COMPANY REGISTRATION NUMBER: N1043631 CHARITY REGISTRATION NUMBER: NIC100986 Ulster-scots Community Network Company Limited by Guarantee Financial Statements 31 March 2023 AUBREY CAMPBELL & COMPANY Chartered accountants & statutory auditor 631 Lisburn Road Belfast BT9 7GT
Ulster-scots Community Network Company Limited by Guarantee Financial Statements Year ended 31 March 2023 Page Directors, annual report (incorporating the director's report) Independent auditor's report to the members 10 Statement of financial activities (including income and expenditure account) 16 Statement of financial position 17 Notes to the financial statements 19 The following pages do not form part of the financial statements Detailed statement of financial activities 32 Notes to the detailed statement of financial activities 34
Ulster-scots Community Network Company Limited by Guarantee Directors, Annual Report (Incorporating the Director's Report) Year ended 31 March 2023 The directors, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 March 2023. Reference and administrative details Registered charity name Ulster-scots Community Network Charity registration number NIC100986 Company registration number N1043631 Principal office and registered Corn Exchange office 1-9 Victoria Street Belfast BT13GA The directors Mrs. E. Cameron Mrs. L. Mulholland Mrs. A. Smyth Mr. N. Mccausland Mr. G. Campbell Mrs. C. Evans Mr. W. Carlile Mr M. Smyth {Appointed 6 April 2022) Company secretary Mr D Gilliland Auditor Aubrey Campbell & Company Chartered accountants & statutory auditor 631 Lisburn Road Belfast BT9 7GT
Ulster-scots Community Network Company Limited by Guarantee Directors. Annual Report (Incorporating the Director's Report) fcontlnued) Year ended 31 March 2023 Structure. governance and management Management The Ulster-scots Community Network (USCN) is overseen by a Board of Directors who are responsible for setting the strategic direction of the organisation, with the day to day management undertaken by the Operations Director who also implements all necessary policies as agreed by the Board. The Operations Director is responsible for ensuring that the organisation delivers on agreed tsrgets and objectives. He is also responsible for the supervision of the staff team. Public Benefit Statement The Irustees confirm that they have had due regard for the guidance produced on public benefit by Ihe Charity Commission for Northern Ireland and are pleased to report that during the period the charitable company has continued to provide public benefits through the programmes and services we offer. Current Structure and Staffing Chairman Board of Directors Operations Director Education Development Officer Publications Officer Community Development Officer Community Development Officer Community Development Officer Community Development Officer {vacant) Corporate Governance The Ulster-scots Community Network is committed to high standards of corporate governance. Although the organisation does not have shareholders, the staff and Board have a responsibility to provide clear evidence of a transparent and efFicient organisation to its stakeholders who include the Ulster-scots community, funding bodies and government.
Ulster-scots Community Network Company Limited by Guarantee Directors, Annual Report (Incorporating the Director's Report) (continued) Year ended 31 March 2023 Structure, governance and management (continued) The Board of Directors As detailed in the USCN Articles and Memorandum of Association, the Board directs the organisation's strategic planning, financial management and operalional issues. The Board meets, on average, 7 times a year with a full General Meeting to be held at least once every 15 months. The Chairman leads the Board and the Operations Director leads the management of the organisation. The Chairman's responsibilities include setting the Board Agenda and with the Operations Director, is responsible for Ihe distribution of accurate, limely and clear information pertaining to the activities of the organisation. The diversity of interest groups from within the wider Ulster-scots sector, represented by the Board is seen as a key strength of the organisation. The Operations Director attends Board meetings as a linkage between the staff of the organisation and the Board. The Operations Director plays a full role at Board Meetings but does not have voting rights at such meetings. The USCN Board are responsible for scrutinising the performance of the management in order to be satisfied as to the integrity and strenglh of financial information controls and risk management of the organisation. Internal Controls The Directors (Trustees) are responsible for the organisation's systems of internal control which are designed to provide reasonable assurance to safeguard the organisation's assets against unauthorised use or disposition and the maintenance of proper accounting records and the reliability of financial information used within the organisalion. The Ulster-S¢ots Community Nelwork recognises that effective corporate governance remains key to maintaining a strong organisational ethos in which the Ulster-scots community, Government and funders can be confident. Policies and controls are reviewed regularly by relevant personnel and actions to address non-confonnance are undertaken without delay. The financial procedures of the organisation are specifically governed by a Financial Procedures Policy and the Procurement Policy. A management accounting system is in place providing management with financial and operational performance measurement indicators. Detailed account summaries are prepared monthly and combined with up to date banking records, are regularly presented to the USCN Board in clear and concise formats.
Ulster-scots Community Network Company Limited by Guarantee Directors, Annual Report (Incorporating the Director's Report) (contlnued) Year ended 31 March 2023 Objectives and activlties Objectives The Ulster-scots Community Network (USCN) was established in 1995 to promote awareness and understanding of the Ulster-scots tradition in language. literature, music and dance as well as the contribution of the Ulster-scots community to the development of life in Northern Ireland, the border counties of the Republic of Ireland and the Ulster-scots diaspora. As a representative body of many Ulster-scots with around 650 member groups, the USCN is committed to a comprehensive exploration of the interaction between Ulster and Scotland, which has been a constant factor in the history of the British Isles. The Ulster-scots Community Network aims to preserve, promote and develop Ulster-scots heritage and culture in all its forms and to make a constructive and progressive contribution to delivering a fully inclusive society in which mutual understanding and tolerance are accepted as the norm - a society at peace with itself. We seek to work to develop a culturally confident and creative community capable of playing a key role in our society in future. We aim to achieve this by: _ Providing an umbrella organisation for all interest groups engaging in Ulster-scots activities language, culture and history- Increasing Capacity and building relevant skills with the Ulster-scots community; Promoting Ulster-scots activities and aiming to increase community confidence- Acting as a focal point for dissemination of information concerning Ulster-scots., Developing Ulster-scots culture and heritage throughout the education and tourism sectors and throughout the wider community. Strategic report The following sections for achievements and performance and financial review form the slrategic report of the charity.
Ulster-scots Community Network Company Limited by Guarantee Directors, Annual Report (Incorporating the Director's Report) (continued) Year ended 31 March 2023 Achievements and performance Membership and Member Groups The USCN has continued to support our core member organisations. The Network ¢urrenlly 5UPPOrts approximately 650 registered groups throughout Northern Ireland, the border counties of the Republic of Ireland and the wider Ulster-scots diaspora. These groups include Ulster-scots cultural groups, marching bands, local history societies, education groups. churches, and schools amongst others. Activities, Publications and Events during 2022 and into 2023 Based in the Discover Ulster-scots Centre within the historic Corn Exchange building in Belfast are the Ulster-scots Community Network's office. The NeOrk also manages the visitors centre, performance space and shop unit there. This space provides a visible presence for the Ulster-scots community in Belfast and showcases their role, impact and contribution to wider society including within Northern Ireland, the Border Counties, and the impact Ihe diaspora has had on world history. It also allows us to showcase the role that the Ulster-scots community played in the development of Belfast and its industrial contribution to the world. The Board and staff view the centre as an opportunity to heighten awareness of this contribution and to maintain the visibility of the Ulsler-scots community. The Network has resumed their work with groups across Ulster both in the real world, as confidence returns to Ihe sector and people want to interact at a personal level again after spending 50 long connecting via technology. We do continue as well to work virtually with those groups who still haven't the confidence to bring groups of people together. USCN also continued to build upon opportunities for providing Ulster-scots materials into the communty as part of our outreach work and our collaboration with member groups. This year, also saw a return to working with our member groups in the Border Counties and assisting them as they sought to develop their connections on a broader basis than had been possible for the last few years. Other notable activities include: Maintaining membership engagement - 66 groups either joined or renewed their membership of the NeOrk over the course of the year, keeping membership around 650 groups. USCN staff provided assistance to member groups across the year with over 350 meetings and 2500 responses to various queries groups had. We also assisted groups to secure nearly£450k in financial assistance in the period. Throughout the year staff delivered a range of talks to groups, as well as exhibition materials in a variety of venues with a near doubling year on year - partly driven by the removal of restrictions to 112 sessions. The Education Officer provided lalks to schools on a further 125 occasions during the year, and USCN staff distributed almost 20k items of literature and promotional material during the period covered by this report. USCN also undertook promotional work al a range of cultural and information events this year including festivals, conferences and cultural showcases. USCN processed almost 200 Access Nl certificales this year for member groups as well as assisting over 50 member groups with policy advice and guidance as we seek to enhance the capacity of the community. USCN also continue to develop their online presence through a variety of social media channels as
Ulster-scots Community Network Company Limited by Guarantee Directors. Annual Report (Incorporating the Director's Report) (continu8d) Year ended 31 March 2023 they look to broaden the reach of their message particularly as they look to engage with the Ulster-scots diaspora. As part of its ongoing programme of work USCN also delivered Open College Network Nl accredited courses in Ulster-scots History and Identty with 11 courses being delivered across Northern Ireland. The Publications Officer was extremely productive with articles being produced and carried in a range of newspapers and magazines throughout the year, as well as researching articles on other famous Ulster-scots as the basis for future publications. Flnancial review We are grateful to the following organisations who provided support to the USCN during the period under review: Ulster-scots Agency - Core Funding support including salaries, establishment costs and project monies. Ulster-scots Agency under their Small Grants Scheme for delivery of events in the community- Arts Council of Northern Ireland - Salary support (Publications OfFicer) under their AFP scheme, as well as programming costs for our artistic programme. Heritage Lottery under the CRESI scheme administering funding on behalf of Department for Communities to recruit Staff to assist the future development of the organisation within the sector. Scottish Book Trust - a grant to allow us to publish an anthology of Scots poetry by Stuart A Paterson. We are the first organisation outside Scotland to receive this grant from the Scots Government. RESERVES POLICY Reserves are required by any organisation to help offset the inherent risk potential of reliance on funding applications and the processes they entail. USCN aims to hold three months core operating costs as a Business Reserve at all times. This ensures an effective salary net exists to cover fixed costs and staff salaries as well as successfully completing any outstanding project commitments. The actual financial amount held in reserve is reviewed regularly and is dependent on the availability of assets and the mean monthly operating totsl as calculated at each review.
Ulster-scots Community Network Company Limited by Guarantee Directors. Annual Report (Incorporating the Director's Report) (continued) Year ended 31 March 2023 Plans for future periods USCN is committed to the delivery of the Key Performance Indicators as set out in the current 2023 Business Plan of the organisation. These include.. Help secure £500k in financial assistance for member groups. Provide 400 advice sessions to member groups on a range of relevant issues. Deliver a range of geographically diverse information sessions on funding. Support at least 40 member groups with policy development Facilitate 100 Disclosure certificates through Access Nl Recruit at least 100 participants for the OCN Nl Accredited Courses offered by USCN. Deliver talkslPresentations to at least 60 groups Grow the Network by 5 % during the year Increase walk-in visitors to the Discover Ulster-scots Centre by 10/0. Deliver a range of cultural activities through the centre Meel regularly with key member organisations and maintain a strong and visible online and media presence Future Grant Funding The USCN has secured core funding from the Ulster-scots Agency for the 2023 calendar year. This agreement expires in December 2023. Negotiations will commence to secure a financial package from the Ulster-scots Agency for 2024, with a business plan being submitted in late 2023. It is a150 hoped that during 2024 we will be submitting a multi-year business plan which will assist us lo move away from the current funding model. The Directors are confident that the Ulster-scots Agency will agree to provide sufficient core funding to allow the Network to continue in existence and are not aware of any reason why the Ulster-scots Agency's financial support might be withdrawn. Arts Council funding has been secured for the current financial year 2023124 to SUPPOrt the post of Publications Officer and other financial support has been received from Heritage Lottery Fund to support an additional post within the Network through until 2025. Directors. responsibilities statement The directors, who are also directors for the purposes of company law, are responsible for preparing the directors, report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the charity directors to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.
Ulster-scots Community Network Company Limited by Guarantee Directors. Annual Report (Incorporating the Director's Report) (Continued) Year ended 31 March 2023 In preparing these financial statements, the directors are required to: select suitable accounting policies and then apply them consistently., obsetve the methods and principles in the applicable Charities SORP; make judgments and accounting estimates that are reasonable and prudent., state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements- prepare the financial statements on the going concern basis unless it is inappropriate to presume thal the charity will Continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any lime the financial position of the charity and enable them to ensure that the financial statements Comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor Each of the persons who 15 a director at the date of approval of this report confims that- so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware., and they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
Ulster-scots Community Network Company Limited by Guarantee Directors, Annual Report (Incorporating the Director's Report) (continuedj Year ended 31 March 2023 The directors, annual report and the strategic report were approved on 28 November 2023 and signed on behalf of the board of trustees by.. Mrs. E. Cameron Director Mrs. L. Mulholland Director Mrs. A. Smyth Director Mr. N. Mccausland Chairman Mr. G. Campbell Director Mrs. C. Evans Director Mr. W. Carlile Director Mr M. Smyth Director LAJ.
Ulster-scots Community Network Company Limited by Guarantee Independent Auditor's Report to the Members of Ulster-scots Community Network Year ended 31 March 2023 Opinlon We have audited the financial statements of Ulster-scots Community Network (the 'charity') for the year ended 31 March 2023 which comprise the statement of financial activities (including income and expendilure account), statement of financial position 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the charity's affairs as at 31 March 2023 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., have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with Intemational Standards on Auditing (UK) {ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditols responsibilÉties for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Material uncertainty related to going concern We dW attention to note 3 in the financial statements, which indicates that in forming our unqualified opinion, we have considered the adequacy of the disclosures made in the financial statements concerning the Charity's ability to continue as a going concern. Short term grant funding horizons mean that the organisation must apply for core financial assistance on an annual basis and, at the date of our audit report, whilst confirmation has been received for the 2023 calendar year, the charity is not in receipt of a letter of offer extending beyond that period. The financial statements have been prepared on a going concem basis, the validity of which depends on the continued support of the Charity's grant funders. As staled in note 3, these events or conditions, along with the other matters as set forth in nole 3, indicate that a material uncertainty exists that may cast significant doubt on the charity's ability to continue as a going concern. Our opinion is not modified in respect of this matter. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevanl sections of this report. 10
Ulster-scots Community Network Company Limited by Guarantee Independent Auditor's Report to the Members of Ulster-scots Community Network (conllnuett) Year ended 31 March 2023 Other information The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit- the information given in the directors, report for the financial year for which the financial statements are prepared is consistent with the financial statements.. and the directors, report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audil. we have not identified material misstatements in the directors, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us., or the financial statements are not in agreement with the accounting records and returns- or certain disclosures of directors, remuneration specified by law are not made-, or we have not received all the information and explanations we require for our audit. 11
Ulster-scots Community Network Company Limited by Guarantee Independent Auditor's Report to the Members of Ulster-scots Community Network fcontinuedj Year ended 31 March 2023 Responsibilities of directors As explained more fully in the directors, responsibilities statement, the directors (who are also the directors for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors detemiine 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 directors are responsible for assessing the charity's abiltty to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the charity or to cease operations, or have no realistic altemative but to do so. 12
Ulster-scots Community Network Company Limited by Guarantee Independent Auditor's Report to the Members of Ulster-scots Community Network (contlnued) Year ended 31 March 2023 Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to Issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS {UK} will always detect a material misstalement 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows.. the engagement partner ensured that the engagement team collectively had the appropriate competence. capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.. we identified the laws and regulations applicable to the company through discussions with trustees and other management. we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence., and identified laws and regulations were communicated wilhin the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial slatements to material misstatement, including obtaining an understanding of how fraud might occur, by.. making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud., and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we- performed analytical procedures to identify any unusual or unexpected relationships., tested journal entries to identify unusual transactions- and assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to.. agreeing financial statement disclosures to underlying 5UPPOrting documentation-, 13
Ulster-scots Community Network Company Limited by Guarantee Independent Auditor's Report to the Members of Ulster-scots Community Network (conflnued) Year ended 31 March 2023 reading the minutes of meetings of those charged with governance., and enquiring of management as to actual and potential litigation and claims. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. As part of an audit in accordance with ISAS (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due lo fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error. as fraud may involve collusion, forgery, intentional omissions. misrepresentation5, or the override of internal control. Obtain an understanding of intemal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, bijt not for the purpose of expressing an opinion on the effectiveness of the intemal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. Conclude on the appropriateness of the directors, use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going Concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the charity to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 14
Ulster-scots Community Network Company Limited by Guarantee Independent Auditor's Report to the Members of Ulster-scots Community Network (contlnued) Year ended 31 March 2023 We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in intemal control that we identify during our audit. Use of our report This report is made solely to the charity's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state lo the charity's members those matters we are required to state to them in an auditorfs 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 charity's members as a body, for our audit work, for this report, or for the opinions we have formed. Joh ee enio Statutory Auditor) Fora n beha Aubrey Campbell ompany Chartered accountants & statutory auditor 631 Lisburn Road Belfast BT9 7GT 28 November 2023 15
Ulster-scots Community Network Company Limited by Guarantee Statement of Financial Activities (including income and expenditure account) Year ended 31 March 2023 2023 Restricted funds Total funds 2022 Total funds Nots Income and endowments Donations and legacies Other trading activities Investment income 447,695 4,318 140 447,695 4,318 140 385.120 2,299 Total income 452,153 452,153 387,421 Expenditure Expenditure on raising funds.. Costs of other trading activities Expenditure on charitable activities Other expenditure Total expenditure {3,346) (3,346) 187 (366,567) (366,567) (448,284) {77) {369,913) (448,174) 9.10 11 (369,913) Net incomel(expendtture) and net movement in funds 82,240 82.240 (60,753) Reconciliation of funds Total funds brought forward Total funds carried forward 162,990 162,990 223,743 245,230 245,230 162,990 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes on pages 19 to 30 forni part ofthese flnanclal statements. 16
Ulster-scots Community Network Company Limited by Guarantee Statement of Financial Position 31 March 2023 2023 2022 Note Fixed assets Tangible fixed assets 16 16,760 24,451 Current assets Stocks Debtors Cash at bank and in hand 17 18 8,853 13,423 218,927 4,486 15,971 149.500 241,203 169,957 Creditors: amounts falling due within one year Net current assets 19 12,733 31,418 228,470 138,539 Total assets less current liabilities 245,230 162,990 Net assets 245,230 162,990 Funds of the charity Restricted funds 245,230 162,990 Total charity funds 21 245,230 162,990 The statement of financial position continues on the following page. The notes on pages 19 to 30 form part of these financial statements. 17
Ulster-scots Community Network Company Limited by Guarantee Statement of Financial Position (continued) 31 March 2023 These financial statements were approved by the board of trustees and authorised for issue on 28 November 2023, and are signed on behalf of the board by: Mrs. E. Cameron Director Mrs. L. Mulholland Director Mrs. A. Smyth Director Mr. N. Mccausland Chairman Mr. G. Campbell Director Mrs. C. Evans Director Mr. W. Carlile Director Mr M. Smyth Director The notes on pages 19 to 30 form part of these financial statements. 18
Ulster-scots Community Network Company Limited by Guarantee Notes to the Financial Statements Year ended 31 March 2023 General information The charity is a public benefit entity and a private company limited by guarantee, registered in Northern Ireland and a registered charity in Northern Ireland. The address of the regislered office Is Corn Exchange, 1-9 Victoria Street, Belfast, BT13GA. Statement of compliance These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland,, the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021 (Charities SORP (FRS 102)) and the Companies Act 2006. Accounting policies Basis of preparation The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure. The financial statements are prepared in sterling, which is the functional currency of the entity. Going concern The Ulster-S¢ots Community Network (USCN) is dependent upon grant assistance for its revenues. The Ulster-scots Agency provides the USCN with core funding and has provided USCN with confirmalion of funding for the financial year under review. Total income recognised in the 2022123 financial statements from the Ulster-scots Agency amounted to some £315k. Discussions are ongoing with the Ulster-scots Agency to secure future funding. Efforts are being made by the USCN to diversify its funding base to ensure that activity levels are maintained. However, it remains that the Ulster-scots Agency is the charity's largest funder and further reductions in financial assistance could affect the organisation's effectiveness. Nevertheless, the directors are confident thal the USCN will be in receipt of sufficient funding to allow the charity to continue in existence, nor are they aware of any reason why the Ulster-scots Agency's financial support might be withdrawn. On this basis, the directors consider that the preparation of the financial statements on a going concern basis is appropriate, which assumes that the Ulster-scots Community NeOrk will continue in operational existence for the foreseeable future. Thi5 assumes that the Ulster-scots Agency grant funding will continue. However, this material issue may cast doubt upon Ihe ability of the charity to continue as a going concern and, therefore, it may be unable to realise assets and discharge liabilities in the nomial course of business. The financial statements do not conlain any adjustments that would result if future funding was unavailable. 19
Ulster-scots Community Network Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2023 Accounting policies (¢ontlnued) Judgements and key sources of estimation uncertainty The preparation of the financial statements requires management to make judgemenls, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Income tax The company is registered as a charity for tax purposes under reference XR19610. The directors consider that all income received and expenditure incurred is related to the company's charitable objects and, hence, the company is not subject to corporation tax on any surpluses. Fund accounting Funds held by the charity are either.. Unrestricted general funds these are funds which can be used in accordance with the charitable objects at the discretion of the directors. Designated funds these are funds set aside by the directors out of unrestricted funds for specific future purposes or projects. Restricted funds these are funds that can only be used for particular purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Incoming resources All incoming resources are included in the statement of financial activities when entitlement has passed to the charity., it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income.. income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. legacy income is recognised when receipt is probable and entitlement is established. income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers. income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted. 20
Ulster-scots Community Network Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2023 Accounting pollcies (continued) Resources expended Resources expended are included in the statement of Financial Activities on an a¢¢ruals basis, inclusive of any VAT which cannot be recovered. Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to expenditure. Certain expenditure 15 directly attributable to specific activities and has been included in those cost categories. Any common costs have been allocated to programme costs as part of funding budgets. Costs of generating funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes including the charity's restaurant. Charitable activities, costs comprise those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. In includes both costs that can be allocated directly to such activities and any indirect costs necessary to support them. Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include items such as audit fees and costs linked to the strategic management of the charity. Tangible assets All fixed assets are initially recorded at cost less accumulated depreciation. Depreciation is provided at rates calculated to write off the cost of each asset over its expected useful life. The carrying values of tangible fixed assels are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable. Depreciation Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows= Fixtures and Fittings Office Equipment 20°/o Straight line 20°/o Straight line Impairment of fjxed assets A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the Carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impaimients are also reviewed for possible reversal al each reporting date. For the purposes of impaiment testing, when st is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallesl identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. 21
Ulster-scots Community Network Company Limited by Guarantee Notes to the Financial Statements fcontlnued) Year ended 31 March 2023 Accounting policies (contlnued) Impaimient of fixed assets (¢ontlnued) For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units. Stocks Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Net realisable value is the amount for which stock can be sold minus the associated costs of selling it. Financial instruments A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs. Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. Debt instruments are subsequently measured at amortised cost. Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impaiment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship. Financial assets that are measured at cost or amortised Cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impaiment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impaimient. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals ol impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. 22
Ulster-scots Community Network Company Limited by Guarantee Notes to the Financial Statements {¢ontinuedJ Year ended 31 March 2023 Accounting policies (continued) Defined contribution plans Conlributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises. Employee benefits The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. Limited by guarantee Every member of the company undertakes to contribute to the assets of the company in the event of its being wound up while helshe is a member or within one year after helshe ceases to be a member, for payment of the debts and liabilities of the company contracted before he/she ceases to be a member and of the cost, charges and expenses of winding up and for the adjustment of the rights of the contributories amongst themselves, such amount as may be required not exceeding £1. Donations and legacies Restricted Total Funds Funds 2023 Restricted Total Funds Funds 2022 Donations Donations Reimbursement from Ulster Scots Agency 5,177 5,177 13 13 41,906 41,906 23
Ulster-scots Community Network Company Limited by Guarantee Notes to the Financial Ststements (continued) Year ended 31 March 2023 Donations and legacies (Continued) Restricted Total Funds Funds 2023 Restricted Total Funds Funds 2022 Grants Grants receivable - Ulster Scots Agency project funding Grants receivable - Ulster Scots Agency core funding Grants receivable- The Arts Council ofNI Grants receivable - Department for Communities Grants receivable - National Heritage Grant Grants receivable - Scottish Book Trust Grant for Wheen 1.000 1,000 9,433 9,433 313,964 313.964 331,148 331,148 33,802 33.802 29,518 29,518 15,008 15,008 49,716 49,716 2,130 2,130 447,695 447,695 385,120 385,120 Other trading activities Restricted Total Funds Funds 2023 Restricted Total Funds Funds 2022 Fee income Shop sales 1,295 3,023 1,295 3,023 1,060 1,239 1,060 1,239 4,318 4,318 2,299 2,299 Investment income Restricted Total Funds Funds 2023 Restricted Total Funds Funds 2022 Bank interest receivable 140 140 Costs of other trading activities Restricted Total Funds Funds 2023 Restricted Total Funds Funds 2022 Costs of other trading activities - Shop costs 3,346 3,346 {187) (187) 24
Ulster-scots Community Network Company Limited by Guarantee Notes to the Financial Statements {¢onUnued) Year ended 31 March 2023 Expenditure on charitable activities by fund type Restricted Total Funds Funds 2023 Restricted Total Funds Funds 2022 Ulster Scots Cultural Advancement Support costs 353,275 13,292 353,275 13,292 433.136 15,148 433,136 15.148 366,567 366,567 448,284 448,284 10. Expenditure on charitable activities by activity type Activities undertaken directly Support Total funds costs 2023 Total fund 2022 Ulster Scots Cultural Advancement Governance costs 353,275 353,275 13,292 433,136 15,148 13,292 353,275 13,292 366,567 448,284 11. Other expenditure Restricted Total Funds Funds 2023 Restricted Tolal Funds Funds 2022 Loss on disposal of tangible fixed assets 77 77 12. Net in¢omel(expenditure) Net incomel{expenditure) is stated after chargingl{crediting): 2023 2022 Depreciation of tangible fixed assets Loss on disposal of tangible fixed assets 7,691 8,632 77 13. Auditors remuneration 2023 2022 Fees payable for the audit of the financial statements 5,100 6,100 25
Ulster-scots Community Network Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2023 14. Staff costs The total staff costs and employee benefits for the reporting period are analysed as follows.. 2023 2022 Wages and salaries Social security costs Employer contributions to pension plans 194,264 15,928 5,833 216,025 203,259 17,481 6,217 226,957 The average head count of employees during the year was 6 (2022: 6). The average number of full-time equivalent employees during the year is analysed as follows: 2023 2022 Number of administrative staff Number of management staff No employee received employee benefits of more than £60,000 during the year (2022: Nil). 15. Trustee remuneration and expenses No remuneration or other benefits from employment with the charity or a related entity were received by the trustees., 16. Tangible fixed assets Fixtures and fittings Equipment Total Cost At 1 April 2022 and 31 March 2023 Depreciation At 1 April 2022 Charge for Ihe year At 31 March 2023 6,943 49,939 56,882 5,120 575 27,311 7,116 32,431 7,691 5,695 34,427 40,122 Carrying amount At 31 March 2023 1,248 15,512 16,760 At 31 March 2022 1,823 22,628 24,451 17. Stocks 2023 2022 Raw materials and consumables 8,853 4,486 26
Ulster-scots Community Network Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2023 18. Debtors 2023 2022 Trade debtors Prepayments and accrued income 2,323 11,100 8.174 7,797 13,423 15,971 19. Creditors: amounts falling due within one year 2023 2022 Accruals and deferred income Social security and other taxes Other creditors 11,399 29,613 555 1,250 1,334 12,733 31,418 20. Pensions and other post retirement benefits Defined contribution plans The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £5,833 (2022: £6,217). 21. Analysis of charitable funds Unrestricted funds At 31 March 20 23 At 1 April 2022 Income Expenditure Transfers At 31 March 20 22 At 1 April 2021 Income Expenditure Transfers 27
Ulster-scots Community Network Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2023 21. Analysis of charitable funds (conunued) Restricted funds At 31 March 20 23 At 1 April 2022 Income Expenditure Transfers Restricted Funds Restricted Fund - BCC Project Restricted fund - DFC Restricted fund Co-operation Ireland Restricted fund Ulster Scots Agency Restricted fund Department of Foreign Affairs Restricted fund National Heritage Grant Restricted fund Scottish Book Trust Grant for Wheen Restricted fund - DFC Capital Equipment Grant 97,693 399,307 (361,1761 12,198 148,022 200 200 1,473 (736) 737 52,900 1,000 (2,650) (12,198) 39.052 49,716 (540) 49,176 2.130 (2,130) 10,724 (2,681) (369,913) 8,043 162,990 452,153 245,230 At 31 March 20 22 At 1 April 2021 Income Expenditure Transfers Restricted Funds Restricted Fund - BCC Project Restricted fund - DFC Restricted fund CoThOperation Ireland Restricted fund Ulster Scots Agency Restricted fund Department of Foreign Affairs Reslricted fund Nalional Heritage Grant Restricted fund Scottish Book Trust Grant for Wheen Restricted fund - DFC Capital Equipment Grant 131,704 362,980 (396,073) (919) 97,692 27,902 200 (28,582) 680 200 2,209 (736) 1,473 52,801 9,433 (9,497) 164 52,901 8,927 (9,002) 75 15,008 (4,284) {448,174) 10,724 162,990 223,743 387,421 28
Ulster-scots Community Network Company Limited by Guarantee Notes to the Financial Statements {¢ontinued) Year ended 31 March 2023 21. Analysis of charitable funds (eontinuedj The directors consider that all grant funds received by the charity are restricted in nature and are applied for the purposes for which the grant was made. 22. Analysis of net assets between funds Restricted Total Funds Funds 2023 Tangible fixed assets Current assets Creditors less than 1 year Net assets 16,760 241,203 112,7331 245,230 16.760 241,203 112,7331 245,230 Restricted Total Funds Funds 2022 Tangible fixed assets Current assets Creditors less than 1 year Net assets 24.451 169,957 {31,418) 162,990 24.451 169.957 131,418) 162,990 23. Operating lease commitments The total future minimum lease payments under non-cancellable operating leases are as follows-. 2023 2022 Not laler than 1 year Later than 1 year and not later than 5 years 67,309 67,309 67,309 67,309 134,618 On 3 July 2018 the charity signed a lease in relation to the rental of their building, this disclosure has been made in the accoun15 due to it's material nature. 24. Llmitation of auditors liability The company has entered into a liability limitation agreement with its auditor, Aubrey Campbell and Company, on the following basis: (al the maximum aggregate amount of the auditor's liability to the company shall not exceed the sum of seven times the fees payable (excluding expenses and value added tax) under the engagement letter agreed for the financial period, or £30,000, whichever is the lesser amount. (b) the agreement was passed by a resolution of the company's members on 28th September 2023. 29
Ulster-scots Community Network Company Limited by Guarantee Notes to the Financial Statements (contlftued) Year ended 31 March 2023 25. Related parties The directors have confirmed that there were no related party transactions during the year. 30
Ulster-scots Community Network Company Limited by Guarantee Management Information Year ended 31 March 2023 The following pages do not form part of the financial statements. 31
Ulster-scots Community Network Company Limited by Guarantee Detailed Statement of Financial Activities Year ended 31 March 2023 2023 2022 Income and endowments Donations and legacies Donations Reimbursement from Ulster Scots Agency Grants receivable - Ulster Scots Agency project funding Grants re1Vable- Ulster Scots Agency core funding Grants receivable- The Arts Council of Nl Grants receivable - Department for Communities Grants receivable - National Heritage Grant Grants receivable - Scottish Book Trust Grant for Vvheen 5,177 41,906 1,000 313,964 33,802 13 9,433 331,148 29,518 15,008 49,716 2,130 447,695 385,120 Other trading activities Fee income Shop sales 1,295 3,023 1,060 1,239 4,318 2,299 Investment income Bank interest receivable 140 Total income 452,153 387,421 32
Ulster-scots Community Network Company Limited by Guarantee Detailed Statement of Financial Activities f¢ontinuedJ Year ended 31 March 2023 2023 2022 Expenditure Costs of other trading activities Opening stock Purchases Closing stock 4.486 7,713 8.853 4,033 266 4,486 3,346 {187) Expenditure on charitable activities Wages and salaries Employerfs NIC Pension costs Rent Rates and water Light and heat Repairs and maintenance Insurance Other motorltravel costs Legal and professional fees Telephone Other office costs Depreciation Other interest payable and similar charges Advertising Event costs Staff training Returned grant money 194,264 15,928 5,833 67,333 19,801) 10,638 5,323 3,240 11,789 11,382 5,207 10,590 7.691 501 2,180 22,206 2,263 203,259 17,481 6,217 86,525 10,797 5,622 1,316 4,930 10,584 7,192 4,925 9,373 8,632 416 16,485 23,348 2,600 28,582 366,567 448,284 other expenditure Loss on disposal of tangible fixed assets 77 Total expenditure 369,913 448,174 Net Sncomel(expenditure} 82,240 (60,753) 33
Ulster-scots Community Network Company Limited by Guarantee Notes to the Detailed Statement of Financial Activities Year ended 31 March 2023 2023 2022 Costs of other trading activities Costs of other trading activities - Shop costs Shop costs- opening stock Shop costs- purchases Shop costs - closing stock 4,486 7,713 (8,853) 3,346 4,033 286 (4,486) {187) Costs of other trading activities 3,346 {187) Expenditure on charitable activities Ulster Scots Cultural Advancement Activities undertaken directly Direct charitable activity 1 wageslsalaries Direct charitable activity 1 employer's NIC Direct charitable activity 1 pension costs Direct charitable activity 1 rent Direct charitable activity 1 rates & water Direct charitable activity 1 light & heat Direct charitable activity 1 repairs & maintenance Direct charitable activity 1 insurance Direct charitable activity 1 other motorltravel costs Direct charitable activity 1 legal and professional fees Direct charitable activity 1 telephone Direct charitable activity 1 other office costs Direct charitable activity 1 advertising Direct charitable activity 1 event costs Direct charitable activity 1 staff training Direct charitable activity 1 Returned grant money 194,264 15,928 5,833 67,333 {9,801) 10,638 5,323 3,240 11,789 6,282 5,207 10,590 2,180 22,206 2.263 203,259 17,481 6,217 86,525 10,797 5,622 1,316 4,930 10,584 1,092 4,925 9,373 16,485 23,348 2,600 28,582 353,275 433,136 Govemance costs Governance costs - audit fees Governance costs - depreciation Governance costs - other finance costs 5,100 7,691 501 6,100 8,632 416 13,292 15,148 Expenditure on charitable activities 366,567 448,284 34