COMPANY REGISTRATION NUMBER: N1020966 CHARITh REGISTRATION NUMBER: NIC102992 Disability Action (Nl) Employment & Training Company Limited by Guarantee Financial Statements 31 March 2024 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) (contlnuedj Year ended 31 March 2024 Structure, governance and management Disability Action (Nl) Employment & Training is a company limited by guarantee and a wholly owned subsidiary of Disability Action INI). Charitsble Status Disability Action (Nl) Employment & Training has registered its charitable status with the Charity Commission for Northem Ireland. Its Charity Number is NIC102992. Recmiting and Appointing Trustees The charity is govemed by up to three trustees selected by its parent company Disability Action INI) and they are appointed by the board of Disability Action (Nll to confirm to the Memorandum and Articles of Association. Newly appointed trustees undergo an induction process and receive an induction pack. When necessary. trustees are appointed to sub-committees which best match their skills and are supported by the relevant senior stsff member. The board meets quartely with sub-committees meeting on an ad hoc basis. The work of all sub-committees is presented to the board for its approval and the board refers issues to specific sub-committees. Each sub-committee contains at least one board member. Rlsk Management Statement The Board of Trustees conducts an ongoing review of the charity's operational risk management prosses. 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 the 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 Limitsd by Guarantee Trustees. Annual Report (Incorporating the Dlrector's Report) (contlnuedj Year ended 31 March 2024 Objectives and activities Disability Action's Strategic plan for 2022 26 sets out a vision of a truly inclusive society where our mission is to support Human Rights for All. Our 5 key strategic principles are to .AdvoGate 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 the Department for Communities {DfC). This programme supports individuals with significant disabilities in employment. The charity represents people regardless of their disability,. whether that is a physical, mental health. sensory, hidden or leaming disability. Disability Action (Nl), our parent company. is a member of a number of network organisations e.g NICVA and Children Nl and has strong relationships with the private sector e.g Northern Ireland Chamber of COmmee and Industry and publi¢ sector groupings e.g Equality Commission Benefit from all these networks is shared with the charity. strategic report The following sections for achievements and performance and financial review form the strategic report of the charity. Achievements and perforniance The Employment Support Scheme (ESSI is a legacy programme funded by Dfc. This programme will end when all participants are moved on. Disability Action continue to support 33 people in various organisation across Nl. Flnancial ravlew The charity's only source of funding is from the Department of Communities in relation to its core services of Support in Employment and Support in Training. The main categories of expenditure are direct staff cost5, representing 290h of revenues (2023-27%) and retention employees, representing 71,/0 revenues {2023-73¥0). Tlie Norllieiii Ir¥l<ind Charities Pension Scheme (NICPS) Is a multl-employer flnal salary scheme which was closed in 2009. There are currently 444 scheme members and 11 actively participaling scheme employers. The overall scheme deficit identified by the September 2022 actuarial valuation was £3.2mil. The charity's 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 2024 was £312,323 based on the 2022 acturial valuation results and a deficit recovery period of 8 years from 1 August 2020 to 29 February 2028.
Disability Action (Nl) Employment & Training Company Limited by Guarantee Trustees. Annual Report (Incorporating the Director's Report) (continued) Year ended 31 March 2024 Plans for future periods The Department of Communities are undertaking a viability review of ESS in 24125 Trustees, responsibilities statement The trustees. who are also directors for the purposes of company law, are responsible for preparing the trustees, report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice}. Company law requires the charity trustees to prepare financial statements for each year which give Irue and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, 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- makejudgments and accounting estimates that are reasonable and prudent stste whether applicable UK Accounting Standards have been ft)Ilowed, 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 presume that the charity will continue in busines5. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable aGGuracy at any time the financial position of the Gharity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor Each of the persons who is a trustee at the date of approval of this report confirms that: so far as they are aware, there is no relevant audit information of which the charity's auditor is Ull(4Wdlg, diid 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 charity's auditor is aware of that information.
Disability Action (Nl) Employment & Training Company Limited by Guarantse Trustees. Annual Report (Incorporating the Director's Report) fcontlnued) Year ended 31 March 2024 The trustees, annual report and the strategic report were approved on 12th December 2024 and signed on behalf of the board of trustees by.. M Douglas Trustee
Disability Action (Nl) Employment & Training Company Limited by Guarantee Independent Auditor's Report to the Members of Disability Action {Nl) Employment & Training Year ended 31 March 2024 Opinion We have audited the financial statements of Disability Action (Nll Employment & Training (the 'charity') for the year ended 31 March 2024 which comprise the statement of financial activities (including inGome 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 that has been applied in their preparation is applicable law and United Kingdom Accounting standards, including FRS 102 The Financial Reporting Stsndard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the ftnancial ststements-. give a true and fair view of the state of the Gharity's affairs as at 31 March 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended., have been properly prepared in accordan with United Kingdom Generally Accepted Accounting Practice., have been prepared in accordance with the requirements of the Companies Act 2006. Basi5 for opinlon We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS IUKI) and applicable law. Our responsibilities under those standards are fijrther described in the auditors responsibilities for the audit of the financial statements secb'on of our report We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'5 Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirement5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relating to going concem In auditing the financial statements, we have concluded 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 identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial ststements are authorised for issue. Our responsibilitie5 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 Auditorfs Report to the Members of Disability Action (Nl) Employment & Training {continuedJ Year ended 31 March 2024 Other infomiation The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information. Our opinion on the financial ststements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we 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 obtained 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 rnaterial misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information. we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companles 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 the financial statements are prepared is consistent with the financial ststements., and the trustees. report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by excèptlon In the light of the knowledge and understsnding of the charity and its environment obtained in the COLtrse of the audit, we have not identified 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 our opinion.. adequate accounting records have not been kept. or returns adequate for our audit have not been reiVed from branches not visited by us., or the financial ststements are not in agreement with the accounting records and retums,. or certain disclosures of trustees, remuneration specified by law are not made,. or we have not received all the information and explanations we require for our audit.
Disability Action (Nl) Employment & Training Company Limited by Guarantee Independent Auditor's Report to the Members of Disability Action (Nl) Employment & Training f¢ontinued) Year ended 31 March 2024 Responsibilities of trustees As explained more fully in the trustees. responsibilities ststernenc 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 they give a true and fair view, and for such intemal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement. whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
Disability Action (Nl) Employment & Training Company Limited by Guarantee Independent Auditor's Report to the Members of Disability Action (Nl) Employment & Training (continuèd) Year ended 31 March 2024 Auditor's responsibilitles for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arsse from fraud or error and are considered material if. individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above. to detect material misstatements in respèct of irregularities. including fraud. The extent to which our procedures a Capable of detecting irregularities, including fraud is detailed below. In identifying and assessing risks of material misstatement in respect of irregularities, 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 including the design of the remuneration policies, key drivers for directors, remuneration, bonus levels and performance targets., results 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 management 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 controls established 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 lax and valuations specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud. In common with all audits under ISAS (UK), we are also required to perform speGific proGedures 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 ststements. 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 effect on the financial statements but compliance with which may be fundamental for their abilty to operate or to avoid a material penalty.
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 2024 As part of an 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 misstatement of the financial statements, whether due to fraud or error, design and perfomi audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the Gircumstans, but not for the purpose of expressing an opinion on the effectiveness of the internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. Conclude on the appropriateness of the trustees, use of the going concern basis of accounting and, based on the audit evidence 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 concern. If we Gonclude that a material uncertainty exists, we are required to draw attention in our auditorfs 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 concern. Evaluate the overall presentstion, Structure and content of the financial ststements, including the disclosures, and whether the f5nancial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance 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. 10
Disability Action (Nl) Employment & Training Company Limited by Guarantee Independent Auditor's Report to the Members of Disability Action (Nl) Employment & Training fcontlnued) Year ended 31 March 2024 As explained more fully in the Trustees, Responsibilities Statement (set out on page 4), the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing IUKI. Those standards require us to comply with the Financial Reporting Council's (FRC'S) Ethical Standard for Auditors,, in the circumstances set out in note 27 to the financial Statements. Use of our report This report is made solely to the charity's members, 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 state to the charity's member5 those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the 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 Gibson Ltd Chartered aGcountsnts & statutory auditor Causeway Tower 9 James Street South Belfast BT2 8DN 12th December 2024 11
Disability Action (Nl) Employment & Training Company Limited by Guarantee ststement of Financial Activities (including income and expenditure account) Year ended 31 March 2024 2024 Unrestricted funds Total funds Totsl funds 2023 Note Income and endowments Charitable activities Investment income 509,864 509,864 615.159 Total income 509,869 509,869 615,159 Expenditure Expenditure on charitable activities Total expenditure 648,898 648,898 663,209 648,898 648,898 663,209 Net expenditure and net movement In funds {139,029) (139,029) 148,050) Reconciliation of funds Total funds brought forward Total funds carried forward (308,678) {308,578) {260.5281 (447,607) (447,607) (308,578) The statement of fi'nancial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes on pages 15 to 27 form part of these financial statements. 12
Disability Action (Nl) Employment & Training Company Limited by Guarantee ststement of Financial Position 31 March 2024 2024 2023 Note Current assets Debtors Cash at bank and in hand 14 48,200 106,512 29,242 202,496 231,738 154,712 Creditors: amounts falling due within one year Net current liablllties 16 242,575 87,863 354,849 123,111 Total assets less current liabilities (87,863) (123,1111 Creditors.. amounts falling due after more than one year 17 47,421 48,273 Provisions 19 312,323 137,194 (447.6071 (308,578) Net liabilities Funds of the charity Unrestricted funds (447,607) (308,578) (447,607) (308.578) Total charlty funds 22 These financial statements were approved by the board of trustees and authorised for issue on 12th December 2024. and are signed on behalf of the board by- M Douglas Trustee P Bray Trustee The notss on pages 15 to 27 form part of these financial statements. 13
Disability Action {Nl) Employment & Training Company Limited by Guarantee Statement of Cash Flows Year ended 31 March 2024 2024 2023 Note Cash flows from operating activities Net expenditure 1139,0291 148,050) Adjustments for.. Other interest receivable and similar income Accrued income (51 (3,9281 {19,948) Changes in." Trade and other debtors Trade and other creditors Provisions and employee benefits Cash generated from operations {18,958) {99.465) 175,129 12,253 136.481 (13.296) 67,440 (86,2561 Interest received Net cash (used in)IfnJm operating activities (86,251) 67,440 Cash flows from flnancing actlvlties Proceeds from loans from group undertakings Net cash used in financing activities 16,637) {6,637) (12,8641 (12,864) Net {decrease)lincrease In cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year {92,888) 199,400 54,576 144.824 15 106,512 199,400 The notes on page5 15 to 27 form part of these financial ststements. 14
Disability Action (Nl) Employment & Training Company Limited by Guarantee Notes to the Financial Statements Year ended 31 March 2024 General infonnation The Charity is a public benefit entity and a private company limited by guarantee, registered in Northern Ireland and a registered charity in Northern Ireland. The address of the registered office is Portside Business Park, 189 Airport Road West, Belfast. BT3 9ED. Statement of compllance These financial ststements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland,, the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Report¢ng Standard applicable in the UK and Republic of Ireland {FRS 102) (Charities SORP (FRS 1021) and the Companies Act 2006. Accounting policies Basis of preparation The financial statements have been prepared on the historical cost basis, as modified by the revaluation of Certain financial assets and liabilities and investrnent properties measured at fair value through income or expenditure. The financial ststements are ppared in sterling, which is the functional currency of the entity. Going concern Disability Action (Nl} Employment & Training has significant contractual commitments to the ost5 of paying for its share of the Northern Ireland Char(ties Pension Scheme's (NICPSI 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. Disability Action (Nl) Employment & Training is currently making a fixed annual payment to meet its share of the deficit based on the latest (30th September 2022} scheme actuarial valuation. The liability for fvture payments measured at their present value is recognised as a liability in the financial statements and the Statement of Financial Position shows significant net liabilities as a result. The Trustees are confident that annual fixed targets are set to ensure that the organisation is able to 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 Irustee5 are also trustees of Disability Action (Nl) and they verify the ongoing financial support of the controlling charity to Disability Action (Nl) Employment and Training. The Trustees consider that there is no material uncertainty related to these events or Gonditions and they therefore deem it appropriate to prepare financial statements on a going concern basis. 15
Disability Action (Nl) Employment & Training Company Limited by Guarantee Notes to the Financial Statements (conunuedj Year ended 31 March 2024 Accounting policies (conllnugd) Judgements and key sources of estimatlon uncertainly The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant Judgements The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows-. Management must choose an appropriate percentsge rate for discounting future payments in order to value the pension liability disclosed in note 19. Key Sources of estimation uncertainty AOUntIng estimates and assumptions are made concerning the future and by their nature will rarely equal the related actual outGome_ The key assumptions 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 discounting future contributions to fund the fund shortfall. Those contributions are based on current arrangements, but may be subject to change in the future. Fund accountlng Unrestricted funds are available for use at the discretion of the trustees to 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 endowment funds. 16
Disability Action {Nl) Employment & Training Company Limited by Guarantee Notes to the Financial Statements (continuedj Year ended 31 March 2024 Accountlng policies fconunued) 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 wtth the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categortes of income.. income from donations or grants is recognised when there is evidencè 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 at the fair value of Ihe goods unless this is impractical to measure reliably, 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 services is recognised with the delivery of the conlracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted. Resources expended Expenditure is 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 statement 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 goo(ts. expenditure on charitable activities include5 all costs 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 governance of the charity apportioned to charitable activities. other expenditure includes all expenditure that is neither related to raising fund5 for the ¢.harity nnr part of its expenditure on charitable aclivities. All costs are allocated to expenditure ¢ategories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned beeen the activitie5 they contribute to on a reasonable, justifiable and con51Stent basis. Tanglble assets Tangible assets are initially recorded at Gost, and subsequently ststed at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued arnounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. 17
Disability Action (Nl) Employment & Training Company Limited by Guarantee Notes to the Financial Statements (conllnuedj Year ended 31 March 2024 Accounting policies (continuedj Tangible assets (continuEdJ 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 revaluation, 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 calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows: Equipment 15 /0 Straight line Impaimient of flxed assets A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount. the asset is impaired accordingly. Prior impairment5 are also reviewed for possible 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 made 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 that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a busines5 combination is. from the acquisition dale, alloGated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other asset5 or liabilities of the charity are assigned to those units. Government grants Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the charity will comply with the conditions attaching to them and the grants will be received. Where the grant does not impose specified future performance-related condttion5 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 conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. ere grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability. 18
Disability Action (Nl) Employment & Training Company Limited by Guarantee Notes to the Financial Statements (contlnued) Year ended 31 March 2024 Accounting pollcles fcontinuedj Provisions Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable Ihat the entity will be required to transfer economic benefits in settlement and the amount of the obligation Can be estimated re5iably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initialty measured 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 reftect the current best estimate of the amount that would be required to settle the obligation. Any adjustments 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. Financlal Instruments A financial asset or a financial liability is recognised only when the charity becomes 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 instruments are subsequently measured at amortised cost. Vvhere 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 impaimient. Other financial instruments, including derivatives, are initially recognised at fair value. unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate. in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. 011 Igi fiiiai ILidl li i¥li uiii¥iils dl ¥ èiubsv4ugiilly IllVdbUI ¥iJ èJL fdil Vdlu&, will i illly Ll Idlly¥S recognised in the statement of financial actsvities, with the exception of hedging instruments in a designated hedging relatsonship. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the stalernent of financial activities in which the initial gain was recognised. 19
Disability Action (Nl) Employment & Training Company Limited by Guarantee Notes to the Financial Statements (contlnued) Year ended 31 March 2024 Aceounting policies (continued) Financial instruments (contlnuedj For all equity instruments regardless of significan, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. Defined contrlbutlon plans Contributions to defined Contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid eontributions 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 render 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 the 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. Charltable activities Unrestricted Total Funds Unrestricted Total Funds Funds 2024 Funds 2023 Training and employment agency grants Host employers Other income 432,206 77.658 432.206 77,658 524,371 84,564 6,224 524,371 84,564 6,224 615,159 509,864 509.864 615,159 Investment income Unrestricted Total Funds Unrestricted Total Funds Funds 2024 Funds 2023 Bank interest receivable 20
Disability Action (Nl) Employment & Training Company Limited by Guarantee Notes to the Financial Statements fct)ntinued) Year ended 31 March 2024 Expenditure on charitable activities by fund type Unrestricted Total Funds Unrestricted Total Fund5 Funds 2024 Funds 2023 Employment and training Core Support costs 644,416 644,416 657,470 1,031 4,708 657,470 1,031 4,708 4,482 4,482 648,898 648,898 663,209 663,209 Expendlture on charitsble activities by actlvlty type Activities undertaken directly Support costs Total funds 2024 Total fund 2023 Employment and training Core Governance costs 644,416 644,416 657,470 1,031 4,708 4,482 4.482 4,482 644,416 648,898 663,209 Taxation The Company is a registered charity, and as such is entitled to tax exemptions on income and profits in furtherance of the charity's prtmary objectives. 10. Auditors remuneratlon 2024 2023 Fees payable for the audit of the financial statements 4,990 4,200 11. Staff costs The total staff costs and employee benefits for the reporting period are analysed as follows.. 2024 2023 Wages and salaries Social security costs Employer contributions to pension plans 116,837 6,913 186,764 134,503 9,447 98,371 310,514 242,321 The average head count of employees during the year wa5 8 {2023= 10). 21
Disability Action (Nl) Employment & Training Company Limited by Guarantee Notes to the Financial Statements (conllnued) Year ended 31 March 2024 11. Staff costs (¢onlinu8d) No employee received employee benefits of more than £60,000 during the year (2023.. Nill. 12. Trustee remuneration and expenses No trustee received any remuneration or reimbursement of expenses from the charity during the year. 13. Tangible fixed assets Equipment Cost At 1 April 2023 and 31 March 2024 Depreclation At 1 April 2023 and 31 March 2024 Carrylng amount At 31 March 2024 18,921 18,921 At 31 March 2023 14. Debtors 2024 2023 Trade debtors 48,200 29,242 15. Cash and cash equivalents Cash and cash equivalents comprise the following.. 2024 2023 Cash at bank and in hand Bank overdrafts 106,512 202.496 (3,096) 199.400 106,512 22
Disability Action (Nl) Employment & Training Company Limited by Guarantee Notes to the Financial Statements (contlnued) Year ended 31 March 2024 16. Creditors: amounls falllng due wlthln one year 2024 2023 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 3,096 123,194 119,694 48.166 7,327 807 52,565 58,303 113,057 37,212 20,131 672 13,200 242,575 354,849 17. Creditors: amounts falling due after more than one year 2024 2023 TPT Pension- LT 47,421 48,273 18. Deferred Income 2024 2023 At 1 April 2023 Amount released to income Amount deferred in year At 31 March 2024 11,695 (11,695) 4,669 4,669 8,679 {8,679) 11,695 11,695 19. Provlsions Penslons and slmilar obllgations At 1 April 2023 Remeasurements Deficit contributions paid At Jl March 2024 137.194 206,554 (31,4251 a12,J4J 23
Disability Action (Nl) Employment & Training Company Limited by Guarantee Notes to the Financial Statements (continued) Year ended 31 March 2024 20. Pensions and other post retlrement benefits The company 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 lo account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defi'ned contribution scheme. The scheme is subject lo the funding legislation outlined in the Pensions Act 2004 which carne into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reports'ng Council, set out the framework for funding defined benefit occupational pension scheme5 in the UK. The scheme is classified as a 'last-man standing arrangemeny. 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.Om and a deficit of £3.2m. To eliminate this funding shorttall, 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) The recovery plan contributions are allocated to each partrGipating employer in line with their estimates share of the scheme liabilities. Vvhere the 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 contribulions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost. PRESENT VALUE OF PROVISION 2024 2023 2022 Present value of provision 312,323 137,194 172,875 RECONCILIA TION OF OPENING AND CLOSING PROVISIONS 2024 2023 Provision at start of period Unwinding of the discount factor (interest expense) Deficit contribution paid Remeasurements - impact of any changes in assumptions Remeasurements - amendments to the contribution schedule Provision at end of period 137,194 6,266 (31,425) 7,612 192,676 312,323 172,875 3,991 {31,4251 (8,247) 137.194 24
Disability Action (Nl) Employment & Training Company Limited by Guarantee Notes to the Financial Ststements (continuedj Year ended 31 March 2024 INCOME AND EXPENDifuRE IMPACT 2024 2023 Interest expense Remeasurements- impact of any change in assumptions Remeasurements - amendments to the contribution schedule Contributions paid in respect of future service" Costs recognised in income and expenditure account 6,266 7,612 192.676 3,991 (8,247) "includes defined contribution schemes and future Servi contributions {i.e. excluding any deficit reduolion payments) to defined benefit schemes which are treated as defined contribution schemes. To be completed by the company. ASSUMPTIONS 2024 2023 2022 Rate of discount The discount rate5 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. 21. Government grants The amounts recognised in the financial statements for government grants are as follows-. 2024 2023 Recognised in creditors= Deferred government grants due within one year 11,695 8,679 22. Analysls of charltsble funds Unrestrlcted funds At 31 March 202 At 1 April 2023 InGome Expenditure General funds {308.578) 509,869 (648,898) (447,607) At 31 March 202 At 1 April 2022 Income Expenditure General funds (260,528) 615,159 {663,209) (308,578) 25
Disability Action (Nl) Employment & Training Company Limited by Guarantee Notes to the Financial Statements (conllnued) Year ended 31 March 2024 23. Analysis of net assets between funds Unrestricted Total Funds Funds 2024 Current assets Creditors less than 1 year Creditors greater than 1 year Provisions 154,712 154,712 {242,575) (242,575) {47,421) (47.421) (312.3231 (312,323) (447,607) 1447,607) Net liabilitles Unrestricted Totsl 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) {48,273) (137,194) (137,194) (308.578) (308,578) Net liabilities 24. Analysis of changes in net debt At At 1 Apr 2023 Cash flows 31 Mar 2024 Cash at bank and in hand Bank overdrafts Debt due within one year 202,496 (3,096) (119.694) 79,706 (95.984) 3,096 6,637 (86,251) 106,512 (113,057) (6,545) 25. Contlngencie5 A contingent liability exists to repay grants and Trust monies received should rtain conditions not be fulfilled by the charity. In the opinion of the Trustees, the terms of the Letters of Offers have been, or will be, complied with and no liability is expectsd. 26
Disability Action {Nl) Employment & Training Company Limited by Guarantee Notes to the Financial Statements l¢ontinued) Year ended 31 March 2024 26. Relatsd partios With Disability Action (NIJ Relationship- Disability Action (Nl) is deemed to be the charitable company's parent company. Nature of transactions during the year.. 2024 2023 Amount owed to related paty at year end 62,940 69,578 Outstanding balances are unsecured and interest-free. Wlth Disability Action Tradeable Servlces Llmlted Relationship - Disability Action Tradeable Services Limited is a wholly owned subsidiary of Disability Action (Nl). Nature of transactions during the year: 2024 2023 Amount owed to related paty at year end 50.116 50,116 Outstanding balances are unsecured and interest-free. The trustees of Disability Action (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 Action (Nl) Employment & Training as at 31 March 2024 show net current liabilities of £87.863 non current liabilities of £47.421 and a pension provision of £312.323 resulting in total net liabilities of £447,607. 27. Ethical standards In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statement5. 28. Taxation I he Lompany Is a regislered charity, and as such Is entitled to tax exemptions on Income and profits in furtherance of the charity's primary objectives. 27