Charity Commission No. NIC 104023 HMRC Charity Reference- XR 93502 Company Registration No. N1020329 (Northern Ireland} TOWNSEND ENTERPRISE PARK LIMITED (A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
TOWNSEND ENTERPRISE PARK LIMITED (A COMPANY LIMITED BY GUARANTEE) CONTENTS Page Charity information Trustees, report Independent auditorfs report Statement of financial activities Balance sheet 10 Statement of cash flows 11 Notes to the financial ststements 12-21
TOWNSEND ENTERPRISE PARK LIMITED (A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION Trustees Paul Darragh Colin Skillen Rev John Lamb Heather Murray John Neill John Hunter Father Ciaran O'callaghan Linda Graham Gareth Nethercott Secretary Mrs M Patterson-mcmahon Charity number NIC 104023 Company number N1020329 Registered office Townsend Enterprise Park Townsend Street Belfasl BT13 2ES Auditor Moore IN.1.) LLP 4th Floor Donegall House 7 Donegall Square North Belfast BT1 SGB Bankers Bank of Iland 202 Andersonstown Rd Belfast BT11 9EB Solicitors Millar Mccall Wylie LLP Eastleigh House 396 Upper Newtownards Road Belfast BT4 3EY
TOWNSEND ENTERPRISE PARK LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2023 The trustees present their report and accounts for the year ended 31 March 2023. The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charitys Memorandum and Articles of Association. the Companies Act 2006 and "Accounting and Reporting by Charities= Statement of Recommended Practice applicable io charities preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland (FRS 1021" (as amended for accounting periods commencing from 1 January 2016). Objectives and activities The charity's objects are set out in the Memorandum and Articles of Association. The principal activities of the charity are that of.. {1) Promotion of urban regeneration for the public benefit in BelfasUGreater Belfast area and its environs (the "area of benefit"), by all or any of the following means.. Creation of training and employment opportunilies for the unemployed and underemployed by the provision of workspace, buildin9 andlor land for use on favourable terms; Provision of business advice or consultancy in order to provide training and employment opportunities for unemployed or underemployed people in cases of financial or other charitable need through help; (il in setting up their own business. Of {ii) io existing business or those considering establishing a business; The promotion and support of social enterprise and 5UStainable means of a¢hieving economic growth and regeneration; and The relief of unemployment in such ways as may be thought fit. (21 The advancement of community development in the area of benefit and in particular the promotion of the community and voluntary sector for the benefit of the public by providing facilities and other support to community and voluntsry groups. We have earned the reputation of being a major enterprise development player in Belfast having assisted many businesses, social enterprises and charities to start-up. develop and expand. We have also worked effectively with other stakeholders to lead the regeneration of importsnt aspects of the buill environment surrounding our premises and are making progress to promoie and celebrate the area's important industrial, cultural and social heritage credentials for the benefit of the wider community. The activities to meet our objectives are set out in an overall strategic framework based on four key pillars During this year under each of these themes the charity has had the following achievements and performance.
TOWNSEND ENTERPRISE PARK LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT {INCLUDING DIRECTORS. REPORT) {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Resources A high priority for Lts is to maintain jobs and support economic development in this area of high deprivation by continuing to offer suitable quality accommodation at favourable rates and subsidised service charge costs. Whilst these subsidies provided some private benefit to the owners of small businesses who rent the unit5 and offices we view this to be ancillary to the main purpose greally outweighed by the gains in public benefit which can be identified and measured through the sustained labour resource in the area, among other benefits. We maintained a high occupancy rate (averaging 96 % ) during the period, despite continued pressure on tenants arising from the 'cost of living, crisis and challenging funding environmenl for our third sector lenants, thus protecting jobs. and continuing to encourage economic and social regeneration. During the period we undertook substantial renovation and refurbishment to the fabric of buildings across the estate. This included replacement of several units. roofs and gutters, installation of a new shopfront and improved accessibility to the office building for disabled people, refurbishment of common areas, toilets and kitchens and upgrading of lighting and heating. These upgrades have improved the appeal of the office to existin9 and potential new tenants. improved energy efficiency and made the building more accessible lo all users. During the period we also reorganised our IT and communications services, moving to a manged support service which looks after our cyber security as well as infrastruclure and software. This has substantially improved our resilience and ability to recover from incidents wilhoul Ihe need to wait for hands-on IT support, ensuring thai neither we nor our tenants are without critical IT services for long. We will continue to invest in maintenance and upkeep of the estate more generally, prioritising works according to needs but ensuring that they remain fit for purpose and meet all staiutory and health and safety requirements. Regeneration Projects We have continued to execute our plans for Re-lmagining, Re-building & Re-connecting Townsend Street with a landmark industrial-styled canopy at the front of the building now inslalled referencing the important in(Justrial heritage of the site, and continued promotion of the 'Foundry Quarter. concept through ershanced internal exhibition space. Consultsnts have also been retained to support us with grant applications for a larger outdoor exhibition Space, with concept plans already produced. We have developed a strategic partnership with the Trustees of the Townsend Slreel. Belfast Presbyterian Endowments and the Ulsler Orchestra (which now occupies the next-door church and old school buildings) to further local understanding of the industrial. social and cultural heritage of the street with a view to promoting the area as a great place in which to live. work and invest. Initially. this has taken the form of applying together for area development funds, and we are excited lo have partners now with similar goals. In the development of these projects and partnerships we shall continue to explore and develop other initiatives to benefit the deprived area in which we are located. This is wilh a view to providing greater employment and training opportunities for the residents living in our area, leading to a reduction in unemployment and financial hardship. Community Investment & Linkages We continue to work with the local communities and other stskeholders. through various forums. in¢luding the Lower Falls and Shankill Forum and the Unwanted Bonfires Panel. with meetings being held lo address diverse issues which affect the wellbeing of the local community. including broader issues such as deprivation. inequality, and anti-social behaviour. Senior management also provides time, expertise and resources to support other charitable organisations which work in partnership with Townsend Enterprise Park and lor share complementary charitable objectives. Property maintenance and management services are also provided to certain charities. along with subsidised rent and support services where there is a clear alignmenl of charitable interests.
TOWNSEND ENTERPRISE PARK LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Training & Skills Development As we advants our work, we continue to review the skills and expertise required to aid future work and plans. The annLsal Investors in People assessment saw us maintain our Silver certification, demonstrating our continued commitment to a positive working environment in which everyone feels valued and able to contribute to the organisation's success. The training and skills development of all employees is reviewed during the annual performance review ensuring that they are up to date in all areas essential to our effective operation. During the period staff variously undertook IT training, health and safety at work training (such as manual handling, power washing, handling sharps, using ladders}. and heritage project training. Public Benefit The Trustees of the charity confirm that through the continued development and delivery of their objectives they have complied with their duty under the Charities Act {Northern Ireland) 2008 to have regard lo the Charity Commission for Northern Ireland guidance on public benefit and that this benefit has informed the activities of the charitable company during this year ended 31st March 2023. Achievements and performance Financial review Trading performance continues to be strong over the period, with occupancy levels being maintained at an average of 980/0. With increasing operaling costs both a rent and service charge increase were applied, however day-to-day expenditure is carefully managed as inflationary increases put pressures across all cost centres. The largest pressur8 is the extraordinary increases in our property insurance premium due lo no fault of the organisation. Our net deficil is attribulabl& to that increase from 2021-22. in addition to having to undertake larger maintenance work and repairs to roofing. Reserves Policy Our reserves policy is to retain a level of capitsl which allows us to meet our operational costs for a 4-month period in the event of a 50 /• drop in income together with a sum estimated to cover the redundancy costs for 500/0 of the staff (including associated professional costs) which would arise from the restructuring of its operations and workforce to reflect a lower operating income base. The specific amount is determined when setting and agreeing the annual financial budget for each new trading year and reviewed quarterly during the year. From time to time, we may retain more capital than is required by this policy to meet future anlicipated capital expenditure. perceived risks andlor to take advantage of investment opportunities. The reserves policy is reviewed regularly lat least annually) in line with our business operations and perception of associated risks. Plans for future periods We recognise the need lo maintain high occupancy levels in order to fund further renovation and restructuring works both lo our physical and digital infrastructure, whilst also seeking sources of alternative funding to deliver initiatives within the immediate locality with stakeholders and partners. Key risks We continue to assess our risk environment and monitor and mitigale these to the extent reasonably possible. Key risks include.. Financial.. a drop in income more than 15QA, or an un-mitigated increase in costs of 15°/0 {or some combination of the Iwo) would result in us running at a net deficit. Health & Safety.. the complex make-up of tenant industries and corresponding operational risks makes it difficult to effectively manage and mitigate health and safety risks. Key-person Risk: with a small management team the impact of any one members of staff being unavailable for a prolonged period is significant. We continue to manage these rtsks through regular assessment and preventstive and mitigating actions.
TOWNSEND ENTERPRISE PARK LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Structurei governance and management Townsend Enterprise Park Umited is a company limited by guarantee and is governed by a Board of Trustees. who meel monthly. Members are invlled by Ihe charity to serve on the Board on the basls of their area of interest and expertlse and Iheir wllingness to support the ethos. rnissk)n and values of the charfty. New members are normally elected al the AGM In October but the Board may al any time copt people who would hoid office untll Ihe next AGM. The Board ensures the govemance of the chaiity represents best practice. No business is transacted al a General Meeting unless a quorum is present. A quorum is three members. Unless determined by the thmpany in General Meeting. the number of trustees sh811 not be less Ihan three. the charily have sU00mMitteeS which meet on an ad-hoG basis; these are Finance. Personnel, Estates. Markellng, Strategy and Business OevelopmenL The charity holds an Annual General Meeflng eath year In addltlon to all other general meetlngs. DecSslons are made by passing resolutlons. The appoinlment of a tNstee will in the first Instance b8 dependent on the skills gap identffied wilhin the Board. Having identified a gap, the Board will seek to make thr6 known either through public advertisement or by approaching 8 body represenling the skill required e.g. The Law &rfaety. Expression of interest will be received by the submitting of a C.V. and letter ouilining whai they belleve they can bring to Ihe Board and Ihe organisalion. If follong an intervlew, the applicant is deemed sultable, a y8mmendation will be brought to the Board by a proposer and they wll then be duly appotnted by full agreement of all Irnstees. Each employee has an annual perfomiance appraisal conduthd, at tt]18 tlme salarfes, wlll be revlewed io ensure that they are Ilne w¢lh the role 3nd18vel of responsibility. The trustees, are also the diredors for the purpose of co8nY18w, and servad durlng the year and up to the dale of signature of the flnanaal statements were: Paul Darrdgh Colin Skillen Rev John Lamb Heather Murray John Nelll John Hunter Father Ciaran O'callaghan Llnda Graham G8relh Nethercolt Auditor The audltor, Moor8 {N.I.) LLP. is deemed to be reappointed under sectlon 487(2)- of the Compania$ Act 2006. Dlsclosure of information to audltor Each of the trustees has confimed that there Is no Informailon ol which they are aware which Is relevanl lo the audlt, bul of which the audilor is unaware. They have further confirmed thal they have iaken approprfate sleps to identlfy such relevant informatlon and to establish that the auditor is aware of such InfoTmation. The truslees, report was approved by the Board of Trusiees. Colin Sklllen Dated: 17 October 2023
TOWNSEND ENTERPRISE PARK LIMITED (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF TOWNSEND ENTERPRISE PARK LIMITED Opinion We have audited the financial statements of Townsend Enterprise Park Limited (the 'charity') for the year ended 31 March 2023 which comprise the ststement of financial activities, the balance sheet. the statement of cash flows and notes to the financial statements. including significant accounting policies. The financial reporting framework that has been applied in their preparalion is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom GenerallyAccepted Accounting Practice). In our opinion. the financial ststements: give a true and fair view of the state of the charitable company's affairs as al 31 March 2023 and of its 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 Acl 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing {UK) {ISAs IUKI) and applicable law. Our responsibilities under those standards are further described in the Auditorts responsibilities for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant lo our audit of the accounts in the UK. including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtsined is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial slatemenls. we have concluded that the trustees, use of the going concern basis of accounting in the preparalion of the financial ststements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively. may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respecl lo going concem are described in the relevant sections of this report. Other information The other information cornprises the infomation included in the annual report other than the financial statements and our auditorfs report thereon. The trustees are responsible for the other information contained within Ihe annual report. Our opinion on the financial statements does not covér the other information and, excèpt to the extent othernise explicitly stated in our report. we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otheNise appears lo be materially misstated. If we idenlify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material missiatement in the financial statements themselves. If. based on the work we have performed. we conclude that there is a material misstatement of this other information, we are required to report that faci. 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 our audit: the information given in the trustees, report for the financial year for which the financial statements are prepared, which includes the directors. report prepared for the purposes of company law, is consistent with the financial statements. and the directors, report included within the trustees. report has been prepared in accordance with applicable legal requirement5.
TOWNSEND ENTERPRISE PARK LIMITED (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF TOWNSEND ENTERPRISE PARK LIMITED Matters on which we are required to report by exception In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors, report included within Ihe trustees, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept, or retums adequate for our audit have not been received from branches not visited by us,. or the financial statements are not in agreement with the accounting records and retums- or certain disclosures of trustees, remuneration specified by law are not made- or we have not received all the infomiation and explanalions we require for our audit., or the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the trustees, report and from the requirement to prepare a strategic report. Responsibilities of trustees As explained more fully in the statement of Iruslees, responsibilities. the trustees, who are also Ihe directors of the charity 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 intemal control as the Iruslees determine is necessary to enable the preparation of financial stalemenls thal are free from material misstatement, whether due to fraud or error. In preparing the financial stalemenls, the Ifustees are responsible for assessing the charitys ability lo continue as a going concern, disclosing. as applicable, matters related to going concem 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 lo oblain reasonable assurance about whether the financial statements as a whole are free from material misstalement, whether due to fraud or effof. and to issue an audilols 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 matenal misststement when it exists. Misstatements can arise from fraud or error and are considered material if. individually or in the aggregale, they could reasonably be expected to influence the economic decisions of users tsken on the basis of these financial statements. The extent to which our procedures are capable of detecling irregularities, including fraud, is detailed below. Explanation as to what extent the audit was considered capable of detectlng irregularities, including fraud The objectives of our audit in respect of fraud, are. to idenlify and assess the risks of material rnisslatemenl of the financial statements due to fraud- to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatemeni due to fraud, through designing and implementing appropriate responses to those assessed risks,. and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detects'on of fraud rests with both management and those charged with governance of the charitable company. Our approach was as follows= We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2008. the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with govemance. We assessed the risk of material misststement of the financial statements, including the risk of material misstatement due to fraud and how it might occur. by holding discussions with management and those charged with governance.
TOWNSEND ENTERPRISE PARK LIMITED (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT {CONTINUED) TO THE TRUSTEES OF TOWNSEND ENTERPRISE PARK LIMITED As part of an audit in accordance with ISAS {UK} we exercise professional judgement and maintain professional scepticism throughout the audit. Wè also". Identify and assess the risks of material misstatement of the financial statements. whether due to fraud or error, design and perform audit procedures responsive to those risks. and obtain audit evidence that is sufficieni and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery. intentional omissions, misrepresentations. or the override of inlemal control. Obtain an tjnderslanding of intemal control relevant to the audit in order lo design audit procedures that are appropriate in the circumstances. but not for the purposes of expressing an opinion on the effectiveness of the charitable company's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting eslimates and related disclosures made by the trustees. Conclude on the appropriateness of the trustees, use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists relatèd to events or conditions that may casl significant doubt on the charitsble company's ability to continue as a going concem. If we ¢on¢lude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial ststements or, if such disclosures are inadequate. to modify our opinion. Our conclusions are based on the audit evidence obtained up lo the date of our auditor's report. However. future events or conditions may cause the charitable company to cease lo continue as a going concern. Evaluate the overall presentation. structure and content of the financial slatements, including the disclosures, and whether the financial statements represent the undertying trdnsactions and events in a manner that achieves fair presentstion. We communicate with those Charged with governance regarding, among other mattets, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in intemal control that we identify during our audit. A further description of our responsibilities is available on the Financial Reporting Council's website at.. https'.11 www.frc.org.uklauditorsresponsibilities. This description forms part of our auditorfs report. Use of our report This report is made soleSy to the company s members, as a body, in accordance wilh section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might slate lo the company's members those matters we are required to stale 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 company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. &fj Ik 4J Dr R I Peters Gallagher OBE FCA (Senior Statutory Auditor) for and on behalf of Moore (N.I.I LLP 17 October 2023 Chartered Accountants Statutory Auditor 4th Floor Donegall House 7 Donegall Square North Belfast BT1 5GB
TOWNSEND ENTERPRISE PARK LIMITED (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023 Unrestricted Restricted funds funds Total 2023 Total 2022 Notes Income and endowments from: Donations and legacie5 Charitable activities Other income 10,991 10.991 327.643 41,103 6,255 297,103 153,474 327,643 7,580 33.523 Total incorne 335,223 44.514 379,737 456,832 enditure on". Raising funds Charitable activities Other expenditure 9,789 375,764 9,789 375,764 5.676 13.319 329,023 168,359 11 5,676 Total resourcès expended 385.553 5,676 391,229 510,701 Net loutgoing)lincorning resources before transfers (50.330) 38,838 (11,492) {53,869} Gross transfers beeen funds 20,718 (20,718) Net lexpenditure)lincome for the yearl Net movemènt in funds (29,612) 18,120 (11,492) (53,869) Fund balances at 1 April 2022 975,162 975,162 1,029,031 Fund balances at 31 March 2023 945.550 18.120 963,670 975,162 The statement of financial activitiès 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.
TOWNSEND ENTERPRISE PARK LIMITED (A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET ASAT31 MARCH 2023 2023 2022 Notss Fixed assets Tanglble assets 13 847,697 810.551 Current ass8ts Oebtors Cash at bank and In hand 14 39,792 192,983 37.649 224.714 231775 262,363 Creditors: amounts falllng due withln one year 15 (116,802) {97,752} Net current assets 115,973 164,611 Total asse18 less eurrent Ilablllties 963.670 975,162 Incorne funds Restrictad funds Unr8strf¢wl lunds 18.120 945,550 975,162 963,670 975,162 The notes on pages 12 10 21 form part of these finandal statemenls. The flnandal Statements were approved by the Trusw on 17 October 2023 Colin Sklllen TNste• Company règistratlon number N1020329 10-
TOWNSEND ENTERPRISE PARK LIMITED (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023 2023 2022 Notes Cash flows from operating activities Cash generated from operations 21 66.228 34,756 Investing activities Purchase of tangible fixed assets (97.959) 142,918) Net cash used in investing activities (97,959) {42.918) Net cash used in financing activities Net decrease in cash and cash equivalents {31,731) {8,162) Cash and cash equivalents at beginning of year 224,714 232,876 Cash and cash equivalents at end of year 192.983 224.714 The notes on pages 12 to 21 form part of these financial statements. 11
TOWNSEND ENTERPRISE PARK LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Accounting policies Charity information Townsend Enterprise Park Lirnited is a private company limited by guarantee incorporated in Northern Ireland. The registered office is Townsend Enterprise Park. Townsend Street, Belfasl. BT13 2ES. 1.1 Accounting convention The accounts have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities.. Statement Df 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)" las amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterting. which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The principal accounting policies adopted are sel out below. 1.2 Going concern At the lime of approving the financial statements. the trustees have a reasonable expectation that the charity 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 fjnancial siaternents. 1.3 Charitable funds Unrestricted funds ar8 available for use at the discretion of the trustees in furtherance of their charitable objectives. Restricted funds are funds received which are earmarked by the donor for specific purposes. Such purposes are within the overall aims of the charity- Deficits on restricted funds are met by a transfer of an equivalenl amount from unrestricled funds. 1.4 Income Income is recognised when the charity is legally entitled lo it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donation5 are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under GiftAid or deeds of covenant is recognised at the time of the donalion. 12-
TOWNSEND ENTERPRISE PARK LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Accounting policies {Continued) 1.5 Expenditure All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of resources. Stsff costs and overhead expenses are allocated to activities on the basis of staff time spent on those activities. Cost of generating funds These include salaries, direct expenditure and overhead costs of staff who promote fundraising, including events and mailings. Charitable activities Charitable expenditure comprises those costs incurred by the charity in the delivery of ils activities and services for its beneficiaries. It includes bolh costs that can be allocated directly to such activities and those costs of an indirect nature necessary io supply them. Governance costs Governance costs include those incurred in the governan of its assets which are associated with constitutional and statutory requirements. Support costs Support costs include Central functions and are allocated to activity Cost categories on a basis consistent with the use of resources. 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 impaiment losses. Depreciation is recognised so as to write off the cost or valuation of Èssets less their residual values over their useful lives on the following bases: Land and buildings Plant and machinery Office equipent Internel equipment Refurbishment Improvements 20A straight line 25D/o reducing balance 25 /0 Straight line 100h straight line The gain or loss arising on the disposal of an asset is determined as the difference beeen the sale proceeds and the carying value of the asset, and is recognised in the statement of financial activities. 1.7 lrnpainnent of fixed assets At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impaimient loss. If any such indication exists, the recoverable amount of the asset is estimated in order 10 determine the extent of the impairment loss {if anyl- 1.8 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 liabiltties. 13-
TOWNSEND ENTERPRISE PARK LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Accounting policies {Continued) 1.9 Financial instruments The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 'Other Financial Instruments Issues. of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes paty to the contractual provisions of the instrument. Financial assets and liabilities are offset. with the net amounls presented in the financial stalements. when there is a legally enforceable right lo set off Ihe recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include debtots and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, wherè the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Basic financial liabilities Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing Iransaction. where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate melhod. Trade creditors are obligations to pay for goods or seNices that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not. they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Derecognition of financial liabilities Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or cancelled. 1.10 Employee benefits The cosi of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. 1.11 Retirement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. 1.12 Government Grants Government grants are recognised when it is reasonable to expect that the grants will be received and that all related condition5 will be met, usually on submission of a valid claim for payment. Govemment grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected uselul lives of the relevant assets by equal annual instalments. 14-
TOWNSEND ENTERPRISE PARK LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Accounting policies (Continued) 1.13 Taxation Townsend Enterprise Park Limited is a registered charity with HMRC and is entitled to certain tax exempt income and profits from investments in furtherance of the charity's primary objectives. if these surpluses are applied solely for charitable purposes. The charitable company is registered for VAT and accordingly, all its expenditure is recorded exclusive of any VAT incurred. 1.14 Reserves Policy The reserves policy of Townsend Enterprise Park Limited is to achieve a level of reserves which match the needs of the Charity both at the current time and in the foreseeable future. The reserves required will be sufficient to meet the running costs for a period equivalent to approximately 4 months annual expenditure. Critical accounting estimates and judgements In the application of the Charity'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 hislori¢al 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 estimatè is revised where the revision affects only that period, or in the period of the revision and future periods wher8 the revision affe¢ts both current and future periods. Donations and legacies Restrlcted Unrestricted funds funds 2023 2022 Grants receivable 10.991 6.255 Grants receivable for core activities Covid Job Retention Scheme Heritsge programme grant 6,255 10.991 10,991 6,255 Charitable activities Rental fees 2023 Rental fees 2022 Rental fees 327,643 297.103 15-
TOWNSEND ENTERPRISE PARK LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Other income Unrestricted Restricted funds funds Total Unfestricted funds Restricted funds Total 2023 2023 2023 2022 2022 2022 Other income Fire Insurance Income 7.580 7.580 33,523 23,474 23,474 130,000 33.523 130,000 7,580 33,523 41.103 23,474 130,000 153,474 Raising funds Unrestricted Unrestricted funds funds 2023 2022 Marketing and publicity Advertising 9,789 13,319 9,789 13.319 16-
TOWNSEND ENTERPRISE PARK LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Charitable activities 2023 2022 Stsff costs Depreciation and impairment Rates & water rates Insurance Electricity Premises expenses Telephone Printing, Postage & stationery Security General expenses Training costs Travel expenses Hospitality Bank charges & interest Bad debts 138.436 60,813 1,679 45.324 11,872 84,569 3.673 1,202 1,676 8,050 136,63S 58,844 1.805 21,602 14,243 55,511 5,160 1,509 365 5,206 250 24 879 355 14,850 80 357 371 5,564 363,666 317.238 Share of govemance costs (see note 8) 12,098 11,785 375,764 329.023 Support costs Support Governance costs costs 2023 2022 Audit fees Legal and professional 5,400 6,698 5,400 6,698 5,400 6,385 12,098 12,098 11,785 Analysed between Charitable activities 12.098 12,098 11,785 Governance costs includes payments to the auditors of £2.70012021'. £2,700) for audit services and £2,700 {2021 £3,625} in relation to other accountancylbookkeeping services. 17-
TOWNSEND ENTERPRISE PARK LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Trustees None of the trusteès {or any persons Connected with them) received any remuneration or benefits from the charity during the year, other than those referred to in the related party transactions note. 10 Employees The average monthly number of employees during the year was-. 2023 Number 2022 Number Administration Employment costs 2023 2022 Wages and salaries Other pension costs 134,872 3,564 133,071 3,564 138,436 136,635 There were no employees whose annual remuneration was £60.000 or more. 11 Other expenditure Restricted funds Restricted funds 2023 2022 Fire related expenditure Heritage Programme expenditu Belfast City Council Project Expenditure 2,688 2,760 228 166.559 1,800 5,676 168,359 12 Taxation The charity is exernpt 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 ils charitable objects. 18-
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TOWNSEND ENTERPRISE PARK LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 14 Debtors 2023 2022 Amounts falling due within one year: Trade debtors Other debtors Prep8yments and accrued income 8,894 5,629 25,269 12,904 4,716 20.029 39,792 37,649 15 Creditors: amounts falling due within one year 2023 2022 Other taxation and social security Payments received on account Trade creditors other creditors Accruals and deferred income 3,087 5,868 96.850 1,319 9,678 3,038 5,208 82,028 808 6,670 116,802 97,752 16 Retirement benefit schemes Defined contribution schemes The charity operate5 a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separalely from those of the charity in an independentiy administered fund. The charge to profit or loss in respect of defined contribution schemes was £3.564 {2022 - £3,564). 17 Analysis of net assets betwèen funds Unrestricted Restricted funds funds 2023 2023 Total Total 2023 2022 Fund balances at 31 March 2023 are represented by.. Tangible assets Current assetsllliabilities) 847.697 97,853 847,697 115.973 810,551 164,611 18,120 945,550 18,120 963,670 975,162 18 Financial commitments, guarantees and contingent liabilities The charitable company had no financial commitrnents. guarantees or contingent liabilities at the year end. On 16th March 2021 £20,000 was received from Belfast City Council via the Business Clustef and Community Grant. As at 31st March 2023. £9,889 remained available. -20-
TOWNSEND ENTERPRISE PARK LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 19 Related party transactions Remuneration of key management personnel The remuneration of key management personnel 15 as follows. 2023 2022 Aggregate compensation 95.905 90,668 There is no ultimate controlling party. Mr C Skillen is a trustee of the charitsble company and an employee in Diamond & Skillen Chartered Accouniants. During the year Diamond & Skillen Chartered Accountsnts invoiced the company a total of £1.10512022- £6001 for payroll services of which £410 12022: Nil) was due at the year end. £Nil was also invoiced for Job Retention Scheme seNi¢es12022. £415). 20 Llabillty of members Townsend Enterprise Park Limited is a company limited by guarantee. The liability of each member is limited to an amount not exceeding £1. 21 Cash generated from operations 2023 2022 Net income (11,492) {53,8691 Adjustmenls for.. Depreciation and impairment of tangible fixed assets 60,813 58,844 Movements in working ¢apitsl: Ilncrease) in debtors Increase in creditors (2,143) 19,050 {3,174) 32.9S5 Cash generated from operations 66,228 34,7S6 22 Analysis of changes in net funds The charity had no debt during the year. 21