OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-03-31-accounts

Company Registration Number: NI026500 Charity Registration Number: 101482

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee) Annual Report and Audited Financial Statements

For the year ended 31 March 2023

CavanaghKelly Chartered Accountants and Statutory Auditors 36-38 Northland Row Dungannon Co Tyrone BT71 6AP

___________

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

CONTENTS For the year ended 31 March 2023

Page
General Information 3
Directors’ Report 4 – 9
Independent Auditor’s Report 10 – 13
Statement of Financial Activities 14
Statement of Financial Position 15
Statement of Cash Flows 16
Notes to the Financial Statements 17 – 29

____________

2

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

GENERAL INFORMATION

Board of Directors

Joseph Mark Moroney (resigned 31 January 2023) Padraig Canavan (resigned 31 January 2023) Patrick Gerald Cleary (resigned 12 May 2023) Steven Lindsay June Elizabeth Coates Jason Alexander McIntosh Valerie Jane Dinsmore Ciara Hanley Paul Anthony Healy Dr Catherine McDonnell (appointed 29 July 2022)

Company Secretary Chief Executive Registered Office

Company Registration Number Charity Registration Number Independent Auditors

James Kerr James Kerr Stable Lane and Mall Wall Bishop Street Within Derry/Londonderry BT48 6PU NI026500

101482

CavanaghKelly Chartered Accountants and Statutory Auditors 36 - 38 Northland Row Dungannon Co Tyrone BT71 6AP

Solicitors

Mark Reid Solicitor 2A Woodburn Park Lisnagelvin Waterside Derry/Londonderry BT47 5PS

Bankers

Allied Irish Banks Meadowbank 143-145 Strand Road Derry/Londonderry BT48 7TN

____________

3

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

DIRECTORS’ REPORT for the year ended 31 March 2023

The Directors, who are the trustees for the purpose of charity law, have pleasure in presenting their report and the audited financial statements of the charitable company for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities” (FRS 102), United Kingdom Generally Accepted Accounting Practice, the Charities Act (Northern Ireland) 2008 and the Companies Act 2006.

Reference and Administration Details

The reference and administration details of the charitable company are as shown on page 3.

The Chief Executive was responsible for the supervision of the day-to-day operations of the charitable company throughout the year.

Objectives and Activities

The Verbal Arts Centre (Northern Ireland) Limited which now trades under the name “Verbal” is recognised and acknowledged as the main centre for literature/language arts development and storytelling on the island of Ireland.

The Centre continues to promote creative activity under the organisational vision of "A world where every story matters".

The vision statement conveys the organisation's ambition and continuous direction of travel in respect of what it wishes to achieve.

Our vision places an emphasis on the fundamental tenet upon which Verbal is based which is that making and listening to stories are the primary tools available to all that we use to make meaning of the world around us.

Verbal actively works to address persistent resource and access disadvantages among deprived and marginalised communities (either geographic or of interest) which prevent, restrict or deny individuals and communities from telling their stories and having them heard compounding poverty, inequality, discrimination, injustice and isolation.

Verbal continues to focus on the intersectionality between marginalisation/vulnerability and mental health & emotional wellbeing. Our vision statement makes specific reference to wellbeing in its mission statement; “Using our unique multi-disciplinary approach to the art of storytelling Verbal works in partnership to enhance well-being among individuals & communities.”

The principles of partnership working and interdisciplinary delivery in the service of art, storytelling and wellbeing remain of central importance to Verbal.

We continue to use storytelling & story making either in the form of publishing, commissioning writers, creative production or reading aloud to provide those most disadvantaged, those who are seldomly listened, with the opportunity to:

  1. Challenge the assumptions and prejudices of everyday life;

  2. Raise questions and insights regarding the living conditions and circumstances of the vulnerable and marginalised;

  3. Encourage reconsideration of what is "taken for granted"; and

  4. Propose new and better ways to improve the quality of life of those most in need.

____________

4

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

DIRECTORS’ REPORT for the year ended 31 March 2023 (Continued)

Our focus on Mental health & emotional wellbeing through storytelling and bibliotherapy consists of several components, including: the ability to support participants to recognise different types of psychological distress, transfer through stories knowledge and beliefs about risk factors and causes as well as knowledge and beliefs about self-help interventions; and reflect upon attitudes which facilitate recognition and appropriate help-seeking.

Reflecting the uniqueness of the organisation 2022/23 saw Verbal continue to refine on an iterative basis how we develop and deliver the annual programme of work. We maintained the 3 different delivery categories below:

THEME Description
PREVENTION We use storytelling and creative activities to address the determinants of
mental health & wellbeing problems before a specific issue has been
identified in an individual orgroup.
INTERVENTION We use storytelling and creative activities which focus on reducing the
progress of poor mental health and improving emotional wellbeing.
RECOVERY We use storytelling and creative activities to empower and enable people
to self-manage their own mental and emotional wellbeing through
creative activities.

Our work is divided into 3 departments

  1. Adults & Communities

  2. Children & Young People

  3. Publishing

We deliver our work across 4 programmes

  1. Verbal Wellbeing

  2. Storyteller Recovery

  3. Story exchange

  4. Events & publishing

Verbal Wellbeing works with Primary school children (aged 4-11), Post Primary (aged 11-16 integrated into English curriculum) and Adult Community mental health and is a Mental Health Literacy/prevention programme.

Storyteller Recovery is a participation-based programme of multi-arts storytelling activities that combine language arts/verbal skills-based learning to create a dedicated 'safe' space for adults on a journey of recovery and wellbeing. Verbal also delivers as specialist Storyteller Recovery programme for ex-offenders.

Story Exchange works with social housing communities and aims to develop facilitated cross community conversations that support the development of shared community cohesion.

In relation to publishing & events the aims of our activities are to:

  1. support writers to showcase their work and develop new audiences/readerships

  2. commission new work from local writers (poetry & prose) for new audiences

  3. commission critical responses to reading

Verbal continues to publish the Honest Ulsterman magazine of new writing which is the longest continuous magazine of new writing in Europe starting in 1968. The magazine is published quarterly and showcases at least 50 literature-based articles/interviews/features per issue. Alongside an open submission poetry and short story element giving approximately 200 local writers per year, established & emerging a platform for their work. Verbal also produces and manages the Human archive which makes accessible previously published creative writing from many short run literary publications.

____________

5

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

DIRECTORS’ REPORT for the year ended 31 March 2023 (Continued)

Public Benefit Statement

The Directors of The Verbal Arts Centre (Northern Ireland) Limited confirm that they have complied with their duty under section 4(6) of the Charities Act (Northern Ireland) 2008 to have regard to the Charity Commission for Northern Ireland’s guidance on public benefit and that the public benefit requirement has informed the activities of the charitable company in the year ended 31 March 2023.

Achievements and Performance

A sample of achievement highlights in the year are noted below:

Activity levels for Verbal Wellbeing continued to grow across Northern Ireland, the Republic of Ireland and Great Britain.

This year working in close partnership with statutory bodies and public agencies, Verbal's annual programme was delivered with and to:

Verbal continues to accelerate its digital programme bringing on additional software development skills into the organisation. Along with this Verbal has created a stable digital delivery platform which is ready to roll out next year.

The level of internal Psychology and Literature expertise continues to grow with the recruitment of post-doctoral staff who are integrated with the existing creative team.

Storyteller Recovery was rolled out successfully as a regional programme of creative recovery based activity working right across Northern Ireland.

Story exchange worked intensively with multiple communities living on interface areas in Belfast.

Honest Ulsterman saw a year-on-year growth in its readership.

____________

6

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

DIRECTORS’ REPORT for the year ended 31 March 2023 (Continued)

Financial Review

Financial Performance

The financial performance was in line with the Board of Director’s expectations. The charitable company remains in a sound financial position at the year end. The results for the year are set out in detail on pages 14 to 29. The charitable company made net outgoing resources for the year of £119,515 (2022 – net incoming resources of £325,114).

At 31 March 2023, the total funds of the charity amounted to £1,643,176 (2022: £1,762,691) comprising restricted funds of £83,950 (2022: £117,227), designated funds of £300,000 (2022: £300,000) and unrestricted funds of £1,259,226 (2022: £1,345,464). Principal sources of funding and how this has supported the key objectives of the charitable company are disclosed in the notes to the financial statements.

Reserves Policy

The charitable company has free reserves of £374,631 (2022: £430,389) which represents 6 months (2022: 25 months) unrestricted expenditure on charitable activities. The Directors believe that it is prudent to work towards holding 6 months funding.

The main reason for holding reserves is to ensure that the charity has enough resources to fund the programmes it is supporting and to meet any emergencies that may arise. For this purpose the charitable company is holding £300,000 in designated funds (2022: £300,000).

Risk Management

The Board of Directors has conducted a review of the key risks facing the charity and has established a strategic plan and procedures to manage those risks. Continuous external risks in relation to funding have led to the development of a structured approach which allows for the longer-term diversification of funding and activities. Internal risks are minimised by the implementation of procedures for authorisation of all transactions and projects and to ensure consistent quality of delivery for all operational aspects of the charity.

Plans for Future Periods

The 5 key areas that the Directors are focused on:

  1. Create and implement the conditions for the digital product to thrive and co-exist alongside the charity’s programmes; specifically:

  2. Getting Verbal ready to manage the difficult transition period inherent in operating both a project led and product led organisation.

  3. Accelerate income diversity and growth of unrestricted income; specifically:

  4. Resourcing the distribution and dissemination of the digital delivery model (Verbal Wellbeing) to better meet existing needs and introduce the potential of scale.

  5. Provide clarity of management and accountability; specifically:

  6. Commencing a change process from project based to service delivery-based organisation to address sustainability challenges and maintain quality.

  7. Promote staff development and retention; specifically:

  8. Reviewing the organisation’s current delivery structure; and

  9. Continuing to build a high quality existing interdisciplinary staff team that supports the development of evidence based creative storytelling programming.

  10. Build and maintain a wide network of statutory and non-statutory partnerships; specifically:

  11. Continue to innovate using storytelling and psychology to bridge the gap in provision that exists for individuals and communities in respect of emotional wellbeing services.

____________

7

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

DIRECTORS’ REPORT for the year ended 31 March 2023 (Continued)

Structure, Governance and Management

Organisational Structure

The charitable company is a company limited by guarantee, not having a share capital.

The charitable company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.

In accordance with the Articles of Association, the members to retire by rotation shall be those who have been longest in office since their last election, and the relevant motion will be put forward at the Annual General Meeting. A retiring member shall be eligible for re-election.

The charitable company is governed by the Board of Directors. None of the Directors have any beneficial interest in the charitable company. Any person wishing to become a director must apply in writing prior to the annual general meeting. A vote is then taken at the annual general meeting as to whether that person is appointed.

Directors

The Directors during the year are the same as the Directors as listed on page 3.

Taxation Status

The charitable company is recognised as a charity by HM Revenue & Customs. Accordingly, the charitable company has availed of the exemptions contained in Chapter 3 Part 11 Corporation Taxes Act 2010 and Section 256 Taxation of Chargeable Gains Act 1992.

Directors' Responsibilities

The Directors are responsible for preparing the Directors’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Directors to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The Directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Funds held as custodian trustees on behalf of others

The charity holds no funds as custodian- trustees on behalf of others.

____________

8

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

DIRECTORS’ REPORT for the year ended 31 March 2023 (Continued)

Statement of Disclosure of Information to Auditor

In so far as the Directors, who held office at the date of approval of these financial statements, are aware:

Small Companies Exemption

This report is prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

This report was approved by the Board of Directors on 27 October 2023 and signed on its behalf by:

Registered office:

Stable Lane and Mall Wall Bishop Street Within Derry/Londonderry BT48 6PU

_______ James Kerr Company Secretary

____________

9

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

Company Registration Number: NI026500 Charity Registration Number: 101482

INDEPENDENT AUDITORS’ REPORT to the Directors of The Verbal Arts Centre (Northern Ireland) Limited for the year ended 31 March 2023

Opinion

We have audited the financial statements of The Verbal Arts Centre (Northern Ireland) Limited ('the charitable company') for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charitable company’s Directors, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s Directors those matters we are required to state 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 charitable company and the charitable company’s Directors as a body, for our audit work, for this report, or for the opinions we have formed.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with 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

We have nothing to report in respect of the following matters in relation to which ISAs (UK) require us to report to you where:

____________

10

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

INDEPENDENT AUDITORS’ REPORT to the Directors of The Verbal Arts Centre

(Northern Ireland) Limited for the year ended 31 March 2023 (Continued)

Other Information

The directors are responsible for the other information. The other information comprises the information included in the Directors’ Report, other than the financial statements and our Auditor's Report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Directors

As explained more fully in the Directors’ Responsibilities Statement, the directors (who are also the trustees of the charitable company for the purpose of charity law), 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 Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intends to liquidate the charitable company or to cease operations, or has no realistic alternative but to do so.

____________

11

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

INDEPENDENT AUDITORS’ REPORT to the Directors of The Verbal Arts Centre (Northern Ireland) Limited for the year ended 31 March 2023 (Continued)

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in 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. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

The audit response to risks identified included:

____________

12

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

INDEPENDENT AUDITORS’ REPORT to the Directors of The Verbal Arts Centre (Northern Ireland) Limited for the year ended 31 March 2023 (Continued)

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Mr. Ryan Falls FCA (Senior Statutory Auditor) For and on behalf of CAVANAGHKELLY

Chartered Accountants and Statutory Auditors 36 – 38 Northland Row Dungannon Co. Tyrone BT71 6AP

Date: 27 October 2023

____________

13

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES

(Including an income & expenditure account) For the year ended 31 March 2023

Note
INCOME AND
ENDOWMENTS
Charitable Activities
3
Other Trading Activities
3
TOTAL INCOME AND
ENDOWMENTS
RESOURCES
EXPENDED
Charitable Activities
4
TOTAL RESOURCES
EXPENDED
Net incoming/
(outgoing) resources
for the year
Transfers between
funds
Balance brought
forward
Balance carried
forward		 Unrestricted
Restricted
Designated
Total
Unrestricted
Restricted
Designated
Total
Funds
Funds
Funds
Funds
Funds
Funds
Funds
Funds
2023
2023
2023
2023
2022
2022
2022
2022
£
£
£
£
£
£
£
£
622,094
381,696
-
1,003,790
549,588
892,163
-
1,441,751
12,176
-
-
12,176
3,008
-
-
3,008
634,270
381,696
-
1,015,966
552,596
892,163
-
1,444,759
(757,943)
(377,538)
-
(1,135,481)
(208,970)
(910,675)
-
(1,119,645)
(757,943)
(377,538)
-
(1,135,481)
(208,970)
(910,675)
-
(1,119,645)
(123,673)
4,158
-
(119,515)
343,626
(18,512)
-
325,114
37,435
(37,435)
-
-
(244,835)
(55,165)
300,000
-
1,345,464
117,227
300,000
1,762,691
1,246,673
190,904
-
1,437,577
1,259,226
83,950
300,000
1,643,176
1,345,464
117,227
300,000
1,762,691

The above Statement of Financial Activities includes all information as required to be disclosed by the Companies Act 2006. All of the activities of the charitable company are classed as continuing.

The Statement of Financial Activities includes all gains and losses recognised during the year.

The notes on pages 17 to 29 form an integral part of these financial statements.

________________________

14

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

STATEMENT OF FINANCIAL POSITION as at 31 March 2023

Note
Fixed Assets
Property, Plant and Equipment
8
Current Assets
Receivables
9
Cash and Cash Equivalents
Payables: amounts falling due within
one year
10
Net Current Assets
Net Assets
11
REPRESENTED BY:
Unrestricted Funds
12
Restricted Funds
12
Designated Funds
12
Total Funds
12		 2023
2022
£
£
884,595
915,075
327,092
611,169
601,234
315,137
928,326
926,306
(169,745)
(78,690)
758,581
847,616
1,643,176
1,762,691
£
£
1,259,226
1,345,464
83,950
117,227
300,000
300,000
1,643,176
1,762,691

These financial statements have been prepared in accordance with the provisions applicable to the small companies’ regime within Part 15 of the Companies Act 2006.

The notes on pages 17 to 29 form an integral part of the financial statements.

These financial statements were approved and authorised for issue by the Board of Directors on 27 October 2023 and signed on their behalf by:

Director Director Dr Catherine McDonnell Paul Anthony Healy

Company Registration Number: NI026500 Charity Registration Number: 101482

___________

15

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

STATEMENT OF CASH FLOWS For the year ended 31 March 2023

Cash flows from operating activities
(Deficit)/Surplus for the year
Adjustments for:
Depreciation
Movements in working capital:
Movement in receivables
Movement in payables
Net cash generated/(used in) from operating
activities
Cash flows from investing activities
Payments to acquire property, plant and equipment
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of
financial year
Cash and cash equivalents at end of financial
year
Cash and cash equivalents consists of:
Cash at bank and in hand		 2023
2022
£
£
(119,515)
325,114
42,015
46,682
(77,500)
371,796
284,077
(297,535)
91,055
(43,042)
375,132
(340,577)
297,632
31,219
(11,535)
(16,953)
286,097
14,266
315,137
300,871
601,234
315,137
2023
2022
£
£
601,234
315,137

____________

16

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

1. GENERAL INFORMATION

The Verbal Arts Centre (Northern Ireland) Limited is a charitable company limited by guarantee incorporated in Northern Ireland. In the event of the charitable company being wound up, the liability in respect of the guarantee is limited to £1 per member of the charitable company. The address of the registered office is as shown on page 3.

The charitable company constitutes a public benefit entity as defined by FRS 102.

The financial statements are stated in £ sterling which is the functional currency of the charitable company.

2. ACCOUNTING POLICIES

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the charitable company’s financial statements.

2.1 Statement of Compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charites: Statement of Recommended Practice (SORP) applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) effective 1 January 2019 (Second Edition), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act (Northern Ireland) 2008 and the Companies Act 2006.

2.2 Basis of Preparation

The financial statements have been prepared under the historical cost convention unless otherwise stated in the relevant accounting policy. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the charitable company's financial statements.

2.3 Going concern

The financial statements are prepared on a going concern basis. Taking account of the risk review undertaken by the directors, they do not consider there to be a risk to the going concern status of the charitable company.

2.4 Income and Endowments

(i)Other Trading Activities

Voluntary income includes incoming resources from gifts, donations and grants and is recognised in full in the Statement of Financial Activities when receivable. Activities for generating funds are commercial activities which are recognised as earned when the related goods and services are provided.

____________

17

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 March 2023

2. ACCOUNTING POLICIES (Continued)

2.4 Income and Endowments (Continued)

(ii)Charitable Activities

Incoming resources from charitable activities includes income received under contract or where entitlement to grant funding is subject to specific performance conditions. Income will only be recognised as the specified goods and services have been provided by the charity. Grant income included in this category provides funding to support projects and is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

2.5 Resources Expended

Expenditure is recognised when a liability is incurred. Contractual arrangements and performance related grants are recognised as goods and services are supplied. Where costs cannot be directly attributed to a particular heading they have been allocated to activities on a basis consistent with use of resources. Staff costs and overhead expenses are allocated to activities on the basis of staff time spent on those activities.

(i)Charitable Activities

This compromises all the resources applied by the charity in undertaking its work to meet its charitable objectives. Charitable activities will include the costs of governance arrangements which relate to the general running of the charity.

(ii)Support Costs

Support costs include the central office functions such as general management, payroll administration, budgeting and accounting, information technology, human resources and financing. These have been allocated to charitable activities, costs of generating funds and governance costs on a basis consistent with the use of these resources.

2.6 Fund Accounting

The charity has two types of funds for which it is responsible at the year end:

Unrestricted Funds – Funds which are expendable at the discretion of the directors in furtherance of the objectives of the charity. In addition, funds may be held in order to finance capital investment and working capital.

Restricted Funds – Income received for specific purposes. Such purposes are within the overall aims of the charity.

Designated Funds – Funds that have been specifically earmarked by the charity towards its reserves policy. The charity aims to maintain reserves of up to six months expenditure.

____________

18

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 March 2023

2. ACCOUNTING POLICIES (Continued)

2.7 Property, Plant and Equipment and Depreciation

All fixed assets are initially recorded at cost. The cost of fixed assets is their purchase cost, together with any incidental costs of acquisition.

Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:

Fixtures, fittings and equipment 25% Straight line Buildings 2% Straight line Motor vehicles 25%/33% Straight line

2.8 Trade and Other Receivables

Trade and other receivables are initially recorded at fair value and thereafter stated at cost less impairment losses for bad and doubtful debts.

2.9 Trade and Other Payables

Trade and other payables are initially recognised at fair value and thereafter stated at cost.

2.10 Taxation

As a charity, the charitable company is not liable to Corporation Tax.

2.11 Pension

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2.12 Financial instruments

The charitable company have chosen to adopt Sections 11 and 12 of FRS102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed by group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

____________

19

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 March 2023

2. ACCOUNTING POLICIES (Continued)

2.12 Financial instruments (continued)

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the Statement of Financial Activities.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and overdrafts and hire purchase contracts 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

2.13 Critical accounting estimates and judgements

In the application of the charitable company’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revisions affects both current and future periods.

____________

20

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (Continued) For the Year Ended 31 March 2023

3. INCOME AND ENDOWMENTS

Income from Charitable Activities
Arts Council Northern Ireland:
-
Core Funding
-
Equipment funding
-
Covid Funding
-
Arts & Older People
-
REAP
Derry City Council:
- Core Funding
SEUPB Peace IV (NIHE)
SEUPB Peace IV (Extern)
Children in Need
HSE Bibliography Storyteller
PHA Health Integration
Sustaining Communities
The Community Foundation – Prevention
Services
The Next Chapter
Trinity College
Garfield Weston
Culture Night
Foyle Foundation
Verbal Wellbeing:
-
Western Area
-
Belfast Area
Intervention Services
Recovery Services
Reading Rooms
Other
Total Income from Charitable Activities		 Unrestricted
Restricted
Total
Funds
Funds
Funds
2023
2023
2023
£
£
£
-
208,320
208,320
-
11,450
11,450
-
-
-
-
4,493
4,493
-
8,797
8,797
-
17,000
17,000
-
-
-
-
-
-
-
9,830
9,830
-
-
-
-
-
-
-
-
-
-
49,717
49,717
-
-
-
-
3,203
3,203
-
40,000
40,000
-
300
300
-
20,000
20,000
-
4,293
4,293
-
4,293
4,293
498,697
-
498,697
68,850
-
68,850
-
-
-
54,547
-
54,547
622,094
381,696
1,003,790

____________

21

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (Continued) For the Year Ended 31 March 2023

3. INCOME AND ENDOWMENTS (Continued)

Other Trading Activities
Education Fees
Room Hire
Equipment Hire
Catering and Refreshments
Media
Other Income
Donations
Total Income from Other Trading
Activities
Total Income		 Unrestricted
Restricted
Total
Funds
Funds
Funds
2023
2023
2023
£
£
£
1,600
-
1,600
5,186
-
5,186
255
-
255
55
-
55
4,178
-
4,178
2
-
2
900
-
900
12,176
-
12,176
634,270
381,696
1,015,966

____________

22

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (Continued) For the Year Ended 31 March 2023

3. INCOME AND ENDOWMENTS (Continued)

COMPARATIVE INCOME AND ENDOWMENTS

Income from Charitable Activities
Arts Council Northern Ireland:
-
Core Funding
-
Equipment funding
-
Covid Funding
-
Arts & Older People
-
REAP
Derry City Council:
- Core Funding
SEUPB Peace IV (NIHE)
SEUPB Peace IV (Extern)
Children in Need
HSE Bibliography Storyteller
PHA Health Integration
Sustaining Communities
The Community Foundation – Prevention
Services
The Next Chapter
Trinity College
Garfield Weston
Culture Night
Foyle Foundation
Verbal Wellbeing:
-
Western Area
-
Belfast Area
Intervention Services
Recovery Services
Reading Rooms
Other
Total Income from Charitable Activities		 Unrestricted
Restricted
Total
Funds
Funds
Funds
2022
2022
2022
£
£
£
-
208,320
208,320
-
13,796
13,796
50,000
-
50,000
-
-
-
-
-
-
-
17,000
17,000
-
259,884
259,884
-
237,437
237,437
-
39,467
39,467
-
2,797
2,797
-
24,795
24,795
-
20,680
20,680
-
49,787
49,787
-
18,200
18,200
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
249,040
-
249,040
210,548
-
210,548
40,000
-
40,000
-
-
-
549,588
892,163
1,441,751

____________

23

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (Continued) For the Year Ended 31 March 2023

3. INCOME AND ENDOWMENTS (Continued)

COMPARATIVE INCOME AND ENDOWMENTS

Other Trading Activities
Education Fees
Room Hire
Equipment Hire
Catering and Refreshments
Media
Other Income
Donations
Total Income from Other Trading
Activities
Total Income
4. RESOURCES EXPENDED
Charitable Activities
Wages and Salaries
Project Facilitator Fees
Travel and Subsistence
Arts and Education Program Costs
Membership and Subscriptions
Printing and Stationery
Print and design costs
Telephone and Postage
Sundry expenses
Fundraising and Advertising
Provisions and catering costs
Depreciation		 Unrestricted
Restricted
Total
Funds
Funds
Funds
2022
2022
2022
£
£
£
(121)
-
(121)
980
-
980
130
-
130
1,844
-
1,844
-
-
-
(36)
-
(36)
211
-
211
3,008
-
3,008
552,596
892,163
1,444,759
Unrestricted
Funds
2023
£
Restricted
Funds
2023
£
Total
Funds
2023
£
278,558
296,675
575,233
252,303
-
252,303
13,604
2,301
15,905
29,269
20,342
49,611
8,315
-
8,315
6,447
22
6,469
434
597
1,031
6
8,997
9,003
35,583
-
35,583
-
75
75
447
-
447
42,015
-
42,015
666,981
329,009
995,990

____________

24

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (Continued) For the Year Ended 31 March 2023

4. RESOURCES EXPENDED (CONTINUED)

Support Costs
Recruitment Costs
Staff Training and Development Costs
Rent and Rates
Insurance
Computer Costs
Heat and Light
Cleaning
Repairs and Maintenance
Bank fees and Interest
Consultancy
Legal and Professional fees
Audit and Accountancy
Bad Debt expense
Total Expenses
Comparative Resources Expended
Charitable Activities
Wages and Salaries
Project Facilitator Fees
Travel and Subsistence
Arts and Education Program Costs
Membership and Subscriptions
Printing and Stationery
Print and design costs
Telephone and Postage
Sundry expenses
Fundraising and Advertising
Provisions and catering costs
Depreciation		 Unrestricted
Funds
2023
£
Restricted
Funds
2023
£
Total
Funds
2023
£
2,492
43
2,535
7,312
495
7,807
2,314
-
2,314
5,230
7,331
12,561
27,757
5,545
33,302
8,304
11,613
19,917
3,492
-
3,492
-
17,702
17,702
1,078
-
1,078
31,085
800
31,885
3,019
-
3,019
1,879
5,000
6,879
(3,000)
-
(3,000)
90,962
48,529
139,491
757,943
377,538
1,135,481
Unrestricted
Funds
2022
£
Restricted
Funds
2022
£
Total
Funds
2022
£
90,110
531,989
622,099
31,070
-
31,070
5,776
9,854
15,630
184
114,161
114,345
-
6,688
6,688
3,295
2,133
5,428
39
1,551
1,590
-
5,503
5,503
6,724
26,175
32,899
8,890
335
9,225
1,093
-
1,093
33,871
12,811
46,682
181,052
711,200
892,252

____________

25

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (Continued) For the Year Ended 31 March 2023

4. RESOURCES EXPENDED (CONTINUED)

Comparative Resources Expended

Support Costs
Recruitment Costs
Staff Training and Development Costs
Rent and Rates
Insurance
Computer Costs
Heat and Light
Cleaning
Repairs and Maintenance
Bank fees and Interest
Consultancy
Legal and Professional fees
Audit and Accountancy
Bad Debt Expense
Total Expenses		 Unrestricted
Funds
2022
£
Restricted
Funds
2022
£
Total
Funds
2022
£
-
4,783
4,783
1,077
2,492
3,569
-
1,133
1,133
-
10,423
10,423
2,243
22,849
25,092
2,897
-
2,897
-
5,497
5,497
10
12,455
12,465
-
1,231
1,231
14,947
131,880
146,827
-
93
93
-
6,639
6,639
6,744
-
6,744
27,918
199,475
227,393
208,970
910,675
1,119,645

5. NET INCOME FOR THE YEAR

Net income is stated after charging:

Depreciation
Auditors’ remuneration
6. AUDITORS' REMUNERATION
Auditor’s remuneration
– audit services		 2023
2022
£
£
42,015
46,682
6,879
6,639
2023
2022
£
£
6,879
6,639
6,879
6,639

____________

26

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (Continued) For the Year Ended 31 March 2023

7. STAFF COSTS AND EMPLOYEE BENEFITS

The average number of persons employed by the charitable company during the year was 18 (2022: 28).

The total staff costs and employee benefits were as follows:

Gross wages and salaries
Employers’ national insurance contributions
Pension		 2023
2022
£
£
502,955
558,102
43,867
52,977
21,401
11,020
568,222
622,099

One employee of the charity earned between £60,000-£70,000 in the period in question.

7.1. DIRECTORS’ REMUNERATION

The Directors received nor waived any remuneration or any other benefits during the year.

Travel expenses of £nil (2022: £Nil) were reimbursed to Directors for out of pocket costs.

8. PROPERTY, PLANT AND EQUIPMENT

Cost
At 31 March 2022
Additions
At 31 March 2023
Depreciation
At 31 March 2022
Charge for year
At 31 March 2023
Carrying amount
At 31 March 2023
At 31 March 2022		 Buildings
£
Fixtures,
fittings and
equipment
£
Motor
vehicles
£
Total
£
1,680,074
227,356
85,290
1,992,720
-
11,535
-
11,535
1,680,074
238,891
85,290
2,004,255
780,722
211,633
85,290
1,077,645
33,601
8,414
-
42,015
814,323
220,047
85,290
1,119,660
865,751
18,844
-
884,595
899,352
15,723
-
915,075

____________

27

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) For the Year Ended 31 March 2023

9. RECEIVABLES

9. RECEIVABLES
Trade receivables
Other receivables
Prepayments
10. PAYABLES: amounts falling due within one year
Trade payables
Other payables
Accruals
Other taxes and social securities		 2023
2022
£
£
27,090
142,405
294,465
462,394
5,537
6,370
327,092
611,169
2023
2022
£
£
138,071
10,933
772
-
19,431
50,993
11,471
16,764
169,745
78,690

11. ANALYSIS OF NET ASSETS

Fixed Assets
Current Assets
Current Liabilities
Net Assets		 Restricted
Funds
Unrestricted
Funds
Designated
Funds
Total
£
£
£
£
27,810
856,785
-
884,595
56,140
572,186
300,000
928,326
-
(169,745)
-
(169,745)
83,950
1,259,226
300,000
1,643,176

____________

28

The Verbal Arts Centre (Northern Ireland) Limited (Charitable Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) For the Year Ended 31 March 2023

12. ANALYSIS OF FUNDS

Opening
Balance
£
Income
£
Expenditure
£
Transfer
Between
funds
Closing
Balance
£
Arts Council Northern Ireland
-
Core Funding
-
208,320
(199,906)
(8,414)
-
-
Equipment Funding
2,606
11,450
(3,086)
-
10,970
-
H & S Funding
9,738
-
(3,980)
-
5,758
-
Arts & Older People
-
4,493
(4,502)
9
-
-
REAP
-
8,797
-
-
8,797
Derry City Council
-
Core Funding
-
17,000
(17,000)
-
-
The Reading Agency
1,778
-
-
(1,778)
-
The Next Chapter
12,437
-
(11,071)
(1,366)
-
Children In Need
41,767
9,830
(32,005)
(19,592)
-
HSE Bibliography
Storyteller
2,797
-
-
(2,797)
-
PHA Health Integration
111
-
-
(111)
-
TCF Prevention Services
45,993
49,717
(71,022)
-
24,688
Trinity College
-
3,203
(18)
(3,185)
-
Garfield Weston
-
40,000
(18,417)
-
21,583
Culture Night
-
300
(99)
(201)
-
Foyle Foundation
-
20,000
(8,110)
-
11,890
Verbal Wellbeing
-
Western Area
-
4,293
(4,161)
-
132
-
Belfast Area
-
4,293
(4,161)
-
132
Total Restricted
Funds
117,227
381,696
(377,538)
(37,435)
83,950
Unrestricted Funds
1,345,464
634,270
(757,943)
37,435
1,259,226
Designated Funds
300,000
-
-
-
300,000
Total
1,762,691
1,015,966
(1,135,481)
-
1,643,176		 Opening
Balance
£
Income
£
Expenditure
£
Transfer
Between
funds
Closing
Balance
£
Arts Council Northern Ireland
-
Core Funding
-
208,320
(199,906)
(8,414)
-
-
Equipment Funding
2,606
11,450
(3,086)
-
10,970
-
H & S Funding
9,738
-
(3,980)
-
5,758
-
Arts & Older People
-
4,493
(4,502)
9
-
-
REAP
-
8,797
-
-
8,797
Derry City Council
-
Core Funding
-
17,000
(17,000)
-
-
The Reading Agency
1,778
-
-
(1,778)
-
The Next Chapter
12,437
-
(11,071)
(1,366)
-
Children In Need
41,767
9,830
(32,005)
(19,592)
-
HSE Bibliography
Storyteller
2,797
-
-
(2,797)
-
PHA Health Integration
111
-
-
(111)
-
TCF Prevention Services
45,993
49,717
(71,022)
-
24,688
Trinity College
-
3,203
(18)
(3,185)
-
Garfield Weston
-
40,000
(18,417)
-
21,583
Culture Night
-
300
(99)
(201)
-
Foyle Foundation
-
20,000
(8,110)
-
11,890
Verbal Wellbeing
-
Western Area
-
4,293
(4,161)
-
132
-
Belfast Area
-
4,293
(4,161)
-
132
Total Restricted
Funds
117,227
381,696
(377,538)
(37,435)
83,950
Unrestricted Funds
1,345,464
634,270
(757,943)
37,435
1,259,226
Designated Funds
300,000
-
-
-
300,000
Total
1,762,691
1,015,966
(1,135,481)
-
1,643,176
-
Core Funding
-
Equipment Funding
-
H & S Funding
-
Arts & Older People
-
REAP
Derry City Council
-
Core Funding
The Reading Agency
The Next Chapter
Children In Need
HSE Bibliography
Storyteller
PHA Health Integration
TCF Prevention Services
Trinity College
Garfield Weston
Culture Night
Foyle Foundation
Verbal Wellbeing
-
Western Area
-
Belfast Area
Total Restricted
Funds
Unrestricted Funds
Designated Funds
Total
117,227
381,696
(377,538)
(37,435)
83,950
1,345,464
634,270
(757,943)
37,435
1,259,226
300,000
-
-
-
300,000
1,762,691
1,015,966
(1,135,481)
-
1,643,176

13. RESTRICTED FUND DESCRIPTIONS

The Verbal Arts Centre (Northern Ireland) Limited has a wide portfolio of funded projects. In terms of funding value, the main funding sources/projects have been: -

Arts Council Northern Ireland:

Principal funding received from the Arts Council of Northern Ireland Annual Funding Programme. This fund relates mainly to the general running and administrative core costs.

Derry City Council:

This is a fixed level of core funding awarded by Derry City Council on an annual basis which provides contribution towards specifically defined operational costs.

14. CONTINGENT LIABILITIES

A contingent liability exists to repay grants received should certain conditions not be fulfilled by the charitable company.

____________

29