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 aCkno￿edgeS 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
T￿stee
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 r￿1Ved
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 ne￿SSary to enable the preparats'on
of financial statements that are free from material misstatem8nt, whether due to fraud or e￿or.
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 finan￿81 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 CO￿espOndIng 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 re￿IPt. If it is impradicable to assess the fair value at
receipt or if the costs to undertake such a valuation OU￿e1gh 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 be￿een the sale
pro￿edS 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
r￿e1ved.
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 balan￿S 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 OCcu￿ed 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