Company r¢gistration number.. N1649755 Charity registration number." 108029 Drop Inn Ministries Limited IA company limited by guaranleel Annual Report and Financial Statemenis for the Year Ended 30 September 2023 David Lyttle & Co Ltd Station House 46 Molesworth Street Cooksiown Co Tyrone BT80 8PA
Drop Inn Ministries Limited Contents Reference and Administrative Details TTUSte¢s' Report 2104 Ind¢p¢ndent Auditor5, Report 5t07 Statement of Financial Activities Balonce Sh¢ei Sial¢ment of Cash Flows 10 Notes lo the Finan¢ial Statements 11 to21
Drop Inn Ministries Limited Reference and Administrative Details S¢¢r¢t•ry Mr Thomas Stewart Ch*rlty R¢glstr#tlon Number 108029 Compgny Registratlon Number N1649755 The ¢harity is incorporated in Northern Ireland. 123 K¢gdy Road Amiagh Co Amiagh BT60 3AD R¢gl8tered Offlce Auditor David Lyttle & Co Ltd Si8tion Hous¢ 46 Mol¢swonh Street Cookslown Co TyTone B T80 8PA Pa8¢ 1
Drop Inn MRnistries Limited Trustees, Report The trustee5, who are directors for the PUTposes of company law, preseni the onnual repoff together the financial stai¢m¢nts gnd auditors, r¢port of th¢ charitabl¢ company for the year ended 30 S¢pt¢mb¢r 2023. ObJe¢tlv¢$ Ind 4¢tlvlti¢$ Objects and olms The company's objects ar¢.. To advance the Christian r¢ligion for ihe ben¢fit of the public in the area ofbenefit Asso¢iaiing ¢oge(h¢r the said inhabit8J]ts and the local authorili¢s voluniary and other organisations in the Hrea of benefit in a ¢ommon ¢ffort t(F r¢li¢¥¢ poverty and advoJ)ce education and lo provide fp¢ilit1¢5 in the interests of welfare with the object of improving the conditions of life for the said inhabilanls Publlc benefll The prin¢ipal a¢¢iviies of the charity are to equip and mobilis¢ peopl¢ for mis8ion and to bring hope. help and he91in8 to the huning world through the operation of various humanitarian projecis. The projec15 are financed ihrou8h surplus finds generated by th¢ op¢ra(ion ofnuinerous cl)arity shops. vorious donaiions, sponsorship and fundraising activities. The trustees confim) ihal chey have Complied with the r¢quir¢m¢nts of seciion 17 of the Charities Act 201 I to have due ie8ard to the publi¢ benefii guidance published by the Charity Commission for England and Wa]e5. TTUStee5 and offle¢r$ The trysi¢es and officers serving during the Ye gnd since the year end were as follows.. Trus¢ees'. Mr Neville G8rtland Mr Ronaid Dawson Mr Th(>mas Stewart Mr Micha¢l Rollo Secretary.. Mr Thomas Stewart Strutlure governance m•ngemenl IY4fyre ofxovernlng documeni The Lharity is regisi¢r¢d with the Charities Commission for Norther Ireland IRe8lSt¢r¢d Number 1016941. The eompany is controlled by its tru5tee5 who are directors of th¢ company for the purposes of the Companies Act 2006 and its 8ov¢rned by the provisions contained in the Memorandum and Articles of Association, All trustees are members and direc(ors of the Charitable Comp8ny and stand as guarantors of th¢ ¢horilabl¢ Company in the sum of £ 10 each. HeAdqu4rteTr BAllyards Caitle B]YardS C&8tle is the h¢ad office of all Drop Inn Proj¢ct$. The facilities at Bailyards allows the charity to host prayer events, retr¢ats. Christiaj) conferences and vi51ts from missions team and proje¢1 partners from various nations. During the time period of this financial year w¢ b¢gan to see the usag¢ of Castle continu¢d to develop, following on 8 lull after the COVID period. Pag¢ 2
Drop Inn Ministries Limited Trustees, Report Finu¢¢$ During this finan¢ial y¢ar we have saw a steady. and ai lim¢ strong financia] performan¢¢ in our charity shops. with the development ol'some new siores. including outlet stores that 5¢11 off stock at reduced cost. With a steady. and ot times 8rowing income base we have be 8bl¢ io maintain and grow our support io lo¢ally &$ we51 as intemationally in 30 different nations &% well &$ lo continue 1th capital acquisiiion to aid ihe long-terni Stability of our income base. The chariry end¢avouTS to k¢¢p a prud¢ni amount in reserve foT cash flow PUTPQS¢S bui most funds are spent in the short term. Inttrnallonil Mlsslons During the year. members of the board and senior leadership team we have been gble lo visit intemationaj partners. Teview project work and provide in¢r¢ased leadership suppon to project5. These visils are a greai source of engagement5 to our international partner5. Short-leTm mission experi¢nces often lead to increosed prayer 5UPPOrt for Drop Inn w¢ll 8s on incre&8e in Child Sponsorships and giving to the various projects people visii. A continued aspect of intemational support rhis ye, been increosed support ¢0 project partners in Ukrain¢, h¢lpin8 them address the humanitarian cri51s that has raken pla¢¢ a result of the war. Lo¢al Mlsslonj Local Outreach Ministries- Our tearn continue. appropriate, to V151t local people in need and offer pracli¢al support This helps io ¢onneci disenfranchised peoplc with other OT8anizaiions such foodbonks, social workers etc. Thi5 seTves lo provide a s¢ryice to brin8 1inm¢diale need as well as continuation of5UPPtsrt to facilitate posiiive oui¢om¢s within our local community. In addition we have been abl¢ to partner wilh the Southern Trust lo offeT SUPPOrt to una¢¢ompanied minors arrivinB in Northern Ireland from nations were their liv¥s would hav¢ b¢¢n ai risk. Drop Inn partners with GTace Community Church in Richhill, lo operate a youth ouir¢ach in 'The Living Room, as well as a Drop Inn Centr¢ for youth on W¢dn¢$day nights. Different staff and volunleers offer o saf¢ place for locd youth lo nn¢¢I lo positive resource5 and mentors. Three olour main fo¢uses I0¢1Y ¢on$i$t of.. Aspire Nt, MadluB, and Hope Mission. Statement of trustees, re$pon$ibiliti¢$ Th¢ trusl¢c5 (who ar¢ ${) the directors of Drop Inn Ministrie5 Limited for the purposes of company lawl are responsible for pr¢parin8 the Irusiees, report and the finfinciai statements in accordance wilh applicable law and United Kingdom A¢¢ountirt8 Standards (United Kingdom Generally Accepted Accounting Practice). including FRS 102 Th¢ Financial R¢portin8 Standard applicable in the UK and R¢publir of Ireland Company law r¢quir¢s the trusl¢¢s lo prepare financial statements for each finoncial year. Under company law the trustees must not approve the financial statements unl¢ss th¢y ar¢ sat15fi¢d that tl)¢y giv¢ a true and fair view of the state of affairs of the ¢haritAbl¢ ¢ompany and of the incoming resources and application of resources, including its income and expenditurc. of the charitable company for that period. In preparing thes¢ financial slalemenis, the trnstees ore required to.. select suitable accounting policie5 and apply thern con515tcntly: observe the method5 and princip1¢5 in the Charities SORP: mak¢ judg¢m¢nts and ¢stimat¢5 that ar¢ r¢asonabl¢ and prud¢nt' state whether applicable accounting standards, comprising FRS 102 have been followe(L subject to any material dep8rtures disc105ed and explained in the financial stat¢m¢nts; and prepare the financial statements on the going toncern basis unless it is inappropriate to pr¢sume thai Ihe Charitable company 11 ¢ontinu¢ in business. Page 3
Drop Inn Ministries Limited Trustees, Report state whether applicable accounting standard5, comprising FRS 102 have been followed, Subject to any material departures disc105ed and explained in the financial statements. and prepare the fmancial statements on the going concern b&8is unless it is inappropriate to presume that the charitable company will continue in busine53. The trustees are responsible for keeping proper accounting records that can di105¢ with reasonable accuracy at ny time the financial position of the charitable wmpany and enable them to ensure that the financial Statements comply with the Companies Act 2006and Charities Act (Northern Jreland) 2008. They are also responsible for safeguarding the 3S5ets of the charitsble wmpany and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees ar¢ r¢sponsible for the maintenance and integrity of the corporate and financial inforn]alion included on the charitable company's website. Legislation governing the preparation and dissemination of financia] statements may differ from legislation in other jurisdictions. Dlsclosure of Informatlon lo *udltor Each trustee has taken step5 that they ought to have taken a5 a trustee in order to make themselves aware of any relevant audit infomation and to eyt8bli$h that the ¢h8rity'5 audilor is &war¢ of that infonnution. The trustee5 confirni that there is no relevant infom)ation that they know of and of which they know the auditor is unaware. The annual report was approved by the trustees of the charity on 17 July 2024 and signed on its behalf by: Mr Ronald Dawson Trustee Page 4
Drop Inn Ministries Limited Independent Auditor's Report to the Members of Drop Inn Ministries Limited Opinlon W¢ have audi(ed the fiiian¢iai statements of Drop Inn Ministri¢s Limited Ithe 'charity'l for the year ended 30 September 2023, which comprise the Stalcm¢ni of Financial Activities. Ba]an¢¢ Sheet, Statement of Cash Flows. and Notes to the Financial Statemen15, in¢luding a summary of significani a¢¢ounting policies. The financial r¢porting framework that be¢n applied in their preparation is United Kingdom Accounting Siandards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard appSi¢#bl¢ in (he UK and Republic of Ireland, and applicable law (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial s(aiements'. give a tnje and fair view of th¢ sia¢¢ of the charity's affairs as ai 30 September 2023 and of ils incoming Tesources and application of r¢sources. including its incom¢ and ¢xpendi(ure, for the year th¢0 ¢nd¢d. hav¢ been properly prepared in accoTdanc¢ Kqrh Unil¢d Kingdom Oen¢Tally Accepted Accounting Practice: and have been prepgred in accoTdance with (he requirements of the Compani¢s Act 2006. Basls for oplnion We conducted our audit in accordance with International Standurds on Auditing IUKI IISAS IUKI} and applicable law. Our responsibilities under rhose slgndords are further described in the auditor r¢sponsibilities for Ihe audit of th¢ finan¢ial statements s¢¢tion of our Teport. We are independent of th¢ charity in accordance wilh (he ¢ilii¢al Tequirernents that are relevani to our audit of the finan¢i81 staiements in the UK. includin8 th¢ FRC'S Ethical Standard. and we have fulfilled our other ¢ihi¢oi r¢spon5ibilities in accordance with these requiTem¢nts. W¢ believe that the audit evidence we hav¢ obtained is sufficient and appropriate to provide a b&sis for our opinion. Con¢luslons relatln¥ lo golng ¢on¢ern In audiling the financial sia¢¢menis, we hav¢ concluded that the trustees use of the going ¢onc¢m blS of accouniing in ihe pr¢paralion of the financial s(aleTnenis is appropria¢¢. Based on the work we have p¢rfomi¢d, w¢ have noi identified any ma¢eri&l uncertainiies relgling lo events or condition5 that. individuallv or collectively, mav ¢as¢ significant doubl on the charity's ability to continu¢ a Boing concem for a period ofAt l¢ast twelve months from when the origin0] fin¢17 siaiemenls were authori5ed for issu¢. Our responsibilities and the responsibilities of the trnstees with re5pec¢ to going ron¢em or¢ d¢scribed in the relevant sections of this report. Other Inform4tlo The trustees are Te5pon5ibl¢ for (h¢ other inforniation. The other infomiation compris¢s the inforniaiion included in ihe annual report, other than the financial 5tat¢ments and our auditor's report ihereon. Our opinion on the financial 5tatem¢nts does not ¢over (he other infomiation and, except to the extent oth¢rwi$¢ expli¢itly stated in our report, we do not expre55 any fom of assuran¢e onclusion theT¢On. In connection with our audit of the financial statements, our responsibility is to read the other infornialion gnd. in doing so. ¢onsider wheiher the other information is materially inconsisl¢nt with the financial statement5 or our knowl¢dg¢ ob¢ain¢d in the audit or othenvise appears to be materially misstated. If we id¢niify such material inconsistencies or apparent material misstat¢m¢nts, W¢ ar¢ required to deterniine whether there is a Tnat¢rial Jni5Stat¢zn¢ni in th¢ financial statements or a materia] misstatement of the otheT inforniation. If, b&%¢d on the work we have perlornied. we conclude thal there is a mat¢rio1 misstatemeni of this other inforniation. we aTe required to r¢port that faci. We have nothing to report in this regard. Page 5
Drop Inn Ministries Limited Independent Auditor's Report to the Members of Drop Inn Ministries Llmited Oplnlon on othtT matter pr¢s¢rlbed by the Comp#nles A¢t 2006 In our opinion. based on the work undertak¢n in the course of the audit.. the inforniation given in the Trustees, Report for the fingncial year for which the fingncia] statements are pr¢p8r¢d is ¢onsistent with the f5nan¢ial sialements: and the Trustee5' Report has been prepared in accordance with applicable legal requiremenrs. I¥IAtlers on whlch wt are Tequired lo r¢port by exceptlon In the light ofour knowledg¢ and understanding of thc Charit} and lis ¢nvironment obtain¢d in rhe course of the audit. we have noi id¢niified material misstat¢m¢nis in the Tjusiees, Report. We have nothing to report in respect of the following matters wh¢re the Companies Act 2006 requires us to report to you if, in our opinion,, ad¢quate accounting records have not been kept, or retums adequate for our oudit have not been received from blanche5 not visited by us; or the financial stal¢ments are not in agrecment with the accounting records and returns; or cenoin disclosuTes of trnslees r¢mun¢raiion specified by law are not mad¢. or we hove nol received all th¢ Information ond explanations we require lor our audit. Re$pon91bllllle8 of Iru51ees As explained rnore fvlly in th¢ Staternent oftrustees, responsibiliri¢s Is¢t out on page 3 and 41, the trustees are r¢sponsible for (he preparation of the financial s¢ai¢menis and lor being sat15fied that Ihey 8lV¢ a true ond lair view. and for su¢h ini¢m81 control as the trus(e¢s d¢lemiine is necessary to enable the preparaiion of financi statemen15 thai are fr¢¢ from material misstatement, whether due to fraud or ¢rror. In preparing the finan¢ial siat¢ments, the trusiees are Tesponsible for ass¢ssin8 the charity's ability to conlinue a going concern, disclosing. as applicable, matt¢rs r¢lated to going concern and using the going concern basis of accouniing unless th¢ irusiees either int¢nd to liquidate the charity or lo C¢¢ op¢ralions. or have no realistic aliernaiive but lo do so. Audltor r¢8ponilbllltles for the audll of the flnAnclAI slAtemtnts Our objective5 are to obtain r¢asonabl¢ ossurance about whetheT th¢ finan¢ial $t8iementS &8 a whole are free from mat¢ria] misstatement, whether due to fraud or ¢rror, and lo issue an auditor's report that in¢ludes our opinion. Reonable a55uran¢e is a hi8h level of assurance, but is not a guarant¢¢ that an audit conducted in accordance with ISA5 (UK) will always detect a materi misstatem¢nl when il exists. Mi5Statements ¢an arise from fraud or error and are considered matcriai if, individually or in the aggr¢ga(¢. they rould rewonably be expected lo influence the eronomi¢ de¢isions of users taken on the basis of these financial 5tatem¢nts. Th¢ ¢xl¢nt to which our procedures are capable of d¢i¢¢iing irre8ulariiies. including fraud is d¢tail¢d b¢low', B¢¢ause of the inherent limitations of an audit, ther¢ is a risk that we will not detect all iTTegularities, in¢ludin8 those leading to Materi mi55tatemcnt in th¢ financial statements OT non-complian¢¢ with r¢8ulation. This risk increases the mor¢ that compliance with a law. OT r¢gulbtion is removed from the events and transactions r¢fle¢ted in the tinancial statements, as we will be1¢s5 likely to becorne llwaTe of instance5 of non-romplian¢¢. The risk is also greater regarding I¢gu]drIt1¢s o¢curring due to fraud rather than em)r, &s fraud involves intentional conce¢nI, for8¢ry, collusion. omission or misrepTe5entaion. As part of an audit in a¢cordance with ISAS IUKI, we exercise Professional judgem¢nt and maintain professional scepticism throughout the audit. W¢ a150".- Page 6
Drop Inn Ministries Limited Independent Auditor's Report to the Members of Drop Inn Ministries Limited Identify and seSS the risks of material misslal¢ment of the financiai sial¢m¢nts, whether due to fraud or error, design and perfomi audit Procedure responsive to those risks. and obiain audit evidence that 15 sufficient and appropriate to provide a b&sis for our opinion. Th¢ risk of not deiecting a mateTial mi55t8t¢m¢ni resuliing from fraud is high¢r ihan for one resulting from ¢rror, as fraud may invlove collusion, forgery. intentional omissions, misrepresentations. OT th¢ override of internal control. Obtain an underst8nding of internal control r¢l¢vanl to the audit in ordcr to d¢si8n audit procedures that are appropriate in the circumstan¢¢s, bul not for the PUTpose of ¢XPTcssing an opinion on the effectiv¢n¢ss of the inlemal control. Evaluate the approprial¢ness of accounting policies used 8nd the rea50nablen¢ss of a¢¢ounting estimates and relaied dis¢losures made by the trusl¢¢S. Conclude on th¢ appropriateness of ihe trustees use of th¢ going concern basi5 ofac¢ouniing and, based on the audit ¢viden¢e obtain¢d. whether a Materi un¢crtainity ¢xisis related to events or ¢ondiiions that may cast signifi¢at]t doubi on the Comp£Y'S ability to conlinue as a going ¢oncem. If we conclude tha¢ 8 maierial uncertainty exist5. we are required to draw otteniion in OUT auditor'5 T¢POrt 10 th¢ r¢lated disclosures in the fiJ38n¢ial statemenis or, if such disclosures ar¢ inadequate, to modify OUT opinion. Our ¢on¢lusions are based on ihe audit eviden¢¢ obtained or. if such disclosures are inad¢quai¢, lo Tnodify our opinion. Our conclusions arc based on ihe audii ¢vidence obtained up to th¢ date ofour auditor's Teport. However. future even¢s or Conditions may causc the company to ¢eas¢ lo coniinue as a going con¢em, Evalua1¢ (he oveTall PTe5en(aton, siruciure and content of the financial siatements, including the disc105ure5, and wheih¢r the rinancia] stalemen¢s r¢presenl the undeTlyin8 transactions and events in a manner thal a¢hieve fair presentation. We communicate wiih those char8e5 With 8overan¢e regarding, among other matters. Ihe plann¢d scope find timing of the audit and Significant audit findings, including any signifant deficiencies in internal wnirol that control ideniity during our audit. Use of our report This r¢port is made solely to the charitable company's tru5t¢e$, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Ou audit work has been undertaken so thai we might state to the charity's tnJsi¢¢s those motters we are required state (o them an auditor's report and for no other purpose, To (h¢ fullest extent perniitted by law, we do not a¢¢¢pi or assu responsibility anyone other than ihe charitable company and its trust¢es os a body, for our audi¢ worl for this for the opinion5 e have fomed. en McG¢a8h (Senior Statutory orl For and on behalf of David Lyttl¢ & Co Ltd, St utory Auditor Station House 46 Molesworth Street Cookstown Co Tyrone BT80 8PA 17 July 2024 Pa8¢ 7
Drop IDD Ministries Limited Statement of Financial Activities for the Year Ended 30 September 2023 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Unre51ri¢led fund5 Restrlcled funds Tol*l 2023 Note In¢omt And Endowments from: Donations and l¢gaci¢s Other trading activities Investment income 42,203 2.518.517 3.600 52,028 94,231 2,518,517 3,600 Toial income 2.564.320 52.028 2.616.348 Expendltur¢ on: Raising funds Charitable octivities (1,957,928) 441,917 11,957,943) 478,949 137 0321 Tol81 ¢xpenditure 2,399,845 37.047 12,436,892 N¢1 income 104,475 14.981 179.456 Net movement in fvnds 104,475 14,981 179.456 R¢¢onelllAtlon of funds Total tiinds brought forward 798,890 65.061 863,951 Total funds carried forward 22 963.365 Ilnre51rl¢t¢d rundy 80,042 Regtrlcttd fundg 1,043.407 Tot81 2022 Income And Endowm¢nts from: Donations and legocies Other trading activilies 56.329 2.129532 95,049 151.378 2 129,532 Totol income 2.185.861 95,049 2,280,910 Expendltsre on: Raisin8 funds Charitable activitie5 {1.710,337) 336,762 (2151 49.645 11,710,552) 386,407 Tota] expenditure 2,047,099 49.860 2.096.959 Net income 138,762 45,189 183,951 Net movement in funds 138.702 45,189 183,951 Re¢on¢lll8tloN of funds Total funds brought fonvard 660.128 19,872 680,000 Tots] fund5 caTTi¢d forward 22 798,890 65,061 863.951 All of the chaTity's a¢tivitie5 d¢rive from continuing operations during the above two periods. The funds breakdown for 2022 is shomm in t]ote 22. The notes on pages I I to 21 forni an integral part of these financial statements. Page 8
Drop Inn Ministries Limited (Registration number: N1649755) Balance Sheet as at 30 September 2023 2023 2022 Note Fixed assets Tangible assets tnvestments 15 16 556,788 106,041 478,661 662,829 478,661 Curr¢Dt &$$ets Debtor5 C&sh at bank and in hand 17 18 10,879 627,109 39,046 617,377 637,988 656,423 Credltors: Amount5 falllng due withln one year 19 79,851 85,485 Net Current assets 558,137 570,938 Total agsets legs current llAbllltles 1,220,966 1.049.599 Crtdltors: Amounts falllng due after more than OD¢ ye8r 20 177,559 185,648 Net Assets 1.043,407 863,951 FuDd$ oftbe ¢h8rlty: Restrlcted Income fvnds Restricted funds 80,042 65,061 UDrestrl¢t¢d In¢ome fuDds Unrestricted funds 963,365 798,890 Tot¥1 fund$ 22 1,043,407 863,951 The financial ststements on pages 8 to 21 were approved by the trustees, and authorised for issue on 17 July 2024 and signed on their b¢half by: Mr Ronald Dawson Trustee The notes on pages I I to 21 fom an integral part of these financial 51atements. P88¢ 9
Drop Inn Ministries Limited Statement of Cash Flows for the Year Ended 30 September 2023 2023 2022 Nole Clsh flows from operiting i¢tlvltle8 Net cash inc4)me 179,456 183,951 AdJu#tm¢nts to cash flows from non-csh item5 Depreciation Inv¢sm)ent inc(Trme 31.365 13,6001 28,790 207,221 212,741 Working CAPit#l adjustments tkcTca5¢ in d¢biors DecTease in ¢r¢ditors 17 19 28,167 15,634 15.804 8,737 Net ¢h flows trom operating activities 229,754 219.808 C#sh flows from investing ¢tlvlll¢8 Interest re¢eivabl¢ and similgJ income Purchase oftangibl¢ fixed assets Pur¢ha5e of inv¢sunents 3,598 1109,4921 106,041 106,470) 16 Net Cash flows from investing activities 1211,9351 (66,4701 Cash flowy from fln8ncing actsvliles Repayment of loan5 and borrowings 19 8.089 14,0971 Net in¢r¢&se in cash and cash equivalents 9,730 139,241 Cash and ¢ash ¢quivalents at l O¢tober 617,376 478.135 C&sh and cash equivalents at 30 September 627,106 617,376 All ofthe cash flows are derived from ¢oniinuin8 operations during the above ts¥o periods. The not¢s on pag¢s I I to 21 fom) an integral part of th¢se finan¢ig] statements. Page 10
Drop Inn Ministries Limited Notes to the Financial Statements for the Year Ended 30 September 2023 I Charity stalyi The chariiy is limited by guaraniee, incorpoTat¢d in Northem Ireland, and consequently does not have Share ¢apital. Each of the Irust¢es is liable to Contribute an amouni noi exceeding £1 O towards the assets of the charity in the ev¢nt olliquidation. The address ofils re8iStered office is". 123 Keady Road Arniagh Co Amiagh BT60 3AD Thes¢ financiai statements were authorised for issue by the tNsl¢es on 17 July 2024. 2 Accounting pollel¢8 SurnmAry of signlficartt xccounting poll¢l¢s #nd key accourttlng estlmales Th¢ principa] acctsuniing policies applied in ihe prepttl1 of these financial siatements are sei out below. These policies have been ¢onsis(ently appli¢d to all the year5 pr¢seni¢d. unles5 Oth¢nvis¢ stated. Siattrnent of complian¢e The finoncial siaiemenis have been pr¢pared in accoTdan¢¢ with Accounting and Reporting by ChitIes.. Siai¢ment of R¢¢ommended Prac(i¢e (Bpplicable lo ¢hariii¢s preparing their gccounts in a¢¢ordance with the Finoncial Reporting Standfird applicable in the UK and Republic of Ireland IFRS 10211 (issued in October 20191- Ichariiies SORP IFRS 10211, the Financial Reponing Standard applicable in the UK ond Republi¢ of Ireland IFRS 1021 and lh¢ Companics Act 2006. B9919 of prepar#llon Drop Inn Mini51ri¢s Limited meets the definition ol a publi¢ benefit entity under FRS 102. Assets gnd liabilities are initially recognised at hi5toricai Cost or transaction vaiu¢ unle55 Otherwise sialed in the relevan18¢¢0untin8 policy notes. Golng concern The tru5t¢¢s consider that there are no materia] un¢¢naintie5 about th¢ chariry's ability to Continue a5 a 80ing ¢on¢ern nor any significant areas of uncertainty that aff¢cl the c8ryin8 valu¢ of gssets held by th¢ ¢harity. Infome And endowments All income 15 r¢¢o8nised once the charity h&$ entitlement to the income, it 15 probable that (he income wll be received and the amount of th¢ income receivable can be me&sured reliably. Dontiilons ttndlegacles Donations are recognised wh¢n the charity has been notified in writing of borh the amount 8nd sertl¢ment date. In the event ihat a donation is subject to conditions thai require a lev¢] of perlomionce by the chaTity before the charity is ¢ntitled io the funds. th¢ income 15 deferred and not regnised until either thos¢ ronditions are fully m¢L or the fulfilment of those conditions is wholly within the control of th¢ rharity and it 15 probable that these conditiQll5 will be lfilled in th¢ r¢porting period. Page 11
Drop Inn Ministries Limited Notes to the Financial Statements for the Year Ended 30 September 2023 Granis recelvable Grants are recognis¢d when th¢ charity has an enliilement to the funds and any ¢ondiiions link¢d to ihe gramts have b¢en met. Wh¢rc perfomiancc ¢onditions are atta¢hed to the grant and are yet to b¢ mei. Ihe incom¢ is recognised as a liability and in¢luded on the balance sheet as d¢ferred incoTne io be released. ExpeDdlture All ¢xpenditUTe is recogni5¢d on¢e there 15 a legal or constructive obligation lo that expenditure. it is prob8ble settlement is requiT¢d and the amouni can be m¢&%ur¢d reliably. All costs ar¢ allocaied to the applicable ¢xp¢nditure heading tho1 aggregate similar costs ¢0 thai category, Where costs ¢annoi be diTCC(ly artributed to particular headings they hav¢ b¢¢n a]located on a basis onsistent with the use of resour¢¢s. with ceDiral siaff cost5 allocated on th¢ basis of tirn¢ speni. and d¢preciation chbr8es allocaied on the portion ofthe a5$et's use. Other 5UPPOrt siS are ailocaied ba5cd on ihe Spread of s¢aff cost5. Ralsln¥fun4 These are costs Incued in attraciing voluntary income. the management of investments and those incurred in trading a¢iivities Ihat raise funds. ChtTrlioble a¢ÉlvlÉles Chgritable expenditure comprises those costs incurred by the Charity in the delivery of its aclivities and setvices for ils ben¢ficiorie5. It includes both ¢osis that can be allocated dir¢¢tly to such aclivili¢s and thos¢ costs of an indirect nature n¢c¢ssary to suppon ihem. Governance ¢osts These include ihe costs attribulable to the ¢harity's compliance with constifvtiona] and slglutory requir¢m¢nts, including audit, sira(egi¢ mana8em¢ni gnd trustees meetings and reimbursed expenses. Government grntJ Government grants are TCCO8nised bosed on the accrual model and ar¢ measured at the fair value of the Lssei received or r¢ceivable. Grants are ¢]SIr1¢d &% relatin8 either to Tev¢nuc or to a55¢ts. Grants Telatin8 10 Tevenue ar¢ recognised in income ov¢r the period in which the related costs are r¢¢ognised. GT8nts relating to &ssets are recogni$ed over the expected useful lif¢ of the 8ssel. Wh¢r¢ part of a grani r¢latin8 to an 8gS¢t is deferr¢d, 1¢ is recogni3¢d as deferred In¢ome. TaxtloD Th¢ charity is ¢onsid¢r¢d to pass th¢ t¢sts set out in Paragraph I S¢hedule 6 Of the Finance Act 2010 and therefore li meets (h¢ definition of a charitable company foT UK oorpoTation tax purposes. Accordingly, the ¢hariry is potentidly exempt from tatiOn in respect of income OT capita] gains received within categori¢s ¢overed by Chapter 3 Part I l of the Corporatitsn Act 2010 or Se¢tion 256 of th¢ Taxation of Chargeable Gains Act 1992, to ihe extent thai such income or gains are appli¢d exclusively to charitable purposes. Tlngiblt fixed o$set8 Individual fixed assets costing £250.00 or more are initiaily recorded at cost, less any subs¢qu¢nl accurnulal¢d depreciation and subsequent accumulated impairnicnt losses. Depreciation And 4mort158tio D¢pieciaiion is provided on tangibl¢ fixed asset5 SO &$ to Mrite off th¢ ¢osi or valuation, less any ¢5timated residual value. over their exp¢¢t¢d usefvl economic life as follows., Pag¢ 12
Drop Inn Ministries Limit Notes to the Financial Statements for the Year Ended 30 September 2023 Asset elg85 Freehold buildings Plant ond machinery Fixtures and fittings Motor vehicle5 Depreclatlon method Tate 4 0/• Straighi line 25 /0 r¢ducing balance 10/0 reducing balance 20•/0 siraight line Investment properties Inv¢stm¢nt property is carri¢d at fair va]u¢, derived from the current markei pri¢¢s for Comparable real e5tale deterniined annually by externai valuers. The valu¢TS use obseTrabl¢ market prices, adjusted if ncce5sary for any ditTeren¢e in the nature. location or condition of the sp¢¢ific asset. Changes in fair value are recognised in profit or loss. Cash *nd ¢85h equSv#l¢nl$ Cash gnd ¢a8h ¢quivalents comprise cash on hand and ca]1 deposits, and other short-temi highly liquid investment5 that are readily conv¢rtibl¢ to a knowi amount ofcash and are subject to an insignifi¢an( risk of change in value. Trade ¢redllorJ Trade creditors are obligation5 to pay for goods or services thai have been acquired in the ordinary course of business from suppli¢rs. Accounts payable are classified as current liabilitie5 if the charity does noi hav¢ an unconditional right, at the end of Ih¢ r¢porting period. 10 deter seitlement of the crediloT lor al least twelve months after Ihe reporting dai¢. If th¢r¢ 1$ on un¢onditional ri8hi ¢0 d¢l¢r $¢iilemeni for at let e1ve month5 after the reporting date. they are presenied as non-¢urreni Trade creditors are recognised initially at the tranSa¢¢ion pri¢e and subsequenrly measured a¢ amonised ¢osi usin8 th¢ eff¢¢iiv¢ int¢r¢si m¢ihod. BorTowlngs In(erest-bearing borrowings are initially Tecorded ai fair value. nei of Iransa¢lion ¢osls. Interest-b¢aring borrowings are subsequently ¢&Tried at amortis¢d ¢os¢, wi¢h th¢ diff¢ren¢¢ b¢tween the proceeds, nei of transaction costs. and the amount due on redemption being re¢o8nised as a ¢harg¢ to th¢ Stat¢ment of Financial Activities over the period of the relevant bOowing. Int¢r¢st ¢xp¢ns¢ is r¢¢ognised on the b&sis of the effective inter¢st method and is included in interest payable and sirnilar ¢haT8es. Borrowings are ¢10ssified as ¢urr¢nt li8bilili¢s unless the ¢harity an un¢onditiono1 riBht lo defer settlernent of the liobility for at least twelve month5 aftcr the reporting date, Forelgn exchange Transactions in foreign CuenCieS are recorded at the rate of exchange al the date of th¢ transaction. Monetary &8sets and liabilities denomin&(ed in foreign currencies at the balance sheet dale are reported at the rates of exchange prevailing at that date. Fund .slructyr¢ Unrestricied incorne funds are general ndS that are available for use at the trustees discretion in furtherance of the objectives of the charity. R¢striot¢d iDfQTn¢ funds ar¢ thos¢ donat¢d fgr use in a particular prea or for 5p¢¢ific PUTpose5. the us¢ of wthich is r¢stricted to that area OT PUTPOSe. Page 13
Drop Inn Ministries Limited Notes to the Financial Statements for the Year Ended 30 September 2023 Pensions other post retirement obligallons The charity operates a defincd contribution pension s¢hem¢ which is a pension plan under which fixed contributions are paid into a pension nd and the charity has no lega] or coi)structive obligation to pay rther Coniriburions ¢v¢n if Lh¢ fund does not hold sufficient assets to pay ] employees thc b¢nefits relating to ¢mploy¢¢ setvice in (he current and prior periods. Coiitribuiions lo d¢fin¢d contribution plans are recognised in the Statement of Financiai A¢iivili¢s wh¢n they ar¢ due. Jf ¢ontribution payments exceed the contribution due for service. the excess is recognised as a pr¢paym¢nl, FlnAn¢lil Instruments CldsslJ7¢ollon The ¢hariry only has fingn¢i81 8s$¢ts and liabiliiies of a kind Ihgt qualify as b&81¢ financial instrnment5. Basic financia] instruments are initially recognised ai transaction value and subsequently measured al (heir s¢lllemeni value. 3 In¢om¢ from don•tlons And legaeles Ilnrtstrl¢ted rund$ Gtneril R¢ylrl¢t¢d funds Total funds Donations and lega¢ie$' Gifts and church tythes Gifts received for Humanitarian aid 42,203 42.203 52,028 52,028 Tol41 for 2023 42.203 52,028 94.231 Tol41 for 2022 56,329 95.049 151.378 4 Ineome from other trAdlng aetlvltles Unreitrlcted funds General Tot*1 funds Trading income., Shop income from sale of donated goods and services Hire ofBa]lyords 2,508,877 9,640 2.508,877 9.640 Totil for 2023 2.518 517 2 518 517 Total for 2022 2,129,532 2,129,532 Page 14
Drop Inn Ministries Limited Notes to the Financial Statements for the Year Ended 30 September 2023 S Investment income Unrestricted funds General Tibtgl rurtds Income from rents 3.600 3.600 Tts141 for 2023 6 ExpenditUTe on r4i5ing fundy •) CoJt3 ofirdln% i¢tlvltl¢$ Unrestrlcted funds General Reylrl¢ted funds Totil funds Note D¢pre¢io1ion, omortisarion and oih¢r similar Costs Other direct costs of liVi(]eS for 8¢n¢ratinB funds 31,365 608,759 31,365 608,774 Tot1 for 2023 640,124 640,139 Tot41 for 2022 612558 215 012773 7 Expendlture on ¢hgrltable o¢tlvltl¢J Activity support Costs 2023 Mission expenses 468,223 Activity %upport ¢ostg 468,223 2022 Mission expenses 376.012 376012 In addition to the ¢xp¢nditUTe ana]ysed above, there are also governance costs of £1 0,726 {2022 - £10,395) whi¢h relate dir¢¢tly to charitable activities. See note 8 for fLher details. Pag¢ 15
Drop Xnn Ministries Limited Notes to the Financial Statements for the Year Ended 30 September 2023 8 Analysis of gtsveTn8n¢¢ ind sUPPOrt ¢osts Govern#n¢e ¢o$tg Unrestricted funds G¢n¢ril Tot41 2023 Audit fees Audii of the finon¢ial statements Independent ex8miner fees Preparation of annugl accounts L¢BfjI I¢¢s 2.330 2.330 4.045 4.351 4.045 4.351 10.726 Unreylricled fund5 General Total 2022 Audit fees Audii of the finan¢ial siaremenis Indepcndeni examiner fees Other fees paid lo examiners Legal fees 2.540 2,540 4.410 3,445 4.410 3,445 10,395 10,395 9 Nel Ineomlngloutgolng r¢$our¢ Nel in¢omin8 r¢soiir¢¢5 for the year include.. 2023 2022 Audit lees Depreciation of fixed &ssets 2.330 31.365 2,540 28,790 10 Trustee8 remunerAtlon and exp¢n5es During the year the charity made the following transactions with ¢rusiees'. Mr RonAld Dawson Mr Ronald Dawson received remuneration of £45,89212022.. £44,014) during the year. Page 16
Drop Inn Ministries Limited Notes to the Financial Statements for the Year Ended 30 September 2023 11 Stiff ¢08ts Th¢ aggregat¢ payroll costs were as follows.. 2023 2022 StAif Costs during the y¢4T wer¢: Wages and salaries Social security cost5 Pension costs Other staff ¢osts 1.228.342 74.595 14.815 52 1.025.495 59.167 12,916 201 1,317,804 1,097.779 No employee re¢¢iv¢d ¢moluments of more than £OO.000 during the year, 12 IDdep¢nd¢nl exgmlner'5 remunertlon 2023 2022 Other fees lo exlrnlners Preparation of annual accounts 4.045 4,410 13 Audltors, remunerAllon 2023 2022 Audit ofthe fingnciai statements 2,330 2.540 14 Txation The charity is a registered charity and is therefore exempt from taxation. P48¢ 17
Drop Inn Ministries Limited Notes to the Financial Statements for the Year Ended 30 September 2023 15 TAngible fixed 855ets Land 4nd bulldings Furnlture and equlpmtnt Motor vehi¢l¢J Tot91 Cost At l O¢iober 2022 Additions 425,085 82,733 84,393 7,764 25,307 18,995 534,785 109,492 A130 S¢ptemb¢r 2023 507,818 92,157 44,302 644,277 Depr¢¢l4tlon At l October 2022 Charge for the year 21,352 17,003 26.039 6.729 8,733 7,633 56,124 31,365 AI 30 September 2023 38.355 32,768 16.366 87,489 Net book value At 30 Sepi¢mber 2023 469,463 59,389 27.936 556,788 At 30 S¢pi¢mb¢r 2022 403,733 58.354 16.574 478 661 16 Flxed i9g¢t Inveslmenls 2023 Inv¢stment properties 106,041 Investment properllei Inv¢Jtment prop¢rtl¢J Cost or V4lu*tlon Additions 106,041 Provi910 At 30 September 2023 Net book volue At 30 Scpt¢mb¢r 2023 106041 The investment property w&% purchased during the financia] ye. The property w&8 valued on 30th September 2023 by the direciors who are internal to the company. The b&8is for this valuation was fair valu¢. The dir¢¢tors do not believe that theTe 15 a materia] difference between the current market va]u¢ and the initial purchase price of the propejry. The valuation was made on an open mark¢t vu¢ basis by r¢f¢Ten¢e to market evidence oftransaction prices for similar prortIC5. Pa8¢ 18
Drop Inn Ministries Limited Notes to the Financial Statements for the Year Ended 30 September 2023 17 D¢bto 2023 2022 Prepayments VAT recoverable Oth¢r debtors 9.494 26,939 11.239 868 1.385 10,879 39,046 18 Cash #nd cash equlv*lentJ 2023 2022 C&sh on hand C&sh at bank 10.543 616,563 24.024 593.352 627,106 617.376 19 Credltors: amounts f4lllng due wlthln one y¢•r 2023 2022 Bank loans Trade Creditors Other taxotion and social security VAT crediior Other creditor5 Accrua15 23,640 13,943 17,671 1,702 3,322 19,573 23.640 6.038 11,433 2.215 42.159 79,851 85,485 Creditors due within one year in¢ludes th¢ following liabiliii¢$, on which security ha5 been given by the charity., 2023 2022 Bank Loan 23,640 23.640 Page 19
Drop Inn Ministries Limited Notes to the Financial Statements for the Year Ended 30 September 2023 20 Credllors.. Imounts f4lling due #ft¢r one yeAr 2023 2022 Bank loans 177,559 185,648 Creditors amounts falling du¢ 8ft¢r more than one year in¢lud¢s ih¢ tollowing liabilities, on which security has been given by the ¢harily'. 2023 2022 Bank Loan 177,559 185.648 Th¢ bank loon liability relates to a legal mortgage and commercial a]1 monies charge ov¢r propety at 71 79 Am)a8h Road, Portadown. 21 Penslon and other Jth¢mei Defined contrlbullon penslon scheme The charity op¢rat¢s a defined contribution pension s¢hem¢. Th¢ pension cost char8e for ihe year repres¢nts contributions payable by (he ¢hariiy io th¢ s¢h¢me and amounted to £14,81512022 £12,916). 22 Funds Balince #l I October 2022 Incomlng regour¢¢9 Re$our¢¢s expended Balance gt 30 September 2023 [Inrestrlcted funds Gen¢ra] 798.890 2,564,320 12,399,845) 963,365 Restrlcted fundy 65,061 52,028 80,042 Tol81 fundj 863,951 2,616.348 2.436,8921 1.043,407 Incoming rejourrey Resources expendtd Balan¢t #t 30 September 2022 Oclober 2021 Unrestricted funds G¢n¢ra] 660.128 2,185,861 12,047.099) 798,890 Restrlcted funds 19,872 95.049 49,800 65,061 Tot*1 funds 680,000 2,280.910 2.096.959 863,951 Pag¢ 20
Drop Inn Ministries Limited Notes to the Financial Statements for the Year Ended 30 September 2023 23 Analysis of net 4$sets between fund5 Unrestricted funds Gtneral Total funds at 30 September 2023 Restricted funds Tangible fixed assets Current assets Current liabilities Creditors oveT l year 556.788 557,359 {78.1491 177.559) 556,788 637.600 {78.1491 177,5591 80.241 Tota] nct assets 858,439 80.241 938.680 IlnreJlrl¢led fundi Gener41 Tot¥1 funds •¢ 30 S¢pt¢mber 2022 Restrlcted fund8 Tangible fix¢d &ssets Cuent asseis cUent liabiliti¢s Creditors over l year 478,661 591,161 185.4851 185,648 478,661 656.422 185.4851 1185,648 65,261 Tot nei assets 798,689 65,261 803,950 24 An&ly81s of net fundy At l October 2022 At30 September 2023 C&%h al bank and in hand 017,376 617,376 N¢1 debi 617.376 At l Octob¢r 2021 617,370 At30 Stpternber 2Q22 Cash at bank and in hand 478,135 478,135 Net debi 478.135 478,135 Page 21