MORNING STAR HOUSE STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITUREACCOUNT FOR THE YEAR ENDED 31 MARCH 2025 Unrestricted Restricted funds funds 2025 2025 Total Unrestricted Restricted funds funds 2024 2024 Total 2025 2024 Notes Income and endowments from: Donations and legacies Charitable activities Investments Other income 94,504 304.214 11,578 (17.920) 599.056 76.584 903.270 11.578 5,806 261,963 28,229 426 5,806 819.881 28,229 426 557,918 Total income 410,296 581.136 991.432 296,424 557,918 854,342 Expenditure on: Charitable activities 107,522 606,934 714,456 341,423 1,194,717 1,536,140 Total expenditu 107,522 606.934 714,456 341,423 1,194,717 1.536,140 Net incomel(expenditure) 302,774 (25,798) 276,976 {44,999) 1636,799) {681,798} Transfers between funds (4,266) 4,266 {310,962) 310,962 Net movement in funds 298.508 (21.532) 276.976 {355,961) 1325,837) {681,798} Reconciliation of funds: Fund balances at 1 April 2024 (176.820) 172.631 (4.189) 179.141 498.468 677.609 Fund balances at 31 March 2025 121,688 151,099 272,787 (176,820) 172,631 (4,189) The statement of financial activities indudes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. 10-
MORNING STAR HOUSE BALANCE SHEET ASA T31 MARCH 2025 2025 2024 Notes Fixed assets Tangible assets Current assets Debtors Cash at bank and in hand 13 15,836 23,641 14 50,404 260,285 37,077 950,314 310.689 987,391 Creditors: amounts falling due within one year 15 (53,738) {1,015,221) Net current assetsl(liabilities) 256,951 (27,8301 Total assets less current liabilities 272,787 (4,1891 Income funds Restricted funds Unrestricted funds 17 151,099 121,688 172.631 (176,8201 272,787 (4,1891 The financial statements were approved by Ihe Management Committee on 0510212026. Robert Dowey Trustee The notes on pages 13 to 23 form part of these financial statements. 11
MORNING STAR HOUSE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 Cash flov from operating activities Cash absorbed by operations 21 (701,5321 (46,7941 Investing activilies Purchase oftangible fixed assets Investment income received (75) 11.578 (23,6411 28,229 Net cash generated from investing activities 11,503 4,588 Net cash generated from financing activities Net decrease in cash and cash equivalents (690,029) (42.2061 Cash and cash equivalents at beginning of year 950,314 992,520 Cash and cash equlvalents at end of year 260.285 950.314 12-
MORNING STAR HOUSE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies Charity information Morning Star House is a registered Charity in Northem Ireland. The registered office is Morning Star House. 2-12 Divis Street, Belfast, BT12 4AL. 1.1 Accounting convention 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 102}- (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 steding, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal aGGounting policies adopted are set out below. 1.2 Going concern At the time of approving the financial statements. the Management Committee have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Management Committee continue to adopt the going concem basis of accounting in preparing the financial statements. 1.3 Charitable funds Unrestricted funds are available for use at the discretion of the Management Committee in fvrtherance 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 entided 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 reived. For donalions to be recognised the charity will have been notified 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 oblained then income is deferred until those conditions are fully mel or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled. 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 charity. For example the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure. No amount is included 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. 13-
MORNING STAR HOUSE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies (Continued) Where practicable, gifts in kind donated for distribution to the beneficiaries of the charity are included in stock and donations in the financial statements upon receipt. If it is impracticable to assess the fair value at receipt or if the costs to undertake such a valuation outweigh 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 fair 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 volume of low value items they are not recognised in the financial statements until they are sold. This income is recognised within 'lncome from other trading activities,. Fixed asset gifts in kind are recognised vthen CeIVable 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 distribulion or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed. Income from trading activities includes income eamed from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and seNices in order to raise funds and is recognised when entitlement has Occued. The charity receives funds from the Northem Ireland Housing Executive in respect of the seNice agreement 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 cosls incurred within a scheme with reasonable accuracy the investment income 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 return approach to its pennanent 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 Charity. 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 2025 Accountlng pollcles (Contlnued) 1.5 Expenditure All expenditure is accounted for on an accnJals 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 probable that the settlement will be required and the amount of the obligation can be measured reliably. It is Gategorised under the following headings.. Expenditure on Gharitable activilies indudes 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. Irrecoverable VAT is charged as an expense against the activity for which expenditure arose. Support costs allocation Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, govemance costs and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities 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 allocated on a similar basis.. Fund-raising costs are those incurred in seeking voluntary contributions and do nol include the costs of disseminating information in support of the charitable acts'vities. 1.6 Tangible fixed assets Tangible fixed assets are initially measured at (x)st 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 between the sale proceeds and the carrying value of the asset, and is recognised in the ststement of financial activities. 1.7 Impairnient of fixed assets At each reporting end date, the charity reviews the carying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impaiment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to detemiine the extent of the impairment loss lif any). 1.8 Cash and cash equlvalents Cash and cash equivalents include cash in hand. deposits held at call 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 2025 Accountlng pollcles (Contlnued) 1.9 Financial 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 balan 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 liability simultaneously. Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction 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 financial liabilities Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price 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 amortised St. using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been aGquired in the ordinary Gourse 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 measured at amortised cost using the effective interest method. Derecognition of financial liabilities Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or cancelled. 1.10 Employee benefits The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Tenmination 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 benefits Payments to defined contribLrtion 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 2025 Critical accounting estimates and judgements In the application of the charity's accounting policies, the Management Committee are required to make judgements, estimates and assumptions about the carying 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 ests'mates. The estimates and underfying 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 only that period, or in the period of the revision and future peri(Kls where the revision affects both current and future periods. Income from donations and legacies Unrestricted Restricted funds funds 2025 2025 Totsl Unrestricted Restricted funds funds 2024 2024 Total 2025 2024 Donations and gifts 94.504 (17,920) 76,584 5.806 5,806 Donations and gifts Other (17.920) 76,584 5,806 5,806 (17,920) 76,584 5,806 5,806 Income from charitable activities Unrestricted Restrictsd funds funds 2025 2025 Total Unrestricted Restricted funds funds 2024 2024 Total 2025 2024 Charitable activities Performance grants- Supporting People Rental incomefrom residents Service charge income from residents 599.056 599.056 557,918 557,918 244,938 244,938 193,270 193,270 59,276 59,276 68,693 68,693 304,214 599,056 903,270 261,963 557,918 819,881 17-
MORNING STAR HOUSE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Investments Unrestricted funds Totsl 2025 2024 Interest receivable 11,578 28,229 Other income Unrestricted Unrestricted funds funds 2025 2024 Canteen takings 426 18-
MORNING STAR HOUSE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Expenditure on charitable activities Charitable activities 2025 Charitable activities 2024 Direct costs staff (x)sts Depreciation and impairment Rent Heat, lights and tx)wer Repairs and maintenan Insurance Food expenses Guest welfare & medical expenses Travel and accommodation Office and general expenses Retum of funds 735,163 7,880 (411,499) 92,797 86,016 61,963 40,362 9,587 619,585 98,466 90.922 58.858 32.174 9,902 294 27,085 543.303 22,500 644.769 1.480,589 Share of support and governance costs {see note 8) Support Governan 33.366 36,321 26.361 29,190 714,456 1,536,140 Analysis by fund Unrestricted funds Restricted funds 107,522 606,934 341,423 1,194,717 714.456 1.536,140 Support costs allocated to actlvitles 2025 2024 Recruitment costs Telephone Bank charges Accountancy Training costs Printing and stationary Governance costs 4,080 1,557 1,197 10,454 2,345 13,733 36,321 3,090 1,291 1,153 10,656 2,768 7,403 29,190 69,687 55,551 Analysed between: Charitable activities 69.687 55,551 19-
MORNING STAR HOUSE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Net movement in funds 2025 2024 The net movement in funds is stated after chargingl(crediting): Fees payable for the audit of the charity's financial statements Depreciation of owned tangible fixed assets 3,840 7,880 3,840 10 Management Committee None of the Management Committee (or any persons connected with them) received any remuneration or benefits from the charity during the year. 11 Employees The average monthly number of employees during the year was: 2025 Number 2024 Number 22 23 Employment costs 2025 2024 Wages and salaries Social security Costs Other pension costs 679,635 45,812 9,716 570,268 40,428 8,889 735,163 619,585 Management Committee and key management personnel remuneration and expenses The Management Committee neither received norwaived any remuneration during the year (2024.. £Nill. The total amount of employee benefits received by key management personnel is £Nil 12024= £Nil}- The charity considers its key management personnel to compromise the Management Committee. None of the Management Committee (2024.. None) are accnjing pension arrangements. Expenses amounting to £Nil {2024: £Nil) were reimbursed to the Management Committee during the year. There were no employees whose annual remuneration was more than £60,000. 12 Taxation 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. -20-
MORNING STAR HOUSE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 13 Tangible fixed assels Plant and Fixtures and equipment fitting5 Computers Total Cost At 1 April 2024 Additions 73.340 23,599 75 51.926 148,865 75 At 31 March 2025 73,340 23,674 51,926 148,940 Deprecialion and impairnient At 1 April 2024 Depreciation charged in the year 73,340 23,599 28,285 7.880 125,224 7,880 At 31 March 2025 73,340 23,599 36,165 133,104 Carrying amount At 31 March 2025 75 15.761 15,836 At 31 March 2024 23,641 23,641 14 Debtors 2025 2024 Amounts falllng due wlthln one year: Other debtors Prepayments and accrued income 41,404 9.000 28,077 9,000 50,404 37,077 15 Creditors: amounts falling due within one year 2025 2024 Other taxation and social security Trade creditors Other creditors Accruals and deferred income 17,488 29,032 3,359 3,859 16,345 35,592 414,114 549,170 53,738 1,015,221 16 Retirement benefit sGhemes 2025 2024 Deflned contrlbutlon schemes Charge to profit or loss in respect of defined contribution schemes 9.716 8,889 21
MORNING STAR HOUSE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 16 Retlrement beneflt schemes (Contlnued) The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund. 17 Restricted funds The restricted funds of Ihe charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used. Movement in funds Incoming Resourcès expended Balancè at 1 April 2024 Trdnsfers Balance at 31 March 2025 Supporting People Supporting People Uplift IT NIHE Equipment grant 135,428 23.549 13,654 599,056 (599,056) 17,878) 135,428 15,671 {17,920) 4,266 172,631 581,136 (606,934) 4,266 151,099 Restricted funds The Supporting People funding is to provide housing related support lo vulnerable people to improve their quality of life and attain independence. There are provisions for the repayment to Supporting People of excess funding provided by them. 18 Unrestricted funds The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes. At 1 April 2024 Incoming resources Resources expended Transfers At 31 March 2025 General funds (176.820) 410.296 (107,522) 14,2661 121.688 Previous year: At 1 April 2023 Incoming resources Resources expended Transfers At 31 March 2024 General funds 179.141 296.424 (341,423) (310,9621 (176.8201 -22-
MORNING STAR HOUSE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 19 Analysis of net assets between fvnds Unrestricted funds 2025 Restricted funds 2025 Total 2025 At 31 March 2025: Tangible assets Current assetsl(liabilities) 167 121,521 15,669 135,430 15,836 256,951 121,688 151,099 272,787 Unrestricled funds 2024 Restricted funds 2024 Total 2024 At 31 March 2024: Tangible assets Current assetsl(liabilities) 23.641 148,990 23,641 (27,8301 (176,820) (176,820) 172,631 (4,1891 20 Related party transactions The following related paty transactions occurred in the year. The charity occupies premises owned by the Legion of Mary and has been charged £Nil rent for the year (2024.. £Nil}. At the balance sheet date. an amount of £Nil12024: £411.499} was due to the Legion of Mary for rent. The Legion of Mary fomially agreed to waive historical rent arrears. 21 Cash absorbed by operations 2025 2024 Surplusl(deficit) for the year 276.976 {681.798} Adjustments for: Investment income recognised in statement of financial activities Depreciation and impaimient of tangible fixed assets (11,5781 7,880 {28,229} Movements in working capital: (Increase)Idecrease in debtors (Decrease)lincrease in creditors (13,327) (961,4831 156,894 506.339 Cash absorbed by operations (701,5321 (46,794} -23-