HAIIMON12019 REPORT OF THE DIRECTORS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 REGISTERED rmBER. R0000316 (Northern Ireland) CHARITY COMMISSIOIY for NORTHERN IRELAND REGISTIL4TION NUMBER: 101731
HARMONI 2019 CONTENTS OF THE FINANCIAL STATEMEIYTS FOR THE YEAR ENDED 31 DECEMBER 2024 CONTENTS PAGE Company Information_...-.-..-...-...-..-...-... .-..-.--.-...-...-..-...-.-...-.......-........-......................-............... Report of the Directors 3-17 Report of the Independent Auditor_..-...-..-.-..-...-.~...-..~..-..-.--.-......-...-...-..-.......................... 18 - 20 Statement of Finaneial Aelivities 21 Balance Sbeet ........-...-..-...-.-......-...............--.--..-......-...-..~...-.-~.--.-..-... 22 ststement of Casbflows .-.--.-.-...-..-...-...-.-...-..--.-...-..-...~...-.--.-.......-...-...-...-..............................-. 23 Notes to the Flnanelfdl Statements .....-...-.~...-.~-.-...-..-..-...-.--.-...-.-...-...-..................-................ 24- 37 Page I
HARMOM 2019 COMPANY INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2024 DIRECTORS: Mr Paul Archer (Apwinted Chairman from 28 March 2023) Mr D McIlhagger Bsc. FIAE (Deputy Chair) Mr Brian Lavery Mr P Regan Mr Paul Collins Mrs Hannah Irwin Dr Joanne Drew (appointed 121h Febnwy 2024) Mr Robert Lyle (appointed 12 February 2024) Mrs Elizabeth Mary Kerr (appointed 1st March 2024) SECRETARY: Mr S A Humphries REGISTERED OFFICE: 39 Downshire Road Bangor Co Down BT20 3RD REGISTRAR OF COMPANIES NUMBEIL. R0000316 (Nortbern Treland) CHARITY COMMISSION NORTHERN IRELAND NUMBER: 101731 AUDfTORS: Baker Tilly Mooney Moo 17 Clarendon Road Clarendon Dock Belfast BTI 3BG BANKERS.. Nortbern Bank Limited tla Danske Bank Donegall Sq West Belfast BTI 6JS INVESTMENT ADVISORS.. Evelyn Partners The Ewart 3 Bedford St Belfast BT2 7EP SOLICITORS: Cleaver Fulton & Rankin 50 Bedford Street Belfast BT2 7FW Page 2
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2024 FORWARD l am plea$¢d to pr¢s¢llt on b¢half of the Trustecs of Harnlonl 2019 the annual report and accounts for the year I" January 2024 to 31" December 9024. I on¢¢ again would a¢knowlFdg¢ tny indebtedness to my colleagues on Ihe Board for their interest and commitment to guide the work of Harnionl. 2024 was a reflection of the inherent wmplexitie5 in a service such a5 OUTS and I am thankful to the CEO and the executive team for their dedication and comprehensive information sharing which inf0rn15 the work of the board. I would once again acknowledge and thank both the South Eastern Health and Social Care Tnt (SEHSCT) and the Northern Ireland Housing Executive (NtHE) and we acknowledge thellr continuing engagement and contracting of s¢rYi¢e$ with us. I would also like to express our appreciation for the WO of th¢ DOHIHSCNI Strategic Planning and Perforniance GTOUP (SPPG). Over these past number of years. we have noted a greater access to the strategic policy and perforniance group who are showing 2 very refreshing realism in the setting of key policies and strategies. especilY as they reflect the inGreased Gosts on us as the independent charity sector in the delivery of services under contract to the DOH and Trusts. As with each passing year. our financial year Gomrnenced with limited underslanding of any potential uplifts, but the now more reCuent process with the DOHISPPG allowed us to be part of the discussion from early on. Particularly through the work of the Association for Real Change here in Northem Ireland who have fostered more and more opportunities for us as a small provider lo be at the table when key discussions are working through. So. I would place on record our thanks to Les1ie-Atme Newton for facilitating and ¢ucouraging that. Our CEO stepped down from the board of Homeless Connect in 2024 after 3 years of servtce on that board in order to focus on our developm¢nt planning here at Harn]onl. We acknowledge the excellent work Hom¢le5s ConneGt do as they seek to represent the providers of Homeless services as a membership organisation. The development discussion culminated in a significant strategy paper for the board to reflect upon which was delivered in November 2024. That set the scene for a strategy day being convened in 20?5 at the end of January. It is safe to say that l and the board are excited at th¢ prosprft5 befor¢ us and most signifjcantly the opportunity to do more for more. l am especially delighted that our development strategy has two major opportuniti¢s for us to pursu¢ both for the Stricklands Care Village and our Homelessness intervention work in Belfast. It has been many years since we have been in such o strong position to wnsider both service elements at the sam¢ tim¢. 2025 will bc a pivotal ycar in th future strategy decision-making processes. Finally, as the only Teason we exist is because we have people who need our services. I would again plac¢ on record our appreciation lo the clients who have trusted us to prnvide caTf and support to thern. That work is only possible because of a deJJi¢ated team of individuals who operate otL the front lines daily. To our ¢oll¢agues in the fLDnt lincs of managemenL supervision and service delivery we say thank you for your service. I look forward to 2025 when our current strategic plaD comes to an end and our n¢w plan is developed. I have little doubt it will stretch us financially, operationally and strategically. but stretch us it must as we aspir¢ to do mor¢ for morel PaulArcher- ChaIrnrt Page 3
HARMONI 2019 REPORT OF THE DIREcfoRS FOR THE YEAR ENDED 31 DECEMBER 2024 STRliCTURE GOVERNANCE AND MANAGEMENT Governing Do¢ument The legal entity name was ¢hanged on 8th January 2019 from NIID to HARMONI 2019 Trading as Harnionl. HARMONI 2019 has its origins in late 19th century Belfast. It was incorporated on 19dJ Jthy 1906 as a charitable Company limited by guarantee and not having share capital. The objects and powers of HARMONI 2019 are set out in the Memorandum of Associatio and the Company is governed under its Articles of Association, as updated in 2014 and regiskred on 28 March 2014. In the event of the Company being wound up Members are required to contribute an amount not exceeding £1.00. HARMONI 2019 is on the Northern Ireland Charity Register, registrntion number 101731. Since registration, the DIrtOr Trustees have embaTked and maintained periodic specific training along with the Management team to understand fully the implications, responsibilities and expectrdtions of HARMONI 2019. the TnteeS and the Management who operate under delegated authority. As identified in the 2023 report we concluded the review and lllate of our articles of association. None of the changes were regulated alteTations. Dlrectors: Re¢ruitment and appointment of dirvtors Under the requirements of the Arti¢les of Association as revised in March 2014, the directors are trustees of the charity and are known as Members of Council. From that revision date, Director Tn]stees serve for 4 years dated from the first AGM at which they are voted in, they are eligible to serve up to three tern]s of four years at which point they must retire. The date Cycle is from their rst AGM to their fourth AGM. Name of Director Trnstee Appointment Date Expected terni end AGM date Archer, Paul (Chair) 28° Ma 2023 1st terni chair June 2026 m¢Iller, David 30th June 2010 INED) Chair May 2014- Dec 2020 Appointed Deputy Chair 1st Jan 2020 (Deputy Chair) June 2026 Reagan, Peter 29th October 2014 June 2027 Lavery, Brian 18° May 2020 June 2028 Irwin, Hannah 15th June 2020 June 2028 Collins, Paul 15th June 2020 June 2028 Drew. Joanne 12th Febnwy 2024 12th February 2024 June 2028 Lyle, Robert June 2028 Kerr, Elizabeth Mary i $1 March 2024 June 2028 Page 4
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT continued Director Trustees during reporhngperiod No Member of the Board of Director Trustees had a beneficial interest in any contract witkn HARMON12019 duriDg the year. Succession Planning: Harn]onl continues to manage the need foT succession in the following manner.. I: Trustse appointments are phased in so far as possible so as not to risk a significant number of multiple Trustees ending their tenure simultaneously. 2: From 1st January 2020 the board of trustees have created a deputy chair role to ensure that in the event of the hair being unavailable there remains a line of consistency in the cEwity governance. 3: The Cbair of the Finance and General Purposes Committee is genera]ly not the ¢hair of the 11 board to ensure a degree of separdtion and independence. Truslee induction tznd Iraining Trustees are aware of the practical work of HARMONU 2019 at the hostel in Belfast and Strickland's Care Village in Bangor. New trustees are expected to attend an inforn]ation session to familiarise themselves with how HARMON12019 operates. These are jointly led by tbe Chair of the Board and th¢ Chicf Ex¢cutiv¢ of HARMONI 2019 and cover the following: The obligations of the Trustee Directors The Articles of Association The financial position as set out in the latest published aoUnts Future plans and objeciives New trustees receive copies of the Articles of Associatio tbe latest financial statements, the ¢urrent strategic plan and a copy of the Code of Good Governance produced by NtCVA. They then meet the CEO and undertake a half-day induction process to provide informatÉon on the chaiity fimctlOD. To ensure that trustees have up to date knowledge regarding charity management issues and the impact of changes in the public sector it is expected tbat trustees will have the opportunity to attend suitable training and infom]ation events. The CEO will disseminate details of any such events as they bpKome available. The CEO also disseminates all regulatory guidan¢e to trustees as it is received by the charity. Risk management The Board of Director Trustees continues to review the Major risks to which HARMON12019 is exposed. The risk management strategy for HARMONI 2019 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 & risk which could render the organisation impotent. The risk fraew0C seeks to fiTStly identify the organisational risk appetite, over a range from low, mediutn or high appetite. The Board of Trustees receive regular updates to the risk register. This process allows the board to see pertinent corporate risks, these risks are Categorised with probability and irnpact scores as Hig1 Medium or Low risk. This measurement is designed to identify risks that require immediate attention and rn1tigatio and those that need attentioty but are less immediate. Page 5
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT (continued) Each risk is then identified with a risk owner and a mitigation pian narrative provided. Each update of the register identifies new risks and changes in the previous risks due to the effects of the planned mitigation or other external circumstances. The core risks for 2024 were identified as: Budget Delivery: At the outset of the year armed with lilted knowledge on any possible uplift potential from our core statutory partners for the services delivereQ the budget presented as a worst-case scenario was a deficit. As ever the CEO and executive team produced a mitigation pian to identify key activity and tssks to minimise this risk. We are glad to report that due to an improvement in employed staff resourc¢s compared to the agency potential budgeted coupled with signific8lltly better than expected uplifts from The Trust and NIHE we rettmed a positive surplus result for the underlying business of the charÉty. Funding Compression: We are pleased to report that due to the realism at work through the SPPG over the l&st number of years we have noted an improvement in the uplift percenlages as It is tecognised that the true fjjll recovery ¢osts of care delivery which has been outsourced by trsts to charitable entities such as HarmonI needs adthessing. In 2024 the NIHE also made an improved contribution, one which was very welcome but regrettably not one which has as yet received the same recuffent realism. To that end our risk profAle for flding compre55ion wa5 for the first time in a number of years improved significantly. Staff resources: We like all Providers in the sector need to be exception&Uy agile and imaginative in the Te¢nJitment of suitable staff to provide front-line care and support. Thi5 has been the situation for many years and while there is talk at Stortnont of DkIng Hea]th and Social care and real living wage employment option with recurrent funding from the DOFU SPPGI Trusts that aspiration has yet to be realised. Notwithst£mding th¢ afor¢m¢ntion¢d we at Harn[ havc bccn able to maitttain our rccruittncnt at levels significantly better than some of our peer organsiations. For Stricklands Care village our percentage staff yanCy rate av¢raged 9.90/. (220/9 in the wider sector) while for Utility Street it remained stubbornly high at 26.5 %. Early indication5 for 2025 sbow the rate in Utility Street improving to 13.6 /ts while Stticklands Care village is showing signs of a slight improvement to 9.3 %. Cyber Risk: We were encouraged by our insurance partners to add cyber risk as a key risk item. This had led us to reevaluate out It internal network architecture. our use of cloud based storage and software and the provision of our Firewall and protective tecbnologies. This led us in 2024 to appoint a new provider following a select list EOI exercise, WI h&% updated all our aging intemal and external-facing equipment and protocols. The risk registered is augrnented at each board meeting with a full CEO report showing key Strategic, Director and Operational detail alongside a stand-alone report on Health and Safety and any anonymised Safeguarding issues or Deprivation of Liberty issues which would be wtinent for the Tnjstees to be aware off. Page 6
HARMON12019 REPORT OF THE DIRECTORS FOR THE YEAR EI¥DED 31 DECEMBER 2024 STRUCTURE, GOVERNANCE & IKANAGEMENT {contiDued) Orgaft&falional structure The Board schedules four meetings a year and is responsible for the strategic direction and policy of HARMONI 2019. The Trustees come from a variety of professio[1 backgrounds relevant to the M'ork of HARMON12019. The Finance and General Purposes Committee meets a week prior to the Board and recorded f4Jur meetings in 2023. This continues to include the Arniual Report 2nd Accounts presentation to the committee by the Auditors. The development committee, which 15 a project-b&sed committee, reconvened three time5 in 2024 disc$S1onS in respect to the future development opporttuiities were restarted in earnest. Responsibility for operations management is delegated to the Chief Executive. Governance: The Board will fornially meet a minimum of 3 times in the year to take care of the ordinary business of the charity and its governance Tequirements. The board also receives a detailed sub report on Health and Safety, Safeguarding and Deprivation of Liberty i55ues if any have arisen. They will meet at other times for special topics meetings as and when required. Tbe Sub Committee of the Finan¢¢ and Genernl tknrposes Committee will nornially meet one week in advance of each formal board. The Development Committee will meet as required to meet the needs of the project timeline. Corporate Oversight: The Senior Management Te8Jn meets regularly to ensure the management of the main corporate needs are being met. A key element of this discussion wijl be the budgets, actuals, and variances we are experiencing and what controls or chaDges we need to effect in order to keep the organisation on track. We will also review progress in respect to recruitment and retention for OUT services. Corporate Management: The Unit Managers will meet with members of the Senior Team as required to revi¢w th¢ pcrforniance of the overall business with specific input from the unit heads. These discussio$ include tbe regulatory and Compliance elements from the funders and commissioners of the servi5 and also key safeguarding issues. Operations Man8geme•t: A member of the Senior Team meets their direct line management team as needed to review and discuss operational issues and take any operational decisions arising. Page 7
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR EIYDED 31 DECEMBER 2024 STRUCTURE, GOVERIYANCE & mANAGE1ENT (continued) The operational organisation structure: 2n24 th&i.- P4Jl Arther" Mauri6•1n fjenctal M•fj 5hlrlèy.AnmeM<Felts Icalratl an4oi SÈnior prtY0•D Page 8
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2024 STRUCTURE, GOVERNANCE & MANAGEMENT (eontinlled) Related partles HARMONI 2019 did not have any dealings during 2024 with arty companies or other organtsations in which any of the directors have an interest. OBJECTIVES AIYD ACTIVTfiES The principal objects, as update<L of HARMONI 2019 are to: _ To relieve poverty, illne55, Sickness and suffering of people who aTe in need by reason of sickness. disabAlity, verty or social and e¢onomic circumstance ('the benefiGiaTies). To advance the interests of beneficiaries by all means includin& but not limited to, their closer integration into wider society. In the interests of social welfare to provide or assist in the provision of supported housing facilities or other services, such as nursing care or domiciliary care. which improve the conditions of life of the beneficiaries and provide or assist in the provision of respite care OT Other support for Carers of the beneficiaries. To advance the education of the beneficiaries and educate and raise awareness among the public of issues pertaining to social welfare 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 secure respite care. Such other exclusively charitabEe purposes according to the law of Northern Ireland for the beneficiarles as the Tnlstees may from time to time decide. Strickland's Care Vdlage located in BaDgor provides mmOdation in thity-three sepate units for those individuals livitig with a disability and needing support and care at various levels depending on assessed need. The Belfast hostel provides emergency accommodation for fifty-nine men experiencing homelessness with one room spe¢ifi¢ally renovated for men with disabilities. The men are supported and encouraged to improve their situatioo by taking the necessary steps to move on to training opportUDities and employmenL and to pemLqnent accommodation. There is close cooperation with the ststutory authorities and the Northern ITeland Housing Executive. Page 9
UARMON12019 REPORT OF THE DIRECTORS FOR THE YEAR EIYDED 31 DECEMBER 2024 STRATEGIC REPORT: ACHIEVEMELYf & PERFORMANCE STRATEGIC REPORT Achievements and Performauee Orgonisalional.. A signifiwit achievement organisationally for 2024 was the ability to reverse the potential deficit to a surplus. This was derived from a series of mitigation actions by the Executive coupled with better-tban-expe¢ted increases from the Trnst and NIHE. Over the past 2 years we have received two very genero8 bequests, one from a previous tenant and one individual whose historical connection to the charity is unclear. Their generosity as a reflection of the good standing which the charity has held for them enabled us to utilise some of the financial gift to carry out some much-needed itnprovements for the clients facilities io Bangor and BelfasL Strlcklands Care Village: 20?4 was a key challenge for the care village management as our Registered manager, Anwida Barr had decided to pursue other career Options for the tte. We express our gratitude to her for the work she did in the care village. The process of replacing Amallda was challenging with numerous false starts but mercifully we were able to recruit a new Registered Manager, Emma Hanna joined in in July 2024 and comes with a wealth of experience in our sector, It would also be remi55 if we did Dot reflect our appreciation to the Team Leader Natasha Hull who alongside the CEO, HR Manager and Senior Support staff managed the service to an excellent standard in the vacancy. Something that was reflected in the RQIA un8nUCed inspection where no improvements were required. The client losses in late 2023 remained unfilled during the most of 2024. Work is ongoing and we aTe expected to return to full occupancy levels by Q3 2025. Our maintenance programme continues to ensure the clients homes are nMintained to the high standards we aspire to for them. As mentioned above the bequests allowed us to carry out some key nkaintenance upgrades to clients properties to ensure their safe living standards remained &8 high as SSIble. Page 10
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR EI¥DED 31 DECEMBER 2024 STRATEGIC REPORT: ACHIEVEMENT & PERFORIVIANCE (eontinued) Ulility Street Hoslel.. WAth the ending of our Keys to Life programme in late 2023 we have ken working across 2024 to identify a suitable engagement piece to meet the needs of our clients in the Hostel. In 2024 we received 328 Terea]s, due to the silting of the system and fewer options for move on we were only able to take 81 of those referrals, so in total 132 tnen utilised the servic£. Times have changed and we have noted a signifit slowdown in tumover where the number of clients with a 5ucce5sful outcome of move on into a tenancy has halved, in 2024 we recorded 46 successful outcornes. This is largely due to the grinding to a halt of new affordable and suitable accommodation availability in the Nl marketplace. Private tenancies have reduced as landlords pursue more financially beneficial tenancies not linked to housing benefit. Public housing througb Housing Associations hos reduced significantly from the eXpted 3000+ units in 2024 to 450. This is linked to a range of i&sues from service utilities being over capacity in some areas stalling new builds, to grants from NTHE for new Social Housing builds being limtted due to overall budget The silver lining to tbis scen2TiO however Iw been a new drive by the HanDont eXUtiVe to become part of the solution to the housing need. We are therefore working up into 2025 a new approach which we hope will see Harniont becotne a landlord in the future ard provide housing directly to our clients who are Teady to leave Utility Street. This audacious goal will be a multi-year projecL but we are detern)ined to assist our clients move on. Public Benefit The director5 Confrn that they have had due regard for the guida¢ produced on Public Benefit by the Charity Conmiission for Nortbern ]land, and are pleased to report tbat during 2023 they have contsnued to meet the Public Benefit requirement &8 follows: The core activity for HARMON12019 15 the relief of povety. illness, sickness and suifering to those living with si¢l(ness, disability. poverty or social circumstances. All our engagement activities have been with individuals from one or a range of these groups. The organisation Iw sought to revive these impacts fwstly by Providing suitable and appropriate accommodation, be that An Supported Independent livxng or Hostel provision. The organisation sces that provision as the slart of our service interventio From that point forward, we seek to eate a person-centred provision that is Co&15allt of the individual's need, Many of our residents and seTvi¢e users have those needs identified through professional assessment, either from the health care trusts or other social services. For others it is the skill and experience of the support staff which assists the individual to articulats those needs. Page 11
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 3] DECEMBER 2024 STRATEGIC REPORT . ACHtEVEMENf & PERFORMANCE (continued) Our core model remains a0modatIon-b&ed care and suppor¢ subject to service engagement. We continue to believe that the most important element for all our clients remains ensuring a safe and secure place to live. This delivers consistency in wbat has for some of our clients been a chaotic life to date. Those foT whom the need is centred on personal care are provided with a bespoke care and support daily living plan which centres around their personal llecd5. This is achieved in conjunction with the South East Health Trust care nlag¢mellt teams to ensure the as5e55ed needs are met Next of kin and farnily Provide valuable input to those requirements in the care plan development stage. Further support is designed to enable the client to live as independently they wish or are capable of. All these plans aTe subject to regular review and updating as circumstances change. Those for whom support is the core focus of our engagement will receive a personal support plan which aims to assist thetn in achieving their sliort-terni goals which are ainjed at delivering a longer tem goal, in the case of our clients in Utility Street this is independent living in a place of their choosing. For many of our service users the reality is that theAr experience with HARMONI 2019 is about small steps and personal capacity I capability building- Many of our residents a1 families have seen a marked improvement in the individuals, engagement and socialisation skills and their ability to communicate their wants arjd needs personally. HARMON12019 works closely with multiple statutory bodies to ensure we plan for and deliver suitsble and sUcKesSl outcomes for each and every one of our service users. This joined up approach ensures that the overall public benefjt is delivered where service users have longevity a[ consistency and therefore tend not to move between other agencies or service provisions. Page 12
IIARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2024 FINANCKAL REVIEW HARMON12019 is a unique Organisatio not least because of the diverse nature of the service users but also because of the blended ftmding sourees for our service delivery. Harnioni is very grateful to the Northern Ireland Housing Executive and the South-Eastern Health and Social Care TrusL being the principal funders of tbese activities. The directors note that there is a total Net Income for 2024 of £762.630, wmpared to Net Income of £199,159 in 2023. The director5 also note that the charity remains in positive position in tern of generation of a surplus from operating activitie5. 2024 saw N& Income from Operdtional Activities of £579,812, with a figure of £77,357 reflected in 2023. The main points of note are- Incoming Resources have increased by £496,557 (13.40/0) Increase in legacies and donations income of £456.908 (No legacies received in 2023; Iwo difftrent legacies received in 2024}. Increase in itivesttnent Iome of £4.842 (Inciease of 3.3 0/0). Increase in income from clwitable activities of £34.807 (Increase 010.980/0). Mu¢h of this increase relates to infiationary uplifts Harnioni received in respect of sotne funding streams. Expenditure has decreased by £5,898 (0.160/0) Increas¢ in investm¢nt management costs of £17,759 (340/0) in respect of refurbishment costs of one of the apartments in the investment property held at Derryvolgie Mews. Decrease itt expenditure on charitable activities of £23.657 (0.66% ). Costs continued to increase across 211 deparknents and expense types, with significant incre&8es in wages and SaIleS (NLW increase of 9.7 % ) and repairs. But also, in the year there was a significant Yeduction in agency costs as the overall supportlcare requirement reduced to the number of voids on site. In addition, 2024 had no costs related to th¢ Keys to Lifc programme at Utility St Hostel. In 2024 the organisation saw a gain on the revaluation of inveslment assets of £182.818. This Telates to the value of ent asset investsnts (gain on revaluation of £81818) and the revaluation on fixed asset investhlertts nkallt an uplift in the value of the Properties held of £lOO,000. The net effect of these movements is that the charity returned a Net Income figure of £762,630 in 2024. This gives reserves carried forward on the balance sheet at the end of tlle year comprising Restricted Funds caffied forward of £59,752 (2023: £65,414) and Unrestricted Funds of £7,638,917 (202i: £6,870,625). The Unrestricted funds carried forward comprise Investment Revaluation Reserves of £2,075.857 and General Funds of £5,563,060. The balance sheet of the clwity remains strong* with current assets. including current asset invesknents, comfortably exceeding current liabilities by £3,766,921. Page 13
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2024 FINANCIAL REVtEW (continued) During the year. our income came from the following sources: Income for the year ended 31 December 2024 Donations and Legacies 11% Investments 4Y. Charitable Activities 85% Donations and Legacies Investments Charitable Attivities This income then allowed us to achieve our ain and objectives for the orgaDisation through making the following expenditure - Expenditure for the year ended 31 December Grant Fundrarsing 2024 Investments Mgt Costs 2% Charitable Activities 98% Gr3nt Fundraising Investments hAgt Costs Charitable Activities Page 14
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2024 Reserves Policy HARMON12019 aims to maintain a level of resources that match the needs of the Organisatio both now, and in the foreseeable ture. The two n1n objxtives are that- the available reserves ensure that the activities of the organisation could continue in the face of any unexpected reduction I or loss of, a particular incoft stream, while allowing the organisation time to seek alternative funds or restructurelcut costs. the available reserves allow the organisation to progress with the service development plan laid out in the strategic plan 2022-2025. The DirtOrs assess the risks that HARMONI 2019 could be exposed to, and the appropriate level of reserves that should be maintained. The current assessment of the target range of free reserves- fidS that are freely available to be used for general charitable purposes- held by the Company should be 6 months of expenditure, with an additional amount to allow the Board the potential to carry out operations in line with the strategic plan. In ¢arryirAg out their assessment of reseryes the Directors exclude the fixed asset fund of £2.4m because this represents funGtionaL operdtioaal assets within the organisation that could not be realised quickly, restricted reserves of £0.059m whicb have TestrictioJL8 placed over the use of funds by the individual fLmdeTS, and the investment property value of £1.635m which is used as mortgage security for the original long-tern] loan. After ex¢ludiDg the f(ed asset fid this leaves free reserves of £3.58m. In the strategic plan 2022-2025 the Directors have identifid several key projects to investigate. They have also identified the need to build and Dintain appropriate reserves to cany out these plans. This is to ensure that the organisation can grow and develop while nThintaining the range of serviceslactivities, and in time the re5erve5 should return to a level equivalent to the equivalent of 6 months Tunning costs. InVtellt Policy The Directors have agreed an investtnent policy within the powers provided to them under the Articles of Association of the organisation. The organisation has a long-establisbed balanced approach towards investment risk, with the need to both protect and grow the CIltieS assets for all service users. Therefore, the Directors defme the orgaDisation's expe¢ted investmeot profile to be balanced. with a desir¢ to grow, but also protect the apital invested, whilst providing a use1 source of income from dividends. The Directors wish the portfolio lo represent a balanced spread of invesitnents in equities and fixed interest securities and bonds. The investment portfolio was managed during the year under review by Evelyn and Partners alongside Abrdn (fornierly Aberdeen Standard Capital} (on behalf of the Northern Ireland Central tnvestment Fund for Charities). All are professional investment managent companies in g(x)d standing and regulated by the Financial Conduct Authority. As a charity with a strong Evangelical Christian beiitage, the ethos of which casts a guiding shadow across the organisation's mornl position, the Directors have advised the investment managers that the organisation do not wish to invest in the following: Alcohol or tobacco trades Arnjs and ttwnitions trades The perforM8ce of the investtnent portfolio is monitored regularly by the Directors. In the year under r¢view the investments Continued to perforn] well and in line with objectives providing a good level of dividend income. Page 15
HARMONT 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2024 (tontinued) PLANS FOR FUTURE DEVELOPMENT Throughout 2024 we prepared a study on potential diversification on the Bangor site. This diversifL¢ation was to deterniine if it would b¢ fe&sible for HarnionJ to build and operate a day service for clients both on site and those who are housed &xternally to Harn]onI. We carried out background research into the requirements and the needs. Arnied with a belief in the data that a real need existed in our locale, we engaged our architect to produce a scheme and a costing. We tben reviewed that 5¢heme using a simple gearing concept to determine the minimum and maximum build cost parameters we would use for our business Case rnodelling. Regrettably wIn we reviewed & business case on the data it was clear that such a serYi¢e while desirable would not be financially viable. In reality the costs to build the Property could not be met from within the fllMicial delivery model making the risk too high for the charity. Further the local trust were not of the belief that their funding parametsrs would expand to provide per person fillillg required for clients with disabilities. As a re5uIL and in the absence of any major fimding streams for capital build, the Trustees regrettably shelved the idea. In Nov 2024 the CEO produced an options review paper which the board met to carry out a deep dive into in January 2025. As a resulL the Trustees have agreed to take the fwst tentative steps towards the development of the 12 apartments from the original Care village scheme and secure p1ar1Thg pernii5sion for those. THANKS AND APPRECIATION HARMONI 2019 would like to place on record their thanks and apprttiation for: The continued funding Provided by the Health Trusts and the Northern Ireland Housing Executive towards the cost of providing vital services ID Strickland's Care Village 3JMI the Men's Hostel. The Dornwit Accounts Fund Nl for the funding to facilitate the searCh project. Those many organisations and individvals who nde donation5 of money, goo(Ls and time to the clients at the Hostel. The legacy provided by our two bequests received in 2024, it is now and always has been our desire to honour the generosity of individuals who have been touched by the work of the charity in the p&gL by ensuring that those lega¢ies are used to m&ximise the seryiGes to the clients we serve. Page 16
HARMONI 2019 REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2024 (continued) FIXED ASSETS Deiails of fixed asset movement in the year are given in note 7 to the financiat ststemcnts. Although tbe market value of the operational property is comfortably in exce55 of its amortised historic ¢ost, th¢ difference is not felt to be of signAfican¢¢ to members. FAIR EIKPLOYMENT The charity is committed to a policy of equal opportunities for all Gutrent and future employees. ThÈ5 policy also includ¢s compliance with the Sex Discriminalion (Nl) Order5 1976 and 1988 and the Disability Discrimination Act 1995. These policies are incoorated into the Equal Opportllnity of Employment Guidelines that are adhered to by the charity. STATEMENT OF DIRECTORS, RFSPONSIBILrrIES The dire¢tors are responsible for preparing the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting PTactice. Cornpany law requires the directors to prepare finallcial statements for each financial year which give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period, In pparillg those financial statements, tbe dir¢¢tors ar¢ required lo sglert 5uitsble acGounting policies and then apply th¢m consistently. make judgements 2nd estimates that are reasonable and prudent. prepare tbe fmanctal statements on the going concern basis unless it is inappropriate to presume that the company will ¢ontinue in business. The directors are responsible for keeping proper accounting records which disGLos¢ with reasonable accurw at any time the financial position of the wmpany and to enable them to ensure ihat the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the a55¢ts of the company and hence for tsking reasonable 5tsp5 for the prcvention and detection of fraud and oth¢r irregularlties. REPORT AND FINANCIAL sfATEkktENTS This report and financial aterntnts have been prepared in accordance with the Ststement of R¢¢ommended Pra¢ti¢¢: Accounting and Reporting by Charities and in accordance with the Companies AGt 2(KI6. AUDIT The directors have sought to make themselves awate of any relevant audit inforn]ation and to establith that the auditors are aware of that infonnation. Insofar as the board is aware there is no relevant audit inforniation of whiGh the company's auditors are unaware. AUDITOR The external audit assignment for 2022 and the subsequcnt 5 years bas been awarded to Baker Tilley Mooney Moore after an open cornpetitive bid process. ON BEHALF OF THE BOARD: SA Humphri¢s - Se¢relary Date: . Page 17
HARMON12019 INDEPEIWENf AUDITORS REPORT TO THE TRUSTEES OF HARMONI 2019 Wehave audit the financial statements ofHARMONI 2019 ('cl[lab1e (1)mY') fortheyear &ed 31 Decanber 2024 which)m StatementofFttMnciaJ Arttvttie4 the Balan SW Slatem&rtofCa8hfiows &Mlnoks tothe financiat slat• incIlIng Silfi accouw FA)licies. The financial rqxxting franrworkthath&8 Iwi appli in their ption is applicable law al United KitEkn] Acrounting Skn)drt incn Financial Stath E02 Practice). ve &true and fiir view ofthe ofthecharitable Lxxwany's affaits as at 31 Lknathr2024 and ofits incomir fi)ropMwn We c0ndwtQUraJt in accorthwith tntanatiornl Strt jAlrtg(uK) OSAS IUKI) and applicable law. Our rw(S1bIllknes under Ihose S1mIardS are fiMthttdwiiEd intheAudik)fs TqyxThI)ilits fr the audit ofthe fjnan¢ial are relevantto our audit ofthe finwKial Stren inthe UK IRUthDg the FRC'S Ethical alwe have fifilled o sufficient and appryriatetoprovide a EMsi4 our opinio PIPP]0 ofthe knial stateMts is appryiie. ind1vidLllY orcollectively, Inaycast significartd(xthtonthe th&itableLYq)]panls abllitytocontinue as agoing concetn fora this reEx) ourreto¢ we do n(rt exp any fonn Ofa conclusion11[s) Ourwibility is to Thd Iheother it1foOrtn in doing so, conskkr Wther the other infollnation is matel1Y jrLx)tlltwL1hlhe fitJanciaI Statern or0urknowlge 1nf0rn)atio we wired torewrt trot We have toreEx)rt inthis regard In ow Opinio ly&sed oner work inthe c(jue ofthe awlit In the lightofts knowledge and uNlenall ofthe cbltsb Corn)y its environmtdknil inth¢ L¥HKse ofd Page 18
HARMONI 2019 INDEPENDENT AUDrroR'S REPORT TO THE TRUSTEES OF HARMON12019 (eontiDued) to you if, in ouropinion: ]nprep the financial ststen the Dir5 Rsp)nsibk fOring the ch&itsble comFQry'S ability to Contin as a goingc4)rKerr4 disclosi asaFylicabl@ nTrlleTS ladts) going cotKemand llsingthegojngc0ern knis ofaccounti]]g the trustees either intend to Iiqludatethe ckwitsble cwy orto £e opXi0 or bave no Thlistic atternative butto do so. high level ofa&5a butisnot Ihatan alte0nd1 ]na(wr wilhISAs (UK)wlll always detect tKIow: We considered the opporMnities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to revenue recognition. In common all audits under ISAS (UK), we are also required to perfom specific procedures to respond to the risk of management override. We also obtained an Und¢tandIng of the legal and regulatory frameworks that the charitable Compony operate5 focusing on provisions of those laws and regulations that had a direct effect on the determination of material atnounts and disclosures ID the fwJan¢ial statements. The key laws and Tegulations we considered in thts context included the UK Companies ACL and The ChaTities Act (Northern Ireland) 2008. In additio we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company's ability to operate or to avoid a material penalty, These included compliance with Financial COluCt Authority r¢gulation for the UK OP¢Tating segment and compliance with loral legislation for the overseas operating segments. Our procedures to respond to risks identified included the following: reviewing the financial statement disclosures and testing to supporting documentation to asses5 compliance with provisions of relevant law5 and regulations described as having a direct effect on the fmancial statements. enquiring of management and external legal Counsel ci)ncerning tUaL and potential litigation and Page 19
HARMONI 2019 INDEPENDENT AUDITOR?S REPORT TO THE TRUSTEKS OF HARMONI 2019 (continved) perfonning ar]alytical procedures to identify any unusuaI OT unexpected relationships that may indicate risks of material misstatement due to fraud. readAng minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing regulatory corresFK)nden¢e" in addressing the risk of fraud through management override of controls, testing the appropriateness of joun]al entries and other adjustments. assessing whether tbe judgements Dde in making accounting estimates are indicative of a potential bias. and evaluating the rationale of any significant transactions that are unusual or outside the norn]al wurse of business. We also communicated relevant identified laws aDd regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or noncompliance with laws and regulations thmughout the audit. Be13use ofthe inhere limitsts0% ofan i8aiid(thatwewi]Inotdelect all iryularitias, inchdingdK)se leading kn a htJ/www.fi.org.uIadI10EspOA8lb]Ittle& This dlpti fornts prtofowauditrr'swwrt si)ificant &ficiencies inintenial controlthatwt identify (knllmg ourw(tiL Useofour repxt ThisreEth is m&Jesolelytsthe ckwltse (x)mtwry's memlKr4 as alxmty, in &o)lllance with Cbapter 3 ofPart16 oflbe nMtt&swe atr to stste to d inanaudtttrfs forD)01PU[PjSe. To fjJlleEt exkntpern]itted by law, M¢ 10(on Eimear Brown (Senior Statutory Auditor) For and on behalf of Baker Tilly Mooney Moore Registered Auditor 17 Clarendon Road Clarendon Dock Belfast BTI 3BG Date: Baker Tilly Mooney Moore is e]igible to act as an auditor in teTms of section 1212 of the Compatiies Act 2006. Page 20
HARMONI 2019 (REGISTERED COMPANY NUMBER: R000316) {REGISTERED NORTHERN IRELAND CHARITY NUMBER: 101731) STATEMKNT OF FINANCIAL ACTIVTTIES (Incorporaling the Income and Expenditure Account) FOR THE YEAR EIYDED 31 DECEMBER 2024 Note8 Restricted Funds Unmtrieted Funds 31.12.2024 Total 31.12.2023 Totsl INCOME & EfiDOWMENTS FROM: Do]tionS & Legaci¢s 460,999 460,999 4.091 Investments 152,153 152.153 [47.311 Charitable Activities 868,898 1727.885 3.596.783 3,561.976 Totsl Ineome 3 341037 4 209 935 3 713378 EXPENDtruRE ON: Raising Funds- Inv¢s¢m¢nt Manag¢meDt cOs 69.988 69,988 52,229 Raising Funds- Grant Fundraising 4.320 4.320 4.320 Charitable Artivities 1.035,976 1.035.976 2,519.839 3.555,815 3.579,472 Total expenditure 2.594,147 3,630.123 3.036,021 Net {Expendithre)an¢omt from operational aetlvltles (167,078) 746.890 579,812 77,357 Gain/(Loss) on r¢valuation of inveslment awts N¢t {Exp¢nd1lurtCoMe l82 818 929,708 182.818 762.630 121.802 199.159 (167.078) Transfer betweett 21&22 161.416 (161.416) Net MOve¢t in Fun(is (5.662) 768,292 762.630 199,159 Reconciliation of Funds: Total Futtds Brought Forvrnrd 21&22 65,414 6.870,625 6,936,039 6,736,880 TOTAL FUNDS CARRIED FORWARD 21&22 59.752 7 638.917 7 698,669 6 936,039 The statement of financial a¢tiviti¢s include5 all gains and losses in the year. All tll¢onLing resources expanded derive from continuing a¢tivities. The notes fomi part of these financial statements. Page 21
HARMOIY12019 (REGISTERED COMPANY NUMBER: ROOQ316) (REGISTERED NORTHERN IRELAND CHAIUTY Nu1BER. 101731) BALAIYCE SIIEET 31 DECEMBER 2024 Notes 31.122024 31.12.2023 FIXED ASSETS Tangible assels 1420,674 1.854,504 2.484.991 1.754,504 Inveslments 4275.178 4.239.495 CURRENT ASSETS Sto¢k io 2,195 281570 1,583 323,655 2.574,446 658,984 Debtors li Investments 12 2,903.343 991,019 C&sh at bank and in hand 4.179,127 3.558,668 CREDfTOKS Amounts falling due wtthin one ye8r 13 41 206 408.982 ET CURREiYf ASSETS 3 766 921 3 149.686 TOTAL AETs CURRENT LIABIUTIES 8.042,099 7.389.181 CREDITORS Amount5 falling due after more than one year 14 453 142 NET ASSETS 20 7 698 669 6 936 039 Restrict¢d Funds 21 65,414 Unreilri¢t¢d Fulld• Revaluation ReSee 2.075,857 5.563.060 1.893,039 4.977,586 6,870,625 6.936,039 Gener Furld 7.638,917 7,698,669 The financial stat¢mcnts were authorised for issue by the Board of Directors on ....... . signed on its behalf by: . and were aSrA........................... Director- D Mcllhagger The noles forni part of these financial statements. Page 22
HARMON12019 STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 DECEIVIBER 2024 31.12.2024 31.12.2023 Cash generatedl (used) in operating activities- see Note 25 134,081 8,979 Cashflows from Invtltittg etivilies Purchase of tangible fLKed assets Purch&8e of current asset inveslmenls Proceeds from sale of cuttent assrt itlvestments Investment incom¢ Bank deposit interest Pro¢¢eds from diswsal of tsngible fixed ets Cash receipts frotn rentsls of investtDcnt properties Cash (usedyprovided by investing activities (44.435) (1.545 J32) 1.299.253 72.784 2,799 500 76.570 (137061) (4.318) (546.838) 274,162 72.151 ioi 75,060 (129,682) Cashflows from finantillz Attfvltks Rcpayment of bank loan Baj property fmance loan interest Legacies and Subscriptions Net cash generatedl{llsed) in fln#tttitig attivities (106.715) (14,852) 457.382 335015 {103,917) (17,629) 1,856 (119,690) Increase in cash & &gslA equlvleDts IA the year Cash & cash cquivalcnts at the beginning of the year Cash & cash ¢quivalellts at the end of the yeAr 332,035 658,984 991,019 (240,393) 899J77 658984 Analysis of cash & cash equivalents Cgsh at bank and in iwid Totxl easb & cash equivalents 991,019 991,019 658,984 658984 Page 23
HARMONI 2019 NOTES TO THE FINAIYCIAL STATEMEN15 FOR THE YEAR ENDED 31 DECEMBER 2024 I. ACCOUNTING POLICIES Basis of preparing the financial statements The fmancial statements of this public benefit entity have been prepared in ao¢ordan¢e with Acwunting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable ID the UK and the Republic of Ireland (FRS 102) (effective l January 2015)- (Charites SORP (FRS 102). the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102) and the Companies Act 2006. Fund Accounting Unrestrict¢d filnds are available for use at the discTetion of the directors in rthernCe of the general objectives of the charity. Unrestricted funds include revaluation reserves representing the restaternent of investm¢ot ass¢ts (both fixed and current) at market VU¢S. Whilst there are none to date. Designaled fimds are unrestricted funds earniarked by the director5 for particular purposes. Restrieted thnds receivable fTOm the Northern treland Housing Executive for their Supporting People Programm¢ operating ÉD both Stricklands Bay and th¢ M¢n'5 Hostel are subject lo restrictions on their expenditure, imposed by the donor. Income All incoming resources are included in the stat¢m¢nt of financial aGtivities when the charity is entitled to the income and the amount can be quantified with reasonable a¢¢urncy. The following specific policies are applied to particular categories of inc4)nLe.' Voluntary income is received by way of donation4 legacies and gifts and is included in fvll in the Statement of Financial Activities when receivable. Legacies are accoutttsd for following entitlement. Grant5, where entitlement is not conditional on tbe delivery of a 5pwifiG perfonD8nce by the charity, are recognised when the clwity becomes unconditionally entitled to the granL Investment in¢ome is included when ttceivable. Incoming resources from grants, where related to perforniance and specifiG deliverables, e accounted for as the charity earns the right to consideration by its perforn)&nce- split between Restricted and Unrestricted funds. Expenditure Exp¢uditure is recognised on an accruals basis as a liability is incurred. Expendiiure includes any VAT which cannot be fully recovered, and is reported &$ part of the expenditure to which it relates: Raistng funds costs comprise the costs associated with the charity's investmcnt property, current Set investtn¢nts and the Gost of grant applications. Charitable expenditUTe comprises those costs incurred by the charity in the delivery of its activitie5 and services for its beneficiaries. It includes both costs that be allocated directly to such activities and those costs of an indirect nature necessary to support them- split between Restricted and Unrestricted funds. GoVernCe costs include those &sso¢iated w£th meeting the constitutional and stathtory requirements of the charÈty and include th¢ audit fces and costs linked to the strategic management of the charity. All costs are allocated between the expendilure categori¢s of the SOFA on a basis designed to reflect the use of the resource. Costs relating 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 FLYANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 I. ACCOUNTING POLICIES (continued) Tangible fixed assets {exeluding InvestmeDt property) Depreciation is PTovided at the following annual rate5 ID order to write off each asset over its estimated useful life.. Freehold propety ImprovellL¢uts to property Short leasehold - 2Yo on cost 1511/0 on cost - IO%on cost Long leasehold Fixtures and fittings Motor vehicles - 2% on cost IO% on cost - 250/0 reducing balance - 33% on cost Con]puter equipment The cost of &gsets comprises purchase price and any installation charges. Pensions Retirement benefits to certain current employees are provided by a definejj ¢iJntribution p¢nsion scheme, under "Auto-Enrotmenf, whereby the assets are held separatety from thos¢ of th¢ charity in independently administered funds. The charity contributions are accounted for by charging ¢osts against surpluses as payments accrne. In addition, unfunded payments are made to GertaiD forn]er employees who were members of the old def¢d benefit scheme, which is now Closed. These are charged as payments are made. The capitsl cost of continuing these payments. wbich has not been computed. is not ttflected as a liabliity in the accounts. The accounting for unfunded pension payments is considered to be an immaterial departure from Financial Reporting Standard l 02. Operating Leases Harnioni classifies the lease of office equipment as operating leases. The title to the equiprnent remains with the lessor and the equipment is repla¢ed periodi¢ally. Renthi charges ate charged to the SOFA on a straigbt-lin¢ basis over th¢ terjn of the lease. Investment Properties Investment properties are initially measured at cost. including transaction costs. Subsequently those investment properties whose fair value ran b¢ m¢a5UT¢d reliably are measured at fair value. Gains and losses arising from changes in the fair value of investment properties are Tecognised in the revaluation reserve througb gainsnosses on revaluation of investments in the Statement of Financial A¢tivitie5. Stock Stock held relates to food stock held thr the kitchen in Men's Hostel. Stock is valued at the lower of c05t and net realisable value. Page 25
HARMONK 2019 IYOTES TO THE FINANCIAL STATEMEL¥TS (continued) FOR THE YEAR ENDED 31 DECEIVIBER 2024 I. ACCOUNTING POLICIES (continued) Debtors Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments ar¢ valued at the amount prepaid net of any trade discounts due. Creditors Creditor5 and provÉsions are regnISed where the charity h&$ a present obligation Tesulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle tbe obligatloll can be measured or ¢$timat¢d reliably, Creditor5 are nornially recognised at their settlement amount after allowlng for any trade discounts due. Financial Instruments Harnioni only has financial ass¢ts and financial liabilities of a kind that qualify as basic fmancial instruments. Basi¢ financial instnllnents are initially reCognid at transaction value and subsequently measured at their settlement value. Current asset IDvestments Current &sset investments are recogniscd initially at fair value. which is nornially the transaction price. Subsequently they are measured at fair value. with changes recognised in the revaluation reserve through gainsllosses on revaluation of investments in the Statement of Financial Activities if the investments are publicly traded or their fair value can otherwise be me&8ur¢d reliably. Other investments are measured at fair value at the date of acquisition less impairmenL Judg¢m¢nts key sources of ¢stimatioD uncertainty The following judgments including those involving estimates have been made in the process of applying the above accounting policies that have had the most significant effect on the amounts recognised in the finan¢ial statements and that hav¢ a 5igDifJGant risk of Gausing a material adjustment to the ¢arrying amounts of assets and liabilities within the next financial year- (i) Depreciation method and $¢t us¢ful lives (li) Valuation of properties (iii} tmpainnent of assets The estimates and assumptions are reviewed on an ongoing basis considering the current and futhre n]aA(et conditions. Page 26
HARMONI 2019 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 2. t¥COME 31.12.2024 31.12.2023 Unrestricted Funds: Donations and Legaeies Legacies and donatiotL8 Subs¢riptions- Boys Brigade Gift Aid 460.199 800 3,891 200 Total voluntary income 460,999 4.091 Invutm¢nt Incolne Investment pyoperty rents receivable Bank deposit iTht¢re8t reGeivable Current asset investment income 76,570 2.799 72.784 75,059 ioi 72,151 Total Investment Jncomc 152,153 147,311 Income from A¢tivities to further the Cha ob ectives: Utility Street Men's Hostel Strlddands Other Tot21 31.1224 Total 31.12.23 Unrestrleted Funds Residential receipts Payments frotn Health Trusts Payments from NIHE re housing Private Support Income SP Covid-19 Funding 129,309 56.579 1.612,218 246,094 185.888 1,612,218 916.349 175,724 1,532,686 886.342 670,255 11,731 1,926,622 1,699 1.699 13.430 2,727,885 18.612 2,613,364 799,564 Restricted Funds Paymenls from NtHE re Supporting People 474.054 Private Support Inwme Ulster Garden Villages Grant Do[allt Accounts NI Fund National Lottery- Covid-19 SP Covid-19 Funding National Lottery Community Fund Other Restricted Grants 322,116 55,912 796,170 55.912 860,209 46.268 16,276 16.276 32,551 540 540 3.768 5,816 948.612 474,594 378.028 16,276 868,898 TOTAL INCOME 4.209.935 3,713,378 Page 27
HARMONI 2019 IYOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 3. EXPENDrruRE (incl. VAT where relevant) Utility Street Men's Hostel StricklaDds Bay Other Total 31.12.24 Total 31.12.23 Unrestricted Funds Costs directly alloc&ted to activities: Staff ¢osts Depre¢iation Other Loan interest Support Costs allocattd by time to activities: Administration (incl. tC0s¢S) 324,828 2,346 369.858 l.134.225 95.607 221.748 13367 I,459.053 98,645 599,152 13.367 1.477,270 99,556 514,946 15.866 692 7.546 74,028 771,060 258.51 E 1,723.458 332,539 2,502.756 323.614 2,431,252 8,238 External audit and accountancy- currenl year External audit and accountan¢y- prior year Internal audit Legal and professional 6,600 6,000 600 3,000 31,717 41,917 2,473,169 3.240 7.243 17,083 2,519.839 Total Unrestricted Exp¢llditur¢ On charitable aclivilie5 Investment Management Costs: Re investment property Re current asset investments 59,634 10,354 69.988 38,590 13,639 52,229 Grant fundraising costs". 4,320 4.320 Restrict Costs directly auoeated to getivltl£8: Men's Hostel Strieklands Bay Other Total 31.12.24 Total 31.12.23 Staff costs Depreciation Other Loan interest Support Costs allo¢gted by tim¢ to adivities: Administration (incl. S1costs} 365.120 4.685 65269 396.894 405 48.576 1,485 13,534 775,548 5.090 16,372 1.485 808,107 6229 156,413 1.763 2,527 66.978 502.052 70.503 517,863 137,481 1,035,976 133.791 1,106,303 16,061 TOTAL EXPENDITURE 3.630.123 3,636,021 Page 28
HARMON12019 NOTES TO THE FINAIYCLiL STATEMl¥Ts (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 4. STAFF COSTS 31.12.2024 31.12.2023 Wages and salaries Social security costs Other pensions costs 2,356,292 190,049 62.602 2.608,943 2,409,586 172.298 58,844 2.640.728 The average monthly number of employees during the year was &$ follows: 31.12.2024 31.12.2023 Administrative staff Other staff 79 87 84 92 Included above is £278.670 (2023: £41 lJ39}. whith w&8 paid during th¢ year in respect of agency staff. During 2024, there was one employee with emoluments at the rate between £IOO,001 and £110,000 (2023: one between £90.001 and £lOO.000). Remuneration of the 2 (2023.2) key matMgement personnel in the period was £168,272 {2023: £160,553). 5. INCOME & EXPENDuRE tncome and exp¢ndTture (including VAT, where relevant) arc stated after charging (crediting): 31.122024 31.12.2023 Depreciation - owned assets Loss on disposal of fixed assets Operating Icase costs External Aud & Aws ¢urrent year External Aud & Accs prior year Internal Audit Bank loan interest payable Incorne from list¢d inv¢stments Directors, renuneration 107,987 266 3,659 6.600 109,187 4,393 6,600 600 3.000 17,629 72,151 3240 14,852 72,784 & TAXATION Anatysls of the tax charge Being registered with both HMRC and the Charity Commission for NOrtIn Ireland as a charity, no liability to iJK corpordtion tax arose on ordinary &tivities for the year ended 31 Decanber 2024, nor for the year ended 31 December 2023. Page 29
HARMON12019 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR TILE YEAR ENDED 31 DECEMBER 2024 TANGIB FIXED ASSETS Freehold Property Short Le%isehold Long Leasehold COST At January 2024 Additions Disposals 2,883,318 9,080 1,822250 At 31 December 2024 2,883,318 9,080 1.822.250 DEPIiECIATION At l January 2024 Charge for year Elilninated on dÉsposal 1.030.856 57.544 9,080 1,224,238 36,180 1,088,4IKI 9,080 1,260.418 At 31 December 2024 IYET BOOK VALUE At 31 Decemb¢r 2024 1.794.918 561832 At 31 December 2023 1852 462 598,012 TANGIBLE FIXED ASSETS (wntinued) Fixtsres & Fittings Motor V¢hicks Computer Equipm¢nt TotVd15 COST At January 2024 Addition5 Disposals 241.613 17.598 9,775 24,540 2.800 25,203 2,297 2.231 4,991,239 44,435 14.261 At 31 December 2024 249 981 31.515 25.269 5.021,413 DEPRECIATION At l January 2024 Charge for year Eliminated on disposal 212.729 8.861 8,040 2.125 21,305 3,277 2.231 2,506,248 107,987 13.496 At 31 December 2024 212638 22,351 2,600,739 NET BOOK VALUE At 31 December 2024 23.663 2,420,674 At 31 December 2023 1.735 2 484.991 Page 30
HARMONI 2019 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR EllED 31 DECEMBER 2024 FIXED ASSET INVESTMENT PROPERTIFS Harmoni has two fixed asset property investments and a small ground rentaI portfolio. The investment propertie5 at Donegall Pa were revalued at faiT open tnarket value as of 4 Mar¢h 2025 by Frnzer Kidd & Partners, Property Consultants. The directors consider this to be a fair estimate of value as of 31 December 2024. The investmellt properties at Denyvolgie Mews were r¢valu¢d at fair open market value as of 4 March 2025 by Frazer Kidd & Partners. Pmperty Consultants. The directors ¢onsid¢r this to be a fair estimate of value as of 31 December 2024. The directors are of the view that no 5ignifiGant change to fair open market value hL8 arisen with the ground rents in 2024 (or 2023). The movement is summarised as follows: _ 8 Apartments (DeTryvolgie Mews) Oround Rents 2024 Totsl 2023 Totsl Investment Property Value at start ofthe year 1.550.000 200.OIXI 4504 1,754,504 1,699,504 In¢reas¢ ill value during the year 85.000 loo,000 55.000 Valu¢ at the end of the year 1.635 ¢]00 215,000 4.504 1,854,504 .754.504 As part of its title to Denyvolgie Mews Harmoni hol¢is the only issued voting B, slwe in an apartment manag¢]n¢nt ¢ompany, Derryvolgie Mews Managetnent Company Limited, incorporated in Northerll lTrtland to act as a property management company for Harnioni's inveslment property "Deryvolgie M¢w5" 4 non-votlll8 'A' sbares in the company have been Assued to the owners of the other 4 aparim¢nts which were previously sold by Harnioni. FINANCtAL ll¥STRUMENTS The fair valued carrying amounts of the charity's financial instruments. being debtors, current asset inv¢stfflent5, creditors and bank loans. are given in notes I I, 1113, 14 and 15. The only income from the charAty'5 fmanciai instrLunents is ihe bank deposit interest receivable and current asset investment income. as disclosed under investment income in note 2. The only expense a350ciatsd with the charity's fanCIal instruments is the Stricklands Bay property bank loan interes¢ as disclosed in note 3. 10. STOCK 31.112024 31.12.2023 Kitchen sto¢k at Men's Hostel 2,195 1,583 Page 31
HARMON12019 NOTES TO THE Fll¥4ANCIAL STATEMEiYfs (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 11. DEBTORS: Amouiyfs FALLING DUE WITHIN ONE YEAR 31.112024 31.12a023 Trade Debtors Prepayments and accrned income 255.397 27.173 282.570 300,087 23,568 323,655 12. CURRENT ASSET FNANcL INVESTMENTS 31.12.2024 31.12.2023 At start of year Additions Disposal$ Surplusl{deficit} on disposals- teali5¢d Unrealised (deficitysurplus At ¢nd of year fair market valuation 2,574,446 1,545.332 (1,299.253} 25,158 57.660 2.903,343 2,234,968 546,838 (274,162) 6,955 59,847 2,574,446 Current assets investments comprise: Listed investments Other investments 2,768.633 134,710 2,903.343 2,444,175 130,271 2,574,446 Histori¢al ¢0st of current asset investments 2.799210 2,527,974 The fair value of listed investments is detern11n by reference to th¢ir matket value as at the balance she¢t date as provided by the Investment Managers Evelyn Partners. The fair value of the oth¢T Investments is measured at a fair value on acquisition less impairnient. The investment management fees in respect of the fmancial investments for 2024 were £10,354 (2023.. £13.639). 13. CREDITORS: Amouwfs FALLING DUE wfrHIN ONE YEAR 31.12.2024 31.12.2023 Bank loans (see note 15) Trade creditors Social security and other tsxes Accrned expenses 109,712 103,010 39,940 159,544 412,206 106,715 95,207 38,034 169,026 408,982 Page 32
HARMONI 2019 NOTES TO THE FENANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 CREDITORS: AMOUN15 FALLING DUE AFTER MORE THAN ONE YEAR 31.12.2024 31.12.2023 Bank Loans (see note 15) 343 430 453,142 The bank loans are secured by a legal mortgage over Hamn1'S investhlent PlDpety known &8 "Derryvolgie Mews" IS. LOANS An analysis of the maturity of loans is given below- 31.12.2024 31.12.2023 Amowjts falling due within one year or on demand: Bank loans I09.712 106 715 109.712 106 715 Amountg falling due between one and two years: Bank loans: 1-2 years 112827 109 712 Amounts falling due between two and five years: Bank loans: 2-5 years 230 603 301666 Amount5 falling due in more than five y¢aT5: Bank loans repayable in more than 5 years by iDStalm¢nts 41,764 Interest is payable on the original bank loan at 2.150/0 for 10 years. Inlerest is payable on a second bank loan at 40/0 for 10 years. 16. SECURED DEBTS The following secured debts are includd within creditors: 31.112024 31.12.2023 Bank Loans 453.142 559.857 453 142 559,857 Th¢ bank borrowings are secured by a legal mortgage over Harn)oni's investment property known as'T)erryvolgie Mews" and the developm¢ttt at Getgood House. Page 33
HARMONI 2019 NOTES TO THE FtNANCtAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DEcEIBER 2024 17. PENSION COMMITMENrs Th¢ cotnpany used to operate a defined benefit pension scheme wbicb h&$ now been wound up. The pension obligations under the old scbeme are met by purchased annuities. In addition, unfunded payments are made to certain ftirmer employees. The company now operates a defmed contribution scheme for cerLqin current employees. The total pension costs for the year were £61,044 (2023.. £58,844), cotnpri5ing pension scheme costs of £59.486 (2023: £58.302) and unfunded pension payments of £1 558 (2023: £542). 18. TRANSACTIONS WITH DIRECTORS No director emoluments were paid during the year (2023 - £Nil) There were no transactions during the year in which any director or related party had an tnterest requiring disclosure. 19. LEGAL STATUS OF HARMONI HARMONI 2019 is a company limited by guaratrtee, not having a share capital. Harnioni has t&¥-exempt status with IIMRC as a cbarity and has aIso been regisiered &s a ¢hariry by the Charity Commission for Northern treland. Page 34
HARMONI 2019 NOTES TO THE FINANCIAL SrATETS {continued) FOR THE YEAR ENDED 31 DECEMBER 2024 20. ANALYSIS OF NET ASSETS BETWEEN FUNDS Tangible Fixed Fixed Ass¢t Investments Net Current Assets Loog Terni Liabilities Totsl 2024 Total 2023 Unrestricted Futtds: General 2,391.811 1,854.504 3.736.032 343.430 7.638 917 6 870 625 Restricted Funds: NIHE Supporting People - M¢n's Host¢l & Stricklands Care Ville Stricklands Bay- B&ngor B¢n¢voL¢nt Society 2,981 2,981 3,728 Men's Hostel- NIHE Refurb. Grant 2015 1.189 23.218 24,407 26,956 National Lottery Community Fund 3.39l (37) 3,354 3,768 Men's Hostel- Awanls for All Grant 583 390 973 1,097 Men's Hostel- NIHE Rerb. GTant 2018 2258 (965) 1,293 1,923 Ulster CTaTd¢n Villages 17,875 17,875 18,280 Siricklands Bay- Awards for All Oiatii 5,594 5.594 5.595 Dornlant Accounts Fund Nl 30 30 (185) R.U.T.H 735 735 1.323 Belfast City Council- Equipment 2,832 (340) 2,492 2,911 Ardb&nnon Trust 18 18 18 At the end of year 2 420 674 1854 504 3.766.921 343.430 7,698.669 6,936.039 Page 35
HARMON12019 NOTES TO THE FINANCIAL STATEMEwfs (coniinued) FOR THE YEAR ENDED 31 DECEMBER 2024 21. MOVEMEIYTS IN RESTRICTED FUNDS At31° December Net Movements in Fund$ Transfer from Unrestricted Funds At31st Deeemb¢r 2013 2024 NIHE Supponing Peopl¢- Men's Hostel & Stricklands Care Villagc (161,416) l61,416 StricklaJ)ds Bay- Batwr Benevolent Socicty 3.728 (747) 2,981 Men's Hostel- NIHE Refitrb. Grant 2015 26,956 (2,549) 24,407 Donnant Accounts Nl Fund (185) 215 30 Men's Hoslel- Awallls for All Grant 973 1.097 (124) M¢n's Hostel- NIHE Refi]rb Grant 2018 1.923 (630) 1,293 National tAJttery Community Fund Ulster Garden Villages Stricklands Bay- Awards for All Grant 3.768 (414) 3,354 18.280 5,594 (405) 17.875 5,594 R.U.T.H 1,323 2.912 (588) {420) 735 B.C.C- Equiprnent Ardbannon Trust 2,492 18 18 At the end of year 65.414 (167.078) 161,416 59.752 22. MOVEMENTS IN UNRESTIUCTED FUNDS Getsernl Fund R¢valuation Resery TotAI UDrestrieted Funds 2024 Total Unrestrict¢d Funds 2023 At I. January 2024 4,977.586 ,893.039 6,870.625 6,575,121 Net Income on Operational Activities 746,890 746.890 235,048 Transfer to restricted funds (161.416) (161,416) {61,346) Investment revaluation (LossesyGains 182.818 182,818 121,802 Al 3 Ilt December 2024 5,563.060 2,075,857 7.638.917 6,870,625 Page 36
HARMON12019 NOTES TO THE FINANCIAL STATEMEhTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 23. ANALYSIS OF REVALUATION RESERVES Fixed Asset Investments Currext Asset Investments Total Investments Totsl At 1° lanuary 2024 Net gainl{loss) At 31° December 2024 1.231.218 661.821 82.818 1,893,039 1,893,039 182,818 loo.000 182,818 2.075,857 1.331218 744.639 1,975,857 24. OPERATtNG LEASE COMMITMEiYrs 2024 2023 Total future minimum lease payments utjder non-cancellabk operating leases for office equipment are as follows: Not later than one year Later than one year and not later than five years Greater than five years 2,501 1.220 3,721 25. RECONCILIATION OF MOvE1VT IN FUNDS TO NET CASHFLOW FROM OPERATllYG ACTIVITIES 2024 2023 Net movemeDt ID thnds- Net inwme from operational abtiviIA¢s. <lb p¢1 Statement of Financial Aaiviiies 579012 77J57 Add back.. Depreciation ¢harge Loss/{Profit) on sal¢ of tangible fixed assets Bank property finance loan interest payable 107,987 266 14.852 109,187 185 17,629 Deduct: Investtnent income shown in investing activitie5 Legacies and subscriptions show'n in financing Cash receipts from rentals fium investment pn)perties Bank deposit interest (72.784) (457.382) (76,570) (2,799) (72.151) (1.856) (75,060} (ioi) (Increase) in stock (612) (162) (Increase) in debtors 41,085 (98.539) Increase in creditors, ¢xGluding bank borrowings 226 52,490 Net cash generated in operating activities, as per Statetnent of C&shflows 134,081 79 Page 37