Fighting Words Northern Ireland Company Limited by Guarantee Statement of Financial Activities (including income and expenditure account) Year ended 31 March 2023 2023 Restricted funds Total funds 2022 Unrestricted funds Total funds Note Income and endowments Donations and legacies Charitable activities Other income 12.091 13,841 8,569 12,091 405,647 8,569 9.962 154.824 440 391.806 Total income 34,501 391,806 426,307 165,226 Expenditure Expenditure on charitable activities Total expenditure 24,246 287,439 311,685 209.025 24.246 287,439 311,685 209.025 Net incomel(expenditure) 10,255 104,367 114,622 (43,799) Transfers between funds 36.294 (36,294) Net movement in funds 46.549 68,073 114,622 (43.799) Reconciliation of funds Total funds brought forward Total funds carried forward 50,928 93,161 144,089 187,888 97,477 161,234 258,711 144,089 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The notes on pages 15 to 29 fomi part of these financial statements. 13
Fighting Words Northern Ireland Company Limited by Guarantee Statement of Financial Position 31 March 2023 2023 2022 Note Fixed assets Tangible fixed assets 15 26,568 31.997 Current assets Debtors Cash at bank and in hand 16 85,588 152,664 2,532 123.615 238,252 126.147 Creditors: amounts falling due within one year Net current assets 17 6,109 14.055 232,143 112.092 Total assets less current liabilities 258,711 144.089 Net assets 258,711 144,089 Funds of the charity Restricted funds Unrestricted funds 161,234 97,477 93,161 50,928 Total charity funds 19 258,711 144,089 For the year ending 31 March 2023 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. Directors, responsibilities: The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies, regime. These financial statements were approved by the board of trustees and authorised for issue on 11 December 2023, and are signed on behalf of the board by: /• A Gallagher Trustee T Newell Trustee The notes on pages 15 to 29 fomi part of these financial statements. 14
Fighting Words Northern Ireland Company Limited by Guarantee Notes to the Financial Statements Year ended 31 March 2023 General information The charity is a public benefit entity and a private company limited by guarantee. registered in Northern Ireland and a registered charity in Northern Ireland. The address of the registered office is Connwater Shopping Centre, Bloomfield Avenue. Belfast, BT55LP. Statement of compliance 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 Companies Act 2006. Accounting policies Basis of preparation The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and 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. Going concern There are no material uncertainties about the charity's ability to continue. Judgements and key sources of estimation uncertainty The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Foreign currencies Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date. with any gains or losses being taken to the statement of financial activities. 15
Fighting Words Northern Ireland Company Limited by Guarantee Notes to the Financial Statements (Continued) Year ended 31 March 2023 Accounting policies (Continued) Fund accounting Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes. Designated funds are unrestricted funds eamiarked by the trustees for particular future project or commitment. Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the temis of an appeal. and fall into one of two sub-classes.. restricted income funds or endowment funds. Incoming resources All incoming resources are included in the statement of financial activities when entitlement has passed to the charity- it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income: income from donations or grants is recognised when there is evidence of entitlement to the gift. receipt is probable and its amount can be measured reliably. legacy income is recognised when reIpt is probable and entitlement is established. income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably. in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers. income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contraclual requirement for it to be spent on a particular purpose and retumed rf unspent. in which case it may be regarded as reslricted. 16
Fighting Words Northern Ireland Company Limited by Guarantee Notes to the Financial Statements (Continued) Year ended 31 March 2023 Accounting policies (Continued) Resources expended Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered. and is classified under headings of the statement of financial activities to which it relates= expenditure on raising funds indudes the costs of all fundraising activities, events. non-charitable trading activities, and the sale of donated goods. expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities. other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities. All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity- Shared costs are apportioned between the activities they contribute to on a reasonable. justifiable and consistent basis. Tangible assets Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impaimient losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses. unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain. in which case the loss is shown within other recognised gains and losses on the statement of financial activities. Depreciation Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows.. Long leasehold property Equipment 100/0 Straight line 200k straight line Impaiment of fixed assets A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal al each reporting date. 17
Fighting Words Northern Ireland Company Limited by Guarantee Notes to the Financial Statements (Continued) Year ended 31 March 2023 Accounting policies (Continued) Impairnient of fixed assets (continued) For the purposes of impainnent testing. when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the gdwIll acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units. Financial instruments A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the amount re1vable or payable including any related transaction costs. Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discA)unted. Debt instruments are subsequently measured at amortised cost. Where investments in shares are publicly traded or their fair value can otheNise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. Al other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives. are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities. with the exception of hedging instruments in a designated hedging relationship. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised. For all equity instruments regardless of signtrican, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. 18
Fighting Words Northern Ireland Company Limited by Guarantee Notes to the Financial Statements (Continued) Year ended 31 March 2023 Accounting policies (Continued) Financial instruments (continued) Any reversals of impairment are recognised immediately. to the extent that the reversal does not result in a carying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. Defined contribution plans Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises. Limited by guarantee Fighting Words Northem Ireland is a company limited by guarantee and has no share capital. In the event of the charity being wound up. the liability in respect of the guarantee is limited to £1 per member of the charity Donations and legacies Unrestricted Funds Restricted Total Funds Funds 2023 Donations Donations Black Santa (Belfast Cathedral) Page Turners 12,091 12.091 12,091 12.091 Unrestricted Funds Restricted Total Funds Funds 2022 Donations Donations Black Santa (Belfast Cathedral) Page Turners 6,552 6.552 450 2,960 450 2,960 9,512 450 9.962 19
Fighting Words Northern Ireland Company Limited by Guarantee Notes to the Financial Statements (Continued) Year ended 31 March 2023 Charitable activities Unrestricted Funds Restricted Total Funds Funds 2023 Department for Communities Arts Council of Northern Ireland Belfast City Council Department of Foreign Affairs. Reconcilation Fund The Ireland Funds America Community Relations Council Backstage Trust National Lottery Donnant Accounts - Next Chapter Garfield Weston Foundation Enkalon Foundation Esmé Mitchell Trust Community Foundation for Northern Ireland Victoria Homes Trust The Foyle Foundation JP Mcmanus Charitable Foundation Tomar Trust Halifax Foundation for Northem Ireland Arts Council of Northem Ireland - National Lottery Fund 2021122 Nerve Centre Arts Council of Northem Ireland Covid Recovery Programme Future Screens Nl Access to Work- Communitites Nl Belfast Harbour Community Awards Arts & Business- Blueprint Nl Executive- CGRU Ireland Funds- Individual Donors Ireland Funds- Heart of the Community Awards Amazon Literary Partnership 13,863 26,306 17,843 129,457 13,863 26,306 17.843 129.457 4,842 24,600 36,752 10,000 500 1,000 4.842 24.600 36.752 10.000 500 1,000 2,000 3,500 2,000 3,500 19,748 25,993 5,000 19.748 25,993 5.500 500 21,919 6,675 5,000 27,000 7,459 21.919 6.675 5.000 27.000 7.459 3,841 4,349 7,500 3,841 4,349 7,500 13,841 391,806 405,647 20
Fighting Words Northern Ireland Company Limited by Guarantee Notes to the Financial Statements (Continued) Year ended 31 March 2023 Charitable activities (Continued) Unrestricted Funds Restricted Toial Funds Funds 2022 Department for Communities Arts Council of Northern Ireland Belfast City Council Department of Foreign Affairs. Reconcilation Fund The Ireland Funds America Community Relations Council Backstage Trust National Lottery Donnant Accounts - Next Chapter Garfield Weston Foundation Enkalon Foundation Esmé Mitchell Trust Community Foundation for Northern Ireland Victoria Homes Trust The Foyle Foundation JP Mcmanus Charitable Foundation Tomar Trust Halifax Foundation for Northem Ireland Arts Council of Northem Ireland - National Lottery Fund 2021122 Nerve Centre Arts Council of Northem Ireland Covid Recovery Programme Future Screens Nl Access to Work- Communitites Nl Belfast Harbour Community Awards Arts & Business- Blueprint Nl Executive- CGRU Ireland Funds- Individual Donors Ireland Funds- Heart of the Community Awards Amazon Literary Partnership 3,964 3.964 733 7.216 1.750 20.000 23.333 10.000 500 2,500 733 7,216 1,750 20,000 23,333 10,000 500 2,500 15,000 20,000 15,000 20,000 30,933 6,930 30,933 6,930 11,965 11.965 10,733 144,091 154,824 Other income Unrestricted Total Funds Unrestricted Total Funds Funds 2023 Funds 2022 Other income Earned Income 186 8,383 186 8.383 440 440 8.569 8,569 440 440 21
Fighting Words Northern Ireland Company Limited by Guarantee Notes to the Financial Statements (Continued) Year ended 31 March 2023 Expenditure on charitable activities by fund type Unrestricted Funds Restricted Total Funds Funds 2023 Cultural education Support costs 15,297 8,949 191,937 95,502 207,234 104,451 24,246 287,439 311.685 Unrestricted Funds Restricted Total Funds Funds 2022 Cultural education Support costs 30,922 13.650 105,726 58,727 136.648 72,377 44,572 164,453 209,025 Expenditure on charitable activities by activity type Activities undertaken directly Support costs Total funds 2023 Total fund 2022 Cultural education Governance costs 207,234 96,144 8,307 303,378 8,307 200,329 8.696 207,234 104,451 311,685 209.025 10. Analysis of support costs Analysis of support costs Cultural education Total 2023 Total 2022 Staff costs Premises General office Finance costs Governance costs 30,081 30,325 1,687 34,051 8,307 30,081 30,325 1,687 34,051 8,307 16.496 11.132 4.170 31.883 8.696 104,451 104,451 72.377 11. Net incomel(expenditure) Net incomel(expenditure) is staled after chargingl(crediting)- 2023 2022 Depreciation of tangible fixed assets Foreign exchange differences 6,419 5,742 4,350 22
Fighting Words Northern Ireland Company Limited by Guarantee Notes to the Financial Statements (Continued) Year ended 31 March 2023 12. Independent examination fees 2023 2022 Fees payable to the independent examiner for= Independent examination of the financial statements 1,575 1,440 13. Staff costs The total staff costs and employee benefits for the reporting period are analysed as follows.. 2023 2022 Wages and salaries Social security costs Employer contributions lo pension plans 155,424 8,400 3,035 86,636 3,304 1,705 166,859 91,645 The average head count of employees during the year was 6 (2022: 4). No employee received employee benefits of more than £60.000 during the year (2022: Nil). Key Management Personnel Key management personnel include all persons that have authority and responsibility for planning. directing and controlling Ihe activities of the charity. The lotal compensation paid to key management personnel for services provided lo the charity was £79,282 (2022.'£69,136). 14. Trustee remuneration and expenses The Charity Trustees were not paid or received any other benefits from employment with the Charity in the year {2022- nil). No charity trustee received travel expenses during the year of {2022'. nil). No charity trustee received payment for professional or other seNices supplied to the charity (2022: nil). 23
Fighting Words Northern Ireland Company Limited by Guarantee Notes to the Financial Statements (Continued) Year ended 31 March 2023 15. Tangible fixed assets Long leasehold property Equipment Total Cost At 1 April 2022 Additions 32,902 12,258 990 45.160 990 At 31 March 2023 32,902 13,248 46,150 Depreciation At 1 April 2022 Charge for the year At 31 March 2023 8,833 3,290 4,330 3,129 13.163 6.419 12.123 7,459 19,582 Carrying amount At 31 March 2023 20.779 5,789 26,568 At 31 March 2022 24.069 7,928 31,997 16. Debtors 2023 2022 Trade debtors Prepayments and accrued income 83,709 1,879 2.005 527 85,588 2,532 17. Creditors: amounts falling due within one year 2023 2022 Trade creditors Accruals and deferred income Social security and other taxes 623 1,894 3,592 8.757 1.896 3.402 6,109 14,055 18. Pensions and other post retirement benefits Defined contribution plans The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £3,035 (2022.. £1,705). 24
Fighting Words Northern Ireland Company Limited by Guarantee Notes to the Financial Statements (Continued) Year ended 31 March 2023 19. Analysis of charitable funds Unrestricted funds At 1 April 2022 At 31 March 2023 Income Expenditure Transfers General funds Designated Fund 50.928 34.501 (24,246) 16,294 20,000 77,477 20.000 50,928 34.501 (24,246) 36,294 97.477 At 1 April 2021 At 31 March 2022 Income Expenditure Transfers General funds Designated Fund 85.253 20,685 (44,572) (10,438) 50,928 85,253 20.685 (44.572) (10,438) 50,928 Restricted funds At 1 April 2022 At 31 March 2023 Income Expenditure Transfers Ulster Garden Villages Limited Belfast City Council Department of Foreign Affairs and Trade, Reconciliation Fund Irish Youth Foundation Garfield Weston Foundation Trusthouse Charitable Foundation Esme Mitchell Grant 3,110 (17,243) 3,110 (600) 17.843 4,376 129,457 (70,438) (4,375) 59,020 10.000 10.000 {2,020) 2,500 2,020 (2,500) 1.000 (1,000) 25
Fighting Words Northern Ireland Company Limited by Guarantee Notes to the Financial Statements (Continued) Year ended 31 March 2023 19. Analysis of charitable funds (continued) Community Foundation for Norlhem Ireland The Foyle Foundation JP Mcmanus Charitable Foundation Tomar Trust Halifax Foundation for Northern Ireland St. James's Place Charitable Foundation Community Foundation for Northem Ireland Community Arts Culture and Heritage Fund Arts Council of Northern Ireland Health and Safety Northern Ireland Executive, T:BUC The Ireland Funds America Black Santa - Belfast Cathedral Nerve Centre National Lottery Heritage Fund Backstage Trust ACNI - Project 2021-22 Enkalon Foundation Dormant Accounts Community Relations Council ACNI - Covid Recovery Programme Funding Future Screens Nl Access to work- Communities Nl Belfast Harbour Community Awards Arts & Business- Blueprint 15,000 (15,000) 20,384 20,949 19,748 25.993 (19,748) (27,291) (20,384) 19.651 {7,546) 7,459 (11) 98 4.448 (4,448) 655 3,910 17,353 500 15,923 (250) (9,731) (7,671) (500) (49,904) (405) 2,451 (10,761) (500) 24.600 1.079 500 36.752 21.230 2.771 {2,671) 4.842 (4,003) 1,832 21.919 (12,493) (100) 9,326 6.675 (6,205) (470) 5.000 (6) 4,994 27,000 (4,571) 22,429 26
Fighting Words Northern Ireland Company Limited by Guarantee Notes to the Financial Statements (Continued) Year ended 31 March 2023 19. Analysis of charitable funds (continued) ACNI- Project 2022-23 Arts Council Arts Development Fund Ireland Funds Heart of the Community Awards Department for Communities Victoria Homes Trust Halifax Foundation Nl 22,547 (17,344) 5,203 2,680 (2,680) 4,349 (4,349) 13.863 3.500 5.000 (15,111) 1,248 3.500 (5,000) (287,439) 93,161 391,806 (36,294) 161,234 At 1 April 2021 At 31 March 2022 Income Expenditure Transfers Ulster Garden Villages Limited Belfast City Council Department of Foreign Affairs and Trade, Reconciliation Fund Irish Youth Foundation Garfield Weston Foundation Trusthouse Charitable Foundation Esme Mitchell Grant Community Foundation for Northem Ireland The Foyle Foundation JP Mcmanus Charitsble Foundation Tomar Trust Halifax Foundation for Northern Ireland St. James's Place Charitable Foundation Community Foundation for Northem Ireland Community Arts Culture and Heritage Fund Arts Council of Northem Ireland Health and Safety Northern Ireland Executive, T:BUC The Ireland Funds America 391 3,964 (4.955) (600) 29,511 594 (25,135) (594) 4.376 6,303 (8,323) (2.020) 2,500 2.500 224 124 (224) (124) 15,000 15,000 20,000 26.491 20,000 (19,616) (5,542) 20.384 20,949 4,631 (4,631) 2.500 (2,500) 1,196 (1.196) (10,438) 10,438 (7,546) (7.546) 7.216 (7,216) 27
Fighting Words Northern Ireland Company Limited by Guarantee Notes to the Financial Statements (Continued) Year ended 31 March 2023 19. Analysis of charitable funds (continued) Black Santa - Belfast Cathedral Nerve Centre National Lottery Heritage Fund Backstage Trust ACNI - Project 2021-22 Enkalon Foundation Dormant Accounts Community Relations Council ACNI - Covid Recovery Programme Funding Future Screens Nl Access to work- Communities Nl Belfast Harbour Community Awards Arts & Business- Blueprint ACNI- Project 2022-23 Arts Council Arts Development Fund Ireland Funds Heart of the Community Awards Department for Communities Victoria Homes Trust Halifax Foundation Nl 587 983 450 6,930 (1,037) (3,465) 4.448 9,100 (8,445) (16,090) (13,580) 655 3.910 17.353 500 15.923 20.000 30.933 500 23.333 (7.410) 1.750 (4,421) (2.671) 11.965 (11,965) 102,635 144.541 (164.453) 10,438 93.161 Transfers have taken Pla during the year which relates to fixed assets. Fighting Words Northern Ireland used funding to purchase assets which have been transferred to Unrestricted Funds as Fighting Words Northem Ireland fully own the assets, no restrictions have been placed on these assets. 28
Fighting Words Northern Ireland Company Limited by Guarantee Notes to the Financial Statements (Continued) Year ended 31 March 2023 20. Analysis of net assets between funds Unrestricted Funds Restricted Total Funds Funds 2023 Tangible fixed assets Current assets Creditors less than 1 year Net assets 26,568 77,018 (6,109) 97,477 26,568 238,252 (6.109) 258,711 161,234 161,234 Unrestricted Funds Restricted Total Funds Funds 2022 Tangible fixed assets Current assets Creditors less than 1 year Net assets 31,997 32,986 (14,055) 50.928 31,997 126.147 (14,055) 144.089 93,161 93,161 21. Related parties No related parties in the year. 29