Appendix 3) Financial Accounts

Statement of Financial Activities

an Income & Expenditure Account

*Exceptional Item

Extern Northern Ireland and Department for the Economy NI (DfE), the managing authority of the European Social Fund, reached an understanding earlier this year on ineligible historical costs associated with one project under this funding. The settlement of £601,879.40 relates to funding over six years 2015–2021 and was agreed to be remitted to DfE over one year. The total funding of this project over the six years was £8.5m. During all years, all costs were expended in the delivery of services. Annual auditing by DfE was part of the terms of funding and Extern facilitated auditing each year which verified the work, eligibility of expenditure and adequate trails. It was during the annual auditing in 2021 that some specific historical claims were identified as ineligible. Extern co-operated fully with DfE in an open and transparent manner to bring about an agreeable resolution. Extern continues to receive funding from the funder to deliver essential services to support the most vulnerable in our society.