HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2023 FORWARD l am pleased to present on behalf of the Trust¢¢5 of Harmonl 2019 the annual report and accounts for the year 1st January 2023 to 31 December 2023. Tbis marks my fst full year in olTice as Chair for the orgAnisation. I am indebted to my colleagues on the Board for their interest and comtnitment to guide the work of HarnionI. l am equally indebted to the CEO and the executive team for their efforts in what continues to be very chang¢able circumstances, not least of all fwancially. We like most ¢haritable organisations are at ttle mercy of single year budget allocations from our key statutory commissioners, this can make long terra decision making and planning difficult. Notwithstanding we have a long and we believe mutually positive relationship with both th¢ South Eastern H¢alth and Social Car¢ Trust (SEHSCT) and the Northern Ireland Housing Executive (NIHE) and we 8Gknowledge their continuing engagement and contracting of services with us. When we commenced the financial yr the budget expectations were ¢xtremely challenging. l am however delighted to note the in-year uplifts which were more reaii51ic than we could budget for. We understand that both the Department of Health through the SEHSCT and tbe Department for Conununiti¢s through the NIHE r¢Gognise that our sectors have for many years experienced significant compression with costs rising fast¢r than incoines. We want to acknowledge that recognition and while we again note the budget issues The Stormont Assembly has to juggle, we do hope the momentum in this area can be maint&ined. That in no way detrads fro.m Ihe efforts of the executive team in HarnionI who nllvigate those finanGially challenging waters routin¢ly. The one key element throughout the 145 years of this charity'5 existence has been noted as one of tenacity in th¢ facc of uncertainty and we Can certainly see that from the Board to the front-lin¢ staff. Those front-line colleagues deliver $ervic¢s to our client 8IDUPs in equally but very different ¢hallellges daily. So, on behalf of the Board. I want to thank our front-line colleagues who alongside their colleagues in the support elements such as &dlnistrati0n, alld finance form part of what has become a very well-oiled and effective delivery system. A system which has at its heart the beneficiari¢5 and their needs. Our CEO regularly rcmind5 us all that the only reason Harnlonl exists is that we have clients who need us, clients who live with multiple disabilities or societal disadvantsg¢s. clients who plac¢ their trust in us. To those clients whether th¢y ome from Stricklands Care Villoge. or the Men's Hostel at Utility Street I say thank you once again for trusting us to 5UPPOrt and care for your needs. As I ¢lose this element of the report, I would pick out one particularly encouraging indicator which was initiated during 2023. The Board agreed to r¢kindle our development processes and start prospecting for a next stage of scryice delivery. Undoubtedly it will take Some tim¢ from inception to delivery but every journey begins with the first step. all of which is 4 response lo our core mantr4 "To do rnor¢ forMor¢!Y PaulArcher- Chalrnwn Page 3
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT Governing Document The legal entlty naine was changed on 8th January 2019 fi.om NIID to HARMONI 2019 Trading as Harmonl. HAIiMONI 2019 has its origins in late 19th Century Belfast. It was incoryoratrd on 19th July I906 as a chaiitable Conwany liinited by guarantee and not having a share capital. The objects and powers of HARMON12019 are set out in the Memorandum of Associatio and the Company is govemed under its Articles of As8OCiation, as updated in 2014 and registered on 28th March 2014. In the event of the Company king wound up Members 'e required to contribute an amount not exceeding £1.00. HARMON12019 is on the NoTthern li'eland CharÉty Register, registration number 101731, Since registration. the DitOr Trustees have embarked and inaintained pei'iodic specific training along with the Management team to understsnd fully the impli¢ations, ponsibIlitieS and expectations of HARMON12019, the Tre$ and tkne Management who operate under delegated authority. In September 2023 we initiated a review of OUT current articles Steered by a working group from the Board and supported by our legal advisors at Cleaver Fulton and Rankin we aim to Complete this exercise in early 2024. The scope of that work is limited to an updating and refreshing exercise. Dire¢tors: Recruitment and appointment of directors Under the requirements of the Articles of Association as revised in March 2014, the directors are trustees ofthe Charity and are known as Members of Council. From that revision date. Directoi. Tiijstees serve for 4 years dated from the fll'st AGM at whi¢h they .¢ voted in, they are eligible to serve up to three terms of four years at whi¢h point they must retll'e. The date cy¢le is from their fst AGM to their fourth AGM. Name of Director Trust¢e Appointment Date Expected term end AGM date Archer, Paul (Chair) 281b March 2023 1st tern] chair June 2026 McIlhagger, David (Deputy Chair) 30Qi Junc 2010 (NED) Chair May 2014- De¢ 2020 29th October 2014 Appointed Deputy Chair I" Jan 2020 June 2026 Reagan, Peter June 2027 Lavery. Brian 181h May 2020 15th June 2020 Junc 2024 Irwin, Hannah June 2024 Collins. Paul [5th June 2020 June 2024 Colgan. Elaine 28th July 2021 5th November 2021 Resigned 28111 November 2023 Resigned 27th November 2023 Graham, AmiTa Drew, Joannc 12th February 2024 121h February 2024 1st March 2024 Jun¢ 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 IWLINAGEMENT COllÉinued Direclor Trnstees durlng reporlingperiod No Member of the Board of Director Trustees had a beneficial interest in any contract with HABMONI 2019 during the year. Succession Planning: Harmonl continues to manage tILe need for succession An the following manner.. I,. Trustee appointments are phased in so far as possible so as not to risk a significant numbei. of multiple Trustees ending their tsnure Simultaneously. 2.. FTOM Ist January 2020 the board oftrustees have created a deputy chair role to ensure that in the event of the chaii. being unavailable thei'e iEmains a line of consistency in the Charity govemance. 3.. The Chaii" of the Finance and General Purposes Committee is generally not the chair of tbe full board to ensure a degree of separation and independence. Trustee Induction and iralning Trustees are aware of th¢ practical work of HARMON12019 at the host¢l in Belfast and SÉri¢kland's Care Village in Bangor. New ti'ustee5 are expected to &ttend an infoiThation session to fan]iliarise themselves with how HARMONI 2019 operates. These are jointly led by the Chair of the Board and the Chief Executive of HARMONI 2019 and ¢over the following: The obligations of the Trustee Directors The Articles of A580¢iation The fmancial position as set out in the latest published accounts Futui'e plans and objectives New trustees i'eceive copies of the Articles of Association, the latest financial ststementS, the ¢urTent strategic plan and a copy of the Code of Good Govemance prodwed by NICVA. They then llet the CEO and undertake half day induction pro¢¢ss to provide information on th¢ rharity function. To ensure tELat trustses have up to date knowledge regarding Gharity management issues and the impact of changes in the public sector it ts expected that ttNstees will have the QPPOTtunity to attend suitable training and information events. The CEO disseminates all regulatory guidance to trustees as it is received by the ¢harity. Risk management The Board of Dii'ector Trustees continue5 to review the major risks to which HARMONI 2019 is exposed. The risk management Strategy for HARMON12019 is one whi¢h Seeks to identify i'isks 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 ILigh appetite. The Board of TrteeS receive regular updates to the risk register. This process allows the board to see pertinent coi'porate risks, these i'isks are Categorised with probability and impact scores as Higm Medium or Low risk. This measurement is designed to identify risks that require immediats attention and mitigation, and those that need attention. but are less immediate. Page 5
HARMON12019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT (eontinued) Each risk is then identified with a risk owner and a mitigation plan naative provided. Each update of the register identifies new risks and ¢hanges in the PTevious risks due to the effects of the planned mitigation or other external circumstances, The core rlsks for 2023 weLe Ldentified Budget Delivery.. At the outset of the year amied with limited knowledge on any possible uplift potential from our ¢ore statutory parthers for the services delivered, the budget presented as a worst-C&8e scenario was a significant deficit. As ever the CEO and exe¢utive team produced a tnitigation plan to identify key actlvlty and tasks to rninimi5e this risk. We are glad to report that due to an improvement in employed staff resources compared to th¢ agency potential budgeted coupled with significantly better than expected uplifts from The Trust and NIHE we returned a positive surplus result for the undeilyin8 business of the ¢harty. Funding Compression.. Ott the income side as a resuIt of no uplift for many yeai's fiL)m Supporting People Coupled with historic low increments frotu the Trust for services delivered the income inci'ements Tequired to meet the spiratling costs had no degi'ee of ¢ertainty. On the cost side between the greater than infiation r(ses for National Living Wage which irnpacts 900/0 of our workeoree and continued increase in overall costs such as energy the year continued to be one in which the oompression reality continued. Stsff resources: As we Started the 2023 year we had noted a small increment in employment for staff partiCullY in our Stricklands eare Villag¢. That continued for the first quarter of 2023 which eased the need for agency. However, that plateaued into quarter 2 and 3 of the year leaving us with a need to still call on agen. One mitigation we have initiatsd in the year is to ensui'e we have a negotiated position with the fundei's particularly whei'e a new client is involved as we now are asking for the Trust to fund Staffing lev¢ls at agency plus a central conlribution rate until we secure our own staff. We have also again attemptsd to re-engage with the Trust in r¢spert to rebatancing some of our clients ¢are hour b&selines whose Contracted hours required have outstripped the caTe hours ¢ontracted. Procedures in place to ensure compliance with health and safety of staff. suppliers, volunteer5, clients and visitors to the Hostel and StrtGkland's Care Village. Pa8e 6
HARMON12019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2023 STRUCTURE, GOVERNANCE & MANAGEMENT (continued) Opgapiislllionalslniclure The Board schedules four meetings a year and is responsible for the strategic direction alld policy of HARMONI 2019. The Tyustees coine fi'om a vw'iety of professional back81'ounds relevant to the work of HARMONI 2019, The Finance and Genei?I Purposes Coinmittee meets a week prior to the Board and tecorded four meetings in 2023. This continues to include the Annual Report and Accounts presentation to the committee by the Auditors. The development committee, whi¢EL is i project-based committee, did not meet in 2023 due to there being no relevant business before the committee. Responsibility for opei?tions management is delegated to the Chief Exeoutive. Governance: The Board will formally meet a minimum of 3 times in the ye. to take Care of the ordinary business of the cknity and its governance iEquirements. The board also receives a detailed sub report on Health and Safety. Safeguarding and Deprivation of Liberty issues if any have arisen, They will meet at other times for special topics meetings &8 and when required. The Sub Committee of the Finance and Gen¢i?I Purposes Committee will nornially meet one week in advance of each fomial board. The Development Committee will meet as required to meet the needs of the project timeline. Corporate Oversight: The Senior Management Team meets regularly to ensure the management of the main Corporate need5 are being meL A key element of thi5 discussion will be the budgets, actyals, and variances we are experiencing and what controls or change5 we need to effect Tn order to keep the organisation on trk. We will also review progress in respect to recruiknent and i'etention foi. our services. Corporate Management: The Unit Manager5 will meet with meneT$ of the Senior Team as required to Teview the perfortnance of the overaIl business with specific input froin the unit heads. These discussions include thc regulatory and compliance elements from the fjnders and ¢ommissioners of the Services and also key safeguarding issu¢s. Operation$ 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
HAIiMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR EIW4DED 31 DECEMBER 2023 STRUCTURE, GOVERNANCE & MANAGEMEIYT (contlttued) The operational organisation structure: AJnAE¢r KEy51piitc Te -IAtttvitFs£rf,Oid5bXor Page 8
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2023 STRUCTURE, GOVERNAiYCE & MANAGEMENT (continued) Related parties HARMONI 2019 did not have any dealings duiin8 2021 wÈth any companies oi. other organisations in whi¢h any of the directors have an interest. OBJECTIVES AND AcrivrriES The principal objects, as updated. of HARMON12019 are to.. - To relieve poverty, illness, siGkness and suffering of people who 'e in need by reason of sickness, disability, povety or social and economic ¢ir¢umstance ('the beneficiaries), To advance the interests of benefi¢iai'ies by all means ineludin& but not limited to, theii. closer integration into wider society. In the interests of social welfare to provide or assist in the provision of suppoited housing facilities or othor services, suoh as nursing care or domiciliary ¢are, which improve the Conditions of life of the beneficiaries and provide or assist in the provision of respite care or other support for Care of the beneficiaries. TO advance the edu¢&tion of the beneficiaries and educate and raise awareness among the publi¢ of issues peitaining to social welf'e and people with disabilities. To relieve sickness and poverty of elderly disabled sick or injured persons and their carers by offering assistance to enable those in need to Secu re5pits care. Su¢h other exclusively charitable puiyos¢s according to the law of Northern li'eland for the beneficiaries as the Trustees may from time to tinie decide. Stri¢kland's Care Village located in Bangor provides a¢¢ommod&tion in thirty-tkn'e¢ separats units for those individuals living with 8 disability and needin8 SUPPOrt and ¢&e at various levels depending on assessed need. The Belfast hostel provides emergency accommodation for fify-nille men experiencing homelessness with one room specifically renovated for men with disabilities. The men are supported and encouraged to improve their situation by tsking the necessary steps to move on to training opportunities and employment, and to permanent a¢¢omrnodation. There is close cooperation with the statutory authorities and Éhe Northern Ireland Housing Executive. Page 9
HARMONI 2019 REPOR T OF THE DtRECTORS FOR THE YEAR ENDED 31 DECEMBER 21J23 STRATEGIC REPORT: ACHIEVEMENT & PERFORMANCE STRATEI GIC REPORT Achievements And Performan¢e Organisalional.. A signifIcant achievement organisationally for 2023 was the ability to reverse the potential deficit to a surplus. This was derived fi'om some 15 initigation actions by the Executive coupled with better-than-expected incLEases fi'oin the TrusL There was also a fijlly unexpected increment ITh Supporting Peopl¢ fundin8, the ftrst in 16 years. The second and for a mission driven organisation such as Harnioni 2019 equally as important the Social Return on Investment outGome. Once again, we were provided access to the Social Value Engine Exercise operated by Work West through grant support of North Down and Ai'ds Social Enterpi'ise SuppoLt Fund. We are gratefijl to the ¢ouncil for thTS SUPPOrt. That exercise showed that as an orgallisation for every £1 invested we Teknrned £3.15 in social and economic valu¢. We have always believed as a ¢h8ritable organis&tion we added valiie to people living With a disability or societal disadvantage, this measure helps to provide a metric to confim that. ri¢klands Care Village: 2023 w&8 a year in which we ¢xperienced the loss of a number of our long-tsiyn clients. One client requiTed nursing care which is outside oui" service delivery capability. Then in the last quarter of the ye. we lost hvo of our oldest residents who passed away in November and De¢¢mbeT. It through these challenging days foi. staff that the quality of the vaIues based i'ecruitment and retention strategies showed theii. worth. collpl¢d with the professional training our staff receive atmually we were able to see a stoicism in our front line staff as they dealt with the loss but set aside their personal feelings to continue to deliver to the MainIng clients. We have been able to i'efocus our attempts to provide greatei. one to one time with our clients as we attempted to be more focussed on their wants and aspirations this year without the hangover of Covid limitations. This showed in the contentment expressed by our clients. We were also pleasantly surprised when the Social Valu¢ Engltig return showed us that our staff had delivered over 33.000 support sessions across the year. Our maintenance progratnme colltinue5 to ensure the clients homes are maintained to the high standards we aspire to for them. Stricklands Care Village again received & positive RQEA report in 2023 following an unannounced inspection with just one pi'ocedural improvement suggestion. Page 10
HARMON121119 REPORT OF THE DlliECTORS FOR THE YEAR ENDED 31 DECEMBER 2023 STRATEGIC REPORT: ACHIEVEMENT & PERFORMANCE {continued) Uiilily Streel Hoslel.. Thi5 year some 206 men were supported to exit homelessness through the work of the Hostel, It should be more but due to the wider system silting up as people experiencing homelessness having reduced move on options due to highei. i'ents parti¢ulai'ly tn the private rented sector, our clients were staying longer. In spite of this. 65 men were supported through a coinbination of the day-to-day support activity of our front-line support staff and the direct support activity of Keys to Life. Our Keys to life progrdmme which was funded for three years by the National Lotteiy ComLllUnity Fund &'ew to a close. We want to acknowledge and thank the National Lottery for their enabliiig funding. The outcomes for the programme are iinpressive esp¢cially when one considers the transient nature of our client groiip and the impact of Covid on what was a socialisation-based programme.. Over 80 men took part (target was 96) with 60Ya achieving an award certificate or 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 undertook a Wellness progTamme with 9 staying the cours¢ to the end. 12 men achieved a food hygiene programme and award. 30 inen undertook TEFL ¢ourses. As their primary language was not English this Teaching English and Foreign Language course was v¢ry popular. 9 men achieved awards Èn OCN level 2 for Healthy living. 6 men built the sensory garden in BangoT. 12 men took part in the Toolbox programme to learn new skills for inaintenance and repair of household-based itsms. Public Bellefit The dirertors confuyn that they have had due re8ard for the guidance produced on Publi¢ Benefit by the Charity Commission for Northern Ireland, and ar¢ pleased to report that during 2023 they have continued to meet the Public Benefit r¢quÈrement as follows: The Core activity for HARMONI 2019 is the relief of povety. illness, sickness and suffering to those living wit sickness, disability. poverty or social cii'cumstances. All our engagetnent activitÈ¢s have been with individuals from one or a range of these groups, The organisation has sought to revive tbese impacts firstly by providing suitable and appropriate accommodation. be that in Supported Independent living or Hostel provision. The orgonisation sees that pi'ovision a5 the start of our servic¢ intervention. From that point forward, we seek to create a person-¢entred provision that is cognisant of the individual's need. Many of our residents and service users have those needs identified through proftssional assessment, either from the health care trusts or other social services. For others it is the skill and experience of the support staff which assist5 the individual to articulate those needs. Page 11
HARMONI 2019 REPORT OF THE DtRECTORS FOR THE YEAR ENDED 31 DECEMBER 2023 STRATEGIC REPORT . ACHIEVEMENT & PERFORMANCE (eontinued) Our core model rejnains accommodation-based care and Suppo subject to the service engageinent. We continue to believe that the most important element for all our clients Lemains ensui'ing a safe and secure place to live. This delivers consistency in what has for some of our clients been a chaotic life to date. Those for whom the need is centred personal care are provided a bespoke care and support daily living plan wbich ¢entres around their personal needs. This is achieved in conjunction with the South East Health Trust care management tegjns to ensure the assessed needs are rnet. Next of kin and f8mily provide valuable input to those requirements in the care plan development stage. Fuither supports ¢ designed which enable the ¢lieT]t to live &8 ind¢pendently as they wish or are capable of. All these plans are subject to regular review and updaÉing as ircumstances change. Those for whom support is the core fti¢us of our engagement will receive a personal support plan whi¢h aims to &ssist them in achieving their shoit-term goals which 2re aimed at delivering a longer term goal, in the case of our olients in Utility street this is independent living ill a pLa¢e of their choosin8. For many of our servi¢e users the Teality is that their experience with HARMON12019 is about sm&ll steps and personal capaoity / capability building. Many of our i'¢sidents and families have seen 2 inarked improvetnent in the individuals, engagement and socialisation skills and their ability to communicate their wants and needs per50naily. HARMONI 2019 works closely with multiple statutory bodies trj ensure we plan for and deliver suitable and successful out¢ornes for each and every one of our service users. This joined up approach ensuies that the overall public benefit is delivered where sei'vice users have longevity and ¢on5iStency and therefore tsnd not to mov¢ between other agencies or service provisions. Page 12
ARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2023 FINANCIAL REVIEW FIARMON12019 is a unique oi'ganisatior4 not least becaLL8e of the diverse nature of the servi¢e users but a150 because of the blended funding sources for our service delivery. Harmoni is very 81'atefiJl to the Northern Ireland Housing Executive and the South-Eastern Health and Sociat Care TrusL being the principal nderS of these activities. The directors note that there is a total Net InGome for 2023 of £199,159, compared to Net Expendithre of £98.199 in 2022. The directors also note that the Charity remains in positive position in term5 of generation of a surplus from opei'aling activities. 2023 saw Net Income from Operational Activities of £77,357, with a figure of £91,926 reflected in 2022. The inain points of note are- Incoining Resources have increased by £72,343 (1.990A) Increase in investment income of £7,318 (Increase of 5.22 0/0). Inci'ease in income from Chtable actlVLties of £64,500 (Incr¢a5e of1.84% ). Much of this increase relat& to inflationary uplifts Harmoni received in respect of soine fjjnding streams. Expenditure has increased by £86,912 (2.4501.) Increase in expenditure on charitable activities of £79,973 (2.290/D). Costs continued to in¢iease across all departinents and expense types, with further increases in utility Costs. insurance and food. Increased recruitment did howevei. Inean that we were able to reduce agency costs even in the face of rising national living wage level5. In 20?3 the organisation saw a gain on the revaluation of investment assets of £121,802. This relates to th¢ value of cui'rent asset investments (gain on revaluation of £66,802) and the revaluation on fjxed asset investments meant an uplift in the value of the properti¢s held of £55,000. The net effect of these movements is that the charity returned a Net Incom¢ fIgure of £199.159 in 2023. This gives reserves carried forward on the balance sheet at the end of the year comprising R&strioted Funds carried forward of £65,414 (2022.. £161,759) and Unrestrictrd Funds of £6.870,625 (2021: £6.575,121). The Unrestricted funds carried forward comprise Investment Revaluation ReSe1ve of £1,893,039 and General Funds of £4,977,586. The balance sheet of the charity Temains Strong. with current assets, including current &sset investments. oomfrfyrtably exceeding current liabilities by £3,149,686. Page 13
HARMONI 2019 REPORT OF THE DIRECTOILS FOR THE YEAR ENDED 31 DECEMBER 2023 FLNANCIAL REVIEW (eothtinued) During the year. our income came from the following source5'. Income for the year ended 31 December 2023 Donatlons & Le8acles 0% . Investments Charitable Activities 96% Oonations & Legacie5 Inve5tment5 Charitable Activities This income then allowed us to achieve our aims and objectives foT the ¢)rgaDisation through making the following expenditure: Expenditure for the year ended 31 December 2023 Investment Mgt Costs Grant Fundralslng Charitable Artivltles 99% a Investment Mgt Cost5 Grant Fundraising Charitable Activlties Page 14
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2023 Reserve5 Policy FIARMON12019 aims to maintain a level of resour¢es that match tbe needs of the oi'ganisation, both now. and in the foreseeable future. The iwo n1n objectives are that- a. the available reseLves ensure that the activities of the organisation could Continue in the face of any unexpected reduction in, or loss of. a particular tncome strew while allowing the OaniSation time tr) seek alternative ndS or rests'ucturelcut 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 risks that HARMON12019 could be exposed to, and the approprilte level of reserves that should be maintained. The current assessment of the target range of free reserves- funds that are freely av&ilable 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 poteatial to Gari'y out operations in line with the stratsgic plan. In canying out their assessment of reseives the Directors exclude the fixed asset fund of £2.5m because this represents functional, operational &ssets within the organisation that could not be i'ealised qui¢kly, restricted reserves of £0.065m whirh have restrictions placed over the use of funds by tbe individual funders, and the investment pi'opety value of £1.55rn which is used as mortgage se¢urity for the original long-tenrft loaa. After excluding the fixed asset fund this leaves free reserves of £? 84m, In the strategic plan 2022-2025 the Directors have identifled sevei'al key projects to investigate. They have also identified the need to build and maintain appTopriate reserves to carry out these plans. This is to ¢n5uI'e that tbe organisation can grow and develop while maintsining the range of s¢rvi¢eslactivities, and in time the resV¢S should return to a level equivalent to the equivalent of 6 months running costs. Investment Policy The Dii'ectors have agreed an tnvestrnent policy within the powers provided to them under the Articles of A550ciation of the orBani5ation. The organisation has a long-established balanced approach towai'ds inve5ttnent risk, with the need to both protect and grow the charities assets for all s¢rvice usei's. Therefore, the Directors define the organisation's experted investment profile to be balanced, with a desire to grow, but also protect the capital invested, whilst pi'oviding a useful source of incoine fi'om dividends. The Directors wish the portfolio to represent a balanced spread of investments in cquitics and fed interest 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 Nortbern Ireland Central Investment Furyd for Charities). All ar¢ professional investment managem¢nt companies An good standing and regulated by the Financial Conduct Authority, As a Charity with a strong Evangelical Christian heritage, the ethos of which casts a guiding shadow aci'oss the organisation's moral position, the Directoi's have advised the investment managers that the organisation do not wish to Lllvest in the following: Alcohol oi. tobacco trades Arms and munition5 trades The performance of the investment poitfolio is monitored iegularly by the Directors. In the year under review the investtnents 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 (¢outillued) PLANS FOR FUTURE DEVELOPMENT Our 2022 sti'ategic plan was purposely entitled Research, Knowledge, Action. The Trustees understood that development decLSLons of either service5 01. facilities needed to be underpinned by 501id actionable research. The Dormant Account fund has enabled Hannoni to have the facility of an in-house research associate and because of their inputs in June 2023 the Ti'iistees were able to approve our fiist prospecting exercise sinae 2019. Following a joint research exercise between Queens UnivetEity Business School and our In-House research associate a position paper was tabled showing that thei'e was a genuine need for day seryices or day opportunities in our catchment area. Anned with that inai'ket knowledge we agreed to take the next steps and produce an architectural specification and then conJnission a feasibility Study on the possible physical build required to meet the olient needs. This Study will be presenkd in early 2024. We have other aspirations too in respect to our Homelessness intervention sei'vices. We have long held aspirations of development at our Donegal Pass site and in eai'ly 2023 we were able to meet the proposed area development housing association to see if we could align plans. While not an iinmediate success the door remains open to future engagement and dtscussion as they start on their 3-5 ye. development joumey for the area immediately adjacent to our Donegal Pass facility. Allied to the foregotng we have initlated the idea of a Strategi¢ Fundraising Committee establishment as a cornmittee under the Board to assist us fmd a means to facilitate and enable our ideas and aspii'ations and capital capacity to fund those ideas subject to robust business ¢a5e Presentation. THANKS AND APPRECIATION HARMON12019 would lik¢ to place on record their thanks and appreciation for: The continued ndIng provided by the Health Trusts and the Nortbern Ireland Housing Executive towards the cost of providing vital services in Strickland's Care Village and the Men's Hostel. The National Lottery Coinmunity Fund for the funding to operate Keys to Lift project. The Dormant Account5 Fund Nl for the funding to facilitate the re8e8rch piojeot. The Ardbannon Ti'ust who providcd grant to help equip the hostel dining facility to update the environment. Those Inany organisations and individuals who made donations of money? goods and time to the Clients at the H05tel. Page 16
HARMOIYI 2019 REPORT OF THE DlliECTORS FOR THE YEAR ENDED 31 DECEMBER 2023 (continued) FIXED ASSETS Detail$ of fixed ass¢t movement in the year are given in not¢ 7 to the financial statements. Although the market value of th¢ operational property is comfortably in excess of its amortised historic Cost. the difference is not felt 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 inclvdes compliance with Ihe Sex Discrimination (NI) Orders 1976 and 1988 and the Dlsability Discrimination Act 1995. These policies are incorporated into the Equal Opportunity of Employment Guidelines that are adhered to by the harity. STATEMEwf OF DIRECTORS, RESPONSIBILITIES The directors are responsibl¢ for preparing the finallGial stat¢ments iti accordance with applicable law end Unit¢d Kingdom Generatly Accepted Accounting Pwti¢e. Company law requires th¢ directors to prepar¢ fLnancial staternents for each financial year whioh give a true and fair view of th¢ state of affair5 of the wmpany and of ihe profit or loss of the company for that period. In preparing those financial statemcats, the directors are required to select suit&ble accounting poli¢ies and th¢n apply them consistentLy. make judgements atld estimates that ar¢ re&sonable and prudenL prepare tb¢ financial statements on the going concern basis unless it is inapproprifyte to presum¢ that the company will continue in busllless. The directOTS are Tesponsibl¢ for keeping proper accounting records which di5Glose with reasonable xc¢ura¢y at any time the financial posilion of the company and to enable them to ensure that the financial statements wmply with the Compani¢5 Act 2006. They are also responsible for safeguarding the assets of the company and hence for lakillg reasonable stsps for the prevention and detection of fraud and other irregularities. REPORT AND FINANCIAL STATEMEKrs This report and financial statements have been prepared in accordance with the Statement of Reconlltt¢nded Practire: Accounting and Reporting by Charities and in accordance with th¢ Companies Aci 2006. AUDIT Th¢ directors hav¥ sought to make thems¢lves aware of any rel¢vant audit inforniation attd to establish that the audttors are aware of that information. Insofar as the board is aware there is no relevant audit infonnation of whtch the company's auditors are unawar¢. AUDITOR The ¢xt¢rnal audit as5ignmellt for 2022 and the subsequent 5 years has bc¢n award¢d to Baker Tilley Mooney Moore aft¢r ftn open competitive bid proc¢ss. ON BEHALF OF THE BOARD.. SA Humphrie5 - Secretary Date: . Page 17