Charlty registration number NIC101444 THE PRESBYfERIAN CHILDREN'S SOCIETY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
THE PRESBYTERIAN CHILDREN'S SOCIETY LEGAL AND ADMINISTRATIVE INFORMATION Presldent Rev DT J l Thompson, MBE, TD, DL, BSC, BD, MTh, Dmin Vlce President Mr W N Bennett Bsc (Econ) Hons, IPFA Honorary Secretary Mr N WTodd, BEd, MA, Msc Honorary Treasurer Mr l Mcminn, MBE Govemors Rov Dr L E Carroll, BA, BD, PhD, LLCM Mr B Corry, ACII, DipPFS Mrs H Hamilton, 8Sc (Econ), ACA Mr C Kerr, QFSM, DL, BA, Msc Rev PA McBrid6, BEd, BD HIS Honour J A H Martin. LLB, DipL4W, BL, KC Mrs H Morri)w, BA, FCA Rev T C Morrison, BA, BD Mrs J E Wlson, MB, Bch, BAO, MRCGP Mrs V McGuffin, M Inst LM Rev T J Stothers, BSC, BD, MTh Rev M E Donald, BEd, MEd, Dipmin, MDIV, CF Mr L Conway, OBE, FCIM, Dipsw, CQSW Rev C McKibbin, BD, Dipmin Ra8ponslble for day to day administratlon of the charlty Mr J G Nicholson, BA (Hons) Charfty number NIC101444 Regi8t•rnd offlce Gleng811 Exchange 3 Glengall Street Belfast BT12 SAB Audltor H8rbinson Mulholland Centrepoint 24 Orméau Avenue Belfast BT2 8HS Bankers Danske Bank Donegall Squar8 West Belfast Co. Antrim Northern Ireland BT16JS Sollcltors Carson McDowell Solicitors MUaY House Murray Street Belfast BT16DN
THE PRESBYTERIAN CHILDREN'S SOCIETY CONTENTS Page Governors, Report Statement of Govemors, Responsibilities Independent Audltorfs Report 7-10 Statement of Financial Activities 11 Balance Sheet 12 Statement of Cash Flows 13 Notes to the Financial Statemenls 14-23 Detailed Staternent of Financial Activites 23
THE PRESBYTERIAN CHILDREN'S SOCIETY GOVERNORS, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The Govemor6 present their report and the audited financial statements for the year ended 31 December 2023. The financial statements comply with Accounting and Reporting by Charities: Statement of Recommended Pradice applicable to charities preparing Iheir accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102). Purpose and Alm8 The Society's purposes are outlined as follows.. a. Making Grants for or towards the education and maintenance of children seleded as outlined in the grant making procedure. The benefit that flows from this is that the well-being of children and their families is enhanced by basic financi81 needs being addressed andlor poverty alleviated. An annual means testing procedure ensures families are in need of assistance and therefore will benefit from the financial grants provided. The Society invites applications for the funding of granls to individuals through their ministers. These applications are then reviewed against specffic criteria and objectives which are set by the Govemors, in accordance with the objects of the Society. a. In eddition to the above, a further purpose is caring for and supporting children In need whether material, physical, mental, emollonal and spiritual and promoting their material, physical, men181, emotional and spiritual development whether through their families, Church or community or otherwise howsoever that they may grow to full maturity as individuals and members of society. The benefit that flows from this purpose is that the well-being of families and their children is enh8nced by schemes which are financially supported by the Society. The Society's funding provides opportunities for children and their families to develop materially, physicalty, mentally, emotionally, and spiritually. Objectlve, Perfonnance and Achievements The 2023 objectives included the following: supporting 8round 910 Presbyterian children and young people by way of quarterly and special grants,. Increasing the quarterly grants (where possible) by at least the inflation rate., supporting Presbyterian children and young people by way of eXptIOnal grants; supporting eligible Presbyterian families to attend the PCI Family Holiday., supporting a programme of education81 workshops in partnership with Eden Consultancy for parents, carer5 and leaders across a range of subjects including aut18m, behavioural support and anxiety in young people. There was a substantial level of attainment in relation to major objectives during the year to 31 December 2023. During 2023 the number of young people being helped by the Society was comparable to the previous year. At 1 January 2023 the number was 889 and at 31 December it was 911.
THE PRESBYTERIAN CHILDREN'S SOCIETY GOVERNORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Young people on roll at 1 January Added during the year Coming off during the year 865 129 91 851 118 132 Young people on roll at 31 December Young people awaiting selection 889 22 851 38 Total young people being helped 911 889 The b8ckgrounds of young people on the roll as at 31 December were as follows: 2023 2022 PanIS Saparatedl Divorced Parent(8) Deceased Single Mothers Parent{s) Disabledl Chronlcally ill PaTent(s) Unemployedl Low Income other 329 172 113 92 128 55 38 19 13 10 14 329 169 118 88 108 39 39 20 14 10 13 Total 889 100 851 100 The Governors were onc8 again encouraged by the level of Subscription income the Soci8ty received from Presbyterian congregations and individuals. Their consistent generosity, despite challenging economic CITGumstances, continues to Inspire and demonstrates an unwavering support from across the Church for the Society's work. The Board of Govemors remaln steadfastty commltted to developlng relevant projects which provide for the appropriate pastoral care and support of Presbyterian children and young people, and to encourage them to achieve their fvll potential.
THE PRESBYTERIAN CHILDREN'S SOCIETY GOVERNORS, REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Financlal review The net income for the year amounted to £130,599. Comparatively in 2022 this was net expenditure of £40,940. The income for the year amounted to £1,025.567 (2022 - £862,455). Grant expenditure to individuals decreased by 1.1 Yo to £679,468 (2022 - £687,500). In 2023 bequests totslled £187,932 (2022- £16,727). The Governors have been encouraged in the economic climate by the level of subscriptions of £351,202 (2022 - £363,948). These subscriptions, together with dividends, inlerest, and income from other sources, have ensured that the Society remains in a satisfactory financial position to carry out its charitable activities. Investment management fees decreased by 5.90/0 to £60,445 (2022 - £64,285), govemance costs increased by 13.ots/o to £139,856 (2022 - £123,755) and fundraising costs increased to £11,199 (2022 - £9,056). Fundraising costs accounted for 3.10/0 of subscription In¢ome12022- 2.50h). Investment Poll¢y The Soaety's fund managers during the year were Sarasin & Partner8 LLP who were Instructed to pursue a policy of maximising income whilst maintaining some capital growth. This policy is CUTrenUy perfomied in accordance with the Society's ethical guidelines which states that there should be no direct investment in any company with a significant interest in alcohol, tobacco, gambling, indiscriminate weaponry or convenh'onal weapons, pornography, or exploitative child labour. The Society's preference is for nil investment in any companies in the above sectors, but the size and cornplex nature of corporations means they rnay have unintended exposures to certain sectors. This may be a negligible part of their overall business, or they may be in the prO5S of disposing of these operations. Therefore, the use of the significant interest criteria allows for Ihese practical considerations. The parameters for equity investment uses a definition of significant interest as company thal derive up to approximately 100/0 of turnover from the above list. R•8erve8 Policy It Is the policy of the Soclety to maintain unrestrlcted funds which are free resenie8 of the So¢l8ty, at a level whlch equates to approximately one year's unrestricted expenditure. This provides sufficient fvnds to cover management and administration costs and respond to emergency applications for grants which arlse from time to time. Rlsk Management The Governors have examined and assessed the major risks to which the Society is exposed, in particular, those relaled to the operations and finances of the Society and are satisfied that adequate systems are in place to mitigate any exposure to major risks. There is 8 formal risk assessment and documentation of Process. Golng Concem The Governors believe that there are no material UnrtaIntieS that cast significant doubt about the Society's ability to continue as a going concern and the financial statements have been prepared on this basis.
THE PRESBYTERIAN CHILDREN'S SOCIETY GOVERNORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Administrative details and Govemors Please refer to the legal and administrative informalion page for administrative details and a list of Governors. Structure Govemance and Mana ement Govemlng document The Presbyterian Children's Society is registered as a charity with the Charity Cornmission for Northern Ireland (Registered Charity Number. NIC101444). The Socièty is govemed by Scheme No. 58 under the Education Endowments (Ireland) Act 1885. Organlsation A Board of Governors of 18 members has overall responsibility for the chaiity. Meeting bi-annually, the Board possess the authority to administer Ihe charity and manage its day to day operations. However, daily management of the charity has been delegated to the Executive Secretary who is directly responsible and accountable to the Board, Appolntment of Govemor8 There is an informal stnjcture for appointment and training of Governors. In determining the appropriateness of appointing a new Govemor the charity considers the skills and willingne5S to seNe of that individual. Pay policy for Govemors and SL All Govemors give their time freely and did not receive remuneration during the year. The pay of senior staff 18 reviewed annually. RÉlat•d parti08 None of our Govemors recelve remuneration or any other benefit from thelr work with the charity. There were no relate(J p8ty transactions during the year. Plan8 for future pèrlods The Society's work continues to be overseen by the Board of Governors and regular liaison in temis of strategic direction, and any matters critical to the Society's essential work, takes place between the Executive Secretary and the Honorary Officers appointed by the Board. A formal strategic plan will be considered by the Board at a later date.
THE PRESBYTERIAN CHILDREN'S SOCIETY GOVERNORS. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Disclosure of Infomiatlon to the audltors So far as each person who was a Gov8mor at the date of approving this report is aware, there is no relevant audit information, being information needed by the auditor in connection with preparing its report, of which the auditor is unaware. Each Governor has taken all steps that helshe is obliged to take as a Governor in order to make himselflher5elf aware of any relevant audit information and to establish that the auditor is aware of that information. Audltors Harbinson Mulholland have 8xpress8d their willingness to continue in office as auditors. A resolution proposing their reappointment will b8 consid8r8d at the Society's Annual General Meeting. The Govemors, report was approved by the Board of Governors. Mr J G Nicholson, BA (Hon8) Executive cretary
THE PRESBYTERIAN CHILDREN'S SOCIETY STATEMENT OF GOVERNORS. RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2023 Govemors are required to prepare financial statements for each financlal year that give a true and fair vlew of the state of affairs of the Society and of the net movements in funds of the Society for that period. In preparing those financial statements, the Govemors are required to: select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent- state whether applicable accounting standards have beèn followed, subject to any material d8partures dis¢losed and 8xplain8d in the financial statements; and prepare the financial statements on the goino conrn basis, unless it is inappropriate to presume that the Society will continue in business. The Governors are responsibl8 for keeping proper accounting records that are sufficient to show and explain the Society's transactions and disclose with reasonable accuracy at any time the financial position of the Society and enable them to ensure that the financial statements comply with the Charities A¢1 (Northern Ireland) 2008 the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) and the Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to Charities preparing their accounts in accordance wlth the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021 (Charities SORP (FRS 102>. They are also responsible for safeguarding th8 assets of the Society and hence, for taking reaso able leps for the pr ention and detection of fraud and other irregularlties. Mr l Mcminn, MBE Honorary Treasure Dated..
THE PRESBYTERIAN CHILDREN'S SOCIETY INDEPENDENT AUDITOR'S REPORT TO THE GOVERNORS OF THE PRESBYTERIAN CHILDREN'S SOCIETY Oplnlon We have audited the financial statements of The Presbyterian Children's Society (the 'Society') for the year ended 31 Dernber 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, induding significant accounting policie5. 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 Repothng Standard applicable in the UK and Republic of Iland (United Kingdom Generally ACpted Accounting practi). In our opinion, the financial statements= give a true and fair view of the state of the charity's affairs as at 31 December 2023 8nd of its incoming resources and application of resources, for the year then ended. have been properly prepared in accordance with United Kingdom Generally Acc6Pted Accounting Practice., and have been prepared in accordance with the requirements of the Charities Act (Nl) 2008. Basis for oplnlon We conducted our audit in accordance with Intematlonal Stand8rds on Auditing {UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditorfs r85ponsibilitie8 for th8 audit of the financial statements section of our report. We are independent of the Society 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 appTOPri8te to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the Govemors, use of going concern basis of accounting in Ihe prepar81ion of the financial statements is appropriate. Based on the work we have performed, w8 have not Identified any materlal uncertainties rel8llng to events or conditions that, individually or colleclively, may cast significant doubt on the charity's ability to conlinue as going concern for a period of at least twelve months from when the finanal statements are authorised for issua, Our responsibilities and the responsibilities of the Governor8 wilh resped to going concem are described in the relevant sections of this report. other Infomiatlon The other information comprises the information included in the annual report, other than the financial statements and our auditorfs report thereon, The Governors are responsible for the other information contained within the annual report. OUT opinion on the financial statements does not cover the other information and we do not express any fomi of assurance condusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge oblained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent malerial misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If. based on the work we have perfomied, we conclude that there is a material misstatemenl of this other information, we are required to report Ihal fact. We have nothing to report in this regard.
THE PRESBYfERIAN CHILDREN'S SOCIETY INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE GOVERNORS OF THE PRESBYTERIAN CHILDREN'S SOCIETY Matters on whlch we are requlred to report by exception We have nothing to report in respect of the following matters in relatlon to which the Charitie5 (Accounts and Reports) Regulations 2008 require us to report to you if, in our oplnlon.. the information given in the financial ststements is inconsistent in any material respect with the Governors, port; or sufficient accounting records have not been kept., or certain disclosures of trustees, remuneration specified by law are not made- or we have not received all the information and explanations we require for our audit. Responslbllities of Governors As explained more fully in the statement of Governors, responsibilities, the Govemors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Governors determine is necessary to enable the preparation of financial statements thet are free from material misslatement, whether due to fraud or error. In preparing the financial statements, the Governors are responsible for assessing the Society's ability to continue as a going concem, disclosing, as applicable, matters related to going concem and using the going concern basis of accounling unless the Govemors either intend to cease operations, or have no realisti'¢ altemative but to do so. Audltorf8 r••pon81bllltles for the audlt of tho flnancial 8t•t•ment8 Our objectives are to obtain reasonable assuran 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 nol a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when rt exists. Misstatements can arise from fraud or error and are considered material rf, 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, oullined above, to detect material misstalements in respect of irregularities, induding fraud. The extent to which our procedures are c8pable of detecting irregularities, including fraud, 18 detailed below.
THE PRESBYfERIAN CHILDREN'S SOCIETY INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE GOVERNORS OF THE PRESBYTERIAN CHILDREN'S SOCIETY Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: the engagement partner ensured that the engagement team collectively had the appropriate competence, Capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.. we identified the laws and regulations 8pplicable to the company through discussions with directors andlor senior management, and from our commercial knowledge and experience of the sector, We focused on specific laws and regulations which we considered rnay have a direct mat8rial effect on the financial statements or the operations of the company, including Charities Act (Nl) 2008, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation we assessed the extent of compliance with the laws and regu18tions identified above through making enquiries of manag6menl and inspecting legal Corresponden., and identified laws and regulations were communicated within the audit team regularfy and the team remained alert to instances of non-complian throughout the audit. We asses88d the susceptibility of th8 company's financial statements to material misstatement, induding obtaining an understanding of how fraud might occur, by.. making enqulrles of management as to where they considered there was susceptlbllity to fraud, thelr knowledge of actual, suspected and alleged fraud,. and considenng the internal contro18 in place to mrtigate risks of fraud and non-compllance with laws and Tegulations- To address the risk of fraud through management bias and override of controls, we: performed analytical procedures to identify any unusual or unexpected relationships., tested journal entries lo identify unusual transactions., assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 2 were indic8ts.ve of potential bias,. and Investigated the rationale behind significant or unusu81 tran8actions; In response to the rlsk of irregularities and non-compliance with laws and regulations, we designed procedures which Included, but were not limited to.. agreeing financial statement disdosures to underlying supporting documentatlon; reading the minutes of meetings of those charged with governance- enquiring of management as to actual and potential litigation and claims,. and reviewing correspondence with HMRC and the company's legal advisors., There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulation5 to enquiry of the directors and other management and the inspection of regulatory and legal COTrespondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from eor as they may involve deliberate concealment or collusion.
THE PRESBYTERIAN CHILDREN'S SOCIETY INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE GOVERNORS OF THE PRESBYfERIAN CHILDREN'S SOCIETY This report is made solely to the charity's members, as a b¢)Jy. in accordance with section 65 of the Charities Act (NI) 2008. Our audlt work has been undertaken so that we might state to the charity's members those matters we are required to stste to them in an auditor's 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 members as a body, for our audit work,for this report, or for the opinions we have fomied. Angala Craigan (Senlor Statutory Auditor} for and on bèhalf of Harblnson Mulholland Charterèd Accountants statutory Audltor Centrepolnt 24 Ormeau Avenue Co. Anlrim Northem Ireland 8T2 8HS 10-
THE PRESBYTERIAN CHILDREN'S SOCIETY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestricted Endowment funds funds 2023 2023 Total Total 2023 2022 Notss Income from: Donations and legaryes Charitable activities Investments 191.434 364,407 469,240 191,434 364,407 469,726 22,075 376,788 463,592 486 Totsl income and endowmonts 1,025,081 486 1,025,567 862,455 Ex endlture Raising funds Charitable adivities 71,644 823,324 71,644 823,324 73,341 830,054 Total r080urc•¥ •xp•nded 894,968 894,968 903,395 Net gainsl(losses) on investments 12 557,966 557,968 {1,618,443) Net movefflent In fund8 688,079 486 688,565 (1,659,383) Fund balances at 1 January 2023 11,692,960 22,523 11,715,483 13,374,866 Fund balances at 31 December 2023 12,381,039 23,009 12,404,048 11,715,483 The statement of financlal activlti&s includes all galns and losses recognlsed in th8 year. The statement of finanaal activlties includes all gains and losses recognised In the year. All income and expenditure derlve from continuing 8Ctivltles. The notes on pages 14 to 23 form part of these finanaal statements. 11
THE PRESBYTERIAN CHILDREN'S SOCIETY BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Notes Fixed assets Tangible assets Investments 13 14 13,913 11,998,263 16.239 11,500,094 12,012,176 11,516,333 Current assets Debtors Cash at bank and in hand 15 50,364 366,885 6.108 216,115 417,249 222,223 Credltors: amounts falling du• wlthln one year 16 {25,377> (23,073) Net current assets 391,872 199,150 Total a3¥ets10$8 currnnt Ilabilitioi 12,404.048 11,715,483 Capital lund$ Endowment funds 23,009 22,523 Income funds Unrestricted funds Revaluation reserve 12,378.762 2,277 11,690,683 2,277 12,381,039 11,692,960 12.404,048 11,715.483 The financial statements were approved by the Governors on . Rev Dr J l Thompson, MBE, TD, DL, BSC. BD. MTh, Dmin Presldent Mr l Mcminn, MBE Honorary Treasurer The notss on pages 14 to 23 fomi part of these financial statements. 12-
THE PRESBYTERIAN CHILDREN'S SOCIETY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Notes Cash flows from operatlng activltles Cash absorbed by operations 22 (378,755) (499,996) Investing activities Purchase of tangible fixed assets Purchase of investrnents Proceeds on disposal of investments Gainsl(losses) on investments Dividend8 and interest réceived (1,161) (12,463,978) 12,144,530 379,776 463,592 (13,238) 113,793 (40,756) 469,726 Net cash generatsd from Investing 4¢tlvitie8 529,525 522,759 Nat ¢•8h u80d In financing •ctlvltles Net in¢rea8e In ca8h and ca•h •qulvalents 150,770 22,763 Cash and cash equivalent8 at beginning of year 216,115 193,352 Cash and cash equlvolents at end of year 366,885 216,115 The notes on pages 14 to 23 form part of these financial statements. 13-
THE PRESBYTERIAN CHILDREN'S SOCIETY STATEMENT OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Critical accounting estimates and judgements In the application of the Society's accounting policies, the Govemors 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 esb'mate is revised where the revision affects only Ihat period, or in the perioé of the revision and future periods where the revision affects both currenl and fLrture perlods. Accountlng pollc188 Charity inforrnatlon The Presbyterian Children's Society is a charity registered In Northern Ireland, The registered offic8 is Glengall Exchange, 3 Glengall Street, Belfast, BT12 SAB. 2.1 Accounting convention The financial statements have been prepared in accordance with the Society's Constitution, the Charities Act (Northern Ireland) 2008 and "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing Iheir accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). {as amended for accounting periods commencing from 1 January 2016). The Society is a Public Benefit Entity as defined by FRS 102. The financial statements have departed from the Charities (Accounts 8nd Reports) Regulations (Northern Ireland) 2015 only to the extent required to provide a true and fair view. This departure has involved following the St8tement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is refeed to in the Regulations but which has slnce been withdrawn. The finandal statements are prepared in sterling, which is the functional currency of the Society. Monetary amounts in these financial statements are rounded to the nearest £. The financlal statements have bèen prepared under the historical cost convention, moélfied to indude the revaluation of freehold properties and to include investment properties and certaln financial instruments at fair value. The principal accounting pollcies adopted are set out below. 2.2 Golng con¢em At the time of approving the financial statements, the Govemors h8ve a reasonable expectation that the Society has adequate resources to continue in operational existence for the foreseeable future. Thus the Governors conlinue to adopt the going concern basis of accounting in preparing the financial stalements. 2.3 Charitable funds Unreslricted funds are available for use at the discretion of the Governors in furtherance of their charitable objectives unless the funds have been designated for other purpose5. In addition to expenditure on orphans and children, such funds may be held in order to finance capital investment and working capital. Designated funds are amounts set aside from unrestricted fijnds which have been 'earmarked' for particular purposes. Endowment funds are funds given lo the charity which must be held permanently by the charity, mainly as investrnenls. Income arising on the endowment fund may be used in accordance with the objects of the endowment. Any capital gains or losses arising on the investments form part of the fijnd. 14-
THE PRESBYTERIAN CHILDREN'S SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies {Contlnued) 2.4 Income Income is recognised when the Soci8ty is legalty entitled to it after any performance conditions have been met, the amounts can be measuréd reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Othèr donations are rècognised once the Society has been notified of the donation. unless performance conditions require deferral of the amount. Income tax recoverable in relation to donatlons received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognlsed on receipt or otherwise if the Society 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 conts'ngent asset. 2.5 Expenditure Expenditure is recognised once there is a legal or constructive obligatlon lo make a payment to a third party, it Is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under activity headings. Where costs cannot be directly attributed to particular headings they have all been allocated to activities on a basis consistent with the use of the resources. Management and administration cost5 are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. 2.6 Tanglble ffixed a88ets Tangible fixed assets are initially measured at cost and subsequenlly measured at cost or valuation, net of depreciation and any irnpairment losses. Depreciation is recognised so as to WTite off the cost or valuation of a88ets less their residual values over their useful lives on the following bases.. Office Equipment Computer Equipment Ground Rents 25010 Reducing Balance or 20¥0 Straight Line 50Yo Reduang Balan¢e or 200h Straight Llne The gain or loss arising on the dlsposal of an asset Is detemiined as the differ8nce between the sale proceeds and the carrying value of the asset, and Is recognised in the statement of finan¢lal activities. 2.7 Flxed asset investments Fixed asset investments are initially measured at Iransaction pri excluding transaction costs, and are subsequently measured at fair value at each reporting dale. Changes in fair value are recognised in net Incomel(expenditure) for the year. Transaction costs are expensed as incurred. 2.8 Impairnient of fixed assots At each reporting end date, the Society reviews the carrying amounts of its tsngible assets to detemiine 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 (if any). 2.9 Cash and cash equlvalents Cash and cash equivalents include cash in hand, deposits held at call with bank5, Other short-temi liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borr¢)wings in current liabilities. 15-
THE PRESBYTERIAN CHILDREN'S SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Accountlng policies Iconllnued 2.10 Financlal in8trumonts The Society has elected to apply the provisions of Section 11 'Basic Financial Instruments. and Section 12 'other Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments a recognised in the Society's balan sheet when the Society becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable Tight to sel off the recognised amounts and there is an intention to $8tt1e on a nel basis or to realise the asset and settle the liability simultaneously. Baslc flnancial a$$ets Basic financlal assets, which include debtors and cash and bank balances, are initially measured at transaction price includlng transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitute5 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 amortl8ed. Basic flnancial Ilabllities 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 obligalions lo pay for goods or sep4ices that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Derecognitlon ol flnanclal Ilabilities Financial liabilities are derecognised when the Society's contractual obllgations expire or are dlscharged or cancelled. 2.11 Employee benefits The cost of any unused holiday entitlement is recognised In the period in which the employ8e's seryices are reived. Termination b8nefits are recognised immediatety as an expense when the SoGiety 18 demonstrably committed to temiinate the employment of an employee or to provide temiination benefits. 2.12 Retiremont benefits Payments to defined contribution retirement benefit schemes are charged as an expense a5 they fall due. 16-
THE PRESBYTERIAN CHILDREN'S SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Donations and legacles Unrestri¢tsd funds Totsl 2023 2022 Donations and gifts Legacies receivable 3,502 187,932 5,348 16,727 191,434 22,075 Charitable •ctlvltle8 2023 2022 Subscrrptions Estate of James Bell Franas Curley Charitable Fund Presbyterian Fire Insurance Tru8t Rents 351,202 19 12,221 164 801 363,948 19 11,258 151 1,412 364,407 376,788 Inve8tment• Unr•strlctsd Endowmont funds funds Total Total 2023 2023 2023 2022 Income from Ilsted investments Interest receivable 464,514 4,726 486 465,1)JO 4.726 463,000 592 469,240 486 469,726 463,592 For the yoar ended 31 December 2022 463,106 486 463.592 17
THE PRESBYfERIAN CHILDREN'S SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Expendlture on raising funds Unrestrlcted Unrestrictsd fund¥ funds 2023 2022 Fundraising and publicity 11,199 9,056 Investrnent management 60,445 64,285 Total costs 71,644 73,341 Charltsble actlvltle8 2023 2022 Stsff costs Depreciation and impairment Quarterly regular grants Interim grants Summermlnter bonus Exception81 grants Sm811 groups grant scherne Pre$berian family holiday 88,585 2,324 450,426 16,985 153,170 58,857 4,918 10,775 84,375 2,094 437,560 23,220 150,590 76,130 15,446 786,040 789,415 Share of support costs (see note 8) Share of governance costs (see note 8) 29,965 7,319 38,167 2,472 823,324 830,054 18
THE PRESBYTERIAN CHILDREN'S SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Support costs Support Governance costs costs 2023 2022 Office rent GUencY loss Printing and ststionery Postage Telephone Insurance Miscellaneous office expen888 12,740 1.283 2,269 3,633 2.997 1,561 5,482 12,740 1,283 2,269 3,633 2,997 1.561 5,482 14,762 (1.948) 5,228 4,028 2,775 1,343 11,979 Audit fees Legal and professlon81 2,520 4,799 2.520 4,799 2,472 29,965 7.319 37,284 40,639 Analysed between Charitable activities 29,965 7,319 37,284 40,639 Govemor• None of the Governors (ar any persons connected with them) received any remuneration or benefits frorn the Society during the year. 10 Employees The average monthly number of employees during the yèar was: 2023 Number 2022 Number Ernployrnent costs 2023 2022 Wages and salaries Soaal security costs Other pension costs 67,730 13,118 7.737 63,834 12,902 7,639 88,585 84,375 There were no employees whose annual remuneralion was more than £60,000. 19-
THE PRESBYTERIAN CHILDREN'S SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 10 Employee8 (Continued) Remuneration of key management personnel The remuneralion of key management personnel is as follows. 2023 2022 Aggregate compensation 42,486 41,440 11 Tax•tlon The chaTIty Is exempt from taxation on Its activities because all ils income is applied for charitable purposes. 12 Net gain81{10••98) on Inv88tment• Unrestricted funds Totsl 2023 2022 Revaluation of investments 557,966 (1,618,443) 13 Tangible fixed assets Offlco 4ulpmant Cofflput•r Ground Ront• Equlpffl•nt Totsl Cost At 1 January 2023 Dlsposals 13,943 (1,468) 17,812 21,908 53,663 (1,468) At 31 D8cemb8r 2023 12,475 17,812 21,908 52,194 Dopreclation and Impalmient At 1 January 2023 Depreciation charged in the year Eliminated in respect of disposals 12,452 712 (1,488) 12,584 1,613 12,408 37.424 2,325 (1,468) At 31 December 2023 11,696 14.177 12,408 38,281 Carrying amount At 31 Dember 2023 779 3.634 9.500 13,913 At 31 Dember 2022 1,491 5,248 9,500 16,239 14 Fixed asset investments -20-
THE PRESBYfERIAN CHILDREN'S SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 14 Fixed asset inve6tmènts (Continued) Ustod Investments Cost or valuation At 1 January 2023 Additions Unrealised gains DIspo8als 11,500,094 13,238 598,723 (113,792) At 31 December 2023 11,998,263 Carrylng amount At 31 December 2023 11,998,263 At 31 December 2022 11,500,094 15 Debtorn 2023 2022 Amounts falllng due wlthin one year: Other debtors Prepayments and accrued income 48,835 1,729 4.570 1,538 50,364 6,108 16 Cmdltorn: amounts falllng duo wlthin on• year 2023 2022 Other credltors Ac¢ru81s and deferred income 398 24,979 23,073 25,377 23,073 17 Retlrement benefit 8cheme• Deflned contributlon scheme8 The Society operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Society in an independently administered fund. The charge to profft or loss in respect of defined contribution schemes was £7,737 (2022 - £7,639). 21
THE PRESBYTERIAN CHILDREN'S SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 18 Endonent funds Endowment funds represent assets which must be held permanently by the Society. Income arising on the endowment funds can be used in accordance with the objects of the Society and is included as unrestricted income. Any capitsl gains or losses arising on the assets form part of the fund. At 1 January 2023 Incoming rn8ource8 At31 December 2023 Pennanent ondowments 22,523 486 23,009 Prevlous year: At 1 January 2022 Incomlng re80urce8 At31 D•cember 2022 Pomianent endowment• 22,037 486 22,523 19 Unrogtricted funds The unrestricted funds of the charity comprise the unexpended balan8 of donations and grants which are not subjed to specific conditions by donors and grantors as lo how they may be used. These indude d88ignated funds which have been set aside out of unrestrictsd funds by the trustees for specific purposes. At 1 January 2023 Incoming rMource8 R•$ources expended Gain8 and 1088e8 At31 December 2023 General funds 11,692,960 1,025,081 (894,968) 557,966 12,381,039 Prevlous year: At 1 January 2022 Incoming resources Re3ourc85 expended Gains and 108ses At31 December 2022 General funds 13,352,829 861,969 (903,395) (1,618,443) 11,692,960 -22-
THE PRESBYTERIAN CHILDREN'S SOCIETY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 20 Analysi6 of not assets between funds Unrestrlcted Endowment funds funds 2023 2023 Total Total 2023 2022 Fund balances at 31 December 2023 are represented by: Tangible assets Investments Current assetsllliabilities) 13,913 11,998,263 391,872 13,913 16,239 11,998,263 11,500,094 391,872 199,150 12,404,048 12,404,048 11,715,483 21 Related party transactlons There were no dlsclosable related party transactions durlng the year (2022 - none). 22 C•$h generated from op•ratlon8 2023 2022 Surplusl{deficit) for the year 688,565 (1.659.383) Adjustments for.. Investment income recognised in statement of financial activities Fair value gains and108ses on investments Depredatlon and impainnent of tangible fixed assets (469,726) (557,966) 2,324 (463,592) 1,618,443 2,094 Movements in working capital: (Increase)Idecrease in debtors Increase in creditors 144,258) 2,304 1,411 1,031 Cash ab•orbed by operatl¢ns 1378,756) (499,996) -23-
THE PRESBYfERIAN CHILDREN'S SOCIETY DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023 This page does not fomi part of the statutory financial statements vthith are the subject of the independent auditols report. 2023 2022 Revenue Income Subscriptions Dividends and Interest Chari18ble rental income Bank Interest Estate Of James Bell Francis Curley Charitable Fund Pres. Fire Insurance Trust 351,201 465,000 802 4,726 19 12,221 164 363.948 463,000 1,412 592 19 11,258 151 834,133 840.380 Legacies and donation8 Legacies receivable Donations and gift8 187,932 3.502 16,727 191,434 22,075 Totsl Revenue Income 1,025,567 862,455 Revenue Expendlture Quarterly regular grants Interim grants Summermfjnter Bonus Exceptional grants Staff costs Miscellanèous office expenses Office rent Printing and stationery Fundraising Audil fees Postage Telephone Insurance Investment managemenl Depreciation and impaimient Presbylerian family holiday Small groups grant scheffle Currency loss Legal and professional 450,426 16,985 153,170 58,857 88,585 5,482 12.740 2,269 11,199 2,520 3,633 2,997 1.561 60.445 2,324 10,775 4,918 1,283 4,799 437,560 23,220 150,590 76,130 84,375 11,979 14,762 5,228 9,056 2,472 4,028 2,775 1,343 64,285 2,094 15,446 (1,948) Total Revenue Expendlture 894,968 903,395 Net incomlngl(outgoing) resources forthe year 130,599 (40,940) -24-