REGISTERED COMPAINY NUMBER: N1018888 (Northern Ireland) RFGISTF.RED CHARITY NUMBER: NIC103294 GROUP REPORT OF THE TRUSTEES AND CONSOLIDATED FrfANcIAL STATEMENTS FOR THE YEAR ENI DED 31 DECEMBF.R 2022 FOR NORTHERN IRELAND TRADE UNION EDUCATIONAL& SOCIALCENTRELIMITED McAleer Jackson Ltd Chartered Accountants & Statutory Auditors Arthur House 41 Arthur Street BELFAST BTI 4GB
NORTHERN IRELAIYD TRADF. UNION FDUCATIONAL & SOCIAL CENTRE LIMITED CONTENTS OF THE COLNSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Page Group Report of the Trustees I to6 Report of the Independent Auditors 7t0 10 Consolidated Statement of Financial Activities (including income and expenditure account) Consolidated Statement of Financial Position 12to 13 Company Statement of Financial Position 14to 15 Consolidated Statement of Cash Flows and notes to Cashflows 16to 17 Notes to the Financial Statements 18to33
NORTHERN IRELAND TRADE UNION EDUCATIONAL & SOCIAL CENTRE LIMITED GROUP REPORT OF THE TRUSTEES FOR THE YEAR ENDF.D 31 DECEMBER 2022 REFERENCE AND ADMINISTRATIVE DETAILS Registered Company nulnber NIOI 8888 (Northern Ireland) Registered Charity number NIC103294 Registered office 45147 Donegall Street Belfast Co Antrim BTI 2FG Trustees J Bowers B Mackin K Doherty M Gray A Molloy A McKeown K Fleck (appointed 27.04.2022) Company Secretary B Mackin Auditors McAleer Jackson Ltd Chartered Accountants & Statutory Auditors Arthur House 41 Arthur Street BELFAST BTI 4GB Page I
NORTHERN tRELAND TRADE UNION EDUCATIONAL & SOCIAL CEN'TRE LIMITED GROUP REPORT OF THE TRUSTFFS FOR THE YEAR ENDED 31 DECEMBF.R 2022 cont'd The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the chaTity and the group for the year ended 31 D¢cember2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the FiTJancial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). OBJECTIVES AND ACTIVITIES Objectives and aims The objectives of the charity are to- promote equality through supporting the participation and inclusion of all individuals, groLLPS and comrniinities- provide support, education and training, and facilities to the unemployed and other groups suffering from social and economic disadvantage; be an innovative provider in effecting change towards a fair and inclusive society. STIL4TEGIC REPORT Achievement and performance Review of activilies The Charity continued to focus on the delivery, of programmes to support local communities in disadvantaged areas. The Charity works closely with its partners and funders, namely the Big Lottery Fund, Belfast City Council, EURES, Department of Foreign Affairs. Advice Nl, Department for the Economy and others. The Charity also continued to oversee the activities of affiliated social enterprises, providing guidance and support in respect of their activities. The John Hewitt Bar continued to provide bar and restaurant facilities in Belfast's Cathedral Quarter. However, from August 2022 this was leased to independent leaseholders. Access Skills Ireland Ltd continues to operate as an approved training provider, working throughout Ireland with State bodies and employers to re-skill and up-skill workers. BDA (Property Projects) Limited continues to provide workspace and support facilities to small businesses at the Portview Trade Centre premises, maintaining the high rates of oecupancy that have prevailed over recent years. Page 2
NORTHERN IRELAND TRADE UNION EDUCATIONAL & SOCIAL CENTRE LIMITED GROUP REPORT OF THE TRUSTF,F.S FOR THE YEAR ENDED 31 DECEMBER 2022 eont'd Inveslment policy andperformance The group's policy is to maximise total iT]vestment return from all of its assets whilst utilising these assets to deliver the company's principal charitable activities. The group has continued to invest in its related undertakings to reduce long terni dependence upon grant funding and increase commercial trading revenue. Financial review FinancEal position The financial results for the year are set out on pages I1- 12 following with the aecompanying notes to the financial statements. Reserves policy The reserves of the charity are set by the Management Committee and take the following into consideration- Holding reserves for the designated funds which reflect the objects of NITU; Recommending reserve levels which balance the variable nature of the income received, and the longer-tenn commitments of the charity to its various shareholders. The responsibilities of the Management Committee to the prudeTJt management of NITU; The reserves will be held primarily as investments or in the fomi of tangible assets; The level of reserves will be reviewed annuallv as part of the budget and planning process. This actual policy paper and levels of reserve will be revisited as part of the planning cycle. Withdrawal of funds from the reserves whether on an occasional or on a regular basis will only be made as a result of a decision taken at a ManageTnent Committee Meeting. The Trustees aim to maintain to sufficient free reserves in unrestricted, undesignated funds to bridge any funding gaps experienced by the charity, and to mitigate the risks and costs of unplanned closure of the organisation. The target level of funding to be held is £200,000. At the balance sheet date £30,456 of the charity's unrestricted funds after transfers were undesignated, which is significantly less than the targeted amount, but an increase on prior year. The Trustees and the Management Committee are considering all optiOTJS to secure and retain additional unrestricted funding for the forthcoming year. Page 3
NORTHERN IRELAND TRADE UNION EDUCATIONAL & SOCIAL CENTRE LIIMITED GROUP REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBFR 2022 cont'd Reserves policy (continued..) The Triistees aim to hold sufficient desi(vnated funds to support social enterprise activity and to enable those enterpriscs to operate with autonomy. In addition reserves are maintained to provide a hedge against the loss of traditional project funding for the delivery of NITUS objectives, and to fund the Charity's capital and Property maintenance plans lo fund for the upkeep and renewal of premises and to plan and execute capital type projects. The Trustees are satisfied the desiiynated funds remain adequate for the time being. Future plans The group plans to contlnue to develop innovative programmes for unemployed and disadvantaged individuals and groups. In addition, the Board actively seeks opportunities to develop social enteryrise activities that support its objectives. A key project under consideration by the Charity at present is the regeneration of parts of the Portview Trade Centre. In the short term the Trustees will also focus their attention to mitigating the impact of Covid-19 on the operations and prograTnmes undertaken by the group, and to develop alternative service delivery methods to ensure the Charity s objectives can be achieved. STRUCTURE, GOVERNANCE AND MANAGEMENT Charity constitution The company is registered as a company limited by guarantee. The company is constituted under a Memorandum of Association dated 21 October 1985 and is registered as a charity Wlth both the Charity CommissioT) for Northern Ireland and FIM Revenue & Customs. Method of appointment or election of Directors The oversight of the company and group is the responsibility of ihe management committee who are elected and co-opted under the terms of the Articles of Association. The management commiltee are Directors for the purposes of Company Law. Organisational structure and decision making The management committee is appointed by the company's members in accordance with the company's Memorandum and Articles of Association. The management are responsible for the governance of the company and group. Responsibility for the day to day operations of the compan), is delegated to the Directors and management team and perfomiance is reviewed on a monthly basis. Page 4
NORTHERN IRELAND TRADE UNION, EDUCATIONAL & SOCIAL CENTRE LIMITED GROUP REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 cont'd STATEMENT OF TRUSTEES RESPONSIBILITIES The trustees (who are also the directors of Northern Ireland Trade Union Educational & Social Centre Limited for the purposes of company law) are responsible for prcparin(T the Group Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company and group for that period. In preparing those financial statements, the trustees are requircd to select suitable accounting policies and then apply them consistently- observe the methods and principles in the Charity SORP. make judgements and estimates that are reasonable and prudent. state whether applicable accounting standards have been followed. subject to any material departures disclosed and explained in the financial statements- prepare th¢ financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other iegular1ties. In so far as the trustees are aware: there is no relevant audit information of which the charitable group's auditors are unaware; and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit infonnation and to establish that the auditors are aware of that informatiOT]. Page 5
NORTHERN IRELAND TRADE UNION EDUCATIONAL & SOCIAL CENTRE LIMITED GROUP REPORT OF THE TRUSTEES FOR THE YF.AR ENDED 31 DECF.MI BER 2022 cont'd AUDITORS The auditors, McAleer Jackson Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. Report of the trustees, incorporating a strategic reporL approved by order of the board of trustees, as the company director5, on 29 September 2023 and signed on the board's behalf by: J BOWERS Trustee Page 6
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF NORTHERN IRELAND TRADE UNION EDUCATIONAL & SOCIAL CF.NL TRF. LIMITED Opinion We have auditcd the consolidated financial statements of Northern Ireland Trade Union F.ducational & Social Centre Limited (the 'parent charity,) and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the consolidated Statement of Financial Activities, consolidated Balance Sheet, company balance sheet, consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of IreSand"' (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a true and fair view of the state of the group's and the parent charity's affairs as at 31 December2022 and of the group s incoming resources and application of resources, including its income and expenditure, for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice- and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of ihe financial statements in the UK, including the FRC'S Ethical Standard, and the provisions available for smaller entities in the circumstances set out in Note 27 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going Concern In auditing the financial statements. Nve have concluded that the trustees. use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustee with respect to going concern are described in the relevant sections of this report. Page 7
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF NORTHERN IRELAIND TRADE UNION EDUCATIONAL & SOCIAL CENTRE LIMITED cont'd Other information The trustees are responsible for the other inforniation. The other information comprises the information included in the annual report, other than the financial statement5 aTJd our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other infonnation and, except to the extent otheiSe explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other inforniation and, in doiT]g so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or othenvise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other infom]ation. If, based on the work we have perfomied, we conclude that there is a material misstatement of this other infonnation, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: the infonnation given in the Trustees, R¢port for the financial year for which the financial statements are prepared is consistent with the financial statements; and the Trustees, Report has been prepared in accordance with applicable legal requirements. Matters on Jvhich we are required to report by exception In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees, Report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us. or the financial statements are not in aoreement with the accounting records and retums. or certain disclosiires of director's remuneration specified by law are not made- or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Statement of Trustees Responsibilities set out on Page 5, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees detemiine is necessary to enable the preparation of fiT)ancial statements that are free from material misstatement. whether due to fraud or error. Page 8
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF NORTHERN IRELAND TRADE UNION EDUCATIONAL & SOCIAL CFNTRE LIMITED cont'd Responsibilities of trustees (cont'd) In preparing the financial statements, the trustees are responsible for assessing the group's and the parent charity's ability to continue as a going conccm. disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charity or to cease operations, or have no realistic alternative but to do so. Auditors, responsibilities for the audit of the financial statements OLir 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 a Report of the Auditors 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 fLnancial statements. We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perfonn 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 risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: the nature of the industry and sector, control environment and business performance including the Parent Charity & Group's remuneration policies, and its intemal and extemal performance targets; results of our enquiries of management and other key persons about the Parent Charity & Group's own identification and assessment of the risks of irregularities, including those that may occur either as a result of fraud or error, and matters we identified from our review of the Parent Charity & Group's policies. procedures and internal controls- and the matters discussed among the audit enga(Fement team regarding potential indicators of fraud and where it might occur in the financial statements. We also obtained an understanding of the legal and regulatory framework that the Parent Charity & Group operates in, focusing on provisions of those laws and regulations that had a direct effect on material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, pensions and tax legislation, charity legislation together with 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 Parent Charity & Group's ability to operate or to avoid a material penalty. This included conditions of fundinu from various bodies. Page 9
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF NORTHERN IRELAND TRADF. UNION EDUCATIONAL & SOCIAL CENTRE LIMITED cont'd Auditors, responsibilities for the audit of the fillancial statements (cont'd) From the above procedures, and in common with all audits under ISAS (UK), we identified the disclosure of adjusting items as a key audit matter with respect to potential risk of fraud, particularly in areas w'here management is required to exercise significant judgement. We tailored our response to those identified risks to include enquiring of management concerning actual and potential litigation and claims, perfonning analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material Inisstatement due to fraud, and reviewing correspondence with HMRC and other regulatory bodies. In addressing the risk of fraud through management override of controls, we tested the appropriateness of joumal entries and other adjustments. assessed whether the judgements made in making accounting estimates are indicative of a potential bias. and evaluated the business rationale of any significant transactions that are unusual or outside the nomial course of business, of which there were none. Whilst our engagement team were fully briefed on the fraud risks and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit, we draw attention to inherent limitations in the scope of audit procedures since fraud, by its nature, may itjvolve deliberate concealment, misrepresentation or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forn]s part of our Report of the Auditors. 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 and re(yulations made under that Act. 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 auditors, report and for no other purpose. To the fullest extent permirted by law, we do not accept or assume responsibility to anyone other than the parent charitable company and the charity's trustees as a body, for our audit work, for this report. or for the opinions we have formed. Michael Barnett (Senior Statutory Auditor) McAleer Jackson Ltd Chartered Accountants & Statutory Auditors Arthur Hoiise 41 Arthur Street BELFAST BTI 4GB Date: 29 September 2023 Page 10
NORTHERN IRELAND TRADE UNION EDUCATIONAL & SOCIAL CENTRE LIMITED CONSOLIDATF.D STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR EINDED 31 DECEMBER 2022 2022 Total funds 2021 Total funds Unrestricted Restricted funds funds Notes INCOME AND ENDOWMENTS FROM Donations and legacies Charitable activities Other trading activities Investment income Other grant income 105,019 105,019 223,881 315,699 484,489 82,819 41,935 276,563 369.076 455,041 200,270 223,881 315,699 484,489 82,819 Total 988,026 223,881 1,211,907 1,342,885 EXPENDITURE ON Other trading activities Charitable activities Governance Investment activities Foreign exchange on consolidation Taxation 451,417 143,884 8,666 611,170 3,4)2 23,989) 451,417 297,352 25,947 611,170 3,452 (23,989) 484,255 350,758 22,693 525,542 (1,476) 9,121) 10 10 153,468 17,281 Total 1,194,600 170,749 1,365,349 1,372,651 NET tNCOME/(EXPENDITURE) (206,574) 53,132 (153,442} (29,766) Net gain/(loss) on Investments Transfers between funds (83,418) 1,481) (83,418) 20,361 25 1,481 Net movernent in funds {291,473) 54,613 (236,860) (9,405) RECONCILIATION OF FUNDS Total funds brought forward 3,074,597 54,2)3 3,128,850 3,138,255 TOTAL FUNDS CARRIED FORWARD 2,783,124 108,866 2,891,990 3,128,850 The notes form part of these financial statements Pagell
NORTHERN IRELAND TRADE UNION EDUCATIONAL & SOCIAL CENTRE LIMITED CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2022 2022 Total funds 2021 Total fijnds Notes FIXED ASSETS Intangible assets Tangible assets Investments Investment property 15 16 17 18 i58J76 524,293 1,8i2,683 555,238 579,019 1,852,683 2,93i,352 2,986,940 CURRENT ASSETS Stocks Debtors Cash at bank and in hand 19 20 6,359 159,283 750,776 157,673 407,221 564,894 916,418 CREDITORS Amounts falling due within one year 21 396,825 513,124 NET CURRENT ASSETS 168,069 403,294 TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS Amounts falling due after more than one year PROVISION FOR LIABILITIES 3,103,421 3,390,234 22 192,186 19,245 2,891,990 218,150 43,234 3,128,850 24 NET ASSETS FUNDS Unrestricted funds Restricted funds 25 2,783,124 108,866 3,074,597 54,253 TOTAL FUNDS 2,891,990 3,128,850 The notes form part of these financial statements Page 12 continued..
NORTHERN IRELAND TRADE UNION EDUCATIONAL & SOCIAL CENTRE LIMITED CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2022 cont'd The trustees acknowledge their responsibilities for-_ (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which othenvise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 regarding small companies and S398 of the Companies Act 2006 regarding group accounts. I'hese financial statements have been audited under the requirements of Section 144 of the Charities Act2011. The financial statements were approved by the Board of Trustees on 29 September 2023 and were signed on its behalf by= J BOWERS Trustee B MACKIN Trustee The notes form part of these financial statements Page 13 continued...
NORTHERN IRELAND TRADE UNION EDUCATIONAL & SOCIAL CEN'fRE LIMITED COIWANY BALANCE SHEET AT 31 DECEMBFR 2022 2022 Total funds 2021 Total funds Notes Investments Investments Investment property 17 18 250,002 603,948 250,002 603,948 853,950 853,950 CURRENT ASSETS Debtors Cash at bank and in hand 20 168,677 73,734 257,893 100,369 242,411 358,262 CREDITORS Amounts falling due within one year 21 257,039 326.693 NET CURRENT ASSETS 14,628) 31,569 NET ASSETS 839,322 885,519 FUNDS Unrestricted funds Restricted funds 25 730,4)6 108,866 831,266 54,253 TOTAL FUNDS 839J22 885,519 The notes forn] part of these financial statements Page 14 continued.
NORTIIERN IRELAND TRADE UNION EDUCATIONAL & SOCIAL CENTRE LIMITED COMPANY BALANCE SHEET AT 31 DECEMBER 2022 cont, The financial statetnents have been prepar&1 in accordance with Part 15 of the Companies Act 2006 regarding small companies. The financial ststements were approved atkd authoIised by the Board of Tn on 29 Septen]ber 2023 and were signed on its bebalf by: JBO Trustee B MACKIN Trnstee The notes forni part of fiDanciaI stat¢mcllts Page 15
NORTHERN IRELAND TRADE UNION EDUCATIONAL & SOCIAL CENTRE LIMITED CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022 2022 2021 Notes Cash flows from operating activities: Cash generated from operations Interest paid Tax paid (222J79) (8,471) 18.397 (7,441) Net cash provided by (used in) operating activities 230,850) 110,956 Cash flows from inN'esting activities: Purchase of listed investmcnts Proceeds from sale of listed investments Purchase of tangible fixed assets Purchase of investment property (137,765) 108,843 (17,087} (189,469) 552,407 (8,727) 285,740) Net cash provftded by (used in) investing activities 46,009) 68,471 Cash flows from fillancing activities: New loans in year Loan repayments in year Capital grants received (26,896) (17,183) 135,000 Net cash provided by (used in) financing activities 26,896) 117,817 Change in cash and cash equivalents in the reporting period Cash and cash eqUI.alellts at the beginning of the reporting period (303,755) 297,244 665,051 367,807 Cash and cash equiv21ents at the end of the reporting period 361,296 665.051 The notes forn] part of these financial statements Page 16
NORTHERN IRELAND TRADE UNION EDUCATIONAL & SOCIAL CENTRE LIMITED NOTES TO THF. CONI SOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022 RECONCILIATION OF NET INCOMEI{EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES 2022 2021 Net income/{expenditure) for the reporting period (as per the statement of finAncial actiTrities} (236,860) (9,405) Adjustments for: Depreciation charges {Profit)/Loss on disposal of investments Finance costs Deferred grant released to P&L Revaluation loss / (gain) Tax charge (Incrcase)Idecrease in stocks {Increase)decrease in debtors Increase/(decrease) in creditors 13,949 230 8,471 12,979 179 7,441 (1,062) (20,361) (9,121) (1,580) 28,693 10,634 83,418 (23,989) 6J59 1,610 75,i67) Net cash provided by (used in) operating activities 222,379 118,397 ANALYSIS OF CASH AND CASH EQUIVALENTS 2022 2021 Cash at bank and in hand Overdrafts included in bank loans and overdrafts falling due within one year 407,221 750,776 (45,925) 85,725) Total cash 2nd cash equivalents 361,296 665,051 Page 17
NORTHERN IRELAND TRADE UNION EDUCATIONAL & SOCIAL CENTRE LIMITED INOTES TO THF. FINANCIAL STATEIMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 GENERAL INFORMATION The charity is a private company limited by guarantee: registered in Northern Ireland and a registered charity in Northern Ireland. The address of the reoistered office is 45147 Donegall Street, Belfast, Co Antrim, BTI 2FG. STATEMENT OF COMPLLINCE These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland,. the Statement of Recommended Practice applicable to Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Charities Act (Northern Ireland) 2008. ACCOUNTING POLICIFS Basis of preparing the finallcial statements The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure. The financial statements are prepared in sterling, which is the functional currency of the entity. Critical accountino estimates and areas of judgement Estimates and judgements are requircd ivhen appls ing accounting policies. These are continually evaluated and are based on historical experience and other factors. including expectations of future events that are believed to be reasonable under the circumstances. The company makes estimates and assumptions concerning the future, which can involve a high degree of judgement or complexity. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below- a) Market value of illvestment properties Estimates are made in respect of the market value of investment properties. When assessing the market valiie of these assets, factors including current rent receivable and available data on current market yields and activity are considered. Page 18
NORTHERN IRELAIYD TRADE UNION EDUCATIONAL & SOCIAL CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECF.ME BER 2022 cont'd ACCOUNTING POLICIES - continued b) Useful economic lives of tangible assets The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on future investments, economic utilisation and the physical condition of the assets. Going concern The trustees have assessed, based on the anticipated activities of the charity and the gTOUP, that there are adequate resources in place to meet the on-going costs of the group for a minimum of 12 months from the date of signing of the financial statements. In coming to this conclusion, the trustees hav¢ assessed the entity's current financial arrangements and resources of the group as a whole and have obtained confirn]ation that financial support will be made available between fellow group companies, if required. For this reason the financial statements have been prepared on a going concern basis which presumes the realisation of asset5 and liabilities in the normal course of business. Company status The company is a company limited by guarantee. The members of the company are the Trustees named on page l. In the event of the company bein(T wound up, the liability in respect of the guarantee is limited to £1 per member of the company. The registered office is 4547 Donegall Street. Belfast, BTI 2FG. The principal activity of the company is other social work activities without accommodation not elsewhere classified. Basis of Consolidation Northern Ireland Trade Union Educalional and Social Centre Limited considers that wliere the organisation is the sole member of a company limited by guarantee, these entities should be treated as wholly owned subsidiaries by virtue of common control. The parent charity has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual Statement of Financial Activity. Income All Income is recogTJised in the Statement of Financial Activities once the charity has entitlement to the funds. it is probable that the income will be received, and the amount can be measured reliably. Page 19
NORTHERN IRELAND TRADE UNION EDUCATIONAL & SOCIAL CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 cont'd ACCOUNTING POLICIES - continued Expenditure Liabilities are recognised as expcnditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in sertlement and the amounl of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources. Investtnents Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost 2nd subsequently measured at fair value at the Balance Sheet date, unless fair value cannot be measured reliably in which case it is measured at cost less impainnent. Invcstment gains and losses, Ivhether realised or unrealised, are combined and shown in the heading 'Gainsl{losses) OT] investments. in the Statement of Financial Activities incorporatiT)g Income and Expenditure Account. Tangible fixed assets Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Freehold property Plant & machinery Fixtures. fittings & equipment 2% straight line 20 % straight line 20 % straight line Investment property Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in market value is transferred to a revaluation reserve. It has not been depreciated. Taxation The charity is exempt from tax on income and gains falling within S505 of the Taxes Act 1988 or S252 of TCGA 1992 to the extent that these are applied to its charitable activities. The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Paiye 20
NORTHERN IRELAND TRADE UNION EDUCATIONAL & SOCIAL CENTRF. LIMITED NOTES TO THE FINAN'CIAL STATEMENTS FOR THE YF.AR ESI'DED 31 DECEMBER 2022 cont'd ACCOUNTING POLICIES- continued Taxatloll (continued..) Current tax is recognised on taxable income or expenditure for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax recognised in respect of all timing differences at the reportiniy date. Unrelieved tax losses and other deferred tax assets are reco(ynised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantivcly enacted by the reporting date that are expected to apply to the reversal of the timing differences. Fund accounting Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particulaT restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted PULyoses. Designated funds comprise unrestricted ndS that have been set aside by the Trustees for particular purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. Provisions Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at. Debtors and creditors receivablelpayable within one year Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transactional price. Any losses arising from impaimient are recognised in the Consolidated Statement of Financial activities in other trading activities. Other income Other income is accounted for as it is received and credited to the profit and loss account. Page 21
NORTHERN IRELAND TRADE UINION EDUCATIONAL & SOCIAL CENTRF. LIMITED NOTES TO THE FINANCIAL STATF.MEINTS FOR THE YEAR ENDED 31 DECEMBF.R 2022 cont'd DONATIONS AND LEGACIES 2022 2021 Other income 105,019 41,935 INCO FROM CHARITABLE ACTIVITIES 2022 2021 Activity Charitable activities Charitable activities Charitable activities Charitable activities Charitable activities Charitable activities Charitable activities Charilable activities Charitable activities Big Lottery Fund Belfast City Council CBPES Belfast Met Department for Communities Co-operation Ireland Donegal Peace IV Heritage Lottery Fund Community Fund- Diverse Youth 90,853 5),315 29,313 25,118 19,850 3,432 96,710 41,715 30,013 36,966 13,473 48,467 9,219 223,881 276,563 IINCOME FROIM OTHER TRADING ACTIVITIES 2022 2021 Subsidiary trading activities 315,699 369,076 IINVESTMENT INCOME 2022 2021 Rents and service charges received Loss on disposal of listed inveslments Income from fixed assets investments 474,723 (230) 443,279 (179) 484,489 455,041 Page 22
NORTHERN IRELAND TRADE UNION EDUCATIONAL & SOCIAL CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR EIS'DED 31 DECEIMBER 2022 cont'd OTHER GRANT INCOME 2022 2021 Covid-19 supports 82,819 200,270 COSTS OF OTHER TRADING ACTIVITIES 2022 2021 Trading costs Finance costs 442,946 8,471 476,814 7,441 451,417 484,255 10. CHARITABLE ACTIVITIES COSTS 2022 2021 Charitable activities GovemaT)ce 297J52 25,947 350,758 22,693 323299 373,451 GOVERNANCE COSTS Unrestricted Restricted funds funds Total funds Total funds 2022 2022 2022 2021 Direct costs - Governance 8,666 17,281 25,947 22,693 Paiye 23
NORTHERN IRELAND TRADE UNION EDUCATIONAL & SOCIAL CENTRE LIMI ITF.D NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR EIS'DED 31 DECEMBER 2022 cont'd 11. COSTS OF INVESTMENT ACTIVITIES 2022 2021 Property management costs 611,170 525.542 12. NET llYCOME/(EXPF.NDITURE) Net income/(expenditure) is stated after char(Fing/(crediting): 2022 2021 Depreciation owned assets Audit fee 13,949 3,780 12,979 3,000 17,729 15,979 13. TRUSTEES, REMUNERATION AND BENEFITS There were no trustees, remuneration or other benefits for the year ended 31 December 2022 nor for the year ended 31 December 2021. Trustees, expenses There were no trustees, expenses paid for the year ended 31 December 2022 nor for the year ended 31 December 2021. Page 24
NORTHERN IRELAND TRADE UNION EDUCATIONAL & SOCIAL CENTRE LIMITED INOTES TO THE FINI ANCIAL STATEKENTS FOR THE YF,AR ENDED 31 DEcEIBF.R 2022 cont'd 14. STAFF COSTS 2022 2021 Wages and salaries 367,923 480,852 The average monthly number of employees during the year was as follows: 2022 2021 Support staff 19 22 No employees received emoluments in excess of £60,000. IS. INTIINGIBLE FIXED ASSETS Group Licence COST At l January 2022 and 31 December 2022 i8,195 AMORTISATION At l January 2022 At 31 December 2022 58,195 58,195 NET BOOK VALUE At 31 December 2022 At 31 December 2021 Page 25
NORTHERN IRELAND TRADE UNION EDUCATIONI AL & SOCIAL CENTRE LIMITF.D NOTES TO THE FINANCIAL STATEIVIENTS FOR THE YF.AR ENDED 31 DECEMBER 2022 cont'd 16. TANGIBLE FIXED ASSETS Group Fixtures Freehold Plant & fittings & property machinery equipment Totals COST At l January 2022 Additions 6i9,521 89,569 102,178 17,087 851268 17,087 At 31 December 2022 659,521 89569 119,265 868,355 DEPRECIATION At l January 2022 Charge for year At 31 December 2022 122,708 7,790 81,872 2,748 91,4iO 3,411 296,030 13,949 130,498 84,620 94,861 309,979 NET BOOK VALUE At 31 Dccember 2022 i29,023 4,949 24,404 i58J76 At 31 December 2021 536,813 7,678 10,747 555,238 Fixtures, fittings & equipment Company COST At l January 2022 and 31 December 2022 DEPRECIATION At l Januar), 2022 and 31 December 2022 NET BOOK VALUE At 31 December 2022 61,213 61,213 At 31 December 2021 Page 26
NORTHERN IRELAND TRADE UN'ION EDUCATIONAL & SOCIAL CF.NTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 cont'd 17. FIXED ASSET INVESTMENTS Group Listed investments COST OR VALUATION At l January 2022 Additions Valuation changes Disposals 579,019 137,765 (83,418) 109 073 NET BOOK VALUE At 31 December 2022 524,293 At 31 December 2021 579,019 All investments shown above are held at valuation. Compan), 2022 2021 Shares Capital contribution 250,000 250,000 250,002 250,002 Page 27
NORTHERN IRELAND TRADF UNION F.DUCATIONAL & SOCIAL CENTRE LIMITED NOTES TO THE FINANCIAL STATEMF.NTS FOR THE YEAR ENDED 31 DECF.MBER 2022 cont'd 17. FIXED ASSET II¥VESTMF.NTS- continued There were no investment assets outside the UK. The company's investments at the balance sheet date in the share capital of companies include the following- B.D.A. (Property Projects) Limited Registered office.. Portview Trade Centre, 31 O NewLownards Road, Belfast, BTI IHE Nature of business.. Business support service activities Class of share: Ordinary shares holding 100 The following companies are limited by guarantee. Northern IrelaT)d Trade Union Educational & Social Centr¢ Limited is the sole member of each of the companies, and therefore exercises COT)trol. Company name Community Training & Research Services Limited Access Skills Ireland Limited Access Skills Ireland CLG Radius (N.I.) Limited Radius Training Limited Registered Northern Ireland Northern Ireland Republic of Ireland Northern Ireland Republic of Ireland 18. INVESTMENT PROPERTY Group MIIRKET VALUE At l January 2022 and 31 December 2022 1,852,683 NET BOOK VALUE At 31 December 2022 1,852,683 At 31 December 2021 1,852,683 Page 28
NORTHERN IRELAND TRADE UNION EDUCATIONAL & SOCIAL CENTRE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR EINDED 31 DECEMBER 2022 cont'd 18. INVESTMENT PROPERTY - continued Company MARKET VALUE At l January 2022 and 31 December 2022 603,948 NET BOOK VALUE At 31 December 2022 603,948 At 31 December 2021 603,948 19. STOCKS Group 2022 2021 Stock 6,359 20. DEBTORS Group 2022 2021 Trade debtors Other debtors Prepayments 81,600 55,432 20,641 32,964 68,201 58,118 157,673 159,283 Company 2022 2021 Other debtors Intercompany debtors Prepayments 44,960 116,839 6,878 68,201 182,395 7,297 168,677 257,893 Page 29
NORTHERN IRELAND TRADE UNION EDUCATIONAL & SOCIAL CENTRE LIMITED NOTES TO THE FINAINCLAL STATEMENTS cont'd FOR THE YFAR ENDED 31 DECEMBER 2022 21. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group 2022 2021 Bank loans and overdrafts (see note 23) 'Frade creditors Taxation and social security Other creditors Accruals and deferred income 73,028 70,894 2,015 47,093 203,795 113,760 69,324 12,760 610 316,670 396,825 513,124 Company 2022 2021 Bank loans and overdrafts (see note 23) Other creditors Intercompany creditors Accruals and deferred income 45,925 537 180,000 30,577 85,725 386 180,000 60,582 257,039 326,693 22. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR Group 2022 2021 Bank loans (see note 23) 192,186 218,150 23. SECURED DEBTS The following secured debts are included within Cditors. 2022 2021 Bank overdrafts Bank loans 45,92) 219,289 85,725 246,185 265,214 331,910 The bank overdrafts are secured by an all monies debenture held giving a fixed and floating charge over the compan), assets. The bank loans are secured a(yainst assets of a subsidiary company. Pa(Fe 30
NORTHERN IRELAND TRADE UNION EDUCATIONAL & SOCIAL CENTRF. LIMITF.D NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 cont'd 24. PROVISIONS Group Deferred tax Balance at l January 2022 Movement during year 43,234 (23,989) Balance at 31 December 2022 19,245 25. MOVEMENT IN FUNDS Group Gainl(Loss) on At 1.1.2022 Net Movement At 31.12.2022 Transfers investments Unrestricted funds Unrestricted funds Designated Social Enterprise funds Other Designated funds 19,693 (99J29) 110,092 30,456 2243,331 (107245) (83,418) 2,052,668 811,i73 3,074,597 111,i73 (1,481) 700,000 2,783,124 (206574) (83,418) Restricted funds Big Lottery Fund Belfast City Council CBPES Belfast Met Dept for Communities Community Fund - Diverse Youth 11,534 42,719 20,)60 19,426 14,627 (278) (1,090) (113) 11,534 42,719 278 1,090 113 54,253 53,132 1,481 108,866 TOTAL FUNDS 3,128,850 (153,442) 83,418) 2,891,990 Page31
NORTHERN IRELAND TRADE UNION EDUCATIONAL & SOCIAL CF.NTRE LIMITED NOTES TO THE FINAN'CIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 cont'd 25. MOVEMENT IN FUNDS - continued Net movement in funds. included in the above are as follows: Group Incoming Resources Moven]ent resources expended in funds Unrestricted funds Unrestricted fund 988,026 (1,194,600) (206,574) Restricted funds Big Lottery Fund Belfast City Council CBPES Co-operation Ireland Belfast Met Community Fund- Diverse Youth Department for Communities 90,853 i5,315 29,313 3,432 25,118 (70293) (35,889) (14,686) (3,432) (2iJ96) (1,090) 19,963) 20,560 19,426 14,627 (278) (1,090) 113) 19,850 223,881 (170,749) 53,132 TOTAL FUNDS 1,211,907 1,365 J49) (153,442) 26. LEGAL STATUS The Charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1. 27. FRC ETHICAL STANDARD- PROVISIONS AVAILABLE FOR SMALLER ENTITIES In common with many other organisations of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements. Page 32
NORTHERIN IRELAND TRADE UNION EDUCATIONAL & SOCIAL CENTRE LIMITED NOTFS TO THE FIINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 cont'd 28. RELATED PARTY DISCLOSURF.S The company has taken advantaiye of the exemption under FRS102 Section 33 'Related Party Disclosures, not to disclose transactions with its group undertakings. 29. CONTINGENT LIABILITIES The group has received government grants relating to fixed assets which are being deferred over the life of the assets. The receipt of these monies is subject to conditions which if are not met may result in the grants being repayable by the group. The group expects to meet the conditions of the grants. Since 2012, a group company has Provided a guarantee to the bank on behalf of The Fellowship of Messines Association. In the event that the guarantee is called upon, the group company shall seek recourse from the Association's trustees. Page 33