## **Company Registration Number: NI033956 Charity Number: 101504** 

## **An Droichead** 

**(A company limited by guarantee, not having a share capital)** 

**Annual Report and Audited Financial Statements** 

**for the financial year ended 31 March 2025** 

**Finegan Gibson Ltd Chartered accountants and Registered auditors 2nd Floor Causeway Tower 9 James Street South Belfast Antrim BT2 8DN** 



## **An Droichead** 

**(A company limited by guarantee, not having a share capital) CONTENTS** 

||**Page**|
|---|---|
|Reference and Administrative Information|3|
|Trustees' Annual Report|4 - 9|
|Statement of Trustees' Responsibilities|10|
|Independent Auditor's Report|11-14|
|Statement of Financial Activities|15|
|Balance Sheet|16|
|Statement of Cash Flows|17|
|Notes to the Financial Statements|18 - 25|



**2** 



## **An Droichead (A company limited by guarantee, not having a share capital) REFERENCE AND ADMINISTRATIVE INFORMATION** 

**Trustees** Ms L Glenn Mr C McGuigan (Appointed 26 June 2024) M B Duffy (Resigned 1 June 2024) Mr E Dawson (Appointed 20 January 2025) Ms M Engman Ms M Canning (Resigned 24 April 2024) Mr S Carson (Appointed 24 February 2025) Mr P Ó DuinnÍn **Company Secretary** Mr P Ó DuinnÍn **Charity Number in Northern Ireland** 101504 **Company Registration Number** NI033956 **Registered Office and Principal Address** Larionad An Droichid, 20 Cooke Street, Belfast BT7 2EP Northern Ireland **Auditors** Finegan Gibson Ltd Chartered accountants and Registered auditors 2nd Floor Causeway Tower 9 James Street South Belfast Antrim BT2 8DN **Principal Bankers** Bank of Ireland 1 Donegall Square South Belfast BT1 5LR Northern Ireland 

## **Solicitors** 

Hewitt Gilpin Solicitors Thomas House, 14-16 James Street South Belfast BT2 7GA Northern Ireland 

**3** 



## **An Droichead (A company limited by guarantee, not having a share capital) TRUSTEES' ANNUAL REPORT** 

for the financial year ended 31 March 2025 

The trustees present their Trustees' Annual Report, combining the Directors' Report and Trustees' Report, and the audited financial statements for the financial year ended 31 March 2025. 

The financial statements are prepared in accordance with the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 

The Trustees' Report contains the information required to be provided in the Trustees' Annual Report under the Statement of Recommended Practice (SORP) guidelines. The trustees of the charity are also charity trustees for the purpose of charity law and under the charity's constitution are known as members of the board of trustees. 

In this report the trustees of An Droichead present a summary of its purpose, governance, activities, achievements and finances for the financial year 31 March 2025. 

The charity is a registered charity and hence the report and results are presented in a form which complies with the requirements of the Companies Act 2006 and, although not obliged to comply with the Statement of Recommended Practice applicable in the UK and Republic of Ireland FRS 102, the organisation has implemented its recommendations where relevant in these financial statements. 

## **Principal Activity** 

Operation of arts facilities 

## **Mission, Objectives and Strategy** 

## **Objectives** 

The company’s objects are specifically restricted to the promotion of the Irish language, arts and culture, the promotion and advancement of education through the medium of Irish language, and the promotion of the benefit of the inhabitants (hereinafter called “the beneficiaries”) who are resident in the South and East Belfast areas in particular but not exclusively (hereinafter Called “the area of benefit”) without distinction of age, gender, disability, sexual orientation, nationality, ethnic identity, political or religious opinion, by associating the statutory authorities, community and voluntary organisations and the inhabitants in a common effort to advance education and the promotion of Irish language and culture and to provide facilities in the interests of social welfare for recreation or other leisure-time occupation, with the object of improving the conditions of life for the said beneficiaries and in particular: 

A) to promote the benefit of the public and advance education in all matters relating to the Irish language, arts, music, crafts and Irish cultural heritage; 

B) to establish or secure or assist in the securing of the establishment of arts and cultural facilities and to maintain or manage or co-operate with any statutory authority in the maintenance and management of such facilities for activities promoted by the company in furtherance of the above objects; 

C) to maintain, develop and manage or co-operate with any local education authority or statutory body in the maintenance and management of pre-school, primary school, afterschool and youth facilities educational and recreational facilities through the medium of Irish in the interests of social welfare for children, young people and their parents; 

D) to provide and facilitate training for parents and carers of children in child development, parenting and other appropriate subjects; 

E) to promote or assist in promoting capacity building programmes and projects for the benefit of the inhabitants within the area of benefit who have need of such assistance as a result of their youth, age, disability or infirmity, or social and economic circumstances, in an effort to increase the abilities, skills, self-esteem and self-confidence of such communities in the area of benefit so that their conditions of life may be improved; 

F) to advance any other exclusively charitable purpose as the directors may from time to time decide in accordance with the law of charity. 

The policies adopted in furtherance of these objects are: 

1. Inform statutory and voluntary agencies, government, the Irish speaking community, and the general public locally, regionally nationally and internationally and act as a forum for the promotion of discussion of research regarding all issues relevant to the Irish language and to groups, projects and initiatives in the area of benefit. 

2. Provision of daycare, playgroup and afterschool facilities onsite through the medium of the Irish language. 

3. Monitor and support the provision of educational research, facilities and practical assistance for Irish medium education, arts, community work and training projects in the area of benefit in the furtherance of the objects. 

4. Provide, maintain and equip or assist in the provision, maintenance or equipment of facilities designed to carry out the objects of An Droichead. 

5. Promote and carry out or assist in promoting and carrying out research, surveys, investigations and translations and publish the useful results thereof to the research, collate and disseminate information from statutory, private sector or other sources relevant to the Irish language organisations and the general public, locally, regionally nationally and 

**4** 



## **An Droichead** 

## **(A company limited by guarantee, not having a share capital) TRUSTEES' ANNUAL REPORT** 

for the financial year ended 31 March 2025 

internationally. 

6. Organise or assist in organising meetings, lectures, classes, exhibitions, drama, talks, workshops, book launches, pamphlets, leaflets or other documents or communications in furtherance of objects. 

7. Procure to be written and printed, published, issued, distributed and circulated reports, periodicals, books, pamphlets, leaflets or other documents or communications in furtherance of objects. 

8. Obtain, collect and receive money by way of grants, donations, bequests, legacies or other lawful method, and make or disburse grants or loans for charitable purposes in furtherance of the above objects provided that An Droichead shall not undertake any substantial permanent trading activities. 

9. Purchase, take on lease or hire, or otherwise acquire any real personal property and any rights or privileges necessary for the promotion of the above objects and construct, maintain or alter any buildings or erections which An Droichead may think necessary for the promotion of the objects. 

10. Make any regulations for any property which may be so acquired. 

11. Subject to any consents which may for the time being be required by law, sell, let, mortgage, dispose of or turn to account all or any of the property assets of An Droichead with a view to the furtherance of its objects. 

12. Subject to such consents as may be required by law, receive money on deposit or loan, or borrow or raise money in such a manner as An Droichead shall think fit to charge any part of the property of An Droichead with repayment of the money so borrowed. 

13. Invest the moneys of An Droichead not immediately required for the furtherance of the objects in or upon such investments, securities or property as may be thought fit, subject nevertheless to such consents (if any) as may for the time being be imposed or required by law. 

14. Recruit and train volunteers with relevant skills to carry out the objects of An Droichead. 

15. Employ and pay any person (not being a member of the management committee) to supervise, organise and carry out the work of An Droichead and make all reasonable and necessary provision for the payment of remuneration to employees. 

16. Encourage and organise co-operation between An Droichead and government agencies, local authorities, statutory bodies and voluntary and community bodies with similar aims in any part of the world in pursuit of the objects of An Droichead. 

The Trustees confirm that they have had regard to the Charity Commission guidance on public benefit when reviewing the organisation’s aims and objectives and in planning activities and services during the year. 

Despite increasing operational and financial pressures during the reporting period, An Droichead continued to provide significant educational, cultural and community benefit within South Belfast and beyond. 

## Irish Language, Arts and Cultural Activities 

The organisation continued to deliver Irish language classes, workshops, arts, cultural and heritage activities throughout the year. These included Irish language learning opportunities for adults and young people, traditional music activity, arts and cultural events and the ongoing Belfast Trad Trail programme. The organisation also continued to support cultural participation and community engagement through partnership working, performances, workshops and public events. 

## Childcare and Family Support 

An Droichead continued to operate childcare provision and family support services during the year. Demand for childcare services remained strong, reflecting the ongoing need for accessible childcare and family support provision within the local community. 

Services provided support for children and families while also contributing to the wider social and economic wellbeing of the area. 

## Community Development and Engagement 

The organisation continued to support community participation, inclusion and wellbeing through a range of communityfocused programmes and partnerships. The organisation worked collaboratively with funders, community organisations, artists, facilitators and local stakeholders throughout the year in order to maximise community benefit and programme delivery. 

These activities directly furthered the charity’s objects by advancing education, supporting Irish language and cultural participation, providing childcare and family support, and promoting community wellbeing. 

Trustees wish to acknowledge the commitment and contribution of staff, volunteers, facilitators and partners who continued to support the organisation’s activities during this period. 

**Structure, Governance and Management** 

**5** 



## **An Droichead** 

## **(A company limited by guarantee, not having a share capital) TRUSTEES' ANNUAL REPORT** 

for the financial year ended 31 March 2025 

An Droichead Limited is a charitable company limited by guarantee and operates as a registered charity in Northern Ireland. The organisation exists to promote Irish language, cultural, childcare and community development activities within South Belfast and beyond.  The charity is governed by a Board of Trustees/Directors who are responsible for the strategic direction, governance and financial oversight of the organisation. Trustees are appointed in accordance with the governing documents of the company. New Trustees are appointed in accordance with the Articles of Association and receive induction appropriate to their role. The Board is reviewing trustee training and governance development as part of the current governance strengthening process. 

Day-to-day management is delegated to senior management, with strategic, financial and governance decisions reserved to the Board. Key management remuneration is reviewed and approved by Trustees having regard to role responsibilities, organisational affordability and relevant sector benchmarks. An Droichead continued to operate a broad range of childcare, cultural, Irish language and community services during the year through a combination of staff, facilitators, volunteers and partnership working. 

During the year, the organisation continued to experience increasing operational complexity associated with the scale of programme delivery, staffing, financial administration and management across multiple funding streams and service areas. Trustees recognise that governance, financial management systems and reporting arrangements during the period were not sufficiently robust for an organisation of the scale and complexity of An Droichead’s operations. While services remained active and community engagement remained strong, underlying structural financial pressures and operating deficits were not adequately identified or addressed during the period due to weaknesses in financial oversight, reporting systems and organisational controls. 

The organisation experienced increasing financial and operational pressures arising from: 

- Rising payroll and operational costs; 

- Inflationary pressures impacting utilities and service delivery; 

- Increased complexity of programme and staffing structures; 

- Limited unrestricted income to support core infrastructure; 

- Dependence on restricted project funding; 

- Delays and uncertainty in relation to funding streams. 

The seriousness of these issues became fully apparent during 2025/2026. In response, the Board initiated a comprehensive programme of financial review, governance strengthening and organisational recovery. This included: 

- Commissioning independent external financial and insolvency advice; 

- Increased frequency of Board and finance oversight meetings; 

- Strengthened scrutiny of management accounts and cashflow; 

- Review of organisational structures and expenditure; 

- Development of a formal recovery and restructuring plan; 

- Commencement of governance and policy review processes; 

• Planning for upgraded financial management systems and reporting arrangements. Trustees recognise the seriousness of the issues identified and are fully committed to implementing the governance, financial and organisational improvements required to support the long-term sustainability of the organisation. 

Trustees recognise that while operational delivery and community impact remained strong during the period, governance systems, financial controls and management reporting arrangements were insufficiently developed to identify and address emerging structural financial issues at an early stage. These weaknesses became increasingly apparent during the latter part of the financial year and into 2025/2026, leading Trustees to initiate a programme of organisational review, financial recovery planning and governance strengthening. 

## **Review of Achievements and Performance** 

During the year An Droichead continued to deliver a significant range of childcare, cultural, Irish language, arts and community services despite an increasingly difficult operational and financial environment. The organisation maintained strong levels of programme activity and community engagement across its core areas of work. Childcare services continued to operate at high levels of demand, while Irish language and arts programming remained active and well supported by participants and audiences. 

During the year the organisation: 

- Supported more than 500 participants annually across programmes and services; 

- Provided Irish-language childcare and family services supporting over 100 families; 

- Delivered daycare provision for approximately 134 children; 

- Supported more than 350 adult learners annually through Irish language classes; 

- Continued to provide GCSE and A-Level Irish language support; 

- Sustained youth, arts, music and cultural programming throughout the year; 

- Continued delivery of the Belfast Trad Trail and related cultural activity; 

- Maintained 35 local jobs within the organisation. 

The Belfast Trad Trail continued to contribute positively to the cultural life and tourism offer of Belfast while Irish 

**6** 



## **An Droichead** 

## **(A company limited by guarantee, not having a share capital) TRUSTEES' ANNUAL REPORT** 

for the financial year ended 31 March 2025 

language classes, workshops and cultural events continued to attract strong community participation. The organisation also maintained important partnerships with statutory, charitable and community sector stakeholders throughout the year. Trustees recognise that the continued strength of participation and community demand demonstrates the important role An Droichead plays within South Belfast as a community, childcare, Irish-language and cultural organisation. 

## **Financial Review** 

The results for the financial year are set out on page 15 and additional notes are provided showing income and expenditure in greater detail. 

## **Income** 

The financial statements for the year indicate total incoming resources of approximately £1 million alongside continued significant expenditure associated with programme delivery, staffing and operational costs. 

## **Expenditure** 

During the year the organisation experienced increasing financial pressure linked to rising payroll costs, inflationary pressures and insufficient unrestricted income to support infrastructure and management costs across the organisation. Trustees recognise that structural operating deficits developed over a period of time and that existing financial systems and oversight arrangements during the year did not provide sufficiently robust financial monitoring, forecasting or early warning mechanisms. 

## **Financial Results** 

At the end of the financial year the charity has assets of £486,179 (2024 - £537,942) and liabilities of £390,054 (2024 - £396,458). The net assets of the charity have decreased by £(45,359). 

## **Review of the Financial Position** 

As the scale of the financial pressures became clearer during 2025/2026, Trustees commissioned independent external financial and insolvency advice in order to obtain a clearer assessment of the organisation’s financial position and sustainability requirements. This review process included: 

- Review of cashflow and creditor positions; 

- Analysis of historic deficits; 

- Review of organisational structures and expenditure; 

- Consideration of restructuring and recovery options. 

While the organisation faced significant financial challenge, Trustees remained focused on protecting core services, supporting staff and maintaining essential community provision while corrective actions were developed. 

## **Reserves Position and Policy** 

## **Reserves Policy** 

The organisation’s unrestricted reserves position remains under significant pressure as a result of historic operating deficits and ongoing cashflow challenges. Trustees recognise the importance of rebuilding unrestricted reserves over time in order to improve organisational resilience and sustainability. The Board intends to implement a strengthened reserves policy as part of the wider governance and financial recovery programme. 

The financial statements have been prepared on a going concern basis. In reaching this conclusion, Trustees considered: 

- Current and projected cashflow forecasts; 

- Ongoing discussions with funders and stakeholders; 

- Planned restructuring and recovery measures; 

- Strengthened financial oversight arrangements; 

- Actions already initiated during 2025/2026 to reduce expenditure and improve financial sustainability. 

Trustees acknowledge that material uncertainties exist in relation to future funding and financial sustainability. However, the Board believes that the actions currently being implemented provide a reasonable basis for preparing the financial statements on a going concern basis. 

The organisation’s priorities for the coming period are focused on financial recovery, governance strengthening and the long-term sustainability of core services. Key priorities include: 

- Stabilising organisational finances and cashflow; 

**7** 



## **An Droichead** 

## **(A company limited by guarantee, not having a share capital) TRUSTEES' ANNUAL REPORT** 

for the financial year ended 31 March 2025 

- Strengthening governance and financial oversight; 

- Implementing improved financial management systems; 

- Achieving a sustainable breakeven operating position; 

- Protecting key childcare, Irish language, arts and cultural services; 

- Diversifying income streams and strengthening unrestricted income; 

- Recruiting permanent senior leadership arrangements; 

- Continuing community and cultural programme delivery. 

Trustees remain committed to the long-term future of An Droichead and to the continued delivery of important community, childcare, Irish language and cultural services within South Belfast. 

The Board recognises that significant organisational change and financial recovery work will be required during the coming period. Trustees are committed to ensuring that these changes are implemented responsibly, transparently and in a manner consistent with the organisation’s charitable purposes and community values. The recovery process is also intended to restore confidence among staff, service users, partners, funders and the wider South Belfast community. 

## **Trustees** 

The trustees who served throughout the financial year, except as noted, were as follows: 

Ms L Glenn Mr C McGuigan (Appointed 26 June 2024) M B Duffy (Resigned 1 June 2024) Mr E Dawson (Appointed 20 January 2025) Ms M Engman Ms M Canning (Resigned 24 April 2024) Mr S Carson (Appointed 24 February 2025) Mr P Ó DuinnÍn 

In accordance with the Constitution, the trustees retire by rotation and, being eligible, offer themselves for re-election. 

The secretary who served during the financial year was: 

Mr P Ó DuinnÍn 

## **Compliance with Sector-Wide Legislation and Standards** 

The charity engages pro-actively with legislation, standards and codes which are developed for the sector. An Droichead subscribes to and is compliant with the following: 

- The Companies Act 2006 

- The Charities SORP (FRS 102) 

## **Risk Management and Governance Review** 

Trustees recognise that the organisation operates within an increasingly challenging financial and funding environment. The principal risks identified by the Board include: 

- Financial sustainability and cashflow risk; 

- Dependence on restricted funding streams; 

- Rising staffing and operational costs; 

- Governance and compliance risk; 

- Workforce stability and recruitment challenges. 

The Board recognises that governance and financial oversight arrangements during the reporting period were not sufficiently robust and that organisational controls require significant strengthening. In response, Trustees initiated a programme of governance and organisational review during 2025/2026. This includes: 

- Increased Board and finance oversight meetings; 

- Strengthened financial monitoring and reporting; 

- External professional financial and restructuring advice; 

- Governance and policy review; 

- Development of improved financial systems; 

- Review of organisational structures and staffing; 

- Diversification of income streams and funding approaches. 

Board attendance, reporting arrangements and accountability expectations are also being strengthened as part of the governance review process. 

Trustees also commenced a review of organisational policies and procedures including: 

- Financial procedures; 

- Delegated authority arrangements; 

**8** 



## **An Droichead** 

## **(A company limited by guarantee, not having a share capital)** 

## **TRUSTEES' ANNUAL REPORT** 

for the financial year ended 31 March 2025 

- Procurement controls; 

- Risk management frameworks; 

- Governance reporting processes. 

Trustees are committed to ensuring that lessons learned from this period result in stronger governance, financial discipline and organisational sustainability going forward. 

## **The Auditors** 

Finegan Gibson Ltd, (Chartered accountants), were appointed auditors by the trustees to fill the casual vacancy and they have expressed their willingness to continue in office in accordance with the provisions of Section 485 of the Companies Act 2006. 

## **Approved by the Board of Trustees on 18 May 2026 and signed on its behalf by:** 


## **Mr C McGuigan** 

## **Trustee** 

**9** 



## **An Droichead** 

## **(A company limited by guarantee, not having a share capital) STATEMENT OF TRUSTEES' RESPONSIBILITIES** 

for the financial year ended 31 March 2025 

The trustees, who are also directors of An Droichead for the purposes of company law, are responsible for preparing the financial statements in accordance with applicable law and regulations. 

Company law requires the trustees as the directors to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" Section 1A (Small Entities). Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. 

In preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and accounting estimates that are reasonable and prudent; 

- state whether the financial statements have been prepared in accordance with applicable accounting standards, identify those standards, and note the effect and the reasons for any material departure from those standards; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

As explained in note 4, state whether the applicable in the UK and Republic of Ireland FRS 102 has been followed; 

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006 and. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

In so far as the trustees are aware: 

- there is no relevant audit information (information needed by the charity's auditor in connection with preparing the auditor's report) of which the charity's auditor is unaware, and 

- the trustees have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. 

## **Approved by the Board of Trustees on 18 May 2026 and signed on its behalf by:** 


**Mr C McGuigan Trustee** 

**10** 



## **INDEPENDENT AUDITOR'S REPORT to the Members of An Droichead** 

**(A company limited by guarantee, not having a share capital)** 

## **Report on the audit of the financial statements** 

## **Disclaimer of opinion** 

We were engaged to audit the charity financial statements of An Droichead ('the charity') for the financial year ended 31 March 2025 which comprise the Statement of Financial Activities (incorporating an Income and Expenditure Account), the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including the summary of significant accounting policies set out in note 2. 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", applying Section 1A of that Standard and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS 102. 

Because of the significance of the possible impact of the uncertainties, described in the Basis for disclaimer of opinion on financial statements paragraph, to the financial statements, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Accordingly we do not express an opinion on the financial statements. 

In all other respects, in our opinion the financial statements have been properly prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act (Northern Ireland) 2008. 

## **Basis for disclaimer of 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 charity 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 the Provisions Available for Audits of Small Entities, in the circumstances set out in Note 5 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We do not believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for an opinion 

In seeking to form an opinion on the financial statements we considered the implications of the significant uncertainties disclosed in the financial statements concerning the following matters: 

- The audit evidence available to us was limited because we were unable to obtain all the necessary letters of offers from funding bodies to support of £166k of income. 

   - We were unable to obtain sufficient audit evidence in relation to outstanding Day Care Fee income at the reporting period, due to gaps in controls and debtor management systems. As a result no debtors for Day Care Fees have been included at the reporting date. 

- Included within the Other Creditor balance is £26,038 relating to potential tax and NIC liabilities associated with casual wage payments. We have been unable to confirm the accuracy, valuation and completeness of this balance. Included within the Balance Sheet is a deferred capital grant amounting to £171,897. We have been unable to obtain sufficient audit evidence to support the basis for this capital grant deferral. 

- Again within the balance sheet there are tangible assets amounting to £467,905 for which we have been unable to obtain sufficient audit evidence around the valuation due to both a lack of detailed tangible asset register and no recent inventory or valuation. 

There is potential for the uncertainties to interact with one another such that we may have been unable to obtain sufficient appropriate audit evidence regarding the possible effect of the uncertainties taken together. 

**11** 



## **INDEPENDENT AUDITOR'S REPORT to the Members of An Droichead** 

**(A company limited by guarantee, not having a share capital)** 

## **Material uncertainty related to going concern** 

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have identified material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from the date when the financial statements are authorised for issue. We draw attention to note 4 in the financial statements, which indicates that a material uncertainty exists that may cast doubt on the charity's ability to continue as a going concern. 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 

## **Emphasis of Matter** 

In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosure made in note 4 to the financial statements concerning the charity's ability to continue as a going concern. The charity made a deficit of £45,359, with the deficit arising from unrestricted funds of £45,359, leaving a balance at the year-end in unrestricted reserves of £96,125 which is below the reserves policy. This condition, along with other matters explained in note 4 to the financial statements, indicates the existence of a material uncertainty which may cast significant doubt about the charity's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the company was unable to continue as a going concern. 

## **Other Information** 

The other information comprises the information included in the annual report other than the financial statements and our Auditor's Report thereon. The trustees are responsible for the other information contained within the annual report. 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. 

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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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. 

## **Opinion on other matter prescribed by the Companies Act 2006 and the Charities Act (Northern Ireland) 2008** 

Notwithstanding our disclaimer of an opinion on the financial statements, in our opinion the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements. 

## **Matters on which we are required to report by exception** 

In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Annual Report. 

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

- returns adequate for our audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of trustees' remuneration specified by law are not made; or 

- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the Trustees' Annual Report. 

## **Responsibilities of trustees for the financial statements** 

As explained more fully in the Statement of Trustees' Responsibilities set out on page 10, the trustees 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 they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

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

## **Auditor's responsibilities for the audit of the financial statements** 

Our responsibility is to conduct an audit of the charity's financial statements in accordance with ISAs (UK) and to issue an auditor's report, however, because of the matters described in the Basis for disclaimer of opinion paragraph, we 

**12** 



## **INDEPENDENT AUDITOR'S REPORT to the Members of An Droichead** 

## **(A company limited by guarantee, not having a share capital)** 

were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements. 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following: 

•the nature of the industry and sector, control environment and business performance including the design of the remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets; 

•results of our enquiries of management about their own identification and assessment of the risks of irregularities; 

- •any matters we identified having obtained and reviewed documentation of their policies and procedures relating to: 

•identifying, evaluating and complying with laws and regulations and whether management were aware of any instances of non-compliance; 

•detecting and responding to the risks of fraud and whether management have knowledge of any actual, suspected or alleged fraud; 

•the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations. 

•the matters discussed among the audit engagement team including significant component audit teams and relevant internal specialists, including tax and valuations specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. 

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. 

We also obtained an understanding of the legal and regulatory frameworks in operation, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included ongoing compliance with the UK Companies Act and tax legislation. 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental for their ability to operate or to avoid a material penalty. 

## **Further information regarding the scope of our responsibilities as auditor** 

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also: 

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the charity's internal control. 

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by trustees. 

- Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditor's Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditor's Report. However, future events or conditions may cause the charity to cease to continue as a going concern. 

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 

**13** 



## **INDEPENDENT AUDITOR'S REPORT to the Members of An Droichead** 

## **(A company limited by guarantee, not having a share capital)** 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 

## **The purpose of our audit work and to whom we owe our responsibilities** 

This report is made solely to the charity's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and the Charities Act (Northern Ireland) 2008. Our audit work has been undertaken so that we might state to the charity's members 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 charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed. 


## **__________________________________ Paul Dolan FCA (Senior Statutory Auditor) for and on behalf of FINEGAN GIBSON LTD** 

Chartered accountants and Registered auditors 2nd Floor Causeway Tower 9 James Street South Belfast Antrim BT2 8DN 

## **18 May 2026** 

**14** 



## **An Droichead** 

## **(A company limited by guarantee, not having a share capital) STATEMENT OF FINANCIAL ACTIVITIES** 

## **(Incorporating an Income and Expenditure Account)** 

for the financial year ended 31 March 2025 

|||**Unrestricted**|**Restricted**|**Total**|Unrestricted|Restricted|Total|
|---|---|---|---|---|---|---|---|
|||**Funds**|**Funds**|**Funds**|Funds|Funds|Funds|
|||**2025**|**2025**|**2025**|2024|2024|2024|
||**Notes**|**£**|**£**|**£**|£|£|£|
|**Income**||||||||
|Donations and legacies|**6.1**|**8,107**|**-**|**8,107**|4,369|-|4,369|
|Charitable activities||||||||
|Grant Income|**6.2**|**443,863**|**474,476**|**918,339**|523,184|411,709|934,893|
|Other trading activities|**6.3**|**148,179**|**-**|**148,179**|12,920|-|12,920|
|||───────|───────|───────|───────|───────|───────|
|**Total income**||**600,149**|**474,476**|**1,074,625**|540,473|411,709|952,182|
|||───────|───────|───────|───────|───────|───────|
|**Expenditure**||||||||
|Charitable activities|**7.1**|**641,651**|**478,333**|**1,119,984**|698,637|411,709|1,110,346|
|||───────|───────|───────|───────|───────|───────|
|**Net income/(expenditure)**||**(41,502)**|**(3,857)**|**(45,359)**|(158,164)|-|(158,164)|
|Transfers between funds||**(3,857)**|**3,857**|**-**|-|-|-|
|||───────|───────|───────|───────|───────|───────|
|**Net movement in funds for**||**(45,359)**|**-**|**(45,359)**|(158,164)|-|(158,164)|
|**the financial year**||||||||
|**Reconciliation of funds:**||||||||
|Total funds beginning of the|**20**|**141,484**|**-**|**141,484**|299,648|-|299,648|
|year||||||||
|||───────|───────|───────|───────|───────|───────|
|**Total funds at the end of**||**96,125**|**-**|**96,125**|141,484|-|141,484|
|**the year**||||||||
|||═══════|═══════|═══════|═══════|═══════|═══════|



The Statement of Financial Activities includes all gains and losses recognised in the financial year. All income and expenditure relate to continuing activities. 

The notes on pages 18 to 25 form part of the financial statements 

**15** 



## **An Droichead** 

## **(A company limited by guarantee, not having a share capital) Company Number: NI033956 BALANCE SHEET** 

as at 31 March 2025 

|||**2025**|2024|
|---|---|---|---|
||**Notes**|**£**|£|
|**Fixed Assets**||||
|Tangible assets|**12**|**467,905**|488,766|
|||───────|───────|
|**Current Assets**||||
|Debtors|**13**|**-**|46,737|
|Cash at bank and in hand|**14**|**18,274**|2,439|
|||───────|───────|
|||**18,274**|49,176|
|||───────|───────|
|**Creditors: Amounts falling due within one year**|**15**|**(87,872)**|(71,170)|
|||───────|───────|
|**Net Current Liabilities**||**(69,598)**|(21,994)|
|||───────|───────|
|**Total Assets less Current Liabilities**||**398,307**|466,772|
|**Creditors**||||
|Amounts falling due after more than one year|**16**|**(130,285)**|(137,285)|
|**Deferred Capital Grant**|**18**|**(171,897)**|(188,003)|
|||───────|───────|
|**Total Net Assets**||**96,125**|141,484|
|||═══════|═══════|
|**Funds**||||
|General fund (unrestricted)||**96,125**|141,484|
|||───────|───────|
|**Total funds**|**20**|**96,125**|141,484|
|||═══════|═══════|



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

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", applying Section 1A of that Standard. 

## **Approved by the Board of Trustees and authorised for issue on 18 May 2026 and signed on its behalf by** 


## **________________________________ Mr C McGuigan Trustee** 

The notes on pages 18 to 25 form part of the financial statements 

**16** 



## **An Droichead STATEMENT OF CASH FLOWS** 

for the financial year ended 31 March 2025 

|||**2025**|2024|
|---|---|---|---|
||**Notes**|**£**|£|
|**Cash flows from operating activities**||||
|Net movement in funds||**(45,359)**|(158,164)|
|Adjustments for:||||
|Depreciation||**20,861**|20,973|
|Interest payable and similar expenses||**13,058**|12,538|
|||───────|───────|
|||**(11,440)**|(124,653)|
|Movements in working capital:||||
|Movement in debtors||**46,737**|136,648|
|Movement in creditors||**24,626**|1,700|
|||───────|───────|
|Cash generated from operations||**59,923**|13,695|
|Interest paid||**(13,058)**|(12,538)|
|||───────|───────|
|Net cash generated from operating activities||**46,865**|1,157|
|||───────|───────|
|**Cash flows from financing activities**||||
|Repayment of long term loan||**(7,000)**|(7,201)|
|Deferred Capital Grant||**(16,106)**|(16,106)|
|||───────|───────|
|Net cash used in financing activities||**(23,106)**|(23,307)|
|||───────|───────|
|**Net increase/(decrease) in cash and cash equivalents**||**23,759**|(22,150)|
|**Cash and cash equivalents at the beginning of the year**||**(5,485)**|16,665|
|||───────|───────|
|**Cash and cash equivalents at the end of the year**|**14**|**18,274**|(5,485)|
|||═══════|═══════|



**17** 



## **An Droichead** 

## **(A company limited by guarantee, not having a share capital) NOTES TO THE FINANCIAL STATEMENTS** 

for the financial year ended 31 March 2025 

## **1. GENERAL INFORMATION** 

An Droichead is a company limited by guarantee incorporated in Northern Ireland. The registered office of the charity is Larionad An Droichid,, 20 Cooke Street,, Belfast, BT7 2EP, Northern Ireland which is also the principal place of business of the charity. The financial statements have been presented in Pound (£) which is also the functional currency of the charity. 

## **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** 

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

## **Basis of preparation** 

The financial statements have been prepared  under the historical cost convention, modified to include certain items at fair value. The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland FRS 102", applying Section 1A of that Standard. 

As permitted by the Companies Act 2006, the charity has varied the standard formats in that act for the Statement of Financial Activities and the Balance Sheet. Departures from the standard formats are to comply with the requirements of the Charities SORP and are in compliance with section 4.7, 10.6 and 15.2 of that SORP. 

## **Statement of compliance** 

The financial statements of the charity for the financial year ended 31 March 2025 have been prepared on the going concern basis and in accordance with the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland FRS 102", applying Section 1A of that Standard. 

## **Fund accounting** 

The following are the categories of funds maintained: 

## **Restricted funds** 

Restricted funds represent income received which can only be used for particular purposes, as specified by the donors. Such purposes are within the overall objectives of the charity. 

## **Unrestricted funds** 

Unrestricted funds consist of General and Designated funds. 

▪ General funds represent amounts which are expendable at the discretion of the board, in furtherance of the objectives of the charity. 

▪ Designated funds comprise unrestricted funds that the board has, at its discretion, set aside for particular purposes. These designations have an administrative purpose only, and do not legally restrict the board's discretion to apply the fund. 

## **Income** 

Income is recognised by inclusion in the Statement of Financial Activities only when the charity is legally entitled to the income, performance conditions attached to the item(s) of income have been met, the amounts involved can be measured with sufficient reliability and it is probable that the income will be received by the charity. 

## **Income from charitable activities** 

Income from charitable activities include income earned from the supply of services under contractual arrangements and from performance related grants which have conditions that specify the provision of particular services to be provided by the charity. Income from government and other co-funders is recognised when the charity is legally entitled to the income because it is fulfilling the conditions contained in the related funding agreements. Where a grant is received in advance, its recognition is deferred and included in creditors. Where entitlement occurs before income is received, it is accrued in debtors. 

Grants from governments and other co-funders typically include one of the following types of conditions: 

▪ Performance based conditions: whereby the charity is contractually entitled to funding only to the extent that the core objectives of the grant agreement are achieved. Where the charity is meeting the core objectives of a grant agreement, it recognises the related expenditure, to the extent that it is reimbursable by the donor, as 

**18** 



continued 

## **An Droichead** 

## **(A company limited by guarantee, not having a share capital) NOTES TO THE FINANCIAL STATEMENTS** 

for the financial year ended 31 March 2025 

income. 

▪Time based conditions: whereby the charity is contractually entitled to funding on the condition that it is utilised in a particular period. In these cases the charity recognises the income to the extent it is utilised within the period specified in the agreement. 

In the absence of such conditions, assuming that receipt is probable and the amount can be reliably measured, grant income is recognised once the charity is notified of entitlement. 

Grants received towards capital expenditure are credited to the Statement of Financial Activities when received or receivable, whichever is earlier. 

## **Expenditure** 

Expenditure is analysed between costs of charitable activities and raising funds. The costs of each activity are separately accumulated and disclosed, and analysed according to their major components. Expenditure is recognised when a legal or constructive obligation exists as a result of a past event, a transfer of economic benefits is required in settlement and the amount of the obligation can be reliably measured. Support costs are those functions that assist the work of the charity but cannot be attributed to one activity. Such costs are allocated to activities in proportion to staff time spent or other suitable measure for each activity. 

## **Judgements and key sources of estimation uncertainty** 

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 

## **Going Concern** 

The charity has unrestricted reserves at 31 March 2025 of £96,125. The trustees have considered this position and have provided further information on note 4 of these financial statements. 

## **Tangible fixed assets and depreciation** 

Tangible fixed assets are stated at cost or at valuation, less accumulated depreciation. The charge to depreciation is calculated to write off the original cost or valuation of tangible fixed assets, less their estimated residual value, over their expected useful lives as follows: 

Land and Buildings 2% Straight line Fixtures and fittings 25% Straight line Computers 25% Reducing Balance 

## **Debtors** 

Debtors are recognised at the settlement amount due after any discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Income recognised by the charity from government agencies and other co-funders, but not yet received at financial year end, is included in debtors. 

## **Cash at bank and in hand** 

Cash at bank and in hand comprises cash on deposit at banks requiring less than three months notice of withdrawal. 

## **Taxation and deferred taxation** 

No current or deferred taxation arises as the charity has been granted charitable exemption. Irrecoverable valued added tax is expensed as incurred. 

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the charity's taxable income and its results as stated in the financial statements. 

Deferred tax is measured on an undiscounted basis at the tax rates that are anticipated to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. 

**19** 



continued 

## **An Droichead (A company limited by guarantee, not having a share capital) NOTES TO THE FINANCIAL STATEMENTS** 

for the financial year ended 31 March 2025 

## **Pensions** 

The charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charity. Annual contributions payable to the charity's pension scheme are charged to the income and expenditure account in the period to which they relate 

## **4. GOING CONCERN** 

The financial statements have been prepared on the going concern basis which assumes that the charity will continue in operational existence of the foreseeable future. The validity of this assumption depends upon the continued support from the charity's funders. In the opinion of the Trustees, the charity is currently a going concern, however if unsuccessful in securing sufficient core funding, their ability to continue as a going concern may be uncertain. The charity made a deficit of £45,359 in the year, with the deficit arising from unrestricted funds. The total reserves at 31 March 2025 are £96,125, which is below the reserve policy target. 

The organisation's priorities for the coming period are focused on financial recovery and significant organisational change. With key priorities including stabilising finances and cashflow, diversifying income streams, strengthening unrestricted income and strengthening both their governance and financial oversight. 

If the charity was unable to continue in operational existence for the foreseeable future, adjustments would have to be made to reduce the balance sheet values of assets to their recoverable amounts and to provide for the future liabilities that might arise, and to reclassify fixed assets and long-term liabilities as current assets and current liabilities. The directors believe that it is appropriate for the financial statements to be prepared on the going concern basis. 

## **5. PROVISIONS AVAILABLE FOR AUDITS OF SMALL ENTITIES** 

In common with many other charity of our size and nature, we use our auditors to assist with the preparation of the financial statements. 

|**6.**|**INCOME**|||||
|---|---|---|---|---|---|
|**6.1**|**DONATIONS AND LEGACIES**|**Unrestricted**|**Restricted**|**2025**|2024|
|||**Funds**|**Funds**|||
|||**£**|**£**|**£**|£|
||Donations and Gifts|**4,057**|**-**|**4,057**|-|
||Membership Fees|**4,050**|**-**|**4,050**|4,369|
|||───────|───────|───────|───────|
|||**8,107**|**-**|**8,107**|4,369|
|||═══════|═══════|═══════|═══════|
|**6.2**|**CHARITABLE ACTIVITIES**|**Unrestricted**|**Restricted**|**2025**|2024|
|||**Funds**|**Funds**|||
|||**£**|**£**|**£**|£|
||**Charitable Income:**|||||
||Sale of goods|**-**|**-**|**-**|23,789|
||Day Care fees|**443,863**|**-**|**443,863**|425,338|
||Grants|**-**|**-**|**-**|485,766|
||Arts Council|**-**|**44,205**|**44,205**|-|
||Future Screens NI|**-**|**21,109**|**21,109**|-|
||Belfast City Council|**-**|**32,019**|**32,019**|-|
||Belfast24|**-**|**131,750**|**131,750**|-|
||Belfast Health and Social Care Trust|**-**|**19,000**|**19,000**|-|
||Childcare Partnership|**-**|**18,480**|**18,480**|-|
||Department for Communities|**-**|**63,881**|**63,881**|-|
||Early Years|**-**|**35,000**|**35,000**|-|
||Fóras na Gaeilge|**-**|**67,575**|**67,575**|-|
||Francis Costello - Onwards and Upwards|**-**|**7,500**|**7,500**|-|
||Programme|||||
||Playboard - Brightstart|**-**|**23,157**|**23,157**|-|
||Department of Health Strategic Planning and|**-**|**10,800**|**10,800**|-|
||||||**20**|





continued 

## **An Droichead** 

## **(A company limited by guarantee, not having a share capital) NOTES TO THE FINANCIAL STATEMENTS** 

for the financial year ended 31 March 2025 

||Performance Group||||||
|---|---|---|---|---|---|---|
||||───────|───────|───────|───────|
||||**443,863**|**474,476**|**918,339**|934,893|
||||═══════|═══════|═══════|═══════|
|**6.3**|**OTHER TRADING ACTIVITIES**||**Unrestricted**|**Restricted**|**2025**|2024|
||||**Funds**|**Funds**|||
||||**£**|**£**|**£**|£|
||Other trading activities||**148,179**|**-**|**148,179**|-|
||Shop Income||**-**|**-**|**-**|5,206|
||Sponsorship and Social Lotteries||**-**|**-**|**-**|7,714|
||||───────|───────|───────|───────|
||||**148,179**|**-**|**148,179**|12,920|
||||═══════|═══════|═══════|═══════|
|**7.**|**EXPENDITURE**||||||
|**7.1**|**CHARITABLE ACTIVITIES**|**Direct**|<br>**Other**|**Support**|**2025**|2024|
|||**Costs**|<br>**Costs**|**Costs**|||
|||**£**|<br>**£**|**£**|**£**|£|
||Expenditure on charitable activites|**1,024,442**|<br>**-**|**90,442**|**1,114,884**|1,104,346|
||Governance Costs (Note 7.2)|**-**|<br>**-**|**5,100**|**5,100**|6,000|
|||───────|───────|───────|───────|───────|
|||**1,024,442**|<br>**-**|**95,542**|**1,119,984**|1,110,346|
|||═══════|═══════|═══════|═══════|═══════|
|**7.2**|**GOVERNANCE COSTS**|**Direct**|<br>**Other**|**Support**|**2025**|2024|
|||**Costs**|<br>**Costs**|**Costs**|||
|||**£**|<br>**£**|**£**|**£**|£|
||Governance costs|**-**|<br>**-**|**5,100**|**5,100**|6,000|
|||═══════|═══════|═══════|═══════|═══════|
|**7.3**|**SUPPORT COSTS**||**Charitable **|**Governance**|**2025**|2024|
||||**Activities**|**Costs**|||
||||**£**|**£**|**£**|£|
||General Office||**77,702**|**-**|**77,702**|93,783|
||Governance Costs||**-**|**5,100**|**5,100**|6,000|
||Staff Costs||**-**|**-**|**-**|20,570|
||Finance Charges||**12,740**|**-**|**12,740**|12,538|
||||───────|───────|───────|───────|
||||**90,442**|**5,100**|**95,542**|132,891|
||||═══════|═══════|═══════|═══════|
|**8.**|**NET INCOME**||||**2025**|2024|
||||||**£**|£|
||**Net Income is stated after charging/(crediting):**||||||
||Depreciation of intangible assets||||**20,861**|20,973|
||Auditor's remuneration:||||||
||- audit services||||**2,760**|3,000|
||||||═══════|═══════|
|**9.**|**INTEREST PAYABLE AND SIMILAR**|**CHARGES**|||**2025**|2024|
||||||**£**|£|
||On bank loans and overdrafts||||**13,058**|12,538|
||||||═══════|═══════|



**21** 



continued 

## **An Droichead (A company limited by guarantee, not having a share capital) NOTES TO THE FINANCIAL STATEMENTS** 

for the financial year ended 31 March 2025 

## **10. EMPLOYEES AND REMUNERATION** 

## **Number of employees** 

The average number of persons employed (including executive trustees) during the financial year was as follows: 

||**2025**|2024|
|---|---|---|
||**Number**|Number|
|Average number of monthly employees|**40**|40|
||═══════|═══════|
|The staff costs comprise:|**2025**|2024|
||**£**|£|
|Wages and salaries|**615,935**|546,581|
|Social security costs|**43,867**|102,742|
|Pension costs|**9,272**|25,750|
||───────|───────|
||**669,074**|675,073|
||═══════|═══════|



**11.** There are no employees who received employee benefits (excluding employer pension costs) of more than £60,000 (€70,000) for the reporting period. 

## **12. TANGIBLE FIXED ASSETS** 

|**12.**|**TANGIBLE FIXED ASSETS**|||||
|---|---|---|---|---|---|
|||**Land and**|**Fixtures**|**Computers**|**Total**|
|||**Buildings**||||
||||**and fittings**|||
|||**£**|**£**|**£**|**£**|
||**Cost**|||||
||At 31 March 2025|826,565|17,335|46,792|890,692|
|||───────|───────|───────|───────|
||**Depreciation**|||||
||At 1 April 2024|355,116|17,335|29,475|401,926|
||Charge for the financial year|16,532|-|4,329|20,861|
|||───────|───────|───────|───────|
||At 31 March 2025|371,648|17,335|33,804|422,787|
|||───────|───────|───────|───────|
||**Net book value**|||||
||At 31 March 2025|**454,917**|**-**|**12,988**|**467,905**|
|||═══════|═══════|═══════|═══════|
||At 31 March 2024|471,449|-|17,317|488,766|
|||═══════|═══════|═══════|═══════|
|**13.**|**DEBTORS**|||**2025**|2024|
|||||**£**|£|
||Trade debtors|||**-**|46,737|
|||||═══════|═══════|
|**14.**|**CASH AND CASH EQUIVALENTS**|||**2025**|2024|
|||||**£**|£|
||Cash and bank balances|||**18,274**|2,439|
||Bank overdrafts|||**-**|(7,924)|
|||||───────|───────|
|||||**18,274**|(5,485)|
|||||═══════|═══════|



**22** 



continued 

## **An Droichead** 

## **(A company limited by guarantee, not having a share capital) NOTES TO THE FINANCIAL STATEMENTS** 

for the financial year ended 31 March 2025 

|**15.**|**CREDITORS**|**2025**|2024|
|---|---|---|---|
||**Amounts falling due within one year**|**£**|£|
||Bank overdrafts|**-**|7,924|
||Bank loan|**19,740**|19,740|
||Taxation and social security costs|**10,585**|6,638|
||Other creditors|**30,341**|20,762|
||Accruals and deferred income|**27,206**|16,106|
|||───────|───────|
|||**87,872**|71,170|
|||═══════|═══════|
|**16.**|**CREDITORS**|**2025**|2024|
||**Amounts falling due after more than one year**|**£**|£|
||Bank loan|**130,285**|137,285|
|||═══════|═══════|
||Repayable in one year or less, or on demand (Note 15)|**19,740**|27,664|
||Repayable between one and two years|**19,740**|19,740|
||Repayable between two and five years|**59,311**|59,311|
||Repayable in five years or more|**51,234**|58,234|
|||───────|───────|
|||**150,025**|164,949|
|||═══════|═══════|



A debenture over all company assets supported by a Fixed Charge over each Folio held by the An Droichead Childcare facility at 20 Cooke Street, Belfast, BT7 2EP. 

The term of the loan is 15 years, monthly repayments £1,615. 

Interest will be variable, being calculated as the greater of the underlying Bank of England base rate plus 3%, or 6%. 

## **17. PENSION COSTS - DEFINED CONTRIBUTION** 

The charity operates a defined contribution pension scheme.  The assets of the scheme are held separately from those of the charity in an independently administered fund.  Pension costs amounted to £9,272 (2024 - £25,750). 

## **18.** 

|**DEFERRED CAPITAL GRANT**|**2025**|2024|
|---|---|---|
||**£**|£|
|**Capital grants received and receivable**|||
|At 1 April 2024|**188,003**|204,109|
|Decrease in financial year|**(16,106)**|(16,106)|
||───────|───────|
|At 31 March 2025|**171,897**|188,003|
||═══════|═══════|



## **19. RESERVES** 

|**RESERVES**||||
|---|---|---|---|
||**Funds**||**Total**|
||**£**|**£**|**£**|
|At the beginning of the year|(158,164)|299,648|141,484|
|Deficit for the financial year|(45,359)|-|(45,359)|
||───────|───────|───────|
|At the end of the year|**(203,523)**|**299,648**|**96,125**|
||═══════|═══════|═══════|



**23** 



continued 

## **An Droichead** 

## **(A company limited by guarantee, not having a share capital) NOTES TO THE FINANCIAL STATEMENTS** 

for the financial year ended 31 March 2025 

|**20.**|**FUNDS**||||||||
|---|---|---|---|---|---|---|---|---|
|**20.1**|**RECONCILIATION OF MOVEMENT**||**IN FUNDS**||||**Unrestricted**|**Total**|
||||||||**Funds**|**Funds**|
||||||||**£**|£|
||At 1 April 2023||||||299,648|299,648|
||Movement during the financial year||||||(158,164)|(158,164)|
||||||||───────|───────|
||At 31 March 2024||||||141,484|141,484|
||Movement during the financial year||||||(45,359)|(45,359)|
||||||||───────|───────|
||At 31 March 2025||||||**96,125**|**96,125**|
||||||||═══════|═══════|
|**20.2**|**ANALYSIS OF MOVEMENTS ON FUNDS**||||||||
||||**Balance**||**Income **|**Expenditure**|**Transfers**|**Balance**|
||||**1**|**April**|||**between**|**31 March**|
|||||**2024**|||**funds**|**2025**|
|||||**£**|**£**|**£**|**£**|**£**|
||Arts Council|||-|44,205|44,205|-|-|
||Future Screens NI|||-|21,109|21,109|-|-|
||Belfast City Council|||-|32,019|34,888|2,869|-|
||Belfast24|||-|131,750|131,750|-|-|
||Belfast Health and Social Care|||-|19,000|19,000|-|-|
||Trust||||||||
||Childcare Partnership|||-|18,480|18,480|-|-|
||Department for Communities|||-|63,881|63,881|-|-|
||Early Years|||-|35,000|35,000|-|-|
||Fóras na Gaeilge|||-|67,575|68,563|988|-|
||Francis Costello - Onwards and|||-|7,500|7,500|-|-|
||Upwards||||||||
||Playboard - Brightstart|||-|23,157|23,157|-|-|
||Department of Health Strategic|||-|10,800|10,800|-|-|
||Planning and Performance Group||||||||
||||───────||───────|───────|───────|───────|
|||||-|474,476|478,333|3,857|-|
||||───────||───────|───────|───────|───────|
||**Unrestricted funds**||||||||
||Unrestricted General||141,484||600,150|641,652|(3,857)|96,125|
||||───────||───────|───────|───────|───────|
||**Total funds**||**141,484**||**1,074,626**|**1,119,985**|**-**|**96,125**|
||||═══════||═══════|═══════|═══════|═══════|
|**20.3**|**ANALYSIS OF NET ASSETS BY FUND**||||||||
|||**Fixed**|**Current**||**Current**|**Long-term**|**Long-term**|**Total**|
|||**assets**|**assets**||**liabilities**|**liabilities**|**deferred**||
||**-**|**charity use**|||||**income**||
|||**£**||**£**|**£**|**£**|**£**|**£**|
||Unrestricted|467,905|18,274||**(87,872)**|**(130,285)**|**(171,897)**|96,125|
||general funds||||||||
|||───────|───────||───────|───────|───────|───────|
|||**467,905**|**18,274**||**(87,872)**|**(130,285)**|**(171,897)**|**96,125**|
|||═══════|═══════||═══════|═══════|═══════|═══════|



**24** 



continued 

## **An Droichead** 

## **(A company limited by guarantee, not having a share capital)** 

## **NOTES TO THE FINANCIAL STATEMENTS** 

for the financial year ended 31 March 2025 

## **21. STATUS** 

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

The liability of the members is limited. 

Every member of the company undertakes to contribute to the assets of the company in the event of its being wound up while they are members, or within one financial year thereafter, for the payment of the debts and liabilities of the company contracted before they ceased to be members, and the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributors among themselves, such amount as may be required, not exceeding £ 1. 

## **22 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT** 

||**Opening**|**Cash**|**Other**|**Closing**|
|---|---|---|---|---|
||**balance**|**flows**|**changes**|**balance**|
||**£**|**£**|**£**|**£**|
|Long-term borrowings|(137,285)|-|7,000|(130,285)|
|Short-term borrowings|(19,740)|7,000|(7,000)|(19,740)|
||───────|───────|───────|───────|
|**Total liabilities from financing activities**|(157,025)|7,000|-|(150,025)|
||═══════|═══════|═══════|───────|
|**Total Cash at bank and in hand (Note 14)**||||18,274|
|||||───────|
|**Total net debt**||||(131,751)|
|||||═══════|



## **23. POST-BALANCE SHEET EVENTS** 

There have been no significant events affecting the Charity since the financial year-end. 

**25**