Charity Registration No. NIC 105711
Company Registration No. NI027446 (Northern Ireland)
THE BYTES PROJECT
DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
THE BYTES PROJECT
CONTENTS
Page
Charity reference and administrative details
1
Directors' Report
2 - 11
Independent auditor's report
12 - 15
Statement of financial activities
16
(incorporating the Income and Expenditure Account)
Balance sheet
17
Statement of cash flows
18
Notes to the financial statements
19 - 27
THE BYTES PROJECT
(CHARITABLE COMPANY LIMITED BY GUARANTEE)
CHARITABLE REFERENCE AND ADMINISTRATIVE DETAILS
- 1 -
Directors
Ben Carter (Chair)
Andrea McLoughlin (Vice-chair)
Ed Axon
Ciaran Connolly
Neil Cooke
Andrew Hamilton
Stephen Murray (Treasurer)
Ross Thompson
Company secretary
Stephen Dallas
Chief executive officer
Stephen Dallas
Charity number
NIC 105711
Company number
NI027446
Registered with The Charity Commission for Northern Ireland
NIC105711
Registered office and principal office
300-302 Antrim Road
Newtownabbey
Northern Ireland
BT36 5EG
Independent Auditor
Johnston Kennedy DFK
Chartered Accountants
Registered Auditors
10 Pilots View
Heron Road
Belfast
BT3  9LE
Bankers
Bank of Ireland
Belfast City Branch
4 - 8 High Street
Belfast
BT1 2BA
THE BYTES PROJECT
DIRECTORS' REPORT (INCLUDING THE STRATEGIC REPORT)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

The trustees, who are directors for the purpose of company law, present their annual report including the strategic report together with the audited financial statements of the charity for the year ended 31 March 2023. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.

Directors

The following directors have held office since 1 April 2022 (unless stated).

Ben Carter (Chair)
Andrea McLoughlin (Vice-chair)
Ed Axon
Aimee Clint
(Resigned 16 May 2023)
Ciaran Connolly
Neil Cooke
Andrew Hamilton
Colin McCabrey
(Resigned 16 March 2023)
Stephen Murray (Treasurer)
Ross Thompson
Directors' interests
None of the directors of the company held a beneficial interest in the assets of the company. There were no emoluments paid to directors during the current year. Directors did not claim any expenses during the current year in their capacity as Directors.
Chief Executive Officer
Since April 2021 the Chief Executive Officer, known as the Chief Executive Officer and Company Secretary, has been Stephen Dallas.
Structure, governance and management

The Bytes Project is a youth work charity that has been working with the most vulnerable young people in Northern Ireland. We were established in April 1993, when a small group of people designed an innovative concept for Belfast, based on experience in an inner-city project in the USA. The original aim was to build on the entertainment and amusement attraction of computers with marginalised young adults with a focus on 16–25-year-olds.

The Bytes Project is a company limited by guarantee, incorporated on 28 April 1993, and registered with the Charity Commission Northern Ireland on 21 September 2016. It is governed under the company’s Memorandum and Articles of Association.

The Bytes Project’s governance is exercised by the Trustees, who are individuals whose extensive experience at senior executive and management levels in commerce, industry, civil service, academic and community service is made available to Bytes voluntarily. New Directors are appointed following an assessment process. Following appointment, new Directors receive induction briefings on the strategic plan and financial activities of the company.

Day-to-day management of the project is headed by the CEO, assisted by the Programme Leads, Project Managers and administration team, with a limited amount of contracted out assistance also utilized. Issuing from this central coordinated unit there is a line management structure that links and evaluates personnel and work progress at local levels in various Bytes projects and activities. The CEO reports directly to the Chair and Trustees.

 

Administration and accounting oversight operate through monthly reports on income and expenditure with Snr Manager for Finance, Admin and Compliance and Project Managers. These include not only the immediate and cumulative past figures, but also budgetary forecasts. This information is approved by the DCEO and CEO.

 

THE BYTES PROJECT
DIRECTORS' REPORT (INCLUDING THE STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
Risk Management
The Trustees have examined the major strategic, business and operational risks which the charity faces. During this financial year our Financial Protocols and Safeguarding Policy have again been reviewed. A risk register is now included as a standing agenda at Board meetings.
Public Benefit Statement

The charity’s beneficiaries are socially disadvantaged young people.

 

The public benefits of the charity include increased knowledge, skills and qualifications and improved employability for socially disadvantaged young people, increased knowledge, skills and work-related experience and improved employability and increased self-esteem and confidence for the workplace and increased access to further education, training and employment.

 

These direct benefits are demonstrated through:

 

Principal Objectives and Activities

The Charity’s Objects are specifically restricted to the following: to advance education by providing basic training in information technology, video and audio production, electrical and mechanical design and manufacture and related activities to persons aged 16-25 who have little or no formal education qualifications (hereafter referred to as trainees) and in particular:

 

Our vision and mission are:

 

Our new strategy from 2021-24 has named four pillars to drive our work:

 

This report is based on these themes.

During this period, we started to reframe these pillars and refined them to:

 

Our new operational plan for April 2023 onwards will follow these three pillars.

 

THE BYTES PROJECT
DIRECTORS' REPORT (INCLUDING THE STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
Youth Voice
In May 2023, a leading NI think tank published a report called Reconciliation and Deprivation.  A recommendation in this research was that young people need to be directly asked about key questions for their future, challenging that only political leaders speak for communities and young people.     

Since 2020 Bytes has developed the Positive Sparks platform to engage the voice of young people from rural communities about the issues that they want to solve.  A key focus of Positive Sparks was always to enable children and young people to access decision-makers with data and enable them to effectively participate in democratic processes.  We knew we could do that across the local services we provide through Bytes and our member organisations.  However, this year, we recognised that the data we generate is focused on free-flowing text.  This has made analysis difficult.  Therefore, during this year, we undertook two experiments:
Experiment One: Consistent Approach to Assessing Local Needs
From June to September 2022, we supported 9-member organisations and our youth hubs to complete a needs assessment using digital forms.  We used a standard survey for groups and used the data to produce several reports.  Once we had the data, it was shared with young people in each of the areas for their review and feedback in the form of quotes.  This was compiled into a final report for each area so they could engage key stakeholders and influence decisions in their local area.
This process was more effective in enabling local groups to engage young people and provide them with a report they can use to effectively plan their programmes and influence external stakeholders.  In addition, as we had a consistent approach, we were able to aggregate the data at a regional level.  In total this process engaged over 1,200 young people and approximately 50 young people reviewed the data and provided feedback on the data.  This was a more effective way to engage the voice of young people and reinforced the need for us to evolve Positive Sparks to reduce free-flowing text.
Experiment Two: Positive Sparks – Using a Theme
Between June and November 2022, we talked to young people and our team about their experiences with the Cost of Living.  This is because we understood the impact it was having on young people through our engagements in local communities.  However, we knew that using Positive Sparks in the current form would be too difficult to decode and rapidly present.  Therefore, on the Positive Sparks site, we developed a survey which we shared across social media and our networks of young people.  The survey was live between the 6th and 23rd of December 2022.  In total 1,739 young people aged 11-25 responded to the survey.  It asked young people:
- Are you worse off financially than at the start of summer 2022?
- If you are the bill payer in your household how worried are you about being able to pay?
- If you are not the bill payer how worried are you about your parents/guardians/partner paying your upcoming bills?
- Which rises in costs are you experiencing?
- Which of the following have you had to reduce spending on?
- Have you or your family used a Food Bank this year?
- Would you consider taking on extra work or another job to help cope with rising costs?
A final version of the report is at:  https://www.bytes.org/research/
Each of the points below summarises how we plan to develop our Positive Sparks model in the future:
- Alter the Positive Sparks approach to use structured questions that use scales and one qualitative response.  We also want to develop a function for organisations to leave granular detail that emerges from the small groups reviewing the data for their area.
THE BYTES PROJECT
DIRECTORS' REPORT (INCLUDING THE STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
- Evolve Positive Sparks site to capture the needs of young people under agreed themes and questions which are available to everyone on an open-access digital platform.  This will be in partnership with key regional partners.
- Position Positive Sparks to become the platform of choice for local voluntary organisations when they aim to assess needs in their local areas.  All data will be freely available.
- Train youth workers to use the digital platform to engage young people in reviewing the data and getting more qualitative information.
Youth Empathy
Bytes partnered with Kells and Connor Community Improvement Association to deliver a TBUC project bringing together youth from surrounding communities to discover more about their different identities and cultures. Young people spent time establishing new relationships, exploring good relations learning together and carrying out social action activities. Young people value the opportunity and freedom to try sports from other cultures without pressure.

In partnership with the YMCA, Currynierin Community Centre and Tullyalley Community Centre we delivered a TBUC programme exploring good relations through self-identity and community identity workshops, including community mapping exercises. This culminated in an overnight residential at Todd's Leap for team-building activities. Young people participated in a social action where they delivered care packages to the local old people's homes just in time for Christmas. Overall, the project was a success and most of the participants have continued to interact at the YMCA in Drumahoe through other projects.

The TBUC program involving Lincoln Community and Rutledge group saw two diverse groups come together. They started by working within their community, learning about community mapping and statistics and then sharing their maps with the other group. When the groups came together, they had team-building events at Creggan Country Park. They also took part in sessions looking at healthy relationships and gambling awareness. They had exciting experiences when Giga Training came in and showed different skills such as music producing and DJing. They also got soccer coaches coming out and doing skills nights with the young people.  

Together the two groups came and organised a Halloween Party for all the young people of the area. They promoted it alongside Action Mental Health. The young people went to job fairs and participated in an Art program that showed their work in the Derry Train Station. They worked on their cooking skills and cooked for the different members of the groups when attending the NW Hub Drop-In. We had a celebration event which brought everyone together for bowling and dinner. The groups have continued to meet up regularly in the Bytes NW Hub for the drop-in centre.
Across the Sperrins, we brought together 47 young people from our 2 main communities to participate in eight months of team building & activities. These young people wouldn't normally have an opportunity to mix socially or have formal education with people from outside of their community.
Through activities, the young people were allowed to explore their own identity & the identities of others. Participants looked, not only at our two main traditions but at other traditions. By challenging attitudes & beliefs & learning about diverse traditions, we affected attitudinal change throughout the group.
The team building and outdoor activities were positive. Youth Workers noticed how well the group had gelled and how friendship groups were beginning to develop. These young people would not have had this chance without our programme.
As part of our strategic focus on empathy relates to how we treat all people.  We have explored some new areas of work:
- DE Special Education: we supported several groups to engage with DE to highlight the role youth work organisations play in the support of young people with an SEN.
THE BYTES PROJECT
DIRECTORS' REPORT (INCLUDING THE STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
- Hillcroft Special School: we had several engagements with the team at Hillcroft to explore how young people working towards independent living could use our hub at Glengormley.
Youth Digital
This year Bytes accelerated our work in this area with a range of innovative and creative projects:
Connect with Tech
The Northern Regional College released a tender for the delivery of a Digital Skills programme called Connect with Tech, funded by the Department of the Economy.  The purpose of the contract was to appoint a contractor to deliver a Digital Programme called ‘Connect with Tech'.  This was framed as a new pilot Digital Skills Programme to be delivered in community-based facilities that young people can access as opposed to college campuses/properties.
Bytes created a digital skills intervention programme in partnership with Giga Training.  Giga is a leading digital skills social enterprise with specialisms in VR, sound engineering, video editing and digital design.  Giga has an outstanding track record of developing digital skills with young people.  Bytes and Giga Training designed a Digital Skills and Youth Work Curriculum.  We have a unique insight into how we want to deliver our digital skills programmes to incorporate personal and social development.  The programme delivery was designed to move at the pace of the learner, in the three tiers – initial, intermediate, and advanced.
In total Bytes and Giga engaged 160 young people across each.  We delivered 16 programmes, above the target of 10.  This was due to accepting lower numbers of some programmes due to the needs of young people.  Bytes led the distribution of 160 tablets and a sound bar to all successful completers of the programme.
UK Community Renewal Fund – Youth Start
During our Youth Start project, we engaged with 30 young people from 2 groups in the Glengormley area. The first group were made up of young people from Glengormley High School. Seventeen young people were referred to the group for a range of reasons.  These young people were leaving school with an uncertain destination.  We started the programme with some team-building activities to help build relationships with the young people, this helped as some of the young people didn't know each other and for a lot of the group, it was their first time experiencing group work in a youth work setting.
Throughout the programme we did a range of different activities with the young people. As part of the programme, we had weekly mentoring sessions which most of the group attended regularly. We also covered topics such as digital skills, keeping safe online, cyberbullying, creative videos, and essential digital skills.  Our partners Giga delivered sessions on DJing, music production, virtual reality, and leadership. After completing several different digital aspects of the course, we completed sessions on employability such as CV building, job searches, workplace visits and a career plan. The programme was a great success and through feedback from the young people they all found it enjoyable and beneficial. This programme also helped improve their attendance and improve their attitudes towards schoolwork and their ability to achieve.
The second group we worked with on the Youth Start project were recruited through our on-street work.  The group consisted of 13 young people who had been highlighted for taking part in ASB.  This group wanted to be part of a project that provided them shelter in the evenings.  We used this opportunity to educate the group on the risks of ASB and drug/alcohol abuse and they completed a level 2 OCN in Drug Awareness.  The group also availed of the services provided by Giga. The young people thoroughly enjoyed these sessions and learnt more about technology and digital skills. The group also took part in sessions surrounding their future and employability, taking part in job searching, CV writing and interview skills.
In total Bytes recruited 30 young people on the Youth Start project.  All participants engaged in job searches and 25 participated in life skills support and training. Ten young people progressed into employment.
THE BYTES PROJECT
DIRECTORS' REPORT (INCLUDING THE STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
ESF
We were successful in our application to be part of the Call 3 European Social Fund programme for young people not in education, employment or training.  In total, we supported 122 young people to enrol in our programme across NI.  Our programme focuses on supporting young people to transform their circumstances. We did this by partnering participants with a youth worker who supported each participant to co-design a 12-week programme with tailored training (including our extensive suite of OCN Level 1 qualifications) and employment opportunities. Bytes developed a STEM curriculum which focuses on digital skills, particularly in creative media.   Our results were:
- 21 participants accessed employment
- 39 participants registered for further education and/or training.
Here is an anonymous case study to animate this important work:
R is 22 years old and has social anxiety disorder; they are unable to attend formal education due to this disorder. R is very shy and doesn't like change. They struggle to meet new people and often distance themself from interactions with people they are not familiar with. R has been referred to CAHMS and has been involved with other agencies but has not made much progress with them.
During the 12 weeks with Bytes R has made significant progress in their self-belief and confidence. They have tried many new things, met lots of new people and are confident in their interactions with these new people. R can still struggle initially but it is taking less and less time for them to adjust to new situations and people. R now has the confidence to speak up and share their opinion across a wide range of topics.
Bytes has helped R apply for part-time jobs and a college course.  They are looking forward to starting at the College in September. R has also been successful in obtaining part-time work at a local restaurant. The progress R has made in the past few months has been life-changing for them.  R has become more outgoing, and confident and their levels of anxiety have reduced to the point where they feel that they can engage in activities and interactions that they would normally avoid. R is going from strength to strength, and I have high hopes and belief that they will succeed in achieving their goals in life.
Youth Places
After 30 years of having a presence in Belfast, we chose to leave the city and pursue the development of Youth Hubs across NI. Over several months we talked about our future direction with young people, staff and our Board. This reflection enabled us to consider the roots of Bytes; we used to be built into the fabric of communities across Belfast. We decided to rekindle that approach, but instead of focusing on Belfast, we turned to other areas with limited or inadequate youth services.
In August 2022 we moved into our new offices in Glengormley. We are in the centre of the town in a building spread over 2 floors. One floor has a large youth hub and will be used to help us move towards opening regular provision. The other floor has space for our staff team. We are looking forward to developing a new future for Bytes at this excellent location.
Other Hubs:
North West – We celebrated one year back at our Strand Road Youth Hub supporting young people across the City.  The team have delivered extensive programmes. We have engaged extensively with a wide range of partners including other youth organisations.   We have kept excellent partnerships with a range of schools.  The team are now preparing for the launch of the Youth Start in the Northwest and engaging partners to enable us to support young people to progress into training and employment.
THE BYTES PROJECT
DIRECTORS' REPORT (INCLUDING THE STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
Antrim and Newtownabbey - The team has been working hard across the region this year. They successfully delivered projects in North Belfast and the Antrim and Newtownabbey council areas including projects in the Glengormley area at our new Hub!  We have delivered a project tackling ASB for a second year for the EA in Antrim Town. As part of this project, we deliver 100 evenings of detached sessions per year, engaging young people involved in risk-taking behaviour.   We also support Antrim and Newtownabbey to deliver a range of personal and social development programmes across the Borough.
North Antrim: Our Ballymoney Hub has been very successful as a base to extend our reach in the town and across Villages in the area. This area has been very productive in terms of building partnerships with other organisations with whom Bytes has had no previous contact.
Mid & East Antrim  - We have continued our partnership with Kells & Connor Community Improvement Association (KCCIA), supplying generic non-targetted provision in Kells.  Our membership has grown to over 150 members, with an average of 60 attending regularly.
We have also sought to establish a role for Bytes as a regional support organisation with the EA for local groups. To achieve this groups need to register Bytes as a support organisation on the annual EA registration form. We will explore this area in the coming financial year.
This will enable us to support youth places in areas where we have no presence but can support others to achieve high-quality services for young people.
Achievements and performance

This year we worked with over 10 funders and engaged over 1000 young people. Some examples:

 

 

 

 

THE BYTES PROJECT
DIRECTORS' REPORT (INCLUDING THE STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
Organisational Development

We supported four staff to complete an OCN Level 2 in Youth Work. We also completed 3 staff development days exploring:

 

 

 

We also upgraded staff ICT equipment, including mobile devices. We now have over 60 tablets to support young people in developing their digital skills.

 

As part of the new Bytes strategy ten primary measures have been agreed upon for the organisation:

 

 

 

 

 

 

 

 

 

 

We are working to establish a CRM for the organization to record our progress against these outcomes.

 

Research

 

In March 2023 we published research on the impact of the Costs of Living on young people. We had over 1,700 respondents. We found evidence that young people are experiencing a reduction in disposable income for basic items like toiletries and transport, they are worried about paying bills, and 70% of respondents said their families are using food banks. We are convinced that the current financial climate will erode the mental health of some young people. We need to continue and enhance our services.

Financial review

The results are set out in detail on pages 16 to 27. The Bytes Project returned net income for the year of £126,042 (2022 : £138,223) which comprised a net unrestricted surplus of £143,613 and net restricted deficit of £17,571.

 

At the year end unrestricted reserves amounted to £647,229 of which £27,187 was designated towards fixed assets leaving free reserves of £620,042. Restricted funds at the year end amounted to £125,930 of which £45,243 was designated towards fixed assets.

THE BYTES PROJECT
DIRECTORS' REPORT (INCLUDING THE STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
Reserves policy

The unrestricted funds are essential to supply sufficient funds to cover any unforeseen costs which may arise and fulfil the legal obligations of the charity if current levels of income are not maintained. The charity’s reserve policy is to hold cover in line with the recommendations of the Charity Commission in Northern Ireland. For 2023-24 the Directors aim to retain at least 6 months operating costs in reserve which would be just over £500k. Our free reserves at year end amounted to £620,042.

Plans for Future Periods

The plan for the next financial year has been agreed with main funding coming from European Social Fund, Further Education Colleges, The Executive Office and RANK. We also have minor partners link Paul Hamlyn and Education Authority.

 

The Bytes team have continued to investigate the potential for new funding from Peace Plus and Levelling Up.

 

These sources of funding will help us to achieve our operational plan for April 2023 onwards as detailed above.

Political and Charitable Donations
During the year the company made no political or charitable contributions.
Reference and Administrative Details
The organisations' details are as disclosed on the administrative details page.
Statement of directors' responsibilities

The trustees, who are also the directors of The Bytes Project for the purpose of company law, are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

 

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

 

In preparing these financial statements, the trustees are required to:

 

- select suitable accounting policies and then apply them consistently;

 

- observe the methods and principles in the Charities SORP;

 

- make judgements and estimates that are reasonable and prudent;

 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

 

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. 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 irregularities.

Statement of Disclosure of information to Auditors

We, the Directors of the company who held office at the date of approval of these Financial Statements, as set out above, each confirm so far as we are aware, that:

 

 

THE BYTES PROJECT
DIRECTORS' REPORT (INCLUDING THE STRATEGIC REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
Auditors
The auditor's services will be re-tendered this year in line with our financial procedures.
Special Provisions Relating to Small Companies
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

On behalf of the board

Ben Carter
..............................
Ben Carter (Chair)
Dated: 21 November 2023
THE BYTES PROJECT
INDEPENDENT AUDITOR'S REPORT TO THE BYTES PROJECT
UNDER SECTION 449 OF THE COMPANIES ACT 2006
- 12 -

Opinion

We have audited the financial statements of The Bytes Project (the ‘charity’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

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give a true and fair view of the state of the charitable company's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

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have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s 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.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

THE BYTES PROJECT
INDEPENDENT AUDITOR'S REPORT TO THE BYTES PROJECT (CONTINUED)
UNDER SECTION 449 OF THE COMPANIES ACT 2006
- 13 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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the information given in the directors' report incorporating the strategic report, prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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the directors’ report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report included within the directors' report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

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sufficient accounting records have not been kept; or

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the financial statements are not in agreement with the accounting records; or

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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the statement of directors' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied 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 misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going 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.

THE BYTES PROJECT
INDEPENDENT AUDITOR'S REPORT TO THE BYTES PROJECT (CONTINUED)
UNDER SECTION 449 OF THE COMPANIES ACT 2006
- 14 -
Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

-     identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

-     detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

–     the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory frameworks that the charitable company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006, the Charities Act (Northern Ireland) 2008 and Taxation Legislation.

 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charitable company's ability to operate or to avoid a material penalty.

 

As a result of performing the above our procedures to respond to risks identified included the following:

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

THE BYTES PROJECT
INDEPENDENT AUDITOR'S REPORT TO THE BYTES PROJECT (CONTINUED)
UNDER SECTION 449 OF THE COMPANIES ACT 2006
- 15 -

This report is made solely to the charity 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 charity members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity members as a body, for our audit work, for this report, or for the opinions we have formed.

 

James Gage
.........................................
James Gage (Senior Statutory Auditor)
for and on behalf of:
Johnston Kennedy DFK
Statutory Auditor
Chartered Accountants
Registered Auditors
10 Pilots View
Heron Road
Belfast
BT3  9LE
Dated: 21 November 2023
THE BYTES PROJECT
STATEMENT OF FINANCIAL ACTIVITIES    
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
Unrestricted
Restricted
Total
Total
funds
funds
2023
2022
Notes
£
£
£
£
Income from:
Charitable activities
4
79,188
1,054,097
1,133,285
1,392,717
Expenditure on:
Charitable activities
5
63,464
943,779
1,007,243
1,254,494
Total expenditure
63,464
943,779
1,007,243
1,254,494
Net incoming
15,724
110,318
126,042
138,223
Transfers between funds
14&15
127,889
(127,889)
-
-
Net movement in funds
143,613
(17,571)
126,042
138,223
Total funds brought forward
503,616
143,501
647,117
508,894
Total funds carried forward
647,229
125,930
773,159
647,117
Continuing operations

The Statement of Financial Activities has been prepared on the basis that all operations are continuing operations.

Statement of comprehensive income

There is no other comprehensive income to report for the financial year.

 

Comparatives
The comparative amounts by fund have been disclosed in notes 2 and 3.
Historical cost
The results as disclosed in the Statement of Financial Activities and the net incoming resources for the year have been presented on a historical cost basis.
The notes on pages 19 to 27 form part of these financial statements
THE BYTES PROJECT
(CHARITABLE COMPANY LIMITED BY GUARANTEE)
BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 17 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
72,429
68,595
Current assets
Debtors
10
537,504
820,494
Cash at bank and in hand
334,655
73,183
872,159
893,677
Creditors: amounts falling due within one year
11
(146,568)
(281,475)
Net current assets
725,591
612,202
Total assets less current liabilities
798,020
680,797
Creditors: amounts falling due after more than one year
12
(24,861)
(33,680)
Net assets
773,159
647,117
Funds
Restricted income funds
14
125,930
143,501
Unrestricted income funds
15
647,229
503,616
Total funds
16
773,159
647,117
The financial statements were approved by the Trustees and authorised for issue on
21 November 2023
21 November 2023
and signed on its behalf by:
Ben Carter
Stephen Murray
..............................
..............................
Ben Carter
Stephen Murray
Director
Director
Company Registration No. NI027446
Charity No. NIC 105711
The notes on pages 19 to 27 form part of these financial statements
THE BYTES PROJECT
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
24
310,454
(136,614)
Investing activities
Purchase of tangible fixed assets
(40,163)
(58,908)
Net cash used in investing activities
(40,163)
(58,908)
Financing activities
(Repayments) / advances from bank loans
(8,819)
(7,987)
Net cash used in financing activities
(8,819)
(7,987)
Net increase/(decrease) in cash and cash equivalents
261,472
(203,509)
Cash and cash equivalents at beginning of year
73,183
276,692
Cash and cash equivalents at end of year
334,655
73,183
The notes on pages 19 to 27 form part of these financial statements
THE BYTES PROJECT
(CHARITABLE COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
1
Accounting policies
Charity information

The Bytes Project is a private company limited by guarantee incorporated in Northern Ireland. The registered office and principal office is 300-302 Antrim Road, Newtownabbey, BT36 5EG, Northern Ireland. The nature of the charity's operations and principal activities are given in the directors' report on page 3 of these financial statements.

1.1
Accounting convention

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (second edition - October 2019), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act (Northern Ireland) 2008, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2019.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention.

 

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

1.2
Income and expenditure

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. All income arose wholly in the United Kingdom.

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. The majority of costs are directly attributable to charitable activities. Where costs cannot be directly attributed to particular headings they have been allocated to charitable activities on a basis consistent with use of the resources. Staff costs and overhead expenses are allocated to activities on the basis of staff time spent on those activities.

1.3
Support costs

Support costs are those functions that assist the work of the charity but do not directly represent charitable activities. Support costs include back office costs, finance, human resources, payroll and governance costs which support the charity's activities. These costs have been allocated against the expenditure on charitable activities.

1.4
Fund Accounting

The charity has different types of funds for which it is responsible, and which require separate disclosure. These are as follows:

(a) Restricted funds - Funding received which can only be used for a specific purpose as determined by the funder. Such purposes are within the overall aims of the organisation and are set out in the notes to the financial statements.

(b) Unrestricted funds - Funds which are expendable at the discretion of the directors in the futherance of the objectives of the charity. In addition the funds may be held in order to finance capital investment and working capital.

THE BYTES PROJECT
(CHARITABLE COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 20 -
1.5
Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Fixtures and fittings
25% straight line
Computer equipment
33% straight line
1.6
Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Operating creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Operating creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.7
Taxation

The company is a registered charity and is not liable to tax on funds generated from activities within the scope of the charitable exemptions.

1.8
Pensions

The company operates a defined contribution pension scheme. Pension contributions in respect of the scheme for employees are charged to the profit and loss account as they become payable in accordance with the rules of the scheme. The assets are held separately from those of the company in an independently administered fund. Differences between the amounts charged in the income and expenditure account and payments made to pension funds are treated as assets or liabilities.

THE BYTES PROJECT
(CHARITABLE COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 21 -
1.9

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

2
Statement of Financial Activities:Unrestricted funds
2023
2022
£
£
Income from:
Charitable activities
79,188
39,734
Total income
79,188
39,734
Expenditure on:
Charitable activities
63,464
121,421
Total expenditure
63,464
121,421
Net incoming
15,724
(81,687)
Transfers between funds
127,889
200,052
Net movement in funds
143,613
118,365
Total funds brought forward
503,616
385,251
Total funds carried forward
647,229
503,616
THE BYTES PROJECT
(CHARITABLE COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
3
Statement of Financial Activities: Restricted Funds
2023
2022
£
£
Income from:
Charitable activities
1,054,097
1,352,983
Total income
1,054,097
1,352,983
Expenditure on:
Charitable activities
943,779
1,133,073
Total expenditure
943,779
1,133,073
Net incoming
110,318
219,910
Transfers between funds
(127,889)
(200,052)
Net movement in funds
(17,571)
19,858
Total funds brought forward
143,501
123,643
Total funds carried forward
125,930
143,501
4
Charitable activities
Unrestricted
Restricted
Total
Total
fund
fund
2023
2022
£
£
£
£
Big Lottery Fund
-
4,714
4,714
47,414
Education Authority
-
157,981
157,981
206,973
SEUPB - PEACE
-
2,792
2,792
675,323
ANBC - Life Skills
-
80,291
80,291
-
PCSP
-
51,760
51,760
78,400
T:BUC / CGRF
-
254,201
254,201
190,469
ESF - Launch Pad
-
275,307
275,307
-
Voices 4 Impact
-
22,524
22,524
30,000
YP - Tech Projects
-
149,136
149,136
84,075
Miscellaneous Restricted
-
47,613
47,613
30,273
Covid Recovery Fund
-
-
-
10,056
Fees for services delivered
77,318
-
77,318
36,216
Community funding support
-
-
-
1,000
JRS Grant
-
-
-
2,518
Santander Grant
1,870
7,778
9,648
-
79,188
1,054,097
1,133,285
1,392,717
THE BYTES PROJECT
(CHARITABLE COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
5
Expenditure on charitable activities
Unrestricted Fund
Restricted fund
2023
2022
£
£
£
£
Activity costs
28,407
755,174
783,581
972,731
Support costs
35,057
188,605
223,662
281,763
63,464
943,779
1,007,243
1,254,494
6
Net income/(expenditure)
2023
2022
£
£
Net movement in funds is stated after charging
Depreciation of tangible fixed assets
36,329
23,725
Auditor's remuneration
5,724
5,992
7
Employees
Number of employees

The average monthly number of employees during the year was:

2023
2022
Number
Number
38
49
The number of employees whose annual remuneration was £60,000 or more were:
2023
2022
Number
Number
£60,000 - £70,000
1
-
8
Directors' remuneration

No director received any remuneration or were reimbursed expenditure from the charity during the current or previous year.

THE BYTES PROJECT
(CHARITABLE COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
9
Tangible fixed assets
Fixtures and fittings
Computer equipment
Total
£
£
£
Cost
At 1 April 2022
108,062
672,646
780,708
Additions
35,328
4,835
40,163
Disposals
(39,568)
(393,209)
(432,777)
At 31 March 2023
103,822
284,272
388,094
Depreciation
At 1 April 2022
99,085
613,028
712,113
Depreciation charged in the year
13,329
23,000
36,329
Eliminated in respect of disposals
(39,568)
(393,209)
(432,777)
At 31 March 2023
72,846
242,819
315,665
Net book value
At 31 March 2023
30,976
41,453
72,429
At 31 March 2022
8,977
59,618
68,595
10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Activity debtors
256,393
358,724
Prepayments and accrued income
281,111
461,770
537,504
820,494
11
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
13
8,333
8,333
Other taxation and social security
8,622
38,311
Activity creditors
43,943
46,478
Other creditors
630
7,675
Accruals and deferred income
85,040
180,678
146,568
281,475
THE BYTES PROJECT
(CHARITABLE COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
12
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans
13
24,861
33,680
13
Loans and overdrafts
2023
2022
£
£
Bank loans
33,194
42,013
Payable within one year
8,333
8,333
Payable after one year
24,861
33,680
14
Restricted income funds
Balance at 1 April 2022

Incoming resources

Resources expended

Transfers

Balance at 31 March 2023
£
£
£
£
£
Big Lottery - Exodus
3,035
-
(3,035)
-
-
Big Lottery
-
4,714
(4,627)
-
87
Detached
555
-
-
-
555
Education Authority
59,389
157,981
(177,386)
-
39,984
ANBC - Life Skills
-
80,291
(64,007)
(16,284)
-
SEUPB - PEACE
673
2,792
(15,656)
12,191
-
Street 1
5,029
-
-
-
5,029
ESF - Launch Pad
264
275,307
(224,631)
(50,940)
-
PCSP Projects
8,154
51,760
(39,275)
-
20,639
T:BUC / CGRF
2,711
254,200
(255,852)
-
1,059
Voices 4 Impact
13,107
22,524
(24,962)
-
10,669
YP - Tech Projects
14,441
149,136
(86,847)
(71,401)
5,329
Santander
-
7,778
(5,126)
-
2,652
Other Small Funds
34,964
47,614
(41,760)
(1,455)
39,363
143,501
1,054,097
(943,779)
(127,889)
125,930
15
Unrestricted income funds
Balance at 1 April 2022

Incoming resources

Resources expended

Transfers

Balance at 31 March 2023
£
£
£
£
£
Unrestricted income funds
503,616
79,188
(63,464)
127,889
647,229
THE BYTES PROJECT
(CHARITABLE COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
16
Analysis of net assets between funds
Tangible
Net Current
Total
Fixed Assets
Assets
2023
£
£
£
Restricted Income Funds
45,243
80,687
125,930
Unrestricted Income Funds
27,186
620,043
647,229
72,429
700,730
773,159
17
Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Between two and five years
18,496
15,531

 

18
Capital commitments

The company had no financial commitments as at 31 March 2023 and at 31 March 2022.

19
Non-audit service provision

In common with many other charities of our size and nature we use our auditors to assist with the preparation of the financial statements.

20
Related party transactions

There were no disclosable related party transactions during the year (2022 - none).

21
Company status

The company is as company limited by guarantee and does not have share capital.

22
Control

The directors control the company. The directors are appointed by and are accountable to the members.

23
Financial commitments

The company had no financial commitments as at 31 March 2023 and at 31 March 2022.

THE BYTES PROJECT
(CHARITABLE COMPANY LIMITED BY GUARANTEE)
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
24
Cash generated from operations
2023
2022
£
£
Net movement in funds
126,042
138,223
Adjustments for:
Depreciation and impairment of tangible fixed assets
36,329
23,725
Movements in working capital:
Decrease/(increase) in debtors
282,990
(493,030)
(Decrease)/increase in creditors
(134,907)
194,468
Cash generated from/(absorbed by) operations
310,454
(136,614)
25
Analysis of changes in net funds
At 1 April 2022
Cash flows
At 31 March 2023
£
£
£
Cash at bank and in hand
73,183
261,472
334,655
Loans falling due within one year
(8,333)
-
(8,333)
Loans falling due after more than one year
(33,680)
8,819
(24,861)
31,170
270,291
301,461
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