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2023-03-31-accounts

Richmond Fellowship (NI) Ltd

T/A

Threshold

(A company limited by shares)

Report and Financial Statements

Year Ended 31 March 2023

Company number IP346

RICHMOND FELLOWSHIP (NI) LTD

REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023

CONTENTS PAGES
Report of the Committee of Management 3 - 9
Report of the auditors
 10 - 13
Statement of Financial Activities 14
Balance sheet 15
Statement of Cashflows 16
Notes to the financial statements
 17 – 23
* Detailed income and expenditure account 24
* Notes to detailed income and expenditure account
 25 – 26

RICHMOND FELLOWSHIP (NI) LTD

REPORT OF THE COMMITTEE OF MANAGEMENT

YEAR ENDED 31 MARCH 2023

Reference and Administrative Details of the Charity, its Trustees and Advisers

COMMITTEE OF Dr P McGarry (Chairperson) MANAGEMENT Mr A Harbinson (Vice Chairperson) Mr R Lamrock Prof M Donnelly Mr T Price Mr J Campbell Ms C Loughran CEO/SECRETARY Dr Raman Kapur TRADING NAME Threshold REGISTERED NAME Richmond Fellowship (NI) Ltd REGISTERED OFFICE 432 Antrim Road Belfast BT15 5GB Registered under the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969, No. 346 Registered under the Charities Commission for Northern Ireland, No. 100956 & HMRC, Charity No. XN91835 AUDITORS Miscampbell & Co 6 Annadale Avenue Belfast BT7 3JH BANKERS Ulster Bank Ltd Santander Virgin Money 16 Donegall Sq East 301 St Vincent St Jubilee House Belfast Glasgow Gosforth BT1 5UB G4 5HN NE3 4PL INVESTMENT MANAGERS Investec Evelyn Partners NICIF 58 - 60 Bedford St 32 – 38 Linenhall St 1-7 Bedford St Belfast Belfast Belfast BT2 7DR BT2 8GB BT2 7EG SOLICITORS Worthingtons 24 -38 Gordon Street Belfast BT1 2LG

RICHMOND FELLOWSHIP (NI) LTD

REPORT OF THE COMMITTEE OF MANAGEMENT

YEAR ENDED 31 MARCH 2023

Objectives and activities

Purposes and Aims

Our charity’s purposes as set out in the objects contained in the Charity’s model rules are:

Achievements and performance

Ensuring our work delivers our aims

We review our aims, objectives and activities each year. This review looks at what we achieved and the outcomes of our work in the previous 12 months, based on the corporate plan. This ensures our aims, objectives and activities remain focused on our stated purposes.

We ensure that a high level of service is achieved and there is a focus on continual improvement which promotes both good outcomes and best value.

Our outcome data continues to provide evidence that our patient population benefits from being in our service.

We are committed to meeting the standards required from our key stakeholders and surpassing these through continued organisational improvement which will ensure that we further our legal purposes and provide best care and life opportunities to the service user’s referred to us. A key service and business objective is the continuing high occupancy level of the residential service we provide. Satisfactory performance was achieved during the reporting period.

Externally Threshold is regulated by the Regulation and Improvement Authority (RQIA) and Quality Assessment Framework (QAF) for Supporting People. Regulation of the social care workforce is regulated by the Northern Ireland Social Care Council (NISCC), Health Professional Council (HPC) and Nursing and Midwifery Council (NMC) which also places stringent requirements on the organisation, all of which are adhered to through our policies and procedures.

Main activities

The focus of our work

Our residential therapeutic communities offer effective psycho-social environments for the severely mentally ill patients in our care.

Our Floating Support Service, which helps people with mental health problems remain in their own homes, means that we reach nearly 150 people with our therapeutic work.

External stakeholder budgets remained constrained during the year.

RICHMOND FELLOWSHIP (NI) LTD

REPORT OF THE COMMITTEE OF MANAGEMENT

YEAR ENDED 31 MARCH 2023

How our activities deliver public benefit

Our main activities and who we try to help are described above. All our charitable activities focus on those recovering from mental health problems and those who require counselling and are undertaken to further our charitable purposes for the public benefit.

Financial Review

Results

Net income and (expenditure) in the year was (£70,558) (£145,953 - 2022). Our services continue to be in high demand, with our average occupancy surpassing set budgeted rates within our accommodation based services. Operational performance has been satisfactory, with the deficit sustained, as a consequence of investment performance in the year.

Surpluses are generated through increased occupancy, but also as a result of turnover in our staff team. Gaps in recruitment, due to necessarily extended recruitment processes do lead to reduced costs, which are mitigated by the draw in of labour from a retained bank staff provision, provided by specialist recruitment companies. Over the reporting period there was a reduction in the use of bank staff, due to an increase in stability of the permanent staff team.

Continual focus on costs, as a result of our largely fixed rate income streams, has been successful this year, and the instability in financial markets have impacted detrimentally on our investment portfolios.

Going concern

After making appropriate enquires, the Committee of Management have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

The company has effectively managed its services through a difficult period, during the Covid 19 pandemic. Processes are in place to react to further government advice should any be received.

Principal risks and uncertainties

Threshold manages all of its financial risks through a series of controls and maintenance of a Risk Register which is continually reviewed by management and considered by the Committee of Management on an annual basis. Risks are assessed for likelihood and impact, with mitigating action described against each risk identified.

The principal commercial, operational and financial risks that have been identified as having a serious potential impact on the performance and future prospects or reputation of the organisation are as follows:

  1. Reduction in core revenue streams as a result of primary funder’s budget constraints;

  2. Failure to meet performance standards/contract compliance from key stakeholders; 3. Cost inflation;

  3. Failure to recruit, develop and maintain a competent qualified workforce.

  4. 5 -

RICHMOND FELLOWSHIP (NI) LTD

REPORT OF THE COMMITTEE OF MANAGEMENT

YEAR ENDED 31 MARCH 2023

The Committee of Management and Senior Management Team are satisfied that appropriate actions have been identified and taken so that these risks are managed effectively. Mitigation actions include:

  1. Building capacity within the budgeting process to mitigate against funding reductions;

  2. Transparent engagement with key stakeholders to ensure adherence to performance requirements;

  3. Effective cost budgeting;

  4. Continual labour market testing.

Principal Funding Sources

Our principal funder continues to be the NIHE both in terms of its direct funding through Supporting People and indirectly through Housing Benefit paid to our tenants. The Department of Health provides valuable assistance with core funding and training grants, while Northern Trust, Western Trust and Belfast Trust provided financing for the provision of direct care services to our residents.

Investment Policy and performance

The Charity continued to adhere to its investment policy, to invest funds with now three investment management firms. The aim has continued to be the investment of funds within a managed risk setting, to ensure returns are hedged against inflationary loss.

The investment has been set for the medium term.

Reserves Policy

The Committee of Management has examined the Charity’s requirements for cash reserves in light of the main risks that exist. It has established a policy whereby the available cash reserves should be between 3 and 6 months of projected expenditure. Budgeted expenditure for 2023/22 is £2.2m, while available cash reserves stood at £794K being 4.3 months of budgeted running costs.

The cash reserves are needed to meet the working capital requirements of the Charity and the Committee of Management are confident that at this level they would be able to continue the current activities of the Charity in the event of a significant drop in funding.

The total funds of the charity were £2,331,049, held in the following categories:

Share Capital of £21.

Restricted revenue reserves of £1,452,651 have been accumulated as a result of surpluses earned on existing contracted services. While these services persist, this reserve will be maintained to service future surpluses and deficits arising. During the year the Agency witnessed an increase in Support funding due to service expansion and extra Covid 19 support. Additionally, it has been directed to hold its Supporting People restricted reserves at balances reported in the prior period financial statements, with the deficit incurred in year transferred to general reserves.

Unrestricted revenue reserves of £878,377. Designated Funds relate to unrestricted income which is allocated to fund strategic activity agreed by the Board in future accounting periods. In 2023-24, the Board intend to set out plans for movement of designated funds to support a planned deficit and developmental costs of organisational and service development, digital transformation and repairs or maintenance fund.

RICHMOND FELLOWSHIP (NI) LTD

REPORT OF THE COMMITTEE OF MANAGEMENT

YEAR ENDED 31 MARCH 2023

The Committee of Management continue to keep the level of reserves under review.

Plans for Future Periods

The Charity will continue with the activities outlined above in the forthcoming years, subject to satisfactory funding arrangements being available.

The Committee of Management commenced a strategic review of its services during the year and the Charity continues to be available to expand its services, again subject to satisfactory funding arrangements being available.

The financial impact of National Minimum Wage uplifts and social care staff recruitment and retention costs means we are budgeting for a deficit in 2023-24. Good financial management give the Trustees confidence that we have adequate reserves to meet the deficit and day to day running costs of the organisation.

Structure, Governance and Management

Governing Document

The Charity is a registered Society under the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969, limited by shares, incorporated on 26 June 1992 and registered as a charity for HMRC purposes. The Charity was established under model rules which created its objects and powers. The Charity is regulated by the FCA (Financial Conduct Authority).

Committee of Management

The Committee members of the Charity, also known as members of the Committee of Management manage the business of the Charity.

All members of the Committee of Management give their time voluntarily and received no benefits from the Charity.

Method of appointment for election of members of the Committee of Management

Following nominations received for membership, the Committee of Management assess suitability of candidates.

If successful, the candidate for membership is co-opted to the Committee and formally elected at the subsequent Annual General Meeting.

At each Annual General Meeting one third, or the nearest number thereto, shall retire from membership of the Committee of Management. Those eligible to retire will be those persons who have been longest in office, as laid down in the registered rules of the company.

Policies adopted for the induction and training of Committee Members

It is company policy to provide an induction programme for newly appointed committee members, to acquaint them with the organisation’s policy and practice, its aims and activities, management and governance and also what is expected of them under company law.

RICHMOND FELLOWSHIP (NI) LTD

REPORT OF THE COMMITTEE OF MANAGEMENT

YEAR ENDED 31 MARCH 2023

Risk Management

The Committee of Management has conducted a review of the major risks to which the Charity is exposed. A risk register has been established and is updated at least annually.

Key management pay arrangements

The Committee of Management consider the payscales of all employees in the context of the budgeting process.

Senior Management payscale rates follow published structured scale rates. Increases are awarded on the basis of performance, but also in the context of confirmed inflationary enhancement of core income streams.

Charity Structure

Threshold has a Committee of Management of up to 15 members who meet quarterly and are responsible for the strategic direction and policy of the Charity. At present the Committee has nine members from a variety of professional backgrounds relevant to the work of the Charity. The Secretary also sits on the Committee but has no voting rights.

A scheme of delegation is in place and day to day responsibility for the provision of services rests with the Chief Executive. The Chief Executive is responsible for ensuring that the Charity delivers the services specified and that key performance indicators are met. The Services Managers have responsibility for the day to day operational management of the Charity, individual supervision of the staff team and also ensuring that the team continues to develop their skills and working practices in line with good practice.

Working partners

We acknowledge the support we receive from the DoH and the Northern Ireland Housing Executive, the Trusts and to the contacts we have within our local housing associations, including Choice, Radius and Ark.

Responsibilities of the Committee of Management

Company law requires the Committee of Management to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing those financial statements, the Committee of Management confirm they follow best practice and:

The Committee of Management is responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with relevant statute. The Committee of Management is

RICHMOND FELLOWSHIP (NI) LTD

REPORT OF THE COMMITTEE OF MANAGEMENT

YEAR ENDED 31 MARCH 2023

Members of the Committee of Management

also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Members of the Committee of Management, who served during the year and up to the date of this report are set out on page 3.

In accordance with company law, as the company’s directors, we certify that:

Auditors

A resolution to reappoint Miscampbell & Co. will be proposed at the AGM.

This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (Charities SORP) (FRS 102), the Financial Reporting Standard (102) applicable in the UK and Republic of Ireland (FRS 102) and the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 to 2006.

Approved by the Committee of Management on 14 March 2024 and signed on its behalf by:

P Mc Garry

Dr P Mc Garry (Chair)

RICHMOND FELLOWSHIP (NI) LTD INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF RICHMOND FELLOWSHIP (NI) LTD

Opinion

We have audited the financial statements of Richmond Fellowship (NI) Ltd for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, 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) and the Charities SORP 2015: Statement of Recommended Practice for Charities.

In our opinion the financial statements:

• give a true and fair view of the state of the Charity’s affairs as at 31 March 2022 and of its incoming resources and application of resources, including its income and expenditure for the year then ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the Co-operative and Community Benefit Societies Acts (Northern Ireland) 1969 and 1976.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Committee of Management's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The other information comprises the information included in the Report of the Committee of Management other than the financial statements and our Auditors' Report thereon. The Committee of Management are responsible for the other information contained within the Report of the Committee of Management. 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.

10

RICHMOND FELLOWSHIP (NI) LTD

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF RICHMOND FELLOWSHIP (NI) LTD

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.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Committee of Management.

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

Responsibilities of the Committee of Management

As explained more fully in the Committee of Management Responsibilities Statement, the Committee of Management 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 Committee of Management 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 Committee of Management are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Committee of Management either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.

11

RICHMOND FELLOWSHIP (NI) LTD

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF RICHMOND FELLOWSHIP (NI) LTD

Auditors' 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 Auditors' 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the Charity and management. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

• obtained an understanding of the legal and regulatory frameworks that are applicable to the Charity and determined that the most significant are those that relate to the reporting framework (FRS 102 and the Co-operative and Community Benefit Societies Acts (Northern Ireland) 1969 and 1976) and the relevant tax compliance regulation in the United Kingdom;

• understood how the Charity is complying with those frameworks by making enquiries of management to understand how the Charity maintains and communicates its policies and procedures in these areas; • assessed the vulnerability of the Charity’s financial statements to material misstatement, including how fraud might occur by considering the risk of management override and by assuming revenue recognition to be a fraud risk; and

• based on this understanding our audit procedures were designed to identify non-compliance with such laws and regulations.

We assessed the susceptibility of the Charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;

To address the risk of fraud, override of controls and non-compliance with laws and regulations, we performed analytical procedures to identify any unusual or unexpected related party relationships, tested journal entries to identity unusual transactions, investigated any significant or unusual transactions and assessed whether judgements and assumptions made in determining the accounting estimates were suggestive of potential bias.

RICHMOND FELLOWSHIP (NI) LTD

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF RICHMOND FELLOWSHIP (NI) LTD

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

Use of our report

This report is made solely to the Committee of Management, as a body, in accordance with Article 38 of the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 and 1976. Our audit work has been undertaken so that we might state to the Committee of Management those matters we are required to state to them in an Auditors' 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 Charity and the Committee of Management, as a body, for our audit work, for this report, or for the opinions we have formed.

J Bethel

Mr Jonathan R Bethel FCA (Senior Statutory Auditor)

for and on behalf of

Miscampbell & Co 6 Annadale Avenue Belfast BT7 3JH

14 March 2024

RICHMOND FELLOWSHIP (NI) LTD

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT)

YEAR ENDED 31 MARCH 2023

Unrestricted Restricted
Total
Total
Notes Funds Funds Funds Funds
2023 2023 2023 2022
£ £ £ £
INCOME FROM:
Investments 4 & 15 17,837 - 17,837 20,861
Income from
charitable activities:
Grants & contracts 2 - 2,468,750 2,468,750 2,361,914
_____ __ ___ ___
Total income 15 17,837 2,468,750 2,486,587 2,382,775
_____ __ ___ ___
EXPENDITURE ON:
Raising funds 3 & 7 6,515 - 6,515 6,639
Charitable activities 3 - 2,461,184 2,461,184 2,331,505
_____ __ ___ ___
Total resources expended 3 & 15 6,515 2,461,184 2,467,699 2,338,144
_____ __ ___ ___
Net gains/(losses) on investments 7 & 15 (89,446) - (89,446) 101,322
_____ __ ___ ___
Net income/(expenditure) (78,124) 7,566 (70,558) 145,953
Transfers between funds - - - -
_____ __ ___ ___
Net movement in funds (78,124) 7,566 (70,558) 145,953
Reconciliation of funds
Total funds brought forward 956,501 1,445,085 2,401,586 2,255,633
_ __ ___ ___
Total funds carried forward 878,377 1,452,651 2,331,028 2,401,586
====== ======= ======== ========

The Statement of Financial Activities includes all gains and losses recognised in the year.

All the above amounts relate to continuing activities.

RICHMOND FELLOWSHIP (NI) LTD

BALANCE SHEET

AT 31 MARCH 2023
2023 2022
Notes £ £
FIXED ASSETS
Tangible fixed assets 6 132,094 126,068
Investments 7 1,421,790 1,503,053
_____ _____
1,553,884 1,629,121
__ __
CURRENT ASSETS
Debtors 8 213,142 153,151
Cash at bank and in hand 794,270 836,651
_____ _____
1,007,412 989,802
CURRENT LIABILITIES
Creditors: due within one year 5 & 9 (230,247) (217,316)
_____ _____
NET CURRENT ASSETS 777,165 772,486
__ __
NET ASSETS 2,331,049 2,401,607
======= =======
THE FUNDS TO THE CHARITY
Share capital 21 21
Restricted funds 15 1,452,651 1,445,085
Unrestricted funds 15 878,377 956,501
_____ _____
TOTAL FUNDS 2,331,049 2,401,607
======= =======

The financial statements on pages 14 to 23 were approved by the Committee of Management and were signed on its behalf by:

P Mc Garry T Price R Kapur Committee member Committee member Secretary Belfast

14 March 2024

RICHMOND FELLOWSHIP (NI) LTD

STATEMENT OF CASHFLOWS

YEAR ENDED 31 MARCH 2023

2023 2022
Notes £ £
Cashflows from operating activities:
Net cash used in operating activities 1 (35,532) 2,663
_____ _____
Cashflows from investing activities:
Dividends and interest from investments 17,837 20,861
Purchase of investments - -
Purchase of tangible fixed assets (24,686) (38,068)
__ __
Net cashflow provided by/ (used in) investing activities (6,849) (17,207)
_____ _____
Change in cash and cash equivalents in the year (42,381) (14,544)
Cash and cash equivalents at start of the year 836,651 851,195
_____ _____
Cash and cash equivalents at end of the year 2 794,270 836,651
======= =======
NOTE 1
Reconciliation of net (expenditure)/income to net cashflow from operating activities
2023 2022
£
 £
Net (expenditure)/income for the year as per
the Statement of Financial Activities (70,558) 145,953
Adjustments for:
Depreciation charges 18,660 21,537
(Gains)/Losses on investments 81,263 (115,349)
Profit on disposal of fixed assets - -
Dividends and interest from investments (17,837) (20,861)
(Increase)/decrease in debtors (59,991) (66,508)
Increase/(decrease) in creditors 12,931 37,891
_____ _____
Net cash used in operating activities (35,532) 2,663
======= =======
NOTE 2
Analysis of cash and cash equivalents
Bank balances 794,270 836,651
======= =======

RICHMOND FELLOWSHIP (NI) LTD

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023

1. ACCOUNTING POLICIES

(a) Basis of accounting

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (Charities SORP) (FRS 102), the Financial Reporting Standard (102) applicable in the UK and Republic of Ireland (FRS 102) and the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 to 2006.

Threshold meets the definition of a public benefit entity under FRS 102.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

The functional currency is UK sterling.

Preparation of the accounts on a going concern basis

Having reviewed the potential income and commitments for the next 12-18 month period the Committee of Management are of the view that there are no material uncertainties about the charity’s ability to continue as a going concern.

(b) Depreciation

Depreciation is calculated to write off the cost less estimated residual value of fixed assets on a straight line basis at the following rates:

Buildings : 2% p.a. Project equipment : 25% p.a. Office equipment : 25% p.a. Motor vehicles : 25% p.a.

(c) Income

Income is recognised when the charity has entitlement to the funds and it is probable that the income will be received and the amount reliably measured.

Investment income is reported gross before any management fees are deducted.

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

(d) Expenditure

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates.

(e) Government grants

Grants that relate to specific capital expenditure are treated as creditors due after more than one year which is then amortised to the income and expenditure account over the related asset’s estimated useful life. Other grants are credited to the profit and loss account when received.

(f) Pension scheme

The Charity operates two defined contribution schemes, the assets of which are held separately from those of the Charity in independently administered funds. The pension cost charge represents contributions payable to the schemes in the accounting period.

(g) Funds

Unrestricted funds are available for use at the discretion of the Committee of Management in furtherance of the general objectives of the Charity.

Restricted funds are subject to the restrictions on the expenditure imposed by the donor or through the terms of a specific contractual relationship.

RICHMOND FELLOWSHIP (NI) LTD

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023

(h) Listed investments

Listed investments are stated at market value, on the basis of the middle market price at the close of business. Whilst day to day management of the investment portfolio is carried on by experienced, registered investment managers the ultimate control and responsibility rests with the Committee of Management.

Equity investments are stated at fair value and all gains or losses, whether realised or unrealised, are reported through the Statement of Financial Activities.

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

The charity is a Northern Ireland incorporated limited company having share capital, registered under the Co-operative and Community Benefit Societies Acts (Northern Ireland) 1969 to 2006, Reg. No. IP346 and is registered with The Charity Commission for Northern Ireland Reg. No. NIC 100956. Its registered office is 432 Antrim Road, Belfast.

Trade debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.

Cash at bank and in hand includes cash and short term liquid investments with a short maturity of three months or less. Cash and cash equivalents includes short term deposit accounts with maturities of up to one year.

Cash balances held within portfolio investments in fund manager’s client accounts are held at their discretion on behalf of the company. These cash balances are included in portfolio valuations.

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of past events, it is probable that a transfer of economic benefit will be required in settlement and the amount of settlement can be estimated reliably.

While applying the company’s accounting policies, management have not made any significant judgements. There are no key assumptions concerning the future or other key sources of estimation that have a significant risk of material adjustment to the carrying amounts of assets and liabilities within the next financial year.

2. INCOME

INCOME
Unrestricted Restricted Total
Funds Funds Funds
2023 2023 2023
£ £ £
Residents’ care fees - 448,123 448,123
Supporting People Grants – NIHE - 1,290,855 1,290,855
DoH Grants - 66,035 66,035
Training and conference fees - - -
Rent & service charges - 554,160 554,160
Other income - 109,577 109,577
__ __ __
- 2,468,750 2,468,750
======== ======== ========

RICHMOND FELLOWSHIP (NI) LTD

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023

2. INCOME (Cont’d)

Unrestricted Restricted Total
Funds Funds Funds
2022 2022 2022
£ £ £
Residents’ care fees - 435,223 435,223
Supporting People Grants – NIHE - 1,203,053 1,203,053
DoH Grants - 66,035 66,035
Training and conference fees - - -
Rent & service charges - 535,774 535,774
Other income - 121,829 121,829
__ __ __
- 2,361,914 2,361,914
======== ======== ========
3. TOTAL EXPENDITURE
Unrestricted Restricted Total
Funds Funds Funds
2023 2023 2023
£ £ £
Staff salaries and national insurance - 1,620,823 1,620,823
Service expenses - 260,921 260,921
Management expenses 6,515 281,268 287,783
Establishment expenses - 287,672 287,672
Governance costs - 10,500 10,500
__ __ __
6,515 2,461,184 2,467,699
======== ======== ========

RICHMOND FELLOWSHIP (NI) LTD

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023

3. TOTAL EXPENDITURE (Cont’d)

. TOTAL EXPENDITURE (Cont’d)
Unrestricted Restricted Total
Funds Funds Funds
2022 2022 2022
£ £ £
Staff salaries and national insurance - 1,618,061 1,618,061
Service expenses - 201,291 201,291
Management expenses 6,639 192,260 198,899
Establishment expenses - 309,393 309,393
Governance costs - 10,500 10,500
__ __ __
6,639 2,331,505 2,338,144
======== ======== ========
The following amounts are included above:
Auditors’ remuneration – External Audit 3,600 3,600
Depreciation 18,660 21,537
Profit on disposal of fixed assets - -
===== =====
4. INVESTMENT INCOME
Deposit interest receivable 3,139 195
Income from investments 14,698 20,666
______ ______
17,837 20,861
===== =====

5. CREDITORS

Included in creditors are debts of nil (2022: £nil) in respect of which security has been given by the Charity.

RICHMOND FELLOWSHIP (NI) LTD

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023

6. TANGIBLE FIXED ASSETS

Land and Office Project Motor
Buildings Equipment Equipment Vehicles Total
£ £ £ £ £
COST
At 1 April 2022 141,070 118,329 428,339 15,000 702,738
Additions - 4,133 20,553 - 24,686
Disposals - - - - -
______ ______ ______ ______ _
At 31 March 2023 141,070 122,462 448,892 15,000 727,424
______ ______ ______ ______ _
DEPRECIATION
At 1 April 2022 64,634 109,218 387,818 15,000 576,670
Charge for year 2,818 2,277 13,565 - 18,660
Eliminated on disposals - - - - -
______ ______ ______ ______ _
At 31 March 2023 67,452 111,495 401,383 15,000 595,330
______ ______ ______ ______ _
NET BOOK VALUE
At 31 March 2023 73,618 10,967 47,509 - 132,094
====== ====== ====== ====== ======
At 31 March 2022 76,436 9,111 40,521 - 126,068
====== ====== ====== ====== ======

RICHMOND FELLOWSHIP (NI) LTD

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023

7. INVESTMENTS 2023 2022
£ £
Opening balance at start of period 1,503,053 1,387,704
Funds invested during the year - -
Investment income 14,698 20,666
Portfolio management costs (6,515) (6,639)
Net gains/(losses) on revaluation in the year (89,446) 101,322
_ _
Market value at end of period 1,421,790 1,503,053
====== ======
Historical cost at end of period 1,292,346 1,218,760
====== ======

The charity’s investments are managed on a discretionary basis by three independent investment brokers (Cunningham Coates, Investec, and NICIF (DfC)). None of the investments individually exceeded 5% of the total portfolio at the year end. Additionally, the portfolio investment has taken into consideration Committee approved ethical investment clauses contained in the Charity’s investment policy. Included in investments are listed investments of £1,391,423 (2022 - £1,456,893) and cash balances of £30,367 (2022 - £46,160). The cash balance is held as part of the investment portfolio and included in the overall portfolio valuation. The Committee have directed that the investments are to be held longer term (greater than 1 year).

**8. ** DEBTORS
Amounts falling due within one year:
Trade debtors 123,135 111,770
Prepayments and accrued income 90,007 41,381
_ _
213,142 153,151
====== ======
9. CREDITORS
Amounts falling due within one year:
Trade creditors 38,020 79,887
Other taxation and social security 41,959 51,205
Residents’ care allowance payable 24,669 18,531
Other creditors 27,311 27,311
Accruals and deferred income 98,288 40,382
_ _
230,247 217,316
====== ======
10. STAFF COSTS
Staff costs during the year:
Wages and salaries 1,415,380 1,424,613
Social security costs 133,450 130,872
Employer pension contributions 71,994 62,577
Agency staff - -
__ __
1,620,824 1,618,062
======= =======

RICHMOND FELLOWSHIP (NI) LTD

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023

No. No. The average number of persons employed during the year was: 70 65 ====== ======

11. TAXATION

No provision for taxation is necessary as the Richmond Fellowship (NI) Ltd is exempt from taxation by virtue of its charitable activities. The HMRC charity number is XN 91835.

12. DIRECTOR’S EMOLUMENTS

In respect of the remuneration of key management, the following amounts were paid:

2023 2022
£ £
Aggregate remuneration (including pension contributions) 121,970 117,771
====== ======

One employee received benefits of more than £60,000, falling within the £120K to £125K band.

13. RELATED PARTY TRANSACTIONS

No members of the Committee of Management received any remuneration or were paid expenses in the year. No member of the Committee or other person related to the Charity had any personal interest in any contract or transaction entered into by the Charity during the year.

14. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted Unrestricted Restricted Total Total
Funds Funds Funds Funds
2023 2023 2023 2022
£ £ £ £
Tangible Assets 132,094 - 132,094 126,068
Investments 1,421,790 - 1,421,790 1,503,053
Current Assets (445,239) 1,452,651 1,007,412 989,802
Current Liabilities (230,247) - (230,247) (217,316)
__ __ __ __
Net Assets 878,398 1,452,651 2,331,049 2,401,607
======== ======== ======== ========
. MOVEMENTS IN FUNDS
At Incoming Outgoing Reserve At
1/4/22 Resources Resources Transfers 31/03/23
£ £ £ £ £
Restricted Funds
Service delivery 1,287,306 1,177,895 (1,170,329)
-
1,294,872
Supporting People 157,779 1,290,855 (1,290,855)
-
157,779
__ __ __
__
__
1,445,085 2,468,750 (2,461,184)
-
1,452,651
Unrestricted Funds
Investments & donations 956,501 17,837 (95,961)
-
878,377
__ __ __
__
__
2,401,586 2,486,587 (2,557,145)
-
2,331,028
======== ======== ========
========
========

15. MOVEMENTS IN FUNDS