**Charity registration number NIC103240** **Company registration number NI028376 (Northern Ireland)** ## **HABITAT FOR HUMANITY IRELAND LTD** **ANNUAL REPORT AND FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 30 JUNE 2023** ## **HABITAT FOR HUMANITY IRELAND LTD** ## **LEGAL AND ADMINISTRATIVE INFORMATION** ## **Trustees** Mrs J Belton Mr M Bambrick Dr A Beck ## **Secretary** **Secretary** Ms J Williams **Charity number** NIC103240 **Company number** NI028376 **Principal address** Riverside Centre Young Street Lisburn Antrim BT27 5EA **Registered office** Riverside Centre Young Street Lisburn Antrim BT27 5EA **Auditor** GMcG BELFAST Alfred House 19 Alfred Street Belfast BT2 8EQ **Bankers** Ulster Bank Limited 11-16 Donegall Square East Belfast BT1 5UB AIB 35 University Road Belfast BT7 1ND **Solicitors** CMG Cunningham Dickey 18 May Street Belfast BT1 4NL (Appointed 27 April 2023) (Appointed 1 July 2022) ## **HABITAT FOR HUMANITY IRELAND LTD** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 9| |Independent auditor's report|10 - 15| |Statement of financial activities|16| |Balance sheet|17| |Statement of cash flows|18| |Notes to the financial statements|19 - 35| ## **HABITAT FOR HUMANITY IRELAND LTD** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 JUNE 2023** The trustees, who are also the directors of the charity, present their Annual Report and the audited financial statements for the year ended 30 June 2023. Habitat for Humanity Ireland, working across two Habitat entities on the island of Ireland is focused on delivering impact locally and globally, growing more support for our mission and ensuring cost-effective operations. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". ## **Objectives and activities** Habitat for Humanity is a non-denominational, Christian housing movement with a vision of a world where everyone has a decent place to live. Habitat for Humanity’s 'Global Impact Strategy 2025' challenges the organisation to dramatically increase the number of families it serves in addressing the urgent, global housing need. Seeking to put God’s love into action by bringing people together to build homes, communities and hope, the organisation’s work focuses on building impact in three interconnected areas of work: community, sector and society. In order to deliver its impacts it is vital that the organisation is sustainable. FY23 was a positive year, delivering solid, sustainable performance especially through the charity’s social enterprise Habitat ReStore which provides strong impacts for local people and support for international partnerships which included an appeal to support Habitat’s response to the Ukraine war. To launch a celebration of 30 years, Habitat Ireland hosted a significant event at St Anne’s Cathedral which was attended by Jonathan Reckford, Habitat for Humanity International Chief Executive, and hundreds of volunteers. The continued suspension of Global Village volunteering has meant a significant loss of income and a loss of opportunity to engage volunteers hands-on with Habitat’s global mission. One team travelled during FY23 and two further teams will travel over summer 2023. The organisation remained focused on growing support for global partner programmes, ensuring the loss of volunteering did not affect the commitment to global partnerships. The growing impact of the cost-of-living crisis was clearly seen through the increase in customers purchasing the low-cost materials offered in Habitat ReStores. ReStore reached thousands of local families, provided training and support for individuals of all ages and backgrounds and diverted tons of materials from landfill. Support for the most vulnerable in the local communities continued through the ‘House to Home’ programme which, in partnership with other charities, also provided emergency furniture support for individuals. Habitat Ireland engaged people of all ages and backgrounds in programmes which grow understanding of Habitat’s mission and the sustainable development goals. Habitat’s online activity across Ireland reached almost 12.5 million people using social media platforms to highlight mission messages. Habitat’s mission to build a world where everyone has a safe place to live has never been more important. Housing is critical in breaking the cycle of poverty; safe homes with access to water and sanitation protect families and communities and empower them to build strength, stability and independence. The activities for the year are outlined below against the strategic plan. The directors have paid due regard to the Charity Commission guidance on public benefit. The directors are confident that the Charity's aims and objectives are in accordance with the regulations on public benefit. The Charity is a signatory to the ‘Dóchas Guide to Ethical Communications’ launched in 2023, superseding the ‘Code of Conduct on Images and Messages’. - 1 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** ## **FOR THE YEAR ENDED 30 JUNE 2023** ## _**- Build Community Impact Improve Housing Conditions**_ ## _**Support Strategic International Partnerships**_ Habitat for Humanity Ireland Ltd is a partner in Habitat for Humanity's global mission; raising funds to support international programmes and, when it is possible, sending volunteer teams to work alongside families in some of the world’s most vulnerable communities. The Charity has developed a number of long-term partnerships, maximising the impact of its support and ensuring a better understanding of the needs of communities. Habitat Ireland focuses on partnerships which fit with key themes; peacebuilding, vulnerable groups, impacts of urbanisation and disaster response. During the year ended 30 June 2023, Habitat Ireland transferred £469,817 in support of International Partnership programmes which directly impact the lives of vulnerable people. ## Malawi In Malawi, four out of five families live in poorly built homes made of mud bricks, dirt floors and grass thatched roofs. Homes constantly need repair and families are at high risk of disease. The poorest are worst affected, including the 1.5 million children who are orphaned or vulnerable, largely as a result of HIV/AIDS. During the year, funds from Ireland provided match funding for a larger grant which is focused on delivering WASH solutions in the poorest communities in Llilongwe. ## Cambodia Habitat's long-term partnership with Habitat Cambodia is supporting an urban resiliency project. The project uses a community-driven approach to enhance the urban community resiliency through; strengthening DR3 capacity building, the provision of block grants for community improvement and increased capacity on land and housing policy among the community and local authorities. The project is also improving hygiene and sanitation, waste management through the provision of rehabilitation facilities and training related to shelter, water and sanitation. ## Romania Habitat has Ireland partnered with Habitat Romania since 1999. Despite being in the EU, more than five million Romanians live in poverty and its housing need is the worst in Europe. For over 20 years, Habitat Romania has been working beside families and communities in need to find innovative housing solutions, ranging from building and renovating homes to advocating for better housing policies. During FY23 one Global Village team of volunteers from right across Ireland travelled to Romania, supporting affordable housing for low-income families. In addition, funds raised in Ireland supported Habitat Romania’s response to war in Ukraine. This included the refurbishment of an office building to create an holistic centre for refugees in Bucharest. ## Ethiopia Approximately 70% of housing units in Ethiopia require total replacement. Most homes are made of wood and mud and have cracked walls, leaking roofs and dirt floors. Only 57% the country’s population have access to safe drinking water. Since 2005, Habitat Ireland’s partnership with Habitat Ethiopia has delivered significant impacts for vulnerable communities. In FY23 funds from Ireland provided support for a vulnerable group housing and WASH (water, sanitation and hygiene) project in Kombolcha. The project was delayed due to political instability in-country but will, when complete, transform the future for eight families through new homes, access to water and sanitation, together with training and other supports. - 2 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023** ## Disaster Response and Risk Reduction Disaster response is a strategic priority; supporting families whose lives have been turned upside down in the wake of natural and man-made disasters. Habitat programming incorporates disaster resilient design and mitigation training into programmes to reduce the impact of future disasters. During the year, the focus continued to be on Habitat’s response to war in Ukraine. Since the start of the conflict in Ukraine in February 2022, more than 13 million people have been forced to flee their homes. Habitat served more than 35,000 people through a range of interventions during the first 12 months of war. From emergency travel kits, with items such as blankets and hygiene products, to rental assistance and hotel vouchers, Habitat has been supporting refugees from Ukraine to have a safe place to stay. The charity has also refurbished vacant buildings and spaces, providing upgrades to collective shelters, enabling larger numbers of refugees to have a place of safety. The charity’s focus in FY24 is to continue to support Habitat’s response to war in Ukraine, providing medium and long term shelter for those in neighbouring countries, upgrading collective shelters and repairing damaged housing for the most vulnerable who have been displaced within Ukraine. ## _**Enable local families to improve their homes at low-cost**_ ## Habitat ReStore Habitat ReStores in Lisburn, Ballymena, Newry and Newtownards are a hub for Habitat Ireland’s work, delivering real impacts for local people and the wider community. In April 2023 ReStore Belfast launched on Crumlin Road and is already delivering positive impact in North Belfast. Demonstrating the growing need for low-cost materials as well as strong donor support, ReStore income was £1,290,000, its target in FY23. The social enterprises reached more than 90,000 people, at least 40% from deprived communities who are least able to afford commercial prices to improve or maintain their home. During the period a further 1,500 tons of reusable materials were diverted from landfill, helping protect the environment and helping build a more sustainable Ireland. Habitat Ireland lives out its mission principle ‘everyone has something to contribute and something to gain in building strong communities’ through the strength of its diverse volunteer programme in ReStore. During the year ended 30 June 2023, more than 200 volunteers of all ages, backgrounds and abilities invested around 3,000 hours each month in ReStore. In FY23, more than 40% of volunteers were on supported placements; getting employability support and other training at ReStore through partnerships with Action Mental Health, Stepping Stones, Cedar Foundation and many more. Volunteers and partner organisations testify to the impact of the supported volunteer programme, made possible through the dedication of many retired volunteers who provide ‘buddy support’ for those who need extra help. Over the year, 25 individuals secured employment with support from Habitat. The ‘Building Impact’ partnership with The Gallaher Trust continued to support staff capacity and community impact in Ballymena; helping local people learn skills for employment through the delivery of accredited Open College Network ‘Foundations’ training. Habitat Ireland continues to partner with Hydebank Wood College, NIACRO and NI Probation Board facilitating more than 100 community placements for those who are in the justice system. Habitat ReStore’s impact for people, community and the planet was recognised when it was awarded Social Enterprise of the Year 2023 at the Social Enterprise NI Awards. - 3 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023** ## _**Work in partnership to deliver projects which focus on meeting need locally**_ In Northern Ireland, breaking down barriers and building bridges between divided communities has defined Habitat's work since it began in 1993. The Charity’s work remains focused on reconciliation and building strong communities. Habitat Ireland partners with other charities and communities to improve the quality of housing, especially for vulnerable groups. During FY23 Habitat Ireland, with support from the Greenview Group (Lisburn area) and NIHE Homelessness Prevention Fund (Ballymena area), delivered 67 House to Home interventions, helping people who have been homeless or at risk of becoming homeless to make their house a home. _‘This intervention came at a time when the client needed faith and positivity in humanity. Having been let down by services in the past K was extremely grateful for the kindness and compassion shown by Habitat through the House to Home programme. The practical support brought a significant relief, particularly given the physical and mental health of those in the household’ - Support Agency_ In addition, emergency furniture support was provided for 59 households in partnership with Women’s Aid and other support agencies. The charity also continues to support 25 families whose self-build partnership with Habitat Ireland provides a route to affordable home ownership in communities in Belfast and Downpatrick. During the year, one Habitat home was transferred to the family who, having built their home alongside volunteers, had completed their journey to affordable home ownership. ## _**Build Sector Impact - Partner to increase shelter access**_ ## _**Influence local government**_ Habitat Ireland continues to advocate towards bringing empty homes back to life, housing affordability and for more shared future housing. In May 2023, during Habitat for Humanity International’s Chief Executive Officer, Jonathan Reckford’s visit to Ireland, the charity delivered an event; Building Sustainable Communities at Stormont parliament buildings. Hosted by Kellie Armstrong MLA, the event focused on Habitat’s local impact, in particular on ReStore and House to Home and was attended by more than 20 local politicians and partners. Habitat Ireland’s work to influence government policy on global issues largely focuses on its activity as a member of the Coalition of Aid and Development Agencies in NI (CADA). Jenny Williams, the Charity's Chief Executive, served on CADA’s management committee until May 2023. Activity focuses on encouraging the NI Assembly to be outward looking in their policy and strategy and contribute towards the global Sustainable Development Goals on a local level. In FY23, Habitat Ireland merged its website across Ireland and reached more than 110,000 individuals, as well as almost 12.5 million across social media platforms. In October 2022, Habitat Ireland hosted a number of events as part of CADA NI’s annual One World Festival including an exhibition Home: Stories of the Displaced. The festival aims to increase awareness about the Global South, promote understanding of issues that affect the lives of the poorest people and inspire action in our communities towards a just, peaceful and sustainable world. Habitat Ireland’s Communications Manager, Rebecca Harkin, sits on the One World Festival committee. In May 2023 an event held at Queen’s University, in partnership with the School of Natural and Built Environment, launched Habitat’s advocacy campaign ‘Home Equals’ in Ireland. The event was attended by academics, local partners and businesses. ‘Home Equals’ is a five-year global advocacy campaign dedicated to achieving policy change, at all levels, to ensure that people living in informal settlements have equitable access to adequate housing. - 4 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023** ## _**Develop partnerships that unlock finance or provide leverage**_ The Charity's partnerships with DePaul, MACS and others create opportunities to reach the most vulnerable people in our community. During FY23 the organisation’s partnership continued with the Greenview Group and NIHE helping deliver impact for local people, through the House to Home programme as well as training and practical action. ## _**- Build Societal Impact Inspire action to end poverty housing**_ ## _**Engage and motivate more people to action**_ During FY23 the charity delivered 15 primary school workshops and worked with 12 ‘Change Maker’ schools. Overall in the year, more than 1,800 young people in formal and informal contexts took part in facilitated programmes which engaged them with Habitat’s mission; the SDG’s and challenged them to be active citizens. The first year of a three-year partnership with Girls Brigade NI provided opportunities to engage 19,000 members and leaders across Northern Ireland – and their families – in Habitat’s mission and raised more than £11,000. In April, building on a long-term partnership with Scouts NI, the charity launched its ‘Step Forward’ resource to meet the requirements of the ‘Community Impact Staged Awards’ and to engage young people as agents of change. Membership of IDEA (Irish Development Education Association) is an important part of the charity’s commitment to deepen the impact of its Global Citizenship Education. Habitat is committed to the Code of Good Practice for Development Education. A member of staff, Vicki Trimble, travelled to Brussels on a study visit including a Round Table discussion hosted by MEP Barry Andrews, with MEPs, European Commission officials and Civil Society organisations on the topic of European Year of Skills: Global Citizenship Education building skills for a sustainable world. The charity appreciated the support of St Anne’s Cathedral in hosting the ‘Journeys of Hope’ photo/video exhibition which was held for a week over Pentecost. As part of the organisation’s partnership with Self Build Ireland, the charity engaged hundreds of local people by creating an interactive mural on Habitat’s stand at Love Your Home Belfast in May. There were on-going opportunities to meet in-person to pray for Habitat’s mission and the organisation attended a number of Christian festivals including Summer Madness and Bangor Worldwide Convention which engaged hundreds of people of faith. The charity also engaged hundreds of people during the year; presenting to groups of all ages in churches and communities as well as facilitated engagement with people of all backgrounds and abilities. ## _**Intentional and meaningful volunteer opportunities local and global**_ The impact of local volunteering has already been mentioned, more than 3,000 hours were contributed by volunteers in five NI ReStores every month. A number of volunteers also supported Habitat Ireland at events; including through the partnership with Self Build Ireland, helped facilitate the charity’s schools programmes, in the office and other local volunteer programmes including ‘House to Home’. One See, Serve, Speak team, which included volunteers from across Ireland, was able to travel in June 2023, supporting Habitat Ireland’s long-term partnership with Habitat Romania. Global Village connects volunteers with Habitat Ireland’s international partnership programmes. Trips provide a unique, grass-roots experience in which volunteers serve and learn alongside local Habitat staff and community members. During FY24 Global Village volunteering will fully resume. The charity expect that numbers will be smaller than the programmes pre-COVID scale but that this provides an important opportunity to invest in supporters. The objective is to engage volunteers over the long-term as advocates for housing; encouraging them to continue to support and speak out about the issues they have seen when they return home. - 5 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023** ## _**Build a sustainable organisation**_ Habitat Ireland so much appreciates all the support of partners, donors and volunteers, whose commitment enables the organisation’s impact locally and globally. The charity’s income for the year increased by 19.7% to £2,029,717. Securing support is always challenging, and capacity is limited, but the positive outcome highlights a growing awareness of Habitat Ireland’s impact which transforms lives. Solid ReStore sales reinforce its role in tackling poverty, demonstrating the growing need and impact for local families. The strategy to scale across Ireland to other communities across Ireland is a priority. Grant income was on target with support from The Gallaher Trust, NIHE Homelessness Prevention Fund and the partnership with Greenview Group. Habitat Ireland also launched the charity’s most significant product partnership to date with Sonas Bathrooms, who are supporting the organisation’s social enterprise Habitat ReStore. The ‘Help Build Impact’ campaign will continue to underpin the fundraising strategy as the charity seeks to secure long-term support. During FY23 there was additional significant support for Habitat’s response to war in Ukraine. Partnership with The Bishop’s Appeal, the Church of Ireland’s World Aid and Development Programme, supported by churches across Ireland was very important, as well as strong support from individual donors. Habitat Ireland's unrestricted donations for the year were £158,241 (2022 - £117,866) and funds raised for international programmes were £131,635 (2022 - £29,989), which reflects the impact of travel restrictions on the Global Village Programme. Looking ahead, the strategy to engage companies, churches, schools, community groups and individuals in Habitat’s mission continues to be important. Whilst the international volunteer programme will resume in FY24 it is likely that opportunities will continue to be limited. The charity remains committed to growing support for global partner programmes and to continue to grow and deepen local impact. - 6 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023** ## **Risk management** The directors and management review the major risks facing the Charity at regular Board and sub-committee meetings. The finance sub-committee review financial reports regularly and Board review at quarterly meetings. Systems and internal financial controls have been established to mitigate significant financial risks. Business risks are reviewed regularly and priority given to reducing risk and achieving ambitious but realistic fundraising goals. Other risks, which include an implementation risk (that the work supported by Habitat funds will not achieve the planned results), health and safety risk (both locally and globally) and funding risk (not having the resources to support the planned activities), are also monitored regularly by management and Board. The directors are satisfied that systems are in place to mitigate exposure to risk. ## **Plans for future periods** In the year ahead: - The Charity seeks to serve more local people and communities. Given ReStore’s measurable impact, the strategy is to scale ReStore across Ireland. During FY24 the charity plans to launch ReStore in the North West and to secure a suitable building in Dublin. - The charity plan to grow staffing capacity in order to maximise income and impact from ReStore, including to ensure a solid pipeline of quality materials from corporate partners. - During FY24 there will be an increased number of opportunities for Global Village international volunteering. Volunteering remains at the heart of the Habitat’s strategy to inspire action to end poverty housing. - The charity will seek partners to support the roll out of OCN training from all ReStores during FY24. - In the context of a growing global need for shelter the organisation is committed to raising more funds for global partner programmes and is reviewing opportunities to work collaboratively and expand its fundraising team. - Habitat Ireland is committed to Habitat International’s Home Equals Advocacy Campaign. Home Equals is a five-year global advocacy campaign dedicated to achieving policy change, at all levels, to ensure that people living in informal settlements have equitable access to adequate housing. ## **Investment policy** Investments consist of rental property investments whereby the occupant of the property purchases the equity ownership of the property under a Rental Purchase Agreement. Investments are initially stated at cost and are reduced monthly in line with rental purchase agreements. - 7 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023** ## **Financial review** The total net movement in funds during the year was a deficit of £132,094 (2022 - surplus of £382,987). The results for the year include a deficit of £153,227 in restricted funds, which represents the use of funds that had been received in previous years for specific purposes. The charity generated a surplus of £21,133 (2022 - £237,552) in its unrestricted funds. The Charity’s assets are held to further its charitable objectives. At 30 June 2023 the Charity held net assets totalling £1,045,983 (2022 - £1,178,077). The level of free reserves at the year end was £781,344 (2022 - £805,730), which equates to over six months' expenditure. The directors have reviewed the Charity’s need for reserves in line with the Charity Commission guidelines and believe the Charity should hold reserves to protect against the risks of shortfalls in its cash balances due to uncertainties in the timing of fundraising opportunities for unrestricted funds, particularly from corporate and grantmaking trusts. The directors are seeking to establish a reserve fund equivalent to six months' operating costs reviewed annually and that this fund should be built up to the desired levels consistent with the Charity’s overall financial position and its need to maintain and develop its charitable activities. ## **Structure, governance and management** The Charity was incorporated as a company limited by guarantee on 14 April 1994. The Company is exempt under this legislation from using ‘limited’ as part of its name. The Charity is registered with The Charity Commission for Northern Ireland, NIC103240. The Company is also recognised as a Charity with HM Revenue & Customs, under registration number XR18070. The Charity is controlled by its trustees who are directors of the Company for the purposes of the Companies Act 2006. ## Governance The role of the directors is to ensure that Habitat NI is effectively governed; to ensure that the charity complies with all relevant legislation, its own Memorandum and Articles of Association and the requirements of good practice; and to ensure that the charity works to agreed strategic and operational plans. The board delegates responsibility to the Chief Executive, Ms J Williams, for the day to day running of the Charity. ## Director Induction and Training Board Induction and Training is outlined in the Induction pack, which is given to new directors, and includes background and history of Habitat NI, roles and responsibilities of board members, Code of Conduct, charitable legislation and Habitat policies and procedures. Board members come from different professional backgrounds, bringing a wide range of skills and experience to the role. Opportunities to join the Board are publically advertised through a number of network bodies including Boardmatch Ireland, Business in the Community and on Habitat NI's website. In addition, individuals may connect directly to offer to serve on the Board. Board Members assess candidates suitability and once confirmed the decision is ratified at a Board meeting. The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: Mr M Emerson, Chairman (Resigned 26 January 2023) Mr G McCammon (Resigned 26 January 2023) Mrs H Morrow (Resigned 27 April 2023) Mrs J Belton Mr M Bambrick (Appointed 27 April 2023) Dr A Beck (Appointed 1 July 2022) - 8 - HABITAT FOR HUMANITY IRELAND LTD TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023 Statement of Tru5tees' responslbllltl•s The Tnjstees, who are also the directors of Habitst fDr Humanity Ireland Ltd ft)r the purpose of compary law. are responsible for preparing the Tru5tees' Report and the financial statements in aC￿rdance with applicable law and United Kingdom knounting Standard5 (United Kingdom Generally Accepted Actounling Practice). Company Law requires the Trustees to prepare financial statements for each financial year which give a true and air vlew of the stste of affairs of the charitable company and of the incoming resources and application of resources, including the In￿Me and expenditure, of the charitable company for that year. In prepartng these financial statements, the Trustees are required to: - select suitable accounting polici8s and then apply them consistently. observ8 the m8thods and principles in the Charitles SORP,. make judgements 8nd èstimates that are reasonable and prudent; stst8 vth8ther appllcable UK Accountlng Standards have beon followed, subject to any rnaterial departures disdosed and explalned In the flnancial statements,. and prepare thè financlal statements on the golng con￿rn basis unless it is inappropriate to presume that the charitable company wlll continue In operation. The Trustees are responslble ftjr keeping adequate accounting records that disclose with reasonable ac - 11 -
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## **HABITAT FOR HUMANITY IRELAND LTD** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF HABITAT FOR HUMANITY IRELAND LTD** ## **Responsibilities of Trustees** As explained more fully in the statement of Trustees' responsibilities, the Trustees, who are also the directors of the charitable company for the purpose 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 internal 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 charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor's responsibilities 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 auditor's 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 arise 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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. - 12 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF HABITAT FOR HUMANITY IRELAND LTD** ## **Extent to which the audit was considered capable of detecting irregularities, including fraud** We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. In identifying and assessing potential risks of material misstatement in respect of irregularities, including fraud and non-compliances with laws and regulations, we considered the following: - The nature of the industry and sector, control environment and business performance, including the company’s remuneration policies for directors, bonus levels and performance targets, if any; - 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 the company’s documentation of their policies and procedures relating to: - Identifying, evaluating and complying with laws and regulations and whether they were aware of any instance of non-compliance; - Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and - The internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; - The matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud. As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in income recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006, and local 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 to the company’s ability to operate or to avoid a material penalty. - 13 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF HABITAT FOR HUMANITY IRELAND LTD** ## **Audit response to risks identified** Our procedures to respond to the risks identified included the following: - Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; - Enquiring of management concerning actual and potential litigation and claims; - Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; - Reading minutes of meetings of those charged with governance and reviewing correspondence with tax authorities; and - In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as they may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect noncompliance with all laws and regulations. A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. - 14 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF HABITAT FOR HUMANITY IRELAND LTD** ## **Use of our report** This report is made solely to the charitable company'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 charitable company's members 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed. **Mr Nigel Moore FCA (Senior Statutory Auditor) for and on behalf of GMcG BELFAST** 27 September 2023 **Chartered Accountants Statutory Auditor** Alfred House 19 Alfred Street Belfast BT2 8EQ - 15 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## **FOR THE YEAR ENDED 30 JUNE 2023** |**Unrestricted**
**Restricted**
**funds**
**funds**
**2023**
**2023**
**Notes**
**£**
**£**
**Income and endowments from:**
Donations and
legacies
**3**
158,419
249,884
Charitable activities
**4**
1,476,065
129,535
Investments
**5**
15,814
-
Other income
**6**
-
-
**Total income**
1,650,298
379,419
**Expenditure on:**
Raising funds
**7**
117,338
-
Charitable activities
**8**
1,504,926
532,646
Other
**13**
6,901
-
**Total expenditure**
1,629,165
532,646
**Net incoming/(outgoing)**
**resources before**
**transfers**
21,133
(153,227)
Gross transfers
between funds
**22**
-
-
**Net movement in funds**
21,133
(153,227)
Fund balances at 1 July
2022
1,012,515
165,562
**Fund balances at 30 June**
**2023**
1,033,648
12,335|**Total**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2023**
**2022**
**2022**
**£**
**£**
**£**
408,303
117,866
293,331
1,605,600
1,182,305
67,856
15,814
24,805
-
-
9,492
-
2,029,717
1,334,468
361,187
117,338
77,917
-
2,037,572
1,018,999
215,752
6,901
-
-
2,161,811
1,096,916
215,752
(132,094)
237,552
145,435
-
(8,539)
8,539
(132,094)
229,013
153,974
1,178,077
783,502
11,588
1,045,983
1,012,515
165,562|**Total**
**2022**
**£**
411,197
1,250,161
24,805
9,492| |---|---|---| |Donations and
legacies
**3**
Charitable activities
**4**
Investments
**5**
Other income
**6**
**Total income**
**Expenditure on:**
Raising funds
**7**
Charitable activities
**8**
Other
**13**
**Total expenditure**
**Net incoming/(outgoing)**
**resources before**
**transfers**
Gross transfers
between funds
**22**
**Net movement in funds**
Fund balances at 1 July
2022
**Fund balances at 30 June**
**2023**||| |||1,695,655| |||77,917| |||1,234,751| |||-| |||1,312,668| |||382,987
-| |||382,987
795,090| |||1,178,077| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 16 - HABITAT FOR HUMANITY IRELAND LTD BALANCE SHEEr ASAT 30 JUNE 2023 2023 2022 Flxed assets Tangible assets Investrnents 15 16 140,884 111,440 45,455 161.330 252,304 206,785 Curr•nt assats stocks Debtors Cash at bank and in hand 17 18 245 243.729 933,207 362,428 653,303 1,015,729 1,177,181 Credltors= amounts falllrwJ duo wlthln year (222.050) (205,889) Net current assets 793,879 971,292 Total a•Mt•1o•8 ¢urr•nt Ilablllti 1,045,983 1,178.077 Inc¢)mo fun Restricted funds Unrestricted funds 12,335 1,033,648 165,562 1.012,515 1,045,983 1,178,077 r191L The finanaal statem8nts were approved by the Trustees on .......... ... .. . . Beck Company r•gl8tratlon numb•r N1028378 17- ## **HABITAT FOR HUMANITY IRELAND LTD** ## **STATEMENT OF CASH FLOWS** ## **FOR THE YEAR ENDED 30 JUNE 2023** |**2023**
**Notes**
**£**
**£**
**Cash flows from operating activities**
Cash (absorbed by)/generated from
operations
**26**
(220,938)
**Investing activities**
Purchase of tangible fixed assets
(125,670)
Proceeds from disposal of tangible fixed
assets
1,000
Repayment of rental purchase agreements
31,923
Proceeds from disposal of investments
17,967
Investment income received
15,814
**Net cash (used in)/generated from**
**investing activities**
(58,966)
**Net cash used in financing activities**
-
**Net (decrease)/increase in cash and cash**
**equivalents**
(279,904)
Cash and cash equivalents at beginning of year
933,207
**Cash and cash equivalents at end of year**
653,303|**2022**
**£**
(9,836)
-
24,931
-
24,805|**£**
434,730
39,900
-| |---|---|---| |||474,630
458,577| |||933,207| - 18 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023** ## **1 Accounting policies** ## **Charity information** Habitat for Humanity Ireland Ltd is a private company limited by guarantee incorporated in Northern Ireland. The registered office is Riverside Centre, Young Street, Lisburn, Antrim, BT27 5EA. ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charitable company is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. ## **1.2 Going concern** At the time of approving the financial statements, the Trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. Investment income, gains and losses are allocated to the appropriate fund. ## **1.4 Income** Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on receipt or otherwise if the charitable company has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. - 19 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023** ## **1 Accounting policies (Continued)** Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold. Given the nature and uncertainty of the resale value of donated goods, it is deemed impractical to measure the fair value of these goods and the cost of valuation would outweigh the benefit. Donated facilities are included at the value to the company where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers. On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the company which is the amount the company would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the Bank. Income from the sale of rental purchase agreements is treated in full as income from charitable activities and any residual costs are charged to direct charitable expenditure. ## **1.5 Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the company and include project management carried out at Headquarters. Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements. Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds. Charitable activities and Governance costs are costs incurred on the company's operations, including support costs and costs relating to the governance of the company apportioned to charitable activities. - 20 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023** ## **1 Accounting policies (Continued)** ## **1.6 Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Leasehold land and buildings 15% straight line per annum Fixtures and fittings 15-25% straight line per annum Motor vehicles 25% straight line per annum The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities. ## **1.7 Fixed asset investments** All investments of the charity are programme related investments. Investments consist of rental property investments whereby the occupant of the property purchases the equity ownership of the property under a Rental Purchase Agreement. Investments are stated at cost, less any provision for impairment and are reduced monthly in line with the terms of the Rental Purchase Agreement. ## **1.8 Impairment of fixed assets** - At each reporting end date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). ## **1.9 Stocks** Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. ## **1.10 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. ## **1.11 Financial instruments** The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. ## **1.12 Taxation** The company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. - 21 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023** ## **1 Accounting policies (Continued)** ## **1.13 Provisions** Provisions are recognised when the charitable company has a legal or constructive present obligation as a result of a past event, it is probable that the charitable company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises. ## **1.14 Employee benefits** The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. ## **1.15 Retirement benefits** The charity contributes to a money purchase pension scheme for the benefit of certain employees. The assets of the scheme are held separately from those of the charity. Contributions are accounted for by charging costs to the Statement of Financial Activities as payments accrue. ## **1.16 Leases** Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease. ## **1.17 Foreign exchange** Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in net income/(expenditure) for the period. ## **1.18 Consolidation** In the opinion of the trustees, the company and its subsidiary undertaking comprise a small sized group. The company has therefore taken advantage of the exemption provided by Section 399(2A) of the Companies Act 2006 not to prepare group accounts. This is not in accordance with the Statement of Recommended Practice 'Accounting and Reporting by Charities' which requires consolidated accounts to be prepared. The trustees believe that the results of the subsidiary company are immaterial to the group as a whole and, therefore, these financial statements present information about the company as an individual undertaking and not about its group. Habitat Homes Limited (a company incorporated in Northern Ireland) was the subsidiary of the company. Habitat Homes Limited was dormant throughout the prior year and the current year until 12 April 2022 when it was dissolved. - 22 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023** ## **2 Critical accounting estimates and judgements** In the application of the charitable company’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. ## **Key sources of estimation uncertainty** ## **Fixed Assets** The annual depreciation charge on fixed assets depends primarily on the estimated lives of each type of asset and estimates of residual values. The directors regularly review these asset lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset lives can have a significant impact on depreciation and amortisation charges for the period. Detail of the useful lives is included in the accounting policies. ## **Debtors** Short term debtors are measured at transaction price, less any impairment. Impairment of such debtors involves some estimation uncertainty. ## **3 Donations and legacies** |**Unrestricted**
**Restricted**
**funds**
**funds**
**2023**
**2023**
**£**
**£**
Donations and gifts
127,897
146,374
Habitat affiliate tithes and
undesignated donations
322
-
Corporate
30,200
-
Other grants
-
103,510
158,419
249,884|**Total**
Unrestricted
Restricted
funds
funds
**2023**
2022
2022
**£**
£
£
274,271
103,849
177,455
322
775
-
30,200
13,242
-
103,510
-
115,876
408,303
117,866
293,331|Total
2022
£
281,304
775
13,242
115,876| |---|---|---| |||411,197| - 23 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023** |**4**
**Charitable activities**
**Local**
**volunteer**
**programme**
**International**
**programme**
**£**
**£**
Income from charitable
activities
54,739
34,512
Programme income
-
-
Deferred income
-
97,123
54,739
131,635
Analysis by fund
Unrestricted funds
54,739
2,100
Restricted funds
-
129,535
54,739
131,635
**For the year ended 30 June 2022**
Unrestricted funds
-
-
Restricted funds
37,867
29,989
37,867
29,989|**ReStore Other income**
**from**
**charitable**
**activities**
**£**
**£**
1,290,702
128,524
-
-
-
-
1,290,702
128,524
1,290,702
128,524
-
-
1,290,702
128,524
1,139,470
42,835
-
-
1,139,470
42,835|**Total**
**2023**
**£**
1,508,477
-
97,123
1,605,600
1,476,065
129,535
1,605,600|**Total**
**2022**
**£**
1,161,466
48,471
40,224| |---|---|---|---| ||||1,250,161| ||||1,182,305
67,856| ||||1,250,161| ## **5 Investments** ||**Unrestricted**|**Unrestricted**| |---|---|---| ||**funds**|**funds**| ||**2023**|**2022**| ||**£**|**£**| |Income from investments|15,814|24,805| - 24 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## **FOR THE YEAR ENDED 30 JUNE 2023** |**6**
**7**|**Other income**
**Total Unrestricted**
**funds**
**2023**
**2022**
**£**
**£**
Coronavirus job retention scheme
-
9,492
**Raising funds**
**Unrestricted**
Unrestricted
**funds**
funds
**2023**
2022
**£**
£
Fundraising and publicity
Other fundraising costs
13,898
1,806
Staff costs
88,867
53,931
Fundraising and publicity
102,765
55,737
Programme support
Other costs
-
2,972
Staff costs
8,886
5,716
Support costs
5,687
13,492
Programme support
14,573
22,180
117,338
77,917|**Other income**
**Total Unrestricted**
**funds**
**2023**
**2022**
**£**
**£**
Coronavirus job retention scheme
-
9,492
**Raising funds**
**Unrestricted**
Unrestricted
**funds**
funds
**2023**
2022
**£**
£
Fundraising and publicity
Other fundraising costs
13,898
1,806
Staff costs
88,867
53,931
Fundraising and publicity
102,765
55,737
Programme support
Other costs
-
2,972
Staff costs
8,886
5,716
Support costs
5,687
13,492
Programme support
14,573
22,180
117,338
77,917| |---|---|---| |||55,737| |||2,972
5,716
13,492| |||22,180| |||77,917| - 25 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023** ## **8 Charitable activities** |**Local**
**volunteer**
**programme**
**International**
**programme**
**support**
**£**
**£**
Staff costs
80,508
39,927
Depreciation
-
-
Other charitable expenditure
12,526
1,463
93,034
41,390
Share of support costs (see note 9)
14,608
4,758
Share of governance costs (see note 9)
47,303
-
154,945
46,148
**Analysis by fund**
Unrestricted funds
154,945
46,148
Restricted funds
-
-
154,945
46,148
**For the year ended 30 June 2022**
Unrestricted funds
46,393
75,909
Restricted funds
37,867
-
84,260
75,909|**Ukraine International**
**programme**
**£**
**£**
-
-
-
-
270,118
129,535
270,118
129,535
-
-
-
-
270,118
129,535
5,118
-
265,000
129,535
270,118
129,535
-
-
-
64,990
-
64,990|**ReStore**
**Advocacy**
**£**
**£**
599,384
64,451
18,093
-
334,669
29,228
952,146
93,679
228,899
-
-
-
1,181,045
93,679
1,066,193
93,679
114,852
-
1,181,045
93,679
818,072
78,625
112,895
-
930,967
78,625|**Other**
**£**
-
-
162,102
162,102
-
-
162,102
138,843
23,259
162,102
-
-
-|**Total**
**2023**
**£**
784,270
18,093
939,641|**Total**
**2022**
**£**
606,558
16,248
392,265| |---|---|---|---|---|---| |||||1,742,004
248,265
47,303|1,015,071
174,804
44,876| |||||2,037,572|1,234,751| |||||1,504,926
532,646|1,018,999
215,752| |||||2,037,572|| ||||||| ||||||1,234,751| - 26 - **HABITAT FOR HUMANITY IRELAND LTD** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023** |**9**
**Support costs**
Staff costs
Depreciation
Other support costs
Audit fees
Accountancy
Analysed between
Fundraising
Charitable activities|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
80,859
39,046
4,267
-
177,712
-
-
6,900
-
1,357
262,838
47,303
14,573
-
248,265
47,303
262,838
47,303|**2023**
**£**
119,905
4,267
177,712
6,900
1,357
310,141
14,573
295,568
310,141|**2022**
**£**
108,216
4,667
118,158
6,900
947| |---|---|---|---| ||||238,888| ||||19,208
219,680| ||||238,888| Governance costs includes payments to the auditors of £6,900 (2022- £6,900) for audit fees. |**10**|**Net movement in funds**|**2023**|**2022**| |---|---|---|---| |||**£**|**£**| ||Net movement in funds is stated after charging/(crediting)||| ||Fees payable to the company's auditor for the audit of the company's financial||| ||statements|6,900|6,900| ||Depreciation of owned tangible fixed assets|22,359|20,915| ||Loss on disposal of tangible fixed assets|6,901|-| ## **11 Trustees** None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year. - 27 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023** ## **12 Employees** The average monthly number of employees during the year was: |Volunteer programme, communications and fundraising
Administration
Total
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2023**
**Number**
23
4
27
**2023**
**£**
864,368
73,542
55,132
993,042|**2022**
**Number**
22
4| |---|---|---| |||26| |||**2022**
**£**
662,897
57,205
48,603| |||768,705| Total remuneration payable to key management personnel during the year was £127,834 (2022 - £124,454). The number of employees whose annual remuneration was £60,000 or more were: |**2023**
**Number**
In the band £60,001 - £70,000
1
**13**
**Other**
**Unrestricted**
**funds**
**2023**
**£**
Net loss on disposal of tangible fixed assets
6,901
6,901|**2022**
**Number**
1| |---|---| ||**Total**
**2022**
**£**
-| ||-| ## **14 Taxation** The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. - 28 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## **FOR THE YEAR ENDED 30 JUNE 2023** |**15**
**Tangible fixed assets**
**Leasehold**
**land and**
**buildings**
**Fixtures and**
**fittings**
**Motor vehicles**
**£**
**£**
**£**
**Cost**
At 1 July 2022
134,455
53,759
58,497
Additions
66,991
13,679
45,000
Disposals
-
-
(17,150)
At 30 June 2023
201,446
67,438
86,347
**Depreciation and impairment**
At 1 July 2022
119,477
40,489
41,291
Depreciation charged in the year
9,285
4,266
8,808
Eliminated in respect of disposals
-
-
(9,249)
At 30 June 2023
128,762
44,755
40,850
**Carrying amount**
At 30 June 2023
72,684
22,683
45,497
At 30 June 2022
14,978
13,271
17,206|**Total**
**£**
246,711
125,670
(17,150)
355,231
201,257
22,359
(9,249)
214,367
140,864
45,455| |---|---| - 29 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## **FOR THE YEAR ENDED 30 JUNE 2023** ## **16 Fixed asset investments** ||**Rental purchase**| |---|---| ||**agreements**| ||**£**| |**Cost or valuation**|| |At 1 July 2022|161,330| |Repaid in the year|(31,923)| |Disposals|(17,967)| |At 30 June 2023|111,440| |**Carrying amount**|| |At 30 June 2023|111,440| |At 30 June 2022|161,330| Rental Purchase Agreement investments arise from the historic cost of homes under Rental Purchase Agreements. The balance is reduced over a maximum of 25 years by the tenants in monthly instalments and is secured by a first charge over each property. ## **17 Stocks** |Habitat merchandise
**18**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors|**2023**
**£**
-
**2023**
**£**
32,780
329,646
362,426|**2022**
**£**
245| |---|---|---| |||**2022**
**£**
32,780
210,949| |||243,729| - 30 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## **FOR THE YEAR ENDED 30 JUNE 2023** |**19**
**Creditors: amounts falling due within one year**
**2023**
**£**
Other taxation and social security
28,018
Trade creditors
50,164
Accruals and deferred income
143,868
222,050
**Deferred income**
**£**
Deferred income at 1 July 2021
147,043
Resources deferred during the year
36,342
Amounts released from previous years
(147,043)
Deferred income at 30 June 2022
36,342|**2022**
**£**
26,881
14,502
164,506| |---|---| ||205,889| ||| The deferred income arises in respect of income being received in the year which relates to a future accounting period and in respect of income received in the year where conditions for recognition have not been satisfied. The income will be released to the Statement of Financial Activities in the period to which it relates. - 31 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023** ## **20 Restricted funds** |**Balance at**
**1 July 2021**
**r**
**£**
International Programme
-
Probation Board NI
-
DEAR EU Grant
-
Kerela Floods Appeal
1,650
Malawi Appeal
3,800
Nepal Appeal
126
Kombolcha Fund
5,538
Northern Ireland Housing Executive
-
Covid Appeal
474
Ukraine Appeal
-
The Gallaher Trust
-
JobStart
-
Sri Lanka
-
11,588|**Movement in funds**
**Incoming**
**esources**
**Resources**
**expended**
**£**
**£**
29,989
(29,989)
9,375
(6,188)
(8,539)
-
-
-
5,000
-
-
-
3,910
-
37,867
(37,867)
7,696
-
160,848
(35,000)
50,000
(41,667)
65,041
(65,041)
-
-
361,187
(215,752)|**Movement in funds**
**Transfers**
**Balance at**
**1 July 2022**
**Incoming**
**resources**
**Resources**
**expended**
**Balance at**
**30 June 2023**
**£**
**£**
**£**
**£**
**£**
-
-
129,535
(129,535)
-
-
3,187
6,075
(9,262)
-
8,539
-
-
-
-
-
1,650
-
(1,650)
-
-
8,800
195
-
8,995
-
126
-
-
126
-
9,448
-
(9,448)
-
-
-
15,500
(15,500)
-
-
8,170
-
(8,170)
-
-
125,848
142,366
(265,000)
3,214
-
8,333
41,667
(50,000)
-
-
-
40,090
(40,090)
-
-
-
3,991
(3,991)
-
8,539
165,562
379,419
(532,646)
12,335|**Movement in funds**
**Transfers**
**Balance at**
**1 July 2022**
**Incoming**
**resources**
**Resources**
**expended**
**Balance at**
**30 June 2023**
**£**
**£**
**£**
**£**
**£**
-
-
129,535
(129,535)
-
-
3,187
6,075
(9,262)
-
8,539
-
-
-
-
-
1,650
-
(1,650)
-
-
8,800
195
-
8,995
-
126
-
-
126
-
9,448
-
(9,448)
-
-
-
15,500
(15,500)
-
-
8,170
-
(8,170)
-
-
125,848
142,366
(265,000)
3,214
-
8,333
41,667
(50,000)
-
-
-
40,090
(40,090)
-
-
-
3,991
(3,991)
-
8,539
165,562
379,419
(532,646)
12,335| |---|---|---|---| ||||12,335| - 32 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023** ## **21 Explanatory note to the funds** ## **Unrestricted** This fund is expendable at the discretion of the directors. ## **Restricted** ## **International/Global Village Funds** This represents funds raised by local volunteer teams to support their participation in the Global Village programme and includes direct contributions to Habitat's work to alleviate poverty through housing alongside families in partner countries. Funds raised in excess of minimum donations becomes unrestricted and used where the need is greatest. ## **Probation Board NI** PBNI funding allows Habitat to provide work placements for those serving probation in the community. ## **DEAR EU Grant** DEAR aims to deliver increased understanding of Europeans in support of global housing, land and urban issues and commitment to SDG11. In Northern Ireland delivering Build Solid Ground is engaging the public, young people through formal and informal education and Habitat volunteers of all ages through a range of awareness raising and educational activities designed to deepen understanding and grow capacity. ## **Kerela Floods Appeal, Malawi Appeal and Nepal Appeal** Funds raised in support of Habitat’s longterm disaster response effort to flooding in Malawi, Nepal and in Kerala, India. ## **Kombolcha Fund** Funds raised to support a partnership project in Kombolcha, Ethiopia. ## **Northern Ireland Housing Executive** Funding to support the 'House to Home' project. ## **Covid Appeal** Funds raised in support of Habitat's response to the Covid 19 pandemic. ## **Ukraine Appeal** Funds raised in support of Habitat’s response to the war in Ukraine. ## **The Gallaher Trust** Funding to support Building Impact project in ReStore Ballymena which will deepen positive outcomes for local people by creating employment, delivering accredited OCN training and broader support for all volunteers. ## **JobStart** Department for Communities scheme which supported young people aged 16–24 at risk of long term unemployment to get into the job market through funded job opportunities. ## **Sri Lanka** Sri Lanka's Emergency Relief programme will support hundreds of the most vulnerable families with emergency dry food ration packs in the communities where Habitat works. ## **22 Transfers** In the prior year transfers were made from unrestricted funds to cover resources expended in excess of funds received. - 33 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023** |**23**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Restricted**
**funds**
**2023**
**2023**
**£**
**£**
Fund balances at 30
June 2023 are
represented by:
Tangible assets
140,864
-
Investments
111,440
-
Current assets/(liabilities)
781,344
12,335
1,033,648
12,335|**Total Unrestricted**
**funds**
**Restricted**
**funds**
**2023**
**2022**
**2022**
**£**
**£**
**£**
140,864
45,455
-
111,440
161,330
-
793,679
805,730
165,562
1,045,983
1,012,515
165,562|**Total**
**2022**
**£**
45,455
161,330
971,292| |---|---|---| |||1,178,077| ## **24 Operating lease commitments** At the reporting end date the charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: |Within one year
Between two and five years
In over five years|**2023**
**£**
249,288
711,672
25,750
986,710|**2022**
**£**
190,792
621,000
92,750| |---|---|---| |||904,542| ## **25 Related party transactions** ## **Transactions with related parties** During the year the charitable company entered into the following transactions with related parties: ## **Habitat for Humanity (Ireland) (a charitable company registered in Ireland)** During a prior year Habitat for Humanity Ireland Ltd and Habitat for Humanity (Ireland) aligned operational activities while retaining two legal entities. During the current and prior year management, human resources and administrative support was provided by the charity to Habitat for Humanity (Ireland) for no charge. At the year end Habitat for Humanity (Ireland) owed the charity £nil (2022 - £13,932). - 34 - ## **HABITAT FOR HUMANITY IRELAND LTD** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## **FOR THE YEAR ENDED 30 JUNE 2023** |**26**
**Cash generated from operations**
**2023**
**£**
(Deficit)/surpus for the year
(132,094)
Adjustments for:
Investment income recognised in statement of financial activities
(15,814)
Loss on disposal of tangible fixed assets
6,901
Depreciation and impairment of tangible fixed assets
22,360
Movements in working capital:
Decrease in stocks
245
(Increase)/decrease in debtors
(118,697)
Increase/(decrease) in creditors
16,161
**Cash (absorbed by)/generated from operations**
(220,938)
**27**
**Analysis of changes in net funds**
The charitable company had no debt during the year.|**2022**
**£**
382,987
(24,805)
-
20,915
-
129,285
(73,652)
434,730| |---|---| - 35 -