THE JOHN AND PAT HUME FOUNDATION FOR PEACEFUL CHANGE AND RECONCILIATION FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 ( A COTrIPAYY LIIWIITED BY GUAILINTEE AND NOT HAVING A SHARE CAPITAL) COMPANY REGISTRATION NUMBER N1666608 CHARITY REGISTRATION NUMBER NIC 107981 O'HARA SHEARER CHARTERED ACCOUNTANTS AND STATUTORY AUDITORS 547 FALLS ROAD BELFAST BTII 9AB THE JOHN AND PAT HUME FOUNDATION FOR PEACEFUL CHANCE AND RECONCILIATION FINANCIAL STATEMEINTS FOR THE YEAR ENDED 31ST DECEMBER 2023 CONTENTS Page Members and Professional Advisors Trustees Annual Report (including the Statement of Directors Responsibilities in respect of financial statements) Report of the Independent Auditors to the Members, 9-11 Accounting Policies 12-14 Statement of Financial Activities (incorporating the income and expenditure account) 15 Balance Sheet 16 Statement of Cash Flows 17 Notes to the Financial Statements 18-24 Page I THE JOHN AND PAT HUME FOUNDATION FOR PEACEFUL CHANGE AND RECONCILIATION FINANCIAL sTATE1￿lENTs FOR THE YEAR ENDED 31ST DECEMBER 2023 OFFICERS AND OTHER INFORMATION Directors Dawn Purvis (Chair) Dr Sean Farren Professor Paul Arthur (Treasurer) Professor Monica Mcwilliams (Resigned 291111202i) Mary Mclvor Brid Rodgers (Resigned 291111202J) John Hume Michael Charles Nesbitt Sard Canning John Mark Durkan Hugh Logue Kieran McLoughlin Tom Arnold Sean Donlon Professor Mo Hume Linda Ervine {Appointed 2911 I￿02)) Doire Finn (Appointed 291111202J) Paula Kelly (Appointed 291111202J) Lauren Alana Kerr {Appointed 291111202)) Registered orrice 2 Lake Glen Green Belfast BTI18TH Auditors O'Harn Shearer Chartered Accountants & Statutory Auditors 547 Falls Road Belfasl BTI19AB Bankers Allied Irish Bank J5 University Road Belfast, BT7 IND Company Registration Number NI 666608 Charity Commission for Northern Ireland Registration Number NIC 107981 Page 2 THF JOHN.4ND P.4T HI.'MF FOI1ND.4TI￿N FOR PI,ICETr'IIL CFI.4NGE .4.ND RTr.CONCILI.4TION FIJ.4NCI.4L STAI-E.fllE.NTS FOR THE I'E.4R I.NDID 31S'T DECEIIBER ?021 ST.4TF..Nir.NT OF DIRECTORS RE.nsible for assessing the charitv's ability io conlinue as a going concern. disclosino. as appliLable. maiters related to going concern and using the goin? concern basis of accounting unless the trustees eitlier intend to liquidaie the company or to cea5c operations. or hai'e no realistic alternative bul lo do so. Auditor's responsibilities for the audit of the financial statements Our objcctivcs are io obtain reasonable &$5urance aknut wheiher the financial statcments as a whole are free from material isstatement. wheiher due to fraud or error. and to issue an audito¢s rewrt that includes our opinion. Rtrdsonablc assurance is a high level of assurance. but is not a guarantee ihat an audit conducted in accordance with ISAS IUKI will always d¢te¢i a aterial misstalemenl when it exisls. Misslatetnenls can arise from fraud or error and are Considered material it, individually or in the aggregate. thev could re&sonablv be cxpe¢ied to influence the economic decisions of users taken on thc basis of these financial statemenls. Irregularities. including fraud. are instances of non-¢ompliance with laivs and regulations. We design proccdures in line with our responsibilities, outlined a￿Ve. to dcteci malerial misstatements in rcspeci of irregularities. including fraud. The exlent to which our procedures are capable of detecting irregularities. including fraud is detailed below. Explanation as to what txtent the audit was considered c#p*ble of detttting irregularities, including fraud The objectives of our audit in respect of fraud, are to identify and &sse&s the risks olmalerial misstatement of the financial Statemenis due lo fraud; lo obtain s￿￿1cle￿I appropriaie audit evidence regarding the assessed risks of material misstatemenl due lo fi'aud. (hrough designing and impletn¢nting appn)priate responscs to those assessed risks. and to rcstK)nd appropriately to instances of fraud or suspected fraud idcntified during the audit. Hoivcvcr. the primary res￿nSIbL11ty for the prevention and detection of fraud rests with knth managcmenl and those charged with governance of the Charity. Our approach was as follows- We obtaincd an understanding of the legal and regulatory requirements applicable to the charity and considered that the most significant are the Companies Act 2006 and the Financial RewTrrting Siandard applicable in the UK and Republic of Irelwid IFRS 102) (effective l January 2015}- (Charities SORP (FRS 1021. Enquiry of tnanagemenL those charged with govemance and the entili's solicitors around actual and potential litigation and claims. Enquiry of entity slaff in compliancc funciions to identify any instance5 of any non4ompliance with laws and regulations. Reviewing financial statement disclosures and trsting to SUPFOrting documentation to &ssess compliance with applicable laivs and regulations. Page 10 THE JOHN AYD P.4T HL,'%IE FOIIND.4TION FOR PEACEFLL CH.41Th4GE.4ND RECONCILI.4TJON FINANCI.4L STATENIENTS FOR THE I'EAR ENDED 31ST DECEMBER 2023 REPORT OF THE INDEPENDENT AUDITOR TO THE ￿lEMBERs, Auditing the risk of management override of control& including through testino journal entries and other adjustments for appropriatcness. and evaluaiing the business rationale of si£nificant transactions outside the Tromal course of busin￿. As part ot an audit in accordance ivith ISAS (UK) Ive exer¢ise pn)fessional judgemeni and maintain professional scepticism throughout the audit. We also: Identity and assess the risks ofmaterial misstateTnent of the financial statements. whether duc lo fraud or emr. design and pertorn] audit procedures responsive to those risks. and obtain audit evidence that is suffiiient and appropriate to provide a basis for our opinion. The risk of noi deteciing a material misstatement resulting from fraud is higher than for one resulting from error. as frdud may involve collusion. forgerv. intentional omissions. misrepresentaiions. or the ove￿ide of iniemal control. Obtain an understanding of internal control relevant to the audit in order to dcsign audit procedures that are appropriate in the cirLumshgnces. but not for the purw>ses of expressino an opinion on the effectiveness of the compangs internal control. Evaluate the appropriateness of accounting policies used and the T￿Onabl¢￿eSS of accounting estimates and related disclosures made by the directors. Conclude on Ihe appropriatcncss of the directors, use of thc going Concern basis of accounting and. based on the audit evidence obtained. Ivhcther a material uncertaintv cxists relaied to events or conditions that ma)." cast signifi¢ani doubt on the charit} s abililv to continue as a going concern. If ive conclude that a Tnaterial uncertainty exists. we are required to drnw attention in our auditols re￿rt to the related disclosures in thc fsnan¢ial statements or, if su¢h disclosures arc inadcquaie. io modifv our opinion. Our conclusions are based on the audit evidence obtained up lo our auditor's rcport. Hoi¥ever. luture events or conditions mav cause the chari(v to cease to continue as a going concern. Evaluate the overall presentation. structurc and content of the financial statcmcnts, including the disclosures. and whether the financial S￿leMents represent the underlying IrJnsactions and events in a manner that achieves fair presentation. A furthcr description of our responsibilities for the audit of the financial sthiements is located on thc Financial ReTx)rting Council's website at: httpJlwWw.frc.org.ukJaudito￿tEs￿nSlb]IltI¢5. This descriplion fonns part of our auditor's rewrt. We communicate with those charged with governance regardin& amon? other mattcT5. the planned scope and titning of the audit and signiticant findings. including any significant deficiencies in internal control that we identify during our audit. Use of our report This report is made solely to the charithble ¢ompanv's membcr5. as a Ix)dv. in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and regulations made under that Act. Our audit work has been undertak-en so that we might state to the charit&ble companv's members those matters we are required to siaie lo them in an auditors, rqx>rt and for no other purtM)se. To the fullest exient perniitted by law. we do not accept or assume responsibility to anyone other than the ¢haritable company and ils Membe￿ as a body. for our audit work. for this reFK)rL or lor the opinions we have fortned. LAWRENCE SHEARER F.C.A., Senior Statutory Auditor FOR AND ON BEHALF OF O'HARA SHEAREIL Statstory Auditor O'HAIL4 SHEARER CHARTERED ACCOUNTANTS AND STATUTORY AUDITORS 547 Falls Road Belfast BTI19AB D#ted: 18th December 2024 Pagell THE JOHN AND PAT HUME FOUNDATION FOR PEACEFUL CHANGE AIND RECONCILIATION FINANCIAL STATEMEINTS FOR THE YEAR ENDED 31ST DECEMBER 2023 STATEMENT OF AccouiYfING POLICIES Accounting Convention and Basis of Accounting The financial statements have been prepared under the historical cost convention. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reportino Standard which applies in the UK and Republic of Ireland (FRS 102) (effective l January 2015) (Charities SORP (FRS 102)), the Financial Reportin(y Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Going Concern At the time of approving the financial statements, the trustees, have a reasonable expectation that the charity has adequate resources to continue in operntional existence for the foreseeable future. Thus the trustees, continue to adopt the gointr concern basis of accounting in preparing the financial statements. Income Recognition Income is recognised when the Charity has entitlement to the funds, any perfomiance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably. Interest Receivable Interest on funds held is included when receivable and the amount can be measured reliably" this is normally upon notification of the interest paid or payable by the Bank. Resources Expended All expenditure is accounted for on an accruals basis and is classified under headings that aggregate all costs related to the category. Fundraising costs include the costs of advertising, producing publications, printing and mailing fundraising material, and staff costs in these areas. Costs of charitable activities include direct expenditure incurred through operational activities. Govemance costs represent the costs associated with the govemance arrangements of the charity which relate to the general running of the charity as opposed to those costs associated with fundraising or charitable activity. Fixed Assets All tangible fixed assets are recorded at cost. Page 12 THE JOHN AND PAT HUME FOUNDATION FOR PEACEFUL CHANGE AND RECOINCILIATION FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 STATEMENT OF ACCOUNTING POLICIES Continued Depreciation Depreciation is calculated to write off the cost of fixed assets over their estimated useful lives at the following rates- Office equipment Computer equipment 25 % residual value 25 % residual value Repairs and Renewals All repairs and renewals are written off as Incu￿ed Pension Costs The charity does not currently operate a defined conribution pension scheme. Debtors and Prepayments Trade debtors and other debtors are recognised at the settlement amount due after any discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Creditors and Provisions Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are nom]ally recognised at their settlement amount after allowing for any trade discounts due. Financial Instruments The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. Foreign Currencies Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the net movement in funds. Page 13 THE JOHN AND PAT HUI¥IE FOUNDATION FOR PEACEFL'L CHAN4GE AIND RECONCILIATION FIINANCIAL sTATE￿IENTs FOR THE YEAR EIYDED 31ST DECEMBER 2023 STATEf*lENT OF ACCOL'NTING POLICIES Contiiiiied Fund Accounting Unreslricted funds are general funds that are available for use at the Truslees, discretion in furtherance of the charitable objectives of the charity unless the funds have been designated for other purposes. Designated funds are unrestricted funds set aside by the triistees out of unrestricted funds for specific future purposes. Restricted funds are those given for use in a particular area or for specific purposes. the use of which is restricted to that area or purpose. Endownment funds are subject to specific conditions by donor5 that the capital must be maintained by the charity. The income received from funders depends on the charity meeting detailed criteria on expenses plans. Grants given under such conditions are also given subject to them bein(F obtained for in connection with the furtherance of the charity's aims and objectives. Such income can be repayable to the funder if such expenses plans and criteria are not met. Such income is only deferred when the donor specifies that the grant/donation must only be used in future accounting periods. or the donor has imposed conditions which musl be met before the Charity has unconditional entitlement. Income from charitable activities includes income received under contraci or where entitlement lo grdnt funding is subject to specific perfomiance conditions is recognised as earned as the related goodslservices are provided. Grant income included in this category provides funding to support perfomian¢e activities and is recognised where there 15 entitlement, certainty of receipt and the amount can be measured with 5u(Ficient reliability. Income is deferred when: feeslperformance related grants are received in advance of the perfornianc¢levent to which they relate. Reserves Policy The John and Pat Hume Foundation for Peaceful Chancre and Reconcilialion reserves policy is to maintain a sufficient level of reserves to enable operating activities to be maintained for a period of at least J to 6 months in the event of major funding streams ending. The reserves policy also takes account of coverinu costs in the event of closure, to cover redundancies, rents, and fees that are due including statutory audit fees. It also takes account of potential risks and Contingencies that may arise from time to time. The John and Pat Hume Foundatiork for Peaceful Change and Reconciliation maintain unrestricted reserves if accrued should be Used for the purposes which meet the aims and objectives of The John and Pat Hume Foundation for Peaceful Change and Reconciliation. The board should monitor and review the amount of unrestricted reserves bi-monthly in addition to the level of restricted reserves. Page 14 THE.IOHN.4)4D P.4T HI'I.IE FOI'NiD.4TIO)I FOR PE.4CEFI'L CII.IN.GE.4Tr4D RECO*4CILI.ATION ST.ITEIIEINT OF FIN..INCI..IL.4nll'lTIES r411 FOR THE I'E.KR E)DF.D 31ST DECEIIBER ?0?3 incor Ihe incnme e nditure actount Unre51ritted Restritted ENdownment FllDds Funds Fund5 TOTAL 2023 TOTAL 2022 NOTES IiYCOINIE AND EYI DOIVNMENTS FRO￿1. Donaiions and leqacies IncoTne frotn invesimenis InLome from charitable activities Incotne frotn other trading activitits 32.)43 32.543 16.127 2.478 160.054 162.532 125,179 585 TOTAL INCO￿lE AND ENDOWN￿lE￿ITS 35.0?1 160.0>4 195.075 141,891 EXPENDITURE ON: Ex￿ndItUr¢ on raisino funds Expendituie on chariiable activities Other expendittEre Net gainslllosses} on inves(m¢nts 792 111,502 15.480 189,524 205.004 TOT.4L RESOURCES EXPENDED li,480 189,524 205.(K)4 112,294 NET INCOfvILIIE.XPENDITL'REI (29,470) (9,9291 Trnnsfers between funds NET TrIOTr'EITrlENT IN FIIIYDS 19J41 {?9.47111 19,9291 RECOIYCILIATION OF FUTrIDS TOTAL FL1NDS BROLIGHT FORW.4RD 37.364 79.607 50,010 TOTAL FUNDS CARRIED FORWARD 61.784 7J94 69ffj78 79,607 The Statement of Finan¢ial.4¢tii'ities includes all gains and 105se5 111 the year and therefore a Statement ofTotal Rtc(¢nised GaiDs Lossts has Dot been preparcd All of tht above amounts relate 10 tontinuiDg 9Ctivities The a¢¢ompanyiDgJ((ovn1i￿ plleies and Ihe Nt03 34.061) 28.964 63.024 TOTAL EYPENDrruRE ON CHARrrABLE Acri￿.1T[Ks IS480 189,524 205.004 44,058 67.444 111.502 Page 19 THE JOHN AND PAT HUME FOUNDATION FOR PEACEFUL CHANGE AND RECONCILIATION NOTES TO THE FtNANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 7. NET {OUTGOtqG)I INCOMING RESOURCES FOR THE YEAR This is stated after chargingl(crediting) 2023 2022 Auditors remuneration Depreciation 2,754 2,592 8. SALARY COSTS AI¥D EMOLUMEIYTS 2023 2022 Total stsff costs were as follows: Waoes and salaries - key management personnel Wages and salaries- other staff Employer social security costs - key management personnel Employer social security costs - other staff Employer social security costs - Statutory Maternity Pay Recoverable Employer social security costs - Employment Allowance 24,001 8.387 1,989 25,990 8.387 The average monthly number of employe¢5 during the year was as follows: 2023 Number 2022 Number No employees had emoluments in excess of £60,000 (2022: £Nil) Trustees, remuneration and benefits There was no trustees, remuneration or other benefits for the year ended 31 st December 2023. (2022: £Nil} Trustees, Expenses There were no trustees, expenses paid for the year ended 31 st December 2023. (2022: £Nil) Page 20 THE JOHN AND PAT HUME FOUNDATIOIN FOR PEACEFUL CHANGE AIND RECONCILIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 9. TANGIBLE FIXED ASSETS Office Equipment Computer Equipment Total COST As at 1st January 20?3 Additions Disposals As at 3 1st December 202J DEPRECIATION As at 1st January 20?3 Charge for year Eliminated on disposal As at 31 st December 2023 Net book value 20?3 Net book value 2022 10. CASH AT BANK 2023 2022 AIB - Current Account AIB - Current Account 40,90? 40,056 99,173 80,958 99,173 Page 21 THE JOHN AND PAT HUI¥IE FOUNDATION FOR PE.4CEFLIL CHAINCE AYI D RECONCILI.4TION NOTES TO THE FIYAINCIAL STATE1￿]ENTs FOR THE I'EAR ENDED 31ST DECEMI BER 2023 11. DEBTORS: AMOUPUS FALLIIYG DUE WITHIN ONE YEAR 2023 2022 Trade debtors Grants receivable Prepayments 5,000 5.000 12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2023 2022 Bank overdrafts Social security costs and other t&xes Dctcrred incotnt Accrued e.xpenses 1,375 695 9,905 23.871 11.280 24.566 13. CREDITORS: AMOUP4TS FALLING DUE AFfER MORE THAN ONE YEAR 2023 2022 Bank loans Deferred income 14. ANALYSIS OF NET ASSETS BETWEEN FUNDS Tangible C&sh Fixed Bank and Assets Prepavtnents in Hand Debtors Creditors and Accruals Transfers between Funds 2023 2022 Unrestricted Funds 67.349 (5.565} 61.784 42.243 Reslricred Funds 13.609 15.7151 7.894 37.364 Total Fund5 80.958 111.2801 69,678 79.607 15. RECONCILIATION OF OPERATIP4G PROFIT TO NET CASH FLOW FROM OPEIL4TING AcfivITIES FROM OPERATING AcfiviTIES 2023 2022 Operating Surplu51lDeficill for the year Depreciation Movement in debtor5 Movement in crediiors Gain on investmcnts (Profil)ILoss on disposal of Fixed Assets Invcsttnent income (9,929) 29.597 5,000 (13,286) 15.000} 19,154 Net cash inflow/(outflow) from operating a¢tivities 18.215) 43,751 THE JOHN AND PAT HIII¥IE FOUND.4TION FOR PEACEFLIL CHANGE AND RECONCILIATION NOTES TO THE FlIN.4,NCI.4L sT.4TE￿1ENTs FOR THE I"EAR ENDED 31ST DECENI IBER 2023 16. TrIOVETrIENT IN FUNDS Net Movement in Funds 2023 Opening Balance TrAn5fer5 between Funds Income Expenditure 2023 2022 Unrestricted Funds 3).021 (15.480) 19.541 61.784 42.243 Reslricled Funds 37.364 160.054 (189.524) 129.470) 7.894 37.364 79.607 195,075 (20),￿14) (9.929) 69,678 79,607 Page ?3 THE JOHN AND PAT HUME FOUNDATION FOR PEACEFUL CHANGE AND RECONCILIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 17. UNRESTRICTED INCOME FUNDS 2023 2022 Balance at I st January 2023 42.243 50,010 Incoming resources for the year Resources expended for the year Transfer between funds 35,021 (15,480) 37.083 (44,850) Balance at 31 st December 2023 61,784 42.243 18. RESTRICTED INCOME FUNDS 2023 2022 Balance at 1st January 2023 37.364 Incoming resources for the year Resources expended for the year Transfer between funds 160,054 (189.524) 104.808 (67,444) Balance at 31st December 2023 7.894 37.364 19. LEGAL STATUS The John and Pat Hume Foundation for Peaceful Change and Reconciliation is a Company Limited by Guarantee. Every member of the charity promises, if the charity is dissolved while he or she or it is a member or within twelve months after he or she or it ceases to be a member, to contribute such sum (not exceeding £ l O) as may be demanded of him or her or it towards the payment of the debts and liabilities of the charity incurred before he or she or it ceases to be a member, and of the costs charges and expenses of winding up, and the adjustment of the rights of the contributories among themselves. The John and Pat Hume Foundation for Peaceful Change and Reconciliation is registered with The Charity Commission for Northern Ireland , Charity Number 107981. Date of registration 8th June 2020. The John and Pat Hume Foundation for Peace￿[ Change and Reconcilaition is a recognised Charity within the definition of Section 360(3) Income and Corporation Taxes Act 1970 by the Commissioners of the HM Revenue & Customs. Page 24