East Belfast Enterprlse Ltd Trugtees. report and flnanclal statements for tha year •nded 31 December 2022 Company No: N1023055 Charlty No: XR 86644 CCNI No: NIC103061
East Belfast Enterprise Ltd Contents Page Contents Charlty Informatlon Trustees, report 3-15 Indep¢ndent Audltors, report 16-18 Ststement of Flnanclal Actlvltles 19 Balance sheet 20 Cash flow 21 Notes to the flnanclal statements 22-29
East Belfast Enterprlse Ltd Charlty Information for the year ended 31 December 2022 Trustee5 Duncan Graham (Chalr) William Miskimmin (Co. Secretary) Mervyn Hempton Joanne Jennlngs (reslgned 12 Aprll 2023) Nlcola Bothwell Gerry Gllpln Jacquellne Locke Graham Thompson (reslgned 21 January 2022) Jason Hempton (appolnted 12 Aprll 2023) Chalman Mr D Graham Secretary Mr W Mlsklmmln Chlef Executlve Offlcer Mr J MGqlpln Reglstered Offlce 68 - 72 Newtownards Road Belfast BT4 IGW Company Number N1023055 Charlty Number XR 86644 NIC103061 Audltors FPM Accountants Llmlted Unlt I, Bulldlng 10 Central Park, Mallusk Road Newtownabbeyi BT36 4FS Bankers Danske Bank Llmlted Donegall Square West Belfast BTI 6JS
East Belfast Enterprise Ltd Trustees. report for the year ended 31 December 2022 THE TRusfEES, AS DIRECTORS OF EAST BELFAST ENTERPRISE (EBE), PRESENT THEIR REPORT WITH THE FINANCIAL STATEMENTS OF THE CHARITY FOR THE YEAR ENDED 31 DECEMBER 2022 The trustees are pleased to present thelr annual directors, report together wlth the flnancial statements of the charlty for the year endlng 31 December 2022. whlch are also prepared to meet the requirements for a dlrertors, pOrt and accounts for Companles Act purposes. Chalr's Report By the close of 2021 operations had largely returned to a more norrnal pattem, following the economlc sh(Kk caused by the COVID pandemlc. Some aspects of the operatlon had stlll not fully recovered, wlth worklng patterns changed to a more hybrld working approach and le5S face-to-face meetlngs, resultlng In less use of the tralnlng and meetlng rooms at Clty East. The Board agreed the operatlng plan for 2022 at Its flr5t meetlng in January. Thi5 operatlng plan was to be the last plan to deliver the strategy that completed In December 2022 and hence part of the operatlng plan Involved work on a new strategy to be In place by the end of 2022 and to gulde operatlons for the perlod from 2023 to 2025. The plan for 2022 set out that the charlty would contlnue the work of recovery from COVID and focus on the 5U5talnablllty of the organ15atlon. The maln objectives were as follows: Core Bu$lneu Sustalnablllty Client relatlonshlp actlvltles wlll contlnue wlth KPIS in place focused on tenant retentlon and attracting new tenants for Foundry servlces, Indudlng meetlng room hire. The occupancy levels at Clty East and ABR wlll alm to retaln occupancy at c90% durlng 2022, achlevlng a mlnlmum average monthly Income of £36,000 combined per month for Clty East and ABR and achlevlng a break-even posltlon by the year end for the Foundry. Blds will be submitted to secure new programmes that can be delivered durlng autumn of 2022 and Into 2023, wlth the alm of achleving a net break-even posltlon for programmes by the year end. • Admlnlstratlon budgets wlll be closely monltored to ensure the budget Is not exceeded. • New sltes are to be Identlfled for potentlal property development. This can be progressed In partnershlp wlth Insplre Buslness Centre, subject to the outcome of potentlal merger negotlatlons. Achleve profltablllty targets as set out in the operating budget. Conduct stakeholder engagement and research as part of a plannlng pro$$ to establlsh a new strategy for 2023 2025. Promotlng Enterprlse and Enterprlse Cultur• Engage through Enterprlse Northern Ireland to develop proposals to work wlth the Department for the Economy, Invest NI and the Counclls to establish an enterprlse seNlce for start-up and early-stage buslnesses. • Research optlons to develop the Foundry Into a buslness "member5hlp club. Thls will include options to create a separately branded business SUPPOrt hub, wlth potential commercial partners. • Develop plans and commence implementatlon to establish EBE as a "carbon neutral. organisation. This will show leadership wlthln the buslness support settor and create opportunities to provlde support for SMES to move toward5 a carbon "net zero" p051tion. Deliver all contracted programmes and achleve programme targets Secure new programmes and prepare bids that can be targeted at Pea* funding and/or the UK Shared Prosperity Fund.
East Belfast Enterprise Ltd Trustees. report for the year ended 31 December 2022 Soclal Good Re-engage in charitable activity and encourage tenant engagement through events. • Continue to engage local suppllers In faclllties maintenants. • Deliver the Eastslde Awards to promote local endeavour In East Belfast. • RE-engage wlth schools and colleges as part of the stakeholder engagement to be carrled out during the strategic plannlng prosS. As well as achlevlng the dellvery objectives, the plan for 2022 also Included development of the strategy for 2023 2025, whlch Involved a survey of all tenants and programme 5ervlce users, consultatlons wlth key stakeholders Includlng the Board and Stsff and a number of Board and staff workshops. y the end of 2022 all key objectives had been reallsed wlth occupancy levels at Clty East startlng the year at c91010 and finishing the year at c91%, wlth small fluctuation5 dvring the year where occupancy hit a peak of Just over 92Vo and reduced durlng the summer months to c880h. The Albertbrldge Road slte started the year at c94Vo and Increased to IOOQ/o by Aprll, where It remalned at ioooh to the end of the year. A new programme named Renewal was secured and dellvered durlng the year, whlch asslsted those in the crlmlnal Justlce system to explore self-employment as an opportunity to re-engage In economlc actlvlty. This project was dellvered In partnership wlth NIACRO and contrlbuted to the Successful financlal programme perfomiance, exceeding the budget that had been set at the start of the year. Work contlnued durlng the year with Enterprlse Northem Ireland to dellver seNlces to cllents through the Go For It, Klckstart and Pathways to Enterprlse programmes and development work contlnued wlth Enterprlse Northern Ireland to develop plans post 8rexit. The flnal European Eramsu5+ project completed thls year wlth all targets met. March 2023 wlll see the end of m05t of the European fundlng as a result of the UK exlt from the EU and hence there wlll be no further opportunlty to secure Eramus+ contracts in forthcomlng years. A process of stakeholder con5ultatlon was completed during the year as part of the development of the new strategy for 2023 - 2025. Thls next perlod wlll be extremely challenging as the economy faces the challenges of the cost of Ilvlng and cost of dolng buslness crlses, the contlnued polltlcal vacuum wlth no functlonlng Executlve in Northern Ireland, the10ss of funding as a result of Brexlt, the ongolng economlc and political dlfflcultles assoclated wlth Implementatlon of the Wlndsor Framework and the ongoing war In Ukralne. All of thls will bring more pressure on household Incomes. Thls, In tum. could Increase the demand for those seeklng help to Investlgate self-employment as a way In whlch to brlng In revenue to meet these Increaslng household costs. The loss of EU fundlng and rlsks to tenancy {partlcularly those charltable organlsatlon5 which are tenants at Clty East and rely on EU fundlng) Is Ilkely to brlng downward pressure on revenue for EBE, but at a tlme that demand for support seNltrs from the market that EBE Is set up to serve Is Increa51ng. Loss in revenue for EBE may necessitate cost reductlons. whlch could result In a redurtlon in the staff team. However. this would result In a loss of expertlse and capacity to deliver services, whlch are Ilkely to be In Increased demand. The loss of EU funding brfngs about an opportunlty to look at new ways of dellvering Serv1$, such as developing services that could attract partners willing t0 5UPPOrt through sponsorship and for clients willing to pay for servltts, If value can be dernonstrated. EBE has a strong network and experience in partnership worklng. It has developed some sponsorshlp relationships with prlvate sector partners, but has never really pro-attively sought these sort of commercial partnershlps. The organisatlon has expertise in the start-up market, but ha5 been unable to deliver cllent centred Servi5, due to the restrictive nature of the "programme
East Belfast Enterprise Ltd Trustees. report for the year ended 31 December 2022 delivery" where the programme criteria are designed by the funding body. The property asset Is the engine that drives unrestrlcted revenue for the organlsation. Thls has subsldised much of the programme activity in recent years. Further expansion of the propertv asset would enable the organlsatlon to achleve a Qater level of freedom to deslgn and dellver client centred business advisory services. To do this will require capital funding and suitable property development opportunities with property development expertlse that Is not a strength of the current staff team and has not been a priorlty for the Board. There is an opportunlty to address thls through strateglc partnershlps and by brlnglng new members wlth thls speclfic expertise Into the Board. Membershlp of ENI Is a strength, but there Is a threat to ENI from the future loss of EU funded programmes. New opportunities may develop wlth new fundlng streams and It would seem senslble for EBE to remaln Involved In the ENI led development work to Secure new programme actSvlty. In addltlon, or In parallel to the work led by ENI, there Is an opportunlty for EBE to commlt some re50urce to Inve5tlgate the market for a market led buslness servlces offerlng, through a buslness dub initiatlve. Durlng 2022 and In response to thls analysls a three-year strategy has been agreed for 2023 2025 wlth the followlng guldlng statement5: Our Vlslon: "To establlsh East Belfast as a vlbrant soclal and economlc hub. Our Purpose: "To insplre and support entrepreneurs to establlsh and grow buslnesses In East Belfast and to have a positive social impact In the local community. Our Mlsslon: "To provide entrepreneurs wlth facllities and valued servlces, to meet thelr changlng economlc and soclal needs. To advance the strategy, focus wlll be on three strategic aims.. To be recognlsed as a centre for buslness start-up support To ensure organlsational sustalnablllty and to become financially independent from Government To enhance Corporate Governance Key projects to be advanced durtng the strategy have been agreed and are set out as follows: Alm I: To Be Recognlsed as a Centre for Buslness Start-up Support a. Projects: Buslness Club b. SMART Objectives for 2023: I. to cornplete costed feaslblllty study/appralsal by end of 2023. to launch 8uslness Club In 2024 Aim 2: To ensure organlsatlonal sustslnablllty and become flnanclally Independent from Government funding Projects: Business Club, Property Development, Net Zero, PR & Marketing b. SMART ObJectlves for 2023: I. by end of 2023 to identify services that can be 501d to the market, through a fully researched feasibility study into the business club concept II. By end of 2023 to have identified a short list of property development 5ite5 and fundlng option5 III. By end of 2023 to complete pricing and benchmarking of property Slte5 and develop sales and marketing plan IV. Install PV panels across all property sltes by end of 2023 Aim 3: To Enhance Corporate Govemance a. Projects: Board Membership and Roles, Board Committees, Documentation (Artlcles, Director Handbook. Policies)
East Belfast Enterprfse Ltd Trustees. report for the year ended 31 December 2022 b. SMART Objectives for 2023: I. to restructure, renew and refresh the Board and sub-commlttees by end of 2023; II. Update relevant documentation, pollcles, pmcedures by end of 2023 There were some changes In staff during 2022. a new business advisor was recruited to dellver the Renewal project and the CeptIonISt at City East left to take on a new role and was replaced by a new full-time receptionist. The advlsor recrulted for the Renewal programme left the organlsatlon On thls projert completed. Overall, the charlty has performed well throughout 2022 and I must glve credlt to the staff team for thelr dlllgent work and creativlty shown In dellverlng valued servlces for the community of East Belfast In very challenging circumstances. The flnancSal perfomiance was strong, provldlng a solld platform to commence dellvery of the new strategy In 2023 and face the challenges as the economy deals wlth the consequence5 of the UK exlt from the EU. I would Ilke to conclude my report by acknowledglng the support that I have recelved as Chalr from my colleagues on the Board, all of whom are volunteers and brlng conslderable expertlse and experlence to thelr governance of the charlty. I was saddened to accept the reslgnatlon of Graham Thompson and Joanne Jennlngs from the Board thls year, Graham and Joanne have been a great support whlle servlng on the Board, but, due to other work commltment5. they no longer felt able to commlt the tlme requlred to contlnue as members of the Board. On behalf of the Board E would Ilke to record my thanks to Graham and Joanne and wlsh them every succe55 In thelr future careers. On a happler note, I was delighted to welcome Jason Hempton to the Board thls year. Jason comes wlth a great deal of experlence and expertlse and I have no doubt wlll prove to be a great addltlon to the Board. As we look forward to 2023, we face a very uncertaln time, wlth many economlci polltlcal and social challenges to face, most signlflcant of whlch wlll be that resultlng from the loss of European fundlng as a result of the UK exlt from the EU. However, in the face of these challenges I remain optlmlstlc that we have got a strategy and a team, Incorporatlng both the Board and Staff, that wlll gulde us through these turbulent times and ensure we contlnue to be a posltlve economlc force in East Belfast. Duncan Graham Chalr Our Purpow and Artlvlt1•8 The Charfty's objects ("Objects') are speclflcally re5trlrted to the followlng: The promotlon for the publlc benefit of urban regeneration wlthin East Belfast and its environs (the 'area of benefit,) belng an area of soclal and economlc deprlvatlon, by all or any of the ft)Ilowlng mean5: {a) the relief of poverty in such ways as may be thought flt; Ibl the relief of unemployment In such ways as may be thought flt, Indudlng a5slstance to flnd employment; (c) the advancement of education. training or retraining, partlcularly among unemployed people, and providing unemployed people wlth work experlence; (d) the provision of financial assistance, technlcal aSsIstsn or bu5ine$5 advltr or consultancy in order to provlde tralnlng and employment opportunities for unemployed people in cases of financial or other charitable need through help: (l) In settlng up thelr own buslness, or {ii) to existing buslnesses; (e) the creatlon of tralning and employment opportunities by the provision of workspace, buildings, andlor land for use on favourable term5.
East Belfast Enterprise Ltd Trustees. report (contlnued) for the year ended 31 December 2022 Public Benefit The public benefits that flow from the advancement of communlty development and the promotlon of urban and rural development are: (l) the creatlon of employment, trdlnlng and work experlence opportunltles for residents Ilvlng in economically and socially deprived areas and consequently a reductlon In poverty, unemployment and hardship, leading to a better quality of Ilfe for the beneficiaries and consequent Improvements In health and well-belng; {11) enhanced knowledge about settlng up and runnlng small buslnesses and soclal enterprlses resultlng In Increased levels of sell-employment and better prosperts of sustalnable development. (1111 Increased levels of knowledge and transferable vocatlonal skllls among employees / work experlence tralnees, asslstlng In the creatlon of a more educated, skilled and quallfled communlty. (Iv) a greater sense among the benefldarles of rn0 fulfilled and purposeful Ilves, resuSting In a safer, more stable and coheslve communlty. These beneflts can be evldenced In records kept by various agencles of the number of Jobs and work experlence opportunltles created and the numbers of those who have succe55fully mmpleted tralnlng courses. Evldence can also be found In Independent evaluatlon5 of the artlvltles of enterprlse agencles carrled out by fundlng bodles and In communlty surveys of Ilvlng standard5 and attltudes. Some prlvate beneflt15 obtalned by the owners of small businesses who rent unlts on favourable terms, but thls Is anclllary to the maln purpose and Is greatly outwelghed by the galns In publlc benefit. No harm arfse5 from any of these purposes. Actlvltles East Belfast Enterprlse offers on favourable terms a varlety of workshop unlts at our slte on Albertbrfdge Road and Offl accommodatlon at the Clty East Buslness Centre. A varlety of meeting facllltles, tralnlng rooms and a Co-worklng space are avallable for hlre to both buslnesses and communlty and voluntary organlsatlons. A café, Urban Skullery, contlnues to operate on sitet providing an important catering faclllty on-site for tenants and vlsltors attendlng Clty East and has also provlded trainlng to those keen to learn cullnary skllls and take the flrst steps Into the employment opportunltie5 offered by the caterlng and hospitallty settor. Followlng the COVID pandemlc, as the charfty retumlng to more normal operatlons, the buslness support programme5 re-focused on pre-5tart and Start-up intervention5 and less on buslness survival, whlch had been an Important element of operatlons during COVID. Durlng 2022 there were a number of programmes whlch completed: Street Culture for Regions - This EU Erasmu5+ funded programme got underway In January 2021 and completed In December 2022. Thls was the last Erasmus+ funded programme that East Belfast Enterprlse will work on a5 this funding Source 15 no longer available due to the UK exit from the EU. The programme created resour5 to support those involved in 'street culture., Includlng mural artlsts, perfomiers, street vendors, muslclans and other artlsan activities to explore opportunities for 5elf-employment and involved a transnational partnershlp, led by EBE,
East Belfast Enterprise Ltd Trustees. report (Continued) for the year ended 31 December 2022 wlth partners from Denmark, Portugal, France, Poland, Greece and the Republic of Ireland. Renewal - This programme was funded by the UK Communlty Renewal Fund, a fund whlch was established and funded by the UK Exchequer as a pre-cursor to the UK Shared Prosperity Fund, whlch Is the UK response to the European Social Fund, which will be105t once the UK exits the EU. This project was developed in partnershlp wlth NIACRO, a voluntary organisation that works wlth those at risk of offending and those In the crlminal Justice system. Thls project was developed to provide tralnlng and guldance to partlcipants Interested in explorlng self-employment as a optlon to -engage in economlc actlvity. The projett was a 6 month project, whlch started and fin15hed durlng 2022. East Belfast AIR Story / Urban Villaoes - Fundlng for thls project Concluded In March 2022 and an agreement was reached wlth EaSIde Partnership through thelr 5ub51dlary Eastslde Tourlsm, to take ownership of the project to make use of Its assets, vlde05 and platform movlng forward. Thls ensures the work completed on the project wlll benefit and promote tourlsm wlthln East Belfast for many years to come. The only new programme that was added durlng 2022 was the Renewal programme, whlch started and completed during 2022. Fundlng cuts and, In partlcular the end of EU fundlng, whlch wlll complete In March 2023, ha5 resulted In a very dlfflcult fundlng envlronment and th15 Is expected to contlnue Into 2023. As well as those programmes that completed and others that started durlng the year, a number of programmes contlnued durlng 2022, whlch were carrled on from 2021. These were: Go for It Programme l LCCC (Councll) a programme that provides asslstance to entrepneUrS wlth asslstance to develop a buslness plan for thelr enterprise. Kick Start Programme / Invest NI & Belfast City Councll - A programme supported by Belfast city Councll as the 'follow-on' to Go For It for buslnesses antlcipatlng to recrult and employ wlthin the next 18 months. Each buslness approved onto the programme Is allocated a bank of mentorlng hours In spedflc subJects, bespoke to thelr buslne5s, on toplcs such as marketlng, flnance, legal, buslness development, IP and a bursary of up to £1,500 for the buslness. Pathway to Enterprise Programme (PEP) - Belfast Clty Councll Partlclpants on thSs programme are sUPPOrted wlth acce5S to buslness tralnlngs mentoring and a start-up grant wlth the target demographlc beSng those currently unemployed. Feel Good With Food / Urban Vlllages - Thls programme supports local resldents Sn the area to attend taster sesslons on how to Improve thelr dlet to enhance nutrltlon, combat allments and on an affordable budget. A¢hlgv•monts In 2022 At the start of the year It was recognised that 2022 and for the Immedlate years followlng wlll be very challenging due to the outworking of the pandemic. global economic pressure5 and the 1055 of EU fundlng. Thls focused attentlon on the Importance of the property asset and to maintain occupancy leve15. Thi5 was 5ucce55fully achieved throughout 2022 wlth occupancy targets achleved at Clty East and exceeded at the Albertbrldge Road 51te. Greater attention to prornotlon of facllltles through the Foundry co-worklng pace also resulted in an increase in revenue from hot-desklng and the sale of PO boxes and virtual Off1 products. Programmes are under severe funding pressure, but a notsble 5ucce5s was 5ecurlng fundlng from the UK Community Renewal Fund to dellver the Renewal programme. This programme helped cllents who have been Involved wlth the criminal just1 system and who are one of the most disadvantaged group5 when trying to re-enter the labour market. The projett provided training and gUIdan to explore the option of 5elf-employment as an opportunlty to re-engage In the
East Belfast Enterprlse Ltd Trustees. report (continued) for the year ended 31 December 2022 economy. The success of thls project and achievement of delivery targets across the other programmes has resulted In a strong financial performance agaln In 2022, exceeding budget targets for the year. The delivery of these programmes has enabled the charlty to contlnue to aSSlSt indlvlduals to explore enterprise and entrepreneurship* Wlth the aim of entering self-employment. thereby reduclng dependency on state benefits and consequently addresslng financlal hardshlp and the relief of poverty and unemployment. This year has been another busy year, but one In whlch fundlng for new programmes has been Increaslngly dlfflcult. Plans for 2023 recognise that thls wall contlnue to be the case, but the demand for the SeIce5 of those seekSng a551stance to look at self-employment as an optlon to re-engage in economic activity remalns stmng. A summary of some of the programme artlvity that was dellvered under contracts wlth a range of publlc funders Includlng Belfast Clty Councll, UK Communlty Renewal Fund, EU Erasmu5+, The Executlve offi and Urban Vlllages Is as follows: Go For It: 112 buslnes5 plans produced durlng 2022 AR Story: This project completed In the flrst quarter of 2022, after whlch the Intellectual property developed was passed to Eastside Tourlsm, a soclal enterprlse whlch operates as part of the Eastslde Partner5hlp, to develop the tourlsm produrt for East Belfast. Work on the proJect15 now dlsplayed on a dedlcated website at http://arbelfa5tstory.com Kl¢k Start: 35 Cllents recelved support durlng 2022, wlth 817 hours of mentorlng provlded, 4 flnanclal Incentives pald to cllents and 4 Job5 created. Pathways to Enterprlso Programme: 3 Cllents recelved support durlng 2022, wlth 100 hours of mentorlng provlded. Street Culture for Reqlons: Thls project was a pan-European partnershlp, led by East Belfast Enterprlse, wlth partners In Greece, Poland, Portugal, France, Denmark and the Republlc of Ereland. The project completed In December 2022 and crealed resources to as51st those involved In street culture to Investlgate entpneUrshlpIseIf-emp1OYMent as a vlable economlc opportunlty. Feel Good wlth Food: The programme supported by The Executlve Offlce through the Urban Vlllage Inltlatlve contlnued throughout 2022, provldlng on-line tralning and advlce about how to Improve health through nutrftion to people from Inner East Belfast. During the year the project worked wlth 4 local communlty organlsations, Orchardvllle, East Belfast Mlsslon, Sure Start and Flourlsh NI to make the sesslons avallable to thelr cllents, wlth an 'ln person. event held In East Belfast Mlsslon at the end of the year. Renewal.. Three clients Completed the programme, havlng recelved 70 hours of mentorlng. The ongolng challenges wlth operatlng durlng the pandemlc delayed work wlth the Board to progress the revlew of Board and Commlttee structu, membership and terms of reference, but this has now been prlorftlsed In the new strategyi whlch wlll commence In January 2023. Work on the development of a thlrd slte has contlnued wlth exploratory dlscussions with the Board of Insplre Buslness Centre, to Inve5tlgate optlons for a joint approach to property development. This work wlll contlnue a5 a core part of the strategy in 2023. Plans were also completed durlng 2022 to set out a programme of refurblshment and Improvement work5 at the Albertbrldge Road and Clty East sites, to be progressed durlng the 2023 to 2025 strategy. In relation to programme actlvlty, work has been ongoing with ENI, led by the CEO of East Belfast Enterprlse In his role as Chair of Enterprlse Northern Ireland. Thls work is seeking optlon5 to replace the Go For It, Kickstart and PEP programmes, once European funding finishes in March 2023. It is expected that work wlll be ongolng during 2023 to find replacement funding for these programme5 and hence the charlty has put in place additional research plans to Investlgate opportunitles to develop a business club and other potentlally stand alone programmes. Foundry Event$ As COVID restrictions eased, there was a gradual return during 2022 to °in per50n" events. An important part of the charity's strategy15 to Increase opportunities for tenant engagement and
East Belfast Enterprlse Ltd Trustee$. report (continued) for the year ended 31 December 2022 networking and so a number of events were hosted in the autumn of 2022. The events Included a networking breakfast, attended by 29 tenants in September, a social event based around the World Cup attended by 16 tenants In December and a tenant Chrlstmas event attended by 41 tenants. It Is planned to intrease the number of networklng events during 2023. Communlty Partner•hlps and Community Engagement EBE continued to engage wlth local community organlsatlons durlng Its tralning delivery Includlng the Orchardville Soclety, East Belfast Mlsslon, Sure Start and Flourlsh NT. The CEO also contlnued to art as a Dlrector on the Eastslde Partnershlp and Landmark East companles, whlch are Involved In communlty led regeneratSon In East Belfast. These Board roles are Important strateglc posltlons to ensure EBE remains connected to and Informed about local communlty plans and actlvltles In Ea5l Belfast. The charlty Is also a member of the Northern Ireland Councll for Voluntary Actlon, Soclal Enterprlse NE, C03 and Enterpr15e Northem Ireland, whlch enable5 Strateglc Ilnks to be made to other simllar organlsatlons operating across Northern Ireland. In 2021, the CEO took on the role of Chalr wlth Enterprlse Northem Ireland and will remaln In thls posltlon for three years, untll February 2024. The CEO served on the Board C03 durlng the year, glvlng further promlnence to EBE'S role within the broader thlrd sector. EBE contlnues to take the lead In organ151ng the Ea5tslde Awards to recognise endeavour from all walks of life across East Belfast. with the ea51ng of COVID re5trlctlon5, It Wa5 P0551ble to return to the pre-COVID format wlth a gala black-tie event held in AprS12022 at the Hastlng5 Stormont hotel. It was encouraging to agaln see a sell out event at the hotel, wlth over 300 In attendance, celebrating all that Is good about East Belfast and shlnlng a spotllght In partlcular on those that work tlrelessly and wlthout recognition for the communlty of East Belfast. A new project commenced in 2022 to engage wlth multlple communlty organlsatlons, schools, sports dubs and buslnesses to work on a communlty art project. The project wlll result In the Installatlon of two large mural artworks on the walls of the Clty East building and wlll actlvely involve those from across the communlty, Ilvlng in close proximlty to Clty East. Thls project wlll brSng prominence to the work of the charlty and wlll further embed the charlty wlthln the communlty fabrlc of East Belfast. Completion of th55 projertls experted In the autumn of 2023. Flnan¢l•l R•vl•w In accordance wlth requlred accountlng pollcy, grants are recognlsed In the statement of flnancial actlvltles when approved by the Trustees and communicated to the re¢iplents, Irrespectlve of the future perlod over which payments are to be made, and the obllgatlons outstandlng at the year end are recognlsed as credltors. In the year ended 2022 the Trustees are happy to report that the company exceeded Its budgeted plan5 and returned a surplus after depreoation for the year, despite budgetlng for an antlclpated loss. which had been forecast due to expected negatlve pressures on rental revenue as a result of antlcSpated reduced o¢cupan¢y following the COVID pandemic. Thls surplus has bullt on the surpluses generated In 2018, 2019, 2020 and 2021. Thi5 is in line with the plan5 that were set at the outset In the current strategy and establi5he5 a solid platform for the charity to face another challenging perlod, havlng set out Its new strategy for 2023 - 2025 to navlgate the turbulence expected as the UK economy navlgates its exit from the EU. At the end of 2022 the occupancy leve15 were retsined at both 5ite5 at pre-pandemic levels, with the Albertbridge Road slte reaching IOOO/o occupancy. In the new strategy for 2023 2025 retalnlng occupancy at these levels will be essential to ensure the charity is Sustainable and able to tske the opportunities that will present in the next perlod. 10
East Belfast Enterprise Ltd Trustees. report (continued) for the year ended 31 December 2022 Reserves Pollcy and Golng Concern A standing item on the Agenda for each Finance Committee meeting ensures that there is a revlew of the cash position each month and that the Reserves policy Is applied. This has continued throughout 2022 and there has been no concem raised by the committee. Cash reserves remaln at a level that the Board 15 comfortable with in relation to the ongoing needs of the charity. The Board of Trustees has approved a budget for 2023 and Is of the vlew that the charlly has no concerns regarding its continued status as a golng concern. Plans for Future Perlods The Trustees will continue to aim to preserve as far as posslble the capltal base of thelr Investrnents and to increase annual income leve15. Work will commence on the new strategy whith wlll focus on three key strateglc alms: l. To Be Recognised 35 a Centre for Buslness Start-up Support 2. To ensure organlsational sustalnablllty and to Become Financlally Independent from Govemment Fundlng 3. To Enhance Corporate Governance UnderpSnnlng thls strategy wlll be the need to maxlmlse revenue from the Charlty's asset base and hence there are plans In the flrst year of the strategy to fund capltal projects to renew and revlta115e the property assets and invest in new branding and promotlonal actlvlty. The 5trategv also pays attentlon to the charSty's envlronmental responslbllltles and plans are In place to reduce the carbon emisslons associated wlth the charlty's actlvltles, with a plan to move towards a carbon net zero posltlon. Plans In the year ahead wlll also see further work on Board Governance to clarlfy Board committee strurtures and mernbershlp, a5 well as ensurlng the skllls and expertlse acros5 the Board team are matched to the needs of the strategy. Reference and Admlnlstratlve Detalls Charlty Number: NIC103061 Company Number: N1023055 Reglstered Offlce: Clty East, 68 72 Newtownards Road, Belfast, 8T4 IGW Our Advl$ors.' Audltots: FPM Accountants Urnlted (Re-appolnted followlng a tenderlng process In 2018 for 3 year period with an optlon for a further 2 years) Sollcltors: Mccartan Turklngton Breen Bank.. Danske Bank Dlréctors and frustees The Directors of the Charltable Company (the Charity) are its Trustees for the purpose of Charlty Law. The Trustees and offlcers servlng durlng the year and slnce the year end were as follows: Key Manag•ment Personnel East Belfast Enterprlse: Trustees and Dlrectors Duncan Graham (Chalr) William Mlsklmmln (Co. Secretary) Mervyn Hempton Joanne Jennlngs {re5igned 12 April 2023) Nicola Bothwell Gerry Gllpin Jacquellne Locke Graham Thompson (resigned 21 January 2022) Jason Hempton (appolnted 12 April 2023)
East Belfast Enterprlse Ltd Trustees. report (contlnued) for the year ended 31 December 2022 Key Management Personnel East Belfast Enterprlse: Chlef Executlve Jonathan McAlpln Structure. Governance and Management Governlng Document East Belfast Enterprlse Is a Company Limited by Guaranteei govemed by a voluntary Board of Dlrectors. The company Is also a reglstered Charlty wlth the Charltles Commlsslon for Northern Ireland and submitted its flrst return to the Charltles Commlsslon Nl durlng 2017. Appolntment of Trustees As Set out In the Artlcles, Directors of the Company (who serve as Trustees of the Charlty for the purposes of Charlty Law) are elerted by the member5 of the companyi or can be co-opted by the Dlrectors. The maximum number of Dlrectors wlll be 12, wlth a mlnlmum of 3. Trustee Inductlon and Trnlnlng Incomlng Members of the Board of Dlrectors are aware of the alms and objectlves of the Charlty and the manner In which the Trustees cary out thelr responslbllltles. The Chalr, supported by the Chlef Executive, oversees an Inductlon process for new Dlrectors, who are provided with key documents, Includlng the Strateglc Plan and Artlcle5 of A55oclatlon of the company. An overvlew of the operatlons of the company Is provided by the Chlef Executlve and new Dlrectors are afforded the opportunlty to meet wlth key staff and vlew the key elements of the company's operations. Oryanlsatlon The Board of Trustees, whlch can have up to 12 member5, admlnlsters the Charlty. The Board meets mlnlmum of 5 tlmes per annum on a bl-monthly schedule. Standlng sub-commlttees of the Board Include a Flnance commlttee, which oversees the oryanlsatlons flnance, revlewlng management accounts and overseelng the company's rlsk policy. a Property sub-committee, which meets as required to oversee capltal projects and an HR Sub-commlttee, whlch meets a mlnlmum of once annually and as requlred to set remuneratlon and to revlew HR matters. The operations of the charlty are managed on a day-to-day basls by a Chlef Executlve, appolnted by the Board of Trustees. The Chlef Executlve has delegated authorlty, wSthln the terms of delegatlon approved by the Trustees, for operational matters Includlng. flnance, employment and HR. A management team has been appolnted by the CEO to provlde management overslght for key company funttions Includlng Programmes, Property & Tenancy and Flnance & Admlnlstratlon. These management posts report dlrertly to the CEO. Relate41 Partles and Co-operatlon wlth Other Oryanlsatlons During 2022, the Chief Exeojtlve contlnued In hi5 paid role wlth Enterprise Northern Ireland as the Chair of the Board of Directors of Enterprlse Northern Ireland. Thls appointment was approved at a Board meetlng of the Trustees of East Belfast Enterprise In January 2021 and the appolntment wlll be for a perlod of three years. All of the Trustees serve in a voluntary capaclty and do not recelve any remuneratlon for thelr role as a Dlrertor lor Trustee). Any related Interests are declared at meetlngs where the Interest may arlse and If any Trustee may benefit personally or in their business interests from a decision to be taken by the Board, the Trustee in question wlll be absented from the discussion and subsequent declslon maklng process. 12
East Belfast Enterprlse Ltd Trustees. report (continued) for the year ended 31 December 2022 The Company Is a member of Enterprlse Northern Ireland, whlch Is now under the Chalrmanshlp of the CEO of East Belfast Enterprise and benefits from this membership by accessing contracts as a sub-contracted partner. Other memberships held by the Charty are for the purposes of seeking advice, Infornalion or knowledge of the Community and Voluntary sector and potentlal funders for the work of the charity. These memberships Include membershlp of the Northem Ireland Council for Voluntary Actlon, C03 and Social Ent8rprlse Northem Ireland. The Chief Executive also serveg on the Board of Directors of C03 In a voluntary capacity, but there are no contractual relatlonships belween East Belfast Enterpr15e and CO3. Pay Pollcy for Senlor Staff The remuneratlon of the Chief Executlve and other members of senlor staff Is declded by the HR sub-commlttee, under delegated authorlty of the Board of Dlrectors. Rlsk Management The Tru5tee5 have a rlsk management strategyi whlch Is overseen on behalf of the Board by the Flnance Sub-commlttee, under the delegated authority of the Board. A rlsk gIster Is In place and thls 15 revlewed every month by the Nnance Sub-commlttee. Any rlsks that are Identlfled as Current rlsks Identlfled have categorised risks under those relatlng to Flnance, Property, Staff, Equlpment and Dats, Publlc Ilablllty and Professlonal Ilablllty, Polltlcal and those rlsks relatlng to the COVID 19 pandemlc. The register records procedures to mltlgate agalnst these rlsks both presently and In the future. As soclety flnally moves on from the COVID pandemlc, the charlty now turns to face the rlsks presentlng a5 a result of global economic shocks and the loss of EU Fundlng as a consequence of the UK exlt from the EU. A new strategy has been agreed to guide the organisation through thls next perlod, whlch Is expected to be a flnanclally dlfflcult perlod and one whlch wlll require extra vlgllance from Trustees. Trustee's Responslbllltlos In relatlon to the Flnan¢lal Statem•nt• Charlty law requlres the Trustees to prepare flnancial statements for each financlal year whlch glve true and falr vlew of the charlty's Incomlng resources and appllcatlon of resources durlng the year and of Its state of affalrs at the end of the year. In preparlng those flnanclal statements the Twstees are required to., • Select sultable accountlng pollcles and then apply them conslstently; • Make Judgements and estlmates that are reasonable and prudent; • State whether applicable accountlng standards and statements of recommended prartlce have been followed, subject to any materlal departures dlsclosed and explalned In the flnanclal ststements. • Prepare the flnanclal statement5 on the golng concern basls unless It Is Inapproprlate to presume that the charlty will continue in operation. The Trustees are responslble for ensuring the keeping of proper records which disclose with reasonable accuracy the financial position of the charity and enable them to ensure that the flnancial statements comply wlth the Companies Act 2006. They are also responsible for safeguarding the charity's assets and hence taklng reasonable steps for the preventlon and detection of fraud and breaches of law and regulations. 13
East Belfast Enterprise Ltd Trustees. report (contlnued) for the year ended 31 December 2022 statement of Disclosurn to our Auditors So far as each of the Dlrectors In offlce at the date of approval of these flnanclal statements are aware: •There Is no relevant audlt Infomiatlon of whlch the auditor's are unaware •They have tsken all the steps they ought to have taken as Dlrettors in order to make themselves aware of any relevant audlt Informatlon and to establlsh that the audltors are aware of that Inforniatlon. The trustees have overall responslblllty for ensurfng that the charlty has an approprlate system of Internal controls. flnanclal and otherwlse. They are also responslble for keeplng proper accountlng records whlch dlsclose wlth reasonable accuracy at any tlme the financial p051tlon of the charlty and to enable them to ensure that the financlal statements comply wlth the Companles Act 2006. They are also responslble for safeguardlng the assets of the charlty and hence for taklng reasonable steps for the prevention and detectlon of fraud and other Irregularltle5. Slgned on behalf of the tru•t••s 30th June 2023 Date Mr D Graham (Chalr) 14
Report of the Independent Audltors to the members of East Belfast Enterprise Ltd (a company limited by guarantee) Oplnlon We have audlted the financlal statements of East Belfast Enterprlse Ltd ft)r the year ended 31 December 2022 which comprises the Statement of Flnanclal Actlvlties, the Balance Sheet, the cash flow statement and the notes to the accounts, Indudlng a summary of slgnificant accountlng policles. The financial reporting framework that has been applied In their preparatlon 15 appllcable law and Unlted Klngdom Accountlng Standards, Indudlng Flnancial Reportlng Standard 102. The Hnancial Reportlng Standard appllcable In the UK and Republlc of I18 Iunlted Klngdom Generally Accepted Accountlng Prartice). In our oplnlon the accounts: glve a true and falr vlew of the state of the charitable company's affalrs as at year ended 31 December 2022 and of Its Incomlng resources and appllcatlon of resources, Includlng Its Income and expendlture, for the year then ended; have been properly prèpared accordance wlth Unlted Klngdom Generallv Accepted Accountlng Practlce; and have been prepared In accordance wlth the requlrements of the Companles Act 2006. 8asls for oplThlon We conducied our audit In attordan¢e wlth fntematlonal Standards on Audltlng (UK) {ISAs IUK}I and appllcable law. Our responslbllltles under those standard5 aré further descrlbed In the Audltor's responslbllltles for the audlt of the accounts sectlon of our report. We Independent of the charlty In a¢cordance wlth the ethlcal requlrements that are relevant to our audlt of the accounts In the UK, Includlng the FRC'S Ethlcal Standard, and we have fulfllled our other ethlcal responsSbllltles In accordance wlth these requlrements. We belleve that the audlt •vldence we have obtalned Is sufficlent and approprlate to provlde a bas15 for our oplnS0n. Conclu8lon• relatlng to golng conc•rn In audltlng the flnanclal statements, we have concluded that the trustees, use of the golng ttsncern basls of accountlng In the preparatlon of the flnancfial statements Is approplate. Based on the work we have performed, we have not Identlfied any rnaterlal uncertalntles relatlng to events or condltlons that, Indlvldually or collectlvely, may cast slgnlflcant doubt on the charfty's èblllty to contlnue as a golnq concem for a perlod of at least twelve months from when the flnandal statements are authorlsed for Issue. Our re5ponslbllltles and the responslbllltles of the trustees wlth respect to golno Concem are descrlbed In the relevant sertlons of this report. Other Informatlon The other Informatlon comprtses the Informatlon Induded In the annual report. other than the accounts and our audltorfs report thereon. The Trustees are responslble for the other Informatlon. Our opinion on the accounts does not cover the other informatlon and, except to the extent otherwlse expllcldy stated In our report, we do not expre55 any form of assurance concluslon thereon. 16
Report of the Independent Auditors to the members of East Belfast Enterprise Ltd (a company limited by guarantee) In connectlon with our audit tsf the accounts, our reSnSIbIlity is to read the other Inforniation and, in dolng so, conslder whether the other information is matertally Inconsistent with the attounts or our knowledge obtained In the audlt or otherwlse appears to be materfally mlsstated. If we identify such rnaterial inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other Informatlon. If, based on the work we have performet1, we conclude that there Is a materlal misstatement of this other Inlomatlon, we are requlred to report that fart. We have nothing to port In thls regard. Oplnlons on oth•r mJtt¢rs pM¥crlb•d by the Comp•nl•s Art 2006 In our oplnlon. based on the work undertaken In the course of our audlt: the Informatlon glven In the Trustees Report for the financ(al year for whlch the accounts are prepared Is ronslstent wlth the accounts. and the Trustees Report has been prepared In accordance wlth appllcable leoal requlrements. M•tt•r• on whlch w• ar• requlred to report by exceptlon In the light of the knowledge and understanding of the Trustees and its envlrtsnment obtained In the course of the audlt, we have nrt Itjentlfled materlal mlsstatements In the Trustees Report. We have nothlng to report In respect of the followlng matters In relatlon to whlch the Companles Act 2006 rtqulres us to report to you If, In our oplnlon: adequate accountlng records have not been kept, or retum5 adequate for our Judlt have not been recelved from branche5 not vlsSted by us; or the accounts are not In agreement wlth the accountlng record5 and retums: or rtaln dlsdosures of trustees, remuneratlon specJfted by law are not made,. or we have not received all the Informatlon and explanatlons we requlre for our audit. Rupon•lbllltle• of Tru•te•s As explalned more fully In the Statement of Trustees Responslbllltles, the Trustees are responslble for the preparatlon of the accounts and for belng satlsfled that they glve a true and falr vlew, and for such Internal control as the dlrectors determlne Is necessary to enable the preparatlon of accounts that are free from materlal m155tatement, whether due to fraud or error. In preparlng the accounts, the Trustees are responslblÈ for a55e551ng the tharlty'5 ablllty to continue as a golng concem, dlscloslngi as appllcable, matters related to golng concem and uslng the golng concem basls of accountlng unless the Trustees elther Intend to Ilquldate the company or to cease operatlons, or have no reallstlc alternative but to do so. Audltor'¥ re•pon•lbllltlu for th• audlt of th• flnandal #tat•m•nts Our objectlves arè to obtaln reasonable assurance about whether the accounts as a whole are free from materfal mlsstatement, whether due to fraud or error, and to Issue an audltols report that Includes our oplnlon. Reasonable assurance Is a hlgh lével of assurance, but 15 not a guarantee that an audlt conducted In accordance wlth ISA5 {LIK) wlll always detect a materlal mlsstaterneAt when It exlsts. Mlsstatements can arlse from traud or emr and are consldered materlal If, Indlvldually or In the aggregate, they could reasonably be experted to Influence th• ewnomlc declslons of users taken on the basls of these accounts. 17
Report of the Independent Audltors (contlnued) to the members of East Belfast Enterprise Ltd (a company limited by guarantee) Irregularltles, Including fraud, are Instances of non-compliance with laws and regulatlons. We deslgn procedures in Ilne wlth our responsibilities, outllned above, to detect material mlsstatements in respect of Irregularities, including fraud. The extent to whlch our procedures are capable of detectlng irregularities, Includlnq fraud, Is detalled below. We obtalned an understandlng of the legal and regulatory framework applicable to the company through enqulry of management, Industry research and the application of cumulatlve audlt knowledge. We identlfled the following princlpal laws and regulatlon5 relevant to the company Companles Act 2006 and the Flnanclal Reportlng Standard applicable in the UK and Republlc of Ireland {FRS 102). We developed an understandlng of the key fraud rlsks to the entlty (Includlng how fraud might occurl, the contro15 in place to help mltlgate those risks, and the accounts, balances and disclosures wlthln the financlal statements whlch may be Susceptible to management blas. Our understandlng was obtalned through revlew of the flnanclal statements for 51gnlflcant accountlng estlmates, analysls of journal entrles, walkthrough of the key controls cycles In place and enquiry of management. Our procedure5 to respond to those r15k5 Identlfled Included, but We not limlted to: Enquiry of management, those charged wlth governance and the entity's sollcltors around actual and potentlal Iltlgatlon and dalm5. Enqulry of management to Identlfy any instances of non-compllance wlth laws and regulations. Reviewlng mlnutes of meetlngs of those charged wlth govemance. Revlewlng flnanclal statement dlsdosures and testlng to supportlng documentatlon to assess compllance with appllcable laws and regulations. Audltlng the r15k of management overrlde of controls, Includlng through testlng Journal entries and other adjustments for approprfateness, and evaluatlng the buslness ratlonale of slgnlflcant transactlons outslde the norfflal course of buslness. A further descrfptlon of our responslbilitles for the audlt of the accounts Is located on the Financial Reportlng Councll's webslte at: http://www.frc.org.uk/audltorsresponsibllltles. Thls description forms part of our audltorfs report. Thls report Is made solely to the charitable company's members, as a body, In accordance wlth Chapter 3 of Part 16 of the Companles Act 2006 and regulatlons made under that Act. Our audlt work has been undertaken so that we mlght state to the charltable company's members those matters we are requlred to stste to them in an auditors. port and lor no other purpose, To the fullest extent permltted by law, we do not accept or assume respon5ibillty to anyone other than the charltable company and Its members as a body, for our audlt work, for thls report, or for the oplnlons we have formed. JL Grant (Senlor Statutory Auditor) for and on behalf of FPM ACCOUNTANTS LTD Chartered Accountants & Statutory Audltor Unlt I, Bulldlng 10 Centrnl Park Mallusk Co Antrim BT36 4FS Date 18
East Belfast Enterprise Ltd Statement of Financial Actlvltles (Incorporating an Income and Expenditure account) for the year ended 31 December 2022 2022 Total 2021 Total Notes Unrestricted Restrlcted Income and endowments from: Charltable Actlvltles 68,042 139,560 207,602 196,144 other Tradlng Activities 29,820 29,820 29,933 Investment Income 447,797 447,797 416,678 Other Income Totsl Income and Endowm•nt* 564,834 139,560 704,394 695.121 Expendltur• on: Ralsing Funds 84,381 2,114 86,495 56,411 Charltable Actlvitles io&ii 473 054 129 795 602 849 576 875 Total Expendlture 557,435 131,909 689,344 633,286 Net Income for the Year Transfers betreen funds Galn on revaluatlon of flxed assets 300,000 Net movement in funds 361 835 Reconclliation of Funds: Fund Balances Brought Forward 12 2,992,793 761,748 3,754,541 3,392,706 Fund 8alanc•s CBrrl•d Forward 12 3 000 192 769 399 3 769 591 3 754 541 All Income derlves from continulng actlvltles, therefore no statement of recognSsed galns or losses Is glven. The notes on pages 22 to 29 form an Integral part of these financial statements. 19
East Belfast Enterprise Ltd Balance Sheet as at 31 December 2022 Notes 2022 2021 Fixed assets Tangible Assets 3,720,448 3,732,298 Current assets Debtors Cash at bank & In hand 66,672 301 332 368,004 74,801 334 598 409,399 Cr•dltors: amounts falllng due withln one year 206,064 209,784 Net Currnnt A•sets 161,940 199,615 Total Jsgets le•s ¢urr•nt Ilabllltl•8 3,882,388 3,931,913 Cr•dltorn: amounts falllng due after more than one year 112,797 177,372 Net a•4•ts 3 769 591 3 754 541 Funds Unrestrlcted: Unr¢strlcted Programmes Fund Unr¢strlcted Property Fund UnrtrIcted Clty East Fund 12 12 12 (28,871) 2,942,359 86,704 {27,580) 2,824,395 195,978 Re$trl¢ted: Restrlcted Programmes Fund Restrlcted Clty East Capltal Fund 12 12 19,290 750,109 11,639 750,109 12 3 769 591 3 754 541 The flnanclal statements were approved by the Board and slgned on Its behalf: 3oufj ) u,TrJE 2013 Date Mr D Graham Dlrector Company No: N123055 The notes on page5 22 to 29 forni an integral part of these financial statements. 20
East Belfast Enterprise Ltd ststement of Cash Flows s at 31 December 2022 Not¢$ 2022 2021 Cash flow$ from 0ratIng a¢tlvities: Net cash provlded by / (used In) operating actlvlues Cash flows from investing artlvltles.. Purchase of propertyi plant and equlpment (5,034) (12,358) Net c••h provld•d by lumd In) Inv••tlng •¢tlvltl•• 034 Cash flows from rtnanclng artlvltles.. N•t c••h provld•d by (u••d In) flnandng artlvltl•• Change In ugh and ca•h equlvalent• In the reportlng perlod 31,313 41,486 C••h and cash aqufvalents at the baglnnlng ot the rnportlng porlod 16 92.598 51.112 C•sh and u*h •qulval•nt• at th• end of the reportlng perlod 16 123,911 92.598 21
East Belfast Enterprise Ltd Note$ to the Financial Statements for the year ended 31 December 2022 I. ACCOUNTING POLICIES The prlnclpal accounting policies adopted¢ judgements and key sources of estlmatlon uncertalnty In the preparatlon of the flnanclal ststements are a5 foll9ws'. al Ba515 of preparatlon The flnancl41 statements have been prepared In accordance wlth Accountlng and Reportlng by Charltles: ststement ol Recgmmended Practlce appllcable to charltles preDarfna thelr accounts In accordance wlth the Flnancial Reportinq Stsndard applicable In the UK and Republlc of Irèland IFRS 1021 (effettlve I January 20191- ICharltSes SORP IFRS 1021, the Hnanclal Reportlnq Standard appllcable In the UK and Republlc of Ireland IFRS 102) and the Companie5 Act 2006. East Belfast Enterprlse Ltd meets the deftnltlon of a publlc beneflt entltv under FRS 102. A55ets and Ilabllltles are Inltlally recoqnlsed at hlstorlcal cost or transactlon value unless otherwlse stated In the relevant accountbnq policv notelsl, bl pparatIOn of the accounts on a qolnq concem basls The Trustee5 are of the oplnion that the charlty Is a going concem. Rlsks to the charlty ère monltored on a monthlv ba51s throuqh the Nnance CommSttee of the 8oard and any rlsks deemed to be of concem brouqht to the full Board. Followlnq thls process DrovSdes Trustees wlth a level of confldence that rlsks arè approprlately manaqed and su5table m5tloatlon Is taken to mlnlmlse rlsks. The Trustees are mlndful that the maln rlsks facin¢ the Charitv are thosé posèd by thè loss of European fundlnq. A new strateov was approved by the Board at the end of 2023, whlch has as one of Its three core strateglc alms: "To ensure organlsatl¢nal sustalnablllty and To Become nancIallY InE1ependent from Government Fundlng.. Dellvery of thls strateglc plan commenced In 2023 wlth key targets Set to ensure there Is a focus on organ154tlonal 5UStalnablllty. Plans are In place to upgrade the propertv 5Ite5 and revlew prlclng, whSch wlll Include Increased recovery of energy costs, mltlgatlng risk to the organ5satlon frorn external energy cost press¢Jres. Slds are belng prepad In collaboratSon wlth Enterprlse Northern Ireland to secure ontract5 to replace those that wlll be105t due to the loss of European fundlngi wlth the funding belng sourced dlrertly from the UK Government Department for Levelllng Up, Houslng and Communltles through the UK Shared Prosperlty Fund. A budget has been prepared and approved by the Board lor 2023, whlch Is a break-even budget, acknowledglng the flnanclal pressures that the company wlll face thls year as It transltlons from progr¥mme revenue supported by European fundlng to new revenue sourced trom UK Exchequer funds and a new BusSness Club concept, whlch wlll sell servlces dlrectly to the market. Property Income targets have remalned conservatlve, based on 2022 actual results and slmllar occupancy levels belng achieved to those reallsed In 2022. Healthy cash reserve5 have been accumulated wlth the strong flnanclal performance of the charlty for the past four years and the budget set for 2023 wlll seek to protect these reserves. The Board has alsts ¢tsmmlttod to a full revléw of corporate Governancè, to ènsurè that the Board remalns flt for purpose and that Govèrnance strurtures, processes and procedure5 contlnue to follow bèst practlo and manage rlsks fadng the company. The Trustees wlll not be complacent as the charlty contlnues to navlgate an uncertaln p*rlod for the Northern Lreland economy, but belleve th)t appr¢prlate management and proce55e5 are In place to ensure actlon can be taken, should Tru5tee5 belleve that the vlablllty of the organlsatlon Is under threat. c) Fund Accountlng Unrestrlrted fund5 are fund5 whlch are avallable for use at the dlscretlon of the Tru5tee5 In furtherance of the general obJettlve5 of the Charlty and whlch have not been designated for other purposes. Restrfcted funds are funds whlch ère to be used In accordance wlth speclflc restrlctlons Imposed by donors or whlch have been ralsed by the Charlty for partlcular purposes. The cost of ralslng and admlnlstering such fund5 are charged agalnst the speclflc fund. The alrn and use of restricted funds Is set out In ihe notes to the flnancial Statements, Restrtcted fund5 may only be transferred to general or deslgnated funds once the crlterla for fystrictlon have been dlscharged or no longer apply. dl Income Intome Is recoqnised when the ¢harltv ha5 entitlement to the rent. funds, ènv performance condltlons attached to the Iternls) of Income have been met, It Is probable that the Income wlll be recelved and the amount can be measured rellably. Inctsme from oovernment and other orants, whether'capltal, orants or'revenue, qrants. Is recoqnlsed when the charitv has ents"tlement to the funds, anv performance conditions attached to the grants have been met, It Is probable that the Income wlll be reiVed and the amount can be measured lIablY and is not deferred. Income is deferred only when the charity has to lulfil corhditions before becoming entitled to it or where the donorlfunder ha5 Specified that the income 22
East Belfast Enterprlse Ltd Notes to the Flnanclal Statements for the year ended 31 December 2022 I. ACCOUNTING POLICIES ctd.. d ) Income ctd... Is to be expended In a ftjture perlod. el Donated servlces and fadlltoes In accordance with the Charftoes SORP (FRS 102). the general volunteer tlme of supporter51s not recognised. n Expendlture and Irrecoverable VAT ExpendItU is recognlsed once the is a legal or constructive obllgatlon to make a payment to a thlrd party, It Is probable that settlement wlll be Quid and the amount of the obllgation can be measured rellably. Expertdlture Is classlfled under the followlng artlvlty headlngs: Costs of ralslnq funds: Expendlture on charltable actlvltles comprlses those costs InCued by the charlty In the dellvery of Its actlvltles and serylces for Its beneflclarles. It Includes both costs thèt can be allocated dlrectly to such actlvltles and those costs of an Sndlreet nature necessary to support them. Other expendlture represents those Items not falllng into any ott)er headlng. All ¢o5ts are allocated betr4een the expendItU categodes of the Statement of Flnanclal Actlvlties on a basls deslgned to renect the use of the resource. Costs relatSng to a particular actlvlty are allocated dlrectlyi Others are apportloned on an apprOpate basls. Irrecoverable VAT Is charged as a wst agalnst the actlvlty for whlch the expendlture was incurred. o) Allocatlon of support costs Support costs are those functlons that asslst the work of the charlty but do not dlrectly undertake charltable artlvltle5. Support costs Include back Offi costs. flnance, personnel, payroll and governance costs whlch 5UPPOrt the programmes and actlvltles. h} Tangbble fixed assets and depreclatlon Tanglble flxed assets are stated at COSt less depreclatlon. Depreclatlon Is provlded at rates calculated to wrlte off the c05t or valuatlon of flxed assets. less thelr estlmated resldual value, over thelr expected useful Ilves on the followlng basls: Flxtures and nttlng5 20Qh reduclng balance Computer equlpment 33% on cost other equlpment 20% on cost Investment Property The carrylng values of tanglble flxed assets are revlewed for Impalmient when events or clrojmstances Indlcate the carrylng value may not be recoverable. Revalued Investment propertles are not depreclated or amortlsed. Where the valuatlon Indlcates a permanent dlmlnutlon In valuatlon of the property, the permanent dlrnlnutlon Is charged to the Statement of Financlal Act(vltSes. l) Debtors Trade and other debtors are recognlsed at the settlement amount due after any trade d15count offered. Prepayments a valued at the amount prepaid after taklng account of any trade dlscounts due. J) Cash at bank and In hand Cash at bank and cash In hand Includes cash and short tern current accounts. kl Credltors and provlslons Credltors and provislons are recognlsed where the charlty has a present obllgatlon resultlng from past event that wlll probably result in the transfer of funds to a thlrd party and the amount due to settle the obligotion can be measured or estimated reliably. Creditor5 and provisions are normally recognised al their settlefflent amounl after allowfing for any trade discounts due. 11 Financial instruments The trust only ha5 financial assets and finandal IlabSlltles of a kind that quallfy as basic financial instruments. Basic financial instruments are Inltlally recognlsed at transaction value and subsequently measured at thelr settlement value with the exception of bank loans which are subsequently measured at the carrylng value plus accrued Interest less repayments. The financlng charge to expendlture Is at a constant rate calojlated using the effecttve Interest method. 23
East Belfast Ent•rprlse Ltd Notes to the Flnanclal Statsm•nts for the y•ar ended 31 D¢¢ember 2022 I. ACCOUNTING POLICIES ctd... m) Pen5i0n5 The company operates a deflned contrlbutlon pension scheme. Contrlbutlons are charged In the statement of finanaal activities as they become payable in accordance with the rules of the scheme. Following the auto-enrolment staglng date In April 2017, the company has now put In place a company pension scheme whereby the company ttjntrlbutes 60h to the scheme and the staff ontrlbute a mlnlmum of 3Wo. The scheme Is set up wlth Scottish Wldows and all staff are now reglstered on the scheme, whlch Is compllant wlth auto enrolment. Kerr Henderson contlnues to provide guidance and Informatlon to the company as required to ensure that any Changes to staff pen51ons are compliant wlth auto enrolment leglslatlon. n) Taxatlon The company Is a reglstered charlty and the charltable tax exemptlons are thef0 belng clalmed to the extent that Income andlor gains are appllcable and applled to charltable purposes only. These exemptlons wlll remaln In place as long as Income and expendlture Is applied to charltable purposes only. Crltycal accounting e5timate5 and Judgements In the appllcatlon of the charlty's accountlng pollcles, the trustees are reqUId to make Judgements, estlmates and assumptlons about the carrylng amount of assets and Ilabllltles that are not readlly apparent from other sources. The estlmates and assoclated assumptlon5 are based on historlcal experlence and other factors that are considered to be relevant. Actual results may dlffer from these estimates. The estlmates and underlylng as5umption5 are revlewed on an ongolng basls. Revlslons to accounting estlmates are e0gnIsed In the perlod In whlch the estimate Is revlsed where the revlslon affects only that perlod, or In the perlod of the revlslon and future perlods where the revlslon affects both current and future period5. 2. RESULTS FOR ThE YEAR The result for the year has been arrlved at after charglng the followlng:_ 2022 2021 Depreclatlon Audltors remuneratlon 16,884 20,660 3. EMPLOYEE INFORMATION 2022 2021 Staff Costs Wages and Salarles Employerfs NIC Penslon 259,332 22,709 242,717 20.192 295 419 276 284 Average monthly number of persons employed by Numb¢r Number There wa5 one high pald stsff wlth one employee reIving over £60,000. Penslon costs are allocated to attlvltles In proportlon to the related stafflng costs Incurred and are wholly charged to unrestrlrted funds. The charity trustees were not paid or received any other benefits from employment wlth the charity, neither were they reimbursed expenses during the year (2021: Cnill. Refer to note 13 detall on professlonal servlces connected to the trustees. The key management personnel of the charity comprlse the trustees and the CEO. The tota employee beneflts of the key management personnel of the charlty were £80,454. 24
East O•lfa$t Entèrprfse Ltd Notes to the Flnanclal Stat•m•nts lor the yegr éndtd 31 D•cember 2022 4. FIXED ASSETS Freehold Clty East Investment Flxtures Computer Investment City East Property & Fitting$ Equlpment Property Equipment Foundry TOTAL COST At l January 2022 Addltlons Dlsposals Revaluatlon At 31 December 2022 2.238,330 107.209 93,966 5,034 2,040,268 158,054 356,558 4,994.385 5,034 2.238.330 107,209 99,000 &040,268 158,054 356,558 4,999,419 DEPRECIATION At l Jaftuary 2022 Disposals Charge for the year At 31 December 2022 558,330 107,209 79,518 340,268 146,915 29,847 1,262.087 4,972 84.490 7,773 154,688 4,139 16.884 33.986 1.278.971 558.330 107.209 340,268 NET BOOK VALUE At 31 December 2022 1,680,000 14,510 1,700,000 3,366 322,572 3,720,448 At 31 December 2021 1,680,000 14,448 1,700,000 11,139 326,711 3,732,298 The revaluatlon of Clty East Is put through the accounts In order for It to match the valuatlon carrled out In October 2021 by Fraser Kldd (Surveyors, Valuers, Agents). The revaluatlon of Albertbrldge Road had been put through the accounts In order for It to match the valuatlon carrfed out In 2019 by Fraser Kldd (Surveyors, Valuers, Agefttsl. 5. DEBTORS: AMOUNTS FALLING DUE wrrHIN ONE YÉAR 2022 2021 Trade Debtors Prepayments and accrued Income 54.037 30,558 6. CREDThORS.. AMOUNTS FALLING DUE WITHIN ONE YEAR 2022 2021 Trade Credltors Soclal security and other taxes Bank Loan other Creditors Accrued Expenses and deferred Income 19,667 17,882 64,631 (703) 104 587 206 064 42,688 14,166 64,631 832 209 784 7. CREDrroRS: AMOUNTS FALUNG DUE AFfER MORE THAN ONE YEAR 2022 2021 Bank Loan Loan 69,179 129.070 112 797 177 372 25
East Belfast Enterprise Ltd Notes to the Flnan¢lal Statements for the year ended 31 December 2022 8. INCOME Progr•mme$ Programmes Property Clty East Clty East Restrlrted Unr•strl¢t•d Unrnstrlcted RestriLted Unrstrlct•d 2022 Total 2021 Totsi Incom• and Endowrnents from: Charftable Actlvltl•$ Co Innovate N18SUP Urban Vlllages Foundry Income Erasmus Data Set Feel good wlth food Klckstart Emlnent Street Culture for Reglons Pathway Mural Project Renewal 1,626 26,089 7,600 1.626 26.089 7,600 68.042 306 15,642 41,191 1,743 30.840 24,400 58,321 68,042 306 15,642 41,191 15,449 21,872 12,387 24,612 6,520 21.853 3,239 3,614 21,853 3,239 3,614 139,560 68,042 207,602 196,144 Other Tradlng Artlvltl• Advertlslng Hoardlngs Car Pat* Spaces 4,500 4,500 4,500 4,500 25,320 29,820 29,933 Invegtmont Incom• Rents Recelved Tenants Servlces Contdbutlon to electrlclty Tenant Phone calls Clty East 195,974 145,219 341, 193 319,314 90,517 90,517 83,300 12,378 12,378 9,897 19S,974 251,823 447,797 416,678 Other Inme Other Income Insurance Repayment 3,149 16,026 19,175 14,218 3,149 16,026 19,175 52,366 Total Xn¢omln9 r•8our 139 $60 200 474 361 211 704 394 695 121 The 2021 balance of £695,121 was spllt between restrfcted funds of £137,823 and unrestrfcted funds of £557,298. 26
East Belfast Enterprlse Ltd Notes to the Financial Statements for the year ended 31 December 2022 9. COST OF RAISING FUNDS 2022 Total 2021 Total Unrestrlct•d Restrlrted Staff costs Investment Management.. Repalrs and Renewals 4,296 2,114 6,410 6,410 The 2021 balance of £56,411 was spllt between $trIcted funds of É2,114 and unrestrlcted funds of £54,297. 10. COSY OP CHARITABLE ACTIVITIES BY FVND TYPE 2022 Total 2021 Total Unre*trlet¢d Rèstrlctsd Programme5 Restrlcted Programme5 Unrestrlrted East eelfast Enterprlse Park Albertbrldge Road Clty East Clty East - Capltal Support C05t5 Governance Costs 128,738 128,738 4,259 15,406 153,055 132.846 3.657 13,539 136,733 4,259 15.406 153,055 278,126 278,126 259,545 473 054 129 795 602 849 The 2021 balan of £576,875 was splot between restrleted funds of E133,903 and unrestrlcted funds of £442,972. 576 875 11. COST OF CHARITABLE AcfIviTIES BY ACTIVITY TYPE Actlvltl•• Undertsken Dlrertlv Support Governance Co•ts 2022 Totsl 2021 Total Programmes Restrfjrted Programmes Unrestrltted st Belfast Enterprlse Park City East City East - Capltal 128,738 4,259 15,406 153.055 1,057 129,795 4,440 67.423 401,191 133,903 3,792 58,289 380,891 181 52,017 225,928 22,208 301458 278 126 576 875 12 FUNDS Restrlcted UThrestrlrteil UnrestrSrted Re$trlrted UDr¢strlrt¢d Progr4mm•$ Programmes Property Clty East Clty East Tot•1 At l January 2022 11,639 (27,580) 2,824,395 750,109 195,978 3.754,541 Surplus l {Dendtl In the Year 7,651 (1,291) 117,964 (109,2741 15,050 Transfers Between Funds At 31 December 2022 2 942 359 750 109 3 769 591 27
East Belfast Enterprise Ltd Notes to the Financial Statement$ for the year ended 31 December 2022 Restricted Programme Funds: Balance at 111122 Incomlng Resources Resources Expended Transfers Balance at 31112122 Urban Vlllages Co Innovate NIBSUP Erasmus Data Set Feel good wlth lood Klckstart Pathway Street Culture for Reglons Mural Projert Renewal Enterprise Projects 7,600 (7,600) 1,626 (1,626) 26,089 (26,089) 306 (306) 15,642 (15,642) 41, 191 (41,191) 3,239 {3,239) 21,853 (23, 159) 3,614 {3,614) 18,400 {9,443) 1,806 500 8,957 9,833 9,833 11,639 139,560 131,909 19,290 13. RELATED PARTIES East Belfast Enterprise currently purchases a payroll Servi from Johnston Kennedy DFK. Thls servlce Is provlded on a commerclal basls by the payroll dlvlslon of Johnston Kennedy DFK. Mr Duncan Graham is a Trustee and Dlrector of East Belfast Enterprlse Ltd and also partner of Johnston Kennedy DFK. The total transattlons In the year, and the amount due to Johnston Kennedy DFK at the year end was £1,090.24 net. The CEO of East Belfast Enterprlse, Jonathan McAlpln, was also the Chalr of Enterprlse Northern Ireland, a role approved by the Board of Trustees at thelr meetlng In January 2021. East Belfast Enterprlse Is a member of Enterprlse Northern Ireland, payin9 an annual membershlp and subscrlptlon for Research data (Cobweb) of £4,745.66. Jonathan recelved remuneratlon for hls role wlth ENI and East Belfast Enterprtse dellvered contracts on behalf of Enterprlse Northern Ireland durtng 2022, Go For It Programme, Co-Tnnovate, Klck Start and Pathways to Enterprlse. Allocatlons of contracts by ENI Is declded based on market need and prevlous dellvery performance by the agency. Another related party of East Belfast Enterprlse Ltd Is the company Creatlng Retall Maglc. whlch provldes seNlces for East Belfast Enterprlse as part of the consultancy and advlsory assoclate pool used by the charlty. Durlng 2022 gross servlces and costs of £1,428.60 were agreed wlth Creatlng Retall Maglc, wlth no balance outstandlng to CatIng Retall Maglc at the year end. 14. CHARGE5 Danske Bank hold a floatlng charge over the property at 68-72 Newtownards Road. 28
East Belfast Enterprlse Ltd Notes to the Flnanclal Statements for the year ended 31 December 2022 IS. Reconciliation of not income/{expendlture) to not cash flow fTh)m operating actlvitleg 2022 2021 Net Income/fexpendlture) lor the r•portlng perfod (•s per the statement of finan¢l•l actlvltl¢$) 15,050 361,835 Adjustments for: Depreclauon charges Revaluation Galn {Increase)Idecrease In debtors Increase/(decrease) In credltors Net cash provlded by (usod In) •tIng artlvltlas 16,884 20,660 (300,000) {16,049) 12,602 8,129 16. Analy•ls of ¢uh and a•h equlvalent• 2022 2021 Cash in hand Bank Loan 301,332 334,598 (177,421) {242,000) Total Cash and cash equlvalents 123 911 29