2023-03-31-accounts

Skilled NI

Company Limited by Guarantee

Statement of Financial Activities (including income and expenditure account)

Year ended 31 March 2023

			2023		2022
		Unrestricted	Restricted
		funds	funds	Total funds	Total funds
	Note	£	£	£	£
Income and endowments
Charitable activities	5	689,107	45,400	734,507	743,984
Investment income	6	26,443	–	26,443	25,018
		─────────	────────	─────────	─────────
Total income		715,550	45,400	760,950	769,002
		═════════	════════	═════════	═════════
Expenditure
Expenditure on raising funds:
Investment management costs	7	7,833	–	7,833	8,198
Expenditure on charitable activities	8,9	835,517	27,458	862,975	787,383
		─────────	────────	─────────	─────────
Total expenditure		843,350	27,458	870,808	795,581
		═════════	════════	═════════	═════════
Net losses on investments	11	(82,471)	–	(82,471)	–
		─────────	────────	─────────	─────────
Net expenditure		(210,271)	17,942	(192,329)	(26,579)
		═════════	════════	═════════	═════════
Transfers between funds		2,693	(2,693)	–	–
		─────────	────────	─────────	─────────
Net movement in funds		(207,578)	15,249	(192,329)	(26,579)
Reconciliation of funds
Total funds brought forward		1,559,543	1,147	1,560,690	1,587,269
		────────────	────────	────────────	────────────
Total funds carried forward		1,351,965	16,396	1,368,361	1,560,690
		════════════	════════	════════════	════════════

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 20 to 31 form part of these financial statements.

17

Skilled NI

Company Limited by Guarantee

Statement of Financial Position

31 March 2023

		2023	2022
	Note	£	£
Fixed assets
Tangible fixed assets	16	11,263	11,780
Investments	17	1,221,052	1,385,278
		────────────	────────────
		1,232,315	1,397,058
Current assets
Debtors	18	49,209	87,198
Cash at bank and in hand		105,889	147,699
		─────────	─────────
		155,098	234,897
Creditors: amounts falling due within one year	19	19,052	71,265
		─────────	─────────
Net current assets		136,046	163,632
		────────────	────────────
Total assets less current liabilities		1,368,361	1,560,690
		────────────	────────────
Net assets		1,368,361	1,560,690
		════════════	════════════
Funds of the charity
Restricted funds		16,396	1,147
Unrestricted funds:
Called up share capital		10	10
Other unrestricted income funds		1,351,955	1,559,533
		────────────	────────────
Total unrestricted funds		1,351,965	1,559,543
		────────────	────────────
Total charity funds	22	1,368,361 ════════════	1,560,690 ════════════

These financial statements were approved by the board of trustees and authorised for issue on 22 August 2023, and are signed on behalf of the board by:

P Donaghy Trustee

R Gilgunn Trustee

The notes on pages 20 to 31 form part of these financial statements.

18

Skilled NI

Company Limited by Guarantee

Statement of Cash Flows

Year ended 31 March 2023

	2023	2022
	£	£
Cash flows from operating activities
Net expenditure	(192,329)	(26,579)
Adjustments for:
Depreciation of tangible fixed assets	9,975	10,302
Net losses on investments	82,471	–
Dividends, interest and rents from investments	(26,078)	(24,599)
Other interest receivable and similar income	(365)	(419)
Accrued (income)/expenses	(4,935)	9,723
Changes in:
Trade and other debtors	37,989	(24,708)
Trade and other creditors	(47,278)	44,722
	─────────	────────
Cash generated from operations	(140,550)	(11,558)
Interest received	365	419
	─────────	────────
Net cash used in operating activities	(140,185)	(11,139)
	═════════	════════
Cash flows from investing activities
Dividends, interest and rents from investments	26,078	24,599
Purchase of tangible assets	(9,458)	(2,566)
Purchases of other investments	(681,229)	(543,503)
Proceeds from sale of other investments	662,984	527,102
Other investing cash flow adjustment	100,000	–
	─────────	─────────
Net cash from investing activities	98,375	5,632
	═════════	═════════
Net decrease in cash and cash equivalents	(41,810)	(5,507)
Cash and cash equivalents at beginning of year	147,699	153,206
	─────────	─────────
Cash and cash equivalents at end of year	105,889	147,699
	═════════	═════════

The notes on pages 20 to 31 form part of these financial statements.

19

Skilled NI

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 March 2023

1. General information

The charity is a public benefit entity and a registered society limited by shares, registered in Northern Ireland with FCA Mutuals Register and a registered charity in Northern Ireland. The address of the registered office is 98/102 Donegall Street, Belfast, BT1 2GW.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

20

Skilled NI

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2023

3. Accounting policies (continued)

Incoming resources

All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

• income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.

• legacy income is recognised when receipt is probable and entitlement is established.

• income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.

• income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

• expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.

• expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.

• other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

21

Skilled NI

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2023

3. Accounting policies (continued)

Tangible assets (continued)

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Short leasehold property - 20% straight line Plant and machinery - 12% straight line Fixtures and fittings - 12% straight line Equipment - 33% straight line

Investments

Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.

Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.

Investments in associates

Investments in associates accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses.

Investments in associates accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value taken through income or expenditure. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted.

Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the associate arising before or after the date of acquisition.

Investments in joint ventures

Investments in jointly controlled entities accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses.

22

Skilled NI

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2023

3. Accounting policies (continued)

Investments in joint ventures (continued)

Investments in jointly controlled entities accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value taken through income or expenditure. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted.

Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the joint venture arising before or after the date of acquisition.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.

Financial instruments

A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

Debt instruments are subsequently measured at amortised cost.

Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.

23

Skilled NI

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2023

3. Accounting policies (continued)

Financial instruments (continued)

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.

4. Limited by shares

The charity is limited by shares, which have nominal value of one pound and carry no right to interest, dividend or bonus.

24

Skilled NI

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2023

5. Charitable activities

	Unrestricted	Restricted	Total Funds
	Funds	Funds	2023
	£	£	£
Department for the Economy	672,143	–	672,143
Service income	16,464	–	16,464
Covid support	–	–	–
Community Foundation NI	–	39,400	39,400
Halifax Foundation	500	6,000	6,500
Other income	–	–	–
	─────────	────────	─────────
	689,107	45,400	734,507
	═════════	════════	═════════
	Unrestricted	Restricted	Total Funds
	Funds	Funds	2022
	£	£	£
Department for the Economy	649,928	–	649,928
Service income	4,794	–	4,794
Covid support	87,460	–	87,460
Community Foundation NI	–	–	–
Halifax Foundation	–	–	–
Other income	250	1,552	1,802
	─────────	───────	─────────
	742,432	1,552	743,984
	═════════	═══════	═════════

6. Investment income

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2023	Funds	2022
	£	£	£	£
Income from listed investments	26,078	26,078	24,599	24,599
Bank interest receivable	365	365	419	419
	────────	────────	────────	────────
	26,443	26,443	25,018	25,018
	════════	════════	════════	════════

7. Investment management costs

	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2023	Funds	2022
	£	£	£	£
Portfolio management	7,833	7,833	8,198	8,198
	═══════	═══════	═══════	═══════

25

Skilled NI

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2023

8. Expenditure on charitable activities by fund type

	Unrestricted	Restricted	Total Funds
	Funds	Funds	2023
	£	£	£
Training and education	814,224	27,458	841,682
Support costs	21,293	–	21,293
	─────────	────────	─────────
	835,517	27,458	862,975
	═════════	════════	═════════
	Unrestricted	Restricted	Total Funds
	Funds	Funds	2022
	£	£	£
Training and education	768,582	405	768,987
Support costs	18,396	–	18,396
	─────────	────	─────────
	786,978	405	787,383
	═════════	════	═════════

9. Expenditure on charitable activities by activity type

	Activities
	undertaken		Total funds	Total fund
	directly	Support costs	2023	2022
	£	£	£	£
Training and education	841,682	16,418	858,100	782,997
Governance costs	–	4,875	4,875	4,386
	─────────	────────	─────────	─────────
	841,682	21,293	862,975	787,383
	═════════	════════	═════════	═════════

10. Analysis of support costs

		Analysis of
		support costs	Total 2023	Total 2022
		£	£	£
Staff costs		9,316	9,316	6,972
Premises		4,805	4,805	4,423
Finance costs		252	252	167
Governance costs		4,875	4,875	4,386
Professional Fees		2,045	2,045	2,448
		────────	────────	────────
		21,293	21,293	18,396
		════════	════════	════════
Net losses on investments
	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2023	Funds	2022
	£	£	£	£
Gains/(losses) on listed investments	(82,471)	(82,471)	–	–
	════════	════════	════	════

11. Net losses on investments

26

Skilled NI

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2023

12. Net expenditure

Net expenditure is stated after charging/(crediting):

	Net expenditure is stated after charging/(crediting):
		2023	2022
		£	£
	Depreciation of tangible fixed assets	9,975	10,302
		═══════	════════
13.	Auditors remuneration
		2023	2022
		£	£
	Fees payable for the audit of the financial statements	4,875 ═══════	4,386 ═══════

14. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

		2023	2022
Wages and salaries		£ 449,981	£ 411,818
Social security costs		37,755	31,719
Employer contributions to pension plans		32,261	30,754
		─────────	─────────
		519,997	474,291
		═════════	═════════

The average head count of employees during the year was 19 (2022: 18).

No employee received employee benefits of more than £60,000 during the year (2022: Nil).

Key Management Personnel

Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the charity. The total compensation paid to key management personnel for services provided to the charity was £96,896 (2022:£122,082).

15. Trustee remuneration and expenses

One trustee, John Savage, received payments totalling £1,240 during the period of the year in which he served as trustee in relation to services provided to the charity. John was employed by the charity until May 2022, prior to his appointment as a trustee.

No trustees were reimbursed for expenses during the year (2022:Nil)

27

Skilled NI

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2023

16. Tangible fixed assets

	Short		Fixtures,
	leasehold	Plant and	fittings and	Computer
	property	machinery	equipment	equipment	Total
	£	£	£	£	£
Cost
At 1 April 2022	141,800	53,695	45,350	86,184	327,029
Additions	1,085	–	6,141	2,232	9,458
	─────────	────────	────────	────────	─────────
At 31 March 2023	142,885	53,695	51,491	88,416	336,487
	═════════	════════	════════	════════	═════════
Depreciation
At 1 April 2022	133,294	53,538	43,943	84,474	315,249
Charge for the year	7,224	31	1,121	1,599	9,975
	─────────	────────	────────	────────	─────────
At 31 March 2023	140,518	53,569	45,064	86,073	325,224
	═════════	════════	════════	════════	═════════
Carrying amount
At 31 March 2023	2,367	126	6,427	2,343	11,263
	═════════	════════	════════	════════	═════════
At 31 March 2022	8,506	157	1,407	1,710	11,780
	═════════	════════	════════	════════	═════════

17. Investments

	Listed
	investments
	£
Cost or valuation
At 1 April 2022	1,385,278
Additions	681,229
Disposals	(662,984)
Fair value movements	(82,471)
Transfers	(100,000)
	────────────
At 31 March 2023	1,221,052
	════════════
Impairment
At 1 April 2022 and 31 March 2023
Carrying amount
At 31 March 2023	1,221,052
	════════════
At 31 March 2022	1,385,278
	════════════

All investments shown above are held at valuation.

Financial assets held at fair value

Investments are held at fair value, which is based on valuation by investment managers Quilter Cheviot.

28

Skilled NI

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2023

18. Debtors

	2023	2022
	£	£
Prepayments and accrued income	13,730	14,617
Other debtors	35,479	72,581
	────────	────────
	49,209	87,198
	════════	════════
Creditors: amounts falling due within one year
	2023	2022
	£	£
Trade creditors	4,756	7,098
Accruals and deferred income	4,788	49,123
Social security and other taxes	9,508	14,343
Other creditors	–	701
	────────	────────
	19,052	71,265
	════════	════════
Deferred income
	2023	2022
	£	£
At 1 April 2022	39,400	–
Amount released to income	(39,400)	–
Amount deferred in year	–	39,400
	────────	────────
At 31 March 2023	–	39,400
	════════	════════

19. Creditors: amounts falling due within one year

20. Deferred income

21. Pensions and other post retirement benefits

Defined contribution plans

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £32,261 (2022: £30,754).

29

Skilled NI

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2023

22. Analysis of charitable funds

Unrestricted funds

	At				Gains and	At 31
	1 Apr 2022	Income	Expenditure	Transfers	losses	Mar 2023
	£	£	£	£	£	£
General funds	1,559,533	715,550	(843,350)	2,693	(82,471)	1,351,955
Revaluation
reserve	10	–	–	–	–	10
	────────────	─────────	─────────	───────	────────	────────────
	1,559,543	715,550	(843,350)	2,693	(82,471)	1,351,965
	════════════	═════════	═════════	═══════	════════	════════════
	At				Gains and	At 31
	1 Apr 2021	Income	Expenditure	Transfers	losses	Mar 2022
	£	£	£	£	£	£
General funds	1,587,259	767,450	(795,176)	–	–	1,559,533
Revaluation
reserve	10	–	–	–	–	10
	────────────	─────────	─────────	────	────	────────────
	1,587,269	767,450	(795,176)	–	–	1,559,543
	════════════	═════════	═════════	════	════	════════════
Restricted funds
	At				Gains and	At 31
	1 Apr 2022	Income	Expenditure	Transfers	losses	Mar 2023
	£	£	£	£	£	£
Belfast City
Council	1,147	–	–	(1,147)	–	–
Community
Foundation NI	–	39,400	(21,458)	(1,546)	–	16,396
Halifax
Foundation	–	6,000	(6,000)	–	–	–
	───────	────────	────────	───────	────	────────
	1,147	45,400	(27,458)	(2,693)	–	16,396
	═══════	════════	════════	═══════	════	════════
	At				Gains and	At 31
	1 Apr 2021	Income	Expenditure	Transfers	losses	Mar 2022
	£	£	£	£	£	£
Belfast City
Council	–	1,552	(405)	–	–	1,147
Community
Foundation NI	–	–	–	–	–	–
Halifax
Foundation	–	–	–	–	–	–
	────	───────	────	────	────	───────
	–	1,552	(405)	–	–	1,147
	════	═══════	════	════	════	═══════

30

Skilled NI

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2023

23. Analysis of net assets between funds

		Unrestricted	Restricted	Total Funds
		Funds	Funds	2023
		£	£	£
	Tangible fixed assets	11,263	–	11,263
	Investments	1,221,052	–	1,221,052
	Current assets	138,309	16,789	155,098
	Creditors less than 1 year	(18,659)	(393)	(19,052)
		────────────	────────	────────────
	Net assets	1,351,965	16,396	1,368,361
		════════════	════════	════════════
		Unrestricted	Restricted	Total Funds
		Funds	Funds	2022
		£	£	£
	Tangible fixed assets	11,780	–	11,780
	Investments	1,385,278	–	1,385,278
	Current assets	233,750	1,147	234,897
	Creditors less than 1 year	(71,265)	–	(71,265)
		────────────	───────	────────────
	Net assets	1,559,543	1,147	1,560,690
		════════════	═══════	════════════
24.	Analysis of changes in net debt
				At
		At 1 Apr 2022	Cash flows	31 Mar 2023
		£	£	£
	Cash at bank and in hand	147,699	(41,810)	105,889
		═════════	════════	═════════

31