NALA Final Accounts 2010

Company Registration No.
342807 (Eire)
NATIONAL ADULT LITERACY AGENCY LIMITED
(A COMPANY LIMITED BY GUARANTEE)
DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2010

COMPANY INFORMATION
Directors Patricia Ayton

Marian O'Reilly
Michael Power
Eddie Staunton
Bernadette Cogan
Breda Kavanagh
Frances Killeen
Eimear Brophy (Appointed 27 March 2010)
Peggy Murphy
Kevin O'Duffy
Cathy Powell (Appointed 27 March 2010)
Cora Rafter (Appointed 27 March 2010)
Carmel Scott
Jane Smith
Secretary Frances Killeen
Company number 342807
Registered office Sandford Lodge,

Sandford Close,
Ranelagh,
Dublin 6.
Auditors Browne Murphy & Hughes

Chartered & Certified Accountants
& Registered Auditors,
28 Upper Fitzwilliam Street,
Dublin 2.
Business address Sandford Lodge,

Sandford Close,
Ranelagh,
Dublin 6.
Bankers A.I.B Bank,

37 Upper O'Connell St.,
Dublin 1.
Anglo Irish Bank Corp plc

18/21 St. Stephen's Green,
Dublin 2.
CONTENTS
Page
Directors' report 1-2
Independent auditors' report 3-4
Profit and loss account 5
Balance sheet 6
Cash flow statement 7
Notes to the cash flow statement 8
Notes to the financial statements 9 - 15
Management information 16 -19

DIRECTORS' REPORT
The directors present their report and financial statements for the year ended 31 December 2010.
Principal activities and review of the business

The National Adult Literacy Agency (NALA) was established in 1980 and from that time has campaigned for
recognition and response to the adult literacy problem in Ireland. The agency continued that work in 2010
through:
-raising public awareness of the extent and the nature of adult literacy difficulties;
-answering literacy related queries from the general public and referring thousands of callers to the VEC adult
literacy services as a result of the ongoing TV advertisement campaign supported by An Post;
-developing and broadcasting a new TV literacy series entitled "Stuck for Words" to support a distance
education strategy;
-advancing research in the area of adult literacy;
-lobbying for increased funding for adult literacy and numeracy work and for the VEC Adult Literacy Service;
and
-lobbying to keep adult literacy as a priority within Government and the Further Education budget.
NALA is funded by the Department of Education and Science through the National Development Plan 2007 -
2016, other government Departments, FAS, the EU Structural Fund, donations and it's members.
The results for the year and the financial position at the year end were considered satisfactory by the directors,
who have worked in 2010 to cut costs and build up a reserve in anticipation of on-going funding reductions in
2011.
The principal risks and uncertainty facing the organisation in the coming year is regarding the funding levels it
will receive from the Department and other sources. In the current economic climate, it is difficult to assess at
this stage whether and to what extent funding levels may be cut.
Results and dividends

The results for the year are set out on page 5.
Directors
The following directors were in office in 2010:
Patricia Ayton
Eileen Condon (Resigned 27 March 2010)
Marian O'Reilly
Michael Power
Eddie Staunton
Gretta Vaughan (Resigned 27 March 2010)
Bridie Daly (Resigned 27 March 2010)
Bernadette Cogan
Breda Kavanagh
Frances Killeen
Eimear Brophy (Appointed 27 March 2010)
Peggy Murphy
Kevin O'Duffy
Cathy Powell (Appointed 27 March 2010)
Cora Rafter (Appointed 27 March 2010)
-1-
DIRECTORS' REPORT (CONTINUED)
Carmel Scott
Jane Smith
Books of account
The company's directors are aware of their responsibilities, under section 202 of the Companies Act 1990 to
maintain proper books of account and are discharging their responsibility by employing experienced staff and
ensuring that sufficient company resources are available for the task.
The books of account are held at the company's registered office, Sandford Lodge, Sandford Close,
Ranelagh, Dublin 6.
Auditors
In accordance with the Companies Act 1963, section 160(2), Browne Murphy & Hughes continue in office as
auditors of the company.
Statement of directors' responsibilities

The directors are responsible for preparing the financial statements in accordance with applicable law and
Generally Accepted Accounting Practice in Ireland including the accounting standards issued by the
Accounting Standards Board and promulgated by the Institute of Chartered Accountants in Ireland.
Company law requires the directors to prepare financial statements for each financial year which give a true
and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period.
In preparing those financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
company will continue in business.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy
at any time the financial position of the company and to enable them to ensure that the financial statements
comply with the Companies Acts 1963 to 2009. They are also responsible for safeguarding the assets of the
company and hence for taking reasonable steps for the prevention and detection of fraud and other
irregularities.
By order of the board
Michael Power Marian O'Reilly

Chairperson Honorary Treasurer
16 February 2011
-2-
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF NATIONAL ADULT LITERACY AGENCY LIMITED
We have audited the financial statements of National Adult Literacy Agency Limited for the year ended 31
December 2010 set out on pages 5 to 15. These financial statements have been prepared under the
accounting policies set out therein.
This report is made solely to the company’s members, as a body, in accordance with Section 193 of the
Companies Act, 1990. Our audit work has been undertaken so that we might state to the company’s
members those matters we are required to state to them in an auditors’ 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
company and the company’s members as a body, for our audit work, for this report, or for the opinions we
have formed.
Respective responsibilities of the directors and auditors

As described in the Statement of Directors' Responsibilities on page 2 the company's directors are
responsible for the preparation of the financial statements in accordance with applicable law and the
accounting standards issued by the Accounting Standards Board and promulgated by the Institute of
Chartered Accountants in Ireland (Generally Accepted Accounting Practice in Ireland).
Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory
requirements and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view, in accordance
with Generally Accepted Accounting Practice in Ireland, and are properly prepared in accordance with the
Companies Acts, 1963 to 2009. We also report to you whether in our opinion: proper books of account have
been kept by the company; whether, at the balance sheet date, there exists a financial situation requiring the
convening of an extraordinary general meeting of the company; and whether the information given in the
directors' report is consistent with the financial statements. In addition, we state whether we have obtained all
the information and explanations necessary for the purposes of our audit, and whether the company's balance
sheet and its income and expenditure account are in agreement with the books of account.
We also report to you if, in our opinion, any information specified by law regarding the directors' remuneration
and transactions is not disclosed and, where practicable, include such information in our report.
We read the directors' report and consider the implications for our report if we become aware of any apparent
misstatements within it.
Basis of audit opinion

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by
the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the
amounts and disclosures in the financial statements. It also includes an assessment of the significant
estimates and judgements made by the directors in the preparation of the financial statements, and of whether
the accounting policies are appropriate to the company's circumstances, consistently applied and adequately
disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered
necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial
statements are free from material misstatement, whether caused by fraud or other irregularity or error. In
forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial
statements.
-3-
INDEPENDENT AUDITORS' REPORT (CONTINUED)
TO THE MEMBERS OF NATIONAL ADULT LITERACY AGENCY LIMITED
Opinion
In our opinion the financial statements:
- give a true and fair view, in accordance with Generally Accepted Accounting Practice in Ireland, of the
state of the company’s affairs as at 31 December 2010 and of its surplus for the year then ended ; and
- have been properly prepared in accordance with the requirements of the Companies Acts, 1963 to 2009.
We have obtained all the information and explanations we consider necessary for the purposes of our audit.
In our opinion, proper books of account have been kept by the company. The financial statements are in
agreement with the books of account.
In our opinion, the information given in the directors' report is consistent with the financial statements.
Browne Murphy & Hughes 16 February 2011
Chartered Accountants
Registered Auditor Chartered & Certified Accountants
& Registered Auditors,
28 Upper Fitzwilliam Street,
Dublin 2.
-4-
INCOME AND EXPENDITURE ACCOUNT
2010 2009
Notes € €
INCOME 2-4 2,515,357 2,704,797
Property Expenses (130,756) (61,455)
Administrative Expenses (142,192) (91,186)
Objective & Project Expenses (2,103,831) (2,345,870)
SURPLUS FOR THE YEAR 138,578 206,286
The income and expenditure account has been prepared on the basis that all operations are continuing
operations.
There are no recognised gains and losses other than those passing through the income and expenditure
account.
Approved by the board on 16 February 2011

-5-
BALANCE SHEET
AS AT 31 DECEMBER 2010
2010 2009
Notes € € € €
Fixed assets
Tangible assets 5 19,484 14,893
Current assets
Stocks 6 10,714 12,619
Debtors 7 34,125 27,625
Cash at bank and in hand 661,076 330,115
705,915 370,359
Creditors: amounts falling due within
one year 8 (155,634) (46,118)
Net current assets 550,281 324,241
Total assets less current liabilities 569,765 339,134
Accruals and deferred income 9 (255,642) (163,589)
314,123 175,545
Represented by:
Surplus 11 314,123 175,545
12 314,123 175,545
Approved by the board and authorised for issue on 16 February 2011

-6-
CASH FLOW STATEMENT
2010 2009
€ € € €
Net cash outflow from operating activities (2,063,934) (2,375,901)
Capital expenditure
Payments to acquire tangible assets (23,271) -
Net cash outflow for capital expenditure (23,271) -
Net cash outflow before management of liquid

resources and financing (2,087,205) (2,375,901)
Financing
Government grant received 2,414,160 2,305,099
Net cash inflow from financing 2,414,160 2,305,099
Increase/(decrease) in cash in the year 326,955 70,802
-7-
NOTES TO THE CASH FLOW STATEMENT
1 Reconciliation of operating surplus to net cash outflow from 2010 2009

operating activities
€ €
Operating surplus 138,578 206,286

Depreciation of tangible assets 18,679 8,180
Decrease in stocks 1,905 805
(Increase)/decrease in debtors (6,500) 6,150
Increase/(decrease) in creditors within one year 105,510 (76,118)
Movement on grant provision (2,322,106) (2,521,204)
Net cash outflow from operating activities (2,063,934) (2,375,901)
2 Analysis of net funds 1 January 2010 Cash flow Other non- 31 December
cash changes 2010
€ € € €
Net cash:
Cash at bank and in hand 330,115 330,961 - 661,076
Credit Card Balance (927) (4,006) - (4,933)
329,188 326,955 - 656,143
Bank deposits - - - -
Net funds 329,188 326,955 - 656,143
3 Reconciliation of net cash flow to movement in net funds 2010 2009

€ €
Increase/(decrease) in cash in the year 326,955 (70,802)
Movement in net funds in the year 326,955 (70,802)

Opening net funds 329,188 399,990
Closing net funds 656,143 329,188
-8-
NOTES TO THE FINANCIAL STATEMENTS
1 Accounting policies
1.1 Accounting convention

The financial statements are prepared under the historical cost convention.
1.2 Compliance with accounting standards

The financial statements are prepared in accordance with applicable law and the accounting standards
issued by the Accounting Standards Board and promulgated by the Institute of Chartered Accountants in
Ireland (Generally Accepted Accounting Practice in Ireland), which have been applied consistently
(except as otherwise stated).
1.3 Tangible fixed assets and depreciation

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:
Office Equipment 25% Straight Line

Computer equipment 25% Straight Line
Fixtures, fittings & equipment 25% Straight Line
1.4 Stock
Stock is valued at the lower of cost and net realisable value. Cost is defined as the purchase price of the
books and manuals. The net realisable value would be defined as obsolescence value of the books.
1.5 Revenue recognition

Income represents revenue received from a wide variety of sources, mainly in the form of grants received
and income received in contribution to the general and specific expenses of the organisation.Revenue is
recognised as received, however when income is received with regard to specific activities , this income
is recognised when the relating expenditure has being incurred.
1.6 Pensions
The company operates a defined contribution scheme for the benefit of its employees. Contributions
payable are charged to the profit and loss account in the year they are payable.
1.7 Government grants

Grants are credited to deferred revenue. Grants towards capital expenditure are released to the income
and expenditure account over the expected useful life of the assets. Grants towards revenue expenditure
are released to the income and expenditure account as the related expenditure is incurred.
-9-
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
2 Government grants
2010 2009
€ €
Department of Education & Science -Core Grant 302,000 333,000
-Special Allocation 1,429,415 1,494,000
-Rent Grant 62,524 -
-Deferred 2008 - 93,671
-Deferred 2009 21,500 -21,500
Department of Social & Family Affairs - 25,000
Deferred 2008 - 50,000
Deferred 2009 25,000 -25,000
FAS Income 21,518 7,022
FAS Deferred 2008 - 78,342
FAS Deferred 2010 -6,978 -
Department of Enterprise & Trade 400,000 400,000
Deferred 2008 - 45,059
Department of Education & Skills LMAF 241,536 -
Deferred 2010 -174,409 -
2,322,106 2,479,594
- 10 -
3 Other income
2010 2009
€ €
Membership Fees 25,477 29,642
Conference Fees 6,635 10,330
Miscellaneous 8,991 3,204
Postage 5,532 -
POBAL (ABE) - 6,714
POBAL (ABE) Deferred 2008 - 12,479
EU Projects 853 19,478
EU Projects Deferred 2009 14,556 -14,556
Plain English Income 15,311 43,610
Plain English Deferred 2008 - 80,143
Plain English Deferred 2009 37,915 -37,915
Plain English Deferred 2010 -15,914 -
Bank Interest Received 9,693 6,088
EBS - 37,450
EBS Deferred 2008 - 20,000
EBS Deferred 2009 17,500 -17,500
Dept of Social & Family Affairs 8,250 -
LAT 3,410 4,895
Donations 35,458 321
Irish Hospice 2,901 -
Irish Hospice Deferred 2010 -2,805 -
Merck,Sharpe & Dohme 20,902 -
Merck,Sharpe & Dohme Deferred 2010 -10,242 -
Lottery Grant - 45,294
Lottery Grant Deferred 2009 45,294 -45,294
Lottery Grant Deferred 2010 -45,294 -
An Post - 5,000
184,423 209,383
4 Resource room 2010 2009

€ €
Opening stock of books 10,043 10,848

Purchases for the year 22,276 31,124
________ ________
32,319 41,972
Closing stock of books -9,138 -10,043
________ ________
23,181 31,929
Sale of books 32,009 47,749
________ ________
Surplus for the year 8,828 15,820
- 11 -
5 Tangible fixed assets

Office Fixtures, Total
Equipment fittings &
equipment
€ € €
Cost
At 1 January 2010 129,045 27,871 156,916
Additions 23,271 - 23,271
At 31 December 2010 152,316 27,871 180,187
Depreciation
At 1 January 2010 122,129 19,895 142,024
Charge for the year 13,548 5,131 18,679
At 31 December 2010 135,677 25,026 160,703
Net book value

At 31 December 2010 16,639 2,845 19,484
At 31 December 2009 6,916 7,976 14,892
6 Stocks 2010 2009

€ €
Stock of stationery 1,576 2,576

Stock of books 9,138 10,043
10,714 12,619
In the opinion of the directors, there is no material differences between the replacement cost of stock and
the historic cost amounts.
7 Debtors 2010 2009

€ €
Trade debtors 14,938 19,067

Staff loans 6,012 -
Prepayments and accrued income 13,175 8,558
34,125 27,625
- 12 -
8 Creditors: amounts falling due within one year 2010 2009

€ €
Credit card balance 4,933 927

Trade creditors 2,000 7,332
Other creditors 5,538 25,918
Accruals and deferred income 143,163 11,941
155,634 46,118
Included in other creditors are amounts relating to taxation, as follows:

P.A.Y.E. control account 3,076 25,918
9 Accruals and deferred income
Government
grants
€
Balance at 1 January 2010 163,589

Grants received during the year 2,414,159
Amortisation in the year (2,322,106)
Balance at 31 December 2010 255,642
Grants are deferred in respect of estimated, but specific expenditure, including monies received in 2010
for activities in 2011.
10 Pension and other post-retirement benefit commitments

Defined contribution
2010 2009
€ €
Contributions payable by the company for the year 68,989 66,864
- 13 -
11 Statement of movements on income and expenditure account

Income and
Expenditure
Account
€
Balance at 1 January 2010 175,545

Surplus for the year 138,578
Balance at 31 December 2010 314,123
12 Reconciliation of movements in funds 2010 2009

€ €
Surplus for the financial year 138,578 206,286

Opening funds 175,545 (30,741)
Closing funds 314,123 175,545
13 Pension information 2010 2010

€ €
Employer contribution to pension scheme 66,864 60,608
The company operates a defined contribution scheme. The company contributes 10% of employees
salary. The scheme is operated by New Ireland Assurance.
14 Employees
Number of employees
The average monthly number of employees during the year was:
2010 2009
Number Number
22 18
Employment costs 2010 2009

€ €
Wages and salaries 1,067,847 1,235,002

Other pension costs 68,989 66,864
1,136,836 1,301,866
- 14 -
15 Directors interests
The directors have no interests in the company.
16 Related party transactions
There were no related party transactions during the year except staff loans . At the start of the year, there
were no staff loans outstanding. During the year, monies totalling €8,398 were paid for travel passes for
six staff members, these are being repaid monthly . At the 31st December 2010, €6,012 is still
outstanding to the company.
17 Liability of members
In the event of a winding up of the company, the liability of the members is limited to €1.
18 Approval of financial statements
The directors approved the financial statements on the 16 February 2011.
- 15 -
MANAGEMENT INFORMATION

DETAILED TRADING AND PROFIT AND LOSS ACCOUNT
2010 2009
€ € € €
Income
Department of Education & Science Grants 1,815,439 1,899,171
Other Government Grants 506,667 580,423
Other Income 184,423 209,383
Resource Room 8,828 15,820
2,515,357 2,704,797
Property Expenses 130,756 61,455
Administration Expenses 142,192 91,186
Objective & Project Expenses 2,103,831 2,345,870
(2,376,779) (2,498,511)
SURPLUS FOR THE YEAR 138,578 206,286
- 16 -
SCHEDULE OF PROPERTY AND ADMINISTRATIVE EXPENSES
2010 2009
€ €
PROPERTY EXPENSES
Rent & Cleaning 116,954 49,029
Insurance 5,464 4,214
Light & Heat 6,178 5,947
Repairs & Maintenance 2,160 2,265
130,756 61,455
ADMINISTRATION EXPENSES
Telephone 16,491 15,765
Stationery 11,616 8,087
Postage & Printing 11,702 11,584
Bank Charges 1,941 1,863
Accountancy 12,244 11,747
Audit Fees 9,113 9,113
Miscellaneous 525 4,994
Professional Fees 3,036 -
Office Machine Maintenance 27,734 14,931
Depreciation 18,679 8,180
Expenses - Moving Office 21,389 -
EU Projects 7,722 4,922
142,192 91,186
- 17 -

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Company Registration No.

NATIONAL ADULT LITERACY AGENCY LIMITED

(A COMPANY LIMITED BY GUARANTEE)

DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2010

Directors Patricia Ayton

Secretary Frances Killeen

Company number 342807

Registered office Sandford Lodge,

Auditors Browne Murphy & Hughes

Business address Sandford Lodge,

Bankers A.I.B Bank,

Anglo Irish Bank Corp plc

Directors' report 1-2

Independent auditors' report 3-4

Profit and loss account 5

Cash flow statement 7

Notes to the cash flow statement 8

Notes to the financial statements 9 - 15

Management information 16 -19

Principal activities and review of the business

-advancing research in the area of adult literacy;

Results and dividends

Statement of directors' responsibilities

By order of the board

Michael Power Marian O'Reilly

Respective responsibilities of the directors and auditors

Basis of audit opinion

Browne Murphy & Hughes 16 February 2011

INCOME 2-4 2,515,357 2,704,797

Property Expenses (130,756) (61,455)

Administrative Expenses (142,192) (91,186)

Objective & Project Expenses (2,103,831) (2,345,870)

SURPLUS FOR THE YEAR 138,578 206,286

Approved by the board on 16 February 2011

Michael Power Marian O'Reilly

Net current assets 550,281 324,241

Total assets less current liabilities 569,765 339,134

Accruals and deferred income 9 (255,642) (163,589)

Approved by the board and authorised for issue on 16 February 2011

Michael Power Marian O'Reilly

Net cash outflow from operating activities (2,063,934) (2,375,901)

Net cash outflow for capital expenditure (23,271) -

Net cash outflow before management of liquid

Net cash inflow from financing 2,414,160 2,305,099

Increase/(decrease) in cash in the year 326,955 70,802

1 Reconciliation of operating surplus to net cash outflow from 2010 2009

Operating surplus 138,578 206,286

Net cash outflow from operating activities (2,063,934) (2,375,901)

329,188 326,955 - 656,143

Net funds 329,188 326,955 - 656,143

3 Reconciliation of net cash flow to movement in net funds 2010 2009

Increase/(decrease) in cash in the year 326,955 (70,802)

Movement in net funds in the year 326,955 (70,802)

Closing net funds 656,143 329,188

1.1 Accounting convention

1.2 Compliance with accounting standards

1.3 Tangible fixed assets and depreciation

Office Equipment 25% Straight Line

1.5 Revenue recognition