Charlty Registration No. NIC101035 MORNING STAR HOUSE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Iii harbinson mulholland
MORNING STAR HOUSE LEGALAND ADMINISTRATIVE INFORMATION Management Committee R Dowey (Treasurer) J Cassidy (Secretary) R Culbert (Chairperson) (Appointed 16 May 2023) C Faulkner (Vice Chairperson) (Appointed 16 May 2023) M Lewis (Committee member) (Appointed 16 May 2023) P Mcllvenney (Committee member) (Appointed 16 May 2023) T Flanagan (Committee member) (Appointed 4 April 2023) Charfty number NIC101035 Audltor Harbinson Mulholland Centrepoint 24 Omieau Avenue Belfast Co. Antrim Northem Ireland BT2 8HS Bankern AIB Group (UK) 35 University Road Belfast BT7 1ND
MORNING STAR HOUSE CONTENTS Page Management Committee report Independent auditorfs report Statement of financial activities 10 Balance sheet 11 ststement of cash flows 12 Notes to the financial ststements 13-22
MORNING STAR HOUSE MANAGEMENT COMMirrEE REPORT FOR THE YEAR ENDED 31 MARCH 2023 The Management Committee present their report and the audited financial statements of the charity for the year ended 31 March 2023. The Management Committee have adopted the provisions of the Statement ol Recommended Practice (SORP) "Accounting and Reporting by Charities. {FRS 101} in preparing the annua report and financial statements of the Charity. Manag8m8nt Committee of the Charfty In accordance with the Constitution approved in August 2018, responsibility for the Management of the Moming Star House rests with the Morning Star Management Committee. The Management committee discharges those responsibilities in accordance with its Constitution. The Management Committee comprises members nominated by the Morning Star Praesidium of the Legion of Mary along with general appointments for the purposes of addressing periodic skills shortages, etc. It has 4 office bearers: a Chairperson, Vice Chairperson, Treasurer and Secretary supported by several other members. Changes to membershlp of the Management Commlttee durlng the year ended 31 March 2023 Committee membership is as follows.. R Culbert - Chair (appointed 18 May 2023) HA Fitzsimons- Chair (resigned 3 October 2023) J Cassidy - Secretary R Dowey- Treasurer T Flanagan - Committee member {appointed 4 April 2023) C Faulkner- Committee member (appointed 16 May 2023} M Lewis - Committee member (appointed 18 May 2023) P Mcllvenny- Committee member (appointed 16 May 2023) M Doyle - Committee member {resigned 7 February 2023) M Mccurley - Committee Member (resigned 6 December 20221 G McGuigan- Committee Member {resigned 1 April 20221 SR R Curran- Committee Member (appointed 6 June 2023) M McGlade- Committee member (resigned 1 April 2022) In October 2018, the Charity Commission for Northern Ireland (CCNI) opened a statutory enquiry. CCNI'S report on its statutory enquiry was expected to be issued in Q4, 2019, but remains outstanding. STRUCTURE GOVERNANCE AND MANAGEMENT Constitutlon and objects Morning Star House is a not-for-profit hostel wlth charitable ststus that provldes for and works with homeless men in Belfast. It is managed by the Management Committee in accordance with its constitution. The Hostel has as its objectives.. to support the homeless through Provision of Temporary Accommodation, A5SiStance and Capacity Building towards the Bettem)ent of the individual. We are constantly working to improve our Governance and have strengthened our Management Committee with New members who have considerable experience in areas of Governance and the needs of homeless in Northern Ireland. This has b88n welcomed by both the CCNI and NIHE.
MORNING STAR HOUSE MANAGEMENT COMMITTEE REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Recruiting and Appointing of New Management Committee Members The constitution requires that the Committee has a minimum of 4 Management Committee members. New members must be approved by the Management Committee from time to time provided that the prescribed maximum 12 is not 8xceeded. Declslon-maklng The responsibility for the management of the hostel is discharged. on behalf of the Momlng Star Praesidium of the Legion of Mary by the Management Committee. A minimum of four members must be present for any decisions to be deemed valid. Members are responsible for the legal and financial- management of Morning Star House. Relatlonshlp wfth oth•r charlty or organlsatlon The charity supports the ethos of the Legion of Mary. It aims to work in conlunction with partnar charlties, other homeless hostels and bodies offering all those in need the best support available. The charity also works in conjunction with Council for the Homeless, TarAnal, Extern etc. The Charty has been working closely with the Charity Commission Nl to improve governance and adminlstration systems and to enhance the standing of the charity. Statement of Risks The Management Committee is committed to ongoing assessment of risk5 to the achievement of Moming Star House objectives while complying with any impacting regulation and legislation. It also considers extemal factors e.g., funding reductions whi18 recognising these are outside its immediate control. The new fomialised, structure means of risk assessment and assurance was developed the previous year. The othorking's of this was captured in a risk register which also identifies mitigations. Main risks ongoing are= Loss of funding through non-compliance with conditions of funding andlor being considered incapable of handling public ndS effectively Recruitment and tumover of staff
MORNING STAR HOUSE MANAGEMENT COMMITTEE REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Lack of capacity to engage staffing levels are still a concern and difficult to maintain desired levels due to absences and tumover. Steps were taken to address this and access to employee assistan telephone helpline and the use of Occupational Health Services have been running for over a year now. OBJECTIVES AND ACTIVITIES The principal activity of the charity is to carry on for the benefit of the community the provision of accommodation for men of 18 years and over who are homeless upon terms appropriate to their means. In particular, the Hostel shall provide accommodation for homeless men who suffer other disadvantages. inter alia, addiction to alcohol, drugs, gambling that render them unable to secure other accommodation. The ethos of Legion of Mary, as encapsulated in the Constitution, is pivotal to that support service we provlde. Hlstory of the Hostel The legion of Mary has provided temporary accommodation to homeless men since 1938 at the Morning Star Hostel 125 Divis Street Belfast. On 11 February 2002 a fire at the building led to the death of 2 of the hostel residents. The fire also rendered the hostel premises unusable. The Morning Star Hostel was without premises until 28 July 2004 when the current hostel opened. The hostel is a refuge for homeless men, many of whom have a history of rough sleeping and alcohol or substance misuse and frequently present challenging behaviour. The premises can accommodate up to 39 guests in 24 bedrooms on the wet side, 7 bedrooms on the dry side, 4 self-contsined apartments and 4 8mergency beds. Other support and recreational facilities are available. ACHIEVEMENTS AND PERFORMANCE Explanation of the Maln Objectlves for the Year The primary objective for the year was service provision and resettlement support to the homeless. This necessitates securing adequate and additional income to continue to provide a safe, secure, and compliant support service to our guests, The hostel's range of services is extensive and includes slgnposting frontline outreach, hostel and supported temporary and longer-term accommodation, but also includes life-skills coaching, education, counselling, and training. INe are ideally placed in the community to further develop these seniices for those in need. Morning Star House aCknoedgeS that its services should bè directed towards assisting those homeless men, who are unlikely to be able to resolve their homelessness problem without intervention of skilled support staff. It aims to encourage and foster a spirit of self-help and self-reliance. The Hostel still has several volunteers who give their time and effort to help out in the hostel, particularly in the evenings and the weekends. This was built back up after the pandemic caused the use of the volunteers to be suspended. All volunteers have been subject to Access Nl Checks. Bed occupancy has been at capacity for most of the year.
MORNING STAR HOUSE MANAGEMENT COMMITTEE REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Prlnclpal Policies to Achleve Objectlves Morning Star Management Committee still recognises that to achieve our objectives, we must work in partnership with a range of organisations and individuals and must develop innovative and effective policies and procedures to assist those who end up on the street and to prevent homelessness to those that are vulnerable to homelessness. Work continued this year on creating Policies and procedures and formalising these within tha Morning Star Hostel. These are shared with staff once introduced and work is ongoing. FINANCIAL REVIEW Morning Star House receives funds from the Northem Ireland Housing Executlve for support of its guests and for maintenance and support of the building. Funds also are received from a charge to guests and from Charitable donations from time to time. Income received during the year from Supportlng people, Housing benefit, charges, charitable Donations and Investment income amounted to £848,390. Expenditure during the year was £691,811 resulting in a Net surplus of £156,579 in the year, reflectlng net income in restricted funds of £135,428 and net income in unrestricted funds of£21,151. GOING CONCERN The Charity is dependent on funding form the NIHE which is also the primary source of client ref8rrals. Wthout this funding the charity would not continue to function. Thankfully the Trustees are in regular contact with the NIHE to ensure the organisation meets the funding conditions set by the NIHE and a good relationship has been established. ISSUES THORUGHOUT THE YEAR Manager left mid-January 2023 Interim Manager appointed from 1st February until 10th April. New manager took up post 7th April 2023 Chairman took ill at end of January 2023 and Interim Chaimian appointed on month-to-month basis. An additional Senior Support working was introduced into Hostel to allow for a Senior lo be available for each shift. Meetlng the Publlc Beneflt Requlrament The principal activity of the charity is to cary on for the benefit of the community the provision of accommodation for men 18 years and over who are homeless upon terms appropriate to their needs. The Hostel shall provide accommodation for homeless men who suffer oth8r disadvantages, inter alia, addiction to alcohol, drugs, gambling that renders them unable to secure other accommodation. The problem with homelessness continues to grow along with it, there 15 growth in areas such as addiction and mental health difficulties. The provision of this service helps address this issue and benefits our guests and society as a whole. The CCNI has issued comprehensive guidelines on Annual Reporting requirements and the Management Committee confirms that they are aware of these and have had due regard of the guidance in all our deliberations.
MORNING STAR HOUSE MANAGEMENT COMMITTEE REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 statement of Management Cornrnittèe responslbillties The Management Committee are responsible for preparing the Management Committee Report and the financial statements in accordance with applicable law and regLblation. Company law r8quires the Management Committee to prepare financial statements for each financial year. Under that law the management committee have prepared the finanual statements in accordan with United lQngdom accounting standards, comprising FRS 102'The Financial reporting standard applicable In the UK and Republic of Ireland" and applicable law (United Kingdom Generally Acc8Pted Accounting Practice). Under company law the management committee must not approve the financial Statements unless they are satisfied that they give a true and fair view of the state of the affairs of the incoming resources and application of resources, including their income and expenditur8, for that period. In preparlng these financial Statements, the Management Committee are required lo: Select suitable accounting policies and then apply them consistently Observe the method6 and principles In the statement of recommended practice.. Accounting and Reporting Charities12015) Make Ihe judgements and estimates that are reasonable and prudent., and Prepare the financial slatements on the going concern basis unless it is inappropriate to presume that they will continue in business The Managemenl Committèe are responsible for keeplng adequate accounting records that are sufficient to show and explain the transactions and disclose with reasonable accuracy at any time th6 financial position of the Hostel 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 hostel and hence forth tsking reasonable steps for the prevention and detection5 of fraud and other irregularities. Dlsclosure of Inforniatlon to Auditor8 To the knowledge and belief of the Directors, there is no relevant information that the company's auditors are not aware of, and the directors have taken al the steps necessary to ensure the directors are aware of any relevant infomiation and lo establish that the company's auditors are aware of the infomiation. This report h8s been prepared in accordan with the Statement of Recommended Practlce ('Accounting and Reporting Charities,) and the special provisions applicable to companies subject to the small company's regime within Part 15 of the Companies Act 2008. The Management Committ88 r8port was approved by the Board of the Management Committee. R Culbert Rory Culbert Ichalrpersonl Tstee Dated: 30101124
MORNING STAR HOUSE INDEPENDENT AUDITOR'S REPORT TO THE MANAGEMENT COMMITTEE OF MORNING STAR HOUSE Opinion We have audited the financial statements of Morning Star House (the 'charty') for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framewcfk that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Stand8rd applicable in the UK 8nd Republic of Iraland (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, for the year then ended- have been properly prepared in accordance with United Klngdom Generally Accepted Accounting Practice; end have been prepared in accordance with the raqulrements of the Charities Act (Nl) 2008. Basls for oplnlon 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 audil ol the financial st8tements 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 stalements 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 eviden we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relatlng to golng concern In auditing the financial statements, we have concluded that the Management Committee 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 charty's ability to continue as a going concern for a period of at least e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Management Committee with respect to going c(CeM are described in the relevant sections of this report. Other Inforniatlon The other information comprlses the information included In the Directors, Report, other than the financial ststements 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 expllcitly state(i 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 informatlon and, in doing so, consider whether the other information is materia51y 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 misststements, we are required to determine whether there is a mat8rial misstatement in the financial statements or a material misstatement of the other infomiation. 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.
MORNING STAR HOUSE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MANAGEMENT COMMIThEE OF MORNING STAR HOUSE Matters on which we are requlred to report by exception We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulats'ons 2008 require us to report to you rf, in our opinion= adequate accounting records have not been kept or retums adequate for our audit have not been r1Ved from branches not visited by us- or the financial statements are not in agreement with the accounting records and retums,. or the financial statements are not in agreement with the accounting records and retums,. or we have not received all the information and explanations we require for our audit. Responslbllltles of Management Commlttee As explained more fully In the statement of Management Committee responsibilities. the Management Committe8 are responslble for the preparation of the financial statements and for being satisfied that they give a true and falr view, and for such internal control as the Management Committee determine is neSSary to enable the preparats'on of financial statements that are free from material misstatem8nt, whether due to fraud or eor. In preparlng the financial statements, the Management Committee are responsible for assessing the charity's abllity to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concem basis of accounting unless the Management Committee either intend to cease operations, or have no realistic alternative but to do so. Audltorfs responslbllltles for the audlt of the flnanclal 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 auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audrt 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 8conomic decisions of users tsken on the basis of these financial statements. A further description of our responsibilities is available on the Financial Reporting Council's website at= https-11 www.frc.org.ukjauditorsresponsibilities. This description forms part of our auditols report.
MORNING STAR HOUSE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MANAGEMENT COMMirrEE OF MORNING STAR HOUSE 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 competen, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. we identified the laws and gUlationS applicable to the company through discussions with directors andlor senior management. and from our commercial knowledge and experience of the sector,. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including Companies Act 2006, taxation legislation, data protection, anti-bribery, employment. environmental and health and safety legislation 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 within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the suscaptlblllty of the company's financlal statements to material mlsstatement, including obtalnlng an underslanding of how fraud might occur, by.. making enquiries of management as to where they consldered there was susceptlbllty to fraud, thelr knowledge of actual, suspected and alleged fraud., and considering the intemal 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= perfomied analytical procedures to identify any unusual or unexpected relationships., tested journal entries to identify unusual transactions., assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 2 were indicative of potential bias; and investigated the rats'onale behind significant or unusual transactions., 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 supporting documentation., reading the minutes of meetings of those charged with governance; enquiring of management as to actual and potential litigation and claims. and reviewing correspondence with HMRC and the company's legal advisors; There are inherent Ilmitations in our audit procedures described above. The more removed that laws end 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. Your attention is drawn to the fact that the charty has prepared financial statements in accordance with "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in th8 UK and Republic of Ir8land (FRS 102)" {as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn. This has been done in order for the finanaal statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.
MORNING STAR HOUSE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MANAGEMENT COMMITTEE OF MORNING STAR HOUSE This report Is made solely to the Gharity's tmstees, as a body. in accordanea with part 4 of the CharitS8s (Accounts and Reports) Regulations 2008. Our audlt work has been undertaken so that we might state to the charity's trustees those matters we ar8 required to stste to them in an audllor's report and for no oth8r purpose. To the fullest extent pemltted by law, we do not accept or assume responsibility to anyonè other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Angola Cralgan {S6nior Statutory Audhor} for and on behalf of Harblnson Mulholland Chartered Accountants Statutory Audltor Centrepoint 24 Ormeau Avenue Belfast Co. Antrim Northem Ireland BT2 8HS Harblnson Mulholland Is eligible for appointment as audltor of the charlty by virtue of Its eligibility for appointment as audltor of a company under of sectlon 1212 of the Companle5 Act 2006.
MORNING STAR HOUSE STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023 Unrestrlcted Restricted funds funds 2023 2023 Total Unrestrlcted Restrlcted fund8 funds 2022 2022 Total 2023 2022 Notes Donats'ons and legacies Charitable activits'es Other income 18,316 268,528 1,379 18,316 828,695 1,379 17,804 174,246 1,414 17,804 738,212 1,414 560.167 563,966 Total Incoma 288,223 560,167 848,390 193,464 563,966 757.430 Charitsble 8Ctlvities 267,072 424,739 691,811 167,413 420,607 588.020 Net Incoming resources before tran8fer8 21,151 135,428 156,579 26,051 143,359 169,410 Net movement in funds 21,151 135,428 156,579 26,051 143,359 169,410 Fund balances at 1 April 2022 157,990 363,040 521,030 131,939 219,881 351,620 Fund balances at 31 March 2023 179,141 498,468 677,609 157,990 383,040 521,030 The statement of financial activities includes all gains and losses recognlsed in the year. All Income and expenditure derive from continulng activities. 10-
MORNING STAR HOUSE BALANCE SHEET AS AT31 MARCH 2023 2023 2022 Flxod assets Tangible asset5 Current assets D8btors Cash at bank and in hand 11 1,207 12 193,971 992,520 134,618 815.247 1,186,491 949,865 Creditor8: amounts falling due within one yèar 13 (508,8821 (430,042) Net current asséts 677,609 519,823 Totsl *ets less current liabllltl•• 677,609 621,030 Incoffle funds Restricted funds Unrestricted funds 14 498,468 179,141 363.040 157.990 677,609 521,030 The financial statements were approved by the Management Committee on . R Culbert Rory Culbert (Chairperson) Tru•t•• The notes on page$ 13 to 22 form part of Ihese finan81 staternentS. 11
MORNING STAR HOUSE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023 2023 2022 Notes Cash flows from operatlng actlvltles Cash generated from operations 17 177,259 74,065 Net cash used In Investlng actlvltles Net cash usod In flnanclng actlvltles Net Increase In ¢ash and cash equlvalents 177,259 74,065 Cash and cash equlvalents at beginning of year 815,247 741,182 Cash and cash equlvalents at end of year 992,520 815,247 12-
MORNING STAR HOUSE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Accountlng pollcles Charlty Infomiatlon Morning Star House is a registered Charity in Northern Ireland. The registered office is Moming Star House, 2-12 Divis Street, Belfast, BT12 4AL. 1.1 Accounting conventlon The financial statements have been prepared in accordance with the Charities Act (Northern Ireland) 2008 and "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021" (as amended for accounting periods commencing from 1 January 20161. The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is tha functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the hlstorlcal cost convention, modlfied to include th8 revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below. 1.2 Golng concern The Charity Commission for Northern Ireland opened a Statutory Inquiry into Morning Star House on 21 June 2018, relating to concerns regarding the governance and administration of the charity, with a focus on safeguarding. The management committee engaged legal advisors to assist them with the inquiry. The management committee have implemented the recommendations from the statuary enquiry to date and continue to have open and constructive engagement with CCNI in the hope of bringing the enquiry to a close. The Management Committee are aware of the non-financial consequences of the inquiry by the Charlty Commission for Northern Ireland and the impact on funding that this may cause. The Directors understand that the circumstances represent a risk to the going concern however they have concluded that they are satisfied that the charity can continue in operational existence for at least 12 months from the date of signing the accounts and have therefore prepared the accounts on a going concem basis. 1.3 Charltable funds Unrestricted funds are available for use at the discretion of the Management Committee in ftjrtherance of their charitable objectives. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. 1.4 Income All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. For donations to be COgnised the charity will have been notifi8d of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fuifilment of those conditions 15 Wlthin the control of the charity and it is probable that they will be fulfilled. 13-
MORNING STAR HOUSE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Accounting policies (Contlnued) Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charty. For example the amount the charity would be willing to pay in the open market for such facilities and services. A COespOndIng amount is recognised in expenditure. No amount is induded in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Management Committee's Annual Report. Where practicable, gifts in klnd donated for distribution to the beneficiaries of the charlty are included In stock and donations in the financial statements upon reIPt. If it is impradicable to assess the fair value at receipt or if the costs to undertake such a valuation OUe1gh any benefits, then the fair value is recognised as a component of donations when it Is distributed and an equivalent amount recognised as charitable expenditure. Gifts in kind donated for resale are included at falr value, being the expected proceeds from sale less the expected costs of sale. Where estimating the fair value is practicable upon receipt it is recognised in stock and 'lncome from other trading activities,. Upon sale, the value of the stock is charged against 'lncome from other trading activities, and the proceeds are recognised as 'lncome from other trading activities.. Where it is impracticable to fair value the items due to the voluma of low value items they are not recognised wi the financial statements until they are sold. This income is recognised within 'lncome from other tradirYJ activities,. Fixed asset gifts in kind are recognised when receivable and are included at fair value. They are not deferred over the life of the asset. For legacies. entitlement is the earlier of the charity being notified of an impending distributi or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity however tt is not possibl8 to measure the amount expected to be dlstributed. On these occasions, the legacy is treated as a contingent asset and disclosed. Income from trading actlvities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to rdlse funds and is r8cognised when entitlement has occurred. The charity receives fvnds from the Northem Ireland Houslng Executive in respéct of the service agre8ment with Supporting People. This income and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred. Investment income is eamed through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the Investment incom8 is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity's right to receive payment is established. Other income includes the conversion of endowment funds into income which arises when capital funds are released to an income fund from expendable endowments or when a charity has authority to adopt a total retum approach to its permanent endowment fund. It also includes other income such as gains on disposals of tangible fixed assets, Due to the nature of donated income, such income is not capable of control by the Charity before receipt by the Charty. However. financial controls are in place to ensure accurate recording and safeguarding of all income received by the Charity 14-
MORNING STAR HOUSE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Accounting policles {Contlnued) 1.5 Expendltur8 All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probabl8 that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings.. Expenditure on charitable activities includes all those costs related to the provision of the services of the charity to the residents, including staff costs, the costs of running the premises and the costs of providing food to residents and the welfare and medical needs of the residents; and Other expenditure represents those items not falling into the categories above, Irre¢overabSe VAT is charged as an expense against the activity for which expenditure arose. Support costs allocatlon Support costs are those that asslst the work of the charity but do not directly represent charitable activities and include office costs, governance costs and administrative payroll costs. They are incurred directly In support of expenditure on the objects of the charity. Where support cost5 cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activrties on a basis consistent with use of the resources. Premises overheads have been allocated on a basis consistent with the use of the premises for charitable activities and other overheads have been allocat8d on a similar basis.. Fund-raising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. 1.6 Tanglble fixed assets Tangible fixed assets are Initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation Is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases.. Plant and equipment Fixtures and fittings Computers Straight line over 4 years Straight line over 4 years Straight line over 3 years The gain or loss arising on the disposal of an asset is determined as the difference beeen the sale proedS and the carying value of the asset, and is recognised in the statement of financial activities. 1.7 Impalrment of fixed assets At each reporting end date, the charity reviews the carrying amounts of its tangible assets to detemiine whether there is any indication that those assets have suffered an impaimienl loss. If any such indcation exists. the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 1.8 Cash and cash equlvalents Cash and cash equivalents include cash in hand, deposits held at ca51 with banks. other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 15-
MORNING STAR HOUSE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Accounting policies (Continued) 1.9 Flnancial Instruments The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial Instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liabilty simultaneously. Ba51c flnancial assets Basic financial assets, which indude debtors and cash and bank balances, are Inltlally measured * transaction price including transath'on costs and are Subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Basic financlal liabllities Basic financial liabilities, induding creditors and bank loans are initially recognised at transadion pri unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amorti5ed cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measur8d at amortised cost using the effective interest method. Derecognltlon of financial liabllltles Financial liabilities are derecognised when the charity's contractual obligations explre or are discharged or cancelled. 1.10 Employee beneflts The cost of any unused hollday entitlement is recognised In the period in which the employee's services are re1ved. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. 1.11 Retirement beneflts Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. 16-
MORNING STAR HOUSE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Crftlcal accounting estlmates and judgements In the application of the charity's accounting policies, the Management Committee are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects cnly that period, or in the period of the revision and future periods where the revision affects both current and future periods. Donatlon$ and l•gacles Unrestrlcted Unre8trlcted funds funds 2023 2022 Donations and gift5 18,316 17,804 Donatlons and glfts Other 18,316 17,804 18.316 17,804 Charltable activltles Charltable Charltable Income Income Headlng 1 Heading 1 2023 2022 Performance grants - Supporting People Rental income from residents Service charge income from residents 560,167 216,513 52,015 563,966 134,538 39,708 828,695 738,212 Analysls by fund Unrestrided funds Restricted funds 268,528 560,167 174,248 563,966 828,695 738,212 17-
MORNING STAR HOUSE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Other income Unrestricted Unrestrlcted funds funds 2023 2022 Canteen takings 1,379 1,414 Charltablo actlvltles Charltablo Charltsble actlvltles actlvltles 2023 2022 Staff costs Depreciation and impaimient Heat, light and power Security costs Repairs and maintenance Insurance Food expenses Guest welfare & medical expenses Travel and Accommodation Offic8 and General Expenses 375,732 1,193 75,650 397,006 1,392 48,049 947 39,738 35,359 16,601 6,482 111,872 43,824 20,242 10,000 266 6,172 644,951 545,574 Share of support costs (see note 7) Share of govemance costs (see note 7) 26,916 19,944 14,176 28,270 691,811 588,020 Analy31s by fund Unrestricted funds Restricted funds 267,072 424,739 167,413 420,607 691,811 588,020 18-
MORNING STAR HOUSE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Support costs Support Governance costs costs 2023 Support Governance costs costs 2022 Recruitment costs Telephone Bank charges Accountancy Prlnting and ststionary 11,745 1,027 834 9,288 11,745 1,027 834 9,288 1,016 693 8,640 1,016 693 8,640 4,022 4,022 3,827 3,827 Legal and professional 19,944 19,944 28,270 28,270 26,916 19,944 46.860 14,176 28,270 42,446 Analysed between Charitsble activities 26,916 19,944 46,860 14,176 28,270 42,446 Governance costs includes payments to the auditors of £4,800 (2022- £4,800) for audit fee8. Management Commlttee None of the Management Committee (or any persons connected with them) received any remuneration or benefits from the charity during the year. Employees The average monthly number of employees during the year was: 2023 Number 2022 Number 22 Employment costs 2023 2022 V¥ages and salaries Social security costs Other pension costs 344,755 25,388 5,589 366,744 24,538 5,724 375,732 397,006 19-
MORNING STAR HOUSE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Employees Icontlnued) Management Committee and key management personnel remuneration and expenses The Management Committee neilher received nor waived any remuneration during the year (2022: £Nil). The total amount of employee benefits received by key management personnel is £Nil12022 - £Nil). The charity considers its key management personnel to compromise the Managernent Committee and the manager. None of the Management Commlttee12022- None) are accruing pension arrangements. Expenses amountlng to £Nil {2022'. £Nil) were relmbursed to the Management Committee during the year. There were no employees whose annual remuneration was more than £60,000. 10 Taxatlon The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. 11 Tanglble flxed assets Plant and Flxturos and ulpmènt flttlngs Computern Total Cost At 1 April 2022 73,340 23,599 28,286 125,224 At 31 March 2023 73,340 23,599 28,286 125,224 Depreclatlon and impalrment At 1 April 2022 Depreciation charged in the year 73,302 38 23,599 27,116 1,169 124,017 1,207 At 31 March 2023 73,340 23,599 28,285 125,224 Carrylng amount At 31 March 2023 At 31 March 2022 38 1,169 1,207 12 Debtors 2023 2022 Amounts falllng due wlthln one year: Trade debtors Other debtors Prepayments and accrued income 37,040 147,851 9,080 81,914 52,704 193,971 134,618 -20-
MORNING STAR HOUSE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 13 Credltors: amounts falllng due within one year 2023 2022 Other taxation and social security Trade creditors Other creditors Accruals and deferred income 11,444 72,392 419,286 5,760 9,475 3,197 411.610 5,760 508,882 430,042 14 Rostrlcted funds The income funds of the charity include restricted funds comprising the following unexpended balanS of donations and grants held on trust for specrfic purposes- Movèment In funds Incomlng Resources resourGg8 axponded Balance at 1 Aprll 2022 Tr•nBfern Balance at 31 March 2023 Supporting People NIHE Equipment grant 349.386 13,665 560,167 (424.739) 484,814 13,665 363,040 560,167 (424,739) 498,468 Restrlcted funds The Supporting People funding is to provide housing related support to vulnerable people to improve thelr quality of life and attain independence. There are provisions for the repayment to Supporting People of excess funding provided by them. The NIHE Equipment grant was to purchase technology to dellver efficient and senilce improvements. 16 Analysls of net assets between funds Unrestricted Restrlcted funds funds 2023 2023 Total Unrestrlcted Restricted funds funds 2022 2022 Total 2023 2022 Fund balances at 31 March 2023 are represented by: Tangible assets Current assetsl(liabilities) 1,207 156,783 1,207 519,823 179,141 498,468 677,809 363,040 179,141 498,468 877,609 157,990 363,040 521,030 21
MORNING STAR HOUSE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 16 Related party transactlons The following related paty transactions OCcued in the year: The charity occupies pr8mises owned by the Legion of Mary and has been charged £Nil rent for the year 12022 - £Nil). At the balan sheet date, an amount of £411,499 (2022 - £411,499) was due to the Legion of Mary for rent; and The Legion of Mary advanc8d £Nil (2022 - £Nil) to the charity in the year and is owed £Nil (2022 - £Nil) by the Morning Star House. The amount due is interest free, unsecured and repayable upon demand. Over the total amount due to The Legion of Mary is £411,499 (2022- £411,499). 17 Cash generated from operatlons 2023 2022 Surplus for the year 156,579 169,410 Adjustments for.. Depreciation and impaimient of tangible fixed assets 1,207 1,392 Movements In worklng capital: (Increase) in debtors Increasel(decrease) in creditors (59,367) 78,840 {20,384) 141,9361 Cash generatsd from operatlons 177,259 108,482