788
222,396
222,396
130,640
117,837
117,837
114,635
33,588
33,588
109,077
**577,737**
**577,737**
**515,090**| |---|---| ## **4. Other incoming resources** |Misc Income
Access NI
Government Grants - COVID 19|**Unrestricted**
**Funds**
**2023 Total 2022 Total**
**£**
**£**
**£**
10,453
10,453
14,262
297
297
99
-
-
23,770
**10,750**
**10,750**
**38,131**| |---|---| ## **5. Net incoming resources for the year** |Net incoming resources is stated after charging:
Depreciation and other
amounts written off tangible
fixed assets|**2023 Total 2022 Total**
**£**
**£**
9,228
10,855
**9,228**
**10,855**| |---|---| **______________________________________________________________________________________________ SCC - Chartered Accountants and Statutory Auditors** 16 ## **CTS Ltd** ## **NOTES TO THE FINANCIAL STATEMENTS (Continued)** ## **6. Staff Costs, Trainee Allowances & Employee Benefits** |**Employment Costs**
Wages and Salaries
Pension Costs
Trainee Allowances & Other Staff Costs|**2023**
**2022**
**£**
**£**
209,881
220,736
31,824
31,949
55,606
76,692
**297,311**
**329,377**| |---|---| No employee received enoluments of more than £60,000 (2022: None). ## **Number of Employees** The average monthly number of employees (including the trustees) during the year, calculated on the basis of full time equivalents, was as follows: |Administration Staff
**7. Trustees' (Directors) Remuneration**|**2023**
**2022**
**Number**
**Number**
**10**
**10**| |---|---| No trustees' received any remuneration in the year (2022: nil). ## **8. Tutor & Programme Costs** |Tutor Costs
Programme Costs
**9. Share Capital**
Authorised - 52 Ordinary Shares of £1 each
Alloted & Fully Paid - 20 Ordinary Shares of £1 each
Unpaid - 32 Ordinary Shares of £1 each|**2023**
**2022**
**£**
**£**
92,148
90,127
59,634
20,693
**151,782**
**110,820**
**2023**
**2022**
**£**
**£**
52
52
20
20
32
32| |---|---| **_______________________________________________________________________________________________ SCC - Chartered Accountants and Statutory Auditors** 17 ## **CTS Ltd** ## **NOTES TO THE FINANCIAL STATEMENTS (Continued)** ## **10. Plant, Property & Equipment** **----- Start of picture text -----**
Fixtures,
Leasehold Fittings and
Improvements Equipment Total
£ £ £
Cost
At 1 April 2022 135,876 229,562 365,438
Additions - - -
At 31 March 2023 135,876 229,562 365,438
Depreciation
At 1 April 2022 135,876 217,498 353,374
-
Charge for the year 9,228 9,228
At 31 March 2023 135,876 226,726 362,602
Net book values
At 31 March 2023 - 2,836 2,836
-
At 1 April 2022 12,064 12,064
**----- End of picture text -----**
Tangible fixed assets are made up of Leasehold Improvements and Fixtures & Fittings. Leasehold property has been fully depreciated and Fixtures & Fittings is depreciated at 25% on a straight-line basis. At the 31st March 2023 the NBV of Fixtures & Fittings is £2,836 (2022: £12,064). The Leasehold Property is owned by Coalisland & District Development Association Ltd and rented to CTS Ltd. The agreement is set to expire on 1[st] November 2048. ## **11. Receivables** |Trade Receivables
Other Receivables|**2023**
**2022**
**£**
**£**
117,287
83,504
1,285
1,329
**118,572**
**84,833**| |---|---| **_________________________________________________________________________________________ SCC - Chartered Accountants and Statutory Auditors** 18 ## **CTS Ltd** ## **NOTES TO THE FINANCIAL STATEMENTS (Continued)** ## **12. Payables: amounts falling due within one year** |Trade Payables
Other Taxes and Social Security
Accruals and Deferred Income|**2023**
**2022**
**£**
**£**
-
-
3,973
4,763
37,957
30,106
**41,930**
**34,869**| |---|---| Within deferred income there is £24,489 that has been transferred into CTS Ltd's bank account from another charity, Coalisland Residents & Community Forum. This will be spent on matters relating to the objectives of that charity and will be released to the income and expenditure account as it is spent. ## **13. Analysis of Net Assets** |Fund balances at 31 March 2023 as represented by:
Plant, Property and Equipment
Current Assets
Current Liabilities|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total Funds**
**£**
**£**
**£**
2,836
-
2,836
1,071,713
16,739
1,088,452
(41,930)
-
(41,930)
**1,032,619**
**16,739**
**1,049,358**| |---|---| ## **14. Unrestricted Funds** |Total Free Reserves|**At 1 April**
**2022**
**Incoming**
**Resources**
**Outgoing**
**Resources**
**Capital**
**Purchases**
**At 31 March**
**2023**
**£**
**£**
**£**
**£**
**£**
**932,696**
**633,677**
**533,805**
**-**
**1,032,568**| |---|---| As per Trustees Report, unrestricted funds/free reserves are used for the ongoing funding of CTS Ltd. **________________________________________________________________________________________________** **SCC - Chartered Accountants and Statutory Auditors** 19 ## **CTS Ltd NOTES TO THE FINANCIAL STATEMENTS (Continued)** ## **15. Contingent Liabilities** Grants received could be repayable in certain circumstances as set out in the letters of offer. ## **16. Related Party Transactions** Richard Thornton is the chief executive of CTS Ltd & CDDA. During the year the compensation paid to key management personnel amounted to £36,497 (2022: £32,679). Richard Thornton also invoiced CTS Ltd during the financial year for reimbursement of expenses of £1,239 of which was paid in full leaving a closing balance of £Nil. The trustees were not paid or reimbursed any expenses during the year. ## **17. Controlling Interest** The Trustees (Committee of Management) are considered to be the charity's ultimate controlling party. ## **18. Going Concern** The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. ## **19. Company Limited by Guarantee** 52 Shares are in issue to the initial subscribers when the company was formed. Every member of the company undertakes to contribute such amount as may be required not exceeding £1 to the assets of the charitable company in the event of its being wound up while he or she is a member, or within one year after he or she ceases to be a member. **____________________________________________________________________________________________________ SCC - Chartered Accountants and Statutory Auditors** 20