HARMON12019 REPORT OF THE DIRECTORS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 REGJSTERED NUMBER: R0000316 (Northern Ireland) CHARITY COMMISSION for NORTHERN IRELAND REGISTRATION NUMBER: 101731
HARMON12019 CONTENTS OF THE FINANCIAL STATEIVIENTS FOR THE YEAR ENDED 31 DECEMBER 2023 CONTEwrs PAGE Company Inforniation ............................................................................................................................................ Report of tbe Director8 3-17 Report of th¢ Independent Audilor............................................................................................................. 18_ 20 Statement of Financial Aetivides 21 Balance Sheet ............................................................................................................................................,.......... 22 Statement of Cashflows .......,........,,....................................................................,..........................................,,.... 23 Notes to the FIDaneial Statements .24-37 Page I
HARMONI 2019 COMPANY INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2023 DIRECTORS.. Mr Paul Archer (Appointed Chairman from 28 March 2023) Mr D Mcllhagger Bsc, FIAE (Deputy Chair) Mr Brian Lavcry Mr P Regan Mr Paul Collins Mrs Hannah Irwin Mrs Elaine Colgan (resigned 28, November 2023) Ms Amira Graham (resTgned 27 ' November 2023) Dr Joanne Drew {appointed 12, February 2024) Mr liobert Lyle (appointed 12111 February 2024) Mrs Elizabeth Mary Kerr (appointed I" March 2024) SECRETARY: Mr S A Humphries REGISTERED OFFICE: 39 Downshire Road Bangor Co Down BT20 3RD REGISTRAR OF COMPANIES NUMBER: R0000316 (Northern Ireland) CHARITY COMMISSION NORTHERN IRELAND NUMBER: 101731 AUDITORS: Baker Tilly Mooney Moore 17 Clarendon Road Clarendon Dock Belfast BTI 3BG BANKERS: Northern Bank Limited t/a Danske Bank Donegall Sq We81 Belfa8t BTI 6JS INVESTMENT ADVISORS: Evelyn Partners The Ewart 3 Bedford St Belf8St BT2 7EP SOLICITORS.. Cleaver Fulton & Rankin 50 Bedford Street BelfasÉ BT2 7FW Page 2
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2023 FORWARD l am pleased to present on behalf of the Trustees of Harmonl 2019 the annual report and accounts for the year 1st January 2023 to 3 I, December 2023. This marks my first full year in office as Chair foi. th¢ organisation. l am indebted to my colleagues on the Board for their interest and commitinent to guide the woi'lc of Hai'monl. I am equally ind¢bted to the CEO and the executive team for IE]eir efforts in what wntinues to be very changeable circumst&ncc5, not least of all financially, We like most charitable organisations are at the merGy of single year budget allocations from our key statutory commissioners, this can make long term decision making and planning difficult, Notwithstanding we have a long and we believe mutually positive relationship with both the South Eastern Health and Social Care TrLtst (SEHSCT) and the Noithern Ireland Housing Executive (NIHE) and we aGknowl¢dgc their continuing engagement and contracting of s¢rvi¢es with us. When we commenced the financial y¢ar the budget expectations were extremely ehallenging. l am however delighted lo note the in-year uplifts which were more realistic than we could budget for. We undcrstand that botli the Department of Health through th¢ SLIISCT and the Department for Communities through the NIHE r¢Gognise that our sectors have for many yeRrg experienced significartl compression with costs rising faster than incomes. We want to acknowledge that r¢cogt)ition and while we again note the budget issues The Stormont Assembly has to juggle, we do hope the momentutn in this area be maintained. That in no way detra¢is from the efforts of tlie executive team in Hamionl who navigate those finanoially Challenging waters routinely. The one k¢y element throughout the 145 years of this charity's existence has been noted as one of tenacity in ihe face of uncertainty and we can ceittainly see that from ih¢ Board to the front-line staff. Those front-line colleagues deliver gerviceB lo our client groups in equally bul very different challenges daily. So, on behalf of the Board. I want to thank our front-line colleagues who alongsidty thcir colleagues in the support elernenls surh as administration, HIL and finance form part of what has become a very well-oiled and effectiv¢ delivery system. A system which has at its heart the beneficiai'ies and their needs. Our CEO regularly reminds us all that the only reason Harn)onl exists is that we have clients who need us, clients who live with multiple disabilities or societal disadvantages, clients who place their trust in us. To Ihosc clients whether they come from Stricklands Care Village, or the Men's Hostel at Utility Street I say thank you once again foi. trusting us to support and care for your needs. As l close this element of th¢ repoit, I would pick out one particularly encouraging indicator which was initiated during 2023. The Boai'd agi-eed to rekindl¢ our developlnent processes and stsrt prospecting for a next stage of service delivery. Undoubtedly it will take some tiine fi'om inccption lo delivery but every journey begins with the fjrst slep, all of which is a response to our core mantr4"To do more for More!)I PaulArcher- Chnlrman Page 3
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT Governing Document The legal entity name was changed on 8di January 2019 fi'om NIID to HAiiMON12019 Ti'ading as Hartnonl. HARMON12019 has its origins in late 19th century Belfast. It was incorporated on 19 July 1906 as a charitable Conlpany liinited by guarantee and not having a shw'e capital. The objects and powers of HARMON12019 are set out in the Memoranduin of AssoeiatiotL and the Company 15 governed undei. tts Articles of Association, as updated in 2014 and registered on 28111 March 2014. In the event of the Company being wound up Members are requii'ed to conti'ibute an amount not exceeding £1.00. HARMON12019 is on the Noi'thern Ireland Charity Register, registration numbei 101731. Since registration, the Director Ti'ustees have embarked and maintained pei'iodic specific training along with the Manageinent teain to understand fully the implications, respon5ibilitics and ¢xp¢ctations of HAIiMON12019, the Trustees and the Management who operate under delegated authority. In September 2023 we inttiated a review of our ourrent articles steered by a working group from the Boai'd and supported by our legal advisors at Cleaver Fulton and Rankin we aim to complete this exercise in e.lY 2024. The scope of that work is limited to an updating and refreshing exercise. Dlre¢tors.' Recruitment and appolntment.of directors Under the requil'ements of the Articles of Association a5 revised in March 2014, the dii'ectors are ti'ustees of the Charity and are known as MeiTtbei's of Coun¢il. From that revision date, Director Ti'ustees serve for 4 years dated from the fiJ'5t AGM at which they are voted in, they are eligible to serve up to three te1Th5 of four years at which point they must retire. The date cycle is from their first AGM to theii. fouith AGM. Name of Dlrector Trustee Appointment Date Èxpe¢ted term end ACM date ISI term chair June 2026 Archer, Paul (Chair) 28th March 2023 M¢Ilhagger, David 30ttL June 2010 (NED) Chair May 2014 - Dec 2020 Appointed Deputy Chair 181 Jan 2020 (Deputy Chair) June 2026 Reagan, Peter 29EII October 2014 June 2027 Laveiy, Brian 181h May 2020 Jun¢ 2024 Itr Irwin, Hannah 15 June 2020 June 2024 Collins, Paul 15th June 2020 June 2024 Colgan, Elaine 281h July 2021 5th November 2021 Resigned 28 November 2023 Graham, Amii'a Resigned 271h November 2023 Drew, Joanne 12th February 2024 12th February 2024 IEt March 2024 June 2028 Lyle, Robert June 2028 Kerr, Elizabeth Mary June 2028 Page 4
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2023 STRUCTURE, GOVERNANCE AND IVJANAGEMENT con¢inued Direclor Trnslees durlng reporfingpériod No Meinber of the Boai'd of Director Trustees had a beneficial intei'est in any contract with HARMON12019 during th¢ year. SUCCS1on Planning.. HarmonJ continues to manage the need for sucoession in the following manner". l.. Trustee appointments are phased in so far as possible so as not to risk a significant numbei. of multiple Trustees ending their tenure simultaneously. 2: Froin 1st January 2020 the board of trustees have created a deputy chair role to ensure that in the event of the chair being unavailable thei'e remains a line of consÉstency in the chartty goveiYMnoe. 3: The Chaii. of the Finance and General Pui'poseg Committee is generally not the chair of the full board to ensui'e a degree of separation and independence. Trustee Inéluctlom and Iralnlng Trustees are aware of the practical work of HARMONI 2019 at the hostel in Belfast and Strickland's Cal'e Village in Bangor, New trustees are expected to attend an infoiynation session to familiai'ise themselv¢s with how HARMONI 2019 operates. Thes¢ are jointly led by the Chair of the Board and the Chief Executive of HARMONI 2019 and cover the following: The obligations of the Trustee Directors The Aiticles of Association The financial position as set out in the latest published account5 Future plans and objectives New trustees i'eceive copies of the Articles of Association, the latest financial statements, the currcnt strategic plan and a copy of Ihe Code of Good Governance produced by NICVA. Thcy then ineet the CEO and undertake a half day induction process to provide information on the charity function. To ensure that trustees have up to date knowledge regarding charity management 15sue8 and the impact of changes in the public sector it is expected that trustees will have the opportunity to attend suitable training and infomiation events. The CEO disseminates all i'egulatory guidance to ti'ustees as it is received by the charity. Risk mvdnagernent The Board of DiCtOr Trustees continues to review the majoi. risks to which HARMONI 2019 is exposed. The risk manageinent strategy for HARMON12019 is one which seeks 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 i-isk framewoi'k seeks to firstly identify the organisational risk appetite, over a range from low, medium or high appetite. The Board of Trustees receive regular updates to the risk register. This process allows the board to see pei'tinent coi'porate risks, these i'isks are categorised with probability and impact scores &s High, Medium or Low risk. This measurement is designed to identify risks that require iinmediat¢ attention and mitigation, and those that need atterttio but are less immediate. Page 5
HARMON12019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT (continued) Each risk is then identified with a risk owner and a mitigation plan narrative provided. Each updats of the register identifies new risks and changes in the Previous risks due to the effects of the planned mitigation oi. other external ircumstances. The core risks for 2023 were identified as.. Budget Delivery.. At the outset of the year anned with limited knowledge on any possible uplift potential frorn our core statutory partner5 foi. the services delivered, tbe budget presented as a woi'st-case scenario was a significant deficit. As ever the CEO and executive team produced a mitigation plan to Identify key activlty and tasks to miniini$e this risk. We are glad to report that duc to an improvement in employed staff irsouires compared to thc agency potential budgeted coupled with significantly better than expected uplifts from The Trust and NIHE we returnLd a positive surplus result for the undei'lying business of the clwity. Fundlng Compi'ession: On the income side as a iEsult of no uplift for many Yea from Supporting People oupled with historic low inci'ements from the Trust for sei'vices delivered the income inci'ements required to meet the spiialling costs had no degree of certainty. On the cost side between the greater than inflatfion rises for National Living Wage which impacts 900/0 of our workforce and continued increase in overall costs such as energy the year continued to be one in which the compression reality continued. Staff resources: As we Started the 2023 year we had notcd a small increinent in employment foi. staff parti¢ulai'ly in oui. Stricklands cal'e Village. That eontinued foi. the first quarter of 2023 which ¢ased the need for agency. However, that plateaued into quarter 2 and 3 of the year leaving us with a need to still call on agency. One initigation we have initiated in the year is to ensure we have a negotiated position with the fundei's particularly where a new client is involved as we now are asking for the Trust to fund staffing levels at agency plus a central ¢onti'ibution rate until we secure our own staff. We have also again attempted to re-engagc with the Trust in respect to i'ebalancing some of our clients care hour baselines whose conti'arted hours r¢quir¢d have outstripped the care hours contracted. Procedures al'e IL] place to ensuj'e compliance with health and safety of staff, suppliei's, volunteers, clients and visitors to the Hostel and Stri¢kland'5 Care Villase. Page 6
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2023 STRUCTURE, GOVEREYANCE & MANAGEMENT (continued) Orgftnislltional struclure The Board 5¢hedules foul. meetings a year and is responsible for the strategic direction and policy of HARMONI 2019. The Ti'ustees coine fi'om a v.lety of professional backgrounds relevant to the work of HARMONI 2019. The Finance and GerLei'al Puiposes Coininittee meets a week prior to the Board and i'ecorded foul. meetings in 2023. This continues to include the Annual Report and Accounts presentation to the coinmittee by the Auditois. The developinent committee, which is a project-bas¢d committee, did not meet in 2023 due to there being no relevant business before the coinmittee. Responsibility for operations management is delegated to th¢ Chief Executive. Governance: The Boai'd will forinally meet a minimum of 3 times in the year to take ¢aiE of the ordinary business of the charity and its governance i'equirements. The boai'd also i'eceives a detailed sub repoit on Health and Saf¢ty, Safeguarding and Deprivation of Libety issues if any have arisen. They will meet at othei. times for special topics meetings as and when reqLllI'ed. The Sub Committee of the Finance and Genei'al Purposes Committee will normally meet one week in advance of each fonnal board. The Development Comjnittee will meet as required to meet the needs of the project tiineline. Corporate Oversight: The Senior Management Team Ineets regularly to ensiii'e the management i)f the main corpoi'ate needs are being met, A key clement of this discussion will be the budgeis, actuals, and variances we al'e experiencing and what controls or change5 we need to effect in order to keep the organi5ation on track. We will also i'eview pi'ogress in respect to recruitment and ietention Foi. our services, Corporate Management: The Unit Managers will ineet with members of the Senior Team as i'equired to review the performance of the overdll business with specific input froin the unit heads. These discussions include the regulatory and compliance elements from the nderS and commissioners of the services and also key safeguarding issues. Operation$ Management: A member of the Senioi Team meets their direct line management team as needed to review and discus$ operational isgues and take any operational decisions arising. Page 7
HARMON12019 RF,PORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2023 STRUCTURE, GOVERNANCE & MANAGEMENT (contlnued) The operational organisation structure.. .B04 ManaE¢r Keysio Ul* Sqnl¢rSvppM Page 8
HARMONI 2019 REPORT OFTHE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2023 STRUCTURE, GOVERNANC'E & MANAGEMENT (continued) Related parties HARMONI 2019 did not have any dealings during 2021 with any companie5 01. othei. organisations in which any of the directors have an interest. OBJECTtVES AND ACTIVITIES The pi'incipal objects, as updated, of HARMONI 2019 are to: _ To relieve poverty, illness, sickness and suffering of people who al'e in need by i'eason of sickness, disability, poverty or social and econoinic circumstance ('the benefIciaries). To advance the intei'ests of benefi¢iai'ies by all means including, bul not limited to, theii. Closer integratiort into wider society. In the inteiTsts of social welfare to provide or assist in the provision of suppoited housing facilities or other services, such as nui'sing care or domiciliary care, which improve the conditions of life of the benefLciaries and provide or assist in the provision of respite care or other support foi, carers of the beneficiaries. To advance the education of the beneficiarieg and educate and raise awaitness among the public of i8sues peitaining to social welfaiE and people with disabilities. To relieve sickness and poverty of elderly disabled sick or injured p¢rsons and theii. carers by offering assistance to enable those in need to secure respite care. Such other exclusively charitable pui'poses according to the18w of Northern li'eland for the beneficiaries as the Trustees inay from time to time decide. Strickland's CaiE Village located in Bangor provides accoinmodation in thirty-three separate units for those individuals living with a disability and needing support and care at various levels depending on assessed need. The Belfast h05tel provides einergency accommodation for fjfty-nine men experiencing homelessness with one room specifically renovated for men with disabilities. The men are supported and encoui'aged to irnprove theii. situation by taking the necessary steps to move on to training opportunities and employment, and to Pernnent accommodation. There is close ¢oopci'ation with the statutory authorities and the Noithern Ireland Housing Executive. Page 9
HARMONI 2019 REPORT OF THE DtRECTORS FOR THE YEAR ENDED 31 DECEMBER 2023 STRATEGIC REPORT: ACHIEVEMENT & PERFORMANCE STRATEGIC REPORT Aehievements and Performanee OrganIslI0l.. A significant achievement organisationally for 2023 was the ability to reverse the potential deficit to a surplus. Thi5 was derived fi,om some 15 initigation actions by the Executive coupled with better-than-expe¢ted tnciEases froin the Ti'ust. There was also a tully unexpected inclement in Supporting People funding, the first in 16 years. The second and for a inission driven organisation such as Haiinoni 2019 equally as important was the Social Return on Investment outcoine. Once again, we weir pri?vided access to the Social Value Engine Exei'cise operated by Work West thi'ough grant support of North Down and Ai'ds Soeial Entei'pi'ise Suppoit Fund. We gi'ateful to the council for this support. That exercise showed tILat as an oi'ganisation for evel'y £1 invested we retui'ned £3.15 in social and economic value, We have always believed &s a charitable organisation we added valiie to people living with a disability or societal disadvantage, this measui'e helps to provide a metric to confii'm that. Slricklancls Care Vllldge.. 2023 was a year in which we expei'ienced the loss of a number of our long-tei'm clients. One Glient required nursing care which is uutside oui. servlce delivery capability. Then in the last quarter of the yeai. we lost two of our oldest residents who passed away in November and December. It was tEuough these Challeiiging day5 for staff that the quality of the values based i'ecruitment and retention sti'ategies showed theii. worth, coupled with the professional trainlng our statyreceive amiually we were able to see a stOlCAsm in our front line staff as they dealt wtth the loss but set aside their pei'sonal feelings to continue to deliver to the remaining cllents. We have been able to i'efocus oui. attempts to pi'ovide greatei, one to one time with our clients as we attempted to b¢ more focussed on their wants and aspirations this yeai. without the haiigover of Covid limitations, This showed in the contentment expressed by our clients. We were also pleasantly surprised when the SoLial Value Engine I'eturn showed us that our staff had delivered over 33,000 support sessions across the yeai.. Our maintenance progranune continLies to ensure the clients homes are maintained to the high standards we aspire to for them. Stricklands Care Village again i'eceived a positive RQIA report in 2023 following an unannounced inspection with just one procedural improvement suggestion. Page 10
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2023 STRATEGIC REPORT: ACHIEVEMENT & PERFORMANCE (continued) Ulillty Street Hoslel.. This year some 206 Inen were supported to exit homelessness through the work of the Hostsl. It should be mol'e but due to tlie wider systein silting up as people experiencing homelessness having reduced move on options due to highej. rents p'ticularlY in the privats rented seotoi., our clients were 5tsying longer. In spite of this, 65 m¢n were suppoited through a coinbination of the day-to-day suppoit activity of our front-line support staff and the direct support activity of Keys to Life, Our Keys to life pr()gramine which was funded for three Y.8 by the National Lottery Cominunity Fund drew to close. We want to ackniowledge and thank the National Lottery for iheir enabliiig funding. The outcomes for tlie pi'ogramine are impressive especially when one considers the transient nature of our client group and the impact of Covid on what was a socialisation-based pi'ogramme.. Over 80 men took part (target was 96) with 600/1 achieving an award certificate oi. an accreditation. 30 men took part in activities outside the hostel. 45 men attended skills courses some achieving multiple certificates. 21 men completed employment preparatioii training. 20 men undeitook a Wellncss prugramme witli 9 staying the course to the end. 12 men achieved a food hygiene programme and award, 30 Ineii uiidertook TEFL courses. As their primary language was iiot Engjish this Teaching English aiid Foreign Language course was very popiilar. 9 men achieved awards in OCN level 2 for Healthy living. 6 men built the sensory garden in Bangor. 12 men took pait in the Toolbox prograinme to learn new skills for inaintenance and repair of houseliold-based items. Publi¢ Benefit The dire¢toi's confm that they have had due regard for the guidance produced on Public Benefit by the Charity Commission foi. Northern Ireland, and are pleaged to report that during 2023 they have continued to meet the Public Benefit i'equitement as follows: The core activity foi. HARMON12019 is the relief of povety, illness, 8ickne8s and suffering to those living with sickness, disability, poverty or social ci5tumstances. All our enEagement activities hav¢ been with individuals from one or a range of these groups. The organisation h&8 sought to revive these impacts firstly by providing suitable and appropriate accoinmodation, be that in Supported Independent living oi. Hostel provision. The oi'ganisation sees that provision as the start of our service intervention. From that point forward, we seek to create a person-centred provision that is cognisant of the individual's need. Many of oui. residents and service users have those needs identified through pi'ofessional assessment, either from the health care trusts or other so¢ial servires. For others it is the skfill and experienc¢ of the support staff which ssists the individual to aiticulate those needs. Page 11
HARMONI 2019 REPORT OF THE DtRECTORS FOR THE YEAR ENDED 31 DECEMBER 2023 STRA TEGIC REPORT . ACHIEVEMENT & PERFORMANCE (Continued) Our core model reinains accommodation-based care and support, subject to the service engageinent. We continue to believe that the most impoitant element for all our clients i'einains ¢nsiiring a safe and s¢¢ur¢ place to live. This delivers consistency in what has for som¢ of our clients been a chaotic life to date. Th05¢ for whoin the need is centred on personal ¢are are pi'ovided a bespoke care and support daily living plan which Centt'es around their personal needs. This is aahieved in conjunction with the South Et Health Trust cal'e management teams to ensui'e the assessed needs 'e rnet. Next of kin and family pi'ovide valuable input to those requirements in the cal'e plan developinent stage. Fuither suppoits at'e designed which enable the client to live as independcntly as they wish or are capable of. All these plans are siibj¢ct to regular review and updating as circumstances change. Those for whoin support is the col'e focus of our engagement will receive a personal 5UPPOrt plan which aims to assist them in achieving their shoit-term goals which al'e aimed at delivering a longer term goal, in the case of oui. clÈents in Utility street this is independent living in a place of their choosing. For many of our service users the reality is that their experience with HARMON12019 is about small steps and personal capacity i capability building, Many of our i'esidents and families have seen a Inarked improvement in the individuals, engagement and socialisation skills and their ability to communicate theii. wants and needs pei'sonally. HARMONI 2019 works Closely with multiple Statutory bodie5 to ensure we plan for and deliver suitable and successful outcomes for each and evely one of OLir service usei'5. This joined up approach ensui'es that the overall publi¢ benefit is delivered where sei'vice usei's have longevity and consistency and therefore *nd not to move between other agencies or sei'vice provisions. Page 12
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2023 FINANCIAL REVIEW HARMON12019 is a unique ol'ganisatio not least because of the diverse natui'e of the service usei's but also because of the blended funding sources for our service delivery. Hartnoni is very grate1 to the Northein li'eland Housing Executive and the SoLlth-Eastei'n Health and Social Cal'e TrusL being the principal funders of these activities. The directors note that there is a total Net Income for 2023 of £199,159, compared to Net Expenditte of £98,199 in 2022. The directors also note that the charity remains in positive position in terms of generation of a surplus from opei'ating activities. 2023 saw Nel Income froin Opei'ational Activities of £77,357, with a figui'e of £91,926 reflected in 2022. The Lnain points of note are- Incoming Re8ource5 have increased by £72,343 (1.990/.) Increase in investinent incoine of £7,318 (In¢rea5e of 5.22 %). Increase in income fi'om ch'Itable activities of £64,500 (Increase of1.840/0). Much of this increase relates to inflationary uplifts Harmoni i'e¢eived in i'espect of soine funding streains. Expenditure has inci'eased by £86,912 (2.45D/o) Incre&8e in expenditur¢ on charitable activities of £79,973 (2.290/0), Costs Continued to increase across all departinenls and expense types, with (uriher increases in utility costs, insurance and food. Increased reci'uitmeiit did howevei. Inean that we were ablc to reduce agency cosls even in the face of rising national living wage levels. In 2023 the organi9ation Saw a gain on the i'evaluation of investment assets of £121,802. This i'elates to the value of CUlTent asset investments (gain on revaluation of £66,802) and the revaluation on fixed asset investments meant an uplift in the value of the propei'ties held of £55,000, The net effect of these movements is that the charity i'eturned a Net Income figure of £l99,159 in 2023. This gives reserves carried forward on the balance sheet at the end of the year comprising Restricted Funds ¢Tled forward of £65,414 (2022; £161,759) and Unrestricted Funds of £6,870,625 (2021.. £6,575,121). The Unrestricted funds carried forward comprise Investment Revaluation Resei'ves of £1,893,039 and Genei?l Funds of £4,977,586, The balance sheet of the charity remains sti'ong, with current assets, including current asset investments, comtortably exceeding current liabilities by £3,149,686. Page 13
HARMOM 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2023 FINANCIAL REVIEW (continued) During the year, our income came from the following sources: Income for the year ended 31 December 2023 Donations & Legacles - Investment5 Charitable ActSvlties 96% Donations & Le8acies o Investments Charitable Activities This income then allowed us to achieve our aims and objectives for the organisation through making the following expenditure: Expenditure for the year ended 31 December 2023 Investment Mgt Costs 1% Grant Fundralslng charitable Activltles 99% ,") Investment Mgt Costs Grant Fundraising Charitable Activitie5 Page 14
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2023 Reserves Policy HARMON12019 aims to maintain a level of resources that Inatch the needs of the oi'ganisation, both now, and in the foreseeable future. The two main objectives are that- a. the available reseives ensui'e that the activities of the organisation could Continue in the face of any unexpected reduction in, oi. loss of, a particular income stream, while allowing the oi'ganisation time to seek altei'native fiinds or restructurelcut costs, b. the available reserves allow the oi'ganisation to progress with the organisational developinent plan laid out in the strategic plan 2022-2025. The Directors assess the risk5 that HARMON12019 could be exposed to, and the appi'opi'iate level of reserves that should be maintained. The current assessment of the target l'ange of free resei'ves - fvnds that are freely available to be used for general charitable pui'poses - 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 can'ying out their assessment of reserves the Dii'ectors exclude the fixed asset fund of £2.5m because this repi'esents functional, operational tLssets within the organisation that could not be realiscd quicklyi restricted rebei'ves of £0.065in wliich have restrictions plaLed ovei. the use of funds by the individual funders, and the investment pi'operty value of £1.55m which is used as mortgage security for the original long-lerm loan. After excluding the fixed asset fund this leaves free reserves of £2,84m. In the strategic plan 2022-2025 the Directors have identified sevei'al key projects to investigate, They hav¢ also identified the need to build and maintain appropriate I'eserves lo Carry out tliese plans. This is to ensure that the organisatioii can grow and develop while maintaining the range of serviceslactivities, and in tiine the reserves should I'eturn to a level equivalent to the equivalent of 6 months running costs. Investment Polley The Directors have agreed an investment policy within the powers pi'ovided to them under the Articles of Association of the organisation. The organisation has a long-establi5hed balanced approach tOw'dS inve5ttnent risk, with the need to both pi'otect and gl'ow the charities &ssets for all sei'vice usei's, Therefoi'e, the Direotoi's define the organisation's expected investment pi'oftle to be balanced, with a desire to giDw, but also pi'otect the capitsl invested, whilst pi'oviding a use1 soui'ce of incoine fj'om dividends. The Directors wish the portfolio to itpresent a balanced spread of inv¢stments in equities and fixed inkrest securities and bonds. The investment portfolio was managed during the year under review by Evelyn and Partners alongside Abrdn (formerly Aberdeen Standard Capital) (on behalf of the Noithern Ireland Centi'al Investment Fund for Charities). All are pi'ofe5sional inv¢5tment InageMellt Companies in good standing and regulated by the Financial Conduct Authority, As a charity with a stt'ong Evangelical Christian heritage, the ethos of which casts a guiding shadow aci'oss the organisation's moral position, the Directoi's have advised the investinent managers that the organisation do not wish to invest in the following: Alcohol or tobacco trades Arms and munitions trades The perfoiinance of the investment poitfolio is monitored regularly by the Director5. In the yeai. under i'eview the investments continued to perform well and in line with objectives, providing a good level of dividend income. Page 15
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2023 (continued) PLANS FOR FUTURE DEVELOPMENT Oui. 2022 strategic plan was purposely entitled Research, Knowledge, Action. The Ti'ustees understood that future development decisions of either services oi. facilities needed to be urtderpinned by solid actionable i'esearch. The Doi'mant Account fund has enabled Hai'moni to have the facility of an in-house i'esearch associate and because of theii. inputs tn June 2023 the Ti'iistees were able to appi'ove oui. fii'st prospecting exercise since 2019, Following a joint research exercise between Queens univeIty Business School and our In-House iysearcli associate a position papei. was tabled showing that thei'e was a genutne need fot, day sei'vices or day opportuniti¢s in our catchment area. Armed with that inai'ket knowledge we agrced to take the next steps and produce an archit¢¢tural specification and then comtni5sion a feasibility study on the possible physical build requii'ed to ineet the client n¢¢d5, This study will be presented in early 2024. We have other aspirations too in respect to our Homelessness intei'vention services. We have long held aspirations of development at our Donegal Pass site and in early 2023 we were able to meet the proposed ai'ea development housing association to see if we could align plans. While not ar] iinmediate success the door reinains open to future engagement and discussion as they start on their 3-5 yew. developinent joumey for the ai'ea Ainmediately adjacent to oui. Donegal Pass facility. Allied to the foregoing we have initiated the idea of a Strategic Fundraising Committee establishment as a committee undei. the Boai'd to assist us find a means to facilitate and enable our ideas and aspii'ations and capital capacity to fiind those ideas subject to robust business case presentation. THANKS AND APPRECIATION HARMONI 2019 would like to pla¢¢ on ircoi'd theii. thanks and appreciation for., The Continued fvnding provided by the Health Trusts and the Northern Ireland Housing Executive towards the Cogt of providing vital services in Strickland's Care Village and the Men's Hostel. The National Lottei'y Coinmunity Fund for the funding to operate Key5 to Life project. The Dorniant Accounts Fund Nl for the funding to facilitate the research pi'oject. The Ardbonnon Trust who provided grani to help equip the hostel dining facility to update the environment. Those many organisations and individua15 who made donations of money> goods and time to the clients at the Flostel. Page 16
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2023 (contlnued) FIXED ASSETS Details of fixed asset movement in the y¢ar are given in note 7 to the fAlle1a1 Statements. Although the market value of the operational property is comfortably in ¢xcess of its amortised historic cost, the difference is not f¢lt to be of significance to members. FAIR EMPLOYMENT The charity is Committed to a policy of equal opportunities for all current and future employees. This policy also includes compliance with the Sex Dis¢rimination (NI) Orders 1976 and 1988 and the Disability Discriminatioii Act 1995. These policies are incorporated into the Equal Opportunity of Employmenl Guidelines that are adhered to by the Charity. STATEMENT OF DIRECTORS, RESPONSIBILITIES The directors are responsible for preparing the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Company law requires thc directors to prepare financial ststem¢nts for each financial year which give a true and fair view of the slate of affairs of the company and of the profit or loss of the compaiiy for that period. In preparin¥ those fInancial statements, the directors are required to select suitable accounting policies and then apply Ihem consistently. make judgements and estimat¥5 that are reasonable and prudent. prepare the financial statements on the going con¢¢rn basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping proper accounting records which disclose with reasonable ac¢ura¢y at any time the financial position of the company and to enabl¢ them to ensure that the financial 5tatemenls comply with th¢ Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of frdud and other trr¢gularities. REPORT AND FINANCIAL STATEMENTS Thi5 report and financial statements have been prepared in accordance with the Statement of Recommended Praclice: Accounting and Reporting by Charities and in aecordance with the Companies Act 2006. AUDIT The directors have sought to mak¢ themselves aware of any relevant audit inforniation and to establish that the auditors are aware of that inforniation. Insofar as the board is awar¢ there 1$ no relevant audit inforniation of which the company's auditors are unaware. AUDITOR The external audit asBignment fr>r 2022 and the subsequent 5 years has been awarded to Baker Tilley Mooney Moore after an open cornpetitive bid process. ON BEHALF OF THE BOARD.. SA Humphries - Secretary Date.. Page 17
HARMON12019 INDEPENDENT AUDITOR?S REPORT TO THE TRUSTEES OF HARMONI 2019 Opin We have audited the finan¢ial statsments ofHARMONI 2019 (the 'charitable company,) forthe yffdrcnd 31 De£einber2023 whi¢h comprise the Slaternent ofFinancial Activitie4 the Balance SheeL the Statementof Cashflows and Th)tes to the fjnancial statetnenl4 iiicluding significant accounting p)licies, The financia] rting framework thathas been applied inthell. PreptiOn is app]i(xble18w and United Kingdom Accounting Standards, including Financial Repoiting Standard 102 The Fin8ncial Reportu]g Standatd applicable in the UK and Republi¢ of I[alKI (United Kingdom Generntly AcceptedAccountllig Practi). In our opinion the firmla1 slatements: give a true and fdu. viewofthe state ofthe charitable company's affairs as at 31 Dlr2023 aThl ofits incoming resources and application ofrtsx)uires, ilUdingF its income and expenditu fvtheyear then ended. have propa'ly prepad in acci)rdance with Uiiited Killgdfjin GeneIlY Accepted AccountingPrnctice' and have been piepared in accothce with t requireinenls of the CompleS Act 2006, Basi8 foropinion We conducted our audit in ac(x)rdance with Intemational Standas on Auditing (UK) aSAs (UK)) and applicable law, Our sponsibilities undei.tle standards atE de6criFEd in the Auditor's SponsIblI1es foi. the auditof the financial statements section ofoui. ryoit. We indendent ofthe Lharitable coinpany in accordymce with the ethical reqU1ments th levant to our audit ofthe financial statements in the UK. including the FRC'S Ethical strnd and we have fulfilled our other ethicaI irsrx)nsibilities in e01the with TqUiIEnnts. We beIieve thetthe audit evidence we have obtained is sufficient and 4ipropriate to PiDvide a forowopinion. concl}$ to goillgconcern In auditing ihe financial statements, we have con¢luded thatthe ttsteeS, ugeofthe going concem b&5is of accountu inthe preparation of Ihe financial statements is apppria Based on the work we have peifoimel we have not identified any material uncertainties iylating to events or conditior6 tha¢ individually or collectivelyi may cast significant doubt on the ch&itable cojnpangs abiIity to continue as a going concem fora nod of at least t1ve months fiDin whenthe financial stateiwits authorisaE for issue. OLU. reswnsibilities and fhe 9p)nsibilitieS oftk tsuSt with respect to going nceME dclibed in the relevantsections of this reporL Qtherlnthrnia(ion The (ither infomiation compiises the infonnalion included inthe Dlltct0 annual )it olherthan the financial statements and our auditoi s report thereon. The tsustees JE5ponsAble foi. the other infoirnation ci)nlAined within the onnual IEPOrt Our opinion on the financial statemthts d(K5 notcovei. the other information anl except to the extent othenvise expLicidy stated in our repo¢ we do notexpirss any fonn of assurance conclusion theN)tL OLll' ponsibIlity is to Thd the other infomlation arf in doing 50, Considei'wIwthe othei. infomiation is t07allY incungistcntwith the financial statenients ()r our krK)wledge obtsined in the COU ofthe audit or othonvise app5 to be mataially inisstated. Ifwe identify such mateiiaL Inco$15¢¢n¢1es Th, appaTht material MitakMents, we &e wuired to detemiine whether this gives rise to a maierial misstateinent in the fircial statements themselve5. If, knd on the woA(we have peiformed, we con¢ludethatthere is amatfflal mis51atement of this other Information, we aJE rquired to report that fact. W¢ have nothing to rewrt in this regth. OpinioThs on other matters prffjolbl by theComwdnl&8Act2 In i)ur opinion, bawl on the woi'k undeitsken in the course ofthe audit.. the infotm*ion given luthe Directo, report forthe financial yearforwhich the fjnan¢ial statements are PVEd is nsistent withthe finala1 slatents. and the Di¢t0, rep)rt has PenEpad tn ac0)rda[e with appli(thle legal IEquirements. Mattas on whichwe aPRquid to E6Yexcepkn In the light of the knowledge and derstalIng ofthe charitableeompatw and its ¢nviiY)tllnent obtsined in the Cou¢ of the audi¢ we have not ideniified mataial misststements in DAthrs' repo Page 18
HARMONI 2019 INDEPENDENT AUDITOR9S REPORT TO THE TRUSTEES OF HARMON12019 (continued) We have nothing to iEFOrt in I'espectofthe following Matte in lation to Mthich the CompaniesAct2006 itquires us to iEPOrt to you if, in ow"opinion'. adequate accounting IEQ)rds have not been kept,. or the financial stateinents Th)t in 'eennt with the accounting reCoS 8J]d rthms. or ceitiin disclosures ofdirectoiE' tenwneration s¢Ified by law aLf not made. or we have not tE¢eived au the infottnationand explanatio we require fol.0. audit. R£8pmslblrt of trtee8 As explained more fi]Ily in the Direckn3' r&8ponsibilities statetnent 8etouton 17, the Dimtors (who are also the Tiu8tees of the charitable comp8ny foi'the purpose5 Of¢nparty law) are ffspottsible for the pieparntion ofthe finala1 thlements and for being satisfid that thry ve a tsue and fall. view, and forsuch intemal conthil &8 the tnjstees determine 15 necessary to enable the preparation of financial statements thalare fire fiDm mateLial misslaicm¢n( whetherdue to liaud orenDr. In preparing the financi?1 slatements. the Direclots irswnsible foi. Hssessing the charitable coinpany's ability to continue as a goyng Conc, diKlosin& as applicabl< mattets related to going concem and using the going concem basis of accounting unle&s the truste¢s eithei. intend to liqiitdate the charitable company orto ce Otio or have no ListiC thmative but to do so. Auditor'5 reSDs]b]I1tieS for the Auditoflhefinandal stslrnients Oui. objectives ar¥. to ob&in reasonable wurancL alx)ut whether the fin8ncial slatements as awhole are fiee from material misslatemenc whetherdue to fiwd oreor, dnd to i&sue 8n auditor's IEPOrt that includes ouropinion. Reasonablc SUranCe is a hh level 0f&ssuBte, but is not agUtee that an audit conducted in accordance with ISAS (UK) will always detect almatla1 Inisstaknnent when it exists. Missfateinents can 8Jise from hud or emjr and consideird material if, individiRlly or in the aggTcgat4 they could relnablY be expected w infjuence the economic decisions OfuSe taken on the basis ofthese financ1 stalLinenl Yegularities including fiaul instsnces ofnon4ompliance with laws and tEgulatiorLS. We d&8igm procedwu in line with our sponsibilities, out]ined abov< to detect inalerial mi8Staternents in respectof irregulwities, including fiaud. The swific pmceduLEg foi, this engagement and the extent to which these are cyble ofdeiEcting irregulajities, including fixud is detsiIed below: We considei'ed the oppoi'lunities and incentives that may exist within the ol'gallisation for fraud and identified the gi'eatest potential for frdud in relation to revenue recognition. In common with all audits under ISAS (UK), we are also required to perform specific procedures to i'espond to the risk of management override. We also obtained an understandtng of the legal and regulatory frneWorkS that the chai'itable Coinpany operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial stateinents. The key laws and regulations we considei'ed in this context included the UK Companies Act, and The Charities Act (Northei'n Ireland) 2008. In addition, w¢ considcred piDvisions of other laws and regulations that do not have a direct effect on the financial statements but ¢oinplian¢e with which may be fundamental to the Company's ability to operate or to avoid a matsrial penalty. These included compliance with r.inancial Conduct Authority regulation for the UK opei'ating seginent and compliance with local legislation foi. the overseas operating segments, Our procedui'es to respond to risks identifEed included the following: reviewing ihe financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations descTib¢d as having a direct effect on the financial statements. enquiring of management and external legal counsel concerning actual 2nd potential litigation and Page 19
HARMONI 2019 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF HARMONI 2019 (eontinu¢d) pei'forming analytioal piucedui'es to identify any unusual or unexpected relationships that may indicate i'isks of material illi5Statement due to fraud,. l'eading minutes ofmeetings of those chai'gd with governance, i'eviewing intei'nal aiidit reports and reviewing regulatory correspondence. in addressing the risk of fi'aud through inanagement override of controls, testing the appropriateness of journal entries and other adjusttnents. assessing whether the judgeinents made in inaking accounting estimates 'e indicative of a potential bias. and evaluating the i'ationale of any significant ti'ansactions that al'e unusual or outside the noiinal course of business. We also cointnunicated relevant identified laws and i'egulations and potential fraud risks to all engageinent team members and reinained alert to any indications of fraud or noncoinpliance with laws and regulations throughoLIt the audit, Because of the inherent limitations ofan audiL there is a risk that we will notdetect uyegulwities, including those leadlng to a Iriatetial misslatement in fila1 statements or non-wmpliance witl) regLiiation. This iisk inc8 the MO th* compliance with a law or regulation is removed fiY)m the events and transactions trflected in the fanCIal stateinettts, as we will e less likely to become awwy of instances of non-compliance. The risk is also water regarding intgi117tieS Curring di to fraud ratha. than enDI', as fiaud involves intentional corKealmenL forgayy collusion, omission orinisiEPiEsenlation. A fiutherdesciiption ofoLWifStM)nsibilities is available on the Financial Rep)rting Council's website at, |)1111,%iliililii%, This description fonns part ofuw'auditor's rerL We communicate with those ch¥@ with govemance Rgardu]8> a]nungF othermatte13, significant aLidit FO1n8 including any significant deficiencies in iniemal control that we identify duiing our audit. Useofourreport This rept is m8de solely to the charitable comFany's mcinlxJ5, 85 a body, in accothce with Chaptei, 3 of Pgrt 16 of the Compani£s Act2006. Ow. alKlitwo has bL'Ln undolaken so that we tnight5tsts to the Chitable cOn4Y'S mcmbersihose Matte we are requuEd lo state to dM in an auditor's report 3nd for no other purpose. To ihe fvuest extent MillIed by law, we do not accept or &ssiune responsiljility to anyone other tlw the Chitable company and the Charitable c(Mnpany's Inembeis as a body, f, ouraudit woi'K forthisrepo¢ or for the opinions we have fThed. Eimear Brown (Senior Statutory Auditor) Foi. and on behalf of Bak¢i' Tilly Mooney Moore Registered Auditor 17 Clarendon Road Claiendon Dock Belfast BTI 3BG Date: 111 Baker Tilly Mooney Moore is eligible to act as an auditoi. in tel'n of section l212 of the Companies Act 2006. Page 20
HARMONI 2019 (REGISTERED COMPANY NUMBER.. R0003A6) (REGISTERED NORTHERN IRELAND CHARITY NUMBER: 101731) STATEMENT OF FJNANCIAL ACTtVlTIES (Incorporating the Income and Expenditure Aecovnt) FOR THE YEAR ENDED 31 DECEMBER 2023 Notes Restricted Funds Unrestricted Funds 31.12.2023 Total 31.12.2022 Tot•1 INCOME & ENDOWMENTS FROM: Donations & Legacies 4.091 4,091 3,566 147.311 147,311 Investments 139,993 Charitable Activities 948,612 2,613,364 3.561,976 3,497,476 Total Ineome 948 612 2 764,766 3 713,378 3,641035 EXPENDITURE ON.. Raising Funds- Investment Management Costs 52,229 52,229 45,290 Raisin8 Funds- Grant FundrHising 4.320 4,320 4,320 Chariiabl¢ Activiti¢8 1,106,303 1.106.303 2,473.169 3,579.472 3,636,021 3,499,499 Total expenditur¢ 2,529.718 3,549,109 Nel IExpcndilurelnntom¢ from operotloDIl aetiviti¢s 1157,691) 235.048 77.357 91.926 GAinl(Loss) on revaluation of investmenl ass¢ts Net (ExpendFture)llncome 121802 356,850 121802 199,159 (157.6911 (98.199) TrAnsfer bcliveen fudS 21&22 61,346 (61,346) Net movement In Funds (96,345) 295,504 199,159 (98,199) Re¢onciliAtlon of Fundg.. Total Funds Brought Forward 21&22 161,759 6.575,121 6,736,880 6,835,079 TOTAL FUNDS CARRIED FORWARD 21&22 6 870 625 6 936 039 6 736 880 The statement of financial aGtivities includes all gains and losses in the year. All incoming resources exponded derive from wntinuing activiiies. The notes forni part of these financial statements. Page 21
HARMON12019 (RECISTERED COMPANY NUMBER: R00O316) (REGISTERED NORTHERN UiELAND CHARITY NUMBER: 101731) BALANCE SHEET 31 DECEMBER 2023 Notes 31.12.2023 31.12.2022 FIXED ASSETS Tangible assets 2,484,991 1,754,504 2,590.045 1.699,504 4289,549 Invesltnents 4239.495 CURRENT ASSETS Stock io 1,583 323,655 2,574,446 658,984 1.421 225.116 2,234,968 899,377 3.360.882 Debtors li Investtnents 12 C&8h at bank and in iwid 3.558,668 CREDfroRS Amounts fAlling due wiihIn one year 13 353 694 NET CURRENT ASSETS 3 149 686 3 007 188 TOTAL ASSETS LESS CURRENT LIABILITIES 7,389,181 7,296,737 CREDITORS Arnounts fAlling due after more than on¢ ye 14 453 142 559 857 NET ASSETS 20 6 936 039 6 736 880 THE FUNDS OF THE CHARITY: Restricled Fund4 21 161759 Unre$lri¢¢¢d Funds Revaiuation R¢serve 1,893,039 4,977,586 6.870,625 6,936,039 1.771,237 4,803,884 G¢nerul Fund 22 6,575,121 6,736,880 The financial statements wer¢ auihorised for issue by the Board of Directors on signed on its behalf by.. and were Direclor- D McIlhagger The not¢s fonn part of these financial 5tatem¢nts. Page 22
HARMONI 2019 STATEMENT OF CASHFLOWS FOR THE YEAR ENDED31 DECEMBER 2023 31.12.2023 31.12.2022 Cash generAtedl (used) In operating activities - see Note 25 8,979 43968 C*shflows from investlng Aetivilie5 Pui'chase of tangible fixed assets Pui'chase of ciirrent asset inveslmenls Proceeds fi'om sale of cui'reni asset investments Invcstment incoEll¢ Bank d¢posit intei'esl Pioceeds from disposal of tangible fixed assets Cash receipts fi'om rentals of invesimenl plpertIeS CAsh {used)/provlded by investlng A¢tlvities (4,318) (546,838) 274,162 72,151 101 (7.461 } (120.865) 146,575 65.516 75,060 (129,682) 74,495 158,260 CRshflows from finftneing activities Repuyinenl of bank loan Bank pi'operty finance loall inter¢81 Legacie5 &nd Subscriptions N¢t f ash generat¢dl(used) in financing Rctlvltlts (103,917) (17,629) 1,856 (119,690) (101,132) (20,433) 3.566 (117,999) Inerea8e in c4sh & ¢Ash eqiiivalen15 111 the yeAr Cash & cash equiv&l¢nls at the beining of the y¢ar CAsh & cash equivaleots At the end of the year (240 J93) 899J77 658,984 84,229 815,148 899J77 AnAIy81$ of cA8h & cAsh tquivalents Cash UL bank and in hand Totil cash & cash equivalenl$ 658.984 658,984 899,377 899, 377 Page 23
HARMONI 2019 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 I. ACCOUNTING POLICIES Basis of pi'eparing the finaneiAI statements The financial staten]ents of this public benefit entity have been prepared in accordan¢e with Accounting and Reporting by Charities.. Statement of R¢¢ommended Praclice applicable to ¢haritle5 preparing their accounls in a¢¢ordan¢e with the Financial Reporting Standard applicable in the UK and lh¢ Republic of Ireland (FRS 102) (effective l January 20 I5)- {Chariles SORP (FRS 102), the Financial Repoiting Standai'd applicable in the UK and the Republic of Ireland (FRS 102) and the Companies Acl 2006. Fund Accounting Unresti'icted funds are available for use at tlie discretion of the directors in further&n¢e of the general objectlvcs of the charity. UnrLSlricted funds include rcvaluation reserves representing the restaternent of investment assets {both fixed and curi'¢nt) at market values. Whilst there are none to date, Designated funds are unrestricted funds earmarked by the directors for particular purposes. Restricted funds receivable from the Northern Ireland Housing Exccutive for their Supporting People Programme operating in both Stricklands Bay and the Men's Hostel are subj¢¢t to reslriclions on their expenditure, imposed by the donor. Income All incoming resources are included in the slatement of financial activities when the charity is entitled to the income and the amount Can be quantified with reasonable a¢¢uracy. The following specific policies are applied to particular categories of income.. Voluntary income is reIVed by way of donations, legacies and gifts and is included in full in the Statement of Financial Activitie8 when receivable. Legacies are &ccounted for following entiilement, Grants, where entitlement is noi condilionRI on ihe delivery of a Specific perform&nce by the charity, are reco8nised when th¢ charity becomes unconditionally entitled to the grant. Investment ineome is included when re¢eiv&ble. Incomin8 resources from grants, where related to performen¢e and specifi¢ deliverables, are accounted for a5 the charity earns the right to consideration by its perforinance - split between Restricted and Unrestricted funds. Expenditure Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expendilure to which it relates.. Raising funds co8ts comprise th¢ costs asqociated with the charity's investment propety. ¢llellt asset investments and th¢ cost of grant applications. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its b¢n¢ficiaries. It inGludes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support Ih¢m- split between RestriGled and Unrestricted funds. Governance costs include those associated with meeting tke constitutional and statutory requirements of the charity and inclLLde the audit fees and costs linked to the strategic management of the charity. All cost& are allocated between the expenditure categories of the SOFA on a basis designed to Teflect the use of the resource. Costs Yelating to a particular activity are allocated directly, others are apportioned on an appropriate basis as set out in Note 3. Page 24
HARMONI 2019 NOTES TO THE FINANCtAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 I. ACCOUNTING POLICIES {continued) TAngible fixed assets (exeluding investment propeity) DepRciation is provided at the following annual rates in order to writ¢ off each asset over its estimated useful life.. Freehold property Improvetnents lo property Short leasehold 20/0 on cost 151J/o on cost IOO/tr on cost Long leasehold Fixtures and fittings Motor vehicles 286 on cost IO% on cost 250/0 reducing balance 330/0 on cost Comput¢r equipment The c05t of assets comprises purch&8e price and any install&tion charges. Pension5 Retirement benefits lo certain Qui'rent employees are provided by a defined ¢ontributlDn pension scheme. under 'Aulo-Enrolment", whereby the assers are held separately from Iho.8e of the charity in independently admit7iStered funds, The charity contributions are accounted for by ¢harging costs against surpluses as payments accrue. In addition, unfLinded payments are tnade to certain former employees who were m¢mbers of the old defined benefit scheme, which is now closed. Th¢se are charged as payments are inade. The capital cost of continuing thes¢ payments, which not been computed, is not reflecred As a liability in the a¢¢ounls. The accounting for unfunded pension payments is considered to be an immaterial departure from Financial Reporting Stand'd IO2. Operatlng LeAses Harmoni classifies the lease of office equipment as operating leases. The title to the equipment remains with the lessor and the equipment is replaG¢d periodically, Rental charges are charged to the SOFA on a slraight-line basis over the term of the lease. Investment Propertle% Investinent properties are initially measured at cost, including transaction costs. Subsequently those inveslmenl propLrties whose fair value can be mellred reliably are mcasured al fair value. Gains and losses &i'ising from change5 in the fair value of inve.8tment properties are recognised in the r¢v4lu¢ition res¢rv¢ through gains/losses on revaluation of inveslments in the Statement of Financial Activities. Stock Stock held relat¢S to food stock held for the kitchen in M¢n's Hostel. Stock is valued at th¢ lower of cost and net realisable value. Page 25
HARMONI 2019 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2023 I. ACCOUNTING POLICIES (continued) Debtors Trade and other debtors are recognised at the settleinent amount due after any trade discout]t offered. Prepayments are valued at the amount prepaid net of trade discounts due. Creditors Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably r¢sult in thc transfer of funds to a third paty and the amount due lo settle the obligation Gan b¢ measured or estimated reliably. Creditors are nonnally recognised al th¢ir settlement amount after allowillg for any trade discounts due. Fin&nciAI Instrumellts Harmoni only has financial assets and finanGial liabilities of a kind that qualify as basi¢ financial instruinents. Basic financial iftstrument5 ar¢ initially r¢cognis¢d at transaction value and subsequently measured at their settlement value, Current Asset Investments Current assel inve5tmeutS Are recognised initially at fair value. wFLich is normally the transaction price. Subscquently they al'e measured at fair value, with changes reknognif ed in the revaluation reserve through gainsllossey on revaluation of investments in the Stalemcnt of Financial Activities if the investments are publicly traded or their fair value Can otherwise be measured reliably. Other investments are measured at fair value at the d&t¢ of acquisition less impairment. Judgements 2nd key sources of es¢lmation uncertalnty The following judgments in¢luding those involving estimates have been mad¢ in Ihe process of applying the above accounting policies thai have had the most significant effeci on the amounts recognised in the financial stateinents and that hav¢ a significaiil risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year: (i) Depreciation method and asset useful lives (li) V&luation of properties (iiil Impairment of assets The estimate5 and assumptions are reviewed on att on80in8 basis considering the current and future market conditions. Page 26
HARMONI 2019 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2023 2. INCOME 31.12.2023 31.12.2022 Unrestricted Funds: DDnRtion5 and LegAeies Legacies and donations Subscription5- Boys Bi'igade Gifi Aid 3,891 200 3,566 Total voluntary InMe 4.091 3.566 Investmen¢ Incorne Inveslm¥nl pi'opci'ry r¢nt$ I'eceivable Bank deposit intei'est receivable Current ass¢1 investment in¢ome 75,059 iai 72.151 74.477 65,516 Total Inveslm¢nt Income 147,311 139.993 ncome from Aetlviti further the Charit 'sob ectlve Utillty Strnet Men's Hostel Stricklands Bay Other Total 31.12.23 TotAI 31.12.22 Unrestrieted Funds Residential reoeipis Payments from Health Trusts Payments from NIHE re housing Private Support Income SP Covid-19 Fundin8 Other 125,457 50,267 ,532,686 263,512 175,724 1,532,686 886,342 161,670 1.518,762 822,847 622,830 25,016 7,925 2,536,220 2,683 750 970 13,479 1,859,944 2,450 18,612 2 613,364 Restricted Funds Payment8 from NIHE re Supporting Peopl¢ 462,833 Private Support Income Ulster Garden Villages Grant Dormant Accounts NI Fund National Lottcry - Covid-19 SP Covid-19 Funding National Lottery Community Fund Other Restricted Gr&nts 397,376 46,268 860,209 46,268 805,498 39,808 32,551 32,551 32,551 3,768 5,816 472,417 3,768 5,816 948,612 65.921 17,478 961,256 443,644 32,551 TOTAL INCOME 3,713,378 3.641,035 Page 27
HARMONI 2019 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2023 3. EXPENDITURE (incl. VAT where relevant) Utility Street Men's Hostel Stricldand$ Bay Other Tolal 31.12.23 Total 31.12.22 Unrestricted Funds Cost$ directly Jllocated to Activities.. Staff costs Depreciatton Othei. Loan interest Support C,osts allocated by time to aetlvltl¢s'. Administrtttion {incl. siqff cosls) 297,905 2.540 340,610 1.179,365 96.324 161,939 15,866 251,573 1,477.270 99.556 514,946 15,866 323,614 1,534,038 69,154 480,061 19.143 284.480 692 12,397 72,041 713,096 1.705,067 13,089 2.431.252 2,386,876 External audit and a¢countanoy - curreni year External audit and accountancy - prior year Internal audit Legal and professional 6,600 600 3,000 31.717 41,917 2,473,169 6,000 3,000 13,800 22,800 2,409,676 Total Unrestrictod Zxpendlture eharitAble actfvities Investment Management Costs.. Re investment property Re current asset investments 38,590 13,639 52, 229 31.299 13.991 45,290 Grant fundraising eost8'. 4,320 4,320 Restrlcted Funds Costs directly allocated to ictlvltiej: Men's Hostel StricklAnds BAY Other Total 31.12.23 Tot*1 31.12.22 Staff costs Depreciation Other Loan interest Support Costs allocated by time to 4etivit1. Administration (incl. slaff ¢osts} 382,630 5,824 102,662 390,496 405 48,708 1,763 34,981 808,107 6,229 156,413 ,763 687,406 37,467 203,639 1,290 5,043 65,180 556,296 68,611 509,983 133,791 1,106,303 160,021 1,089.823 40,024 TOTAL EXPENDITURE 3,636.021 3.549.109 Page 28
HARMONI 2019 NOTES TO THE FtNANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2023 4. STAFF COSTS 31.12.2023 31.12.2022 Wages and 5alai.ies Social secw'ity costs Othei. pensions ¢ost5 2,409,586 172,298 58.844 2,640,728 2.332,857 164,843 55,745 2,553,445 The average monthly number of employees during the year was as follows.. 31.12.2023 31.12.2022 Administi'ative staff Other staff 84 92 79 87 Included above is £411,339 (2022.. £477,752), whirh was paid during th¢ ye&r in respect of asency staff. During 2023, there was one employee with emoluments at the rate betweet) £90,00 l and £1 00,000 (2022.. one between £90,001 and £lOO,000). Remuneration of the 2 (2022,,2) key management personnel in the period was £160,553 (2022,. £I53.500). 5. INCOME & EXPENDITURE Income and expenditure (including VAT, where relevant) are ststed after char8ing (crediting): 31.12.2023 31.12.2022 DepCLaI10Th - owned &8seis L055 on disposal of fixed assets Opei'ating lease Costs Exicrnal Aud & Accs current year Exlei'nal Aud & A¢¢s pi'ioi. year Intemal Audit Bank loan intere51 payable Income from listed investments Directors, remuneration 109,187 113,567 4,393 6,61)0 600 3,000 17,629 72,151 4,393 6,000 3,000 20,433 65,516 6. TAXATION Analysis of the t8x chArge Being registered with both HMRC &nd the Charity Commission for Northern Ireland as & ehaiity. no liability to UK corporntion tax ai'ose on ordinary activtties for the year elided 31 December 2023, nor for the year ended 31 December 2022, Page 29
HARMON12019 NOTES TO THE FINANCIAL STATEMENTS {¢ontiniied) FOR THE YEAR ENDED31 DECEMBER 2023 TANGIBLE FIXED ASSETS Freehold Property Short Leasehold Long LeAsehold COST At January 2023 Additions Disposals 2,883,318 9,080 1.822,250 Ai 31 December 2023 2,883,318 9,080 1822,250 DKPRECIATION At l January 2023 Charge for year Eliminated on disposal At 31 December 2023 972,293 58.563 9,080 1,188,058 36.180 1,030,856 9,080 1,224,238 NET BOOK VALUE At 31 December 2023 1,852 462 598 012 At 31 December 2022 1911025 634 192 TANGIBLE FIXED ASSETS (continued) Fixtures & Fittlngs Motor Vehlcles Computer Equipment Totalg COST At January 2023 Additions Disposals 237,595 4.318 300 241,613 9,775 25,203 4,987,221 4,318 300 4,991.239 At 31 December 2023 9,775 25,203 DEPRECIATION At l January 2023 Charge for year Eliminated on disposal 203,110 9.734 115 7,462 578 17,173 4,132 2,397,176 109,187 115 At 31 December 2023 212 729 2 506,248 NET BOOK VALUE At 31 December 2023 2 484 991 Al 31 December 2022 8.030 2 590.045 Page 30
HARMONI 2019 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2023 FIXED ASSET INVESTMENT PROPERTIES armoni has two fixed asset property investments and a small ground iental portfolio. The investment properties at Donegall Pass were revalued at fair open market v&lue as of 9 Febi'uary 2024 by Frazer Kidd & Partners, Propety Consultsnts. The directors consider this to be a fair estimate of value as of 31 December 2023. The investment properties at Derryvolgie Mews were revalued at fair open market value as of 9 FebrLEary 2024 by Frazei. Kidd & Partners. Property Consultants. The directors consider this to be a fair estimate of value as of 31 D¢¢embei' 2023. The directors are of the view that no si8nificaiit Change to fair open market value has arisen with the ground retLls in 2023 (or 2022). Th¢ movement is summarised as follow$'. 8 Apartment5 (D¢riyvolgi¢ M¢w5) Other Investment Pi'opety GIDund Rents 2023 TotRI 2022 Total Value at stllrt of the year 1,500,000 195.000 4,504 1,699,504 ,649,504 Incirase in value durin8 the year 50,000 Value Rt the end of th¢ year 550,000 200 000 1,754 504 1699 504 As part of its tille to Derryvolgie M¢w5 Harmoni holds the only issued voting 'B' share in an apartment management compaiiy, Derryvolgie Mews Mana¥emenl Cotnpany Limited, incoiporaled in Northern Treland to acl as a property management company for Harmoni's investment propety Derryvolgie Mews" 4 non-voting 'A' shares in th¢ company have been issued to the own¢rs of the other 4 apartmefit8 which wer¢ previously Id by H&iThoni. FINANCIAL INSTRUMENTS The fair valued carrying amounts of the rharity's financial instruments, bein8 debtors, current asset inv¢slinents, creditors and bank loans, are given in notes 11, 12, 13, 14 and 15. The only income from the Charity's financial instruments is the bank dcp05it interest receivable and Current asset investment income, as disclosed under investment income in note 2. The only expense associated with the ¢harAty's financial instruments 15 the Stricklands Bay property bank loan inter¢st, as disclos¢d in note 3. 10. STOCK 31.12.2023 31.12,2022 Kitchen stock at Men's Hostel Page 31
HARMOIYI 2019 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2023 11. DEBTORS: AMOUNTS FALLING DUE WITHtN ONE YEAR 31.12.2023 31.12.2022 Trade Debtoi's Prepayments and acci'ued Income 300,087 23,568 323,655 205,894 19,222 225,116 12. CURRENT ASSET FINANCIAL INVESTMEIYTS 31.12.2023 31.12.2022 At start of year Additions Disposals Surplus/(deficit) on disposals realised Unrealised (deficit)Isurplus At end of yeai, fair market valuation 2,234,968 546.838 (274.162) 6,955 59,847 2,574,446 2.500.803 120.865 (146,575) (31,994} (208,131) 2,234,968 Curr¢nt assets investments ¢omprise.' Listcd investments Other investinents 2,444,175 130,271 2,574,446 2,111,838 123,130 2,234,968 Historical cost of current asset investrnents 2,574,446 2,234,968 The fair value of Iisied investments is determined by reference to their market value as ai the balanc¢ sheet date as provided by the Investment Managers Evelyn Partners. The fair value of the olher Investments 18 Ineasured at a fair value on a¢quisition less impairment. The investtnent management fees in respect of the financial investments for 2023 were £13,639 (2022.. £13,991). 13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.12.2023 31.12.2022 Bank loans (see note 15) Trade creditors Social security and other taxes Accrued expenses 106,715 95,207 38,034 169,026 408,982 103,917 72,579 31,849 145,349 353,694 Page 32
HARMON12019 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2023 14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 31.12.2023 31.12.2022 Bank Loans (see note 15) 453 142 559 857 The bank loans are secui'ed by a legal mortgage over Harmoni's investment property known as "Derryvolgie Mews" IS. LOAIYS An analysis of the maturity of loans is given below.. 31.12.2023 31.12.2022 Amounts falling due within one year or on demand.. Bank loans lQ6,715 103,917 106 715 103 917 Amounts falling due between one and two years.. Bank loans.. 1-2 years 109 712 106 715 Amounts falling du¢ between two and five ye&rg: Bank loans.. 2-5 years 301666 338 504 Ainounts falling due in more than five years., Bank loan5 repayable in more than 5 years by instalments 114638 Interest is payabl¢ on the oi'iginal bank loan at 2.15L/lo for 10 y¢ars. Interest is pay&ble on a second bank loan at 40/0 for 10 years. 16. SECURED DEBTS The following secured debts are included within creditors.. 31.12.2023 31.12.2022 Bank Loar]s 559 857 663,774 559 857 663 774 The bank borrowings are secured by a legal mortgage over Harmoni'5 investinent property known as "Denyvolgie Mews" and the development at Ge¢good House. Page 33
HARMON12019 NOTES TO THE FtNANCIAL STA TEMENTS (continued) FOR THE YLAR ENDED 31 DECEMBER 2023 17. PENSION CO]VIMITMENTS The company used to operate a defined benefit pension scheme which has now been wound up. The pension obligations under the old 5Gheme are met by purchased annuities. In addition, unfunded payments are made to certain former ¢mployees. The oompany now operates a defined contribution scheme for certain current employees. The total pension costs for the year were £58,844 (2022.. £55,745), comprising pension scherne costs of £58,302 {2022: £54,404) and unfunded penslon payentS of £542 (2022.. £1,341). 18. TRANSACTIONS WITH DtRECTORS No director emoluments were paid during the year (2022 . £Nil) There were no transactions during the year in which any director or related party had an interest requiring disolosure, 19. LEGAL STATUS OF HARMONI HARMONI 2019 1$ a company limited by guarantee, not having a share capital. Harmoni has tax-exeinpi status with HMRC as a charity and has also been registered as a charity by the Charity Commission for Northern Ireland. Pa8e 34
HARMONI 2019 NOTES TO THE FINANCIAL STA TEMENTS (continued) FOR "THE YEAR ENDID 31 DECEMBER 2023 20. ANALYSIS OF NET ASSETS BETWEEN FUNDS ToDgible Fixed Assets Fixed Asset Investments Net Current Asset$ Long Term LiAbilities TotHI 2023 TotAI 2022 Unre$tricted Fund5: Genernl 2,454 767 754 504 3,114496 453,142 6 870 625 6,575 667 Re$tric¢¢d Funds.. NIHE Suppoi'ting People - Men'8 Hostel & Sti'icklands Col'e Village 34.709 Stricklands B&y- Bangor Benevolent Society 3,728 3.728 4,437 Mcn's Hostel- NIHE Refui'b. Gi'ant 2015 3,775 23,181 26,956 30.909 Nation&1 Lotteiy Community Fund 3,768 3,768 51.120 Men'5 Hoslel- AW'dS for All Grant 706 391 1,097 1,286 Men's Hostel- NIHE ReOJrb. Gi'ant 2018 2,888 (965> 1.923 1,942 Ulster Gai'd¢n Villa8es 18,280 18,280 18,685 Stricklands Bay - A wards for All Grant 5,59S 5,595 5,595 Dormant Account$ Fund Nl (185) 1185) 7,288 R.U,T.H 1,323 1.323 Belfast City Council - Equipment 3,252 (341) 2.911 3,331 Ardbannon Trust 18 18 At the end of year 2 484,991 1754 S04 3 149 686 453,142 6,936 039 6.736 880 Page 35
HARMONI 2019 NOTES TO TIIE FINANCIAL STA TEMENTS (continLied) FOR THE YEAR EIYDED 31 DECEMBER 2023 21. MOVEMENTS IN RESTRICTED FUNDS At31. Decejnber Net Movements in Funds Transfer from Unrestricted Fullds At315t December 2022 2023 NIHE Siipporling People- Men's Hostel & Stricklands Care Village 34.709 (93,5 l3) 58,804 Stri¢klands Bay- B&ngor Bcnevolent Society 4,437 (709) 3,728 Men's Flostel_ NIHE Refurb. Gi'anl 2015 30,909 (3,953) 26,956 Dormant A¢¢ounls Nl Fund 7,288 (7.473) (185) Men's Hoslcl- A wards foi. All Gi?nl 1.221 (124) 1,097 Men's Hostel- NIHE Refvi'b Grant 2018 2,553 (630) 1,923 National Lottei'y Cotnmuniry Fund 51,120 (49,894) 2,542 3,768 Ulster Garden Villages 18.685 (405) 18,280 Sii'icklands Bay- Awards for All Grant 5,594 5,594 R.U.T.H 1,911 (588) (420) 18 1,323 B.C.C- Eqiiipmcnt Ardbannon Trust 3.332 2,912 Ai the end of ye. 161,759 (157,691) 61,346 65.414 22. MOVEMENTS IN UNRESTRICTED FUNDS Gener&1 Fund Rev41uatlon Reservos Totsl Unre5trlcted Funds 2023 Total Unrestrlcted Funds 2022 At I" January 2023 4,803.884 ,771,237 6,575,121 6.646,995 N¢e Income on Opei'ationaI Activities 235,048 235.048 220.493 Transfer to restricted funds {61,346) (61,346) (102.242) Investment revaluation (Loss¢s)/Gains 121.802 121,802 6,870,625 (190,125) 6,575,121 Ai 31. December 2023 4,977,586 1,893,039 Page 36
HARMONI 2019 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED31 DECEMBER 2023 23. ANALYSIS OF REVALUATION RESERVES Fixed Asset Investments Current Asset Invegtments Total Inves¢m¢nts Tot*1 At I. January 2023 Net gainl{loss) At 31° Decembei. 2023 1,176.218 55,000 1,231.218 595,019 66,802 1,771,237 121,802 1.771,237 121.802 661,821 1,893,039 1,893,039 24. OPERATING LEASE COMIKITMENTS 2023 2022 Total future ininimum lease payments under non-cancellable operating leases for office equipment are as follows.. Not later than one year Later than one year and not later thon five years Gr¢ater than five years 2,501 1,220 4,697 3,416 305 8,418 3,721 25. RECONCILIATION OF MOVEMENT IN FUNDS TO NET CASHFLOW FROM OPERATL¥G ACTIVITIES 2023 2022 Net movement In funds - Net in¢omc from operational a¢tivitie5, as per Statement of Financial Activities Add back: 77,357 91.926 Depreciation charg¢ Loss/(Pi'ofit> on sale of tangible fixed assets Bank property finance loan interest payable 109,187 185 17,629 113,567 Deduct.. 20,433 Investment income shown in investin8 aGtLVities Legacies and subscriptions 51Lown in financing Cash receipts fi'om rentals fron) investment properties Bank deposit interest (72,151) (1,856} (75,060) (ioi) (65,516) (3,566) (74.495) (Increase) in stock (162) {462) (Increase) in debtors (98,539) (48,358) Increase in creditors. excluding bank borrowings Net Cash generated in operating Activities, as per Statement of Cashtlows 43,968 Page 37