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 2024
NORTH CITY BUSINESS CENTRE LEGAL AND ADMINISTRATIVE INFORMATION Trustees D Williamson D Deazley P Carlin B Robinson l M¢Avoy D Morrow H Coghlan K Darcy-smith (Appointed 16 October 2023) Secretary D Deazley Charity number NIC102266 Company number N1025633 Registered office 2 Duncaim 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 ststement 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 2024 The Trustees present their annual report and financial statements for the year ended 31 March 2024. 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 . 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 charitsble need through help,. (i) in setting up their own business. or (li) to existing businesses., The creation of training and employment opportunities by the provision of workspace, buildings anOr land for use on favourable terms. b. Vlsion, 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 confident 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 others to address enterprise creation and development, skills for employment and as a catalyst for economic regeneration. NCBC'S values are: Service - Our servi¢es will be aGcessible and ¢onfidential 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 standards.. 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. embra 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 community and the economic development of North Belfast. The aim of NCBC is the relief of povety 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 2024 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 2023 - 2026. 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 organisalions in North Belfast. Any business or organisation located in the Business Centre benefits from easy inleasy out licence agreements and a range of centralised 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 selt- 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 the difficult operating environment over the past few years, NCBC'S property rental income and occupancy rates have continued to perform well under the circumstances. The impact of the COVID-19 pandemic however has continued to have a significant impact on income received from the hire of conference, training and meeting room facilities in 2023124. Principal funding for the Charity is derived from rental income from the business units and additional income is received through pro¢urement of service delivery contracts. mainly in partnership with Belfast City Council, Enterprise Nl, Belfast Local Enterprise Agencies and the Department for Communities {DfC). Achievements and perforniance Following the production of a revised Strategi¢ Plan for the period 2023 - 2026 the company continued to deliver services within the context of its primary operations, as set out in the Plan, namely, propety rnanagement and development and programme delivery for pre-start up and start-up businesses. a. Strategic Plan 2023-2026 Trustees met in June 2023 to review the performance of the last strategic Plan, 2020- 2023 and to prepare a new Strategic Plan for the three year period 2023 - 2026. 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 ¢apa¢ity to meet these challenges. The Trustees reiterated the company's Commitment to providing positive change by working closely with a range of private, public 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 outwmes 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 physical 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 fo¢us 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 indirAtors which will be used to measure success against our objectives. These revised strategic aims are as follows..
NORTH CITY BUSINESS CENTRE TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 strategic Aim 1- Development of New Workspace and Attract Businesses to Locate in 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 Businesse5 - 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 reviewed its 'Phase 4, capital development plan and given the impact of the COVltk19 pandemic and the cost of living crisis which had led to a substantial increase in construction costs, resolved to develop and expand commerciallbusiness workspace in the existing Business Centre through a revised smaller scale Phase 4 capital development project to assist the growth of new and existing businesses. This new 'Phase 4.2. development will also facilitate both greater numbers of small business start-ups, social enterprises and support ongoing Iraining and enterprise advice work which will increase business enterprise capacity in North Belfast. Phase 4.2 will also provide economic development opportunities and physical regeneration for Community benefit and enhance the future sustsinability of the Charity. NCBC also resolved to Continue to explore and develop commercial sites for demand-led light industrial and business workspace where there is market failure, exploring multi-use solutions particularly in interface areas in North Belfast. During the past year in spite of the difficult operating environment, NCBC achieved a 98% average occupancy rate in the Business Centre, the same occupancy rate as in the previous financial year. Towards the end of 2023 NCBC commissioned Johnston Houston, building and construction consultants to undertake a Planned Preventative Maintenance survey of the Business Centre. This report has set out a programme of priorities for site maintenance and repairs activity to be undertaken by the company inlo the future. c. 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 continued to be delivered virtually since the pandemic. included the delivery of the Northern Ireland 'Go For It, business start-up programme which concluded at the end of September 2023 and the new Nl Enterprise Support Service, Go Succeed, Engage and Foundation elements, which NCBC commenced delivery in December 2023. NCBC also continued to facilitate access to Start-up Loans for new businesses and delivered a time limited project beeen May 2023 and September 2023. fvnded by Belfast City Council, to support clients who had previously participated in the Pathway to Enterprise Programme {PEP) which NCBC had delivered between 2020 and 2023.
NORTH CITY BUSINESS CENTRE TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 d. Quality Developments ISO 9001 Audit A recertification quality management audit was undertaken by the NQA in March 2024, the results of which were very positive. New Licence Agreement In partnership with our professional advisers, a new and modernised licence agreement for businesses moving into the Business Centre was developed during the course of the year. e. Community Partnershlps and Networks NCBC ¢ontinues to host North Belfast Hour on Twitter which provides a forum for business and community networking on a weekly basis in the area. The Charity has extended its activities across a range of social media platforms and also engaged extensively and positively with local Gommunity 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. A new company website was also developed and launched in 2023124. During the year NCBC continued to engage with the North Belfast Area Learning Community {NBALC) to explore how the company might Gontribute to entrepreneurship education in local schools and in a ¢ommunity education context in North Belfast. NBALC is made up of 11 post primary schools and Belfast Metropolitan College. Financial review a. 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 ststements. Further details regarding the adoption of the going concern can be found in the accounting policies. b. Reserves Pollcy 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 fund unforeseen events such as emergency repairs to buildings and to build a fund to support potential future capital projects 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 a¢cordan¢e 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 2024 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 located close to the main site in North Belfast, therefore providing NCBC with a strategic site for any future developments. In line with the strategic focus of the company to support potential future capital projects including the Phase 4.2 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. Financial The Net Current Assets at 31st March 2024 were £574,174 with designated funds amounting to £2,156,599 reflecting an underlying unrestricted funds reSee of £2,834,475. As noted in the reserves policy above, the Board seeks to maintain contingency resenies 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 that are required to ensure that they are adequate to fulfil the company's continuing 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 risks. Plans for future periods 2023124 saw the development and implementation of NCBC'S new three year strategic plan after the COVID - 19 pandemic and the cost of living crisis, with a reinvigorated focus on the development of new commercial workspace and enterprise development and support initiatives, all within a context of promoting both economic and physical regeneration in North Belfast and ensuring the sustainability of the Charity. NCBC has continued to develop its capacity over a number of years to enhance the delivery of business start-up programmes. It is anticipated that this level of activity will Gontinue, partiGularly in its role as a member of the Local Enterprise Agencies network as the Charity continues to deliver the Northern Ireland Enterprise Support Service, Go Succeed, with Enterprise Nl as the lead contractor for this service. In the coming years NCBC'S proposed 'Phase 4.2. and other commercial workspace developments will also facilitate both greater numbers of small business stsrt-ups and financially support ongoing training and enterprise advice and development work as well as enhancing community capacity and regeneration in the area. The Trustees consider that the development of additional enterprise space Gan 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. NCBC has been a catalyst for economic renewal in North Belfast and the Board and staff will continue to work wilh various stakeholders and influenGer5 in the statutory, public and voluntarylcommunity sectors to identify opportunities to make a positive contribution to continuing economic renewal and regeneration in North Belfast.
NORTH CITY BUSINESS CENTRE TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 NCBC is in a strong financial position with regular income, generates surplus funds and has 5uffiaent cash reserves to Continue operations for the foreseeable future. structu. 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 ¢overs the North Belfast parliamentary constituency which means that our support is provided in North Belfast and some parts of the Antrim and Newtownabbey Borough ¢oun¢il area. We provide business start-up advice and guidance for people thinking about starting a business. We undertake outreach in community 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 Consider any type of eGonomi¢ 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 conflict of interest at ea¢h 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 statements were- D Williamson D Deazley P Carlin B Robinson l McAvoy D Morrow R Manning H Coghlan K Darcy-smith (Resigned 15 May 2023) (Appointed 16 October 2023)
NORTH CITY BUSINESS CENTRE TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 c. Method of appointment or election of trustees NCBC has an open recruitment policy for new Trustees and places 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 ¢ategories.- slrategic planning, governance. property management, economic 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 Charily can continue to focus on its core work as a local enterprise and business support agency. One new Trustee was appointed during this financial year and it is anticipated that additional Trustees will be appointed during 2024125 to fill skills gaps and further 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 are familiar with the practical work of the Charity and are encouraged to attend charitable membership awareness events, governance training and seminars. New Trustees are provided with a stru¢tured 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 Trustees are able to access appropriate management information as required. The 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 network 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 Gommitted 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 2024 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 Accounting Standards (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 charity and of the incoming resources and application of resources, in¢luding the income and expenditure, of the charitable company for that year. In preparing these financial statements, the Trustees are required to.. select suitable accounting policies and then apply them consistently., observe the methods and principles in the Charities SORP; make judgements and estimates that are reasonable and prudent., state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements- 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 Trus rep rtwasa roved by the Board of Trustees. D Williamson Trustee 16 September 2024
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 'charity') for the year ended 31 March 2024 which comprise the statement of financial activities, the balance 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 Ac¢ounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard 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 2024 and of its incoming resources and application of resources, for the year then ended-, have been properly prepared in a¢¢ordance with United Kingdom Generally A¢¢epted Accounting PractI- and have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act (Northern Ireland) 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditoffs 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 ¢on¢em 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 lating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least e1ve 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 information The other information comprises the infomiation included in the annual report other than the finala[ statements and our auditols report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the finan¢ial 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 so, 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 a material misstatement of this other information. we are required to report that fact. We have nothing to report in this regard. Matters on which we a 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 re¢ords- 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 of 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, disclosing, as applicable, matters related to going concern and using the going concern 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 statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the A¢t 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 auditols report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in a¢¢ordance 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. 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 whi¢h 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 tsx 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. We assessed the susceptibility of the company's financial statements to material misstatement, induding obtaining an understanding of how fraud might o¢¢ur, by. Identification of related parties; Making enquiries of management regarding where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud., Considering the internal controls in place within the company to mitigate the risk of fraud and non- compliance with laws and regulations. To address the risk of fraud, override of controls and non-compliance with laws and regulations, we perfomied analytical procedures to identify any unusual or unexpected related party relationships, tested joumal entries to identity unusual transactions, investigated any significant or unusual transactions and assessed whether judgements and assumptions made in determining the accounting estimates were suggestive of potential bias. 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. 10-
NORTH CITY BUSINESS CENTRE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF NORTH CITY BUSINESS CENTRE Use of our report This report is made solely to the company's members, as a body, in accordance with the Companies Act 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. Jonathan R Bethel (Senior Statutory Auditor) for and on behalf of Miscampbell & Co 16 September 2024 Chartered Accountsnts Statutory Auditor 6 AnnadaleAvenue Belfast BT7 3JH Miscampbell & Co is eligible for appointment as auditor of the charity by virtue of tts eligibility for appointment as auditor of a Company under section 1212 of the Companies Act 2006. 11
NORTH CITY BUSINESS CENTRE STATEMENT OF FINANCIALACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Unr8Stricted funds 2024 Unrestricted funds 2023 Notes Income and endowments from: Donations and legacies Charitable activities Investments Other income 5,421 651,102 119,495 5,800 593,578 139,188 Total income 732,766 781,818 Expenditure on: Charitable activities 516,302 610,057 Total expenditure 516,302 610,057 Net gainsl(losses) on investments 12 206,611 (145,234) Net income and movement in funds 423,075 26,527 Reconciliation of funds: Fund balances at 1 April 2023 4,567.999 4,541,472 Fund balances at 31 March 2024 4,991,074 4,567,999 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from Gontinuing activities. 12-
NORTH CITY BUSINESS CENTRE BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 Notes Fixed assets Tangible assets Investment propety Investments 13 14 15 1,377,281 922,066 2,117,553 1.452,443 922,066 1,883,216 4,416,900 4,257,725 Current assets Debtors Cash at bank and in hand 17 52,691 620,903 29,325 370,684 673,594 400,009 Creditors: amounts falling due within one year 18 (99,420) (89,735) Net current assets 574,174 310,274 Total assets less current liabilities 4,991,074 4,567,999 Net assets excluding pension liability 4,991,074 4,567,999 The funds of the charity Unrestricted funds 4,991,074 4,567,999 4,991,074 4,567,999 The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2024, although an audit has been carried out under section 144 of the Charities A¢t2011. 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 fin statements re approved by the Trustees on 16 September 2024 Illiamson Trustee Company registration number N1025633 (Northern Ireland) 13-
NORTH CITY BUSINESS CENTRE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Notss Cash flows from operating activities Cash generated from operations 23 145.799 86,824 Investing activities Purchase oftangible fixed assets Proceeds from disposal of tangible fixed assels Purchase of investments Investment income received {7,043) (18,043) 2,974 (116.613) 119,495 (27,725) 139,188 Net cash generated froml(used in) Investing activities 104,420 (12,187) Net cash used in financing activities Net increase in cash and cash equivalents 250,219 74,637 Cash and cash equivalents at beginning of year 370,684 296,047 Cash and cash equivalents at end of year 620,903 370,684 14-
NORTH CITY BUSINESS CENTRE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies Charity Information North City Business Centre is a private company limited by guarantee incorporated in Northern 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 "A¢counting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in a¢¢ordan¢e with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity 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 cost convention unless otherwise stated in the relevant accounting policy. The principal accounting 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 existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements. 1.3 Charitable 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 or grantors 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 recognised 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 recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under GiftAid 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 legacy is treated as a contingent asset. 15-
NORTH CITY BUSINESS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (Continued) 1.5 Expenditure Expenditure is recognised once there is a legal or ¢onstructive obligation to transfer economic benefit 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 MeasUd 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 between 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 20h straight line 10 % straight 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 property 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 transaction 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 Impairment of fixed assets At each reporting end date, the charity reviews the carrying amounts of its tsngible assets to determine whether there is any indication that those assets have suffered an impairment Ios5. 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 three 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 2024 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 pri unless the arrangement constitutes a financing Iransa¢tion, where the debt instrument is measured at the present 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 ¢reditors 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 creditor5 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 ¢harity's ¢ontractual 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 Retirement benefits 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 2024 Critical accounting estimates and judgements In Ihe application of the charity'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 experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both Current and future periods. Income from donations and legacies Unrestricted Unrestricted funds funds 2024 2023 Government grants 5,421 Income from charitable activitios Unrestricted Unrestricted funds funds 2024 2023 Income from charitable activities Centre income Programme income 555.500 38.078 526,028 125,074 593,578 651.102 Income from investments Unrestricted Unrestricted funds funds 2024 2023 Rental income Income from listed investments Interest receivable 86,500 37,263 15,425 86,500 31,920 1,075 139,188 119,495 18-
NORTH CITY BUSINESS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Other income Unrestricted Unrestricted funds funds 2024 2023 Other income 5.800 Charitable actlvities Centre cost Programme cost 2024 Total 2024 Centre cost Programme cost 2023 Total 2023 2024 2023 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 costs Loss on disposal Programme expenditure Computer costs Adam Street expense Phase 4 cost 230,491 230,491 205,785 205,785 82,204 82,204 83,511 1,055 6.474 11,140 27,899 11,696 83,511 1,055 6,474 11,140 27,899 11,696 6,351 12,156 18,573 10,126 6,351 12,156 18,573 10,126 48.111 48,111 53,639 53,639 747 2,095 8,794 222 3,809 499 747 2,095 8,794 222 3,809 499 7,757 50 6,644 524 2,458 13,197 217 2.108 500 524 2,458 13,197 217 2,108 500 7,018 500 5,366 7,757 7,018 50 6,644 500 5,366 17,055 17,055 13,727 2,974 13,727 2,974 83.633 7.944 25.607 28,282 28,282 3,982 83,633 3,982 7,944 25,607 433 433 452,342 36,039 488,381 476,321 90,651 566,972 Share of governance costs {see note 8) 27,921 27,921 43.085 43.085 480,263 36,039 516,302 519,406 90,651 610,057 19-
NORTH CITY BUSINESS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Support Costs allocated to activities Governance cost 2024 Total 2023 Governance 27,921 43,085 2024 2023 Governance costs comprise: Audit fees Legal and professional Investment management fee 3,750 14,633 9,538 3,700 24,078 15,307 27,921 43,085 Net movement in funds 2024 2023 The net movement in ftjnds is stated after chargingl(crediting).' Fees payable for the audit of the charity's financial statements Depreciation of owned tangible fixed assets 3,750 82,204 3,700 83,511 10 Trustees None of the Trustees {or any persons connected with them) re¢eived any remuneration or benefits frcqn the charity during the year. 11 Employees The average monthly number of employees during the year was- 2024 Number 2023 Number Employment costs 2024 2023 Wages and salaries Social security costs other pension Gosts 210,426 16,493 3,572 186,469 14,545 4,771 230,491 205,785 20-
NORTH CITY BUSINESS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 11 Employees (Continued) The number of employees whose annual remuneration was more than £60,000 is as follows.. 2024 Number 2023 Number £60,001 to £70,000 12 Gains and losses on investments Unrestricted Unrestricted funds funds 2024 2023 Gainsl(losses) arisin9 on- Revaluation of investment5 206,611 (145,234) 13 Tangible fixed assets Freehold land Improvement Fixtures and and buildings to premises rittings Total Cost At l April 2023 Additions 2,646,943 438,512 7.043 131,129 3,216.584 7.043 At 31 March 2024 2,646,943 445,555 131,129 3,223,627 Depreciation and impairment At 1 April 2023 Depreciation charged in the year 1,287,279 52,939 353,840 25,337 123,023 1,764,142 3,928 82.204 At 31 March 2024 1,340.218 379,177 126,951 1,846,346 Carrying amount At 31 March 2024 1,306,725 66,378 4,178 1,377.281 At 31 March 2023 1,359.665 84,672 8,106 1,452,443 14 Investment property 2024 Fair value At 1 April 2023 and 31 March 2024 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 2024 15 Fixed asset investments Listed investments Cost or valuation At 1 April 2023 Additions Valuation changes 1,883,216 27,725 206,612 At 31 March 2024 2,117,553 Carrying amount At 31 March 2024 2,117,553 At 31 March 2023 1,883,216 The book cost of investments at 31st March 2024 was £1,831,297 UK investments £814,554 Overseas investments £1,016,743 The market value of investments at 31st March 2024 was £2,117,553 UK investments £848,768 Overseas investments £1,268,785 16 Financial instruments 2024 2023 Carrying amount of financial assets nstruments measured at fair value through profit or loss 620.903 370,684 Financial assets measured at fair value through profit or loss comprise cash at bank and in hand. 17 Debtors 2024 2023 Amounts falling due within one year: Trade debtors Prepayments and accrued income 21,063 31,628 15,589 13,736 52,691 29,325
NORTH CITY BUSINESS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 18 Creditors: amounts falling due within one year 2024 2023 Other taxation and social security Trade creditors Other creditors Accruals and deferred income 24,245 9,970 49,051 16,154 24,326 1,287 46,030 18,092 99,420 89,735 19 Retirement benefit schemes 2024 2023 Defined contribution schemes Charge to profit or loss in respect of defined ¢ontribution schemes 3,572 4,771 The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund. 20 Unrestricted funds The unrestricted funds of the charity comprise the unexpended balances of charitable income, donations and grants whi¢h are not subje¢t to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes. Included within general funds income is a grant of £40,081 from the Department for Communities in support of the management of the Jolly Roger Complex. At 1 April 2023 Incoming resources Resources expended Transfers Gains and At 31 March losses 2024 ARC fund Phase 4 development fund General funds 12,632 12,632 1,909,631 2.645,736 37,263 695,503 (9,538) (506,764) 206,611 2,143,967 2,834,475 4,567,999 732,766 (516,302) 206,611 4,991,074 -23-
NORTH CITY BUSINESS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 20 Unrestricted funds (Continued Previous year: At 1 April 2022 Incoming resources Resources expended Transfers Gains and At 31 March losses 2023 ARC fund Phase 4 development fund General funds 12,632 12,632 1,938,252 2,590,588 31,920 749,898 (15,307) (594,750) 100,000 (100,000) (145,234) 1,909,631 2,645,736 4,541,472 781,818 (610,057) (145,234) 4,567,999 21 Analysis of net assets between funds Unrestricted funds 2024 At 31 March 2024: Tangible assets Investment properties Investments Current assetsl(liabilities) 1,377,281 922,066 2,117,553 574,174 4,991,074 Unrestricted funds 2023 At 31 March 2023: Tangible assets Investment properties Investments Current assetsl(liabilities) 1,452,443 922,066 1,883,216 310,274 4,567,999 22 Related party transactions There were no disclosable related party transactions during the year (2023 - none). -24-
NORTH CITY BUSINESS CENTRE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 23 Cash generated from operations 2024 2023 Surplus for the year 423,075 26,527 Adjustments for.. Investment income recognised in ststement of financial activities Fair value gains and losses on investments Depreciation and impairment of langible fixed assets (139,188) (206,611) 82,204 {119,4951 145,234 83,511 Movements in working capital.. {Increase)Idecrease in debtors Increasel(decrease) in creditors (23,366) 9,685 25,274 {74,227) Cash generated from operations 145,799 86,824 -25-