COMPANY REGISTRATION NUMBER: N1020966 CHARITY REGISTRATION NUMBER: NIC102992 Disability Action {Nl) Employment & Training Company Limited by Guarantee Financial Statements 31 March 2023 Finegan Gibson Ltd Chartered accountants & statutory auditor Causeway Tower 9 James Street South Belfast BT2 8DN
Disability Action (Nl) Employment & Training Company Limited by Guarantee Financial Statements Year ended 31 March 2023 Page Trustees, annual report (incorporating the director's report) Independent auditor's report to the members ststement of financial activities (including income and expenditure account) 13 Statement of financial position 14 Statement of cash flows 15 Notes to the financial statements 16
Disability Action (Nl) Employment & Training Company Limited by Guarantee Trustees. Annual Report (Incorporating the Director's Report) Year ended 31 March 2023 The trustees. who are also the directors for the purposes of company law, present their report and the financi81 statements of the charity for the year ended 31 M8rch 2023. Reference and administrative detsils Registered charity name Disability Action (Nl) Employment & Training Charity registratlon number NIC102992 Company registration numbor N1020966 Prlnclpal office and regislered Portside Business Park office 189 Airport Road West Belfast BT3 9ED The trustees P Bray G Maguire M Marshall J Carberry Company secretary A Brown Auditor Finegan Gibson Ltd Chartered accountants & statutory auditor Causeway Tower 9 James Street South Belfast BT2 8DN
Disability Action {Nl) Employment & Training Company Limited by Guarantee Trustees. Annual Report (Incorporating the Director's Report) (continued) Year ended 31 March 2023 Structure, governance and management Disability Action INI) Employment & Training Is a company limited by guarantee and a wholly owned subsidiary of Disability Action (Nl }. Charftable Status Disability Action (Nll Employment & Training has registered its charitable ststus wtth the Charity Commission for Northern Ireland. Its Charity Number is NIC102992. Recruiting andAppolntlng Trustees The charity is govemed by up to three trustees select8d by its parent company Disability Action {Nl) and they are appoinled by the board of Disability Action INI) to confirm to the Memorandum and Articles of Association. Newly appointed trustees undergo an induction process and receive an inductton pack. When necessary, trustees are appointed to sub-committees which best match their skills and are supported by the r81evant senior staff member. The board meets quartely with sub-committees meeting on an ad hoo basis. The work of all sub-committees is presented to the board for its approval and the board refers issues to speciflc sub-committee5. Each sub-committee contalns at least one board member. Risk Management Statement The Board of Trustees conducts an ongoing review of the charity's operational risk management processes. This has been established in order to mitigate the major risks to which the charity is exposed. Significant internal risks to funding have led to the development of a strategic plan which allows for thè diversification of charitable activities. In addition, corporate risk is managed by ensuring that appropriate insurance cover is in place and adhering to rigorous internal financial controls.
Disability Action (Nl) Employment & Training Company Limited by Guarantee Trustees. Annual Report (Incorporating the Director's Report) (continued) Year ended 31 March 2023 Objectives and activities Disabiliiy Action's Strategic plan for 2022 26 sets out a vlsion of a truly Inclusive society where our missionls to SUPPOrt Human Rights for All. Our 5 key strategic principles are to •Advocate for human rights for all Change attitudes to enhance social inclusion and independence Support through skills and employment Educate to empower through training Be a sustainable organisation The charity manages the Employment Support Programme under contract with Ihe Department for Communities (Dfc). This programm8 SUPParts individuals with significant disabilities in employmenl. The charity represents people regardless of their disabllity.. whethar that is a physical. mental health, sensory, hidd8n or learning disability. Disability Action (Nl), our parent company. is a member of a number of neOrk organisations e.g NICVA and Children Nl and has strong relationships with the private sector e.g Northern Ireland Chamber of Commerce and Industry and public sector groupings e.g Equality Commission Benefit from all these neorkS is shared with the charity. strategic report The following sections for achievements and performance and financial review form the strategic report of the charity.
Disability Action (Nl) Employment & Training Company Limited by Guarantee Trustees, Annual Report (Incorporating the Dlrector's Report) (conllnuedj Year ended 31 March 2023 Achievemenls and performance Set against a backdrop of political instability, European funding ending and potential budget cuts the financial year to 31st March 2023 has been difficult. ESF funding ended and we were successfvl in a joint bid to the UKSPF to continue supporting disabled people into employment, which secured the job5 of Disability Action staff. The new DSS (disability speclalist support) contract under Dept for Economy's Skills for Work and Life programme has been building slowly with great results. Disability Action piloted a Mental Health Counselling programme through funding from the Community Foundation, giving disabled people direct access to counselling provision. This has proved very successful, and we will continue to develop mental health provision across all our contracts. Coming out of 2 years with COVID reslriclions has proved slow progress with both DATS (Disability Action Transport Scheme) and Mobility Centre assessment seeing slow increase in numbers. DATS received their first electric bus provided by the Dept for Infrastructure, which will be monitored for effectiveness Wlthin the service. February 2023 brought the end to our ONSIDE project. ONSIDE was a Gros5-border project funded by the European Union's INTERREG VA Programme and managed by th8 Special European Union Programm8 Body. Disability ActioN was lead partner. working alongside Independent Living Movement Ireland, the Northern Ireland Housing Executive and Supporting Communities. The 8thos of the projecl was to enable and empower disabled people to take control of their social connections and become active in their lorAI and online communities. 2500 people took part in the programme where we distributed 2410 tablets and 963 other pieces of equiprnent to assist with accessibility. 999/0 of participants said they would recommend ONSIDE to others. Financial review The charit$ only source of funding is from the Department of Communities in relation to its core services of Support in Employmént and Support in Training. The main categories of expenditure are direct staff costs, representing 27% of revenues (2022-41 Y.) and retention employees, representing 73Yo revenues (2022-55 % ). The Northern Ireland Charities Pension Scheme INICPS) is a multi-employer final salary scheme which was closed in 2009. Ther8 ar8 currently 444 scheme members and 11 actively participating scheme employers. The overall 5cherne deficit identified by the September 2022 actuarial valuation was £3.2mil. The CharItS share of the final salary deficit liability is reflected on the Statement of Financial Position under the FRS102 accounting standard. The charity's liability as at 31 March 2023 was £143,164 based on the 2022 acturial valuation r85uIts and a deficit recovery period of 8 years from l August 2020 to 29 February 2028. Plans for future periods The charity'5 will continue lo work towards its corporate objectives in order to create a fully inclusive society for disabled people throughout Northern Ireland. The renewal of th8 Employrnent Support Programme Gontract ha5 been exlended to March 2023.
Disability Action {Nl) Employment & Training Company Limited by Guarantee Trustees. Annual Report {Incorporating the Director's Report) (eontinuedj Year ended 31 March 2023 Trustees, responsibilities statement The trustees, who are also directors for the purposes of cornpany law, ar6 responsible for preparing the trustees. report and the financial statements in accordance with applicable law and United Kingdom Accounting Slandards (United Kingdom Generally Accepted Accounting Practice). Company law requires thè charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable cornpany and the incorning resources and application of resources, including the income and expenditu, for that period. 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 applicable Charities SORP: make judgments and accounting 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.. prepare the financial statements on the going concern basis unless it is inappropriate to pr8sume that the charity will continue in business. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transaclions and 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 Companies Act 2006. They ar2 also responsible for safeguarding th8 assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor Each of the persons who is a trustee at the date of approval of this report confirm5 that: so far as they are aware. there Is no relevant audit information of which the charity's auditor is unaware., and they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charily's auditor is aware of that information.
Disability Action (Nl) Employment & Training Company Limited by Guarantee Trustees. Annual Report (Incorporating the Director's Report) (contlnuedj Year ended 31 March 2023 The trustees, annual report and the strategic report were approved on 27 March 2024 and signed on behalf of the board of trustees by- ouglc?S Trustee
Disability Action (Nl) Employment & Training Company Limited by Guarantee Independent Audltor's Report to the Members of Disability Action (Nl) Employment & Training Year ended 31 March 2023 Opinion We have audited the financial statements of Disability Action (Nll Employrnent & Training (the 'charlty') for the year ended 31 March 2023 which comprise the statement of financial activitie5 (including income and expenditure account), statement of financial position, statement of cash flows and the related notes. including a summary of significant accounting policies. The financial reporting framework thal has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 th8 State of the charity's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended,, have been properiy prepared in accordance with United Kingdom Generally Accepted Accounting Practice., have been prepared in accordance with the requirements of the Companies Aot 2006. Basis for opinion We conducted our audil in accordance with Intemational Standards on Audiling {UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the auditorfs responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant lo 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 havè obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relating to golng concern In auditing the financial statements, we have ¢on¢luded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed. we have not identffied any mal6rial uncertainties relating to events or conditions that. indimdually or collectively. may cast significant doubt on the charity's abillty to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Disability Action (Nl) Employment & Training Company Limited by Guarantee Independent Auditor's Report to the Members of Disability Action (Nl> Employment & Training (continued) Year ended 31 March 2023 Other information The other information comprises the information included in the annual repart, other than the financial statements and our auditor'5 report thereon. The trustees are responsible for th8 Other informalion. Our opinion on the financial statements does not cover the other information and. except to the extent otherwise explicitly stated in our report, w@ do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, 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 Dbtained in 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 there is a material misstatement in the financial statements or a mat8rial rnisstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this olher information, we are required to report that fact. We have nothing to report in this regard, Opinions on other matters prescribed by the Companies Act 2006 In our opinion. based on the work undertaken In the course of the audit- the information given in the trustees. report for the financial year for which th8 financial statements are prepared is consistent with the financial statements- and the trustees. report has been prepared In accordance with applicable legal requirements. Matters on which we are required to report by exceptlon In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit. we have not idenltfied material misstatements in the trustees, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in aur opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches nol visited by us- or the financial statements are not in agreement wilh the accounting records and returns,. or certain disclosures of trustees, remuneration specified by law are not made. or we hav8 not receiv8d all the information and explanations we require for our audit.
Disability Action {Nl) Employment & Training Company Limited by Guarantee Independent Auditorfs Report to the Members of Disability Action (Nl) Employment & Training (¢onlinuedJ Year ended 31 March 2023 Responsibilities of trustees As explained more fully in the trustees. responsibilities statement, the trustees (who are also the directors for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that Ihey give a true and fair view, and for such intèrnal control as the trustees determine is necessary to enable the preparation of financial stalements 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 concem. disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations. or have no realistic altemative but to do so.
Disability Action (Nl) Employment & Training Company Limited by Guarantee Independent Auditor's Report to the Members of Disability Action {Nl) Employmenf & Training (continued) Year ended 31 March 2023 Auditor's responsibilities for the audit of the financial statements Our objeclives 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 auditor's report that includes our opinion.. Reasonable assurance is a high level of assurance, but is not a guaranlee that an audit conducted in accordance wilh ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error 8nd are considered material rf. individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users tsken 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. The extent to which our procedures are capable of detecting iegUlar1ties. including fraud is detailed below: In identifying and assessing risks of material misstatement in respect of irregularitie5, including fraud and non-compliance with laws and regulations, we considered the following: the nature of the industry and sector, control environment and business performance induding the design of the remuneration policies, key drivers for directors. remuneration, bonus levels and performance targets" resu5t5 of our enquiries of management about their own identification and assessment of the risks of irregularities-, any matters we identified having obtained and reviewed documentation of their policies and procedures relating to.. identifying, evaluating and complying with laws and regulations and whether rnanagemenl were aware of any instances of non-compliance- detecting and responding to the risks of fraud and whether management have knowledge of any actual, suspected or alleged fraud; the internal contro15 eslablished to mitigate risks of fraud or non-compliance with laws and regulations. the matters discussed among the audit engagement team including significant component audit teams and relevant internal specialists. including tsx and valuations specialists regarding how and where fraLtd Might occur in the financial stalements and any potential indicators of fraud. As a result of these procedures, we considered the opportunitie5 and incentives that may exist wh1n the organisation for fraud and identified the greatest potential for fraud. In common with all audits under ISAS IUKI. we are also required to perform specffic procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks in operation, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included ongoing compliance with the UK Companies Act and tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct èffect on the financial statements but compliance with which rnay be fundamental for their ability to operate or to avoid a material penalty. 10
Disability Action (Nl) Employment & Training Company Limited by Guarantee Independent Auditor's Report to the Members of Dlsability Action (Nl) Employment & Training (continuèd) Year ended 31 March 2023 As part of 8n audit in accordance with ISAS (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also.. Identify and assess the risks of material misststement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate lo provide a basis for our opinion. The risk of not detecting a material misstatement resulling from fraud is higher than for One resulting from error. as fraud may involve collusion, forgery, inlentional omissions. misrepresentations, or the override of internal control. Obtain an understandin9 of internal control relevant to the audit in order lo design audit procedures that are appropriate in the circumstance5, but not for the purposè of expressing an Opinion on the effectiveness of the intemal control. Evaluate the appropriateness of accounting policies used and Ihe reasonableness of accounting estimates and related disclosures made by the trustees. Conclude on the appropriateness of the trustees, use of the going concem basis of accounting and, based on the audit evidencg obtained. whether a material uncertainty exists related to events or conditions that May cast significant doubt on the charity's ability to continue as a going COnM. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However. future events or conditions may cause the charity to cease to continue as a going concem. Evaluate the overall presentation, structure and content of the financial statements. including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 11
Disability Action (Nl) Employment & Training Company Limited by Guarantee Independent Auditor's Report to the Members of Disability Action (Nl) Employment & Training (continuedj Year ended 31 March 2023 We communicate with those charged with govemance regarding. among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit U50 of our report This report is rnade solely to the charity's m8mbers, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might slate to the charity's members those matters we are required to stste to them in an auditols 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 charity and the charity's members as a body, for our audit work. for this report. or for the opinions we have formed. Paul Dolan (FCAI (Senior Statutory Auditor) For and on behalf of Finegan Gib50n Ltd Chartered accountsnts & slatutory auditor Causeway Tower 9 James Street South Belfast BT2 8DN 27 March 2024 12
Disability Action (Nl) Employment & Training Company Limited by Guarantee Statement of Financial Activities (including income and expenditure account) Year ended 31 March 2023 2023 Unrestricted funds Total fund5 Totsl funds 2022 Note Income and endowments Charltablg activities 615.159 615,159 790,138 Total income 615,159 615,159 790,138 Expenditure Expenditure on charitable activities Total expenditure 663.209 663,209 663,209 777.021 663,209 777.021 Nel lexpendlture)Ilncome and net movement in funds (48.0501 (48.050) 13,117 Reconciliation of funds Total funds brought fotward Total funds carried forward 1260,528) {260.528) (273.645) (308,578) (308,578) {260,528) The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes on pages 16 to 28 form part of th05e financial statements. 13
Disability Action (Nl) Employment & Training Company Limited by Guarantee Statement of Financial Position 31 March 2023 2023 2022 Note Current assets Debtors Cash at bank and in hand 12 29,242 202,496 231,738 41,495 144,824 186.319 Credltors: amounts falllng due within one year Net current liabilities 14 354.849 296.357 123,111 (123,111) {110,038) 110,038 Tolal assets less current Ilabilitles Credltors: amounts falllng due after more than one year 15 48,273 Provisions 17 137.194 <308,578) (260.5281 1SO,490 Net liabilities Funds of the charity Unrestricted funds (308.578) (260,528) (308.578) {260,5281 Total charity funds 20 These financial stat8ments were approved by the board of trustees and authoris8d for issue on 27 March 2024, and are signed on behalf of the board by: ouglas Trustee P Bray Trustee The notes on pago5 16 to 28 form part of these financial Statements. 14
Disability Action (Nl) Employment & Training Company Limited by Guarantee Statement of Cash Flows Year ended 31 March 2023 2023 2022 Note Cash flows from operating activities Net (expenditure)lincome (48,0501 13,117 Adjustments for Accrued income (19,948) 164.577) Changes in.. Trade and other debtors Trade and other creditors Provisions and employee benefits Cash generated from operations Net cash from operating activities 12,253 136,481 {13,296) 67.440 8.086 78.005 10,882 45,513 67,440 45.513 Cash flows from financing activities Proceeds from loans from group undertakings Net cash (used inllfrom financing activities {12.864) (12.864) 48,405 48,405 Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 54,576 144,824 93.918 5Q.906 13 199,400 144.824 The notes on pages 16 to 28 form part of the$0 financial statements. 15
Disability Action (Nl) Employment & Training Company Limited by Guarantee Notes to the Financial Statements Year ended 31 March 2023 General information The charity is a public benefit entity and a private company limited by guarantee, registered in Northern Ireland and a registered charity in England and Wales. The address of the registered office is Portside Business Park, 189 Airport Road West, Belfast, BT3 9ED. staternent of compliance These financial Statements have been prepared in compliance with FRS 102, The Financial Reporting Standard applicable in the UK and the Republic of Ireland,, Ihe Statement of Recommended Practice applicable to charities preparing their accounts in accordanc8 With the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) ICharit18S SORP (FRS 102)) and the Companies Act 2006. Accounting policias Basis of preparation The financial statements have been prepared on the historical cost basis, as modrfied by the revaluation of certain financial assets and liabilities and investment properties measur8d at fair value through income or expenditure. The financial sla18ments are prepared in stsrling, which is the functional currency of the entity. Gaing concern Disability Action (Nl) Employment & Training has significanl contractual commitments to the costs of paying for ils share of the Northern Ireland Charitie5 Pension Scheme's (NICPS) final salary pension scheme deficit. Note 18 to the financial statements provides detailed information on this pension scheme which was closed to new members in 2009. Disabilty Action INI) Employment & Training is currently making a fixed annual payment to meet its share of the deficit based on the latest (30th September 20221 scheme actuarial valuation. The liability for fulure payments rneasured at their present value is recognised as a liability in Ihe financial statements and the Statement of Financial Posits'on shows significant net liabilities as a result. The Trustees are confident that annual fixed targets are set to ensure that the organisation is able lo make these annual deficit payments and remain financially sustainable. Net liabilities on the Statement of Financial Position are £308,578. Liabilities include amounts owed to group undertakings of £119,694. The trustees are also tnjstees of Disability Action INI) and they verify the ongoing financial support of the controlling charity to Disabillty Action INI) Employment and Training. The Trustees Consider that Iher8 is na material uncertainty related to thes8 events or conditions and they therefore deem it appropriate to prepare financial statements on a going concern basis. 16
Disability Action (Nl) Employment & Training Company Limited by Guarantee Notes to the Flnancial Statements (contlnuedj Year ended 31 March 2023 Accounting policies (¢Dntinued) Judgements and key sources of estimation uncertainty The preparatian of the financial statements requires management to make judgemenls, estimates and assumptions that affect Ihe amounts reported. These estimates and judgements are continually r8viewed and are basèd on experience and other factors. including expectations of future events thal are beli8ved to be reasoriable under the circumstances. Significant Judgements The judgements (apart from those involving estimations) that management has madg in the process of applying the entity's accounting policies and that have the most significanl effect on the amounts recognised in the financial statements are as follows-. Management must choose an appropriate percentage rate for discounting future payments in order to value the pension liability disclosed in note 19. Key Sources of est5mation uncertainty Accounting estimates and assumptions a made concerning the future and by their nature will rarely equ81 the related actual outcome. The key assurnptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows= The valuation of the pension liability is based on discounling future contributions to fund the fund shortfall. Thoso contributions are based on current arrangements, but may be subject to change in the future. Fund accounting Unrestricted funds are available for use at the discretion of the trustees tts further any of the charity's purposes. Designated funds are unrestricted funds eamarked by the trustees for particular future project or commitment. Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal. and fall into one of two sub-classes: restricted income funds or èndowment funds. 17
Disability Action (Nl) Employment & Training Company Limited by Guarantee Notes to the Financial Statements fcontinuedj Year ended 31 March 2023 Accounting policies (continu8d) Incoming resources All incoming resources are included in the statement of financial activities when entitlement has passed to the charity. it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specrfic policies are applièd to particular categories of income= income from donations or grants is recognised when there is evidence of entitlement to the gift. receipt is probable and its amount can be measured reliably. legacy income is recognised when receipt is probable and entitlement is established. income from donated goods is measured al the fair value of thè goods unless this is impractical to measure Teliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers. income from contracts for the supply of seNices is recognised with the delivery of the contracted servic8. This is classified as unrestricted funds unless thare is a conlraclual requirement for it to be spent on a particular purpose and relumed if unspent. in which case it may be regarded as restricted. Resource5 expended Expenditure 15 recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the stalernent of financial activities to which it relates: expenditure on raising funds includes the costs of all fundraising activities. events, non-charitable trading activities. and the sale of donated goods. expenditure on charitable activities includes all cost5 incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the govemance of the charity apportioned to charitable activities. other expenditure includes all expenditure that is neither related to raislng fijnds for the charity nor part of its expenditure on charitable activities. All cost5 are allocated to expenditure categories reflecting the use of the resource. Dlrect cosls attributable to a single actlvity are allocated directly to that aclivity. Shared costs are apportioned beeen the activities they contribute to on a reasonable. ju5ti11able and consistent basis. Tangible assets Tangible assets are initially recorded at cost. and subsequ8ntly stated at cost less any accumulated depreciation and impaiment losses. Any tangible assets carried at valued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. 18
Disability Action (Nl) Employment & Training Company Limited by Guarantee Notes to the Financial Statements (contlnued) Year ended 31 March 2023 Accounting policies fcgnUnueLI) Tangible assets (continued) An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of ievaluation, is recognised in other recognised gains and losses. except to which it offsets any previous revaluation gain. in which case the loss is shown within other recognised gains and losses on the statement of financial activities. Depreciation Depreciation is ¢alculated 50 as to write off the cost or valuation of an asset. less its residual valu8, over tha useful economic life of that asset as follows.. Equipment 15% slraighl line Impairment of flxed asset5 A review for indicators of impairment is carried out at each reporting dale, with the recoverable amount being eslimated where such indicators exist. Where the carrying value exceeds the recoverable amount. the asset is impaired accordingly. Prior impairments are also reviewed for POS5ible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset. an estimate is rnade of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows Ihat largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill. the goodwill acquired in a business combination is. from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergie5 of the combination. irrespective of whether other asseis or liabilities of the charity are assigned to those units. Government grants Govemment grants are recognised at the fair value of the asset received or receivable. Grants are not recogni5ed until there is reasonable assurance that the charity will cotnply with Ihe conditions attaching to them and the grants will be received. Where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related condilions on the recipient. it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability. 19
Disability Action (Nl) Employment & Training Company Limited by Guarantee Notes to the Financial Statements (continuedj Year ended 31 March 2023 Accounting policies {contintsedJ Provisions Provisions are recognised when the enlity has an obligation at the reporting dale as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised a5 a liability in the statement of financial position and the amount of the provlsion as an expense. Provisions are initially measurèd at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of Ihe amoLJnt that would be required to settle the obligation. Any adjustrnenls to the amounts previously recognised are recognised in income or expenditure unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in the statement of financial activities in the period it arises, and is allocated to the appropriate expenditure heading. Financial instrumenls A financial asset or a financial Ilabllity is recognised only when the charity beGom8s a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs. Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. Debt instnjments are subsequently measured at amortised cost. Where investments in shares are publicly traded or their fair value can otherwise be Measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less irnpairment. Other financial instruments, including derivativ25, are initially recognised at fair value. unless payment for an asset is deferred beyond normal business temis or financed at a rate of interest that is not a market rate, in which case the asset is rneasured at the present value of the future payments discounted at a market rate of intergst for a similar debt instrument. Other financial instruments are subsequently measured at fair value. with any changes recognised in the statement of financial activities, with th8 exception of hedging instruments in a desi9nated hedging relationship. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence Df impairm8nt at the end of earh reporting date. If there is objertive evidence of irnpairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised. 20
Disability Action (Nl) Employment & Training Company Limited by Guarantee Notes to the Financial Statements feontinued) Year ended 31 March 2023 Accounting policies fcontinued) Financial Instrurnents (contlnued) For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are aither assessèd individually or grouped on tha basis of similar crgdit risk characteristlCS. Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in 8 carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. Defined contrlbution plans Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees r8nder the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises. Limited by guarantee Every member of Ihe charitable company undertakes to contribute to the assets of the charitable company, in the event of the same being wound up while it is a member. or within one year after it ceases to be a member. for payment of the debts and liabilities of the charitable company contracted before it ceases to be a member, and of the costs. charges and expenses of winding up. and for the adjustment of the rights of the contributories among themselves, such amount as May be required not exceeding £1. Charitable activities Unrestricted Total Funds Unrestricted Total Funds Funds 2023 Funds 2022 Training and employment agency grants Host employers Other income 524,371 84.564 6.224 524.371 84,564 6,224 633.631 156.507 633,631 156.507 615,159 615,159 790.138 790.138 21
Disability Action (Nl) Employment & Training Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2023 Expendilure on charitable activitie5 by fund type Unrestricted Total Fund5 Unrestricted Total Funds Funds 2023 Funds 2022 Ernployment and training Core Support costs 657.470 1.031 4.708 663,209 657.470 1.031 4,708 772,606 415 4,000 772.606 415 4,000 663,209 7fl,021 777,021 Expendlture on charitable activities by activity type Activities undertaken diredy Support costs Total funds 2023 Total fund 2022 Employment and training Core Governance costs 657.470 1,031 657,470 1.031 4,708 772,606 415 4.000 4.708 4,708 658.501 663.209 777,021 Auditors remuneratlon 2023 2022 Fees payable for th8 audit of the financial statements 4.200 4.000 staff costs The total staff costs and employee benefit5 for the reporting period are analysed as follows: 2023 2022 Wages and salaries Social security costs Employer contributions to pension plans 134,503 9,447 98.371 235,803 15.552 22,313 242,321 273,668 The average head count of employees during the year was 10 (2022- 16). No employee received employee benefits of mor8 than £60,000 during the year {2022.- Nil). 10. Trustee remuneration and expenses No trustee received any rernuneration or relmbursement of expenses from the charity during the year. 22
Disability Action (Nl) Employment & Training Company Limited by Guarantee Notes to the Flnancial Statements (continued) Year ended 31 March 2023 11. Tangible fixed assels Equipment Cost At 1 Aprll 2022 and 31 March 2023 Depreciation At 1 April 2022 and 31 March 2Q23 Carrylng arnount At 31 March 2023 18,921 18,921 At 31 March 2022 12. Dobtor5 2023 2022 Trade debtors 29,242 41,495 13. Cash and cash equlvalents Cash and cash equivalents comprise the following- 2023 2022 Cash at bank and in hand Bank overdrafts 202.496 13,096) 199,400 144,824 144.824 14. Creditors- amounts falling due within one year 2023 2022 Bank loans and overdrafts Trade creditors Amounts owed to group undertakings Accruals and deferred income Social security and other taxes Pension contributions due Other creditors TPT Pension- ST 3.096 123,194 119,694 48,166 7,327 807 91,974 132,558 65,098 5.576 1,104 47 52.565 354.849 296.357 15. Creditors: amount5 falllng due after more than one year 2023 2022 TPT Pension - LT 48.273 23
Disability Action (Nl) Employment & Training Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2023 16. Deferred income 2023 2022 At 1 April 2022 Arnount released to income Amount deferred in y8ar At 31 March 2023 8,679 (8,6791 11,695 20,204 (20.204) 8.679 11,695 8,679 17. Provlsions Pensions and similar obligations At 1 April 2022 Unwinding of diswunt Change in assumption other movements 150.490 5.942 (15,957) (3,281) 137,194 At 31 March 2023 24
Disability Action (Nl) Employment & Training Company Limited by Guarantee Notes to the Financial Statements (Gontlnuedj Year ended 31 March 2023 18. Pensions and other post retirement benefits The carnpany participates in the scheme, a multi-employer scheme which provides benefits to some 11 non-associated employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme. The scheme is subject to the fun(iing legislation outlined in the Pensions Act 2004 which came into force on 30 Dec8mber 2005. This, together with documents issued by the Pensions Regulator and Technical Acluarial Standards issued by the Financial Reporting Council, s8t out the framework for funding defined benefit occupational pension schemes in the UK. The scheme is classified as a 'last-man standing arrangement,. Therefore the company is potentially liable for other participating employers, obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme. A full actuarial valuation for the scheme was carried out at 30 September 2022. This valuation showed assets of £22.8m, liabilities of £26.Qm and a deficit of £3.2m. To elirninate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows.. From August 2020 to 29 February 2028-. £1,280,605 in total {payable monthly) Thè recovery plan contributions are allocated to each participating employer in line wlth their estimates share of the scheme liabilities. Where Ihe scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the d8ficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rat8 is recognised as a finance cost. PRESENT VALUE OF PROVISION 31 March 2023 31 March 2022 31 March 2021 Present value of provision 137.194 172,875 210.059 RECONCILIA TION OF OPENING AND CLOSING PROVISIONS Period ending Period ending 31 March 2023 31 March 2022 Provision at start of period Unwinding of the discount factor {interest expense) Deficit contribution paid Rerneasurements- impact of any changes In assumptions Provision at end of period 172,875 3.991 (31.425) (8.247) 137.194 210.059 1.951 (31.425) 17,7101 172.875 25
Disability Action (Nl) Employment & Training Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2023 INCOME AND EXPENDITURE IMPACT Period ending 31 March 2023 (£5) 3,991 18.247) Period ending 31 March 2022 {£s) 1,951 (7,710) Interest expense Remeasuremenls- irnpact ofany ¢hang8 in assumptions Contributions paid in respect of future service. Costs recognised in income and expenditure account 'includes defined contributlon schemes and future service contributions (i.e. exduding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes. To be completed by the company. ASSUMPTIONS 31 March 2023 °fi per annum 5.35 31 March 2022 Yo per annum 2.56 31 March 2021 /• per annum 1.01 Rats of discount The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions. 19. Government grants The amounts recognised in tha financial statem8rrts for government grants are as follows: 2023 2022 Recognised in creditors: Deferred government grants due within one year 8.679 20,204 20. Analysls of charitable funds Unrestricted funds At 31 March 202 At 1 April 2022 Income Expenditure General funds (260.5281 615,159 (663.209) (308,5781 At 31 March 202 At 1 Aprrl 2021 Income Expenditure General funds {273.645) 790.138 (777,021) (260,5281 26
Disability Action (Nl) Employment & Training Company Limited by Guarantee Notes to the Financial Statements {continu8d) Year ended 31 March 2023 21. Analysis of net assets between funds Unrestricted Total Funds Funds 2023 Current assets Creditors less than 1 year Creditors greater than 1 year Provisions 231.738 231.738 {354,849) (354,849) 148,273) 148,273) (137,194) 1137,194) 1308,578) 1308,578) Net liabllltles Unrestricted Total Funds Funds 2022 Current assets Creditors less than 1 year Creditors greater than 1 year Provisions 186.319 186.319 (296,357) {296,3571 (150,490) 1150,490) {260.528) 1260.528) Net liabilities 22. Analysis of changes in net debt At At 1 Apr 2022 Cash flows 31 Mar 2023 Cash at bank and in hand Bank overdrafts Debt due within one year 144.824 57,672 (3.096) 12,864 202.496 (3.096) (119,694) 79,706 (132,558) 12.266 67.440 27
Disability Action (Nl) Employment & Training Company Limited by Guarantee Notes to the Financial Statements fcontinved) Year ended 31 March 2023 23. Related parties With Disability Action (Nl) Relationship - Disability Action (Nll is deemed to be the charilab5e company's parent company. Nature of transactions during the year.. 2023 2022 Amount owed to related party at year end 69,578 82,442 Outstanding balances are unsecured and interest-free. With Disability Action Tradeable Services Limited Relationship Disability Aclion Tradeable Services Limited is a wholly owned subsidiary of Disability Action (Nll. Nature of transactions during the year: 2023 2022 Amount owed to related party at year end 50,116 50.116 Outstanding balances are unsecured and interest-free. The trustees of Disability Aclion (Nl) intend to offer ongoing financial support to Disability Action (Nl) Employment & Training, which is considered to be a subsidiary entity. The financial Statements of Disability AGtion (Nl) Employment & Training as at 31 March 2023 show net current liabilities of £123,111. non current liabilities of £48.273 and a pension provision of £137.194 resulting in total net liabilities of £308,578. 24. Ethlcal standards In common with many other entities of our size and nature. we use our auditors to assist with the preparation of the financial slaternents. 25. Taxatlon The Company is a registered charity, and as such is entitled to tax exemptions on income and profits in furtherance of the charity's primary objectives. 26. Contingencies A contingent liability exists lo repay grant5 and Trust monies received should certain conditions not be fulfilled by the charity. In the opinion of the Trustees. the terms of the Letters of Offers have been. or wlll be, complied with and no liability 15 expected. 31