Charity registration number NIC101148 Company registration numbèr N1033998 (Northern Ireland) CHILDREN'S LAW CENTRE (NORTHERN IRELAND) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 CHILDREN'S LAW CENTRE (NORTHERN IRELAND) LEGAL AND ADMINISTRATIVE INFORMATION Trustees MSA Toal Ms A Stewart Mr D Farrell Mr J Finnegan Ms S Stewart Ms T Canavan Mr8DMoss (Appointed 8 December 2022) Secretary Ms P Kelly Charity number NIC101148 Company number N1033998 Principal address Rights House 127-131 Ormeau Road Belfast BT7 1SH Registered office Rights House 127-131 Ormeau Road Belfast BT7 1SH Auditor GMCG BELFAST Chartered Accountants & Statulory Auditor Alfred House 19 Alfred Street Belfast BT2 8EQ Bankers Ulster Bank Limited 3651369 Oimeau Road Belfast BT7 3GP Solicitors Edwards & Co 28 Hill Street Belfast BT12LA CHILDREN'S LAW CENTRE (NORTHERN IRELAND) CONTENTS Page TfUStee5' report Independent auditor's report 6-11 Statemenl of financial activities 12 Balance sheet 13-14 Statement of cash flows 15 Notes lo Ihe financial statements 16-33 CHILDREN'S LAW CENTRE (NORTHERN IRELAND) TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2023 The Irust8es present their annual report and financial ststements for the year ended 31 March 2023. The financial statements have been prepared in accordance with the a¢¢ounting policies set oul in note 1 to the financial statements and comply with the Companies Act 2006 and "AGcounting and Reporting by Charitie5'. Statement of Recommended Practi￿ applicable lo charities preparing their accounts in ac¢ordan¢e with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) (effective 1 January 2019)" Objectives and aCtivi￿e$ The Children's Law Centre (CLC) was eslablished lo help children or young people in need and lo promote the human rights of children and young people. CLC provides infoimation, advice. 2dvocacy, assistance and representation for children and young people, Iheir parenls and carers and othars working with and on behalf of hildren and young people. We raise public awareness of children and young people's rights and provide training lo children, parents and carers and others working with and on behalf of children and young people. CLC give a voice to children by facilitaling and supporting a children 3nd young person's advisory and peer advoca¢y group, youth@clc. In partnership with youth@clc we raise children and young people's rights with duty bearers. The trustees have paid due regard to guidance issued by the Charity Comfflission in deciding what activities the charity should undertake. A¢hTevements and performance The enviionment in which Children's Law Centre operated in 2022-23 has been particularly challenging. As we emerged from Covid, the Centre continued to deal with multiple issues of denial of children's rights as a result of actions taken by duty holders in response to the pandemic. The situation was fLtrther aggravaled by the ongoing impacl of Brexit, the socio-economic crisis resulting in cuts to children's se￿iceS and Ihe absence of a devolved adminisltalion in this juiisdiclion. The Nl Assembly was dissolved in February 2022 and as the year progressed the dissolution would begin lo have serious adverse impacls on decision-making, access to setvices and funding. This was 8xacerbated by the war in Ukraine and the autumn bud9el which resulted in inleresl rises, energy rises and a cost of living crisis. Against this backdrop CLC has experienced an increase in demand for our servi￿$ and the complexity of the case work presenting is unprecedented. In Ihe absence of a willingness or inability on the part of duty bearers lo resolve cases, we increasingly were required to issue proceedings to secure effeclive iemedies for our clients. Unsurprisingly given the scale of need, visitors to the REE Righls Responder chalbol more than dctubled from Ihe previous year wilh 36.617 sessions by 31,226 users getting direct access to legal information. Demand for advice also continued to rise. CHALKY. CLC'S Freephone Advice Line dealt with 2,836 issues, with many, given the growing complexity of queries, requiring more detailed advice andlor represenlalion. Whilst the number of new judicial reviews had decreased from the 'Covid-high' number in the previous bNO years, they are still much higher Ihan the pre-covid norm. We issued Pro￿edIngS in nine new judicial reviews and continued to work on eleven that had commenced during 2021-22. This significant number again reflecis the Complexity of the issues we are dealing with. With a new Policy and Public Affairs Manager in place, drawing on our case work, we have been working to improve legislation, policy and practice for the benefit of all children in Ihe jurisdiction. This included Wofking in partnership with the Committee on the Administration of Juslio, Amnesty Intemational and Include Youth on the use of spit and bÉte hoods on children and strip sear¢hing of children and young people. In response to this work. Ihe Independent Human Rights Advisor to the Nl Policing Board undertook a Human Rights Review of the Strip Searching of Children and Young People in Custody with recommendations published in June 2023. The Policing Board have also committed to undertake a human rights review of policing and children and young people. In preparation for the Nl Assembly elections in May 2022 we developed our 'Close the Gap, publication to highlight our key priorities to improve the lives of children Nl. Despite the ongoing suspension of the Assembly we hosted a number of meetings with MLAS across the polilical spectrum and were encouraged by the positive response. CHILDREN'S LAW CENTRE (NORTHERN IRELAND) TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 We worked with Indude Youlh, NIACRO. VOYPIC, QUB Centre for Children's Rights and Ihe University of Nottingham to highlight the ¢onlinuing failure to implement the recommendations of the Youth Justice Review and in Novernber co-hosted a conference held in QLteen's University on the Minimum Age of Criminal Responsibility. In response, in January the Department of Justice launched a consultation on whelher lo raise Ihe Minimum Age of Criminal Responsibility,. we await the outcome of this consultation. We undertook extensive stakeholder engagement across the voluntary and children's sector and ac2demia lo inform three substantial NGO reports lo the United Nations Committee on Ihe Rights of the Child evidencing how rights and protections for children in Northern Ireland have regressed posl-Brexit, post-covid and as a result of the impacts of the economic crisis and continuing inertia with local govemment. Our Slakeholder Report was endorsed by 50 organisations and individual representstives before submission to the UNCRC in December 2022. We are grateful to Dr Deena Haydon for her work on Compiling these reports. In preparing these reports we worked in partnership wilh yotsth@clc, our panel of young people whc) advise and inform ors issues impacting on children and young people. With the financial support Of th& Paul Hamlyn Foundation, we were able lo bring y¢(tng people from youth@clG, Include Youth and VOYPIC to Geneva to give evidence lo the UN Committee on the Rights of the Child in February 2023 as part of the pre-sessional hearings in advance of the UK Goveinmenl examinalion which was scheduled for May 2023. The oulcome from this Work and in particular the Committee's Conduding Observations. will help shape CLC'S work in the future. We worked with South Tyrone Empowerment Project (STEP) on (wo submissions lo the Council of Europe Framework Convention foi the Proleclion of N8tional Minorities which informed our ongoing engag8menl wilh dltty bearers. human rights institutions and politicians on AsylLrm Seeker Children in Contingency Accommodation. As the year progressed we started to receive direct contacts from families living in conlingency aC￿MmOdatIOn in relation to living conditions and their impacts on children who have a range of disabilities and learning needs, as well as being Irauma-experienced. Our advice and legal teams are now providing legal advice and assislance lo a growing number of chi5dren in contingency accommodation and we continue to raise the issue with duty holders. After PTolracted negotiations in two cases, the Education Aulhorily agreed to High CoL2rt Declarations thal it had breached the children's righls lo education undèr Article 2 of Protocol 1 of the European Convention on Human Rights (ECHR) for reason5 related lo a child's disability under Article 14 ECHR, non-discfiminalion. In one of these cases Ihey also agreed to Declarations that the right lo provision under a statement of SEN under Article 16 of the Education INI} Order 1996 had been denied and that the right to education "other than at school under Article 86 of Ihe Education {Nl) Order 1996, had been breathed when a child was unable to allend school because of illness. The political vacuum curtailed CLC'S ability to effect policy and legislativ& changes to address the worrying and systemic diminution in the delivery of children's rights. This is a perfect storm: duty bearers are increasingly failing to deliver thildren's rights at a time when the opportunities to effecl systemic change is limited. In these circumstances strategic liligatian is an important tool to effect individual and socielal access to childfen's rights. With no restoration of the Nl Assembly during the year and the huge and growing impact of the economi¢ crisis on the restoration of pre-covid servi￿, CLC will continue to utilise strategic litigation and other alternative strategies to challenge Ihe diminution of children's rights in Northern Ireland. We celebrated our 251h anniversary in September 2022. This aligned to welcome funding from the Paul Hamlyn Foundation which has enabled us lo comprehensively review and further improve the organisalion and our governance in preparation for the next 25 years. Work ¢ommenced on the development of a new case management database that will support management of information and monitoring of advice and casé outcomes. We also commenced planning for the return of training services from CLC which had ended as a resull or the Pandemic. As part of our Governance review we updated our Artides of Association, continued to support our Truslees Ihrough Iraining opportunities and recruiled a new Trustee to the Board in De￿Mber. We also reviewed and updated internal policies and procedures and coMMen￿d a salary and b8nefrts benchmarking exercise. and continued wilh wellbeing inlerventions for staff to ensure CLC remains competitive within the employment market. In the final quarter of the year we successfully completed the 3-year accreditation for the Lexcel quality stsndard underpinning our legal case management and client SilPPOrt systems. CHILDREN'S LAW CENTRE {NORTHERN IRELAND) TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Financial review The results for the year are set oul in detail on pages 12 10 33. The Centre returned nel deficit of £100,43912022 net surplus of £146,400) of which £160,894 related to a nel deficit in restricted funds and £60.455 related to a nel increase in unrestricted funds. of which £44,835 has been transferred to designated fund5 leaving a nel increase of unrestricted funds of £15,620. The increase in unrestricted funds include5 exceptional movemenl in pension provision income of £813 {2022 - £829). At 31 March 2023, the total funds of the charity amounted lo £849.511, comprising reslricted funds of £472,439 and unrestricted funds of £377,072. The unreslricled fund balance includes unrestricted general funds of £341,826, designated funds of £55,000 and a deficit on the pension reserve of £19,754. The vast majority of income received by the Centre is earmarked by the donor for specific purposes (restricted income). Only small amounts ale ieceived as free fflonies (unreslricled income) which can be allcjcaled according to organisation21 needs, including core running costs. The unreslricled fund is considered lo be essential lo the Centre as restricled funds are not always sufficient to meet all costs. Furthermore, in the cu￿ent economic enviionmenl, the level of funding rnay fluctuate from one year to the nexl. The unrestricted fund will therefore be essential to finance working capital. continua the charity s activities in the short term and fulfil ils legal responsibilities lo employees and creditors for a three month period. Current funning costs for Ihe charily afe £75,000 per month and the level of free reserves at the year end, excluding fixed assets and designated funds, was £247,172. The charily has significant funds secured for the forthcoming year and budgets have beèn prepared Ihal show thal the charity has sutficient resources to continue in operational existence for the foreseeable future. Restricted funds represent funds which are to be used in accordance wrth specific restrictiDns imposed by donors. The balance of reslri¢ted funds al 31 March 2023 was £472.439. The trustees have assessed the majoF iisks to which the charity is exposed, and ale satisfied Ihat systeThs are in place lo mitigate exposure to the major risks. Plans for future periods One of the long-leim objectives fDr the organi53tion remains the securing of mainstream fijnding for the Centre alongside diversifying and growing funding slreams. Acting on financial and legal advice. the Centre is also committed to working to build unrestricted financial reserves equivalent lo six months wtth a minimum of at leasl three months, running costs to ensure a financial cushion in the event of fulure funding difficulties. The building of such reserves is viewed by the charity as prudent financial management. in the besl interest off the Centre and necessary to honour the Cenlre's legal and financial commitments. CHILDREN'S LAW CENTRE (NORTHERN IRELAND) TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Structure, governance and management The Centre is a Charitable organisalion and a company limited by guarantee governed by its Articles of Association. The Centre is a membership organisalion which is governed by a Board of Trustees {which is also the Board of Directors) elected for one year at Ihe organisalion's AGM. According lo the Centre's constitution. additional Board members can be co-opted. The Board elect a Chair, Vice Chair. Treasurer and Secretsry. Training is provided as required. All Centre staff are answerable lo the Board through Ihe Centre Dire¢tor, Ms Patricia Kelly, who is responsible for the day lo day management of the Cenlre. The Board of Trustees ensures the good governance of the organisalion by setting its strategic objectives and policy direction through the Cenlre's three year strategic plan and monitoring Pfogress on this through the annual operational planning process. The trustees, who are also the directors for the purpose of company law. and who served during the year and up to Ihe date of signature of the financial slatements were= Ms Y Campbell MSA Toal MSA Stewart Mr D Farrell Mr J Finnegan Ms M Spence Ms S Stewart Ms T Canavan MrBDMoss (Resigned 8 December 2022} (Resigned 8 December 2022) (Appoinled 8 Decembei 2022) Statement of trustees. responsibilities The trustees, who are also the directors of Children's Law Centre (Northern Ireland) for the purpose of company law, are responsible for preparing the Trustees, Report and the financial statements in accordan￿ with applicable law and United Kingdom Accounting Standards (Uniled Kingdom Generally Accepted Accounting Praclitsl. Company Law requires Ihe trustees to prepare financial slatemenls for each financial year which give a tfue and fair view of the stale of affairs of the charity and of the incoming resources and application of resources, including the income and expenditufe, of the charitable company for Ihal year. In preparing these financial statements, the trustees are required to.. select suitable accounting policies and then apply them consistently., observe the methods and principles in the Charilies SORP.. make judgements and estimate5 that are reasonable and prudent- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and prepare the financial slalements on the going Concérn basis unless it Is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy al any time Ihe financial position of the charity and enable them to ensure that th8 financial statements comply with the Companies Act 2006. They are also responsible for safeguarding Ihe assets of Ihe charity and hence for tsking reasonable steps for the prevenlion and detection of fraud and other irregularities. CHILDREN'S LAW CENTRE (NORTHERN IRELAND) TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Small Companles Exemptlon In preparing thls reporL the dlre¢tors have taken advantage of the small companies exemptions provided by sectlon 415A of the Companies Act 2006. Dlsclosure of information to auditor Each of the trustees has confimied that there is no infomiatlon of which they are aw8re whlch is relevant to the audit, but of which the 8uditor is unaware. They have further confirmed that they have taken appropriate steps lo identify such relevant information and to establish that Ihe auditor is aware of such information. The tnj ees. report was approved by the Board of Trustees. Ms P Kelly Company Secretary Dated.. CHARTERED ACCOUINTTIINTS CHILDREN'S LAW CENTRE (NORTHERN IRELAND) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHILDREN'S LAW CENTRE (NORTHERN IRELAND) Opinion We have audited the financial statements of Children's Law Centre (Northern Ireland) Ilhe 'Gharity') for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including 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 The Financial Reporting Slandard applicable in the UK and Republic ol Ireland (United Kingdom GenerallyA¢¢epted Accounting Practice). In our opinion, the financial statements.. give a true and fair view of the stale of the charitable company's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Praclio.. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with Inlernalional Standards on Auditing {UK} IISAS (UKII and applicable law. Our responsibilities under those standards are further described in the Auditoffs responsibilities for the audit ol the financial slatements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going concom basis of accounling in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertaintie5 relating lo events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern fof 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. Alfred House 19 Alfred Street BELFAST BT2 8EQ DX3910 NR Belfast 50 Century House 40 CI'i'5CLnt Biisine5s Park LIS13L￿N 1ST28 2GkN' 17 INlandeiryll¢ Street PORI'IWOW.N Craisiivon BT62 3PIS Tel: +44 (0)28 9031 1113 F￿. +44 (0)28 9031 0777 Tcl: +4410)28 9260 73517 riLI: .' 44 (olfjb go60 1656 TL.I.. +4410)28,3831 ?801 11-. +44 lolo8 3835 n293 Ch4rt¢rwl Use of our report This report is made solely lo the charitable Company's members, as a body, in accordance with Chapter 3 of Part 16 of the CompaniesAcl 2006. Our audit work has been undertaken so that we might stale lo the charilaL4e company's members those rnatters we are required lo stale lo them in an auditor's report and for no other purpos@. To the fullest extent permitted by law. we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or forth& opinions we have formed. Mr Nlgel Moo A (Senior Statutory Auditor) for and on behalf of GMCG BELFAST Chartered Accountants Statutory Auditor Chartered Accountants & Statutory Auditor Alfred House 19 Alfred Street Belfast BT2 8EQ 11 CHILDREN'S LAW CENTRE (NORTHERN IRELAND) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023 Unrestricted Restricted funds funds 2023 2023 Total Unrestricted Restricted funds funds 2022 2022 Total 2023 2022 Notes Income and endowments from: Donations and legacies Charitable activities Investments Movement in pension provisitsn 50 71.715 38.404 50 751,864 38,404 384 907.235 36.178 680,149 54.154 36,178 853,081 613 613 829 829 Totsl income 110,782 680,149 790,931 91.545 853,081 944,628 enditure on: Charitable activities 50,327 841,043 891,370 43,016 755,210 798.226 Gross transfers between funds Net incomel{expenditurel for the yearl Net movement in funds (9.381) 9,381 60,455 (160.8941 (100,439) 39,148 107,252 146,400 Fund balan￿S at 1 April 2022 316,617 633,333 949,950 277,469 526.081 803,55D Fund balances at 31 March 2023 377,072 472.439 849.511 316,617 633,333 949,950 The statement of finan¢ial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The slalement of financial activities also complies wilh the requirements for an income and expendilure account under the Companies Act 2006. 12- CHILDREN'S LAW CENTRE (NORTHERN IRELAND) BALANCE SHEET AS AT 31 MARCH 2023 2023 2022 Notes Fixed assets Intangible assets Tsngible assets Investment properties 12 13 14 7,77Q 241,194 214,000 31,848 249,596 214,000 462,964 495,444 Current assets D8blDrs Cash at bank and in hand 15 52,500 553.265 145.298 553,881 605,765 699.179 Creditors: amounts falling due within one year 16 (57.650) (63,429) Net currenl assets 548,115 635,750 Total assets less current ITabilities 1,011.079 1.131,194 Creditors: amounts falling due after more than one year 17 (141.814) (156,352) Provlslons for liabllllles Defined benefit pension liabilÈty 19 19.754 24.892 (19,754) (24,892) Net assets 849,511 949,950 13- CHILDREN'S LAW CENTRE (NORTHERN IRELAND) BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2023 2023 2022 Notes Incomo funds Re51ri¢ted fijnds Unrestricte funds Designated funds General unrestricted funds Pension reserve 21 472,439 633,333 20 55,000 341,828 {19.754) 10,165 331,344 (24,892) 377.072 316,617 849,511 949,950 These finan¢lal slatements have been prepared in accordance wilh the provisions applicable to companles subfrct to the small companies regime. Th8 financial statements were approved by the Trustees o Ms A Toal Trustee Truste Company Registratlon No. N1033998 14- CHILDREN'S LAW CENTRE (NORTHERN IRELAND) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023 2023 2022 Notes Cash flows from operating activities Cash {absorbed by)Igeneraled from operalions 28 {21,4931 31,474 Investing actlvlties Purchase of intangible assets Purchase of tangible fixed assets Proceeds from dispos81 of tangible fixed assets Investmenl income received (5,775} {3,812) {2.738) 194 38.404 1,169 36.178 Net cash generated from Investing activities 35,860 27,780 Financing activities Repayment of bank loans (14.983} (15,424) Net cash used in financing activities (14.983) (15,4241 Net Ide¢rease)lin¢rease in cash and cash equivalents (616) 43,810 Cash and cash equivalents at beginning of year 553,881 510,071 Cash and cash equivalents atend of year 553.265 553,881 15 CHILDREN'S LAW CENTRE (NORTHERN IRELAND) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Accountlng policles Charity infomiation Children's Law Centre (Northern Ireland} is a private company limited by gltaranlee incorporaled in Norther Ireland. The registered Off1￿ is Rights House, 127-131 Orrneau Road, Belfasl, BT7 1SH. The members of the company are the directors named on page 4. In the event of the Company being wound up, the liability in respect of the guarantee is limited to £1 per member of the Company. 1.1 Accounting convention The financial slatements have been prepared in awordan¢e with the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practi￿ applicable lo chafilies preparin9 their 8ccount5 in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102} (effective 1 January 2019)" The charity is a Public Benefit Enlily as defined by FRS 102. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial slatements are rounded lo the nearest £. The financial statements have been prepared under the historical cost convention, modified to include the revalualion of investment properties and certain financial instrumer¥tS at fair value. The principal accounting poIicEes adopted ale set out below_ 1.2 Going concern Al the lime of approving the financial slalements, the trustees have a reasonable expectation that the charity has adequale Tesources to continue in operalional existence for the foreseeable future. Thus the trustees ¢onlinue to adopt the 9oin9 concem basis of accounting in preparing the financial statements. 1.3 Charitable funds UnreslriGted funds are available for use at the distrelion of the trustees in furtherance of their charitable objedives. Designated funds comprise funds which have been set aside al the discretion of Ihe trustees for specifi purposes. The purposes and uses of the designated funds are set oul in the notes to the financial slatemenls. Restricted fund5 are subjed to specific conditions by donors as to how they may be used. The purposes and uses of Ihe restricted funds are set out in the notes to the financial statements. 1.4 Income Income is recognised when the charity is legally enlitled to it after any perfofmance conditions have beèn met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of Ihe donation. unless performan￿ conditions require deferral of the amounl. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised al the lime of the donation. Legacies are recognised on receipt or otherwise if the charily has been notified of an impending distribution, the amounl is known, and retsipt is expected. If the amount is nct known, the legacy is treated as a conlingenl asset. Other income is recognised in the period in which it is receivable and to the extenl Ihe goods have been provided or on Gompletion of the service. Rental in¢ome is re¢ognised evenly over the period of the tenancy agreement. 16- CHILDREN'S LAW CENTRE (NORTHERN IRELAND) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Accounting policles (Continuedl 1.5 Expenditure Expendilure is recognised once Ihere is a legal or constructive obligation to transfer economic benefit to a third party. it is probable that a transfef of economic benef￿1$ will be required in settlement, and thè amount of Ihe obligation can be measured reliably. Expenditure $3 classified by activity. The costs of each activily are made up of the total of direcl costs and shared costs. including support costs involved in undertaking each activity. Direct costs attributable lo a single activity are allocated directly to that activity. Shared ¢osls which contribute to more than one activity and support costs which are not attribLslable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs ale allocated on the basis of lime spent, and depreciation charges are allocated on the portion of the asset's use. Expenditure is recognised once there is a legal or conslructive obligation to Ir8nsfer economic benefit to a third party, it IS PTobable that a Iransfer of economic benefits will be required in selllemenl and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the tolal of direct Gosts and shared costs, including support cosls involved in undettaking each activity. Direct costs attributable lo a single activity are allocated directly lo that aclivily. Shared cosls which conlribute Irj more than one activity and sUPPOrt costs which are not altiibulable to a single activity are apportioned bet￿een those activities on a basis consistenl with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the porlion of Ihe asset's use_ Support costs are those costs incurred direclly in support of expenditure on the objects of the company. Govemance costs are Ihose incurred in conneclion wilh administration of the company and compliance with constitutional and slalutory requirements. Charitable activilies and Governance cosls are costs incurred on the company's educational operations, including support costs and costs relating to the governano of the company apportioned lo charilable activities. All 8xpendilure is inclusive of irrecoverable VAT. 1.6 Intangible fixed assets other than goodwill Intangible assets acquired separately from a business are recognised al cost and are subsequenlly measured at Cost less accumulated amortiS31ion and accumulated impairment losses. Intangible assets acquired on business combinations are recognised separately from goodwill al the acquisitiorj date where il is probable that Ihe expected future economi¢ benefits that are attributsble lo the assel will flow to the entity and the fair value of Ihe asset can be measured reliably. the intangible asset arises from conliactual or other legal rights., and the intangible asset is separable from the enlity. Amorlisation 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- Software 33.33'fi per annum straight line 1.7 Tangible fixed assets Tangible fixed assets are initially measured al cost and subsequentEy 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 assels less their residual values over their useful lives on the following bases: Leasehold land and buildings Office equipment 2 /0 per annum straight line 25°k per annum reducing balan 17- CHILDREN'S LAW CENTRE (NORTHERN IRELAND> NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 A¢Gounting poli¢ies (Continued) The gaTn or loss arising on the disposal of an asset is delemiined as the difference between the sale proceeds and the carying value of the assel, and is recognised in the statement of firJanGial activitie5. 1.8 Investment properties Investment property, which is property held to earn rentals andlor for capital appreciation, is initially recognised at cost, which inGludes the purchase cost and any directly attributable expenditure_ Subsequently il is measured at fair value al the reporting end date. The surplus or deficit on rèvaluation is recognised in profit or loss. 1.9 Impairment of fixed assets At each reporting end dale, Ihe charity reviews the carrying amounts of its tangible and intangible assets lo determine whether there is any indication that those assets have suffered an impairm8nt loss. If any such indicalion exists, the recoverable amount of the asset is estsmaled in order to delermine the extent of the impairmenl loss (if any). 1.10 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks. olher short-lerm liquid inveslrnents with original maturities of three month5 or less, and bank overdrafts. Bank oveidrafls are shown within borrowings in current liabililies. 1.11 Flnanclal instruments The charity has elected to apply the provisions of Section 11 'Basic Financial Instrutnents, and Section 12 'Othei Financial Instruments Issues, of FRS 102 10 all of ils financial insliuments. Financial inslruments a￿ recognised in the charity's balan￿ sheet when the charity becomes party to the contradual provisions of the inslrument. Financial assets and liabilities ar8 offsel. with the nel amounts presenled in the financial statements. when there is a le9ally enforceable right to set off the recognised amoun15 and there is an intention to settle on a net basis or lo realise the asset and settle the liability simullaneously. Basic financial assets Basic financial assels. which include debtors and cash and bank balances, are initially measured al Ifansaction price includit7g transaction costs and are subsequenlly carried al amortised cost using the effective interest method unless the arrangement ¢onslilutes a financing transaction. where the transaction is measured al the presenl value of the fLtture re¢eipis discounted at a market rale of interest. Financial assets dassified a5 Teceivable within one year are not amortised. Basic financial liabilities Basic financial liabilities, in¢luding creditors and bank loans are initially recognised al transaGtion price unless the arrangement constitutes a financing Iransaction, where the debt instrument is measured at thè present value of the future payments discounted at a market rate of interesl. Financial liabililies classified as payable within one year are not amortised. Debt instrumenls are subsequently carried at amortised cost, using the effective interest rale method. Trade credilors are obligations to pay for goods or servi¢es that have been acquired in the ordinary course of operations from suppliers. Amounts payable are Gla5sified as CUTrent liabilities if paymenl is due within one year or less. If not, they are presented as non-cuirent 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. 18 CHILDREN'S LAW CENTRE (NORTHERN IRELAND) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Accounting policies (Continued 1.12 Employee benefits The cosl of any unused holiday entitlement is recognised in the period in which the employeè's sèrvices are received. Termination benefils are recognised immediately as an expense when th& Gharily is demDnstrably CDITlmitled to lerminate the employment of an employee or lo provide termination benefits. 1.13 Retirement benefits In prior years the Centre contributed to a multi-employer defined benefit pension scheme, NICPS, into which the Centre is committed to making payments of £4.525 per annlsm to make good prior year deficits. Following the closure of this Scheme on 31 March 2009. the directors confirmed the selection of the Pensions TrLtsl as the provider of the Flexible Reliremenl Plan (defined conlribution scheme) al a Gonlribution rate of 70/. from employers and a minimum 5/. per employee. Contributions to this SGhetne by the Centre have therefore been accounted for by charging costs as payments 8ccrue. A provision is reco9nised for the contributions payable that ar05e from the agreement with NICPS to fund the prior year deficits. 19- CHILDREN'S LAW CENTRE (NORTHERN IRELAND) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Critical accounting estimates and judgemènts In Ihe application of the charity's accounting policies. the tru51ees are required to make judgements, estimales and assumplions aboul the carrying amounl of assets and liabilities that are not readily apparent from other sources. The estimales and associaled assumptions are basecl on historical experience and other factor$ that are considered to be relevanl. Aclual results may differ from these eslimales. The estimates arsd underlying assumptions are reviewed on an ongoing basis. Revisions lo accounting estim2tes are recognised in the period in which the estimate is revised where Ihe revision affeGls only that period, or in Ihe period of Ihe revision and fvlure periods where the revision affects both current and future periods. Key sources of estlmation uncertainty Investment Property Fair value is determined annually and derived from the current market rents and investment property yields for comparable real estate. Valuation involves some estimation uncertainty but is based on periodic advice from independent expert valuers. Fixed Assets The annual depreciation charge on fixed asse15 depends prlmarily on the estimated lives of each type of asset and estimates of residual values. The direcLois regularly review these asset lives and change them as necessary ta reflect current thinking on remaining lives in light of prospective economic utilisalion and physical condition of the assets ¢oncerned. Char*ges in asset lives can have a significant impact on depreciation and amortssation charges for the period. Detail of the useful lives is included in the accounting policies. Debtors Short term debtors are measured al transaction pri￿, less any impairment. Impairment of such deblors involves some eslimation Un￿rtaintY. Multl-employer Defined Benefit Pension Scheme Liability The pension scheme liabllity is in relation lo the contributions payable that have arisen from an agreement with a mulli-employei plan lo fund a deficit and is based on Gertain assumptions as detailed in note 19. Restricted and Unrestricted Funds Judgements are made in relation to allocalion of income and expenditure to reslticled and unrestricted funds. The directors consider il appropriate to allocat& these funds based on interpretation of donations received. Donations and legacies Unrestricted Unrestrlcted funds funds 2023 2022 Donations and gifts 50 384 -20- CHILDREN'S LAW CENTRE (NORTHERN IRELAND) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Charitable activlties 2023 2022 Performan￿ related granls Membership and training Income from legal work Less.- deferred income 683.149 2,829 65.886 824.081 3,502 47,652 32,000 751,864 907,235 Analysis by fund Unreslricted funds Restricted funds 71,715 680.149 54,154 853,081 751,864 907,235 The Board considers Ihe Charity to have one main Charilable Activity, being the promotion, proleclion and realisalion of children's rights. Investments Unrestricted Unrestricted funds funds 2023 2022 Rental income nterest receivable 36,926 1,478 36,070 108 3B,404 36,178 Movement in pension provlsion Unrestrlcted Unrestricted funds funds 2023 2022 Unwinding of the discount factor (interest Èxpense) Remeasuremenls- impact of any Ghange in assumpiions (5751 1,188 {281} 1,110 613 829 Further informalion in relation to the pension provision is provided in note 19. 21 CHILDREN'S LAW CENTRE (NORTHERN IRELAND) NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Charitsble activities 2023 2022 Staff costs Depreciation and impairment Insurance Printing, poslage and stationery Telephone Electricity Service charge Cleaning Travel and subsistence Young peoples expenses Young people Iraining and development Information materials Subscriptions Legal account expenditure Pension s¢heme management costs Managemenl costs other charitable expenditure 469,942 35,024 10,775 7,426 6.764 4.364 10,077 2,609 490,155 38,724 9,234 6,464 4,104 1,477 8,093 1,590 698 663 121 142 574 40,494 2,441 28.397 1,169 346 134 622 42,613 2,441 39.720 194 633,051 634.540 Share of support cosls (see note 8) Share of governance costs (see note 8) 253,594 4,725 159,186 4.500 891,370 798,226 Analysis by fund Unrestricled funds Restricted funds 50,327 841,043 43,016 755,210 891,370 798,226 22- CHILDREN'S LAW CENTRE (NORTHERN IRELAND) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Support costs Support Governance costs costs 2023 Support Governance ¢osts costs 2022 Staff costs Insurance Printing, postage and stationery Electricity and telephone SeNio charge Repairs and maintenance Professional fees Staff training Sundry expenses Loan interest Irrecoverable VAT 126,261 1,901 126.261 1.901 79.379 1.630 79.379 1.630 1,459 1,964 2,239 1,459 1,964 2,239 1.141 985 1,709 1.141 985 1,709 11,365 58.747 1.686 22.Q60 8.655 17,257 11,365 58.747 1,686 22,060 8,655 17,257 13,300 39,731 1,172 2,407 5,691 12,041 13,300 39,731 1,172 2,407 5,691 12,041 Audit fees 4.725 4.725 4,500 4.500 253,594 4,725 258,319 159,186 4,500 163.686 Analysed between Charitable activities 253.594 4,725 258,319 159,186 4,500 163,688 Governance costs includes payments lo the auditors of £4,725 (2022- £4,500) for audit fees. Trustees None of the Irustees (or any persons connected with them) re￿iVed any remuneration or benefEls frow the charity during tho year. 10 Employees The average monthly number ofemployees during ihe year was: 2023 Number 2022 Number 14 Employment costs 2023 2022 Wages and salaries Social security costs Other pension ¢csts 513,299 51,700 31,204 494,206 45,244 30,084 596,203 569,534 23- CHILDREN'S LAW CENTRE (NORTHERN IRELAND) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 10 Employees (Continued) Total remuneration payable lo key management personnel during ihe year was £166,251 (2022 - £140,760). There were no employees whose annual remuneration was more than £60.000. 11 Taxation The charity is exempi from lax on income and gains falling within section 505 01 the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extenl that these arè applied ID its charitable objects. 12 Intangible fixed assets Softwate Ct)st At 1 April 2022 and 31 March 2023 83,932 Amortlsatlon and impairment Al 1 April 2022 Amortisalion charged for the year 52,084 24,078 At 31 March 2023 76,162 Carrying amount At 31 March 2023 7,770 Al 31 March 2022 31,848 13 Tangible fixed assets Leasehold land and buildings Offlce 8quipment Total Cost At 1 April 2022 Additions Disposals 249,605 43,438 2,738 {501) 2g3,043 2,738 {501) At 31 March 2023 249,605 45,675 295,280 Depreciation and impaimient At 1 April 2022 Deprecsalion charged in the year Eliminated in respecl of disposals 23.206 4.992 20,241 5,954 (307) 43,447 10,946 {307) At 31 March 2023 28,198 25,888 54,086 Carrying amount At 31 March 2023 221,407 19,787 241,194 At 31 March 2022 226,399 23,197 249,596 -24- CHILDREN'S LAW CENTRE (NORTHERN IRELAND) NOTES TO TrIE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 13 Tangible ftxed assets (Contlnued) Land and buildings of nel book value £221.407 are held as security against the ¢ompany's bank borrowings. 14 Investment property 2023 Fair value At 1 April 2022 and 31 March 2023 214,000 The 2023 valuations were made by ihe directors. on an open market value for exisling use basis. Investmenl propety of net book value £214.000 is held as security against the company's bank borrowings. 15 Debtors 2023 2022 Amounts falllng due within one year. Trade debtors Prepayments and accrued income 35,643 16,857 135,439 9,859 52,500 145,298 16 Creditors: amounts falling due within one year 2023 2022 Notes Bank loans Other taxation and social security Trade creditors Other creditors Accruals 18 14,071 17,847 9,987 39 15,706 14,516 29,019 6,515 13,379 57,650 63,429 17 Creditors: amounts falling due after more than one year 2023 2022 Notes Bank loans 18 141.814 156,352 -25- CHILDREN'S LAW CENTRE (NORTHERN IRELAND) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THEYEAR ENDED 31 MARCH 2023 18 Loans and overdrafts 2023 2D22 Bank loans 155,885 170,868 Payable within one year Payable after one year 14,071 141,814 14,516 158,352 Amounts included above which fall due after five years- Payable by instalmenls 73,848 92,606 Bank loans and overdrafts are secured by a legal charge over the charity's premises. Bank loans are repayable by monthly inslalments of £1.820 until 2031 31 an Inte￿St rale of 3.kn per annum over Base Rate. 19 Retirement benefit schemes Defined contribution schemes The charity operates a defined conliibution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund. The charge to Pfofil or loss in respecl of defined contribution schemes was £31,204 {2022 - £30,084). -26- CHILDREN'S LAW CENTRE (NORTHERN IRELAND) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 19 Retirement benefit schemps (Continued) Delined benefit schemes In prior years the Centre ¢ontributed to The Pensions Trust Northern Ireland Charities Pension Scheme (the Scheme). The Scheme is a multi-employer defined benefit scheme. The Scheme is funded and was not contracted out of the slate scheme. The Scheme closed to future accrual on 31 March 2009. There is currently no intention to wind-up the Scheme and it continues in paid-up form. The Pension Twst commissions an actuarial valuation of the Scheme every three years. The main purpose of the valuation is to determine the financial position of Ihe Scheme in order lo delermine the level of future ontributions required so that the Scheme can meel its pension obligations as they fall due. The actuarial valuation assesses wheiher the Scheme's assets at the valuation date are likely lo be sufficient to pay the pension benefits accrued by members as al the valuation date. Asset values are calculated by referen¢e lo market levels. Accrued pension benefits are valued by discounting expected fut￿re benefit paymenls using a discount rate calculated by reference to the expected future inveslment returns. During the accounting period 31 March 2023 the employer paid contributions of £4,525 to cover the deficit paymenls and scheme managemenl cosls. It is not possible in thè normal course of events to identify on a consislenl and reasonable basis the share of underlying assets and liabilities belonging to individual participaling employers. The Scheme is a mulli employer scheme. where the scheme assets are co-mingled for investment purposes, and b8nefil$ are paid from ID131 scheme assels_ The last formal compleleij valualion of the Scheme was performed as al 30 September 2019 by a professionally qualified actuary using the 'projected unit credil, method. The market value of the Scheme's assets at the valuats'on dale was £35.4 million. The valuation revealed a shortfall of assets compared lo liabilitles 01 £2.4 million. The results of the 2019 valu31ion tneans a new deficit recovery plan is required to fund the deficit of £2.4 million_ This commenced on 1 August 2020 and will run until 29 February 2C128. The Scheme Actuary has prepared an Actuarial Report that provides an approximate updale on the funding position of the Scheme as at 30 September 2022. Such a report is required by legislation for ye8rs in which a full actuarial valuation is not carried out. The funding update revealed a decrease in the assets of the Scheme to £22.8 million (from £35.9 million at 30 September 2021 } and indicated a de¢￿aSe in the shortfall of assels compared to liabilities of approximately £13.1 million (from £698k al 30 Seplemb&r 2021), equivalent to a past seFvice funding level of 430/0 (980/0 at 30 September 2021). Following a change in legislalion in September 2005 there is 8 Potenlial debt on the employer that could be levied by the Trustee of Ihe Scheme. The debl is due in Ihe event of the employer ceasing lo participate in the Scheme or the Scheme winding up. The debt for the Scheme as a whole is calculated by comparing the liabilities for the Scheme (calculated on a buy-out basis i.e. the cosl of securing benefits by purchasing annuily policies from an insurer, plus an allowance for expenses) with the assets of the Scheme. If the liabilities exceed the assets Ihere is a buy-out debt. -27- CHILDREN'S LAW CENTRE (NORTHERN IRELAND) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 19 Retlrement benefit schemes Icontinued) The leaving employer's share of the buy-out debt is the proportion of the Scheme's liability altributable to employment with the leaving employer compared to the total amount of the Scheme's liabilities Ir&lating to employment with all Ihe CLtrrentSy participats'ng employers). The leaving employer's debt therefore includes a share of any 'orphan' liabilities in respect of previously parlicipating ernployers. The amounl of the debt therefore depends on many factors including total Scheme liabilities, Scheme investment performance, the liabilities in respect of current and former employees of the employér, financial ctsndilions at Ihe lime of the ssalion event and the insurance buy-out mathet. The amounts of debt Can therefore be volatile over tirlle, Under FRS 102, where an enlily participates in a mulli-employer plan, and the entiiy had entered into an agreement wilh Ihe mulli-employer plan that determines how the èntity will fund a deficit, Ihe entity sh811 recognise a liability for Ihe contributions payable that arise Irom the agreement and the resulting expense in the Statement of Financial Activities. Movements in the present value of defined benefit obligations: 2023 Liabilities al 1 Apfil 2022 Benefits paid Actuarial gains and losses Interest cost 24,892 (4,525) (1.188) 575 Al 31 March 2023 19,754 The above provision has assumed a dis¢ounÈ rate of 5.15 /0 per annum (2022 - 2.560/0 per annum} and is the equivalent single discount rale which. when used lo discount the future ie(x)very plan cOntrib￿li0nS due, would give the same results as using a full AA corporate bond yield cU￿e lo discount the same recovery plan contributions. The Centre now uses The Pensions Trust a5 the provider of a Flexible Retirement Plan (defined contribution scheme) al a contribution rate of 7 /0 from employers and a minimum S'/1 per employee. CJntributions to Ihis Scheme by the Centre have been accounted for by charging costs as payments accrue and no payments 12022 - £Nill were outstanding al the year end. 20 Deslgnated funds Tre income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by Ihe trustees for specific purposes.. Movement in funds Incomlfig Tesources Balance at 1 April 2021 Balancè * 1 April 2022 Transfèrs 8alance at 31 IAarch 2023 ALB Legal Works Funds Essenlial building maintenance 10,165 10,165 9,835 35,000 20,DOO 35.OOD 10,165 10,165 44,835 55,000 28- r£J w) tyj i o o)*tQ fDn (O Ln onL tt) L*1 ) ¢0 ojthQLn￿c0ff)￿Qo -*0 00 o (r? Jri ID 07 In fo V tn (Do O tr) (IT go ￿ CO GI ￿ GJ tn Ln Ln n u) m ￿ aj trsVLOfrS(DWJ¢N CQ O %Yi tSi co to (D O (O* oooocNo 000￿00 ooo¢J)￿O - ¢0 O io Pa a)￿-￿-0¢ 0￿￿OIn o) o) o u) QYJ (N (ts (ri J¥ fn (y L) o ¢v E o) J QI-. non