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2017-03-31-annual-return

Charity number: X27676, NI102878

Rosemount & District Welfare Rights Group

Management committee report and financial statements

for the year ended 31 March 2017

Rosemount & District Welfare Rights Group

Contents

Page
Legal and administrative information 1
Management committee report 2 - 5
Independent examiners' report 6
Statement of financial activities 7
Balance sheet 8
Cash flow statement 9
Notes to the financial statements 10 - 17

Rosemount & District Welfare Rights Group

Legal and administrative information

Charity number X27676, NI102878 Business address Westway Rosemount Derry BT48 9NT Registered office Westway Rosemount Derry BT48 9NT Secretary Seamus Harkin Management committee Eileen Kivlehan Chairperson Jackie O'Reilly Appointed Treasurer 29/05/17 Seamus Harkin Secretary Paul Rush Michael Kivlehan Margaret Mooney Jacqueline Doherty Philip O'Neill Resigned 29/05/17 - formerly Treasurer Ciara Deane Appointed 23/06/16 Dalton Kehoe Vice-chair Sean Young Damien Butler Jean Martin Appointed 23/02/17 Sean Boyle Appointed 23/02/17 Marie Mooney Appointed 23/02/17

Council representatives

Michael Cooper & Shauna Cusack

The council representatives are nominated by Derry City & Strabane District Council to attend the management committee meetings of the charity although they do not have any voting rights at those meetings.

Manager Mr Thomas McCourt Accountants Shaun McGinty & Co Chartered Accountants 44 Woodbrook Derry BT48 8FF Bankers Bank of Ireland 15 Strand Road Derry Solicitors Jones & Company Solicitors The Potthouse 1 Hill Street Belfast, BT1 2LR

Page 1

Rosemount & District Welfare Rights Group

Report of the management committee for the year ended 31 March 2017

The management committee present their report and the financial statements for the year ended 31 March 2017. The management committee who served during the year and up to the date of this report are set out on page 1.

Structure, governance and management

Governance

The organisation is a charity that is governed by a written constitution. It is recognised as a charity by HM Revenue & Customs (reference X27676) and it's Northern Ireland Charity Commission number is NI102878.

Membership & Structure

All persons living in the area of benefit aged 18 or over shall be eligible for membership of the group. The membership of the group will consist of a maximum of 15 members.

Membership Fees

All members of the group shall pay a membership fee of £5 per annum payable on acceptance.

Rotation of Membership

Two members, to be determined by lot, shall voluntarily retire every 3 years. Retiring members shall be eligible for re-election.

Management

Except as provided otherwise in the constitution, the group shall be managed by a committee, consisting of the Chairperson, Secretary, Treasurer, Assistant Secretary, Assistant Treasurer and Training Director to be elected by and from amongst the members present and voting at an Annual General Meeting.

Governance, internal control and risk management

The management of the charity conduct their own review of the major risks to which the organisation is exposed and establish systems to mitigate those risks. Significant external risks relating to funding have led to the development of a financial plan that will provide additional funding income to the organisation. Internal risks are minimised by the implementation of procedures for authorisation of all transactions and programmes.

Objectives and activities

Charitable objects

The charity is established for the benefit of the community in Northern Ireland by the advancement of education and the relief of poverty,sickness and distress and any other charitable purpose and in particular, to provide in Rosemount and surrounding district legal services and welfare rights information to people, who because of their lack of means, could not otherwise afford such services.

Public benefit

Rosemount & District Welfare Rights Group strive to ensure that they provide public benefit. The principle objective of the charity is to encourage the advancement of education of the people in the local area and to assist them by providing them with support and welfare and legal advise that they would otherwise not be able to afford. As well as providing welfare rights advise to the people in Rosemount, the charity also runs a number of other programmes aimed at engaging with the residents of the area and seeking to tackle the problem of anti-social behaviour that occurs locally. It does this by providing advise to the residents as well as by organising activities for the young people who would otherwise become involved in anti-social behaviour.

Rosemount & District Welfare Rights Group has since it inception tried to provide an array of services and interests to benefit the local community. The charity's motto is "Unity of Purpose, Encouragement of Diversity" and it is with this as their ethos that all users of the charity work together in their own interests and in support of others in the local community. The charity has now established itself as a thriving community hub, used and appreciated by everyone in the area. The local community now feel that they have a resource which can provide for their needs and over which they have ownership. Through the work of the charity community cohesion is redeveloping and people in the catchment area feel more secure and less isolated.

Page 2

Rosemount & District Welfare Rights Group

Report of the management committee

for the year ended 31 March 2017

Achievements and performance

Department for Social Development (now DfC)

The financial statements for the year include grant aid income of £85,985 (2016: £89,965) from the Department for Social Development under the financial assistance offer covering the wages costs of 3 core workers and a portion of the overhead costs. This DSD, now called DfC, funding is expected to be renewed for a further year to 31 March 2018. The financial statements also include a further £37,292 (2016: £30,700) of financial assistance received from the DSD in support of the running costs and capital costs of the fitness factory facility.

Derry City & Strabane District Council - Welfare Rights and other services

The charity continues to provide welfare advice services in the area under the Derry City & Strabane District Council Advice Services Support Programme. The accounts include total grant aid of £14,543 (2016: £22,384) due from Derry City & Strabane District Council during the year in support of the welfare advice service. The funding awarded assists with covering the operating costs incurred by the charity in providing those services. All such operating costs, including wages costs and volunteer expenses, are reflected in expenditure costs. The district council also awarded a capital grant of £ 938 to the charity under the Welfare Reform Support Programme to cover the cost of new equipment.

Children In Need

The financial statements for the year include £30,895 (2016:£39,000) of grant aid income from BBC Children in Need in support of the wages costs of 3 staff. This funding has been awarded for 3 years.

Big Lottery Fund

The accounts include funding of £106,997 (2016:£163,522) from the Big Lottery Fund in connection with the Time 2 Choose project. The related wages and costs of the project are included in resources expended. This funding finished in the early part of 2017.

International Fund for Ireland

The accounts include £94,964 (2016:£102,111) of income from the International Fund for Ireland in connection with the Time 2 Choose part 2 project. The related wages and other costs of the project are reflected in the expenditure for the year. This funding was renewed until June 2017.

Financial review

The financial statements for the year ended 31 March 2017 show total income of £447,610 (2016: £493,534) and total expenditure of £460,669 (2016: £494,415) resulting in a net deficit of £13,059 (2016: deficit £882). As at 31 March 2017 the balance sheet shows a net deficit of funds of £4,431 (2016: funds surplus £8,628).

Time 2 Choose programmes

The Big Lottery funded part of Time 2 Choose finished during the year while the IFI funded part was renewed until the end of June 2017. During the year there was wages costs of approximately £6,000 linked to staff employed on this programme that ended up not getting funded, as well as approximately £4,000 of other programme costs incurred that also were not funded. Since these costs were not funded they have contributed significantly to the deficit reported during for 2017.

Welfare rights and legal advice service

The charity had in the 2016 year recruited a retired solicitor to the staff with the aim of providing legal advise to clients. In addition to the staff member's wages costs, the charity also incurred further fees getting recognition with the law society and in obtaining professional indemnity insurance for this project. It was expected that the charity would be able to generate an income stream from this service by claiming legal aid on the same basis as practicing solicitors. However there were issues with the files maintained by the employee and no income was ever generated for the service. These unfunded costs and lost income have also contributed significantly to the 2017 deficit.

Page 3

Rosemount & District Welfare Rights Group

Report of the management committee for the year ended 31 March 2017

Shantallow office

The March 2017 accounts include rental costs of £3,400 for the use of an office in the Shantallow area. This cost was not covered by any funders and as such contributes to the unfunded operating deficit. This cost has now finished and will not arise again in the next financial year.

Fitness Factory

The March 2017 accounts include £23,968 of operating income generated by the fitness factory gym exclusive of any grant aid received from funders. As well as funding for running costs received from the DSD, the gym was awarded £10,000 of funding from NIHE to assist with the wages costs of one employee. The March 2017 accounts include £2,334 of this NIHE funding together with the related wages costs while the balance of £7,666 has been included as deferred income in current liabilities and will be recognised in the next financial year along with the matching wages costs.

Going Concern

It is expected that grant aid funding from the Department for Communities (DfC), formerly DSD, will be awarded to cover core wages for 3 staff and a portion of overheads for the next year up to 31 March 2018. The Time 2 Choose programme funding from Big Lottery Fund finished during the year, while the International Fund for Ireland funding finishes at the end of June 2017. The charity is currently in discussion with funders to see if new funding can be obtained for the programme. The financial assistance from the BBC Children in Need was also renewed in 2016 for a further 3 years and covers wages costs of 3 staff. The charity has reported a significant deficit in the year ended 31 March 2017 and the management committee are taking steps to generate new income streams to cover the 2017 year deficit. If the charity is unable to obtain new funding, reduce the level of unfunded expenditure and at the same time generate new significant sources of income it will be difficult for the charity to be able to continue as a going concern.The Management Committee are however confident that they will be able to address both the need for new funding and also significantly reduce the amount of unfunded costs. Based on the current funding offers and management committee's confidence that they will be able to secure new funding and reduce costs, the accounts have been prepared on the basis that the charity will continue as a going concern. In the event that core funding was not renewed or new funding was not secured then the going-concern status of the charity would be called into doubt.The current DfC offer of financial assistance should cover 3 core staff wages and an element of overhead costs for the year to 31 March 2018. The funding from BBC Children in Need to assist with wages costs for 3 other staff was renewed for another 3 years and now runs to 31 March 2019. The funding award from the IFI which funds the staffing and operating costs of part of the Time 2 choose project was renewed until the end of June 2017 although the charity is in discussions with funders to see if new funding can be secured. The renewal of financial assistance by various funders would indicate their confidence both in the charity and in its management and provides a sound foundation for the organisation to develop and expand the range of services that it provides in its catchment area. The Management Committee are confident that in addition to the funding already awarded to the charity, they will be able to add to that funding base as well as address the level of unfunded operating costs and as such are confident that the charity will be able to continue to operate. As such they believe that there are currently no issues in respect of the going concern status of the organisation.

Plans for future periods

The charity will continue with its core operations together with the various other programmes that it operates, including the remaining IFI funded Time 2 Choose project. The funding approved for the charity will allow it to retain its core staff together with the other project staff who will be employed for the duration of the different funding periods. The Time 2 choose funding is currently expected to end at the end of June 2017 however it is hoped that new funding applications will be made and that the programme can be re-activated if suitable funding is secured.

The management committee will continue to assess the financial performance of the charity during the current challenging economic times for the charity and voluntary sector in Northern Ireland and will look to secure additional funding so as to ensure the continued financial viability of the charity.

Page 4

Rosemount & District Welfare Rights Group

Report of the management committee for the year ended 31 March 2017

The management committee of the charity have taken steps to develop new income streams and plan to undertake a general fundraising innitiative aimed at clearing the charity's overdrawn bank balances and which will also hopefully clear the current balance sheet deficit. As part of this process the decision has been taken to start charging the other voluntary groups that operate from the Rosemount premises for their use of the building and other resources. These groups have previously used the building free of any charges with the all costs being covered by the Rosemount & District Welfare Rights Group charity. At the same time the management committee will look to ensure that they minimise the amount of expenditure incurred that is not funded. It is hoped that both the new income streams and renewed cost controls will enable the charity to address it's funding issues and resolve the cashflow issues that has occurred during in 2017.

Statement of management committee responsibilities

The management committee are responsible for preparing the Management Committee Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Law applicable to charities in Northern Ireland requires the management committee to prepare financial statements for each financial year which give a true and fair view of charity and of the incoming resources and application of resources of the charity for that year. In preparing these financial statements the management committee are required to:

The management committee are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the the Charities Act (Northern Ireland) 1964 and the Charities Act (Northern Ireland) 2008 . 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.

The management committee are responsible for the maintenance and integrity of the financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and disseminiation of financial statements may differ from legislation in other jurisdictions.

On behalf of the board

Jackie O'Reilly Eileen Kivlehan Treasurer Chairperson

7 September 2017

Page 5

Rosemount & District Welfare Rights Group

Independent examiner's report to the management committee on the unaudited financial statements of Rosemount & District Welfare Rights Group.

I report on the accounts of Rosemount & District Welfare Rights Group for the year ended 31 March 2017 set out on pages 2 to 17.

Respective responsibilities of the management committee and independent examiner

The charity's management committee are responsible for the preparation of the accounts. It is my responsibility to state, on the basis of my examination, whether particular matters have come to my attention.

Basis of independent examiner's statement

My examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as the management committee concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts.

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

...........................................................

Shaun McGinty & Co Chartered Accountants Independent examiner 44 Woodbrook

Derry Northern Ireland BT48 8FF

Date: 7 September 2017

Page 6

Rosemount & District Welfare Rights Group

Statement of financial activities

For the year ended 31 March 2017

Unrestricted
Restricted
funds
funds
Notes
£
£
Income and endowments from
Income from generating funds:
Donations and legacies
2
9,400
389,778
Other trading activities
3
29,743
-
Investment income
4
-
-
Other income
5
18,689
-
Total income
57,832
389,778
Expenditure on
Staff costs
6
39,681
218,185
Operating leases and hire costs
364
-
Establishment costs
12,473
50,465
Motor and travelling expenses
918
4,579
Accountancy fees
200
3,290
Legal and professional fees
-
-
Communications and IT
318
4,892
Other office expenses
2,973
1,224
Interest payable and similar charges
2,793
-
Depreciation and impairment
2,246
4,786
Projects and other direct costs
7,571
89,412
Project costs - Fitness factory
2,500
7,305
Volunteer Expenses
-
4,494
Total expenditure
72,037
388,632
Net income/ (expenditure)
for the year
)
(14,205
1,146
Total funds brought forward
1,891
6,737
Total funds carried forward
)
(12,314
7,883		 2017 Unrestricted Restricted
Total
funds
funds
£
£
£
399,178
3,910
465,599
29,743
9,892
-
-
11
-
18,689
14,122
-
447,610
27,935
465,599
257,866
13,511
245,915
364
1,185
772
62,938
4,319
59,194
5,497
5
7,197
3,490
50
3,290
-
35
-
5,210
1,057
3,994
4,197
1,496
4,570
2,793
2,061
-
7,032
2,603
3,534
96,983
-
123,363
9,805
-
4,451
4,494
1,909
9,905
460,669
28,231
466,185
)
(13,059
)
(296
)
(586
8,628
2,187
7,323
)
(4,431
1,891
6,737		 2016
Total
£
469,509
9,892
11
14,122
493,534
259,426
1,957
63,513
7,202
3,340
35
5,051
6,066
2,061
6,137
123,363
4,451
11,814
494,416
)
(882
9,510
8,628

The financial statements were approved by the management committee on 7 September 2017 and signed on its behalf by

Jackie O'Reilly Eileen Kivlehan Treasurer Chairperson

The notes on pages 10 to 17 form an integral part of these financial statements.

Page 7

Rosemount & District Welfare Rights Group

Balance sheet as at 31 March 2017

Notes
Fixed assets
Tangible assets
9
Current assets
Debtors
10
Cash at bank and in hand
Creditors: amounts falling
due within one year
11
Net current liabilities
Net (liabilities)/assets
Funds
12
Restricted income funds
Unrestricted income funds
Total funds		 2017
£
£
31,011
40,162
17,286
57,448
)
(92,890
)
(35,442
)
(4,431
7,883
)
(12,314
)
(4,431		 2016
£
£
32,097
74,714
18,736
93,450
)
(116,919
)
(23,469
8,628
6,737
1,891
8,628

The financial statements were approved by the management committee on 7 September 2017 and signed on its behalf by

Jackie O'Reilly Eileen Kivlehan Treasurer Chairperson

The notes on pages 10 to 17 form an integral part of these financial statements.

Page 8

Rosemount & District Welfare Rights Group

Cash flow statement

for the year ended 31 March 2017

Notes
Net outgoing resources for the year
Interest payable
Interest receivable
Depreciation and impairment
Decrease/(Increase) in debtors
Increase/(Decrease) in creditors
Net cash inflow/(outflow) from operating activities
Returns on investments and servicing of finance
20
Capital expenditure
20
Increase/(Decrease) in cash in the year
Reconciliation of net cash flow to movement in net debt
21
Increase/(Decrease) in cash in the year
Net debt at 1 April 2016
Net debt at 31 March 2017		 2017
£
)
(13,059
2,793
-
7,032
34,552
2,197
33,515
)
(2,793
)
(5,946
24,776
24,776
)
(54,859
)
(30,083		 2016
£
)
(882
2,061
)
(11
6,137
)
(12,846
)
(14,864
)
(20,405
)
(2,050
)
(2,948
)
(25,403
)
(25,403
)
(29,456
)
(54,859

Page 9

Rosemount & District Welfare Rights Group

Notes to financial statements for the year ended 31 March 2017

1. Accounting policies

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and the preceding year.

1.1. Basis of accounting

The financial statements are prepared under the historical cost convention and in accordance with 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 2015)- (Charities SORP (FRS102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Charities Act (Northern Ireland) 1964 and the Charities Act (Northern Ireland) 2008.

Reconciliation with previous Generally Accepted Accounting Practice

In preparing the accounts, the trustees have considered whether in applying the accounting policies required by FRS 102 and the Charities SORP FRS 102 the restatement of comparatives was required. the trustees consider no restatement of the comparatives was required.

1.2. Income

All incomes are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of financial activities when receivable. Grants where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.

Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included.

Gifts donated for resale are included as income within activities for generating funds when they are sold.

Grants, including grants for the purchase of fixed assets, are recognised in full in the statement of financial activities in the year in which they are receivable.

Income from investments is included in the year in which it is receivable.

1.3. Expenditure

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.

Costs of generating funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes including the charity's shop.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Page 10

Rosemount & District Welfare Rights Group

Notes to financial statements

for the year ended 31 March 2017

1.4. Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:

1.5. Leasing

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

1.6. Defined contribution pension schemes

The pension costs charged in the financial statements represent the contribution payable by the charity during the year.

2. Donations and legacies

Unrestricted
Restricted
funds
funds
£
£
Donations
9,400
-
DSD grants receivable
-
85,985
DSD grants - fitness factory
-
37,292
Derry City & Strabane District Council grants
-
15,481
Outer West - City of Culture grants
-
-
International Committee of Red Cross grant
-
-
Big Lottery - Time 2 Choose grants
-
106,997
WELB grants receivable
-
815
National Lottery - Awards for All grant
-
8,250
BBC Children in need grants
-
30,895
Other grants receivable
-
2,415
IFICN - Time 2 Choose grants
-
94,964
DEL grants - fitness factory
-
4,350
NIHE wages grant - fitness factory
-
2,334
9,400
389,778
Other trading activities
Unrestricted
funds
£
Fundraising events
5,775
Placement income
-
Fitness factory income
23,968
29,743		 2017 Unrestricted Restricted
Total
funds
funds
£
£
£
9,400
3,910
-
85,985
-
89,965
37,292
-
30,700
15,481
-
22,384
-
-
4,500
-
-
9,032
106,997
-
163,522
815
-
1,825
8,250
-
-
30,895
-
39,000
2,415
-
2,560
94,964
-
102,111
4,350
-
-
2,334
-
-
399,178
3,910
465,599
2017 Unrestricted
2016
Total
funds
Total
£
£
£
5,775
9,074
9,074
-
818
818
23,968
-
-
29,743
29,743
9,892		 2016
Total
£
3,910
89,965
30,700
22,384
4,500
9,032
163,522
1,825
-
39,000
2,560
102,111
-
-
469,509

3. Other trading activities

Page 11

Rosemount & District Welfare Rights Group

Notes to financial statements for the year ended 31 March 2017

4. Investment income

Bank interest receivable 2017
Total
£
-
-		 2016
Total
£
11
11

5. Other income

Unrestricted
funds
£
Other income
7,299
Rental income
8,390
HMRC employment allowance
3,000
18,689		 2017
Unrestricted
Total
funds
£
£
7,299
2,782
8,390
7,340
3,000
4,000
18,689
14,122		 2016
Total
£
2,782
7,340
4,000
14,122

6. Employees

Employment costs
Wages and salaries
Social security costs
Pension costs		 2017
£
242,534
15,192
139
257,865		 2016
£
244,221
15,205
-
259,426

No employee received emoluments of more than £60,000 (2016 : None).

Number of employees

The average monthly numbers of employees (including the management committee) during the year, calculated on the basis of full time equivalents, was as follows:


Management and Administration Staff - Salaried
Management Committee - Voluntary		 2017
Number

17
13
30		 2016
Number
18
12
30

Page 12

Rosemount & District Welfare Rights Group

Notes to financial statements for the year ended 31 March 2017

7. Trustees' emoluments

The management committee are all voluntary and do not receive any remuneration or expenses in connection with their role on the committee. Mr Hugh Brady resigned as a member of the management committee in 2013 well before he became employed by the charity in late 2013. His employment position and wages relating to his employment have nothing to do with his former role as a member of the management committee. Payments received by Mr Brady during the year are detailed in the related party note.

8. Pension costs

The company operates a defined contribution pension scheme in respect of the eligible employees who choose to join the scheme. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the company and was as follows:

2017
£
Pension charge
139
Long
Fixtures,
9.
Tangible fixed assets
leasehold fittings and
property
equipment
£
£
Cost
At 1 April 2016
23,525
86,306
Additions
-
5,946
At 31 March 2017
23,525
92,252
Depreciation
At 1 April 2016
7,920
69,814
Charge for the year
941
6,091
At 31 March 2017
8,861
75,905
Net book values
At 31 March 2017
14,664
16,347
At 31 March 2016
15,605
16,492		 2016
£
-
Total
£
109,831
5,946
115,777
77,734
7,032
84,766
31,011
32,097

10. Debtors

Trade debtors and grants receivable
Other debtors		 2017
£
37,056
3,106
40,162		 2016
£
71,332
3,382
74,714

Page 13

Rosemount & District Welfare Rights Group

Notes to financial statements for the year ended 31 March 2017

11.
Creditors: amounts falling due
within one year
Bank overdraft
Trade creditors
Other taxes and social security
Other creditors
Accruals and deferred income		 2017
£
47,369
6,730
2,923
12,158
23,710
92,890		 2016
£
73,595
2,008
3,251
327
37,738
116,919
12. Analysis of net assets between funds
Unrestricted Restricted Total
funds funds funds
£ £ £
Fund balances at 31 March 2017 as represented by:
Tangible fixed assets 28,703 2,309 31,012
Current assets 5,024 52,423 57,447
Current liabilities (46,041 ) (46,849 ) (92,890 )
(12,314 ) 7,883 (4,431 )
13. Unrestricted funds At At
1 April Incoming Outgoing 31 March
2016 resources resources 2017
£ £ £ £
Unrestricted Funds 1,891 57,832 )
(72,037		 )
(12,314

Purposes of unrestricted funds

Unrestricted funds are generated to assist with covering the operating and capital costs of the charity that are not funded.

Page 14

Rosemount & District Welfare Rights Group

Notes to financial statements for the year ended 31 March 2017

Restricted funds
DSD funded costs
Derry City & Strabane District Council funded costs
International Committee of the Red Cross
Big Lottery Funds
International Fund For Ireland
BBC Children In Need
NIHE funding
Other Funders		 At
At
1 April
Incoming
Outgoing
31 March
2016
resources
resources
2017
£
£
£
£
2,211
123,277
)
(120,144
5,344
130
15,481
)
(14,759
852
108
-
)
(107
1
3,554
115,247
)
(117,541
1,260
548
94,964
)
(95,234
278
-
30,895
)
(30,895
-
-
2,334
)
(2,334
-
186
7,580
)
(7,618
148
6,737
389,778
)
(388,632
7,883		 At
At
1 April
Incoming
Outgoing
31 March
2016
resources
resources
2017
£
£
£
£
2,211
123,277
)
(120,144
5,344
130
15,481
)
(14,759
852
108
-
)
(107
1
3,554
115,247
)
(117,541
1,260
548
94,964
)
(95,234
278
-
30,895
)
(30,895
-
-
2,334
)
(2,334
-
186
7,580
)
(7,618
148
6,737
389,778
)
(388,632
7,883
7,883

14. Restricted funds

Purposes of restricted funds

DSD funding is awarded to the charity in the form of grant aid to assist with covering the wages and running costs of the organisation. The accounts include core funding grant aid of £85,985 from DSD together with the related matching expenditure. The accounts also include separate funding of £32,292 relating torevenue costs and £5,000 of capital costs of the fitness factory project. As at 31 March 2017 current assets include DSD grants owed of £13,325.

Derry City & Strabane District Council provide funding to assist with costs associated with the welfare rights and other services and projects run by the charity. The March 2017 accounts include £14,543 of revenue cots grant aid and a further £ 938 of capital expenditure grant aid from Derry City & Strabane District Council together with the related matching expenditure. As at 31 March 2017 current assets include £5,798 of grants due from the council.

The International Committee of the Red Cross provided funding to assist with meeting the programme and operating costs of the charity. The March 2017 accounts include no grant income but expenditure includes £107 of depreciation relating to assets previously funded. As at 31 March 2016 this funding had finished and there are no deferred income balances remaining relating to this grant aid.

The Big Lottery Fund awarded three years funding to the Time 2 Choose project and this funding finished in early 2017. During the year the charity received £100,000 from the Big Lottery Fund and £106,997 of Big Lottery funding has been recognised as income in the March 2017. As this funding finished during the year there are no debtor or deferred income balances carried as at 31 March 2017. In addition the National lottery provided a further £ 8,250 of funding to the fitness factory project that was recognised during the year and matched against the related project revenue costs.

The International Fund for Ireland awarded funding for the Time 2 Choose No 2 project. During the year the charity received £87,446 from IFI inclusive of £9,750 of advances. During the year the charity repaid the opening advance balance of £27,038 of the IFI advances by way of set-off against grant claims submitted to IFI. The March 2017 accounts include IFI grant income of £94,964 together with the related matching expenditure. As at 31 March 2017 current assets include a IFI debtor of £12,908 in respect of grant claims submitted for the year while current liabilities include the balance of £9,750 relating to the IFI advance still outstanding and which is expected to be repaid by way of set off against claims in the next financial year accounts.

Page 15

Rosemount & District Welfare Rights Group

Notes to financial statements

for the year ended 31 March 2017

BBC Children in Need have provided grant aid funding to assist with covering the wages costs of three employees. The March 2017 accounts include £30,895 of grant aid recognised together with the related matching expenditure from the total funding of £33,629 that was received that year. As at 31 March 2017 current liabilities include deferred income of £2,733 that will be recognised in the next accounting period as the related expentiture is incurred.

During the year NIHE awarded £10,000 of funding to cover wages costs of 1 employee in the fitness factory. The accounts include £ 2,334 of that income and the related matching expenditure. As at 31 March 2017 current liabilities include a deferred income balance of £7,666 relating to thisfunding that will be recognised in the next accounting period as the matching wages costs are incurred.

Various other funders provide funding to the charity to assist with meeting operating costs.

15. Contingent liabilities

Grants received by the charity could be refundable in the event that the terms and conditions for receiving the monies as laid down in the letters of offer are not complied with.

16. Transactions with the management committee

Donations for the March 2017 year include a contribution of £4,000 received from Jackie O'Reilly, a member of the management committee and who was appointed treasurer on 29 May 2017. There were no other transactions with members of the management committee during the year.

17. Related party transactions

1) Hugh Brady, a former member of the voluntary management committee, was on the payroll during the year working on the Time 2 Choose programme with his wages costs of £8,617 including ER NIC fully funded through the Big Lottery. This employment is project based and not linked to his former voluntary role on the magagement committee, which was resigned from in 2013. In addition Mr Brady also received volunteer expenses of £750 during the year separately from his employment income. The wages and volunteer expenses paid to Mr Brady are not related to his former role as a member of the management committee.

18. Controlling interest

The charity is controlled collectively by the management committee.

19. Post balance sheet events

1) Some of the funders have carried out their own respective reviews on the functioning of the projects for which they agreed to provide funding and there were no adverse findings resulting from those checks. The existing funders continue to fund their respective projects into the 2017-2018 year and that grant aid together with the related matching expenditure will be reflected in subsequent accounting periods.

Page 16

Rosemount & District Welfare Rights Group

Notes to financial statements for the year ended 31 March 2017

20. Gross cash flows

Returns on investments and servicing of finance
Interest received
Interest paid
Capital expenditure
Payments to acquire tangible assets
Financing
Repayment of bank loan
Analysis of changes in net funds
Cash at bank and in hand
Overdrafts
Net funds		 Opening
balance
£
18,736
)
(73,595
)
(54,859
)
(54,859		 2017
£
-
)
(2,793
)
(2,793
)
(5,946
-
Cash
flows
£
)
(1,450
26,226
24,776
24,776		 2016
£
11
)
(2,061
)
(2,050
)
(2,948
)
(3,904
Closing
balance
£
17,286
)
(47,369
)
(30,083
)
(30,083

21. Analysis of changes in net funds

22. Going concern

As has been stated in the report of the management committee, grant aid funding from the Department for Communities, formerly DSD, is expected to be awarded to cover core wages for 3 staff and a portion of overheads for the next year up to 31 March 2018. The Time 2 Choose programme funding from Big Lottery Fund finished during the year, while the International Fund for Ireland funding finishes at the end of June 2017. The charity is currently in discussion with funders to see if new funding can be obtained for the programme. The financial assistance from the BBC Children in Need was also renewed in 2016 for a further 3 years and covers wages costs of 3 staff. The charity has reported a significant deficit in the year ended 31 March 2017 and the management committee are taking steps to generate new income streams to cover the 2017 year deficit. If the charity is unable to obtain new funding, reduce the level of unfunded expenditure and at the same time generate new significant sources of income it will be difficult for the charity to be able to continue as a going concern.The Management Committee are however confident that they will be able to address both the need for new funding and also significantly reduce the amount of unfunded costs. Based on the current funding offers and management committee's confidence that they will be able to secure new funding and reduce costs the accounts have been prepared on the basis that the charity will continue as a going concern. In the event that core funding was not renewed or new funding was not secured then the going-concern status of the charity would be called into doubt.

Page 17

Rosemount & District Welfare Rights Group

The following pages do not form part of the statutory accounts.

Rosemount & District Welfare Rights Group

Detailed statement of financial activities

For the year ended 31 March 2017

2017 2016
£ £ £ £
Incoming resources
Incoming resources from generating funds:
Donations and legacies
Donations 9,400 3,910
DSD grants receivable 85,985 89,965
DSD grants - fitness factory 37,292 30,700
Derry City & Strabane District Council grants 15,481 22,384
Outer West - City of Culture grants - 4,500
International Committee of Red Cross grant - 9,032
Big Lottery - Time 2 Choose grants 106,997 163,522
WELB grants receivable 815 1,825
National Lottery - Awards for All grant 8,250 -
BBC Children in need grants 30,895 39,000
Other grants receivable 2,415 2,560
IFICN - Time 2 Choose grants 94,964 102,111
DEL grants - fitness factory 4,350 -
NIHE wages grant - fitness factory 2,334 -
399,178 469,509
Other trading activities
Fundraising events 5,775 9,074
Placement income - 818
Fitness factory income 23,968 -
29,743 9,892
Investment income
Bank interest receivable - 11
- 11
Total incoming resources from generating funds 428,921 479,412
Other income
Other income 7,299 2,782
Rental income 8,390 7,340
HMRC employment allowance 3,000 4,000
18,689 14,122
Total incoming resources 447,610 493,534

Page 19

Rosemount & District Welfare Rights Group

Detailed statement of financial activities

For the year ended 31 March 2017

Resources expended
Costs of generating funds:
Wages and salaries
Employer's NIC
Grants - Staff - Pension costs
Operating Lease and Equipment Rental
Grants - Establishment - Rent
Establishment costs: Rates and Water
Establishment costs: Light and Heat
Establishment costs: Repairs and maintenance
Establishment costs: Insurance
Motor and Travel Costs
Accountancy Fees
Grants - Professional - Other
Telephone and Related Costs
Printing, stationery & computer consumables
Advertising and Promotion
Training and Courses
Depreciation Property
Depreciation Fixtures and Equipment
Activity expenditure
Projects and other direct costs
Project costs - Fitness factory
Volunteer Expenses
Total cost of generating voluntary income
Fundraising trading:
cost of goods sold and other costs
Total costs of generating funds		 242,534
15,192
139
364
38,130
1,511
15,943
2,581
4,772
5,497
3,490
-
5,210
1,684
1,265
-
941
6,091
96,983
9,805
4,494		 345,344
111,282
456,626
456,626		 244,221
15,205
-
1,957
42,250
525
14,829
694
5,215
7,202
3,340
35
5,051
2,860
352
1,821
941
5,196
123,363
4,451
11,814		 351,694
139,628
491,322
491,322

Page 20

Rosemount & District Welfare Rights Group

Detailed statement of financial activities

For the year ended 31 March 2017

2017 2017 2016 2016
£ £
Charitable activities
Governance costs
Activities undertaken directly
Miscellaneous office expenses 1,250 1,032
Interest & charges - Bank loans & overdraft 2,793 2,061
4,043 3,093
Total governance costs 4,043 3,093
Net incoming/(outgoing) resources for the year (13,059 ) (881 )

Page 21