Charity Registration No. NIC101039 Company Registration No. N1038979 (Northern Ireland) HMRC Charity No. XR41050 N.1. ALTERNATIVES LTD ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
N.1. ALTERNATIVES LTD LEGAL AND ADMINISTRATIVE INFORMATION Trustees Mr. P Bunting Rev G Mason Mr. G McKay M5. G Mcveigh Mr. J Redpath Mr. B Hunniford Secretary Mr. T Winstone Charity number NIC101039 HMRC Charity Number XR41050 Company number N1038979 Registered office 137 Agnes Street Belfast Co. Antrim Northern Ireland BT13 IGG Auditor HMCI Ltd TIA Hamill Mcllwaine Chartered Accountants Registered Auditors 28-30 Old Mountfield Road Omagh BT79 7BJ Bankers Dan5ke Bank Donegall Square West Belfast Co. Antrim Northern Ireland BTI 6JS
N.1. ALTERNATIVES LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 The trustees present their report and accounts for the year ended 31 March 2024. The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document the Companies Act 2006 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" las amended for accounting periods commencing from 1 January 20161 Objectives and activities The company's objectives and principal activities are to promote a non-violent restorative community response to justice issues in Northern Ireland. N.1. Alternatives Ltd will identify needs, often in partnership with local communities and other voluntary and statutory bodies, relating to safety and conflitt within communities. and will attempt to heal relationships in a restorative way. At the same time, it hopes to raise community awareness on the issues affecting young people and adults who are deemed to be at risk and vulnerable. The main objectives and activities of the company are: To organise within the community to devise non-violent alternattves to issues of community justice. To help and work with young people in order to resolve the problems affecting their lives. To direct young people away from destructive and dangerous practices towards healthy and constructive activities. To enable young people to personally reflect on the potentially damaging consequences of risky and criminal behaviour. To address areas of weakness and failure within the formal criminal justice system. To heal relationships within the community and to promote better relationships between the community and statutory agencies. To work towards a sustainable model of delivery for as much of the company's services as possible. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. Achievements and performance NIA has offices across Northern Ireland North Belfast, Greater Shankill, East Belfast, South Belfast, North Down, Magherafelt (Mid Ulster Alternatives), Portadown (ABC Altemativesl and Carrick/Larne (East Antrim Alternatives). NIA has provided restorative support to over 2,000 victims of crime and anti-social behaviour, involved 3,500 young people in diversionary programmes including schools work,- delivered over 3,000 restorative interventions,. delivered 300 trainings and intervened in over 500 neighbourhood disputes to find a peaceful and non-adversarial resolution. NIA also enhanced its wraparound counselling mechanism to ensure clients were receiving a holistic service including restorative supporL activities, mentoring and therapeutic interventions. This growth was able to happen as a result of funding from the Community Foundation N.1 and the Housing Executive through sustaining tenancies funding. NIA received new funding from the Belfast Trust to help support Tier 3 vulnerable young people due to a lack of social work personnel as well as support to young people with addiction and mental health issues.
N.1. ALTERNATIVES LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 N IA continued delivering on the Communities in Transition Programme through The Executive Office to tackle paramilitarism. NIA delivered projects for or along with support from Community Restorative Justice Ireland, Belfast City Council, NIHE and Big Lottery Fund lothers listed in Note 31. During this financial period, NIA also received funding from the Department of Foreign Affairs for the Young Futures Programme in North Belfast which 15 seNing to act as 'bridge' funding until Peace Plus becomes operational in January 2024 under the Strive Programme. Financial review The charity generated a net increase in fund5 of £48,140. This has resulted in the company's reserve5 increasing from £1,351,040 to £1,399,180. Principal Funding Sources The funding sources for the company are varied and are made up by the Departments for Community (Dfc), The Executive Office and Department of Justice IDOJ), as well as some smaller grants. As a result of increasing constraints on government expenditure, as well as expansion of its activity base, the charity has to seek funding from a much broader group of agencies. The involvement of the charity with a grouping of statutory agencies interested in issues of community justice is proving particularly useful in identifying possible opportunities for a much wider and strategically orientated range of funding for the future. There is a government-approved Protocol in place that promotes better working beeen the charity as a community-based restorative justice scheme and statutory organisations within the formal justice sector. This Protocol is currently under review, and the charity hopes that this process will lead to the social impact of its services being reflected more within funding contracts. Reserves Policy The charity aims to maintain at least three month's operational costs. In recent times the charity undertook some additional projects with the aim of increasing the reseNes to provide a level of reserves to enable the charity to continue its activities should temporary funding gaps arise in the future. Goin9 Concem The company 15 reliant on funding bodies to provide its primary income. Much of this funding is not recurring. The company is dependent on obtaining future funds to allow its programs to continue. Post year end the company has been able to continue to attract funds from its current funders and also additional funds from Peace Plus. Services Nl Alternatives Ltd delivers a wide range of seNices for the public benefit, but all of them are underpinned by the principles of restorative practice. In essence this involves the healing or fixing of the fra9mented individual, family and community relationships that lead to crime, anti-social behaviour and community conflict Services available include the Intensive Youth Support Programme (for individuals), Wrap Around Youth Support Programme (holistic support), Family Support, Victim Support Counselling, Preventative Group Work (for young people 'at risk), mediation seNices {including work on behalf of Northern Ireland Housin9 Executive, housing associations and PSNI) restorative work with adult offenders, employability and good relations training for NEET (Not in education, employment or training) young people, schools outreach work, and detached street engagement. The company can also deliver training in restorative practice, principles and awarene5S to a wide client base. The charity delivers contracts on behalf of the Belfast Health and Social SeNices TrusVBelfast Outcomes Group in terms of Family Support and Family Hub seNices and plays a major role in implementing local community
N.1. ALTERNATIVES LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 safety strategies as part of the Neighbourhood Renewal process. Much of its work is delivered on a collaborative basis, and the agency has partnerships in place with a great many statutory, community and voluntary bodies. It is the lead body in two major partnerships that are funded by Peace IV. Much of the work relied upon the contribution of around 300 volunteers and was delivered in marginalised communities. Plans for Future Periods The company has developed a strategic business plan to facilitste the marketing of some of its services along a social economy model. This will help to generate additional revenue that will enhance sustainability. The government-related Adult Restorative Strategy which became operational in 22/23 a150 means to promote a more strategically-focused model of seNice delivery for restorative practice. New opportunities are being explored to incorporate restorative practice into institutionalised settings, and to allow more ready access to a statutory referral process under the terms of the Protocol that was established to increase co-operation with the state agencies that hold membership of the formal Justice system. NIA has developed a University qualification on restorative practice/justice in partnership with Ulster University and it is anticipated that this new development will help to generate a small income stream. The trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to the major risks. Structure. governance and management Governing Document The or9anisation is a charitable company limited by guarantee, incorporated on 21 st July 2000 and registered as a charity by HMRC on 1 st July 2000. The company was established under a Memorandum of Association and is governed under its Articles of Association. On 14th November 2014 the company was officially registered by the Charity Commission for Northern Ireland with the charity number NIC 101039. The trustee5, who are a150 the director5 for the purpose of company law, and who served during the year Peter Bunting Rev Gary Mason Gary McKay Grainne Mcveigh Jackie Redpath Bobby Hunniford (resigned 2nd December 20241 Recruitment and Appointment of Management Committee The directors of the company are also charty trustees for the purposes of charity law and under the company's Articles are known as members of the Board. Under the requirements of the Memorandum and Articles of Association the members of the Board are elected to serve for a period of one year after which they must be re-elected at the next Annual General Meeting. Trustee Induction and Training Upon their appointment all new trustees are required to undergo training on the governance arrangements for the company, their roles and responsibilities as trustees, the principles of restorative justice, and the operations and Services carried out by the company.
N.1. ALTERNATIVES LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Risk Management The Board has conducted a review of the major risks to which the charity is exposed. A risk register has been established and is updated at least annually. Where appropriate, systems or procedures have been established to mitigate the risks the charity faces. Significant external risks to funding have led to the development of a strategic plan which will allow for the diversification of funding and activities. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. These procedures are periodically reviewed to ensure that they continue to meet the needs of the charity. Organi5ational Structure Nl Alternative5 Ltd has a Board of up to eleven members who meet quarterly and are responsible for the strategic direction and policy of the charity. At present the Board has nine members from a variety of professional backgrounds relevant to the work of the charity. The Secretary a150 sits on the Board but has no voting rights. A scheme of delegation 15 in place and day to day responsibility for the provision of the service5 rest with the Chief Executive, along with the Services, Operations and Finance and Administration Managers. The Chief Executive 15 responsible for ensuring that the charity delivers the services specified and that key performance indicators are met. Related Parties The company acts as an umbrella body for five local-based restorative justice organisations, and these organisations are represented on the Board. Statement of trustees. responsibilities The trustees, who are also the directors of N.1. Alternatives Limited for the purpose of company law, are responsible for preparing the Trustees, Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company Law requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these accounts, the trustees are required to.. selett suitable accounting policies and then appiy them consistently,. observe the methods and principles in the Charities SORP,- make judgements and estimates that are reasonable and prudent,- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts,. and prepare the accounts on the going concern basis unless it 15 inappropriate to presume that the charity will continue in operation. The trustee5 are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act (Northern Ireland) 2008. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detèrtion of fraud and other irregularities.
N.1. ALTERNATIVES LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Statement of disclosure of information to auditors In so far as the Trustees are aware.. There is no relevant audit information of which the charitable companys auditor is unaware., and The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors is aware of that information. Independent Auditors The auditors, HMCI Ltd TIA Hamill Mcllwaine, have indicated their willingness to remain in office and a resolution for their re-election will be proposed at a forthcoming General Meeting. The trustees, report was approved by the Board of Trustees and signed on their behalf. Rev G Mason Trustee Date: 5th December 2024
N.1. ALTERNATIVES LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF N.1. ALTERNATIVES LIMITED Opinion We have audited the financial statements of N.1. Alternatives Limited for the year ended 31 March 2024 which comprise the Balance Sheet as at 31 March 2024,- the statement of financial activities, cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 rhe Financ/a/ Reporting Standard app/ic3b/e in the UK and Republic of /re/and (United Kingdom Generally Accepted Accounting Practice). In our opinion, N.1. Alternatives Limited's financial statements.. give a true and fair view of the stste of the charity'5 affairs as at 31 March 2024 and of its incoming resources and application of resources, and cash flows for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and applicable lawl and-, have been prepared in accordance with the requirements of the Charities Act (Northern Ireland) 2008. Basi5 for opinion WÈ conducted our audit in accordance with International Standards on Auditing (UK) IISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the members 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 uncertaintie5 relating to events or condition5 that, individually or collettively, may cast significant doubt on the charities ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report
N.1. ALTERNATIVES LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF N.1. ALTERNATIVES LIMITED Reporting on other infomiation The other information comprises all the information in the Annual Report other than the financial statements and our auditors. report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent othemise explicitly stated in this report, any form of assurance thereon. In connection with our audit of the financial statements, our responsibility 15 to read the other information and, in doing 50, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities. Based on the responsibilities described above and our work undertaken in the course of the audit ISAS IUKI require us also to report certain opinions and matters as described below. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charity and its environment obtsined in the course of the audiL we have not identified material misstatements in the Report of the Trustees. We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations (Northern Ireland) 2015 require us to report to you if, in our opinion.. the information given in the financial statements is inconsistent in any material respect with the trustees, report,. or adequate accounting records have not been kept, or returns adequate for our audit have not been received by us,. or the financial statements are not in agreement with the accounting records and returns., or we have not received all the information and explanations we require for our audiL
N.1. ALTERNATIVES LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF N.1. ALTERNATIVES LIMITED Responsibilities of the Trustees for the financial statements As explained more fully in the Statement of Trustees. Responsibilities set out on page six, the trustees are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The trustees are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern ba515 of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. Auditors. responsibilities for the audit of the financial statement5 We have been appointed as auditor under paragraph 6 of schedule 6 of the Charities Act (Northern Ireland) 2008 and report in accordance with regulations made under section 66 of that Act. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS {UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularitie5, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We gained an understandin9 of the legal and regulatory framework applicable to the charity and the industry in which it operates, and considered the risk of arts by the charity that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material mi5Statement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. 10
N.1. ALTERNATIVES LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF N.1. ALTERNATIVES LIMITED We focused on laws and regulations which could give rise to a material misststement in the financial statements, including, but not limited to, the accounting and reporting of charities and UK tax legislation. Our tests included agreeing the financial statements disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel where appropriate. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the committee members that represented a risk of material misstatement due to fraud. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. Use of our report This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations (Northern Ireland) 2015. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit worl for this report, or for the opinions we have formed. Mr Rodney Hamill FCA (Senior Statutory Auditor) for and on bèhalf of HMCI Limited T/A Hamill Mcllwaine 28-30 Old Mounffield Road Omagh Co. Tyrone BT79 7BJ Date.. 5th December 2024 HMCI Limited ff/A Hamill Mcllwaine) is eligible to act as an auditor in terms of section 1212 of the Companie5 Act 2006.
N.1. ALTERNATIVES LIMITED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Unrestricted funds Restricted funds Total Total 2024 2023 Notes Income and endowments frorn: Charitable activities Other trading activities Investments 2.480.194 2,480.194 3.254 3.254 2,590,727 431 Total income 2,483.448 2.483,448 2,591,158 Ex enditure on: Charitable artivities 2,435.308 2.435,308 2,169,892 Net (outgoing) resources before transfers 48.140 48.140 421,266 Transfers between funds Net (expenditure) for the year Fund balances brought forward 48.140 48,140 421,266 97,527 1.253,513 1,351.040 929,774 Fund balances carried forward 97,527 1.301.653 1.399.780 1,351,040 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. 12
N.1. ALTERNATIVES LIMITED BALANCE SHEET AS A T 31 MARCH 2024 2024 2023 Notes Fixed assets Tangible assets 10 163,128 178,207 163.128 178,207 Current assets Debtors 460,470 824,496 458,787 807,970 Cash at bank and in hand Creditors: amounts falling due within one year 1.284,966 1,266,757 (48.914) 193,924) Net current assets 1.236.052 1,172,833 Total assets less current liabilities 1.399,180 1,351,040 The funds of the charity Restricted funds 1.301.653 1,253,513 Unrestricted funds 97,527 97,527 Totsl funds 14/15 1.399.180 1,351.040 The notes on pages 15 to 26 are an integral part of these financial statements. The financial statements on pages 12 to 26 were approved by the Trustees 5th December 2024 and were signed on its behalf by. Rev G Mason Trustee Company Registration No. N1038979 13
N.1. ALTERNATIVES LIMITED CASH FLOW STATEMENT ASA T31 MARCH2024 2024 2023 Notes Cash flows from operating activities Net cash (used inl operating activitiès Cash flows from financing activitie5: Interest received Cash flows from investing activities: 8.437 534,312 (Purchase) of tangible fixed assets Disposal of tangible fixed assets Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Total cash and cash equivalents at the end of the reporting period (2,242) 10,331 16.526 147,284) 487,028 807.970 320,942 824.496 8Q7,970 Notes to the cash flow statement Reconciliation of cash flows from operating activities 2024 2023 Net (expenditure) for the reporting period Adjustments for.. Interest received 48.140 421,266 Depreciation Ilncrease)/decrease in debtors Increase/ldecreasel in creditors Net cash used in operating activities 6.990 (1.683) (45.010) 8.437 6,280 60,482 46,284 534,312 Analysis of cash and cash equivalents 2024 2023 Cash at bank and in hand Total cash and cash equivalents at end of the reporting period 824.496 824,496 807,970 807,970 14
N.1. ALTERNATIVES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies Charity information N.1. Alternatives Limited is a private company limited by guarantee incorporated in Northern Ireland and has no share capital. The registered office is 137 Agnes Street, Belfast, Co. Antrim, BT13 1GG, Northern Ireland. 1.1 Accounting convention The accounts have been prepared in accordance with the charity's governing documen¢ the Companies Act 2006 and "Accounting and Reporting by Charities.. Statement of Recommended Prartice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021" las amended for accounting periods commencing from l January 2016). The charity is a Public Benefit Entity as defined by FRS 102. The accounts are prepared in sterling, which is the functional currency of the charity- Monetary amounts in these financial statements are rounded to the nearest £. The accounts have been prepared under the historical cost convention to include certain financial instruments at fair value. The principal accounting policies adopted are set out below. 1.2 Goin9 concern At the time of approving the accounts, the trustee5 have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accountin9 in preparin9 the accounts. 1.3 Charitable funds Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts. 1.4 Incoming resources Income is recognised when the charity is legally entitled to it after any performance conditions have been met the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donation5 are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donation5 received under Gift Aid or deeds of covenant is recognised at the time of the donation. 15
N.1. ALTERNATIVES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (Continued) Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes. 1.5 Resources expended Expenditure is recognised on an accruals basis as a liability incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which is relates.. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. All costs are allocated belAveen the expenditure categories of the SOFA on a basi5 designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis, as set out in the notes to the accounts. 1.6 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at C05t or valuation, net of depreciation and any impairment 1055es. 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.. Freehold land and buildings Fixtures and frttings 2Yo Reducing Balance 250/0 Reducing Balance The gain or loss arising on the disposal of an asset is determined as the difference betsveen the sale proceeds and the carrying value of the asset and is recognised in net income/lexpenditurel for the year. 1.7 Impairment of fixed assets At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss lif any). Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired. 16
N.1. ALTERNATIVES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (Continued) 1.8 Cash and cash equivalents 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. 1.9 Financial instruments The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments. and Settion 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 paty to the contractual provisions of the instrument. Financial asset5 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 transattion 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 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 15 due wtthin one year or less. If not, thèy 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. 17
N.1. ALTERNATIVES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (Continued) 1.10 Employee benefits The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or1055 in the period to which they relate. 1.11 Retirement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. 1.12 Leases Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease. Critical accounting estimate5 and judgements In the application of the charity's accounting policie5, the trustees 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 only that period, or in the period of the revision and future periods where the revision affects both current and future period5. The key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying value of assets and liabilities within the next financial year include- i) Useful economic lives of tangible fixed assets The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. ii) Accruals The directors estimate accruals based on the information available at the time of preparing the financial statements and adjust as more accurate information is made available. 18
N.1. ALTERNATIVES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Charitable activities- Income Unrestricted Restricted funds Totsl Total funds 2024 2023 Grant Income 2.480,194 2.480.194 2,590,727 For the year ended 31 March 2023 Unrestricted funds Restricted funds 2,590,727 2,590,727 2,590,727 2,590,727 Grant Income Analysis for 2024 Include Youth 93.372 93,372 145,050 123,445 49,699 104,289 Northern Ireland Housing Executive Belfast Trust 145.050 123.445 49,699 104.289 45,142 191.667 551.954 393,998 180.821 13,993 43,610 Big Lottery Fund Dept of Justice Dept. of Fareign Affairs (Reconciliation) NIO 45,142 191,667 551,954 393,998 180,821 13,993 43,610 100,000 The Executive Office cR]I CFNl/lnternational Fund Ireland The Ireland Funds Community Foundation NIACROIASPIRE Rural Action/ International Fund Ireland Dept. for Communities Other 100.000 43.167 334,550 65,437 43,167 334,550 65,437 2.480,194 2,480,194 19
N.1. ALTERNATIVES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Othèr trading activities- Income 2024 2023 Charity Donations 3.254 3.254 Investments- Income 2024 2023 Interest receivable 431 Charitable activities expenditure Unrestricted Restricted Total Total Funds Funds 2024 2023 Staff costs (note 8) Programme costs 1.411.701 728.267 1,411.701 728,267 1,326,372 586,380 2,139.968 2.139.968 1,912,752 Support costs (note 71 295,340 295,340 257,140 2.435.308 2.435.308 2,169,892 For the year ended 31 March 2023 Unrestricted funds Restricted funds 2,169,892 2,169,892 2,169,892 2.169,892 20
N.1. ALTERNATIVES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 7 Support costs- expenditure Unrestricted Restricted Total 2024 Total 2023 Depreciation Rent & rates 6,990 6.990 36.117 436 6,280 33,209 5,177 7,329 13,996 19,375 447 36,117 436 Repairs & maintenance Insurance 7,566 17,005 14,314 337 7.566 17.005 14.314 Light & heat Office expenses Bank charges General expenses Subscriptions and licence5 Travel costs 337 19,281 65,221 43,863 19,281 65,221 43.863 2.720 3,605 77.885 50,475 51,097 2,720 1,535 63,056 257,140 Staff training Audit fee 2,720 Accountancy Legal and professional 3,605 77,885 295,340 295.340 21
N.1. ALTERNATIVES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Net Incoming Resources/lncome for the year 2024 2023 Thi5 15 stated after charging: Salaries 1.237.764 114.983 58.954 1.411.701 1,163,531 107,652 55,189 1,326,372 Social security costs Other pensions costs Staff costs Depreciation charged Fees payable to the company's auditor for the audit of accounts 6,990 2,720 6,280 2,720 Employees Number of employees The average monthly number employees during the year was= 2024 2023 Number Number Average 43 42 The number of trustees whose annual remuneration wa5 £60,000 or more were= 2024 2023 Number Number £60,000 £70,000 Key management compensation The compensation paid or payable to key management (the two co-directors) for employee services is shown below 2024 2023 Key management compensation Pension 122,264 7.680 120,315 7,680 22
N.1. ALTERNATIVES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 10 Tangible fixed assets Freehold land and buildings Fixtures and Fittings Total Cost At l April 2023 Additions 181,887 42,546 2,242 224,433 2,242 (10,3311 Disposals At 31 March 2024 {10,331) 171.556 44.788 216.344 Depreciation At 1 April 2023 Charge for the Year 19,515 2,471 26,711 4,519 46,226 6,990 At 31 March 2024 21,986 31.230 53.216 Net book value At 31 March 2024 149.570 13.558 163.128 At 31 March 2023 162,372 15,835 178,207 The propety on Agnes Street was acquired in 2016 and is subject to a covenant which novated along with the propety. The previous owner had entered into a 22 year covenant (commencing in 2009) and a 10 year covenant (commencing in 20101 with the Department of Education whereby the Department of Education would fund the refurbishment costs. Should the propety cease to be used for charitable youth activitie5, or other activities as set out in the covenant, a portion of the refurbishment Costs could be repayable to the Dept. of Education. 23
N.1. ALTERNATIVES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Debtors: amounts falling due within one year. 2024 2023 Trade and other debtors Prepayments and accrued income 453,799 6.671 455,662 3,125 460,470 458,787 12 Creditors". amounts falling due within one year 2024 2023 Other taxation and social security Accruals 6.232 42,682 3,181 90,743 48.914 93,924 13 Taxation The company is a registered charity and, as such, is entitled to certain tax exemptions on income and profits from investments and surpluses on any trading activities carried on in furtherance of the charity's primary objectives, if these profits and surpluses are applied solely for charitable purposes. 24
N.1. ALTERNATIVES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 14 Restrirted fund5 Balance at l April 2023 Incoming resources Resources expended Transfers Balance at 31 March 2024 Restricted fund 1,253,513 2,483.448 {2,435,3081 1,301,653 Unrestricted fund 97,527 97.527 1,351,040 2,483,448 (2,435,308) 1,399,180 15 Analysis of net assets between funds Unrestricted Restricted Funds Funds Total Fund balances at 31 March 2024 are represented by: Tangible/lntangible assets Current assets/lliabilities) 657 162,471 163,128 1.236.052 96,870 1,139,182 97.527 1,301.653 1.399.180 25
N.1. ALTERNATIVES LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 16 Related party transactions The related parties are- Bangor Alternative5 Ltd Greater Shankill Alternatives Ltd North Belfast Alternatives Ltd East Belfast Alternatives Ltd South Belfast Alternatives Ltd The above entities are related as they have one representative of their Board appointed to the Board of Nl Alternatives Ltd. 17 Liability of Members N.1. Alternatives Ltd is a company limited by guarantee. The liability of the members is limited to an amount not exceeding £1. 26