HARMON12019 REPORT OF THE DIRECTORS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 REGISTERLD NUMBER: R0000316 (Northern Ireland) CHARITY COMMISSION for NORTHERN IRELAND REGISTRATION NUMBER: 101731
HARMONI 2019 CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 CONTEIYTS PAGE Company Information ............................................................................................................................................ Report of the Director5 3-17 Report of the Independenl Auditor.................................................................. 18-20 Statement of Financial Activltles 21 Balance Sheet 22 Statement of Casbflow$ ...,,..........................................................................................................,....................... 23 Notes to the FinAncial Statement$ .24-37 Page I
HARMON12019 COMPANY INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2022 DIRECTORS.. Mr Paul Archer (Appointed Chairman from 28th March 2023) Mr Norman Carson MBE (Chairman) (Deceased 18, June 2022) Mr D McIlhagger BSC, FIAE (Deputy Chair) Mr Brian Lavery Mr P Regan Mr Paul Collins Mrs Hannah Irwin Mrs Elaine Colgan MB Amira Graha SECRETARY: Mr S A Humphries REGISTFRF,D OFFICE: 39 Downshire Road Bangor Co Down BT20 3RD REGISTRAR OF COMPANIES NUMBER: R0000316 (North¥rn Ir¢land) CHARITY COMMISSION NORTHERN IRELAND NIJMBER: 101731 AUDITORS: Baker Tilly Mooney Moore 17 Clarendon Ro&d Clarendon Dock Belfast BTI 3BG BANKERS.. Northern Bank Limited tla Dai)ske Bank Donegall Sq West Belfast BTI 6JS INVESTMENT ADVISORS: Ev¢lyn Partners The Linenhall 32-38 Linenhall Street Belfost BT2 8BG SOLICITORS.. Cleaver Fulton & Rankin 50 Bedford Street Belfast BT2 7FW Page 2
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2022 FORWARD On behalf of the Trustee Directors of Hamonl, l am delighted to present the annual report and Counts for the firtancial year 1st January 2022 to 31" December 2022. It is my great honour to have become the latest chairnian for this very special organisation, That honollr only tinged by th¢ Circumstances requiring a new chair with the passing of my predecessor Mr Nornian Carson MBE in June 2022. As I begin my tenur¢ in April 2023, 1 want to fstlY thank my colleagues from the Board of Trnstee Directors for their work and ongoing interest in the charity. I would give speciaI mention lo Mr David Mcllhagger who as Deputy chair stepped up to chair presiding for the se¢ond time in 2 years during the Ghair's vacancy. It would be remis of me if I did noi also a¢knowledge the sterling work our staff carry out day and daily in pursuit of the charity's aims and objectives. They are very ably led by an extremely proficient ex¢cutive and management leam to which on behalf of the board we offer our appr¢Gi&tion, We extend our thanks to the statutory funders from The South Eiastern Health and Social Care Trust and the Northern Ireland Housing Executive for their continued engagement and contracting of services with us. Finally. I place on record our thanks to our clients for trusting us to deliver the services they require. It is because of the foregoing that I begin my tenure with an organisation that has weathered many storms wlth strong confiden¢¢ in the organisation's ability to face challenges and deliver a solulion which ensures the clienls continue to receive the extr¢inely ILigh-quality services they do. 2022 produced a very positive outcome for the charity. that result means as we face into 2023 and one of the most troublin8 public sector funding crises ora gcneration, we have a sound foundation upon which to stand. It is my objective as I take custodianship of the role of chairn]an to ensure our heritage is protected, our ¢lients remain served omd indeed we find opportunities to grow in spiie of Il)e funding paradigm as we s¢¢k to do more for more, PaulArcher- Chdlrman Page 3
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR FNDED 31 DECEMBER 2022 STRUCTURE, GOVERNANCE AND MANAGEMENT Governing Document The legal entity name was changed on 8th January 2019 frorn NIID to HARMON12019 Trading as Harnionl. HARMON12019 has its Drigins in late 191h century Belfast, It was incorporated on 19th July 1906 &8 a charilable Company limited by guarantee and not having a share capital, The objects and powers of HARMON12019 are set out in the Memorandum of Association, and the Company is governed under its Articles of Associatiom as updated in 2014 and registered on 28th March 2014. In the event of the Company being wound up Members are required to contribute an amount not exceeding £1.00. HARMONI 2019 is on the Northem Ireland Charity Register, registi*ion number l 01731. Since registration, the Director Trustses have embarked and maintained periodic specific training along with the Management team to undersland llY the implications, responsibilities and expectations of HARMON12019, the Trustees and the ManagemL'nt wlio operate under delegated authority. Direetor8.' Reerultment and appoilltment of dirtors Under the requirements of the Articles of Association as revised in March 2014, the directors are trustees of the charity and are known as Members ot"Coiincil. From that rcvision date, Dircctor Trusfres serve for 4 years dated from the first AGM at which they are voted in, they are eligible to serve up to three t¢nns of four Ye at which POAnt they must retire. The date cycle 1$ from their first Alim to thLir fourth AGM. Name of Director Trustee Appointment Date 281b March 2023 Expected term eDd AGM date 18t terni Chau. June 2026 Archer, Paul (Chair} Carson, Norman (Chair) McIlhagger, David (Deputy Chair) 26th August 2021 30th June 2010 (NED) Chair May 2014- Dec 2020 29th October2014 Deceased 18th June 2022 Appointed Deputy Chair I It Jan 2020 June 2026 Reagan, Peter June 2023 Lavery, Brian 181h May 2020 15th June 2020 June 2024 Irwin, Hannah June 2024 Collins, Paul 15th June 2020 June 2024 Colgan, Elaine 28th July 2021 5th November 2021 June 2025 Graham, Amira June 2025 Page 4
HARMONI 2019 REPORT OF THE DtRECTORS FOR THE YF,AR EfsDED 31 DECEIWIBER 2022 STRUCTURE GOVF,RNANCE AND MANAGEMENT continued Direclor Trustees during reportimgperiod No Member of the B0d of Director Trustees had a beneficial interest in any contract with HABMON12019 during the year. Succession Planning,. From I 91 January 2020 the board of trustees have creatsd a deputy chair role to ensure that in the event of the chair being unavailable theie reainS a line of consistency in the charity governance. Since the creation of the role which Mr David Mcllhagger has occupied there has been regretfully a need on two separate periods for the Deputy Chair to step Anto the role of Chair presiding. The most recent event being thc untimely passing of Mr Norman Curson MBE. The trustees place on record their apprcciation for David's willingness to step into the role and provide stable governance leadership during the two va¢ancies. Mr Paul Archer has been appointed &8 Chairnian in March 2023 and Mr David McIlhagger will retain the deputy chair role and chair of the Finance and General Purposes Committee. Truslee thducllon and tralning Trustees are aware of the practical work of HARMON12019 at the hostel in Bclfast and Strickland's Care Village in Bangor. New trustees are expected to attend an Anforniation session to fwniliarise th¢m%elves with how HARMONI 2019 operates. These are jointly led by the Chair of the Board and the Chief Executive of HARMONI 2019 artd cover the following,. The obligations of the Trustee Directors The Arti¢les of Association The fAnanGial position as sct out in the latest published accounts Future plans and objectives Ncw trustees receive copies of the Articles of Association, the latest financial statements, the current strategic plan and thc current year business plan. They then meet the CEO and undertake a half day induction process to provide infonnation on the charlty function. To ensure that trustees have up to date knowledge regarding charity management issues and the impact of changes in the public sector it is expected that trustees will have the opportunity to attend suitable training and infonnation events, The CEO disseminates all regulatory guidance to trustees as it is received by the charity. Rlsk management The Board of Director Trustees continues to review the major risks to which HARMONI 2019 is exposed. The risk management strat¢gy fur HARMONI 2019 is one which scL'ks to identify risks and mitigate or manage those risks. It is not designed to remove all risk as to do so is in itself a risk which could render the organisation impotent. The risk framework seeks to firstly identify the organisational risk appetite, over a range from low, medium or high appetite. The Board of Trustees receive regular updatss to the risk register. This process allows the board to see pertlnent corporate i'isks, these risks are categoi'ised with probability and impact scores as High, Medium or Low risk. This measurement is designed to identify risks that require immediate attention and mitigation, and those that n¢¢d attention, but are less immediate Page 5
HARMON12019 REPORT OF THE DtRFCTORS FOR THE YEAR ENDED 31 DECEMBER 2022 STRUCTURE, GOVERNANCE AND MANAGEMENT (continued) Each risk is then identified with a risk owner and a mitigation plan narrative provided. Each update of the register identifies new risk5 and changes in the previous risks due to the effects of the planned mitigatton or other ¢xtenMI circumstances. The core risks for 2022 were identified as,. Funding Compression: While there was some flnancial support proffered by the Department of Health there remains no annual Cost of living increment recognition policy for Supported Living therefore, the perpetual Compression between required income increases and a¢tual or no income increase8 from the Statutory funders rcmains unresolved. 'I'he mitigation for that risk continues to be the CEO and senior executive teams engage at the highest levels with the fvnding Ix)dies. Staff resource3: The increIng demand for agency to fill unfilled employed staff hours grew in 2022, it is recognised that this would if unchecked lead to an unsustainable situation financially This leads to limit service growth in respect to accepting new higher need clients, and it could ruce reserves over a prolonged period as the agency c05t is significantly higher, The mitigations for this have remained to attempt to keep retnuneration levels abov¢ that of National Living wage and through the use of Values based recruitment and retention stt'ategies increase the employed woi'kfow¢. At thL end of 2022 we noted rise in inflow of employed staff. Impact of Covid 19: While we remaincd vigilant to covid, during the year the management protocols directed from statutory bodics reverted to a standard Risk based approach. Procedures are in place to ensure Compliance with health and safety of staff, suppliers, volunteers, clients and ViSAlors to the Hostel and Strickland's Care Village. Page 6
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2022 STRUCTURE, GOVERNANCE & MANAGEMENT (continued) Organisailonql slruclure The Board meets at least three times a year and is rcsponsible for the strategic direction and policy of HARMONI 2019. The Trustees come from a variety of professional backgrounds relevant to the work of HARMON12019. The Finance and General Purposes Conllnittee meets approximatsly three times a year and as per the change in ternis of reference agreed in 2017 the committee now receives all audit repons on behalf of the Board. The development ¢ommittee, which is a project-based cominittee, did not meet in 2022 due to there being no relevant business before the committee. Responsibility for operations management is deleg*ed to the Chief Executive. In January 2022 the Board of Trustees launched the next strategic plan iteration, it is entitled Research. Knowledge, Action. It is led by research allowing time to garnish detailed information which will inforni future direction decisions. The key objective being that this newfound knowledge leads to risk assessed actions which are aimed at enhancing the service offering5 provided by the charity. Governanee: The Board will fonnally meet a minimum of 3 times in the y¢ar to take care of the ordinary business of the charity and its governancc requirements. The board also receives a detailed sub report on Health and Safety, Safeguarding and Deprivation of Llberty issues if any have arisen. They will meet at other times for special topics meetings a5 and when required. The Sub Committee of the Finance and General Purposes Committee will nornially meet one week in advance of each fonnal board. The Development Committee will meet as requlred to meet the needs of the project timeline. Corporate Oversight: The Senior Management Team meets regularly to ensure the management of the main corporate needs are being met. A key element of this discussion will be the budgets, actuals, and variances we are experiencing and what controls or ¢hang¢s we need to effect in order to keep the organisation on track. Corporate Management: The Unit Managers will meet with members of the Senior Team &5 required to review th¢ perforniance of the overall business with specific input from th¢ unit heads, These discussions include the regulatory and compliance element5 from the funders and commissioners of the servi¢es and also key safeguarding issues. Operations Management.. A member of the Senior Team meets their direct line management team as needed to review and discuss operational issues and take any operational decisions arising. Page 7
HARMONI 2019 REPORT OF THE DIRECTORS FOR THF YEAR ENDED 31 DECEMBER 2022 STRUCTURE, GOVERNAIYCE & MANAGEMFNT (continued) The operational organisation structure: ¥xl4 Maurtt¢ GOgJwl R£5wrc RUb45TedInO0r Plthll0rnothy R051IrthAisodal4 Svpport fo4rn Prcle<i Wotkvl 141eht5t411 Page 8
HARMON12019 REPORT OF THE DIRFCTORS FOR THE YEAR F,NDED 31 DECEMBER 2022 STRUCTURE, GOVERNANCE & MANAGEMENT (continued) Related partAe5 HARMON12019 did not have any dealings during 2021 with any companies or other organisations in which any of the directors have an interest. OBJECTIVES AND ACTIVITIES The principal objects, as updated, of HARMON12019 are to.. - To relieve povety, illness, sickness and suffering of people who are in need by reason of sickness, disability, povety or social and economic circumstance ('the beneficiaries). To advance the interests of benefjciaries by all means including* but not litnited to, their Closer integration into widcr %oci¢ty. In the interests of social welfare to provide or assist in the provlsion of supported housing facilities or other services, such as nursing care or domiciliary care, which imPTove the conditions of life of the benefLciaries at provide or assist in the provision of respite Care or other support for carers of the beneficiaries. To advance the education of the benefjciaries and educate and raise awareness among the public of issues pertaining to social welfare and people with disabilities. To relieve sickne55 and poverty of elderly disabled sick or injured persons and their Carers by offering assistance to enable those in need to secure respite care. Such other exclusively charitable purposes according to the law of Northern Ireland for the beneficiaries as th¢ Tntee8 may from time to time decide. Strickland's Care Village located in Bangor provides accommodation in thirty-threc 8eparate units for those individuals living with a disabilily and needing support and carc at various levels depending on assessed need. The Belfast hostel provides emergency accommodation for fifty-nine men experiencing homelessness with one room specifically renovated for men with disabilities. The men are supported and enGouraged to improve their Situation by taking the necessary steps to move on to training opportunities and employment, and to pennanent accommodation. There is closL cooperation with the statutory authorities and the Northern Ireland Housing Executive, Page 9
HARMON12019 REPORT OF THE DtRECTORS FOR THE YEAR ENDED 31 DECEMBER 2022 STIL4TEGIC REPORT: ACHIEVEIVIENT & PERFORMANCE STBATEGIC REPORT Achievements and Performance Organisalional.. In April 2022 the Trustses were introduced to the new concept of Psychologically Infornied Environments (PIE). This overarching model is designed to ensure the organisation sees everything it does through the PIE lens. The key element of that lens is to ensure we consider the client and their journey. After deliberation the trustees declared that HarmonI would pui'sue this model organisationally. Some key reasons for that decision were.. It ensures a PsychologFical based approach. It places a strong emphasis on the client joiirncy (Person Centred) It places a strong emphasis on staff support, development and inclusion. It fosters a culture of learning and enquiry. It ensures the physical needs of built environment are included in the procoss. It is not a restrictive list of do and do not, it remains flexible to the needs of the Glient and the organisation. The PIE philosophy is very much in line with the new HR approach initiated in 2022 by our HR manager Shirley- Anne M¢Ferran. The values-b&sed approach has shown incredibly positive benefits throughout 2022 with at least 500/0 of our new recruits joining undLr this initiative. We have noted significant changes in employee matters arising from the rcduccd nL'ed for investigations and disciplinari¢s. We have also noted greater staff engagement in discussion focus5ed on the client needs. The changes are subtle but power1, ultimatsly adding value to the Client experience of Harmonl's services. Slrleklands Care vlllage: A key element in our strategic aspiration for some time ha5 been the implementation of a new digital care manag¢ment system. In 2022 we were su¢¢essfully able to secure a grant to fund the new system aspiration alongside a grant to deliver a site wide Wi-Fi system and associated digital tablet hardware. The net benefit to our lient will be the real tlme updating of their daily liviiig plans. the management of their medications and staff rostering. The sole aim being to maximise the support and care time within an administration rich regulatory requirement. The management of Covid was reduced in year by the statutory bodies to a risk-based approach on 8 case by case basis, We remain on high infection control awareness, but the relaxations have allowed much more association for clients to return. Our maintenance progi'amme continues to ensure the clients homes are maintsined to the high standards we aspire to for them. Stricklands Care Village again received a positive RQIA report in 2022 foElowing an unannounced inspection with no improvement plan required. Page 10
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBF,R 2022 STRATEGIC REPORT: ACHIEVLMEIYT & PERFORMANCE (contlDued) Utllity Slreet Hoslel.. The occupancy level in the Hostel has continued to be maintained at an average of 53 men per week. While it is great to have the service so close to full it is nevertheless saddening to know the demand for emergency accommodation continues to grow. We successfully rolled out the new client management system in the Hostel and in June 2022 transitioned all referral, occupancy and support infonnation across to the new system. In 2022 we supported 260 men through the service. Of those 74 went on to successthl planned departures. Our Keys to life prograrome continued throughout the year. This year 22Q/o of men in the hostel engaged with the programme. A small group of around l O clients volUnteed to help build a new sensory garden for the clients in Stricklands Care Village. The great element within this is the rnen themselves wanted to give back to other people in tl)e community. The residents of Stricklandg Care Village have thoroughly enjoyed the iiew facility and are grateful for the support Keys to Life brought. Public Benefit The directors confimi that they have had due Tegard for the guidance produced on Public Benefit by the Charity Commission for Northern Ireland, and are pleased to report that during 2020 they have continued to meet the Public Benefit requirement as follows: The core activity for HARMON12019 is the relief of poverty, illness, sickness and suffering to those living with sickness, disability, poverty or social circumstances. All our engagement activities have been with individuals from one or a range of these groups. The organisation has sought to revive these impaL'ts firstly by providing suitable and appropriate acconunodation, be that in Supported Independent living or Hostel provision. The organisation sccs that pruvlsion as the start of our service intervention. From that point forward, we seek to create a person-centred provision that AS cognisant of the individual's need. Many of our residents and service users h&ve these needs identified through professional assessment, either from the health care trusts or other social services. In all HARMON12019 service interventions, we first consider the clients personal needs. Our core model remains accommodation-b&sed care and support, subject to the service engagement. We continue to believe that the most important element for all OUT clients remains ensuring a safe and secure place to live. This delivers consistency in what has for some of our olients been a chaotic life to dats. Those for whom the need is centred on personal care Are provided a bespoke care and support daily living plan which centres around their personal needs. This is achieved in conjunction with the South East Health Trust care manageinent teams to ensure the assessed needs are met. Next of kin and family provide valuable input to those requirements in the care plan development stage. Further supports are designed which enable the client to live as independently as they wish or are capable of. All these plans are subject to regular review and updating as circumstances change. Those for whom support is the core focus of our engagement will receive a personal support plan which aims to assist them in achieving their short tsrni goals which are aimed at delivering a longer terrn goal, in the case of our lients in Utility street this is independent living in a place of their choosing. Page 11
HARMON12019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2022 FINANCIAL REVIEW For many of our Service users the reality i8 that their experience with HARMONI 2019 is about small steps at personal capacity l Capability building. Many of our residents and families have seen a marked improvement in the indAviduals' engagement and socialisation skills and their ability to conununicate their wants and needs personally. HARMON12019 works closely with multiple statutory bodies to ensure we plan for and deliver suitable and successful outcomes for each and every one of our service users. This joined up approach ensures that the overall public benefit is delivered where service users have longevity consistency and therefore tend not to move between other agencies or service provisions. Page 12
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2022 INANCIAL REVIEW HARMONI 2019 is a unique organisation, not least because of the diverse nature of the rVICe users but also because of the blended fiLnding sources for OUT service delivery. Hamioni is very grateful to the Northern Ireland Housing Executive and the South-Eastern Health and Social Car¢ Trust. being the principal finders of these activities. The directOT8 note that there is a total Net Expenditure for 2022 of £98,199, compared to Net Income of £497,578 in2021. The directors however note that the charity remains in positive position in terms of generation of a surplus from operating activitie5. 2022 saw Net Income from Operational Activities of £91,926, with a figure of £283,247 refl¢ct¢d in 2021. The main points of note are- Incoming Resource5 have increased by £348,040 (10.570/0 Incre&se in investment income of £24,698 (Increase of 21,42 0/.). Increase in income from charitable actLVlties of £332,047 (Increase of10.4/Tr). Much of this relates to Covid 19 funding, including funding for special recognition payments that was made to staff, as well as annual uplifts to contracts from SEHSCT and NtHE. Expenditure has increased by £539,361 (17.920/0) Increasc in expcndilure on ¢haritable activities of £546,116 (18.490/0). Costs increased across all departments and expense types, with significant incrLa&es in utility costs, insurance and food. On top of Ihis incr¢as¢s to NL W }d decreased staff availability meant a very significanl inLrease in agency Costs in year (650/0 increase on 2021) In 2022 the organisalion saw a loqs on the revaluation of investment assets of £190,1 ?5. This primarily related to the value of current asset investments (loss on revaluation of £240,125). The revaluation on fixed asset inveslments meant an uplift in the value of the properties lield of £50,000. Thi81()%4 1)n revaluation is a swing from a gain on inv¢sknent of £214,331 in 2021, which primarily related to the uptum in the fftnveslment market at that time. The net effect of these movements is that the charity returned a Net Expenditure figure of £98,199 in 2022. This gives reserves carried forwaJd on the balance sheet at the eod of the year comprising Restrictsd Funds carried forward of £161,759 (2021 .. £188,084) and Unrestricted Funds of £6,575,121 (2021: £6,646,995). The Unrestricted funds carried forward comprise Investment Revaluation Reserves of £ E,771237 and General Funds of £4,803,884. The balance sheet of the charity remains strong, with current assets, including current asset investments, comfortably exceeding current liabilities by £3,007,188. Page 13
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2022 FINANCIAL REVIEW (continved) During the year, our inconie came from the following sources: Income for the year ended 31 December 2022 0.10%. 3.84% 96.06%... Donations & Le8acies J Investments Charitable Activities This income then allowed us to achieve our aims and objertives for the organisation through making the following expenditure: Expenditure for the year ended 31 December 2022 0.12% -1.28% 98.60%_ Grant Fundrai51ng Costs '.1 Investment Management Costs • Charitoble Activities Page 14
HARMON12019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2022 Reserves Policy HARMONI 2019 aims to maintain a level of resources that match the needs of the organisation, both now, and in the foreseeable fye. The two main objectives are that- the available reserves ensur¢ that the activities of the organisation could continue in the face of any unexpected reduction in, or loss of, a particular income stream, while allowing the orglIsation time to seek altemative funds or restructure/¢ut costs. b. the available reserves allow the organisation to progress with the organisational development plan laid out in the strategic plan 2017-2022. The Director5 asses5 the risks that HARMON12019 could be exposed to, and the appropriate level of reserves that should be maintained. The current assessment of the target range of free reserves- fundg that are freely available to be used for general charitable purposes - held by the company should be 6 months of expenditure, with an additional amount to allow the Board the potential to carry out operations in line with the strategic plan. In carrying out their assessment of reserves the Directors exclude the fjxed asset fund of £2.6m because this represents functional, operatioiial assets within the organisation that could not be realised quickly, restricted T¢S¢TV¢$ of £0.162m which have restrictions placed over the use of funds by the individual thnders, aiid the investment property valiie of £1.5m which is used as mort&Tage security for the original long-term loan. After excluding the red asset fund this leaves free r¢serve5 of £2.47m. In the strategic plan 2022-2025 the Directors have identified several key projects to investigate. They have also identified the need to biiild and maintain appropriate reserves to carry out these plans, This is to entsure that the orL7anisation can grow and develop while maintaining the range of serviceslactivities. and in time the reserves should rclurn to a level equivalent to the equival¢nt of 6 months running costs. Investment Policy The Directors have agreed an investment policy within the powers provided to them under the Articles of Association of the organisation. The organisation has a long-established balanced approach towards investment risk, with the need to both protect and grow the charities assets for all service u5er5. Therefore, the Directors defme the organisation's expected investment profile to be balanced, with a desire to grow, but also protect the capital invested, whilst providing a useful source of income from dividends. The Directors wish the portfolio to represent a balanced spread of investments Èn equities and fixed interest securities and bonds. The investment portfolio was managed during the year under review by Evelyn and Patlners alongside Abrdn (fonnerly Aberdeen Standard Capital) (on behalf of the Northern Ireland Central Investment Fund for Charitie5). All are professional investment managemeni companies in good standing and regulated by the Financial Conduct Authority. As a charity with a strong EvangelÉcal Christian heritage, the ethos of which casts a guiding shadow across the organisation's moral position, the Directors have advised the investment matmgers that the organisation do not wish to invest in the following: Alcohol or tobacco trades Arms and miinitions trades The performance of the investment portfolio is rnonitored regularly by the Directors. In the year under review the investments continued to perforni well and in line with objectives? providing a good level of dividend income. Page 15
HARMON12019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2022 Continued) PLANS FOR FUTURE DEVELOPMENT The charity placed a hold on major developments during the pandemic, this however has not quelled the plans to increase the positive impact HarmonI 2019 delivers to a diverse client group. The key enabler of our future development will be the research project which will generate new knowledge or solidify Current knowledge into a more cohesive ethos and philosophy upon which to build, both figuratively and physically) our future service offerings. In 2022 we had the opportlmity to work alongside undergraduates forni the Queens University Belfast Business School who carried out a specific piece of market penetration analysis for us in respect to a possible tUre service. That work will complele in early 2023 and will be used as a foundation for further analysis to deterniine if a sustainable business ¢ase Can be drawn up enabling a new service development to be started. THANKS AND APPRECIATION HARMON12019 would like to place on record their thank5 and appreciation for: The Continued funding provided by the Health Trust5 and the Northern Ireland Housing Executive towards the cost of providing vitsl services in Strickland'5 Care Village and the Men's Hostel. The Boys, Brigade have been involved, for over 100 years, in organising house to house collections to support the Work of Harmoni, Unfortunately, with the Covid pandemic and associated restriotions, the opportunity has been reduced signifIcantly* although we still receive small contributions from individual company's for which we remain grateful. The National Lottery Community Fund for the funding to operate Keys to Life project. The Dorniant Accounts Fund Nl for the funding to facilitate the research project. Those many organisations and individuals who made donations of money> goods and time to the clients at the Hostel. Page 16
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2022 (Continued) FIXED A&SETS Details of fixed asset movement in the year are given in TLQt¢ 7 to the financial statements. Although the market value of the operational property is comfortably in excess of its amortised historic cost. the difference is not felt to be of significance to members. FAIR EMPLOYMENr The charity is committed to a policy of equal opportunities for all current and future employees. This policy also in¢ludes complian¢¢ with the Sex Discrimination (NI} Orders 1976 and 1988 and the Disability Di5Grimination Act 1995. These poli¢ie5 are incorporated into the Equal Opportunity of Employment Guidelines that are adhered lo by the charity. STATEMENT OF DIRECTORS, RESPONSIBILITIES The dire¢tOTS ar¢ r¢5ponsibl¢ for preparing the financiv41 statements in accordance with appli¢abl¢ law and United Kingdom Generally Accepted Accounting Practice. Company law requires the directors to prepar¢ financial statements for each financial year which give a true and fair view of the State of affairs of the company and of the profit or loss of the company for that period. In prepartng those financial 5tatementB, the directors are required to select Sultable accounting policies and then apply them consistently. make judgements and estimate5 that are reasonable and prudent. prepare th¢ financial stateinents on th¢ going concern basis unless it is inappropriate to presume that the company will continue in busin¢5S, The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial slatements comply wilh the Companies Act 2006. They are also responsible for safeguarding the assets of tlie company and hence for taking reasonable steps for the prevention and dctcction of fraud and other irregularities. REPORT AIYD FINANCIAL STATEMENTS This report and financial statements have b¢en prepared in accordanGe with the Statement of Recommended Pra¢ti¢¢.' Accounting and Reporting by Charities and in accordance with the Companie$ A¢1 2006. AUDIT The director8 have sought to make thcniselves aw8re of any relevant audit information and to establish that the auditors are aware of that inforniation. Insofar as the board is awa there is no relevant audit infonnation of which the company's auditors are unaware. AUDITOR The external audit assignrnent for 2022 and the subsequent 5 years has been awarded to Baker Tilley Mooney Moore after an open competitive bid proGe55. ON BEHALF OF THE BOARD: SA Humphries - SecretAry 26- 6.. 7<Jzg Page 17
HARMON12019 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF HARMONI 2019 We have auditeddK finwial Statnents ofHARMONt 2019 (the.ChAtfible conwatty,) fOrtheY ended 31 Decem12022 which comprise dle Ststement ofFinancial Activities, the Balance SheeL the Statetnert ofcashfiows and nirtes to the financtal stalementy iticluding significanta0Vnting )licIes. The fmcial framework been applied in their pitpardtion is app]icable law United King(k)mAccounting Stsndards, including Fillallcial RwtiE Standard 102 The Financial Rqhog standa appIicabk ill UK andRepublic of Ireland (Unit&d Kll]gdom GeneraUyAcceptedAccounting Practice). In our opinionthe financial st2tements'. give atr fair view ofthe siafr ofthe charitable company's affairs &8 at 31 December 2022 and of its itwoming resources 8nd application of Rsourc48, including tts iOrne and expendittmk forthe yearthen evded; havL properly pttpared in acCOrdanWIth UnitsdKingdom GeneTrlly AcLeptslAccounting Practice; and hav¢ been pptd inaccordance with the requirements ofthe Act2006, We condwfrd our alIt in accoTdance with IntentiOnal Stsndard8 on (UK) (ISA5 (UK)) aJ]d applicable law. Our onsibiltties under those standards fikndescribed in the Auditor's s)nSibIlitieS for the audit ofthe financial Statem sectionof ow wort. We are independentof the charitsble company in accordancz with the ethical requirements that are relevant to our audit ofthe financial statements in the UK including the FRC'S EthicaI Standart andwe have fulfdled our otheJethical res1b11ltiCs inacc0rdancewlthtt requIrenr. We believethat the audit evidence we have obtsllied is sufficient and appropriate toprovide a E&8is forour opinion. In atIting the fjnancial statements, we have concluded that the truses' we ofthe going concern b93is ofaCthUnt inthe preparation ofthe financidl 51atements is appropiiate. B8sed on the work WL. Iwve we have not identified any material uncetsiites relating to events orconditions tha( individually or collectively, may castSilficantdoubl on the cliaritable compangs ability tocontinue &8 a&yoing concem fora poiod Ofatleastlv¢ monts from when the financial statements areauthorised for issue. Our ponsIbIlitieS and the rtsy)nsibilitio8 of the ttustees with Rspectto goinge0 are descnbed in leVant$e¢l1onS of thi8 rekKI The othcr info0Th comprises the infOnOn irKluded in Ihe DirectOJ5 annual tEporL ollier than the financial slatements aJKI our auditor's IEPOrt thern. The trustees SnSIble for the other inf0mtiOn wntsined within the annual reFth. Our opinion on fila1 slatements does not cover the 0therinfomti0n exceptto the extent (rthenvi8e cxpiicidy stated in our repo¢ we do not expIESS any lonn ofassurance conclusionthereon. OurRspongibi]ity isto ad the other infomthon anl doing S rA)nsAderwhcthcr the cther Anfonnatim is materialty inconsisteni with the financial statements orourknowknlge obtai1 An theeoue ofthe auditor Otheist appea3 to be nmterially misstst&l. Ifwe identify such material inconslstencies or apparent mataial misStatement4 we are qUI1 to detcnnine whether Ihis gives rise to a rna1 InisstatcmLnt in t1 financial statements thenelves. 1£ b&5ed on the wod(we have perfomrf we conchde thatthere is amati1 misstatementofthis o lnfonnati0 we wUld to trport that (act. We have nothing toKport inthis, iygth. OpinM)nson othermAtteTr prescnll bytheCompani¢5Act2 tnour opiniory b&sed on the work undertsken in the cOue ofthe alIt the Itmong1Ven in the DArth, report for the fin8nciaJ year for which the financial statements prepared is consistentwith the finla1 Staten' and theD1CtO, iy)orth&8 been Wep1 in acc(xdance with applicable legal quIents. In the bghtofdr IllVIedge and undela[KIlng ofthe charltable ¢onyny and its enviro obtai[ in the Co3e ofthe we ljave notidentifiedmrial misstatements inDirectots' re[l Page 18
HARMONI 2019 IriDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF HARMONI 2019 (Continued) We have rnthing to rq inrwe¢t ofthe following matters in lationt0 Nvhichthe CompaniesAct 2(M)6 requiresus to IEI to Y( if, in ouropinion: &qLtsacc0unting recordshave notbeen keptr, or the financiaj statenlents not in agreementwith Ihe countIng records and rettJm8' or cefviii disclosures Ofd1ctO, remuneralion sttcified by law not n]ade' or we have not ceIVedal] the infOnTtIon alld&Kplanations we requi forow audiL RwoTh$ibiliti£soflnLqtees As. cxplained nu)re fully inthe Directots, nwrLsIbi]itses statemtht set outon page 16, the DItorS (who are alsothe Trustees of the charitsble company forthe purpow ofcompany law) responsible forthe p0[the financial thtements and for being satisfied thattly give atrue and fair view, and for such internal cont1 &$ ttusttt8 {ktern is necemyto enable the Jn prepa the financial statem, the D1ctO wbk for asSing Ihe charitable company's abilityto ci)nlinue as a going wnceni discknsj &8 applicabl< Matt related to going cowem atKI using thegoing concern b&sis ofaccounting unles8 the InL8tees either inteIt0 liqtlldate the chItable comkw orto cwe 0105, or haveno re81istic altenwtive but to (l) so. Auditrfs for the audkoftheffflanlsteMellts Ourobje¢tives alr toobtain re[thI¢ VranCe about whedwthe financial statements awhole are free from mateiial mis8tatemenL whether due to frai or cm)T, wid to issue an auditor's reportthat Includ our opinion. Re&sonabk assurarKe is a high level of &5surancc, bul i% n(rt a gLrntee that an audit CAJnducted in cordae with ISAS (UK) will 8Jways detertamataial misslalcmcnt wkn It]Sts. Misstatemet)ts can arlse fiDm ftaud orenDr and consid¢1 if, individllY or in the yreg4 theycould reasonably be ex to infiua]ce the ec(MN)nllc decisions ofuswB taken on basis ofth&8e firnncial IguIltie4 incluthng fi8 8Jr ]ThstanS ofnon.comp]iance WAth laws gnd regLdatis)ns. We design prOclL5 in line withour Jrspon8ibilitie4 oullined above, to detectmaknial misstatanents in $Of iffegu1j1ies, including fraud. The sprcific priKYdutES forthis eng8gertand tt]e extentto thich these capable ofdetecting inrgularities, including fraud is delailed below: We con8idered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relalion to revenue recognition. In common with all audits under ISAS (UK), we are also required to perforni specific procedures to respond to the risk of management override. We also obtained an understanding of the legaE and regulatory frameworks that the charitable Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the deterniination of nterIal amounts and disclosures in the financial statements, The key laws and regulatlons we considered in this context included the UK Companies Act, and The Charities Act (Northern Ireland) 2008. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statemcnls but Loinpllance with which nY be fundamental to the Company's ability to operate or to avoid a material penalty. These included compliance with Financial Conduct Authority regulation for the UK operating segment and compliance with local legislation for the ov¢rscas OPLrating segments. Our procedures to respond to risks identified included the following: reviewing the financial statement disclosures and testing to supporting documentstion to assess compliance with provisions of r¢levant laws and regulations described as having a direct effect on the financial statements. enquiring of management and external legal Counsel concerning actual and potential litigation and claims. Page 19
HARMON12019 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF HARMONI 2019 (continued) perforniing analytical procedures to identify any unusual or unexpected Telationships that may indicate risks of material misstatement due to fraud. reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing regulatory correspondence" in addressing the risk of fraud through tnanagement override of ¢ontrols, testing the appropriateness of journal entri¢s and othew adjustments. assessing whether the judgements made in making accounting estimates are indicative of a potential bias. and evaluating the rational¢ of any significant transactions that are unusuat or outside the normal course of business. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and renmined alert tt) any indications of fraud or noncompliance with laws and regulations throughout the audit. Bee ofthe inhercnt limilations ofan audi¢ there is a riskthatwe will notdet all inEgul&ities, including t[Se leling to a material inisStatenttt in the financial sl*ements ornon.compliance with regulati(. This risk IreaseS tELe MO that compliance with a lawor regulation is removed from thecvents andtrajwdions tlected in the financial slatenH)ts, aswe will be less likely to become aware of instsnces ofTh)n.L(xnpltansx. The iisk is also water gardIng inv]ltieS O(tUJng due to fraud rntherthan enDr, as fiaud involves intentional concealnrt forgery, COU$11 OmilOn ormiswnlation. A fijrtherdwiplion ofour SP)nsibl11tieS is avallable ontheFinancial ReEy)rting Councll's website at: ,11411.$].c.oi.ll7£jIIdl1O1S1.¢Si)0jiSIb1Il1jQ,s. This d&scription fom]S Pthot'our auditor's re[. We communicate withthose charged withgovemance gardIn& ankmg other matter$ sig]ifiCantaIt findings, inc1]ngnY significant &fici&Ie$ in intemal control that we identify dwing our audit. U8eof0urrert This t%)rt is mth solely to the ch&itable company's membets, &8 abcxly, in rd&e with Chapter 3 ofPart16 ofthe Companic5 ALI 2006. Ouraudit WO has been Underten 50 that we inight state todK tharitsblc comtAny's members th08e matters we are required to stateto them inanauditOA s reportatKI for nr) otlYrpwp)se. To the fiJllestextent Fennitted by law, we do not accept or &55ume snsiblEity to anyone othcr than the clwitable company and the charitable company's members as a bcdy, for auditworl forthls rep)¢ or forthe opinions we have fomied. E)icJuJn Eimear Brown (Senior Statutory Auditor) For and on behalf of Baker Tilly Mooney Moore Registered Auditor 17 Clarendon Road Clarendon Dock Belfast DTI 3BG Date.. J6 SLUYLdoa3 Baker Tilly Mooney Moore is eligible to act as an auditor in ternis of section 1212 of the Companies Act 2006. Page 20
HARMONI 2019 (REGISTERED COMPANY NUMBER: R000316) (REGISTERED NORTHERN IRELAND CHARITY NUIVLBER: 101731) STATEMENT OF FINANCIAL ACTIVITIES (Incorporating tbe Income and Expenditllre Accoullt) FOR THE YEAR ElED 31 DECEMBER 2022 Notes Re8trieled Funds Unre8lri¢ted Funds 31.12.2022 Total 31.12.2021 TotAI INCOME & ENDOWMENTS FROM: Donations & Legacies 3.566 3.566 12,271 Investments 139,993 139.993 115.295 Charitabl¢ Activili¢s 961,256 2,536,220 3,497,476 3,165.429 Totil Income 961 256 2.679,779 3.641.035 3 292 995 EXPENDfTuRE ON.. Raising Funds- Investsnent Manag¢m¢al Costs 45,290 45.290 48,805 Raising Funds- Grant Fujthising 4,320 4,320 7.560 Charitable Activities 1.089,823 1,089,823 2,409,676 2.459.286 3.499.499 3.549,109 2,953,383 3.009,748 Tot#1 expenditure N¢t IExpenditure)nncome from operatlonal i¢tivitieJ (128.567) 220,493 91,926 283,247 G&inllLoss) on revajuallon of investment assets Net (Expenditsrelllneome 23 190 125 30,368 190 125 (98,199) 214331 497,578 (128,567) Transfer between fvndj 21&22 102,242 1102,242) Net movement In Funds (26,325) (71.874) (98.199) 497,578 R¢roncilla¢lon of Funds: Total Fund8 Brought Fonvard 21&22 188,084 6,646,995 6,835.079 6.337,501 TOTAL FUNDS CARRIED FORWARD 21&22 161759 6575 121 6 736 880 6 835 079 The statement of financial a¢tivities includes all gains and losses in the year. All incoming reyouroes expanded derive from continuing activities. Th¢ notes fom part of these financial stat¢ments. Page 21
HARMONI 2019 (REGISTERED COMPANY NUMBER: ROI)0316) (REGISTERED NORTHERN IRELAIYD CHARrrY IYUMBER: 101731) BALANCE SHEET 31 DECEMBER 2022 No¢es 31.12.2022 31.12.2021 FIXED ASSETS Tangible &8sets 2,590,045 1,699,504 4,2¥9.349 Investments 2.696,151 1.649,504 4,345.655 CURRENT ASSETS Sto¢k io .421 225,116 2,234.968 899,377 3,360,882 959 Debtors li Inv¢stments Cash at bank and in hand 176,758 2,500.803 815,148 3,493,668 12 CREDITORS Amounts falling due within one year 13 353 694 340 469 NET CURRENf ASSETS 3 007 188 3 153 199 TOTAL AETs LESS CURRENT LIABILITIES 7,296,737 7,498,854 CREDITORS Amounts tallin8 du¢ after more than on¢ year NET ASSETS 14 559 857 663 775 20 6 736 880 6 835 079 THE FUNDS OF THE CHARITY.. Restrleted Funds 21 161759 Unre51rieled Fundi R¢valu&tion Reserve General Fund 1.771,237 4,803,884 6.575,121 6,736.880 1,961,362 4.685,633 6,646.995 6.835.079 22 The financial staternents were authoris¢d for issue by the Board of Directors signed on its b f by.. and were Director- P Archer The notes forn] part of these financial statements. Page 22
HARMONI 2019 STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 DECEMBER 2022 31.12.2022 31.12.2021 CAsb generatedl {used) in operating activiti¢s- see Note 25 43,968 336,580 CAshflow8 from Investing Activiti¢8 PurclLase of tangible fix¢d assets Purchase of current osset investments Proceeds from sale of current asset inveslments Investment in¢ome Bank deposit interest Proceeds fi'om disposal of tangible fixed assets Cash receipts from rentals of investnenl properties CAsh (us1/prOvIded by Investing Activities (7,461) (120,865) 146,575 65,516 (10,565) (3.087,805) 2,973,805 42,008 74,495 158361) 73,286 (9271) Cishflows from flnaDcinE 4Ctivitie8 Repayment of bank loan Bank property finance loan intcrc8t L¢gACi¢S and Subscriptions N¢t casb g¢n¢ratedl(used) in finréncing activities (101.132) (20,433) 3.566 {117,999) (98.389) (23,190) 17.S16 (104,063} Increa8e in eash & ¢agh eqllivalents in the year Cash & cash equivalents at Ilie beginriing of Ihtt year C48h & ca&h eqnlval¢nts At the end of the year 84,229 815,148 899,377 223346 591,902 815,148 Analysi5 of casb & eAsh ¢quivAl¢nts Cash at bank and in hand Totil ¢i$h & cash equlvalenls 899.377 899,377 815,148 815,A48 Page 23
HARMONI 2019 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 I. ACCOUNTING POLICIES Bllsis of preparing the financial gtAt¢m¢nts The financial statements of this public benefit entity have been prepared in accordance with AGGounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Ihe Republic of Ireland (FRS 102) (effective l January 2015)- (Charites SORP (FRS 102). the Financial Reporting Standard applirable in the UK and the Republic of Ireland (FRS 102) and the Companies Act 2006. Fund Aecounting Unrestricted fund5 are available for use at the discretion of the directors in furtherance of the general objectives of ihe charity. Unrestricted funds include revaluation reserves r¢presenting th¢ r¢stat¢mellt of investment a$set5 (both fixed and current) al market values. Whilst ther¢ are none to date, Designated funds are unr¢stri¢ted funds ¢arniarked by the directors for particular purpos¢5. Re$tri¢ted funds re¢¢ivabl¢ from the Northern Ireland Housing Executive for th¢ir Supporting People Pro8ramrne operating in both Stricklands Bay and the M¢n's Hostel are subject to restrictions on their expenditure, imposed by the donor, Income All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can b¢ quantified with reasonable accuracy. The following specific policies are applied to particular categories of income,. Voluntary income is received by way of donations, legacies and gifts is included in full in the Statement of Financial Aetivities when receivable. Legacie5 are accounted for following ¢ntit]ement. Grants. where entitlement is not conditional on the delivery of & specific performance by the Charity, ar¢ recognised when the Gharity becorn¢s unconditionally entitled to the grant. Investment inrome is included when receivable. In¢omin8 resources from grants, where related to perforniance and speciflc deliverables. are accounted for as the charity earns the right to consideration by its performance- split between RestrÉ¢led and Unrestricted funds. Expenditure Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot b¢ fully recovered, and is reported as part of the expenditure to which it relates.. Raising funds ¢ost5 compris¢ the Costs associated with the charity's investment propety, ¢urrent asset investmenls and the cost of grant applications. Charitable expenditure Gomprises those costs incurred by the ¢harity in the delivery of its activiti¢s and Bervices for its beneficiaries. It includes both costs that Gan be allocated directly to such activities and those costs of an indirect nature necessary to support them - split between Restricted and Unrestricted fund5. Governance costs in¢lude those assoGiated with meeting the constitutional and statutory requtrements of the charity artd include the audit fees and costs linked to th¢ strategic management of the Gharity. All costs are allocated between the expenditure Gategories of the SOFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, Othe are apportioned on an appropriate basis as set out in Note 3. PaEe 24
HARMONI 2019 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 I. ACCOUNTING POLICIES (COlltinued} Tangible fixed assets (excludlng Investment property) Depreciation is provided at th¢ following annual rates in order to write off ¢a¢h ass¢1 over its estÉmat¢d useful life.. Freehold property Improvem¢nts to property Short leasehold - 2Yo on cost 1511/0 on cost IOO/ts on Cost Long leasehold Fixtur¢$ and fittings Motor vehicles 2Oh on cost IOO/o on cost 250/0 reducing balance 330/0 on c05t Computer equipment The cost of aBSets comprises purchase price And any installation charge5. Penslons Retirement benefits to certain current employees are Provided by a defined contribution pension scheme. under "Auto-Enrolment", whereby the assets are held separately from those of the charity in independenily adtninistered nds, The charity contributions are accounted for by charging costs against Surpluses as payments accrue. In addition, unfunded payments are made to Certain fonn¢r employees who were members of the old defmed benefit Scheme, which is now closed. These are charged as payments are made. The capital cost of continuing these payments, which has not been computed, is not reflected as a liability in the accounts. The accounting for unfunded pension payrnents is eonsidered to be an immaterial departsre from Financial Reporting SÉand&rd 102. Operatlng Leases Hamioni classifies the lease of office equipment as operating leases. The title to the equipment remains with tlle ILs¥or and Ihe ¢quipincnt is replaced periodically. RentAI charges are charged to the SOFA on a straight-line basis over the terni of the le&8e. Investment Propertles Investmeiit properties are initially measured at cost, including transaction costs. Subsequently those investrnent properties whos¢ fair value can be measured reliably are measured at fair value. Gains and losses arising from changes in the fair value of investment properties are recognised in th¢ revaluation reserve through gains/losses on revaluation of investments in the Statement of Financial Activities. Stock Stock held relates lo food stock held for the kitchen in M¢n'5 Hostel. Stock 15 valued at the lower of c05t and net r¢alisabl¢ valu¢, Page 25
HARMONI 2019 NOTES TO THE FINANCIAL STATEMEIYTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022 I. ACCOUNTING POLICIES (continued) Debtors Trdd¢ and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments ar¢ valued at the amoullt prepaid net of any trade disGount5 due. Creditors Creditors and provisions are )rcognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors ar¢ normally recognised at their scttlement amount aft¢r allowing for any tradc discounts due. Financial Instruments Harmoni only has financial assets find financial liabiliti¢s of a kind that qualify as basic financial instruments. Basic financial instrum¢nts are initially recognised at transaction value and subsequently me&sured at their s¢ttlement value. Current asset Investments Currenl asset invL'stmcnt5 urc rccogniscd initially at fair value, which is nomially the transaction price. Subsequently they are measured at fair value, with changes recognised in the revaluation reserve through gainsllosses on revaluation of investments in the Statement ofFinan¢ial ActivitiLs if the investments are publicly traded or their fair value can otherwise be measured reliably, Other investmenis are measured at fair value at the date of acquisition less impairnienl. Judgements and key sources of e8tlmatlon uneertAlnty The following judgments including those involving estimates have been made in the process of applying the above accoiinting policies that have had the most significani effect on Ihe amounls recogniscd in tl)c financial statements and that hvC a significant risk of causing a material adjustment to the crying amount5 of ass¢ts and liabilities within the next financial year: (i) Depreciation method and asset useful lives (li) Valuation of properties (iii) Impairment of &8sets The estirnates and assumptions are reviewed on an ongoing basis considering the Current and future market Conditions, Page 26
HARMONI 2019 NOTES TO THE FllYANCIAL STATEMENTS (continued) FOR THE YEAR EfiDED 31 DECEMBER 2022 2. INCOME 31.12.2022 31.12.2021 Unrestricted Funds: Donations and l*gAele$ Legacies and donations Subscriptions- Boys Brigade Gift Aid 3,566 11,466 805 Total voluntary income 3,566 12.271 Investment InLume Lnvcstment property rents Teceivable Bank deposit interest receivable Current ass¢1 inv&stment income 74,477 73,287 65.516 42.008 Total Investment Income 139,993 115,295 ncome from Activities to further the Charit '$ ob'ectives: Utility Street Men's Hostel Stricklands Bay Other Tot41 31.12.22 Total 31.12.21 Unrestrlcted Funds Residential receipts Payments from Health Trusts Payments from NtHE re housing Private Support Tncome SP Covid-19 Funding Other Il5,651 46,019 1,518,762 253,262 161,670 1,518,762 822,847 138,163 1,348.147 727,492 569,585 17,246 4,675 707 157 7,770 25,016 7,925 2,536 220 71.720 18,942 2 304 464 3,250 3,250 1825 813 Restrlcted Funds Payments from NIHE re Supporting People 450,949 Private Support In¢ome Ulster Garden Villages Grant Dormant Accounts Nt Fund National Lottcry - Covid-19 SP Covid-19 Funding National Lottery Community Fund Other Restricted Grants 354,549 39,808 805,498 39,808 738,432 35,470 32,551 32,551 16,275 65,921 3,500 520.370 65,921 17,478 961,256 65,921 4.867 860,965 13,978 408,335 32,551 TOTAL INCOME 3,641,035 3,292,995 Page 27
HARMON12019 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022 3. EXPENDITURE (incl. VAT where relevant) Utility Street Men's Hostel Strlcldands Bay Other Total 31.12.22 Total 31.12.21 Unrègtrirted Fuuds Costs direetly allocated to activitfies.. Staff costs Depreciation Other Loan inl¢rcst Support Costs allocated by lime to actlvitles.. Administration (incl. slaffcasts) 303,377 882 315,579 1,230.661 67.580 157,089 19,143 .534,038 69,154 480.061 19.143 1,255,600 69,735 386.066 21.699 692 7.393 66,676 686,514 217.804 1,692,277 284,480 2,386,876 281,104 2,014,204 8,085 External audit and accountancy - Current year Ext¢n)al audit and accountancy - prior y¢ar Internal audit Legal and professional 6,000 6,000 3.000 E3,800 22,800 2.409,676 3,000 14.328 23,328 2,037,532 Total Unrestrieted Expendltur¢ on ¢hArit4ble A¢tivi¢ieB Investment MAnagement Costs.. Re investment propcrty Re current asset investment5 31.299 13,991 45,290 33,062 15,743 48,805 Grant fundr#lglng eostg.. 4,320 7.560 Restricted Funds Costs dlrectly allocated to activities: Men's Hostsl Stricklands Bay Other Total 31.12.22 Tot41 31.12.21 Staff costs Depreciation Other Loan interest Support Cost5 8llDeated by tlme to ictivities: Administration (iplcl. staff cosls) 340,394 8,064 123,610 313,866 29.403 77,109 1.290 33,146 687,406 37,467 203,639 1,290 633,341 35,414 97,542 1,491 2.920 66.675 538,743 93,346 515,014 160,021 1,089,823 148,063 915,851 36,066 TOTAL EXPENDITURE 3.549.109 3,009,748 Page 28
HARMON12019 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022 4. STAFF COSTS 31.12.2022 31.12.2021 Wages and salaries Social security costs Other pen5ion8 Costs 2,332,857 164,843 55.745 2,553.445 2,005,125 145,238 52,525 2,202,888 The &veTage monthly number of employees during the year was as follows: Administrative staff Other slaff 31.12.2022 31.12.2021 79 87 78 86 Included above is £477,752 (2021: £290,248), whi¢h was paid during the year in respect of agency staff. During 2022, there was one employee with emoluments at the rate between £90,001 and £1 00,000 (2021.. one between £80.001 and £90,000). Remuneration of the 2 (2021: 3} key rnanagement personnel in the period was £153,500 (2021.. £195,467). 5. INCOME & EXPEY4DITURE Incorne and expendire (including VA T, where relevant) are stated after charging (¢rediting).' 31.12.2022 31.12.2021, D¢preciation- owned assets Loss on di8posal or rixed ass¢ts Operating l¢a5e Costs Extemal Aud & Acc$ ¢unrnt year Internal Audit Bank loan interest payable Income fiDm listed investments Directors. remuneration 113,567 49 4,393 6.000 3.000 23.190 42,008 4,393 6,000 3,000 20,433 65,516 6. TAXATION Analysis of the tAx charge Bling registered with both HMRC and the Chariiy Commission for Northern Ireland as a charity. no liability to UK corporation tax arose on ordinary activities for the year ended 31 December 2022. nor for th¢ year ended 31 Decernber 2021. NOTES TO THE FINANCIAL STATEMENTS (continued) Pa8e 29
HARMONI 2019 FOR THE YEAR ENDED 31 DECEMBER 2022 TANGIBLE FIXED ASSETS Freehold Property Short Leasehold Long Leasehold COST At January 2022 Additions Disposals 2,883,318 9.080 1,822.250 At 31 December 2022 2 883,318 1822 250 DEPRECIATION At l January 2022 Chargc for year Eliminated on disposal 911,211 61,082 9,080 1,151,878 36,180 972.293 At 31 De¢ember 2022 9,080 1,188,058 IYET BOOK VALUE At 31 December 2022 1911,025 634,192 At 31 Decetnber 2021 1972 107 670 372 TANGIBLE FIXED ASSETS (continued) Flxtures & Fittings Motor Vthiclei Computer Equipment Totals COST At January 2022 Additions Disposals 235,255 2,340 9,775 20,082 5,121 4,979,760 7,461 237,595 9,775 At 31 December 2022 25,203 4,987,221 DEPRECIA TION At l January 2022 Charge for yeur Eliminated on disposal 193,322 9,788 6,691 771 11,427 5,746 2,283,609 113,567 203,110 7,462 At 31 December 2022 17,173 2,397,176 NET BOOK VALUE At 31 D¢¢ember 2022 2 590 045 At 31 Decernber 2021 3.084 655 2696151 Page 30
HARMON12019 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022 FIXED ASSET INVESTMENT PROPERTIES Harnioni has two fixed asset property investments and a small ground reutal portfolio. The tnvestment properties at Donegall Pass were revalued at fair op¢n nwket value as of 8 March 2023 by Frazer Kidd & Partner5, Propety Con5uliants. The directors Gonsider this to b¢ a fair estimate of value as of 31 D¢Gemb¢r 2022. The investment properties at Derryvolgie Mews were revalued at fair open market value as of 8 March 2023 by Frazer Kidd & Partners. Property Consultants. The dir¢¢tors consider this to be a fair estimate of vaLue as of 31 December 2022. The directors are of the view that no Significant Change to fair open market valu¢ has arisen with the ground Tents in 2021 (or 2020). The movement is summarised as follows: . 8 Apartments (Derryvol8ie M¢ws) Other InveslmLnt Prop¢ty Ground Rents 2022 Totsl 2021 Tot*1 Value at Start of the year 1,470,000 175.000 4,504 1,649,504 ,624,504 Increase in value during th¢ year 50,000 Value at the end of the year 1500 000 699 504 1649 504 As part of its title to Derryvolgie Mews Harmoni holds th¢ only issued voting 'B' share in an aportment management company, Deryvolgie Mews Management Company Limited, incorporated in Northern Ireland to act as a pruperty management company for Harnioni's investment property "Derryvolgie Mews" 4 non-voting 'A' shares in the company have been issued to the owners of the other 4 aparthents which were previously sold by Harnloni. FINANCIAL tYSTRUMENI The fair valued carrying amounts of the Charity's financial instNments, being debtors, current asset investments, creditors and bank loans, are given in notes 11, 12, 13, 14 and 15. Th¢ only in¢ome from the charity's financial instruments is the bank deposit interest r¢ceAvable and Current asset investment income, as disclosed under investment inconie in note 2, The only expen8e assoGialed with the charity's financial instrument$ is the Stricklands Bay property bank loan interest, as disclosed in note 3. 10. STOCK 31.12.2022 31.12.2021 Kit¢hen stock at Men's Hostel 959 Page 31
HARMON12019 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022 I I. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.12.2022 31.12.2021 Trade Debtors Prepayments and aGcru¢d income 205.894 19,222 225.116 158,460 18,298 176,758 12. CUIUiENT ASSET FINANCIAL tNVESTMENTS 31.12.2022 31.12.2021 At start of year Additions Disposals sUlUSI(derIGIt) on disp05als- reAlised Unreali$¢d (deficit)/surplus At end of year fair market valuation 2,500,803 120,865 (146,575) {31,994) (208,131) 2,234,968 2,197,472 3,087,805 {2.973,805) 286,651 (97,320) 2,500,803 Current assets investments compTlSe'. Listed investments Oth¢i' investments 2,111,838 123,130 2,234,968 2,360,577 140,?26 2,500,803 Historical cost of current asset investments 2,234,968 2,500,803 The fair value of listed investments is determined by reference to their market value as at the balance sheet date as provided by the Investment Managers Evelyn Partners. The fair value of the other Inve$tsnents is rneasurcd at ft fair value on a¢quisition less impairnient. The inv¢stment management fees in r¢spect of the finanGial investments for 2022 were £13,991 (2021.. £15,743). 13. CREDITORS: AMOUNTS FALLING DUE WH[N ONE YEAR 31.12.2022 31.12.2021 Bank loans {s¢e note 15} Trade creditors Social security and other taxes Accrued expenses 103,917 72,579 31,849 145,349 353,694 101,131 65,368 30,913 143.057 340,469 Page 32
HARMONI 2019 NOTES TO THE FINANCIAL STA TEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022 14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR Bank Loans (see notc 15) 31.12.2022 31.12.2021 559 857 663 775 The bank loans are secured by a legal rnortgage over Harmoni's investhient property known a5 "Derryvolgie Mews" 15. LOANS An analysis of the maturity of loans is given below.. Amounts falling due within one year or on demand.. Bank loans 31.12.2022 31.12.2021 103 917 101 131 Amounts falling due between one and two years.. Bank loans: 1.2 years 103 917 101 131 Amounts falling due between two and five years.. Bunk loans.. 2-5 years 106 715 103 917 338 504 Aniounts falling due in more than five years.. Bank loans repayable in more than 5 years by instalments 329 254 114638 230 604 Interest Is payable on the original bank loan at 2,150A for 10 years. Interest is payable on a second bank loan At 40A for 10 years. 16. SECURED DEBTS The following secured debts are included within creditors: Bank Loans 31.12.2022 31.12.2021 663 774 764 906 663 774 764 906 The bank borrowings are s¢cured by a legal mortgage over Harmoni's investment propety known as "Derryvolgie Mews" and the development at Getgood House. Page 33
HARMONI 2019 NOTES TO THE FLYANCIAL STA TEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBF,R 2022 17. PENSION COMMITMENTS The company used to operate a defjned benefit pension scheme which has now been wound up. The pension obligations under the old scheme are met by purchased annuities. In addition, unfunded payments are made to certain forn)er ernployees. The company now operates a defined contribution scheme for certain current employees. The total pension costs for the year were £55,745 (2021.. £52.525). comprising pension scheme costs of £54,404 (2021.. £51.398) and unfunded pension payments of £1.341 (2021., £1,127). 18. TRANSACTIONS wmi DIRECTORS No director emoluments were paid during the year (2021 _ £Nil) There Were no transactions during th¢ year in which any direGtor or related party had an interest requiring disclosure. 19. LEGAL STATUS OF HARMONI HARMONI 2019 is a company limited by 8uarantee, not havin8 a share capital. Harn)oni htts tax-exempl status with HMRC as a charity and has also been registered As a charity by the Charity Cvmniission for Northern Ireland. Pa8e 34
HèlRMON12019 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022 20. ANALYSIS OF NET ASSETS BETWEEN FUNDS TAngible Fixed Assets Fixed Asset lttvtstm¢nts Net Curreot A&$ets Lo¥ Ter Li*bilities Totsl 2022 Unrestricted Funds: General Total 2020 2.553 648 1699 504 Restricted Fuuds.. NIHE Supporting People - Men's Hostel & Stri¢klands Care Village 2 882,372 S59 857 6.575 667 6.646 995 Siricklands Bay- Bangoi. Benevolent Society Men's Hostel_ NIHE Refvrb. Grant 2015 34,709 34,709 34,709 4.437 4,437 8,161 7,728 National Lottery Community Fund 23.181 30,909 34,862 53 Men's Hostel- Awards for All Grant 51,067 51,120 65,961 830 Men's Hostel- NIHE Refurb, Grant 2018 456 1.286 1,345 3.518 (1,576) 1,942 Ulster Garden Villages 3.183 18,685 Strlcklands Bay - Awards for All Grant 18,685 19,090 Dorniant Accounts Fund Nl 5,595 5,595 5,719 7,288 7,288 R,U.T.H 10,803 1,911 Belfast City Council- Equipment 1.911 2.499 3,672 (341) 3,331 At Ihe end of year 1,752 2 $90 045 1699,504 3 007 188 559 857 6 736 880 6 835 079 Page 35
HARMON12019 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022 21. MOVEMENTS tN RESTRICTED FUIWS At 31" December 2021 Net Movements ID Funds Tran$f¢r from Unrestrittd At31st December 2022 NIHE Supporting People- Men's Hosl¢l & Stri¢klands ca Village 34,709 {102,242) Stricklands Bay- Bangor B¢nevolent Society Men's Hostel- NIHB Refurb, Grant 2015 102,242 34,709 8,161 (3.724) 4,437 34,862 (3,953) Donnant Accounts Nl Fund 30.909 10,803 (3,515) Men'8 Hostel- Award$ ftir All Gi'unt 7.288 1,345 (124) Men's Hostel- NIHE Refurb Grant 2018 1,221 3,183 (630) National Lottery Community Fund 2,553 65,961 (14,841) Ulster G8]'den Villages 19,090 51,120 (405) Strickland5 Bay- Awards for All Grant 18.685 5,719 2.499 1,752 188.084 R.U,T,H B.C.C_ Equiprn¢nt At the end of year (125) (588) 1,580 (128,567) 5.594 3,332 102.242 161.759 22. MOVEMENTS IN UNRESTRICTED FUNDS Getser41 Fund Revaluatio Res¢rYe$ Total Unres¢ricted Funds 2022 Total Unrestricted Funds 2021 At lit January 2022 4,685,633 1,961.362 Net income on Operational Activities 6.646,995 6,202,335 220,493 Transfer to restricted funds 220.493 (102,242) 338,133 Investment revaluation (LossesYGains (102.242) (107,804) At 31 December 2022 (190.125) 1,771,237 4.803.884 (190,125) 6,575,121 214,331 6.646,99S Pa8e 36
HARMONI 2019 NOTES TO THE FINANCIAL STATEIVIENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022 23. ANALYSIS OF REVALUATION RESERVES Fixed Asset IDvestmen¢s Current Ass¢t Invutments Tot41 Investments TotAI At 1° Janu&ry 2022 Net gain/(loss) At 31" December 2022 1,126.218 50.000 1,176,218 835,144 (240,125) 595.019 1,961.362 (190.125) 1,771,237 ,961,362 (190,125) 1,771.237 2 OPERATtNG LEASE COMMITMENTS 2022 2021 Total future minimum lease payments under non-cancellable operdting le&8es fr¥r office equipment are as follows.. Not later than one year Later than one year and not later than fivc year5 Greater than five years 4,697 3,416 305 8,418 4,697 7,808 610 13,115 25. RECONCILIATION OF MOTrTMENT IN FUNDS TO NET CASHFLOW FROM OPERATllYG ACTlVI"fiES 2022 2021 Net movemeDt in funds - Net income from operational acttvities, as per Statement of Finaiicial Activities Add back: 91,926 283,247 Depreciation charge Lossl(Profit) on sale of tangible fixLd assets Bank property finance loan interest payable 113,567 111,617 49 23,190 Deduct: 20,433 Investment income shown in investing activities Legaci¢s alld subscriptions shown in financing Cash receipts from rentaLs from investment propertics Bank dep051t interest (65,516) (3,566) (74,495) (42,008) (17,516) {73,286) (In¢rease)/D¢crease in stock (462) 369 (Increase)IDecrease in debtors (48,358) 31,333 Increase in creditors. excluding bank borrowings Net Cash generated In operating aetivlties, as per Staiement of Cashflows 336 580 Page 37