Company registration number.. N1649755 Charity registration number.. 108029 Drop Inn Ministries Limited {A company limited by guarantee) Annual Report and Financial Statements Year Ended 30 September 2022
Drop Inn Ministries Limited Annual Report and Flnanclal Statements Year Ended 30 September 2022 Contents Page Charity Reference and Administrative Details Trustees. Annual Report including Direaors Report Independent ALsditorfs Report Statement of Flnanclal Activities io Balance Sheet li Ststement of Cash Flows 12 Notes to the Financial Statements 13-22 Page I
Drop Inn MSnlstrie5 Limited Charity Reference and Administrative Details Year Ended 30 September 2022 Charity regi5tratlon number 101694 Dirertors and Trustee5 Mr Ronald Dawson Mr Neville Garland Mr Thomas Stewart Secretary MrThoma5 Stewart Registered office 123 Keady Road Armagh 8T60 3AD Auditor Barry Thompson and Company 76-78 Church street Portadown BT62 3EU Accountants Thomas Oliver & Co l Moyga5hel Mills Park Dungannon Bfii 7DH Page 2
Drop Inn Ministrles Limited Trustee5' Annual Report Ilntluding Dirertors Report) Year Ended 30 September 2022 The Trustees and Directors present thelr report and the audited finana?1 statements of Drop Inn Ministries Limited for the year ended 30 September 2022. The Trustee5 and Oirettors have adopted the provisions of the Statement of Recommended Practice ISORPI "Accounting and Reporting by Charities" IFRS 1021 in preparing the annual report and financial statements of the charity and company. Trustee5 of the charity The trustees who have served durin8 the year were as follows:_ Mr Ronald Dawson Mr Neville Garland Mr Thomas Stewart The trustees meet quarterly to discuss the board strategyi the 'day to day administration is delegated to the director and the staff leadership team. Strurture, governance and management The Charityrfs Trustees formed Drop Inn Mlnistries Limited which was incorporated as a company limited by gu3rantee on 11 December 2017. The charity continued in Its previoy5 format untll l October 2019 when it transferred artivitie5 and assets to the Companv. The charity is registered with The Charfties Commission for Northern Ireland IRegistered number 1016941. The company Is controlled by its trustees who are directar5 of the company for the purposes of the Companies Act 2006 and is governed by the provisions contained in the Memorandum and Article5 of A550ciation. All trustees are members and directors of the Charitable Company and stand as guarantors of the charitable company In the sum of £10 eath. There are currently 4 trustee5 and directors OF the charity and company. Objectives and Activitie5 The companws objects are: To advance the Christian religion for the benefit of the public in the area of benefit. A550Clating together the said inhabitants and the local authorities voluntary and other organlsations in the are3 of benefit in a COTnmon effort tD relieve poverty and advance education and to provide fatilitles in the Interests of welfare with the object of improving the condition5 of life for the Said inhabitants. The principal acdvitles of the charity ore to equip and mobilise people for mission, and to bring hope, help and healing to the hurting world throu8h the operation of variou5 humanitsrian projects. The projects are financed through surplu5 funds 8enerdted by the operation of numerous charity shops, various donations, spon50r5hipi 3nd fundrdising activities. Page 3
Drop Inn Ministries Limited Trustees, Annual Report {Including Directors Reportl continued Year Ended 30 September 2022 Headquarter5- Ballyards Castle Ballyards Castle 15 the head ofFice of all Drop Inn Projects. The fa¢ilitie5 at B3llyard5 allow5 the charityto host prayer events, retreats, Christian conferences and vislts from mission teams and project partners from various nations. During the time period of this financial yearwe begèn to see the usage of Castle begin to grow agaln, following on from the relaxin8 of Covid-19 restrictions. Finances During this financial year we have saw a steady, and at times strong flnancl21 performance in tsur charity shops, with the development of some new concept store5. This has allowed us to stabilise operations following the Covid-19 period. With a steady. and at times growing income base we have been able to maintain and grow our 5UPPOrt locally as well as internationally in 30 different nations as well a5 to consider appropriate capital acqui51tion to aid lon8-term stability of our income base. The charity endeavours to keep a prudent amount in reserve for osh flow purpose5 but most funds are spent in the shorttem). International Missions During the year, post Covid-19 re5trirtions we have been able to visit international partners, revlew project work and provide increased leadership support tcs projects. These visits are a great sourte of encouragement to our international partners, Short-term mission experience5 often lead to increased pr3yer sUPPOrt for Drop Inn as well as an increase in Child Sponsorship5 and givin6 to the varlous projects people visit. One additional aspect of Intemational support this year, sinte February 2022. ha5 been Increased support to project partner5 in Ukraine, helping them address the humanitarian crisis that has taken place as a result of the war. Local Mi55ions Local Outreach Ministries- Our team and our interns have visited local people in need to offer physScal help such as yard work, cleanin& help with finances and support for addictions. This helps to connect disenfranchised people wlth other organisation5 such as foodbank5, social workers, etc. This 5eTves to provlde 8 service to brlng immediate need as well a5 continuatlon of support to facilitate positive outcornes within our local comrnunity- Drop Inn partners with Grace Communlty Church in Richhill, to operate a youth outreach in The Living Room. as well as a Drop Inn Centre for Youth on Wednesday nights. Different stsff and volunteers offer a safe place for local youth to connect to POSltive resources and mentors. Three of our main focuse5 locally ¢onslst of.. Asplre Nl. Madlug and Hope Mlsslon. Other Information Drop Inn Ministries transferred to a company limited by guarantee tsnder the name of Drop Inn Ministrle5 knmited on I Ortober 2019. Assets and Ilabilities were transferred to the company at book value on l October 2019. excluding the thurch whlch was transferred to another charitable company. The church was also transferred on l October 2019 to a company limited by guarantee under the name of Grace Community Church Ilrelandl Limited. Page 4
Drop Inn Ministfles Llmited Trustees, Annual Report Ilncluding Directors Report) continued Year Ended 30 September 2022 Trustee responslbllitles The trustees (who are also directors of Drop Inn Minlstries Umited for the purposes of company lawl are responsible for pparing the Trustees, Annual Report and the financial ststements in accordance with applicable law and United Ktngdom Accounting 5tsndards Iunited Kingdom Generally Accepted Accounting Practitel. Company law requires the tnjstees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable £ompany and of the incoming resources and application of resources, includin8 the income and expenditure. of the charitable company for that period. In preparing these financial ststements, the trustees are required to.. select suitable èccounfjng policies and then apply them consistently,, obseNe the methods and printiples In the Charities SORP 2a15 (FR5 102 make judgements and estimates that are reasonable and prudent; state whether applicBble UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; prepare the financial statements on the going concern basis unless it is Inappropriate to presume that the charitable company will continue in operation. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position OF the charitab5e company and enable them to ensure that the financial statements comply with the Companies Att 2a06. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularitie5. Dlsclosure of information to the audltors We, the director5 of the company who held office at the date of approval of these Flnan¢ial Statements as set out above each confirm, so far a5 we are aware, that., there is no relevant audit information of which the company's auditors are unaware. and we have taken all the steps that we Dught to have taken as dirertor5 in order to make ourselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. Small company provisions This report has been prepared in a¢¢ordance with the provisions applicable to companies entitled to the small companie5 exemption. On behalf of the board Mr Ronald Dawson (Trustee and director) 20June 2023 Page 5
Drop Inn Ministries Llmited Year ended 30 September 2022 Independent Audltorfs Report to the trustees of Drop Inn Minlstrles Umlted Opinion We have zudited the financial statements of Drop Inn Ministries Limited Ithe'charitable companw) for the year ende 30 September 2022 which comprise the Statement of Financial Activities, the Balance Sheet, Statement of Cash Flows and notes to the financial statements, including significant attountin8 poliues. The financial reporting framework that ha5 been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financizl Reporting Standard 102. The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Aecepted Accounting Practice). In our opinion the financial ststements.. give a true and fair view of the state of the charitable companvs affairs as at 30 September 2022, and of its ncoming resources and application of resource5. including its income and expenditure. for the year then ended,, have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Prattice,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for oplnlon We condutted our audit in accordance with International Standard5 on Auditin8 IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described In the Auditorfs responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements In the UK. including the FRCS Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relating to going concern In auditing the financial statements, we have concluded that the trustees. use of the going concern basis of accountlng in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uneertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable cornpany's ability to continue as a 8oiri8 concern for a period of at least twelve months from when the financlal statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respert to going concern are described in the relevant sections of this POrt Other information The other information comprises the Information included in the tru5tees' annual report, other than the finandal statements and our auditorf5 report thereon. The tru5tee5 are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other Information and, except to the extent otherwise explicidy stated in our report, we do not expre55 any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility 15 to read the other information and, in doing 50, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or othenvise appears to be materially misstated. If we identify such material inconsistencies or apparent material mi55tatements. we are required tg determirie whether thi5 gives rise to a material misststement in the financial statements themselve5. If, based on the work we have performed, we conclude that there Is a materlal misstatement of this other information, we are required to report that fact. We have nothing to report in thi5 regard. Page 6
Drop Inn Ministries Limited Year ended 30 September 2022 Independent Auditovs Report to the trustees of Drop Inn Ministrles Limited Icontinuedl Opinion on other mattets prescribed by the Companies Act 2006 In our opinioft, based on the work undertaken in the course of the audit.. the informotion given in the trustees, report lincorporating the director5, reportl for the ftnanaal year for whlch the financial statements are prepared is consistent with the financial statements; and the directors report included within the trustee5' report has been prepared in accordonce with applltable legal requirements. Matters on which we are required to report by exception In the Ilght of the knowledge and understanding of the charitable company and its environment obtsined in the course of the audit, we have not identified material mi5Statements in the directors, report. We have nothingto report in respect of the followlng matter5 in relation to whlch the Companies Att 2006 requires us to report to you If, in our opinion.. adequate accounting records have not been kept, or returns adequate for our audlt have not been received from branches not visited by us: or the financial statements are not In agreement with the a¢countlng records and returns,. or certain disclosure5 of directors, rernuneratloll Specified by law are not made- or we have not received all the information and explanations 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 advantsge of the small companies, exemption In preporingthe dirertors, report and from the requirement to prepare a strateglc report. Responsibilities of trustees As explained more fulSy in the trusteeg responsibilities statement set out on paEe 5, the trustees (who are a150 the dlrectors of the charitable company for the purposes of company lawl are respon51ble for the preparation of the financial statements and for being satlsfied that they give a true and fair view, and for such Internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material mi5Statement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitsble cOmpanS ability to continue as a 8oin8 concern, disclosin& ?s applicable, matters related to goin8 concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so, Auditorf5 responsibilities for the audit of the financi315tatements Our objectives are to obtain re?sonable assurance about whether the financial statements, as a whole, are free from material misstatement, whether due to fraud or error, and to Issue an auditorfs report that include5 Our opinion. Reasonable assurance is 2 high level of assurance but 15 not a 8uarantee that an audit conducted in accordance with ISA5 IUKI will alwzy5 detect a material misstatement when it exists. Mi5Statements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economlc decisions of users taken on the basls of these financial statements. Page 7
Drop Inn Minlstrles Limited Year ended 30 September 2022 Independent Auditorfs Report to the trustees of Drop Inn Ministrles Llmited {continuedl Irregularities, induding fraud. are instances of non-compliance with laws and regulations. We design procedure5 in line with our responsibilities. Outlined above, to detect material misstatements in respeet of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularitie5, including fraud is detailed below- Because of the inherent limitations of an audit, there is a risk that we will not detect all ifgularItIeS, including th05e leading to a material misstatement in the financtal statements or non-compliance with regulation, This risk increases the more that compliance with a law or regulation 15 removed from the events and transactions reflected in the financlal statements, as we will be les5 likely to become aware of instances of non-compliance. The risk is also greater ret4rding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, ftsrgery* collusion, omission or misrepresentation. A further description of our responsibilities 15 availableon the Financial Reparting Council's website at- htt www.frc.or audtitorsre A5 part of an audit in accordance with ISAS IUKI, we exercise professional judgment and maintaln professional scepticism throughout the audit. We 3150: Identify ané assess the risks of material misststement of the financial Statements, whether due to fraud or error, design and perfomi audit procedures responsive to those risk5, and obtain audit evidence that is sufficient 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 colluslon. forgery, ntentScnal omissions, misrepresentations, or the overrlde of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedure5 that are appropriate in the circumstances. but not for the purpose of expre55ing an opinion on the effectiveness of the internal control. Evaluate the appropriatene55 of accounting policies used and the rea50nableness of accovnting estimates 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 related to events or conditions that may cast sienificant doubt on the companws ability to continue as a going concern. If we tonclude that a material L¢ncertainty exists, we ore required t¢ draw attention in our auditorfs report to the related disc105ures in the financial statements or, if such disclosures are Inèdequate. to modify our opinion. Our conclLzsions are based on the audit ewdence obtained up to the date of our auditorfs reporL However, future events or conditions may cause the company to cease to continue as a going concern. Evaluate the overall presentation, strurture and content of the financial statements, including the éi5closure5, and whether the financial statements represent the underlying transaction5 and events in a manner that ochieves fair presentation. We communicate with those charEed with governance regardin& among other motters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in intemal control that control identify durin8 our audiL Page 8
Drop Inn Ministries Limited Year ended 30 September 2022 Independent Auditor's Report to the trnstees of Drop Inn Ministries Limited (continuedl Use of our report This report is made solely to the charitable companW5 members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might State to the charitable ¢ompany'5 members those mattets we are required to state to them in an auditorfs report and for no other purpose. To the fijllest extent permitted by law. we do not accept or assume responsibility to anyone other thèn the charitsble company and the charitable companvs member5 as a body, for our audit work, forthi5 report, or for the opinions we have formed Barry Thompson Ise lor statutory auditor) for and on behalfof BarryThompson and Companv Chartered Accountants and Statutory Auditors 7fv78 Church Street Portadown Co Armagh BT62 3EU 20June 2023 Page 9
Drop Inn Mlnlstries Limited Statement of Flnanclal Activitie5 Year Ended 30 September 2022 2022 Restricted funds Unrestricted funds 2021 Total Totsl Note In¢omefrorn: Donations and legacies 56,329 95.049 151,378 852,811 Other tradlng actlvitles 2,129,532 2,129.532 1,425,246 Total income 2,185,861 95,049 2,280,910 2,278,057 Expenditure on: Raising funds 1,720,734 215 1,720,949 1,582,914 Charitable activities 326,367 49.645 376,012 236,800 Totsl expenditure 2,047,101 49,860 2,096,961 1,819,714 Net income {expenditurel 138.760 45,189 183,949 458,343 Net movement in funds 16 138,760 45,189 183,949 458,343 Reconciliation of fuhds: Totsl funds brought forward 16 560.125 19,872 679,997 221.654 Total lunds cairied forward 16 798,885 65,061 863.946 679,997 All income and expenditure derive from continuing attivities. Page 10
Drop Inn Minlstries Lirnited Balan Sheet Year Ended 30 September2022 2022 2021 Note Fixed assets Tangible a55ets 12 478.661 440,981 Current assets Debtors Cash at bank and in hand 13 39,045 617,376 54,850 478,135 656,421 532,985 Creditors: amounts falling due within one year 14 185,4881 194,2221 Net current assets 570,933 438,763 Total assets less current liabilities 1,049,594 879,744 Creditors: amounts falling due after one year 1185,6481 1199,7471 Net Assets 863,946 679,997 Charlty Funds Restricted funds Unrestricted funds 16 16 65,061 798,885 19.872 660,125 Total charity funds 16 863,946 679.997 The Pinancial statements were approved and authorised for issue by the Board on 20 June 2023. Sig on behalf of the board of trustees Mr Ronald Dawson, Trustee The notes on pages 10 to 19 form part of these financial statements. Page 11
Drop Inn Ministries Limtted Statement of Cash Flows Year Ended 30 September 2022 2022 2021 Net income for the year Adjusted for: Depreciation Adjustment on assets transfer Ilncreasel/decrease in debtors In¢reasellde¢reasel in creditors 183,949 458,343 28,790 16,272 15,805 18,7371 4,304 18,S871 Net cash flow from operating activities 219.807 470,332 Cash flow from investlng artivttie5 Investment income Payments to acquire tangible fixed assets Sale of tangible fixed a55ets 166,4701 1364,7651 2,975 Net cash flow from Investing activities 166,4701 13GI,7901 Net increase l (de¢reasel In cash and cash equivalents 153,337 108,542 Cash and cash equivalents at l October 2021 254,750 146,208 Cash and cash equivalents at 30 September 2022 408,087 254,750 Page 12
Drop Inn Ministries Limited Nates to Finanual Statements Year Ended 30 September 2022 Summaryof significant accountlng polleies lal General infomiation and basis of preparation The address of the rEgistered office is given in the charity information on page 2 of these financial statements. The charity c¢nstitute5 3 public benefit entity as defsned by FRS 102. The financial statements have been prepared in accortjance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to tharitie5 preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021, the Charlties Act (Northern Irelandl 2008, and UK Generally Accepted Practice as it applie5 from l January 2015 and Companies Act 2006. The flnantial statements are prepared on a going concern basis under the historical cost convention, modified to include rtain item5 at fair value. Assets and liabilities are initially recognised at historical cost or transattion value unle55 Otherwise stated in the relevant accounting policy. The financial Statements are presented in sterling which is the funrtional currency of the charlty. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all Periods presented unle55 Otherwise stated. Ibl Funds Unrestritted funds are available for use at the discretion of the trustee5 in furtherance of the general objectives of the charity and which have not been desi8nated for other purpose5. Designated funds comprise unrestrirted fund5 that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the finanoal statements. Restricted funds are funds which are to be used in accordance with specific restrittions imposed by donors or which have been raised by the charlty for partfcular purpose5. The c05t of raising and admlnistering such funds are charsed a8ainst the specific fund. The aim and use of each restricted fund is Set out in the notes to the flnanclal statements. (c) Income recognition All incornlng resources are included in the Statement of Financlal Activities ISOFAI when the charlty is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. For donations and grants to be recognised the charity will have been notified of the amounts. If there are conditions attached to the donation 3nd this requires a level of performance before entitlement Can be obtalned then income is deferred until those conditions are fully met or the fulfilment of those condition5 55 within the control o* the charity and it is probable that they will be fulfilled. Donated facilities and donated professional services are recognised in income at their falr value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example the amount the charity woulé be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure. Page 13
Drop Inn Ministries Limited Note5 to Financial Statements Icontlnued) Year Ended 30 September 2022 l¢} Income recognition Icontinuedl Income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which se the value is derived from the cost to the donor or the estimated resale value. Donzted faulities and services are recognised in the accounts when received if the value can be reliably measured. No amount is induded in the financial statements for volunteer time in line with the SORP IFRS 1021. For legaoes, entitlement 15 the earlier of the charity belng notified of an impending dlstribution or the legacy being received. At this point income is recognised, On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasion5. the legacy is treated as a contingent asset and disclosed. Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying good5 and services in order to raise funds and is recognised when entitlement has occurred. Idl Expenditure retognition l expenditure15 accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or tonstrurtive obligation to make payments to third parties, it 15 probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headinE5: Costs cf raising funds includes the cost of all fundraising activities, events. non-charitable trading activities and the sale of donated goods,. Expenditure on charitable activities includes all costs incurred b¥ the charity in Undertaking activitie5 that further its charitable aims for the benefit of its beneficiaries,. and Other expenditure represents those items not falling Into the categories above. Irrecoverable VAT is charged as an expense Bgainst the 3Ctivity for which expenditure arose. lel Support costs allocatlon Support Costs are those that a55lSt the work of the charity but do not directly represent charitable activlt5es. They are incurred directly in 5UPPOrt of expenditure on the object5 of the charity. Governance costs are those incurred in connection with adrnini5tration of the charity and compliance with constitutional and statutory requirements. Pa8e 14
Drop Inn Ministrle5 Umlted Notes to Financial statements (continued> Year Ended 30 September 2022 lfj Tangible flxed as*ts Tangible fixed assets are stated at cost lor deemed costl or valuation less accumulated depreciation and accumulated Impairment losses. C¢st includes costs dirertly attributable to maklng the a55et capable of operating as Intended. Depreciation is provided on all tangible fixed assets, at teS calculated to write off the cost, less e5tlmated residual value, of each asset on a systematic basis over its expected useful life as follow5: Freehold buildings Plant and machinery Fixtures and fitting5 Motor vehicles 4% straight Ilne 25% reducing balance IO% reducing balance 20% Straight line Land and buildings were valued using cost basi5. Igl Debtors and credltors receivable I payable wlthln one year Debtors and creditors with no stated interest rate and receivable or payable within one Period are recorded at transathion price. Any losses 2risin8 from impairment are re¢ognised in expenditure. (h) Provisions Provisions are recogni5ed when the Charity has an obllgatlon at the balance Sheet date as a result of a p3St event, it $5 probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estlrnated. (11 Leases Renta15 payable and receivable under operatin8 leases are charged to the SOFA on a straight line basis over the period of the lease. (i) Foreign currency Foreign currency transactions are Initlally recognlsed by 8ppSyin8 to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. Monetsry assets and Ilabilities denominated In a foreign currency at the balance sheet date are translated using the closing rate. Ikl Employee beneffts The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable (11 Financial instruments The charity only has financial a55ets and liabilities of a klnd that qualify as b3si¢ financial instruments. Baslc financial instruments are initially recognised at transaction value and subsequently measured attheir settlement value. Page 15
Drop Inn Ministrles Limited Notes to Financial Statements {contlnuedl Year Ended 30 September 2022 {ml Tax The charity Is an exempt charity and is considered to pass the tests set out in Paragraph I Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes, {n) Going concern The flnancial statements have been prepared on a gains concern basis as the trustees believe that no material uncertaintie5 exist. The tru5tee5 have considered the level of fund5 held and the expected level of income and expenditure for 12 month5 from authori5in8 these financial statements. The budgeted income and expenditure is sufpicient with the level of reserves for the charity to be able to contlnue as a going contem. Income from donations and legaues Unrestricted Restricted 2022 2021 Gifts and church tythes Gifts received for Humanitsrian aid Governmentgrants 64,271 64,271 95.049 17,9421 40,045 53,994 758,772 95,049 17,9421 56,329 95,049 151,378 852,811 Income from donatlon$ and legacies was £151.378 In the year of whlch, £95,049 was attributable to restrirted and £56,329 was attributable to unrestricted fund5. Income from other trading activities Unrestricted Restrlcted 2022 2021 Thrift shop incorne Idonated goods) Hire of Ballyards 2,121,482 8,050 2,121,482 8.050 1,420,886 4,360 2,129,532 2,129,532 1,425,246 Income from other trading activities was £2.129,532 in the year of which £nil was attributable to restricted and £2,129,532 wa5 attributable to unrestricted funds. Page 16
Drop Inn Ministries Limited Note5 to Anancial Statsments (contlnued} Year Ended 30 september 2022 Analysis of expenditure on ralsing funds Unrestrlcted Restricted 2022 2021 Coffee shop purchases Wages and salaries stsff Pension Governance costs Support C95ts allocated to artivities 479 1,034,371 10.481 9,736 527,847 1,084,662 12,916 10.395 612,761 1,084,662 12,916 10,395 612,976 nore7 215 1.720,734 215 1,720.949 1,582,914 OF the expenditure of £1,720,949 in the year £215 was attributable to restrirted funds and £1,720,734 was attributsble to unre5trirted funds. Analysls of expenditure on charitable activities UnTestrirted Restricted 2022 2021 Mission expenses Support costs allocated to activities 326,367 49,645 376,012 227,064 9.736 ot•6 326.367 49,645 376,012 236.800 Expenditure on charitable actlvities wa5 £375,012 during the ye8rof which £49,645 was attributable to restrlcted and £326,367 was attributable to unrestritted funds. Analysi5 Of governance costs Unrestrlcted Restrlrted 2022 2021 Legal and professiDnal fees Consultancy fees Audit and Accountancy 3.445 3,445 5,561 6,950 6,950 4,175 10,395 10,395 9,736 Of the expenditure of £10,395 in the year all were attributable to unrestrlcted funds. Page 17
Drop Inn Ministries Limited Note5 to Financial Statements {contlnued) Year Ended 30 September 2022 Allocation of support Costs Support cost- Raising funds 2022 2021 Premises costs Repairs and Maintenance Motor and travel Depreciation Profit on disposal Office costs lincl. rentsl) Finance Other 421,156 72.636 28.780 28,790 416,613 26.665 18,000 16,272 23,037 32,564 6,013 21,374 20,802 8,121 Tota 612,976 527,847 Net income for the year Net income is Stated after charginEll¢reditingl'. 2022 2021 Depreciation of tangible fixed assets C05t of stock re¢ogni5ed as an expense 28,790 16,272 479 Operating lease renta15 4,875 3,537 Audltoes and Accountancy remuneration The auditorfs remuneration amounts to an audit fee of £2,540 and accountancy services of £4,410. io Trustees, remuneration and expense5 Mr Ronald Dawson ITru5teel received a total remuneration of £44,014, Includlng NIC, durlng the year. Page 18
Drop Inn Ministries Limited Notes to Finanoal statements Icontinuedl Year Ended 30 September 2022 li Staff costs and employee beneflts The total staff costs and employees benefitrs wa5 as follows- 2022 2021 Wages 2nd salaries Social security Defined contribution pension costs 1,025,495 59,167 12,916 989,599 55,137 10,481 1,097,578 1,055,217 The avera8e number of employees during the perlod was 75 with more than half being part time. No employee5 received total employee benefits (excludin8 employer pension costs) of more than £60,000. Tangible fixed assets Land and buildings Plant and machinery including Motor Vehicle Fixtures and fittings Total Cost: At i October 2021 Addition5 Disposals At 30 September 2022 359,114 65,971 37,099 72,102 499 468,315 66.470 425.085 37,099 72,601 534,785 Deprethation; At l October 2021 Charge for the year Eliminated on dispos315 At 30 September 2022 5,228 16.124 8,793 6,758 13,313 5,908 27,334 28,790 21,352 15,551 19,221 56,124 Net book value.. At 30 September 2022 403,733 21,548 53,380 478,661 At30 September2021 353,886 28,306 58.789 440,981 Page 19
Drop Inn Ministrie5 Ltmited Notes to financial Statements Icontinued) Ye3r Ended 30 September 2022 13 Debtors 2022 2021 Other debtors Prepayments and accrued income VAT 26,938 11,239 22,218 32,632 39,045 54,850 14 Creditors: amounts falllng due within one year 2022 2021 Bank Loan Trade creditors Other tax and social SecUtY Other creditors Accruals and deferred income 23,640 6,038 11,433 2,218 42,159 23,640 34 10,164 2,814 57,570 85,488 94,222 15 Creditors: amounts falllng due after one year 2022 2021 Not later than one year 185,648 199,747 185,648 199,747 Page 20
Drop Inn Ministries Limited Notes to Financial Statements Icontinuedl Year Ended 30 September 2022 16 Fund recDnciliation Transferred l October 2021 Balance ot 30 September 2022 Income Expenditure Transfers General Fund Unrestrirted Restri¢ted Fund Restricted income fund 660.125 138,760 798.885 19,872 45,189 65,061 679,997 183,949 863,946 Fund destription5 al Unrestricted funds Unrestricted Income funds are Eeneral funds that are available for use at the trustees, disuetion in furtherance of the objectives of the charity- bl Restrirted funds Restritted fund5 are those donated for use in a particular area or for specrfic purpose5, the use of which is restrtcted to that area or purpose. The restricted funds relate to humanitarian aid. 17 Analy515 of net assets between lunds Unrestricted funds Restrirted funds 2022 Total 2021 Total Fixed assets Current 055ets Creditor5 le55 than one year Creditors more than one year 478,661 632,397 185,4881 1185,6481 478,661 440,981 656,421 532,985 185,4881 194.2221 1185,6481 1199,7471 24,024 Total 839,922 24,024 863,946 679.997 Page 21
Drop Inn Ministries Limited Notes to financial Statements (continued} Year Ended 30 September 2022 18 Pensions and other post-retirement benefits al Defined contributlon pension plan5 The charity operates ? defined contribution pension plan for its employee5. The amount recognised a5 an expense in the year was £12,916. The defined contrlbution liabillty is allocated to unrestricted funds and in expenditu on raislng funds. 19 Related party transactions There are no related party transactions durin8 the year. 20 Financial instruments The carrying amounts of the charity's financial Instruments are a5 follows: 2022 2021 FinunciGI osset5 Cash and cash equivalents 408,087 254,750 Financiul liabilities Trade creditors 6,038 34 21 COVID-19 Pandemic In thi5 period of enormou5 uncertalnty, it is extremely difficult to make future predictions. but the dirertor5 consider that the impact of Covid-19 will be a temporary disruption and will ultimately pass. Given the wldespread governrnent-led support to businesse5, including certain guidance to ban, certain risks are mitigated. The director5 have a reasonable expectatlon that the tompany ha5 adequate resources to continue in operational existence for the foreseeable future. Page 22