THE HARMONY COTrtMUNITY TRUST STATEMENT OF FLYCIAL ACTIVITIES ncluding INCOME AND EXPENDITURE ACCOUNT) For the year ended 31 March 2023 Restated Unrestricted Restricted Funds Funds Total Funds Total Funds 2022 2023 INCOME FROM Income from generated funds Volzinrary income Donations and grants Activiliayfor generatingfyp¥L¥ Fundraising Note 37,830 1&323 56,153 41.958 673 673 718 38,503 18J23 56,826 42.676 lllcome frotn charitsble activitie5 Core GrJJ]ts 23.621 23,621 53,494 Programme activities 6.795 128,741 135536 116,756 6,795 151362 159,157 170,250 Totsl illeome 45298 170,685 215,983 212.926 EXPENDITIJRE ON Cost of geD¢rgtiDg funds Costs of generating volulltary income 3.424 3,424 2.647 Charitable activities 99.581 164I62 264,443 198.175 Governance costs 4.600 4,61XI 4.600 Total expenditure 107,605 164,862 272.467 205.422 NET (EXPENSEYINCOME FOR THE YEAR (62J07) 5,823 {56,484) 7504 RECONCILIATION OF FUNDS Totsl fids brought forward 383.125 34JOO 417,425 409,921 TOTAL FUNDS CARRIED FORWARD 320,818 40.123 360,941 417,425 The ststemeDt of fmancial activities includes all gains and losses in the year. All income and expenditure derive from continuing activities.
'rHE HARMONY COMMUNrrY TRtJST BAIANC'F SHEET Year EJHled 31 2023 R¢stAt¢d 2022 Nots 2023 FIXED AWTS Tansibl¢ ¥ts 619.6J5 615.514 tkbtors Cash at bank alld in hand 10 3Q570 215 59.154 19.922 79,076 CREDI'foRS: Amoullts fall1 wlthin one year (55.341) {J7.026) NET CURRENT ASSllTW (LIABILlEs} (1&556) 42.050 NET A&SETS 13 601.0 657.564 REsfRicfED Fi3P4DS 14 40.123 34J(K) UNRKSTRICTED Fuf4DS R¢wslualion r¢s¢rY¢ ¢TrI fun(Is 14 14 240.139 320.818 240,139 383,125 TOTAL iTUM>S 601.0 657564 e0ts Ik1 beenple1 tthocwT(tsoc¢ with priwision5 applicable to COllVOiCS 3ubjttl tothe fInala1 Statenl weR Iw)roveAI by the Collr£tl &hOris for release On(bAalI 2Q24 Si£ne(l on beha]f of the COW11 ConlttY Tggistsation nwnber. NIOI(kn39
THE HARMONY COMMUNITY TRUST NOTES TO THE ACCOUNTS Year Ended 31 March 2023 1.1 GOING CONCERN The Trtm has recorded Net Outgoing Resources of £56.484 after depreciation of £2.908 duritLg the yeaT ended 31 March 2023 and Net Current LiabiIities of £18,556 with net assets of £601.080 as at 31 Mch 2023. Post year end cuts to the NI Executive's budget for Suprting the work of the voluntary and communty sector (a5 part of wider cuts to the NI budget) have resulted in the 1055 of over £IOOk funding for 2024, using a Strai on c&5h flow. As a r¢sult the decision w&8 taken to make ail staff posts at Glebe House redundant at end September. The TnteeS bejieved that due to the above ¢iT¢uMS¢es there was a material uncertainty which rnay cast doubt on the Trust's ability to continue as a goÈng concem alld therefore it might not be possible to realise its assets and Iiabilities in the nonnal course of business. To address these concerns and ensure thc 5U5taiTrability of the organisation the Trust is WOTking to a Tecovery plan focused initially on S¢¢UTing the funding, from the stattLtory and quasi-statutory bodies who have consistently fimded HCT in previous year5. With the restoration of the Nt Executive and Df the 1] NI budget tbe Trust is biddillg into a le$5 austere fa] environment than t1 which obtsined in 2023124. The plan aims to restOTe programme5 and recruit incrementally the necessary staff. The plan also includes the promotion of Glebe Hoe &5 a residential and aclTvity venue to external organisations to generats income. and the estsblishment of a Social enterprise. In the meautime, the Trust Continues to operats delivering prryrammes run by volunteers and outgoings are reduced to a minimum while some of the Trust's Lssets are realise(L We have completed the sale of a piece of our land wbickL is Ulled fDr £90,000, the receipt of which has cleaTed our overdraft. The Tnjst is considering fiber sales of unused assets with the intention when th¢5¢ are complete to retain a site of approxiEnately 8.5 acres including the residential ¢entre, offic&8. meeting rootDS and a conference faciltty and with cash Teserve5 to support a robust cash pn.qition. The current progrdmmes are being provided supported by volwiteers and only to the extent that funding is available or that each progTatnme is self-fllwicing. As funding coTres on stream again the Th is now in a posltion to make app]ications to enable operattons to be resumed to rebuild our activities only within the available resource, and to date we have submitted appltcations totallNng £140,000 and are preparing further applications which the Trwthas set out in a targeted fundraising schedule. The directors are confident that the Trust's operations will continue to be managed to enable it to operate for the foreseeable future within the resources available to it. Accordingly the directors are of the finD view that it is appropriatr to prepare these fllmncial statements on the going concern basis, which assumes that the ¢ompany w'ill continue in operational existence for at least 12 months frorn the date of signing the fJnanciaI stateellts. 1.2 ACCOUIYFING POIJCIES The principal accounting wilicies adopted are descnbed lOw. asis ofpreparing the fmaneial ststements The fmancid statements of this public benefit entity have been prepared ID accordance with Accounting and Reporting by Charities: Statement of R¢¢omrnended Practice applicable to dritieS preparing their accounts in accordance with tbe Financial Reporting Standard applicable in the UK and the Republic of treland (FRS 102) (effective ISL January 2016) - (Charities SORP (FRS 102). tbe Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102) and tbe Companies Act 2006. Fund accounting Unrestricted fimds are available for use at the dis¢retion of the tThteeS in fjjrtherance of the general objectives ofthe charity. Restricted funds are subjected to restricttOD5 ontheir expcnditure imposed by the donor or terms of an appeaI. 13
THE HARMONY COMMUNITY TRUST NOTES TO THE ACCOUNTS Year Ended 31 March 2023 ACCOUNTtNG POMCIES (continue Illeomillg r0ree$ All incoming resources included ID the statement of financiaI activities when the charity is entitled to the income and rh¢ aTrount Can be quantified with reasonable accuracy. The following specific poltcies e applied in particular categories of income: Voluntary income is Teceived by way of grants. donations and gifts and is included in full in the statement of fmancial activities when receivable. Grants. where entLtlement is not conditional on the delivery of a specific perforniance by the charity, are recognised when the chaTity become5 unconditionally entitIed to the granL Donated services and facilities aTe included at the value to the charity where this can be quautifie¢l The value of service by volunteer5 has not been included in these accounts. Resources expended Expenditure is recogllised on an accrual basis as a liability is Incurr ExpendIt(e includes VAT reported as part of expenditUTe to which it relates. Cost of generating fullds compTi5es the c05ts associated with attracting voluntary income. Charitable expendÉrure comprises those costs incuThed by the charity in the delivery of tL8 activittes and servtces for its beneficiaries. It includes Ex)th costs tbat cau be a5so¢iated directty to such activities 8tkd those costs of an iDdirect nature necessary to support them. Governance costs include those costs &ssociatedwtth meeting the conStitional and statutory requirements of the clmrity and in¢lude tb¢ audit fees and costs IiDked to the strategic management of the chartty. All costs are allocated between the expenditure categories of the SOFA on a b&8is designed to reflect the use of the resource. Costs relattng to a particulaT activity are allocated directly. others are apportioned on an appropriat¢ basis ¢.g. floor area4 per capila or estinmted age as set out in note 4. Tangible red assets Tangible fixed assets are started at cost or V8htIon. Det of depreciation and any provisiotl for impairment Depreciation is provided on all fixed &sseL% calculated to write off cost or valuation. less estimated Tesidual value, witELin thetr useful lives. The methods adopted and the rates used ar¢:_ Buildings on freehold land 2Yts straigELt ]ine Motor vebicles 250/0 on reducing balance Fixtures, fittings and equipment I/4 Strnight line b) Rev21uation of properties There were & cballge in accounting policy in the yeaT to to record land and buildings at fair value ratber thau cost a5 was previously done. A prior year adjustment has been posted to the fthancial Statements as explained in the note to the accounts &8 is required when there is a a change in an entity's accounting policies. Freehold propertie5 are revalued every year with the surplus or deficit on book val¢ transf¢Tred to the revalualion reserve, exceptthat a deficit in excess of a previoustyrecogni5ed surplus over depreciated cost is charged to the income and expenditure account. here depreciation charges are inCred following a revaluation, an amount equal to the increase is transferred amlually from the revaluation Teserve to the income and expenditure account &$ a movement on reserves. On disposal any Telatsd balance remaining in the reserv¢ is similaTly transferred to income and expendibjre account. Debtors Trade and Oth debtor5 are recognised at the settlement amount due afteT any trdde discount offered. Prepayments valued at the amount PTepaid net of any trade discounts due. 14
THE HARMONY com([[ITy TRUST NOTES TO THE ACCOUNfs (CONTINUED) Year Ended 31 March 2023 ACCOUThNG POLICIES (eontillued) Creditors Creditors and provi5iODS are recognised where the charity has a present obligation resulting fron) a p&st event that will probabty reslllt in the traDsfer of fumds to a third party and the atnount due to settle the obligation can be measured or &stimated reliably. CTeditOT5 are norrnally recolIs¢d at their settlement aTllount after allowing for any trade discounts due. Financial Instruettts The company only has fina]]cial a55ets and fjnancial liabilitses of a kind that qualify a5 basic fmancial in5trumerAts. Basic fmancial instruments are initsally recognised at transaction v&lue and subsequently measured at their settlement value. Pellsions Retirernent benefits to employees of the Tnjst are provided by a defined contribution pension scheme. whereby the assets of the schemc are held separdtely from tbose of the Trust in an ind¢p¢DdeDtIy admillister¢d fimd. The TDJStcontributions are accounted for by charging costs against income as payments accrue. Judgements and key sourtes ofestimation uncertainty The following judgements including estirnate5 have been made in the process of applying the abovc accounting policies that have had the most sigllificant effect on the amounts recognised in the f]nancial statements and that have a significant risk of causing a material adjustment to the carying amounts of agset5 and liabilities within the next fitLallcial year: (i) (Li) (Ill) Depreciation tnethod and asset useful lives Valuation of properties Impairment of assets The estirnates alkd assumptions are review on an ongoiDg basis considering th¢ current and tUre market Conditions. 15
THE HAKMONY COMMuNrrY TRUST 'OTES TO THE Accouwfs (CONTINUED) Year Ended 31 March 2023 DONATIONS Unrestricted general donations. grants 2nd Open Day DollatiOll5 of £100 or over were received during the year from: V Adaros Dr M Boyle J PuIha K McKinty Lions 100 Paul Thompson 100 M Fitzpatrick 194 K Cluney 120 The Rotary Club of Belfast 500 Power Nl 5,OCQ Belfast H2Tbour 5.000 VSB Foundation 720 loo 200 1,000 1.600 2,000 8.000 B&Q ANF Communty Foundatton Restrieted donations have been received in respect of programme 2¢tivity from: Executive Office- Good Relations DOH Family Policy Directorate Community Foundation Newry & Moume District Coun¢il Arts Council NI 90,0 Co-op Alterntives 23,621 Clear project 13.064 DepaTtJnent of tnfrastrucbjre 4,658 Public Health Agency (Clear) 3.871 Bryson House 2.500 7.775 7.293 7.944 2,100 In tkefinLThcialstatém¢nts these amounts ore a4xstedforopening andclosing acmied& deferTedincome. 16
THE HAILMONY COMMLThITY TRUST NOTES TO TIIE ACCOUNTS (CONTINUED) Year Ended 31 March 2023 tNCOME FROM A1VITIEs TO FURThIR THE CHARITY'S OWECTS include Restated 2022 Tot21 2023 Total Unrestricted R&ricted Grants and contracts.. Departtnent of Health FPD Communities Fund 23.621 23,621 23,621 29.873 23,621 23,621 53.494 Programme related.. The Exe¢utiv¢ OtTi¢e- Centra] Good Relations Executive Office TBUC Departtnent of For¢ign Affai (ROI) PHA CLEAR Arts Coullcil NI Arts for Older Pe¢)ple Project Newry. Mourne & Down District Council Community Foundation ANF Community Foundation Community Relations Council Bryson House- Ukraioe Various 90.000 90.0 90,000 8,000 11219 7.775 4.301 6,458 3.988 5,0 11219 7.775 4,301 6.458 3,988 5.000 10,612 500 2,100 4.695 2,100 4,695 A795 128,741 135536 116,756 TOTAL EXPEND1)RE Unrestricted Voluntary Income Unrestricted Restricted Unrestrieted Charithble Activitif Goverllallce 2023 Total Reststed 2022 Total Costs direetly allocate to activities: Staff & related costs Direct Prograrnme costs Direct Establishment Costs Direct Insurance Direct Depreciation DiTeGt Audit fees DiTe¢t Fundraising Direct Support costs alloc2ted to activities: Staff & Telatcd costs Finan¢e Administsation costs 52,165 (669) 22,090 8,900 2208 117,688 35.844 5.809 3,600 700 169,8S3 126,896 35,175 30.733 27,899 10,099 12,5(KJ 12.775 2.908 5.010 3,6(M) 3,600 624 159 3.600 624 Tittle Usage Usage 2,000 7.000 154 7,733 1,000 Jo,000 154 9,754 i 0,000 75 8,225 800 1221 3,424 99.581 164.862 4,6(Kl 272,467 205,422 17
THE HARMONY COlk[[u TRLST NOTES TO THE AccouNfs (CONTINUED) Year Ended 31 March 2023 NET INCOl[NG RESOURCFS FOR THE YEAR R&stated 2022 2023 This i3 Stated after charging: DeprecTation Auditor's remuneratio inc vat- CUTrent year 2,908 3.600 4,833 3,600 STAFF COSTS AND COUNCIL 2023 2022 Average number of persons employed The average number of people employed by the Tnt (excluding tempordry Staffj w&s: Restated 2022 2023 Siaff Costs during the year Wages and salaries Social security costs Pension ¢osts 154.568 8.866 7,958 118,656 5.241 4,175 171,392 128,072 2023 2D22 Remuneration received by key nwiagement personnel was as follows: 48.321 36,761 No employ¢e5 receive emoluments in excess of £60,000. Coullcil members do not receive any remuoeration for their services. nor are they interested in any traDsa¢tions of the TrusL There were no transactions with related parties during the year requiTing disclosure. INTEREST PAYABLE Restattd 2022 2023 Bank loaDs and overdrafts 154 75 18
THE HARMONY COMl¥tLThITY TRUST NOTES TO'I'HE ACCOUNTS (coNTNUED) Year Ended 31 March 2023 TAXATION Th¢ ¢ompany has tax4xempt status with HM Revenue & Customs as a charity registered by the Charity Commission for Northern IreIand. TANGIBLE FIXED ASSETS Freehold Land and Buildings Fitting Tools & Equipment Motor Vehicles Total Cost or valuation Restated At l April 2022 Additions 600.000 9,OIKJ 155,776 7.030 764,776 7,030 At 31 March 2023 600.600 9,IKIO 16U06 771.806 Ae¢umulated Depreciation RestaÉed At l April 2022 Charge in year 2,250 1.688 147,012 1.220 149.262 2,908 At 31 M2rcb 2023 3.938 148232 IS2,170 Net bookvalue At 31 March 2023 600,00 5.062 14J74 619,636 At 31 March 2022 (Restated) 600,000 6,750 8,763 615,513 Freehold property was professionally valued during the year on an open market value basis at£600,000 by Alexander. Reid & Frdzer, CkLartered Surveyors. The propeTty at Glebe House. Kilclief. Co Down is subject to a registered all monies mortgage held by the Trust's bankers. io. DEBTORS Restated 2022 2023 (all due within one year) Trade debtors (Trher debtors Prepayments aud accrned income 400 29,552 6,618 2lO 54.724 4220 36,570 59,154 19
THE HARMOYY CO,NJIVAUNryTY TRDST NOTES TO THE AccouNfs (CONI'IIYUED) Year Ended 31 March 2023 ii. CREDITORS: AMOUNTS FALLING DUE WllTH ONE YEAR Reststed 2022 2023 Bank overdraft (se¢ured upon the Kilclief property- note 9) Trade creditors Taxes and social secuTity ACCn]$ aud defeed income 18,066 14,155 3,331 19.789 1238 3,080 32,708 55.341 37,026 12. ANALYSIS OF NET ASSETS BETWEEN FUIYDS - Restated General Fund$ Restricted Funds Total Fund5 Tangible fjxed ets Current &5sets Creditors & ac¢ruab 579.513 36.785 40,123 619.636 36,785 Net assets 560.957 40,123 601,080 13. MOVEMENTS IN FUI¥DS At l April 2022 tucoming resources (tgoing resource5 At 31 MaTch 2023 Re5tatrdl Restricted funds 34JIN) 170.685 (164.862) 40.123 Unrestricted funds Revaluation Teserve GeneraI fLdS 240,139 383.125 240.139 320,818 45.298 (107.605) 657 272,46 14. LEGAL STAThS & GUARANTEE The Hannony Community Tnjst 15 a company limited by guarontee. not having a skn capital.Every member of the TTu51 undertakes Io CODtrbL Ute to the assets of the TnJ5t in the eveDt of the same being wound up whiIe he is a member. OT within one year after he ceased to be a member, for paytnent of the debts and liabilities of the Trust contrdcted before he ceased to be a member, and of the costs. charges and expenses ofwinding up, a)d fordLe adjustment of the rights of its contributorie5 amongst thcmselv¢s, such amount as may be required not exceeding one poull(L 15. PRIOR YEAR A])JUSTKEKf- eh2Dge in accounting policy During the current year the Trustees chatLged the accounting policy for cOunting foT18nd and buildings from cost model to revaluation model. They believe the chauge results in the financial statements providing reliable and more relevant inforrnatiou about the entity's financial position. The effect of this was to increase the assets balancc at l ApriI 2022 by £240.139 which h&% beeu included in the revaluation reserve. Ther¢ was no depr¢¢iation charge requiTed on the a&set in the prioryear therefore the SULpIu5 increased by £12.719 in the STatement of Financial Activities for the year ended 31 March 2022 with the same impact on the BalatLce Sheet. 20