Charity registration number NIC102266 Company registration number N1025633 (Northern Ireland) NORTH CITY BUSINESS CENTRE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
NORTH CITY BUSINESS CENTRE LEGAL AND ADMINISTRATIVE INFORMATION Trustees D Williamson D Deazley P Carlin B Robinson l M¢Avoy D Morrow H Coghlan (Appointed 19 December 2022) Secretary D Deazley Charity number NIC102266 Company number N1025633 Register8d offjce 2 Duncairn Gardens Belfast BT15 2GG Auditor Miscampbell & Co 6 Annadale Avenue Belfast BT7 3JH
NORTH CITY BUSINESS CENTRE CONTENTS Page Trustees, report Independent auditor's report 9-11 Statement of financial activities 12 Balance sheet 13 Statement of cash flows 14 Notes to the financial statements 15-25
NORTH CITY BUSINESS CENTRE TRUSTEES. REPORT {INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2023 The Trustees present their annual report and financial statements for the year ended 31 March 2023. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities= Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). Objectives and activities a. Objects The objects of the company shall be the promotion for the public benefit of urban regeneration in North Belfast (the "area of benefit"), being an area of social and economic deprivation, by all or any of the following means.. The relief of poverty in such ways as may be thought fit., The relief of unemployment in such ways as may be thought fit, including assistance to find employment., The advancement of education, training or retraining, particularly among unemployed people. and providing unemployed people with work experience- The provision of financial assistance, technical assistance or business advice or consultancy in order to provide training and employment opportunities for unemployed people in cases of financial or other charitable need through help; (i) in setting up their own business, or (ii) to existing businesses., The creation of training and employment opportunities by the provision of workspace, buildings andlor land for use on favourable terms. b. Vision, mission, values, aims, objectives and strategies North City Business Centre's vision is to play a key role in developing a North Belfast- Which is vibrant and thriving with a sustainable mix of businesses., Where there are good employment opportunities, little unemployment, well skilled residents and a nfIdent attitude for the future.. With an attractive physical environment where people want to live and work., Where there is respect for other traditions and is free of sectarian interfaces. The mission for North City Business Centre is to play the key if not the lead role in meeting North Belfast's needs by working individually and in partnership with olhers to address enterprise creation and development. skills for employment and as a catalyst for economic regeneration. NCBC'S values are.. Service - Our services will be accessible and confidential to all who require them., Diversity - We embrace and celebrate diversity and encourage others to do so.. Respect - We treat people with respect and dignity and demonstrate our commitment to the highest professional standard5-, Teamwork We foster teamwork, fun, enthusiasm and a passion for enterprise development. We collaborate innovatively for the benefit of our North Belfast clients and stakeholders; Courage We take appropriate risks, embrace creativity and innovation, strive for excellence and aim to achieve more. Leadership - We support and empower staff, clients, customers and stakeholders to be entrepreneurial, to take the initiative and make decisions that are beneficial for the ¢ommunity and the economic development of North Belfast. The aim of NCBC is the relief of poverty in North Belfast through the creation of self-employment opportunities and to support small business to grow and create employment.
NORTH CITY BUSINESS CENTRE TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 NCBC key objectives are to: Develop new workspace and attract business to locate in North Belfast. Support Business., Grow onsiteloffsite businesses., Encourage inward investment to North Belfast for employment. The strategies adopted by NCBC are incorporated in a new three year strategic plan 2020 - 2023. This plan is reviewed regularly by the Trustees and focuses on ensuring NCBC achieves the stated objectives and meets the public benefit requirements. c. Principal activity and business review The Charity is the Local Enterprise Agency for North Belfast, with approximately 45,000 sq. ft. of accommodation available for new and established SMES and not-for-profit organisations in North Belfast. Any business or organisation located in the Business Centre benefits from easy inleasy out licence agreements and a range of ¢entralised business support services and guidance. In addition to propety management the Charity provides enterprise awareness programmes. business start-up training, business advice and guidance and employment support for anyone from North Belfast considering setting up a business, developing their business or exploring self- employment as an employment option. With sound financial and services management, the Charity ensures that the Business Centre is maintained to a high standard. In spite of difficult market conditions in the last few years and in particular the impact of COVID-19 and the cost of living crisis, NCBC'S propety rental income and occupancy rates have continued to perform well under the circumstances. The pandemic however has continued to have a significant impact on income received from the hire of COnfenCe, training and meeting room facilities in 2022123. Principal funding for the Charity is derived from rental income from the business units and additional income is received through procurement of seNice delivery contracts, mainly in partnership with Belfast City Council, Enterprise Nl, Belfast Local Enterprise Agencies and the Department for Communities {DfC). Achievements and performance Following the production of a revised Strategic Plan for the period 202012023 the company continued to deliver services within the context of its primary operations, as set out in the Plan, namely, property management and development and programme delivery for pre-start up and start-up businesses. a. Stratsgic Plan 2020-2023 The Trustees met in June 2022 to review the performance ofthe Strategic Plan The needs of NCBC'S businesses, clients and the wider North Belfast business community will continue to be central to our business and will influence the development and delivery of our services during this period. Although we recognise there will be many challenges ahead, we are confident that we have the skills and ¢apacity to meet these challenges. The Trustees reiterated the company's commitment to providing positive change by working closely with a range of private, publi¢ and voluntary and community organisations and add value through partnership working. We will develop our organisational capacity to underpin delivery and will measure our outputs and outcomes to demonstrate our efficiency and effectiveness in delivering improved outcomes for Customers and clients. Through this plan we will continue to contribute to strengthening both the physi¢al and technical infrastructure for the business community in North Belfast as well as contributing to community cohesion and renewal in the area as a result of our regeneration activities. To achieve our vision NCBC reviewed its high level strategic aims supported by key strategic objectives. These set our direction and provide focus for our work throughout the period of the Plan. An annual operational plan describes the activities that will be undertaken to achieve these objectives and the key performance indicators which will be used to measure success against our objectives. These revised strategi¢ aims are as follows..
NORTH CITY BUSINESS CENTRE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Strategi¢ Aim 1 Development of New Workspace and Attract Business to Locate in North Belfast Develop and Deliver Phase 4 Capital Build Workspace and Potential Adam Street Development Site and be a Magnet for Businesses Locating to North Belfast., Strategic Aim 2 - Supporting Business - Support and Develop Enterprise and Entrepreneurship at the Pre- Start. Start-up and Growth Stages., Strategic Aim 3 - Growing On-SitelOff-Site Businesses - Support, Develop and Grow Businesses in North Belfast., Strategic Aim 4 - Encouraging Inward Investment for Employment - Be a Catalyst for the Promotion of Business Investment in North Belfast. b. Property NCBC renewed its efforts to develop 32,000 square feet of new business space on its existing site following the granting of planning permission five years ago. This 'Phase 4, development will facilitate both greater numbers of small business start-ups, social enterprises and support ongoing training and enterprise advice work which will increase business enterprise capacity in North Belfast, provide economic development and physical regeneration for communily benefit and enhance the future sustainability of the organisation. Towards the end of 2022 NCBC submitted a renewal of its planning application to Belfast City Council to take this project forward. Durrng the past year NCBC achieved a 980kn average oGGupanGy rate which increased from a 950A occupancy rate in the previous financial year. In 2022 following a site property survey undertaken by Aviva, NCBC'S insurers, a risk improvement report was produced and the recommendations contsined in the report were implemented by the company. . Programmes NCBC continued to maintain and expand its enterprise programme delivery during the past financial year. This was achieved by maintaining a range of partnerships and continuing to build a team of associate business advisers to increase the range of programme delivery activity offered by the Charity. These activities, most of which have been delivered virtually since the pandemic, included the delivery of the Northern Ireland 'Go For It, business stsrt-up programme. facilitating access to Start-up Loans. and the delivery ofthe Belfast City Council Kick Start Programme. NCBC also continued to manage and deliver the Belfast City Council Pathway to Enterprise Programme (PEP) and the final third iteration of the programme was concluded at the end of February 2023. NCBC was first commissioned by Belfast City Council in association with the Department for Communities to deliver the PEPS which were focused on supporting the economically inactivellong term unemployed who may face particular barriers in becoming self- employedlstarting a business and were unable to access mainstream enterprise support programmes without additional support. During the 2022123 financial year over 25 clients were supported by this programme which also provided access to incentives for participating businesses.to assist them with the start of their enterprise journey. As a member of the Local Enterprise Agencies neOrk NCBC continued to deliver the Northem Ireland 'Go For It, business start-up programme which delivers the programme on a Nl wide basis with Enterprise Nl as the lead contractor for this service. NCBC was also one of the Local Enterprise Agencies in Belfast which delivered the Belfast City Council Kick Start Programme, which provides intensive mentoring support to businesses which have Gompleted the 'Go For It, Programme or who have been trading no less than six months and up to Iwo years. This service aimed to increase the survival rates of new start businesses in the City and also provided access to incentives for participating businesses. The programme concluded at the end of 2022.
NORTH CITY BUSINESS CENTRE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 d. Quality Developments ISO 9001 Audit A recertification quality management audit was undertaken by the NQA in March 2023, the results of which were very positive. e. Community Partnerships and Networks NCBC continues to proactively engage with the North Belfast community and is an active supporter of the Antrim Road Business Association. The Charity also hosts North Belfast Hour on Twitter which provides a forum for business and Gommunity neorkIng on a weekly basis in the area. The Charity has extended its activities across a range of social media plafforms and also engaged extensively and positively with local community and political stakeholders as well as with Belfast City Council and Government Departments and continues to strengthen its strategic focus through membership of enterprise and third sector umbrella organisations. At the end of 20221early 2023, NCBC commenced engagement with the North Belfast Area Learning Community (NBALC) to explore how the company might contribute to entrepreneurship edu¢ation in local schools and in a community education context in North Belfast. NBALC is made up of 11 post primary schools, and also includes Belfast Metropolitan College. Whilst the community recognises the autonomy and ethos of the individual schools, the member schools and BMC work in partnership to implement a curriculum that will better meet the needs of pupils. Being a member of NBALC allows pupils to access a wider ¢hoice of academic, applied and vocational courses. Financial review Going Concern After making appropriate enquiries, the Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern Can be found in the accounting policies. b. Reserves Policy The Board of Trustees has in place a policy on cash reserves and aims to build these to £2 million to provide for working capital requirements, to nd unforeseen events such as emergency repairs to buildings and to build a fund to support potential future capital proje¢ts in the area in line with strategic growth plans. Under the memorandum and articles of association any monies requiring investing can be invested at the discretion of the Trustees. The Trustees also seek to ensure that the overall general reserves fund is maintained every year by at least generating a break-even position on our income and expenditure during that year, while maintaining capacity to deliver relevant local enterprise training and advice services. Transfers from the designated fund to the general reserve is approved by the Trustees in accordance with the purpose of the fund, which is to support programme activity c. Principal funding sources The principal funding source for NCBC is rental income. Expenditure in the year has been applied directly to supporting the key activities of NCBC, including maintaining a high standard of services and support programmes.
NORTH CITY BUSINESS CENTRE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 d. Investments NCBC has an investment property which Could be developed as an enterprise site in the future. This property produces a return which is much greater than the return that would have been received from bank deposits. The investment is deemed low risk and has a secure tenant with quarterly rental payments payable in advance. As well as generating regular and secure income, it is localed Close to the main site in North Belfast, therefore providing NCBC with a strategic site for any future developments. In line with the strategi¢ focus of the company to support potential ftjture capitsl projects inclLKJing the Phase 4 development, the Trustees have invested funds in a Brewin Dolphin income and capital growth fund. This investment performance is monitored and reviewed by the Trustees on a regular basis. The Trustees believe the Current value attributed to the investment property is not materially different from the last valuation, and find no need to seek an updated valuation. The need for revaluation is kept under regular review. e. Financial The Net Current Assets at 31st March 2023 were £310,274 with designated funds amounting to £1,922,263 reflecting an underlying unrestricted funds reserve of £2,645,736. As noted in the reserves policy above. the Board seeks to maintain ¢ontingency reserves to cover unforeseen expenditure and to support the development of new capital projects. The Board also considers that there should be sufficient cash to meet at least 6 months foreseen operating costs. The Board regularly reviews the amount of reserves Ihat are required to ensure that they are adequate to fulfil the Company's ¢ontinuing obligations. f. Risk policy The Trustees who served during the year have undertaken an analysis of the work of the charity, identified the major risks to which the charity is exposed and are satisfied that all appropriate policies, practices and procedures are in place to mitigate those rrsks. Plans for futu periods 2022123 witnessed the review and development of NCBC'S current strategic plan as the company navigates a way fOard following the significant changes in our operating environment and the impact of the COVID 19 pandemic and the ¢ost of living crisis. NCBC has continued to develop its capacity over the past few years to enhance the delivery of business start-up programmes with a particular focus on the delivery of the Pathway to Enterprise Programmes (PEPS) in the Belfast City Council area. It is anticipated that this level of activity will continue and the Charity will develop and undertake new programmes both independently and with central and local Government during the next financial year. In February 2023 following the issue of a Pre-Qualification Questionnaire, NCBC was appointed by Belfast City Council to its Dynamic Purchasing System {DPS) for Enterprise and Business Growth (EBG) for the following sub- categories, Slart a Business Activity, Underrepresented Groups and Place Based Interventions. In the coming years NCBC'S proposed 'Phase 4, development will also facilitate both greater number5 of small business start-ups and financially support ongoing training and enterprise advice and development work as well as enhanGing community capacity and regeneration in the area. The Trustees consider that the development of additional enterprise space can be transformational within an economic development context for North Belfast and can help NCBC maximise community benefit and ensure the provision of relevant advice and support mechanisms for businesses in North Belfast.
NORTH CITY BUSINESS CENTRE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 NCBC has been a catalyst for economic renewal in North Belfast and the Board and staff will continue to work with various stakeholders and influencers in the statutory, public and voluntarylcommunity sectors to identify opportunities to make a positive contribution to continuing economic renewal and regeneration in North Belfast. NCBC is in a strong financial posltion with regular income, generates surplus funds and has suffiaent cash reserves to continue operations for the foreseeable future. Structurep governance and management a. Constitution The company is constituted under a Memorandum and Articles ofAssociation dated 12th June 1991. The company registration number is N1025633, and is registered with the Charity Commission Nl, number NIC102266. North City Business Centre (NCBC} is the Local Enterprise Agency for North Belfast. The area covers the North Belfast parliamentary constituency which means that our support is provided in North Belfast and some parts of the Antrim and Newtownabbey Borough council area. We provide business start-up advice and guidance for people thinking about starting a business. We undertake outreach in ¢ommunity areas throughout North Belfast to a diverse range of community organisations such as Neighbourhood Renewal Partnerships, local community groups of all kinds to encourage individuals to Consider self-employment as an employment option and to encourage people to onsider any type of economic activity at an individual or Community level through a social enterprise. b. Directors and Trustees The Directors of the charitable company (the Charity) are its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees. The members of the Board during the year are listed on Page 1 together with the Chief Executive Officer and the names and addresses of organisations or persons providing banking or professional advice to the charity. In accordance with the Articles of Association one third of Trustees are required to retire each year. If the number is not a multiplier of 3, then the number nearest one-third shall retire. No Trustee had at any time during the year a material interest in any contract that was significant in relation to the Charity's business. Trustees are given the opportunity to declare a conftict of interest at each Board meeting should this situation arise. During the year, no conflicts were declared by the Trustees. The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial ststements were.. D Williamson D Deazley O Magill P Carlin B Robinson l McAvoy D Morrow R Manning H Coghlan (Resigned 16 September 2022) (Resigned 15 May 2023) (Appointed 19 December 2022)
NORTH CITY BUSINESS CENTRE TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 c. Method of appointment or election of trustees NCBC has an open recruitment policy for new Trustees and pla¢es an open advertisement, followed by an interview and selection process. Due to the nature of the business, Trustees are appointed on the basis of their expertise divided into eleven main categories.. strategi¢ planning, governance, property management, economi¢ development. community knowledge, financial expertise, human resource capability, legal, marketing, digital technology and fundraising expertise. The Board is reviewed annually to ensure that the appropriate mix of skills is mainlained and to identify if any further skills are required to ensure that the Charity can continue to focus on its core work as a local enterprise and business support agency. Sadly, one of our long standing Trustees, Mr Oliver Magill, died during the year and one new Trustee, Ms Hannah Coghlan, was appointed during this financial year. 11 is anticipated that additional Trustees will be appointed during 2023124 to fill skills gaps and diversify the Board's membership. d. Policies and Procedures adopted for the Induction and training of Trustees The Trustees have approved a formal policy for the induction and training of Trustees. Trustees a re familiar with the practical work of the Charity and are encouraged lo attend charitable membership awareness events, governance training and seminars. New Trustees are provided with a structured induction programme within one month of their appointment. Ongoing training and development is provided to Trustees as the need arises. Organisational structure and decision making NCBC is a registered charity and a company limited by guarantee and was established in June 1991. It is governed by a memorandum and articles of association and is structured to ensure that our Trustees are able to access appropriate management information as required. Our structure also ensures clear management responsibility and accountability. Trustees set the strategic direction of the charity and take responsibility for governance of all activities and operations and delegate authority to the Chief Executive Officer who is responsible for the executive leadership of the company. f. Related Parties The Charity is a member of Enterprise Nl, the Local Enterprise Agency neOrk for Nl, and collaborates with other Local Enterprise Agencies, in particular within the Belfast City Council area, to stimulate and support enterprise within the city of Belfast and across Nl. NCBC continues to work Closely with Belfast City Council to explore and address micro and small business development needs and is committed to contributing to the Belfast Agenda, the City's Community Plan. g. Risk management objectives and policies The Trustees have reviewed the major risks that NCBC is exposed to and have a risk management strategy, which ¢omprises- A risk management policy An annual review of risks to the Charity included in the risk register Systems and procedures to mitigate risks identified Implementation of procedures to ensure minimum impact on the Charity should any of the risks materialise
NORTH CITY BUSINESS CENTRE TRUSTEES. REPORT {INCLUDING DIRECTORS, REPORT) {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Statement of Trustees, responsibilities The Trustees, who are also the directors of North City Business Centre for the purpose of company law, are responsible for preparing the Trustees, Report and the financial statements in a¢¢ordan¢e with applicable law and United Kingdom A¢¢ounting Stsndards (United Kingdom Generally Accepted Accounting Practice). Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charrty and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statements, the Trustees are required to.. select suitable a¢¢ounting policies and then apply them consistently., observe the methods and principles in the Charities SORP., make judgements and estimates that are reasonable and prudent., and prepare the financial statements on the going Concern basis unless it is inappropriate to presume that the charity will continue in operation. The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statemen ts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor In accordance with the company's articles, a resolution proposing that Miscampbell & Co be reappointed as auditor of the company will be put at a General Meeting. The Trustee report was proved by the Board of Trustees. D William Trustee on 25 September 2023
NORTH CITY BUSINESS CENTRE INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF NORTH CITY BUSINESS CENTRE Opinion We have audited the financial statements of North City Business Centre (the '¢harity') for the year ended 31 March 2023 which comprise the statement of financial activities, the balan sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting standa applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements.. give a true and fair view of the state of the charitable company's affairs as at 31 March 2023 and of its incoming resources and application of resources, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting practi., and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) {ISAs (UKI) and applicable law. Qur responsibilities under those standards are further described in the Auditors responsibilities for the audit ol the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements. we have concluded that the Trustees, use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going Goncern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. Other inft>rmation The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing $0, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the Course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Matters on vthich wo are required to report by exception We have nothing to report in respect of the following matters in relation to which the Charities {Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion.. the information given in the financial statements is inconsistent in any material respect with the Trustees, report- or sufficient accounting records have not been kept., or the financial statements are not in agreement with the accounting records., or we have not received all the information and explanations we require for our audit.
NORTH CITY BUSINESS CENTRE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF NORTH CITY BUSINESS CENTRE Responsibilities of Trustees As explained more fully in the statement of Trustees, responsibilities, the Trustees, who are also the directors of the charity for the purpose ot company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charity's ability to continue as a going concern, dis¢losing, as applicable, matters related to going concern and using the going concem basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial ststements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in a¢¢ordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the Company and management. The extent to which our procedures are Capable of detecting irregularities, including fraud is detailed below.. obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulation in the United Kingdom-. understood how the Company is complying with those frameworks by making enquiries of management to understand how the Company maintains and communicates its policies and procedures in these areas- assessed the vulnerability of the Company's financial statements to material misstatement, including how fraud might occur by considering the risk of management override and by assuming revenue recognition to be a fraud risk. and based on this understanding our audit procedures were designed to identify non-compliance with such laws and regulations. A further description of our responsibilities is available on the Financial Reporting Council's website at.. https-11 www.frc.org.ukJauditorsresponsibilities. This description forms part of our auditorfs report. Use of our report This report is made solely to the company's members, as a body, in accordance with the Companies A¢t 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. 10-
NORTH CITY BUSINESS CENTRE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF NORTH CITY BUSINESS CENTRE Jonathan R Bethel (Senior Statutory Audltor} for and on behalf of Miscampbell & Co 25 September 2023 Chartered Accountsnts Statutory Auditor 6 Annadale Avenue Belfast BT7 3JH Miscampbell & Co is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a ¢ompany under section 1212 of the Companies Act 2006. 11
NORTH CITY BUSINESS CENTRE STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023 Unrestricted Unrestricted funds funds 2023 2022 Notes me and endowments from: Donations and legacies Charitable activities Investments Other income 5,421 651,102 119,495 5,800 7,600 662,594 112,154 Totsl income 781,818 782,348 enditure on: Charitable activities 610,057 533,194 Net gainsl(losses) on investments 11 {145,234} 53,025 Net movement in funds 26,527 302,179 Fund balances at 1 April 2022 4,541,472 4,239,293 Fund balances at 31 MarGh 2023 4,567,999 4,541,472 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the CompaniesAct 2006. 12-
NORTH CITY BUSINESS CENTRE BALANCE SHEET AS AT 31 MARCH 2023 2023 2022 Notes Fixed assets Tangible assets Investment propety Investments 12 13 14 1,452,443 922,066 1,883,216 1,520,885 922,066 1,911,837 4,257,725 4,354,788 Current assets Deblors Cash at bank and in hand 16 29,325 370,684 54,599 296,047 400,009 350,646 Creditors: amounts falling due within one year 17 (89,735) {163,962) Net current assets 310.274 186,684 Total assets less current liabilities 4,567,999 4,541.472 Income funds restricted funds Designated funds General unrestricted funds 18 1,922,263 2.645,736 1,950.884 2,590,588 4,567,999 4,541,472 4,567,999 4,541,472 The company is entitled to the exemption from the audit requirement contsined in section 477 of the Companies Act 2006, for the year ended 31 March 2023, although an audit has been carried out under section 144 of the Charities Act2011. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial sta nts were proved by the Trustees on 25 September 2023 D Williamson Trustee Company registratlon number N1025633 13-
NORTH CITY BUSINESS CENTRE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023 2023 2022 Notes Cash flows from operating activities Cash generated from operations 21 86,824 206,464 Investing activities Purchase of tangible fixed assets Proceeds from disposal of tangible fixed assets Purchase of investments Investment income received (18,043) (14,279) 2,974 {116,613) 119,495 (291,637) 112,154 Net cash used in investing activities (12,187) (193,762) Net cash used in financing activities Net increase in cash and cash equivalents 74,637 12.702 Cash and cash equivalents at beginning of year 296,047 283,345 Cash and cash equivalents at end of year 370,684 296.047 14-
NORTH CITY BUSINESS CENTRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Accounting policies Charity information North City Business Centre is a private company limited by guarantee incorporated in Northem Ireland. The registered office is 2 Duncairn Gardens, Belfast, BT15 2GG. 1.1 Accounting convention The financial statements have been prepared in accordance with the Companies Act 2006, FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland. ('FRS 102°) and the Charities SORP "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The ¢harity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical ¢ost Convention unless othemise stated in the relevant accounting policy. The principal a¢¢ounting policies adopted are set out below. 1.2 Going concern At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to ¢ontinue in operational existen for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements. 1.3 Charitsble funds Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity. 1.4 Income Income is re¢ognised when the charity is legally entitled to it after any performance Conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are re¢ognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income lax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legaGy 15 treated as a contingent asset. 15-
NORTH CITY BUSINESS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Accounting policies (Continued) 1.5 Expenditure Expenditure is recognised once there is a legal or Constructive obligation to transfer economic benefil to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of dIrt costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned beeen those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation Charges are allocated on the portion of the asset's use. 1.6 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases= Freehold land and buildings Improvement to premises Fixtures and fittings 20A straight line 1 OOA slraighl line 25 % straight line The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities. 1.7 Investment prop8rty Investment property, which is property held to earn rentals andlor for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss. 1.8 Fixed asset investments Fixed asset investments are initially measured at transaction price excluding Iransaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net incomel(expenditure) for the year. Transaction costs are expensed as incurred. 1.9 Impaim)ent of fixed assets At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 1.10 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of Ihree months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 16-
NORTH CITY BUSINESS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Accounting policies {Continued) 1.11 Financial instruments The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Basic financial liabilities Basic financial liabilities. including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the psent value of the future payments discounted at a market rate of interest. Financial liabilities Classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade Greditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Derecognition of financial liabilities Financial liabilities are derecognised when the Charity's contractual obligations expire or are discharged or cancelled. 1.12 Employee benefits The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. 1.13 R8tirem8nt beneflts Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. 17-
NORTH CITY BUSINESS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Critical accounting estimates and Judgements In the application of the ¢harity's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experien and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assLrmptions are reviewed on an ongoing basis. Revisions to accounling estimates are recognised in the period in which the estimate is revised where the revision affe¢ts only that period, or in the period of the revision and future periods where the revision affects both current and fvture periods. Donations and legacies Unrestricted Unrestricted funds funds 2023 2022 Government grants 5,421 7,600 Charitable activities Unrestricted Unrestricted funds funds 2023 2022 Centre income Programme income 526,028 125,074 515,397 147,197 651,102 662,594 Investments Unrestricted Unrestricted funds funds 2023 2022 Rental income Income from listed investments Interest receivable 86,500 31,920 1,075 86,500 25,616 38 119,495 112,154 18-
NORTH CITY BUSINESS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Other income Unr8Stricted funds Total 2023 2022 Other income 5,800 Charitable activities Centre Programme income income 2023 Total 2023 Centre Programme income income 2022 Total 2022 2023 2022 staff costs Depreciation and impairment Staff training Rates and water rates Insurance Heat and light Cleaning Repairs and maintenance Printing, postage and stationary Advertising Telephone Motor and travel Catering Bank charges Subscriptions Donations Professional fees Jolly Rodger management ¢osts Loss on disposal Programme expenditure Computer costs Adam street expense 205,785 205,785 193,143 193,143 83,511 1,055 6,474 11.140 27,899 11,696 83,511 1,055 6,474 11.140 27.899 11,696 82,510 82,510 3,803 11,283 3,267 7,603 3,803 11,283 3,267 7,603 53,639 53,639 49,724 49,724 524 2,458 13.197 217 2,108 500 524 2,458 13,197 217 2,108 500 7,018 500 5,366 769 1,566 12,028 769 1,566 12,028 1,451 540 1,451 540 2,228 7,018 2,228 500 5,366 5,356 5,356 13,727 2,974 13,727 2,974 83,633 7,944 25,607 23,219 23,219 83,633 116,179 116,179 5,080 7.944 25.607 5,080 476,321 90,651 566,972 401,342 118,407 519,749 Share of governance costs (see note 8) 43,085 43,085 13,445 13.445 519,406 90,651 610,057 414,787 118,407 533,194 19-
NORTH CITY BUSINESS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Support costs Support Governance Costs costs 2023 2022 Audit fees Legal and professional Investment management fee Insurance 3,700 24,078 15,307 3,700 24,078 15,307 2,650 4,410 5,348 1,037 43,085 43,085 13,445 Analysed between Charitable activities 43,085 43,085 13,445 Governance costs includes payments to the auditors of £3,700 (2022- £2,650) for audit fees. Trustees None of the Trustees (or any persons connected with them) received any remuneration or benefits frcm the charity during the year. 10 Employees The average monthly number of employees during the yearwas: 2023 Number 2022 Number Employment costs 2023 2022 Wages and salaries Social security costs Other pension costs 186,469 14,545 4,771 173,464 14,154 5,525 205,785 193,143 The number of employees whose annual remuneration was more than £60,000 is as follows.. 2023 Number 2022 Number £60,001 to £70,000 -20-
NORTH CITY BUSINESS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 11 Net gainsl(losses) on investments Unrestricted Unrestrict8d funds funds 2023 2022 Revaluation of investments (145,234) 53,025 12 Tangible fixed assets Freehold land Improvement Fixtures and and buildings to premises rittings Total Cost At 1 April 2022 Additions Disposals 2,649,978 427,520 10,992 124,078 7.051 3,201,576 18,043 (3,035) (3,035) At 31 March 2023 2,646,943 438,512 131,129 3,216,584 Depreciation and impairment At 1 April 2022 Depreciation charged in the year Eliminated in respect of disposals 1,234,400 52,939 (61) 327,364 26,476 118,927 4,096 1,680,691 83,511 {61) At 31 March 2023 1,287,278 353,840 123,023 1,764,141 Carrying amount At 31 March 2023 1,359,665 84,672 8,106 1,452,443 At 31 March 2022 1,415,578 100,156 5,151 1,520,885 13 Investment property 2023 Fair value At 1 April 2022 and 31 March 2023 922,066 The valuations were made by the Trustees, on an open market value for existing use basis. 21
NORTH CITY BUSINESS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 14 Fixed asset investments Listed investments Cost or valuation At 1 April 2022 Addition5 Valuation changes 1,911,837 116,613 (145,234) At 31 March 2023 1,883,216 Carrying amount At 31 March 2023 1,883,216 At 31 March 2022 1,911,837 The book cost of investments at 31st March 2023 was £1,810,759 UK investments £891,268 Overseas investments £919,491 The market value of investments at 31st March 2023 was £1,883,216 UK investments £893,051 Overseas investments £990,165 15 Financial instruments 2023 2022 Carrying amount of financial assets Instruments measured at fair value through profit or loss 370,684 296,047 Financial assets measured at fair value through profit or loss comprise cash at bank and in hand. 16 Debtors 2023 2022 Amounts falllng due within on8 year: Trade debtors Prepayments and accrued income 15,589 13,736 16,216 38,383 29,325 54,599 -22-
NORTH CITY BUSINESS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 17 Creditors: amounts falling due within one year 2023 2022 Other taxation and social securty Payments received on account Trade creditors other creditors Accruals and deferred income 24,326 21,973 15.303 26,949 78,071 21,666 1,287 46,030 18,092 89,735 163,962 Ulster Bank Limited have registered a fixed and floating charge on 0811111993 against North City Business Centre. 23-
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NORTH CITY BUSINESS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 19 Analysis of net assets between funds Unrestricted Unrestricted funds funds 2023 2022 Fund balances at 31 March 2023 are represented by: Tangible assets Investment properties Investments Current assetsl(liabilities) 1,452,443 922,066 1,883,216 310,274 1.520,885 922,066 1,911,837 186,684 4,567,999 4,541,472 20 Related party transactions There were no disclosable related party transactions during the year (2022 - none). 21 Cash generat8d from operations 2023 2022 Surplus for the year 26,527 302,179 Adjustments for- Investment income recognised in statement of financial activities Fair value gains and losses on investments Depreciation and impairment of tangible fixed assets (119,495) 145.234 83,511 (112,154) (53,025) 82,510 Movements in working capital: Decrease in debtors (Decrease) in ¢reditors 25,274 (74,227) 96.227 {109,273) Cash generated from operations 86,824 206,464 -25-