Charity Registration No. NIC100773 Company Registration No. N1003511 (Northern Ireland) THE TOWELL BUILDING TRUST LIMrrED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
THE TOWELL BUILDING TRUST LIMITED CONTENTS Page Chanty Information Trustees, report Stalement of Trustees, responsibilitles Independent auditorf8 report 8-11 Statement of financial activities 12 Balance sheet 13 Stalement of ¢a5h flows 14 Notes to the financial statements 15-26
THE TOWELL BUILDING TRUST LIMITED LEGAL AND ADMINISTRATIVE INFORMATION Trustees Mr D.G. Galbraiih Mr S. Duffield Mrs L Foster Mrs M. GuiSer Mrs L. Hyndman Mr D. Kealey Mr l. Laird Mr5 V. Lapsley Mr A.J. Martin Mr B. Robinson (Appointed 8 June 20231 Secretary Mrs J. Brooker Charity number NIC100773 Company number N1003511 Principal address Towell House 57 Kings Road Knock Co Antrim BT5 7BS Registered office 4th Floor Donegall House 7 Donegall Square North Belfast BT1 SGB Auditor Moore (N.I.) LLP 4th Floor Donegall House 7 Donegall Square North Belfast BT15GB Bankers Danske Bank Donegall Square West Belfast BT1 6JS Solicitors CraOrd Lockhart Black Linenhall House 13 Linenhall Street Belfast BT2 8AA
THE TOWELL BUILDING TRUST LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees present their report and accounts for the year ended 31 December 2023. which are a150 prepar8d lo meet the requirements for a directors, report and accounts for Companies Act purposes. The accounts have been prepared in accordance with the accounting policies sel out in note 2 to the accounts and comply with the Trust's Memorandurn ancl Artide ofAssoci8tion. the Companies Act 2006 and "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordanc8 With the Fin8ncial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102) leffeclive 1 January 2015). Objectives and activltles The Twst'8 objects are set out in the Memorandum and Articles of Association and m8y be 5ummarised as '. to provlde 8¢commodatlon for older people and people wilh physical di58biliti8s irresp8ctlve of thelr financ181 means; to care for resldents of such accommodation including the provision of medical care and soclal acuvilies approprfale lo thelr needs and consistent with their wellbeing and circumstances; to provide altemalive care to older people and people with physical disabilities irrespectiv8 of their financial means. Our aim is to meet th8 needs of our residents for safe accommodation with good quality calerfng, appropriate activities and care In a manner that reflects Ihelr rights and Is consistent with our obligations lo them, their famili85 and friends. Ensurfng our work delivers our alm• The policies edopled in furtherance of these objects are that we keep our aim and objective5 under continuous review lo ensure Ihal we meet the needs of our residents and there has been no change in these durlng the year. In addition thè Trustèes carry monthly telephone reviews with a selection of relatives on the operation of the home. The Trustees also cary out monthly inspections of the homè which. inter alia. includ8 reviews with a selection of residents and staff. These reviews are d8slgned lo ensure that any Issues that residents, their relatives or the staff have may be identified, considered and addressed. Addilionally, a series of internal audits are Garried out each month. The outcome of all the reviews is documented and reported to the Board each month. Th8 home is a150 subject to regular inspection by the Regulation and Quality Improvemenl Authority. Our main objectives for the year continued to be the provision of quality accommodation, care and activities for both our permanent and re8pile r8sidenls. The strategies that we used to meet our objectives included: -providing safe accommodatlon for our residents -focusing on the provislon of qualty catering -focusing on providing a wide range of actrviti85 and entertainment The Trtsstees have paid due 98rd to guidance Issued by the Charity Commission in deciding the activities the Trust should undertake. Informallon on mallers of potential concern lo stsff is given through meetings, infonnation bulletins and reports which seek to achieve a common awareness on Ihe part of all the Staff of the operation of ell aspects of the home including economic factors that may impact these operation5. Applications for employment by disabled persons are always fijlty considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employrnenl within the Tru51 Gontinues and that the appropriate training 15 arranged. It is the policy of the Trust that the training, career development and promotion of disabled persons should. as far as possible, be Identical to that of other employees.
THE TOWELL BUILDING TRUST LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 How our actlvities deliver public benefit Public benefit from our services is directed at the frail and elderfy population aged over 65 years or physically disabled population aged under 65 years. irrespective of their means. Direct benefits are derived from a number of our services.. -Provision of accommodation. -Assessing need and promding care appropriate to these assessed needs: -Providing an all indusiv8 facility with a rangè of actyvities appropriate to the individuaj to prevent feelings of boredom and social isolation; -Providing an environment that promotes improved physical and mentsl health and well being: -Providing respite care to the frail and elderly population aged over 65 years or physically disabled population aged under 65 years, enabling carers lo have a break. This provides additional support to carers, assisting them in continuing their caring role at home with their seNice user, and -Providing step-down care to hospitalised patients who are either frail and eideriy and aged 65 years and above or physically disabled and aged under 65 years. We assist with the recovery and habIlItatIon as a stepping stone to retuming to their own homes. Achlevements and perforniance Demand for the type of care we offer has remained high wth average ocwpancy of 97Q/o (2022 - 97DtsI. There is still a waiting list for rooms. The building and gardens are maintained to a high standard and improvements are made when finances allow. The Trustee5 commenced a substanb'al building programme during the year. Financial revlew Th8 Trustees believe It is very important that the Trust is financially secure and that the financial perfomiance is reviewed regularly. A budget is prepared annualty and is discussed and agreed by the board. In the course of the discussion the directors consider issues that are likely to impact on the current year and known issues that will arise in the future. The key issues that have been identified are the adequacy of the level of funding paid by the Health & Social Care Trusts and the cost implications of retaining and recnjiting stsff in a competitive labour Market. The financial performance is reviewed at each board meeting. A report detailing the perfomiance for the pr8ViOUS month and the year to date relative to the budget, together with commentary therevon, is Cifculated in advance of each meeting. The TTUSt's investrnents are managed on a discretionary basis by Investrnent Managers who submit a report on the performance of the investrnents on a quarterly basis. This is reviewed by the Chief Executive Officer and the Finance Director and is available to all the Trustees. Meetings are held with the Investment Managers to review the perfonnance of the investments as required. The Trust recorded a satisfactory financial oulcorne for the year. The operating surplus for the year was £102,789 as compared with £30,425 for 2022. Provided the substantial inflalion-driven increases in operating costs that arose in 2022 and continue, it is essential Ihat the Government increases the funding of ¢are for the elderly to a level that adequately reflects the cost of providing this service. The Truslees consider it prudent to hold monies in reserve in the event that unforeseen circumstances should lead to financial difficultie5 which might put the future of its trading a5 a going concem and its employment capacity, general charitable work and propety in jeopardy. The Trustees believe the strength of the Balance Sheet has helped maintain the business as a going concem during this year.
THE TOWELL BUILDING TRUST LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 ReseNes The Trustees have examined the chartty's requirements for reserves in light of the main risks to th8 organisation and established a formal policy which slipulales that free reserves be maintained at a level which ensures that the charity's core activity could continue dLsring a period of unforeseen difficulty. Free reserves are defined by the Trustees as unrestricted income funds freely available for use as the charity 50 determines and thereby excludes any funds committed, invested in tangible fixed 8S5ets held by the Charity and restricted or designated funds. The Trustees consider that the most appropriate policy for investing funds continues to be in a balanced portfolio of investments with a minimum risk mainly quoted on the London Stock Exchange that spread5 the risk and provides opportunity for income and for captlal growth. This porttolio is managed by an extemal firm of investment managers. Rlsk management The Trustees havè assessed the major risks lo which the Trust is exposed and are satisfied that Systems are In place to mitigate exposure to Ihe major risks, albeit Ihe current inflationary pressure on costs remains a matter ol some concern. Plans for future perlod¥ & factors affectlng the financlal posltlon In future periods The Trustees wlll continue lo comprehensively revi8w the operats'onal activity of the home. Posltive st6ps are undemay for the future to establish new links within the local community thereby lifting the charity profile and the services it has to offer. Towell House continues to operate successfully and provides high quality aCmmodatIOn and care to all residents. There remains 8 high demand for residents'al care and there is a walting list for rooms. The building and gardens are maintained lo a high standard and improvements are made when finances allow. The Trustees commenced a substantial building programme dunng the year. Thls programme will increase the number of r8sident rooms in thé Home, in¢aSe the number of ensulte rooms and upgrade facilities for residents and slaff. Recent refurbishment works have been financed from internally generated funds bul bank funding will be required lo complete the development plan. The Trustees are confident that Ihis investment will prove to be self- funding within a relatively short period of years. Planning our estat8 mainlenance. trainlng mathx and our staiTing requlrements lor the future wlll ensure w8 keep abast of the care Industry standard requirements and ensure we meet organisatsonal goals and targets. The main factors which are likely to affect the financial perfomiance or position golng fOard are:. the impact of the substantial annual increases In National Llving Wage on all stsff costs in an Increasingly competitive labour market and the related pension costs the ability to recruit and retain staff - the demand for appropriate quality residential care in the community the cost implications of new and onerous regulatory standards imposed in the care industry - Ihe impact of the currenl inflation8ry pressure on all aspects of costs of operating the home - the ¢onlinulng inadequacy of the fvndlng provided by the Health and Social Care Trusts the availability ol bank funding to complete the developrnent prograrnme in a ts'mely manner
THE TOWELL BUILDING TRUST LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Structure, govemanoe and management The Trust 15 a company limited by guarantee, not having a share capital. It Is registered in Northem Ireland (registration number: N10035111 and has obtsined charitable status The Charity Commission for Northem Ireland (reference number-. NIC1007731. It is govemed by its Memorandum and Arkncles of Association. In the event of the company being wound up and a shortfall ensuing, the membèrs are required to contribute an amount not exceeding fity pence. The Trustees, who are also the directors for the purpose of company law, and served during the year and up to the date of signature of the financial statements were: Mr D.G. Galbraith Mr S. Duffield Mr5 L Foster Mrs M. Guiler Mrs L. Hyndman Mr D. Kealey Mr l. Laird Mr5 V. Lapsley Mr A.J. Martin Mr G.R. McGowan Mr J.C. Morton Mr B. Robinson Mrs J. Whitesida Under the terms of the AcleS of Association one third of the Trustees a required to retire each year but may offer themselves for re-electlon at the Annual General Meeting. (Appointed 8 June 2023) (Resigned 8 June 2023) (Resigned 8 June 2023) {Reslgned 8 June 2023) The Trustees retiring by rotation this year are: Mr S. Duffield Mr D. Kealey MrA. Martin Mr G.R. McGowan, Mr J.C. Morton and Mrs J. Whiteside did not seek re*lection at the 2023 annu81 general m8eting, we Ihank them for their dedicated semce and Insightful contributions to the work of the Board over many years, All of the Trustees give their time and skills voluntarily and receive no payments for the services they provide. The Trustees aim to ensure that the Board consists of people suitsbly qualffied with wide experience from variety of backgrounds so as to bring a broad skills mix to the management of the company. The Trustees have estsblished a Risk Register to facilitste the development of the rlsk management process. The Register seeks to identify all signffjcant risks that the Home faces along wtth action to mitigate and manage each risk that has been identified. The Register is subject to regular review and up4at8d as deemed appropriate. The Board of Trustees, appointed by the members of the Trust. meet regulady throughout the year. The executive management, in charge of the day-to-day operations, reports to the Board on a monthly basis. Sub- committees which have been established by the Board to deal with specific issues, meet a5 required and report to the Board accordingly.
THE TOWELL BUILDING TRUST LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees, at the board meetings, make all the major decisions, including strategic decisioris, regarding all aspects of the operation of the Trust. This includes the approval of the budget annually, all significant expenditure of a capital nature. the level of fees charged to privately funded residenls and any addltional or supplementary fees that have to be charged lo Trust funded residents. Decisions regarding the day to day running of the Trust are made by the Chief Executive Officer and the Senior Managernent Team who meet regularly in order to ensure the 6fficienl management of the operations. Mrs Jill Brooker is the m8mber of the Senior Management Team to whom the Charlty Trustees d8legate day to day management. Most new Trus18es have some knowledge of the work carried on by Towell House before they join the Board. A 'Cooks Tour" of the organisalion is available along with rneelings with the Chief Execulive Officer and the Home Manager for potentral new direclorsltrustees. The Trust retains the services of a Humen Resources AdvFsor who provldes infomiation on pay levels for the S8nlor Management Team as and wh8n required. The company ha5 no relationshlps wlth third parties that would be consldered to be related undertakings. The Towell Building Trust holds total unrestricied reseNes of £1,836,238. Auditor The auditor, Moore IN.1.) LLP, Is deemed to be r8appolnted under s8ction 487{21 of the Companies Act 2006. Dlscloxure of Infomiatlon to audltor Each of the Trustees has confimied that there is no infomiation of which they are aware which is relevant to the audlt, bul of which th8 auditor is unaware. They have further confirmeLI that they have taken appropriat8 Steps to identify such relevant information and to estsblish that the auditor is aware of such infomiation. The Tnjstees, report was approved by the Board of Truste8S. .G. Galbralth Daled.. 7 May 2024
THE TOWELL BUILDING TRUST LIMITED STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustee5. who are also the directors of The Towell Building Trust Limited for the purpose of company law, are responsible for preparing the Trustees, Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom GenerallyAccepted Accounting Practice). Company Law requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources. including the income and expenditure. of the charitabl8 wmpany for that year. In preparing these accounts, the Trustees are required to: - select suitable accounting policies and then apply them consistently", observe the methods and principles in the Charities SORP., make judgements and estimates that are reasonable and prudent: and prepare the accounts on the going concem basis unless it is inappropriate to presume that the Trust will contSnu8 in operation. The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
THE TOWELL BUILDING TRUST LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE TOWELL BUILDING TRUST LIMITED Opinlon We have audited the financial ststements of The Towell Building Trust Limited (the 'Trust'l for the year ended 31 December 2023 which comprise the statement offinanaal activities, the balance sheet, the staternenl of cash flows and notes to the financial statements, including 5igntficant accounting policies. The financial reporting framework that has bèen applied in their preparation is applicable law 8nd Uniled Kingdom Accounting Standards, including Financial Reporting Slandard 102 The Financial Repothng Standard applicable in the UK and R8public of ireland (United Kingdom Gènèrally Accepted Accounting Pr8clice>. In our opinion, the fin8n¢ial statements: give a true and fair view of the stste of Ihe charitable companls affairs as at 31 Decemb8r 2023 and of its In¢oming resource5 and application of resources, Including its income and expenditure. for the year then ended,, have been prop8ty prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared In accordance wlth the requirements of the Companies Act 2006. Bas18 for oplnlon We conducted our audit in accordance with Int6maiional Standards on Auditing (UK) (ISAS IUKII and applicable law. Our responsibilities under thos8 sland8rd5 8re fiJrth8r d8scnbed in the Auditorfs r8sponsibilities ftlr the audlt of th8 linancial st8tementS 58¢tion of our report. W8 are independent of the Trust in accordance with the ethical r8quirements that are relevant to our audit of the finanaal 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. Concluslons relatlng to golng concern In auditing the financial statements, we have concluded that the Trustees, use of the going concern basis of acccunting in the preparation of the financial statements is appropriate. B8sed on the work we have perfomed. we have nol identified any material uncertainties relating to events or ¢ondilions Ihat, individualty or Gollectively, may cast Significant doubt on the Trust's ability lo 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 responsibllitlas of the Trustees with respect to golng concern are described in the r8levant sections of this report. Other Infomiation The other information cornprises the infornialion Included In the annual report other Ih8n the financial statements and our auditor'5 report ther8on. The Trustees are responsible for the other infom)ation contained within the annual report. Our opinion on the financial statemenis does not cover the other Inforniation and, except to the extent otherwise explicitty slated in our report, we do not express any fomi 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 stalements or our knowledge obtained in the course of the audit, or otheNlse appears to be rnaterially misstated. If we identify such material inconsislencies or apparent Tnaterial mi55tatements, we ara required to determine whether this gives rise to a material mis5tatemenl in the financial slalemenls th8mselves. If, based on the Work we have perfomied, we conclude that there is a rnaterial mis51atemenl of this other informalion, we are requlrèd to report that fact. We have nothin9 to report in thls regard. Oplnions on other matters prescribed by the Companle5 Act 2006 In our opinton. based on the work undertaken in ihe course of our audiL' the Infomal'on given in the Trustees. report for the financial year for which the financial statements are prepared, which indudes the directors, report prepared for the purpose5 of company law, is consistent with the financial statements., and the directors, report induded within the Trustees. report has been ppared in 8¢¢ordan¢e with applicable legal requirements.
THE TOWELL BUILDING TRUST LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF THE TOWELL BUILDING TRUST LIMITED Matters on whlch we are reqUId to report by exception In the light of the knowledge and understsnding of the Trust 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 resped of the following matters in relation to bthich the Companies Act 2006 requires us to report to you rf, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been r8ceived from branches not visited by us: or the financial statements are not in agreement with the accounting records and retums" or certain disclosures of trustees, remuneration specffjed by law are not made. or we have not received all the information and explanations we require for our audit: or the Trustees were not entled to prepare the financial statements in accordanc8 With the small companies regime and take advantage of the small companies. exemptions in preparing the Trustees. report and from the requirement to prepare a strategic report. Responslbllltles of Trustees As explained more fully in the statement of Trustees, responsibilities, the Trustees, who are also the directors of the Trust for the purpose of company law, are responsible for Ihe preparation of the financial staternents and fof being satisfied that they give a true and fair wew, and for such intemal control as the Trustees detenIn8 is neGe5sary to enable the preparalion of financial ststements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Tnjst's ability to continue as a going concem, disclosing, as applicable, matters related to going concem and using the going concem basis of a¢¢ounling unless the Trustees either intend to liquidate the charitsble company or to cease operations, or hav8 no rèalistic altemative but to do so. AudStorfs responslbllltles for the audit of the financial statements Our objectives are to obtsin reasonable assurance about wheth8r the financial statements as a whole a free from rnaterial misstalement, whether due to fraud or emr, and to issue an auditorf5 report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit ¢onducted in accordance with ISAS {UKI 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 deci5i0ns of users tsken on the basis of these financial ststements. The extent to which our procedures are r2pable of detecting irregularities. induding fraud, 15 detsi18d below. Explanation as to what extent the audit was consldered capable of detecting Irregularltles, tncludlng fraud The objectives of our audit in respect of fraud, are., lo identify and assess the risks of material misstatement of the financial statements due to fraud,- to obtain sufficient appropriate audit 8vidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks- and to respond appropriately to instsnces of fraud or suspected fraud identy'fied during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with govemance of the charitsble company.
THE TOWELL BUILDING TRUST LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF THE TOWELL BUILDING TRUST LIMITED Our approadi was as foll¢Jv5". We obtainèd an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006. the Charitses Act {Nl) 2013. the Charity SORP, UK financial reporting standards a5 issued by the Financial Reporting Council, the Health and Personal Social Services (Quality, Improvernent and Regulation) (Nothem Ireland) Order 2003. and the Safeguarding Vulnerable Groups (Northern Ireland) Order 2007. We obtained an understanding of how the Gharitable company compSles these requirernents by discussions with management and those charged with govemance. We assessed the dsk of material misstatement of the financial statements. including the rlsk of material mlsstalement due to fraud and how it might occur, by holding discussions with management and Ihose charged with governance. - We inquired of management and those charged wilh governan¢8 8S to any known Instances of non-cornpliance or suspected non-compliance wilh laws and regulations. Based on this understanding, we designed specific appropriate audit pradureS to identify instances of non- compliance with laws and regulations. This included making enquines of management and those charged with govemance and obtaining additional corroborative evidence as required. As part of en audit in accordance with ISAS (UK} we exercise professional ludgem8nt and maintain professional sceplicism throughout the audil. We also: Identify and ass8ss lh8 risks of material misstatement of ihe financial Statements, whether due to fraud or error, design and perfom audit procedures rèsponsive to those risks. and obtain audit evidence that is sufficient and appropriate to provide a basis lor our opinion. The risk of not delecting a material misstatement resulting from fraud is higher than for one resulling from error. as fraud may involve collusion, forgery, Intentlonal omissions, misr8presenlalions, or the override of intemal control. Obt8irs an und8rslanding of inlemal control relevant to th8 audit in order to design audit procedures that are appropriate In the circumslances, but not lor the purp06es of expressing an opinion on the effectiveness of the charitable company's internal control. Evaluate the appropriateness of accounting policies used and the rea50n8bleness of accounting estimates and rolated disclosures made by the trustees. ConGlude on the appropriateness of the tru5tee5' Use of the golng conc8m basls of accountlng and, based on the audit evldence obtained, whether a material Ljncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are reouired to draw attention in our audilor's report to the related disclosures in the financial statements or, if such disclosures are irsadeqLtale. to modify our opinion. Our conclusions are based on the audit evidence obtained up to the dale of our auditor's report. However, future events or conditions may cause the charitable company to cease lo conlinue as a going concem. Evaluate th6 over811 presentation. structure and Gontent of the financial statements, including th8 disclosures, and whether the financial statements represent the underlylng transadions and events in a manner that achieves fair presentation. We communicate with those Charged with govemance regarding. among other matter5. the planned scope and timing of the audit and significant audit findings, including any significant deficAencies in inlernal control that we identify durin9 our audit. A further description of our responsibilities is available on the Financial Reporting Council's website at.. https'.11 www.frc.org.uklauditorsresponsibilities. This descripts'on fomis part of our audiloffs report. 10-
THE TOWELL BUILDING TRUST LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF THE TOWELL BUILDING TRUST LIMITED Use of our report This report is made solely to the company's members, as a body. in accordance with section 391 of the Companies Act 2014. Our audit work has been Undertaken so that we might state to the company's members those matters we are required to stste to them in an auditorfs report and for no other purpose. To the fullest extent pemiitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body. for our audit work. for this report, or for the opinions we have formed. &.9.fx 4Nk- Dr R I Peters Gallagher OBE FCA (Senior Statutory Auditor) for and on behalf of Moore (N.I.) LLP 7 May 2024 Chartered Accountants Statutory Auditor 4th Floor Donegall House 7 Donegall Square North Belfast BT15GB 11
THE TOWELL BUILDING TRUST LIMITED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestricted funds 2023 Restricted funds 2023 Total Total 2023 2022 Not Income from: Donations, legacies and govemment support grants Charitable activrties Other trading activities Investments 86.761 3,424,207 12,621 18,862 86,761 3,424,207 12,621 23,826 180,059 3.200,760 11,272 19,242 4,9fA Total Income 3,542,451 4,964 3,547,415 3,411,333 Charitable activities 3,439.662 4,964 3,444,626 3,380,908 N8t gainsl{Ios5esl on inv8slments 12 3.309 3,984 7.293 118.0461 Not Incom• 106,098 3,984 110,082 12,379 Net movement In fundg 106,098 3,984 110,082 12.379 Reconcillation of funds: Fund balanc85 at 1 January 2023 1,730,140 117,019 1,847,159 1,834.780 Fund balan¢e$ at 31 Decèmbor 2023 1,836,238 121,003 1,957,241 1,847,159 The statement of finan¢ial actlvilies includes all galns and losses recognlsed Sn the y88r. All Income 8nd expenditure derive from Continulng acllvlties. 12-
THE TOWELL BUILDING TRUST LIMITED BALANCE SHEET ASAT31 DECEMBER 2023 2023 2022 Notes Flxed assets Tangible assets Inv8Stments 13 14 1,615,268 415,562 1,545,679 415,252 2,030,830 1,960,931 Current assets Debtors Cash at bank and in hand 15 75,903 301,512 63,802 292,616 377,415 356,418 Creditors: amounts falllng due within one year 18 1451,004) (395,448) Net current liabilities (73,589) 139,030) Total assets less current Ilabllities 1.957,241 1,921,901 Creditors: amounts falling due after more than one year 19 (74,742) Net assets 1.957.241 1,847.159 Income funds Restricted funds Unrestricted funds - general 21 121,003 1,836,238 117,019 1,730,140 1.957.241 1,847,159 These financial ststements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The accounts were approved by the Trustees on 7 May 2024 Mr D.G. Galbraith Trustee Mrs M. Guiler Trustee Company Registration No. N1003511 13-
THE TOWELL BUILDING TRUST LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Notes Cash flows from operating activittes Cash generated from operations 28 234,033 114,898 Investing actlvitie5 Purchasè of tangible fixed assets Purchase of investmenls Proceeds from disposal of investments Investment income received 1184.769) (14.565) 21,548 23,826 (54,0631 (12,010) 20,544 19,242 Net cash used In Invostlng actlvltlg8 (153,960) 126,2871 Flnanclng activltl8s Repayment of bank loans 171.418} 168,4061 Net cash used In Ilnan¢lng actlvltles (71,418 168.406) Not Incr•a¥e In cash and cash equlvalents 8.655 20,205 Cash and r2sh equiva18nts al beginning of year 289,509 269,304 Cash and cash equlvalents at and of yoar 298,164 289,509 Rèlatlng to.. Cash al bank and in hand Bank overdr8fts included in credltors payable within onè year 301,512 292,616 13,348) (3,1071 14-
THE TOWELL BUILDING TRUST LIMITED STATEMENT OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Critical accounting estimates and judgements In the application of Towell Building Trust Limlted's (The Trust's") accounting poliaes, the Trustees are required to make judgements, estimates and assumptions about the carying amount of assets and liabilities that are not readily apparent from other SoUrs. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevanL Actual results may differ from these estimates. The estimates and underfying assumoions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised Whe 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. Accounting policies Charity infonnation The Towell Building Trust Limited is a private company limited by guarantee incorporated in Northem Ireland. The registered office is 4th Floor Donegall House. 7 Donegall Square North, 8etfasL BT1 5GB. 2.1 Accounting convention The accounts have been prepared in accordance wth the Tmsfs Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charits'es: Ststement of Rernmmended Practice applicable to ch8rities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021. las amended for accounting periods commencing from 1 January 2016). The Trust is a PubliG Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling. which is the functional currency of the Trust. Monetary amounts in these financial statements are rounded to the nearest £. 2.2 Going concern At the time of approving the financial ststements. the Trustees have a reasonable expectstion that the Tnjst has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopi the going conrn basis of accounting in preparing the financial statements. 2.3 Charitable funds Unrestricted funds are available for use at the discretion of the Trustees in furtheran of their charrtable objectives. Restricted funds are subject to spectfic conditions by donots or grantors as to how they may be used. The purposes and uses of the restrirted funds are set out in the notes to the financsal statements. Endowment funds are subject to sperific conditions by donors that the capital must be maintained by the Trust. 2.4 Incoming resources Income is recognised when the Trust is legalty entiUed to it after any performance conditions have been met, the amounts can be measured rdiably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are reCgnIsed once the Trust has been notified of the donation. unless performance wnditions require deferral of the amounl. Income tax recoverable in relation to donations received under Gtft Aid or deeds of covenarrt is recognised at the time of the donation. Legaaes are recognised on receipL 15-
THE TOWELL BUILDING TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accountlng pollcles {Contlnued) 2.5 Resources expended Expenditure is recognised on an accruals basis as a liability is incurred. Funding provided through contractual agreements and performance related grants is recognised as goods or services are supplied. Other grant payments are recognised when 8 constructive obligation arises that results in the payment being unavoidable. Costs of generating funds are those cosls incurred in attracling voluntsry income, and those incurred in trading activities that raise funds. Governance costs include those incurred In the goveman¢e of Its assets and are primarfly assoclaled with constitutional and statutory requiremenls. 2.6 Tangible flx•d as4ets Tangible fixed assets are initially measured at Cost and Subsequently measured at cost or valuation, nel of depreciation and any impairment Ioss8S. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful liv85 on th8 following bases; Fr8ehold land and buildings Fixtures and fittings Sensory garden capltal 2% straight line 15% straight line 20% straight line The gain or 105s arislng on the disposal of an asset is determined as the dlfference betwe8n th8 sale proceeds and the carrying value of the assel, and is recognised in the statement of finandal activities. 2.7 Flxed asset Investments Fixed asset Inv8slments are initially measured at transaction pdce 8xcluding transactlon costs, and are subsequently measured al fair value at each reporting dale, takèn as th8 qUOt8d market price on the stock market. Transaction costs are expensed as incurred. Changes In falr value are recognised in other recognised gains and losses except to the extent that 3 gain reverses a loss previously recognised in nel income expenditure. or a loss exceeds the accumulated gains recognised in equity; such gains and loss are recognised in net incomel(8XP8nditUfel for th8 year. 2.8 Impalmient of flxod assets At each reporting end date, the Trust reviews the carying amounts of its tsnglble Bssets to determine whether there is any indicatlon that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount ol the asset is estimated in order to detemiine the extent of the impalrment loss (if any). 2.9 Cash and cash equlvalents Cash and cash equivalents indude cash in hand, deposits held at call with banks. other short-term Ilquid investments with original maturities of three months or less. and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 2.10 Financlal Instruments The TrLtst has elected to apply the provisions of Section 11 'Basic Financi81 Instruments. and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial inslrurnents are recognlsed in the TTUSts bal8nce sheet when the Trust becomes party to the ontraclual provisions of the instwment. 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 arnounts and there is an intention to settie on net basis or lo realise the asset and settle the liability simultaneously. 16-
THE TOWELL BUILDING TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policles (Continued) Basic financial assets Basic financial assets. which indude debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequenuy carried at amortised cost using the effective interest method unless the arrangement constitutes 8 finanung transaction, where the transaction is measured at the present value of the fijture receipts discounted at a market rate of interest. Financial assets classrfied as receivable within one year are not amortised. Basic financlal Ilabllities Basic financial liabilities, including creditors and bank loans are initially r8cognis8d at transadion price unless the arrangement constilules a financing transadion, where the debt instrument is measured at the present valuè of the future payments diswunted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are sUbseqUenY carried at amortised cost, using the effecttve 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 dassified as current liabilities if payment is due within one year or less. If not, they are presenled as non-current liabilities. Trade creditors are recognised initially at transadion price and subsequently measured at amortised cost using the effectrve inlerest method. Derecognltlon of flnanclal Ilabllltles Financial liabilities are derecognised when the Trust's contraciual obligations expire or are discharged or canlled. 2.11 Employee benefits The cost of any unused holiday entitiem8nt is recognised in the period in which the employee's services are received. Termln8tion benefils are recognised immediatety as an expense vthen the Trust is demonstrably committed to terminate the employment of an employee or lo provide termination benefits. 2.12 Retirement benefits Payments to defined conlribution retirement benefit schemes are charged as an expense as they fall due. Donations, legacies & government support grants Unrestricted Unrestrlcted funds funds general general 2023 2022 Donations Legacies Government support grants 317 77 86,444 179,982 86,761 180,059 17-
THE TOWELL BUILDING TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Income from charltable actlvltles Unrestricted Uhrestrlcted funds funds 2023 2022 Income frorn care seNices 3,424,207 3,200,760 Other tradlng activities Unrgstrlcted Unrestrlcted funds funds general general 2023 2022 Other trading actlvitles 12,621 11,272 Investment8llncom• Unrestrl¢ted R68trl¢t8d fund5 funds general Total 2023 Total 2022 Dividend income Bank inl8resl receivable 13,417 5,445 4,964 18,381 5,445 18,323 919 18,862 4,964 23,826 19,242 Forthe year ended 31 Decombor 2022 14,646 4,596 19.242 18-
THE TOWELL BUILDING TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Charitable activities Provision of charitable services Support costs Total 2023 Total 2022 Staff costs Depreciation and impaimient other direct costs Other overheads Auditors remuneration Bank interest and charges 1.737,731 115,180 316,340 533,988 5,850 7.197 728,340 2.466,071 115,180 316,340 533,988 5,850 7,197 2,438,178 126,883 249,426 549,293 6,400 10,728 2,716.286 728,340 3,444,626 3,380,908 2,716,286 728,340 3.444,626 3,380,908 Net movement In funds 2023 2022 Net movement in funds is stated after chargingl(crediting) Fees payable for the audit of the charity's financial statements Depreciation of own8d tangible fixed assets 5,850 115,180 6,400 126,883 Trustees None of the Trustees (or any persons connected with them) received any remuneratlon or benefits from the Trusl during the year. {2022 - none.) 19-
THE TOWELL BUILDING TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 10 Analysls of stsff costs, Trustee remun•ratlon and expenses and cost of key management and personnel Number of employees The average monthly number of employees during the year was, 2023 Number 2022 Number Management and supeNisory Operational staff 93 93 99 100 Employment costs 2023 2022 Wages and salaries Social security costs Other pension costs other staff benefits 2,140,821 184,783 135,503 2.120,271 186,137 91,402 35,772 2,461,107 2,433,582 Th8 total remuneration of the senior management team was £364,023 {2021- £347,884). The number of employees whose annual remuneration was £60,000 or more were.. 2023 Number 2022 Number 70,00110 75,000 11 Taxatlon The charity is exempt from taxation on its activities because all its income is applied for charilable purposes. -20-
THE TOWELL BUILDING TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 12 Net gainsJ(losses) on investments Unrestricted Restricted funds funds general Total 2023 Total 2022 Revaluation of Investments Loss on sale of investrnents 4518 11,209> 3,984 8,502 (1.209) (14,707) (3,339) 3,309 3.984 7,293 (18,0461 For the year ended 31 December 2022 117,775) (271) 118,0461 13 Tangible fixed assets Fr•¢hold land FlxtUf•$ and and buildSng$ frttings Sensory Garden Capltal Total Cost At 1 January 2023 Additions 2.218,491 150,831 1.760,030 33.938 57,307 4,035,828 184,769 At 31 December 2023 2,369,322 1,793,968 57,307 4,220.597 Depreciation and impainnent At 1 January 2023 Depreciation charged in the year 808,012 1,624.830 46,386 68,794 57,307 2,490,149 115,180 At 31 December 2023 854,398 1,693,624 57,307 2,605.329 Carrying amount At 31 December 2023 1,514,924 100,344 1,615.268 At 31 December 2022 1.410.479 135,200 1,545,679 21
THE TOWELL BUILDING TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 14 Flxed asset Inv•stmonts Unrestrlcted Restricted Ilsted listed Investments Investments Total Cost or valuatlon At 1 January 2023 Additions Valualion changes Disposals 297,442 14,565 4.519 (22.757) 117,810 415,252 14,565 8,502 (22,757) 3,983 At 31 D8c8rnber 2023 293,769 121.793 415,562 Carrylng amount At 31 December 2023 293,769 121,793 415,562 At 31 December 2022 297,442 117,810 415,252 The investments held are all United Kingdom listed investments. The following represent holdlngs of greater than 5Qh ol th8 total portfolio value. Fund name /• Held M&G Securities Ltd City of London Investment Trust 11.78 8.53 Flxed afys Inv88tments rnvalued The investments are held on the balance Sheet at market value. The historical cost of the portfolio Is £288,40412022: £299,181). 15 Debtors 2023 2022 Amounts falllng duo wllhln one year. Trade debtors Other debtors Prepayments and accrued income 10,835 19,309 45,759 20,152 12,029 31,621 75,903 63,802 -22-
THE TOWELL BUILDING TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 16 Financial instruments 2023 2022 Carrying amount of financial assets Debt instruments measured at arnortised cost Instruments measured at fair value through profit or loss 30,144 415,562 32,181 415,252 Carrying amount of financial liabilities Measured at amortised cost 398,550 422,301 17 Loans and overdrafts 2023 2022 Bank overdraft5 Bank loans 3,348 74,526 3,107 145,944 77,874 149,051 Payable within one year Payable after one year 77,874 74,309 74,742 18 Creditors: amounts falling due within one year 2023 2022 Notes Bank loans and overdrafts Other taxation and social security Trade Gredilors Other creditors Accruals and deferred income 17 77,874 52,454 159,359 8,566 152,751 74,309 47.889 80.599 4,538 188,113 451,004 395,448 19 Creditors: amounts falllng due after more than one year 2023 2022 Notes Bank loans 17 74,742 20 Retirement benefrt schemes Defined contribution schemes The Trust operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of th8 Trust in an indepersdenuy adrninislered fund. The charge to profit or loss in respect of defined contnbution schemes was £135,503 (2022 - £91,402). -23-
THE TOWELL BUILDING TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 21 Restrlcted funds The rastricted fiJnd5 of the charity comprise the unexpended balances of donations and grants held on trust subject to 5peofiG conditions by donors as to how they may be used. At 1 January 2023 Incoming resourc•s Rèsources expended Transfers Galns and losses At31 December 2023 117,019 4,964 14,9641 3,984 121,003 Provlou8 year: At 1 January 2022 Incomlng Resource5 resourcès expend¢d Transfers Gains and losses At31 Decernber 2022 121,584 4,596 (4.5961 (4.2941 (2711 117,019 22 Unrostricted fund• The unrestricted fund5 of the charity comprise the unexpended balances of donations and grants whiGh are not subject to specific conditions by donors and grantors as to how Ihey may be used. These include deslgnated funds which have been set aside Out of unrestricted funds by the trustees for specific purposes. At 1 January 2023 Incomlng R•sourc•s resources Oxponded Transfar8 Galn• and 105888 At31 December 2023 General funds 1,730,140 3,542,451 13,439,662) 3,309 1,836,238 Prevlous year: At 1 January 2022 Incomlng Resources resources expended Transfers Galns and losses At31 December 2022 General fund5 1,713.196 3,406,737 {3,376.312) 4,294 (17,775) 1.730.140 23 Funds The General reserve is an unrestrlcted fvnd and incorporates revaluations of investments. The restricted fund is composed of the McKennan Bequest as well 85 the net book value of the Sensory Garden, the construction of which was supported by Belfast Cily Gouncil. McKeenan Bequèsl income is to be distributed annu811y between the members of staff of Towell House. -24-
THE TOWELL BUILDING TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 24 Analysis of net assets between funds Unrestricted Restricted 2023 2023 Total 2023 Total 2022 Fund balances at 31 December 2023 are represented by: Tangible assets Investments Current assetsllliabilities) Long lerm liabilities 1.615,288 293,769 (72.799) 1,615,268 415,562 173.589} 1,545,679 415.252 (39.Q30) 174,742) 121,793 (790) 1.836,238 121,003 1,957,241 1.847,159 25 Related party transactions There were no disclosable related party transactions during the year (2022- none). 26 Analysis of changes in net funds At l J•nuary 2023 Cash flows At 31 December 2023 Cash at bank and In hand Bank overdrafts 292,616 13,107) 8,896 (241) 301,512 (3,348) 289,509 8,655 298,164 Loans falling due within one year Loans falling due after more than one year (71.202) (74.742) (3.324) 74,742 174,526) 143,565 80,073 223,638 27 Auditors. Ethical Standards In common with many businesses of our size and nature we use our auditors to assist with the compilation of the statutory financial statements. -25-
THE TOWELL BUILDING TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 28 Cash generatad from operatlons 2023 2022 Surplus for the year 110,082 12,379 Adjustments for. Investment income recogni5ed in statement of financial activities L08s on disposal of inveslments Fair value gains and losses on investrnents D9pr8ciation and impairment of tangible fixed assets (23,8261 1,209 (8,502) 115,180 {19,2421 3,339 14,707 126,883 Movements in working capftal: (Increase}Idecreas8 in debtors Increase in creditors (12,101) S1,991 6,903 {30,0711 Cash g•neratsd from operatlons 234.033 114,898 -26-