2023-07-31-accounts

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THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

ANNUAL REPORT

YEAR ENDED 31[st] JULY 2023

COMPANY NUMBER: 02511501 REGISTERED CHARITY: 1001565

THE LIVERPOOL INSITUTE FOR PERFORMING ARTS

Annual Report

For the year ended 31[st] July 2023

	Page
Legal and Administrative Details	2
Operating and Financial Review	3
Corporate Governance Statement	12
Trustees’ Responsibilities Statement	16
Financial Statements auditor's report	18
Consolidated and Institute Statement of Comprehensive Income and Expenditure	21
Consolidated and Institute Statement of Changes in Reserves	22
Consolidated and Institute Balance Sheets	23
Consolidated Statement of Cash Flows	24
Accounting Policies	25
Notes to the Accounts	30

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Legal and Administrative Details For the year ended 31[st] July 2023

Status

The Liverpool Institute for Performing Arts (referred to as LIPA, the Institute or the company and collectively with its subsidiary the group) is a company limited by guarantee, with each member guaranteeing £1. Its registered company number is 02511501. The company is also a registered charity, number 1001565.

Registered Office

Mount Street Liverpool L1 9HF

Advisors

Bankers

Santander plc Bridle Road Bootle Merseyside L30 4GB

Solicitors

Weightmans LLP 100 Old Hall Street Liverpool L3 9QJ

Financial Statements Auditors

Crowe UK LLP 3rd Floor The Lexicon Mount Street Manchester M2 5NT

Internal Auditors

RSM Risk Assurance Services LLP 14[th] Floor 20 Chapel Street Liverpool L3 9AG

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Operating and Financial Review For the year ended 31[st] July 2023

The directors present their Annual Report, including the Strategic Report, together with the group’s audited Financial Statements for the year ended 31[st] July 2023.

1. Constitution and Objectives

LIPA is a company limited by guarantee. It does not have any shares and the liability of its members is limited. LIPA is a registered charity.

The objective of the company is the provision of education and training in the performing arts. In pursuit of this objective, the company became sole trustee of The Liverpool Institute Charity on 8[th] October 1993. The governing document of the company is its Articles of Association, which define the framework for corporate governance. The directors confirm compliance with both current statutory requirements and the governing document. In particular, the report complies with the requirements of the Charities Act 2011.

2. Organisation and Decision-Making Structure

The directors, who are collectively referred to as Council, are also the trustees. New directors are appointed by the Council. The directors during the year and up to the date of signing the accounts were as follows:

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Isabel Begg Joe Johnson
Gina Carter Kim Johnson
James Dow Ian Jones (to 28 June 2023)
Louise Ellman Sean McNamara
Victoria Fea Roger Morris (to 30 September 2022)
Mark Featherstone-Witty David Owen
David Fletcher (from 23 June 2023) Simeon Scheuber-Rush (to 15 August 2023)
Simon Fowler Andrew Westwood (to 30 September 2022)
Geoffrey Goodwin – Chair Claire Workman
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The Council has established, through a scheme of delegation, several sub-committees, some of which are formed on a short-term basis. Full information on company membership and committees may be obtained from the Company Secretary. Further information of the six main committees is detailed in the Corporate Governance Statement below.

3. Background

LIPA is dedicated to providing the best teaching and learning for people who want to pursue a lasting career in the arts and entertainment sector. This is provided through a series of courses aimed at different age groups. These include pre-higher education courses, undergraduate and postgraduate programmes for those aged 18 and over and performing arts classes for 4-19 year olds.

LIPA began teaching students in 1996. It was designated a higher education institute in 2006. It was formed by a combination of the ideas of the Founder, Mark Featherstone-Witty, Sir George Martin and Sir Paul McCartney to develop a specialist performing arts school and also to save the school building in which Sir Paul had studied, from dereliction. Eleven years of planning and fundraising preceded the opening in 1996.

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Operating and Financial Review

For the year ended 31[st] July 2023 continued

LIPA is not a conventional dance, drama or music college although the standard of professional training reflects the best of such institutions. The training process is based on an awareness of the need for performing artists and those who make performance possible to collaborate creatively and integrate with their peers. The synergy between performers, producers, managers, designers and technicians enables the students to replicate industry practice giving a better understanding of the business they are entering. It prepares students for a lasting career in the performing arts industry.

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4. Strategic Report

As a registered charity, the strategic report contains key aspects of LIPA’s performance relating, but not limited to:

Review of Activities and Achievement;
Results for the year;
Capital expenditure;
Cash flows;
Treasury Policies and Objectives;
Public Benefit;
Strategy and Risk;
Estates; and
Immediate Prospects.

5. Review of Activities and Achievement

(a) Higher Education

Undergraduate and Postgraduate Programmes

A total of 929 students undertook LIPA’s BA degree programmes as follows:

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BA Acting 109
BA Acting (Screen and Digital Media) 48
BA Applied Theatre and Community Drama 54
BA Creative Technologies and Performance 44
BA Dance 100
BA Management of Music, Entertainment, Theatre and Events 81
BA Music 88
BA Music Songwriting and Performance 135
BA Music Songwriting and Production 70
BA Sound Technology 86
BA Theatre and Performance Design 50
BA Theatre and Performance Technology 64
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Of the students, 730 were eligible for funding from the Student Loan Company and 199 came from countries other than the UK. In addition, 33 students undertook LIPA’s postgraduate programmes.

LIPA’s degree programmes are validated by Liverpool John Moores University as the awarding body, which confers the qualifications. This arrangement has been in place since LIPA’s inception. Additionally, LIPA’s academic standards need to meet the regulatory requirements imposed by the Office for Students (OfS), as the Higher Education sector’s regulator. LIPA’s OfS registration is full and without condition, demonstrating a commitment to quality of education.

Foundation Certificate

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In addition to the BA and postgraduate courses, 8 students studied on the LIPA foundation certificate in Popular Music and Music Technology and 13 students undertook the LIPA foundation certificate in Acting.

These certificates are accredited by Liverpool John Moores University. The courses are a one-year full time intensive vocationally orientated programme designed to enable progression into the industry or provide preparation for degree level work. They receive no public funding.

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(b) LIPA 4-19 Part Time Academy

LIPA 4-19 is a part time performing arts academy for 4 to 19 year olds. It aims to produce multidisciplined all round performers with courses that comprise song, dance and acting. Courses are carefully designed to reflect the correct stage of performing arts development for each age group. For the individual, the skills learned help develop confidence and presentational skills. They stimulate imagination and creativity.

Its development originally centred on LIPA’s premises but also a secondary school in Maghull. Expansion has also been achieved by introducing classes on Sundays and advanced classes. In general, all LIPA managed courses are oversubscribed with a large waiting list.

In 2022/23 many of the students aged 7 to 19 undertook exams in musical theatre, early starters aged 5 to 6 undertook speech and drama exams.

Many students graduating from LIPA 4-19 have been accepted at highly credited colleges such as Guildford School of Acting, Performers College, Arts Educational, Urdang Academy, Mountview Academy of Theatre Arts, the Royal Academy of Dramatic Art (RADA) and Central School of Speech and Drama.

Once the students reach 16, many of them go on to train at the LIPA Sixth Form College and have also been accepted to study at LIPA on the degree courses.

LIPA 4-19 activity has additional corporate benefits: non-government revenue streams, utilisation of specialist facilities outside the normal Higher Education usage and generating expansion without the need for high levels of capital investment.

6. Results for the Year

The Financial Statements comply with the current statutory requirements and have been prepared in accordance with Applicable Accounting Standards in the United Kingdom. This includes the Statement of Recommended Practice (SORP): Accounting for Further and Higher Education 2019 and in accordance with note 1 of the Accounting Policies.

At 31st July 2023 the group had total unrestricted reserves of £19,823,082, cash at bank of £3,892,273 and no borrowings. The directors believe that sufficient resources are available to fulfil adequately the obligations of the group.

The group generated a surplus in the year to 31 July 2023 of £311,197 (2022: £725,751). The overall figure represents a surplus of 2.4% on income (2022: 5.6%). The financial objectives of the group include a targeted return of at least 3% of income and therefore whilst not met in the year to 31 July 2023, they have been met, cumulatively, over the past two years.

Total income increased by £273,523 to £13,131,020. The increase in income is due to additional funding received from the OfS offset by additional expenditure related to that income.

Income from government sources totalled £1,648,808 (2022: £908,579). This represents 12.6% of total income (2022: 7.1%). The increase is due to the OfS awarding additional funding for specialist institutions offset by a reduction in capital funding received from the OfS.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Operating and Financial Review

For the year ended 31[st] July 2023 continued

Operating expenditure increased by £688,077 to £12,819,823. This increase covered staff related expenditure which rose by £212,982 to £8,386,508 partly due to general wage increases but also investment in staff levels. Staff costs represented 63.9% of total income and 65.4% of total expenditure (2022: 63.7% and 67.3% respectively). Other operating expenses increased by £433,956 to £3,443,585 due to higher activity levels and general price rises.

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7. Capital Expenditure

The total capital additions in the year to 31 July 2023 were £884,644 (2022: £814,260). This money represented the start of an investment phase in campus and facilities, with further capital enhancements planned in the year to 31 July 2024.

8. Cash Flows

The consolidated Cash Flow shows a net cash inflow from operating activities of £680,049 (2022: £1,239,346).

Total cash balances and deposits were £3,892,273 at 31[st] July 2023 (2022: £4,061,464). The group had no borrowings at 31[st] July 2023 (2022: £nil).

During the year, LIPA maintained healthy cash balances which were higher than the planned balances in the cash flow forecast. External borrowing to fund future campus investments has been discussed and agreed but has not been deemed necessary up to the point of writing these financial statements.

9. Subsidiary Undertakings

The company has one subsidiary undertaking, LIPA Enterprises Limited. Any distributable surpluses generated by the subsidiary are transferred to the Institute by way of donation in accordance with the Memorandum and Articles of Association. The company has been dormant since 1 August 2020 and has generated no surplus or deficit in the year to 31 July 2023 (2022: no surplus or deficit).

10. Unrestricted Reserves

LIPA deems all unrestricted reserves to be free funds for use in achieving the objectives of the company. The directors’ view is that it is prudent to ensure that there are sufficient free funds at the current level to provide financial flexibility for the development of the strategic plan. Reserves will be utilised to ensure the continuing operation of the group and the expansion of capacity when appropriate. LIPA’s approach is to retain sufficient free cash, or have bank facilities available, to meet three months’ expenditure.

11. Endowment Reserves

Expendable endowment funds represent bursaries and student project funds which are to be distributed over a significant period of time.

12. Treasury Policies and Objectives

Treasury management is the management of the Institute’s cash flows, its banking and money market transactions. The major risks relate to the security of the banking institutions where surplus cash is invested and the exposure to fluctuating interest rates. Given the current economic environment, there is no risk-free strategy. The Institute has adopted a risk minimisation strategy and only holds money with large high-street lenders (primarily Santander plc).

13. Pensions

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The Institute participates in only one defined benefit scheme, the Teachers’ Pension Scheme. It is not possible to separate out LIPA’s share of the scheme. As a result, it is treated as a quasi-defined contribution scheme. After each valuation the future contribution rates are adjusted. The last adjustment occurred in 2020, with contributions due to be increased from March 2024. A full explanation of pension commitments is given in note 26 to the accounts.

14. Policy on the Payment of Creditors

Payment terms for goods and services are agreed with the suppliers at the time of placing orders and are adhered to by the company. The company’s policy is to pay creditors on the due date and this was maintained throughout the year to 31 July 2023.

15. Accessibility and Widening Participation

LIPA is committed to a fair and transparent admissions system. There is no discrimination on grounds of race, ethnicity, gender, sexual orientation, religion, disability or age. To ensure suitability is assessed effectively, undergraduate interview and audition events were undertaken. Specialist support is provided for students with disabilities. Tutors have experience of working with dyslexia, mental health problems, long-term health problems, stress, organisational difficulties and sensory impairments. IT equipment provided includes accessibility software.

LIPA is particularly concerned to engage with disadvantaged young people and strives to widen participation from groups that are under-represented in higher education. LIPA is committed to a range of outreach initiatives and fair access measures, as detailed in the 2020/21 to 2024/25 Access & Participation Plan. These are targeted towards:

First degree entrants from lower socio-economic groups;
Those from black and minority ethnic groups;
Mature learners; and
Students from low participation neighbourhoods.

LIPA is also keen to promote applications and support pupils with disabilities and those with experience of being in care.

In pursuit of these objectives LIPA provides a number of financial support initiatives. In the year to 31st July 2023 these included:

A LIPA bursary of £560, plus a further additional £40 cost of living support payment, to all students with a household income of £25,000 or below; and
A care leavers bursary of £1,000 to students who joined us aged 25 or over and who had been in care for six months or more prior to their 16th birthday.

We also chose to remove audition fees for all Acting applicants who applied for 2023. This means that we no longer have any audition fees, as part of efforts to reduce the costs for prospective students auditioning with us.

Through the Widening Participation (WP) team’s activity, LIPA offers a range of opportunities for young people across the country that are designed to raise awareness and aspiration towards higher education progression. These are targeted at school/college groups and individuals primarily interested in performing arts and making performance possible.

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During the year to 31st July 2023, LIPA worked closely with eight partner schools containing a significant number of students from under-represented groups. In order to encourage interest in performing arts-related subjects and identify talented students in these areas LIPA provided:

Tailored support workshops, known as LIPA Tasters, in partner schools with Year 7, 8 and 9 pupils (along with Year 10 and Year 11 pupils in some cases), reaching 349 learners; and
Year 9 taster events in June, open to partner schools plus others from across Merseyside. These were attended by over 200 participants from 15 schools.

From year 10 onwards, LIPA offered a two-year programme of activities for individuals from state schools who met at least one WP eligibility criteria. This structured progression framework for Year 10 and Year 11 students during this year consisted of:

Review by WP staff of self-tape submissions and online auditions onto the programme, designed, in part, to give participants audition experience;
A welcome event in early March for new participants and parents explaining the future activities on offer and showcasing the benefits of getting involved in the programme. This was attended by 24 young people and their accompanying supporters;
LIPA XTRA, a 3-day non-residential course attended by 29 Year 10 students who are interested in progressing to LIPA in the future. They chose to study acting, backstage, dance, music or singing for the week and participated in a series of practical workshops;
The LIPA Summer Xperience, a 5-day non-residential summer school attended by 32 students finishing year 10. Working together across multiple disciplines to put on their own production, the week culminated in a performance in the George Harrison Workshop Studio Theatre; and
16 after-school skills workshops, plus a weekend film making project, for Year 11 students between January and April 2022 covering various topics in acting, dance, music / singing and making performance possible (4 per discipline).

For students studying at a Sixth Form or Further Education College, LIPA delivered:

Get Set, a 3-day course attended by 42 students who are interested in applying to LIPA for 2024 entry. They chose to study acting, dance, music/singing or theatre design/technology for the duration of the project, which included a focus on application and audition awareness. Get Set was run as a residential experience with students staying in a local hall of residence and taking part in evening activities. As we were oversubscribed, we also ran an additional summer school in August 2023, with some related recruitment and planning costs for this being accrued within the 2022/23 financial year;
A range of workshops with eight partner colleges for young people studying performing arts and making performance possible subjects at level 3 and considering higher education for 2023 and 2024 entry (additional workshops were also offered through schools and colleges liaison work);
Audition preparation phone calls for students from low participation neighbourhoods throughout January, February, March and April; and
A pilot regional audition preparation workshop for those considering applying to drama school at The Nottingham Playhouse in July.

LIPA also responded to a variety of requests for ad-hoc activities from various schools and community groups. In the year to 31st July 2023 LIPA provided:

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A further two visits to LIPA by non-partner schools and colleges. These visits included a tour and talk and, on occasion, a workshop in the students’ chosen subject. These visits reached 30+ students from Years 9 to 13;
In-school or online workshops at/with a further three schools;
Attendance at 67 careers fairs in local and regional schools / colleges with a LIPA / HE information stand;
The opportunity for local schools / colleges to attend suitable public performances. This included running two additional schools-only performances of Lord of The Flies (alongside post-show Q&As with the cast), attended by four school/college groups;
Music Theory preparation workshops during November attended by 4 students interested in applying to music courses;
Online and in-person sessions in collaboration with Backstage Niche, aimed at encouraging more students from black and ethnic minority backgrounds into backstage training roles;
Two collaborative talks with other HE providers through the Unifrog platform;
Hosting of and support for three arts-week programmes for looked after young people, delivered by Collective Encounters; and
Cover of travel costs for a local college to attend a public performance put on by Applied Theatre and Community Drama students.

LIPA has also engaged in activities closer to home, supporting its additional education ventures. Through Access Agreement allocation, LIPA funded visits by LIPA Primary staff to nurseries in low participation neighbourhoods to encourage progression to LIPA Primary School. LIPA also financed and hosted an induction morning in July for all children and their parents / carers due to start at the Primary School in September 2023. Pupils currently at the LIPA Primary School participated in a series of inspirational assemblies and workshops sessions in acting, singing, dance and backstage delivered through LIPA’s widening participation provision.

Learners at LIPA Sixth Form College participated in activities designed to raise awareness of the process for applying to study in Higher Education and to assist with building confidence and skills for preparing auditions / interviews. This included talks and audition preparation workshops across some discipline areas, as well as portfolio preparation sessions for Production Arts students across the year.

Finally, LIPA was involved in supporting a number of collaborative outreach activities with other HE providers across Liverpool. This spend has been accounted against additional funding relating to support of the Uniconnect Programme.

16. Public Benefit

LIPA’s primary charitable purpose is the provision of education and training in the performing arts. Details of the courses and programmes and the number of students who have participated are given earlier in this Review.

LIPA seeks to provide benefits both to the wider public and to targeted groups of individuals who might not otherwise experience or participate in the performing arts. In pursuance of this objective LIPA has:

Run a series of public performances with wide-ranging themes linked to LIPA’s creative purpose; Provided management support and training for new businesses, either through LIPA’s own initiatives or in combination with others;
Given financial support for a number of graduate businesses;

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Generated new graduates’ business employment;
Used LIPA’s location, infrastructure, contacts, track-record and reputation to assist a variety of enquirers;
Contributed through technical theatre programmes to the region’s live entertainment industry;
Worked in the community, including cultural activities for young people, asylum seekers, offenders and those with addiction issues; and
Sponsored and provided on-going support to The LIPA Multi Academy Trust.

17. Strategy and Risk

Linked to the overall strategic plan to 2026, a comprehensive risk register has been produced which links the goals within the strategic plan to the risks of not achieving those goals. Where appropriate there are also action plans in place to mitigate these risks.

Applications to LIPA each year are approximately eight times the number of places available. As noted above it had free cash of £3,892,273 available on 31[st] July 2023 and no borrowings.

In overall terms, LIPA is a relatively low risk organisation with a reputation for excellence, drawing students from across the world. However, it is not risk free nor does the low level of risk mean that the Institute is complacent about its future, especially having regard to:

Increased competition in the Higher Education marketplace;
Potential changes in the funding arrangements for UK students;
The impact of the UK Government’s changes to immigration laws and the impact of this on international student recruitment patterns and staff mobility; and
The steps needed to achieve Degree Awarding Powers.

The key strands of LIPA’s strategy and risk management are to:

Continue to provide high quality ‘in person’ teaching aligned to performing arts industry, thereby providing the best possible student experience;
Maintain and increase the level of student intake, in terms of both quality and numbers, including overseas students;
Develop new facilities, including music, technical and performance spaces, designed specifically to meet LIPA’s specialist needs;
Manage costs appropriately whilst balancing the needs of the student experience; and
Monitoring the wider economic and political landscape and use lobbying and influence groups to ensure that our needs are recognised.

18. OfS Funding

For the year ended 31[st] July 2023 OfS income provided 11% of LIPA’s total funding. This included capital grant income and Specialist Institution Funding in the form of a recurrent grant. The majority of UK student funding is through loans provided by the Student Loan Company to students to fund their tuition fees.

19. Estates

LIPA has been operating for circa 25 years and has been at the forefront of the development of the Georgian quarter of Liverpool. One of LIPA’s aims was to save the Liverpool Institute building

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attended by Sir Paul McCartney, from dereliction. The building was completely refurbished at a total cost of £13.6m. LIPA occupies the Mount Street property in accordance with the Scheme of the Charity Commission which makes LIPA the trustee of the Liverpool Institute Charity.

In March 2012, LIPA acquired the freehold property at 68 Hope Street, on the basis that the building would provide scope for expansion and enhancement of the facilities on offer at that time. Following extensive alteration work, the building now provides high quality teaching spaces for the benefit of LIPA students.

LIPA spent £6.9m (including £3.9m of OfS funding to upgrade infrastructure and facilities between 2018 and 2021 as part of a successful capital bidding process. This money was invested into creating additional spaces on the campus. Further to this additional funding was received in 2022 to provide extra facilities linked to its technology-based courses.

Further investments in the estate took place over the summer of 2023 to continue to enhance the provision for students, including remodelling of the Reception area and investment in upgrades to Music facilities. This is part of an ongoing investment in resources planned as part of the current strategic investment cycle, linked to the overall strategic direction.

20. Immediate Prospects

The plans for the next three years are laid out within LIPA’s Strategic Plan and include enhancement of the curriculum, growth of student numbers into areas linked to growth industries, aligned with industry partners, achievement of Taught Degree Awarding Powers and forging stronger partnerships, both locally, nationally and internationally.

Whilst investing in the future, the Group will also continue to:

Review all courses offered and introducing new courses where demand justifies this; Optimise the funding available to achieve a maximum impact on the student experience; Pursue Value for Money in all aspects of the group’s activities; and Review all new appointments as posts become available.

21. The LIPA Multi Academy Trust

LIPA’s strategic plan for 2012-17 included the development of primary provision. To this end, The LIPA Primary School was incorporated on 30[th] November 2012 and was full with seven year groups by September 2020. It was graded as ‘good’ by Ofsted following an inspection in July 2017.

Commencing September 2021, it changed its name and remit to become a through-school, entitled the LIPA Primary and High School. This coincided with an intake of 52 pupils into Year 7 and there have been subsequent intakes each September meaning that the oldest pupils are now in Year 9.

Alongside this, The LIPA Sixth Form College was incorporated on 24[th] December 2013 and opening in September 2016. It is now heavily oversubscribed and was graded as ‘outstanding’ by Ofsted following an inspection in February 2020.

On 1[st] May 2022, the LIPA Sixth Form College changed its name to The LIPA Multi Academy Trust (LIPA MAT) and absorbed the assets and liabilities of the LIPA Primary School. The LIPA MAT is a company limited by guarantee, with charitable status. Whilst LIPA is a corporate Trustee and Sponsor

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and some of its Members and Council Directors are involved with The LIPA MAT as Members and Trustees, the company does not constitute a subsidiary of LIPA.

22. Stakeholder Relationships

LIPA’s stakeholders include students, staff, alumni, patrons, the OfS, employers, government offices, Liverpool residents, professional bodies and practitioners.

23. Equal opportunities and employment of disabled employees

LIPA is committed to ensuring equality of opportunity for everyone. LIPA respects and positively values differences in race, gender, disability and disadvantaged backgrounds. Applications for employment by disabled persons are given full and fair consideration in accordance with their particular aptitudes and abilities. In the event of an employee becoming disabled, every effort is given to retrain them in order that their employment with the company may continue.

24. Fundraising

LIPA does not carry out fundraising to the general public.

25. Going Concern

After a thorough review of the Group’s status as a going concern, the Council has agreed that the Group has sufficient resources to continue to meet its obligations as they arise over the next 12 months. The Group has a five-year financial forecast that is cash positive. Student numbers for the September 2023 intake are broadly in line with expectations and, up to the time of signing these financial statements, student withdrawal levels are not out of line with previous years. The Group has undertaken stress testing on the assumptions within its financial forecasts and believe that the risk of significant adverse performance is very low.

26. Financial Statements Auditors

A resolution to reappoint Crowe UK LLP will be proposed at the Annual General Meeting.

The approval of the Operating and Financial Review includes the approval of the Strategic Report as well as the responsibilities required by the regulator.

BY ORDER OF THE BOARD

K Dimmock Company Secretary

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Corporate Governance Statement For the year ended 31[st] July 2023

LIPA’s Board of Directors is committed to achieving the highest standards of corporate governance and in doing so complies with the Committee of University Chairs (CUC) Higher Education Code of Governance 2020. In carrying out its duties it also has regard for the best practice in The UK Corporate Governance Code 2018, insofar as it is applicable to the company. This summary describes the manner in which the company has applied the principles set out in the CUC Higher Education Code of Governance. Its purpose is to help the reader of the accounts understand how LIPA applies the principles.

The Members of the company within the meaning of the Companies Acts are the custodians of LIPA’s ethos and culture and guardians of its fundamentals. The Members’ primary responsibilities are:

To consult with LIPA’s Directors in order to agree the determination of the educational character and mission of LIPA;
To consult with LIPA’s Directors on filling any vacancy or expected vacancy in the role of Principal;
To appoint LIPA’s financial statements auditors;
To consider and, if agreed, approve changes to LIPA’s Articles of Association proposed by LIPA’s Council. Any changes are subject to the approval of the Privy Council and the Charity Commission.

LIPA’s Articles of Association empower the Members to remove any or all of the directors by written resolution signed by a majority of the Members.

The Council is LIPA’s governing body. Its members are directors of the company within the meaning of the Companies Acts and Trustees within the meaning of the Charities Act. The primary responsibilities of Council are:

To consult with LIPA’s members in order to agree the determination of the educational character and mission of LIPA and oversee LIPA’s activities having regard to such determination;
To prepare, or cause to be prepared, long-term teaching and business plans and key performance indicators, and to ensure that these meet the interests of stakeholders;
To fill any vacancy, or determine the method of filling any expected vacancy, in the post of Principal, having consulted LIPA’s members about any such vacancy or expected vacancy;
To delegate to the Principal, as chief executive, authority for the teaching, corporate, financial, estate and the management of teams LIPA;
To establish and keep under regular review the policies, procedures and limits within the management functions undertaken by, and under the authority of, the Principal;
To ensure the establishment and monitoring of systems of control and accountability, including financial and operational controls and risk assessment;

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To ensure that processes are in place to monitor and evaluate the performance and effectiveness of LIPA against the plans and approved key performance indicators, which should be, where possible and appropriate, benchmarked against other comparable institutions;
To establish processes to monitor and evaluate the performance and effectiveness of Council itself;
To conduct its business in accordance with best practice in higher education corporate governance and with the principles of public life drawn up by the Committee on Standards in Public Life;
To safeguard LIPA’s good name and values;
To appoint a clerk to Council and to ensure that, if the person appointed has managerial responsibilities in LIPA, there is an appropriate separation in the lines of accountability;
To be responsible for the appointment, grading, appraisal, assignment, suspension and dismissal of senior post holders and the determination of their pay and conditions of service;
To set a framework for the pay and conditions of service of all staff and make rules specifying procedures according to which staff may seek redress of any grievances relating to their performance;
To be LIPA’s principal financial and business authority, to ensure that proper books of account are kept, to approve the annual budget and Financial Statements, and to have overall responsibility for LIPA’s assets, property and estate;
To set rules, after consultation with the Teaching and Learning Board and representatives of the students, with respect to the conduct of students, including procedures for suspension and expulsion, and make such provision as it thinks fit for the general welfare of students;
To act as trustee for any property, legacy, endowment, bequest or gift made in support of the work and welfare of LIPA;
To be LIPA’s legal authority and, as such, to ensure that systems are in place for meeting all LIPA’s legal obligations, including those arising from contracts and other legal commitments made in LIPA’s name;
To ensure that LIPA adheres to its constitution at all times and that appropriate advice is available to enable this to happen; and
To amend LIPA’s Articles of Association, subject to the approval of LIPA’s members in a General Meeting or by written resolution, the Privy Council and the Charities Commission.

Directors serve a term of four years, and may be re-elected to serve a further term of four years. Any director retiring after serving eight years is eligible for re-appointment having regard to the individual’s particular skills, experience, commitment and longevity of service.

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Operating and Financial Review For the year ended 31[st] July 2023 continued

Nominations for new appointees are sought from existing and past directors and from within the performing arts, business and other sectors. The aim is to ensure a balance of skills within the Council. Such criteria as widening the diversity of the Council are also taken into account in seeking nominations.

All nominations are tabled at a full Council meeting for approval. On appointment new directors attend an induction programme at LIPA. This provides a detailed explanation of the legal responsibilities of the post and the workings of the Institute. This is supplemented by detailed policy documents such as the group’s current strategic plan.

Directors observe the Seven Principles of Public Life drawn up by the Committee on Standards in Public Life.

Council ensures that the Institute has in place appropriate procedures under which staff may raise matters of legitimate concern in the public interest, consistent with the requirements of the Public Interest Disclosure Act (2010).

The Council has six main committees – Audit, Equality, Diversity & Inclusion (EDI), Finance, Nominations & Governance, Remuneration, and Teaching & Learning Board. Each has a terms of reference agreed by Council.

The Finance Committee meets three times per year and, inter alia, recommends to the Council the company’s annual revenue and capital budgets and monitors performance in relation to the approved budgets.

The Audit Committee meets four times a year, with the company’s Financial Statements Auditors and Internal Auditors in attendance as appropriate. The Committee considers detailed reports together with recommendations for the improvement of the Institute’s systems of internal control and management’s responses and implementation plans. It also receives and considers reports from the OfS as they affect LIPA’s business and monitors adherence to the regulatory requirements. Whilst senior executives attend meetings of the Audit Committee as necessary, they are not members of the Committee. The Committee has the opportunity to meet with both Financial Statements Auditors and Internal Auditors on their own for independent discussions.

The Nominations and Governance Committee seeks out new directors and recommends their appointment to Council. The Committee’s remit includes monitoring governance arrangements.

The Remuneration Committee determines the remuneration of the most senior staff, including the Principal. The Remuneration Committee has agreed that it will be guided by the CUC HE Senior Staff Remuneration Code but would not formally adopt it as LIPA’s Principal is a member of the Remuneration Committee, but is not involved in discussions related to their own salary.

The Teaching and Learning Board determines the strategic curriculum development of the Institute.

The EDI Committee has delegated oversight for the development, implementation, impact and monitoring of the EDI Strategy as well as providing assurances to Council that LIPA is satisfying its legal and regulatory duties under the Equality Act 2010.

Working groups are established from time to time by the Chief Executive, for which a member of the senior management team is responsible (though not necessarily as chair).

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Operating and Financial Review For the year ended 31[st] July 2023 continued

Formal working groups are not established without the approval of the Chief Executive, although it is expected that staff will work in a cross-disciplinary manner and on a team basis, without the need for direction to do so, in order to maximise the benefits of the expertise available to achieve any given objective.

As noted above, LIPA is the sponsor of the LIPA MAT, which is a separate legal entity and these financial statements do not consolidate LIPA’s figures with those of the LIPA MAT.

The Council is ultimately responsible for the company’s system of internal control and for reviewing its effectiveness to ensure that LIPA upholds regularity and propriety in the use of public funding. The system is designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss. The system of internal control is based on an ongoing process designed to identify the principal risks to the achievement of policies, aims and objectives, to evaluate the nature and extent of those risks and to manage them efficiently, effectively and economically. This process has been in place for the year ended 31[st] July 2023 and up to the date of approval of the Financial Statements and accords with OfS guidance.

The key elements of the company’s system of internal control, which is designed to discharge the responsibilities set out above, include the following:

Effective review by directors;
Systems which define policies, set objectives and plans and then monitor financial and other performance;
Systems and procedures which include segregation of duties, authorisation and approval procedures and information systems;
An effective internal audit system;
An effective financial statements audit system, including an appropriate response to the points raised in the management letter;
Other reporting and monitoring systems such as those required by providers of other funds;
The work of the Finance and Audit Committees in monitoring the financial position and control systems;
The strategic plan and the related annual operating statements which set the framework for the annual budgets;
The annual operating and capital budgets which identify and quantify the revenue resources available and associated expenditure;
The provision of regular financial information to individuals with responsibility for elements of the budget and the monitoring of progress against budgets;
Day to day controls exercised by the financial officers of LIPA;
The Financial Regulations which, amongst other items, detail the financial procedures and rules to be followed for various financial transactions;
Policies on a range of areas such as treasury management, debt collection, fraud etc.; and
A Corporate Governance manual, which sets out various controls and policies.

The risk management strategy incorporates the following processes:

Council have approved the risk management policy;

The principal responsibility for risk management has been assigned to the senior management team, and risk management is planned into the work of the team for the year, with regular updates to the Institute’s risk profile reported and discussed at senior management team meetings;

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Operating and Financial Review For the year ended 31[st] July 2023 continued

The Internal Auditors have been instructed to ensure that their planning arrangements, methodology and approach conform to the latest professional standards reflecting the adoption of risk management; and
The Audit Committee has been charged with providing advice on the effectiveness of the establishment and implementation of risk management.

The Council ensures that there is an independent Internal Audit function, which has direct access to the Chair of Council and to the Chair of the Audit Committee. This is the same for the Financial Statements Audit function.

The Internal Auditors submit regular reports on the adequacy and effectiveness of the system of internal control, together with recommendations for improvement. Similarly, the Financial Statements Auditors have the opportunity to suggest control improvements during their audit process. All recommendations made are monitored and tracked to completion by the Audit Committee.

The directors’ review of the effectiveness of the system of internal control is informed by the work of the Internal Auditors and the executive managers within the Institute who have responsibility for the development and maintenance of the internal control framework, and by comments made by the Financial Statements Auditors in their management letter and other reports. No significant control weaknesses have arisen during the year.

ON BEHALF OF THE BOARD

G. Goodwin Chair of Council

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Trustees’ Responsibilities Statement For the year ended 31[st] July 2023

In accordance with the Institute’s Memorandum and Articles of Association , Council is responsible for the administration and management of the affairs of the Institute and is required to present audited financial statements for each financial year.

The Council (the members of which are also the directors of the company for the purposes of company law) is responsible for preparing the Operating and Financial Review including the Strategic Report and the financial statements in accordance with applicable law and regulations.

Company law requires Council to prepare financial statements for each financial year. Under that law, Council is required to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.

In addition, Council, through its Accounting Officer, is required to prepare the financial statements in accordance with the terms and conditions of the OfS’s Terms and conditions of funding for higher education institutions 2022-23 (issued July 2022) through its accountable officer. Under company law, Council must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Institute and the group and of the surplus or deficit, gains and losses, changes in reserves and cash flows of the Institute and the group for that year.

In preparing the financial statements Council is required to:

Select suitable accounting policies and then apply them consistently;
Make judgements and accounting 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 Institute will continue in business.

Council is responsible for keeping adequate accounting records that are sufficient to show and explain the Institute's transactions and disclose with reasonable accuracy at any time the financial position of the Institute and enable it to ensure that the financial statements comply with the OfS’s Terms and conditions of funding for higher education institutions 2022-23 (issued July 2022), the Statement of Recommended Practice: Accounting for Further and Higher Education (2019 edition), and any subsequent amendments, the Office for Student's Accounts Direction (issued October 2019) and the Companies Act 2006. Council is also responsible for safeguarding the assets of the Institute and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Council has taken reasonable steps to:

Ensure that funds from the OfS and other funding bodies are used only for the proper purposes for which they have been given and seek to achieve value for money in accordance with the OfS’s Terms and conditions of funding for higher education institutions 2022-23 (issued July 2022) and any other conditions which the funding body may from time to time prescribe;
Ensure that the Institute has a robust and comprehensive system of risk management, control and corporate governance, which includes the prevention and detection of corruption, fraud, bribery and irregularities;
Ensure that there is regular, reliable, timely and adequate information to monitor performance and track the use of public funds;
Plan and manage the Institute’s activities to remain sustainable and financially viable;

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Trustees’ Responsibilities Statement For the year ended 31st July 2023 continued

Ensure that it informs the OfS of any material change in its circumstances, including any significant developments that could impact on the mutual interests of the Institute and the OfS;
Ensure that there are adequate and effective arrangements for the management and quality assurance of data submitted to the Higher Education Statistics Agency, the Student Loans Company, the OfS and other funding or regulatory bodies;
Ensure an effective framework – overseen by the Institute’s academic board or equivalent – to manage the quality of learning and teaching and to maintain academic standards; and
Consider and act on the OfS’s assessment of the Institute’s risks specifically in relation to these funding purposes.

Council is responsible for the maintenance and integrity of the corporate and financial information included on the Institute's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Council confirms that:

So far as each member is aware, there is no relevant audit information of which the Institute’s auditor is unaware; and
Members have taken all the steps that they ought to have taken as members in order to make themselves aware of any relevant audit information and to establish that the Institute’s auditor is aware of that information.

Approved on behalf of Council by:

S. McNamara Director

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Independent Auditor's report to the Council of The Liverpool Institute for Performing Arts For the year ended 31[st] July 2023

Opinion

We have audited the financial statements of The Liverpool Institute for Performing Arts for the year ended 31 July 2023 which comprise Consolidated and Institute Statement of Comprehensive Income, the Consolidated and Institute Statement of Changes in Reserves, the Consolidated and Institute Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including 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) and the Statement of Recommended Practice: Accounting for Further and Higher Education (2019 Edition).

In our opinion the financial statements:

Give a true and fair view of the state of the charitable company’s affairs as at 31 July 2023 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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 charitable company 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 trustees’ 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 charitable company'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 trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information contained within the annual report. 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

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Independent Auditor's report to the Council of The Liverpool Institute for Performing Arts For the year ended 31st July 2023 continued

information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

The information given in the trustees’ report, which includes the directors’ report and 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
The strategic report and the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.

Opinion on other matters prescribed by the OfS accounts direction (issued October 2019)

In our opinion, in all material respects:

Funds from whatever source administered by the parent institute for specific purposes have been properly applied to those purposes and managed in accordance with the relevant legislation; Funds provided by the OfS, UK Research and Innovation (including Research England), the Education and Skills Funding Agency and the Department for Education have been applied in accordance with the relevant terms and conditions; and any other terms and conditions attached to them; and
The requirements of the OfS’s accounts direction (issued October 2019) have been met.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.

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

Adequate accounting records have not been kept; or
The financial statements are not in agreement with the accounting records and returns; or Certain disclosures of Council's remuneration specified by law are not made; or
We have not received all the information and explanations we require for our audit.

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Independent Auditor's report to the Council of The Liverpool Institute for Performing Arts For the year ended 31st July 2023 continued

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on pages 16 to 17, the trustees (who are also the directors of the charitable company for the purposes 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 charitable company’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.

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:

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, Charities Act 2011 and employment legislation.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the trustees and other management and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and completeness and cutoff of grant income. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases and sample testing from grant documentation.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations. A further description of our responsibilities for the audit of the financial statements is located on the Financial

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Independent Auditor's report to the Council of The Liverpool Institute for Performing Arts For the year ended 31st July 2023 continued

Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s Council, 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 charitable company’s Council 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 charitable company and the charitable company’s Council as a body, for our audit work, for this report, or for the opinions we have formed.

Vicky Szulist Senior Statutory Auditor for and on behalf of Crowe UK LLP Statutory Auditor The Lexicon Mount Street Manchester M2 5NT

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Consolidated and Institute Statement of Comprehensive Income and Expenditure For the year ended 31[st] July 2023

Year ended 31st July INCOME Notes Tuition Fees 1.1 Funding Body Grants 1.2 Project Income 1.3 Other Income 1.4 Investment Income 1.5 Total Income before Donations and Endowments Donations and Endowments 1.6 Total Income EXPENDITURE Staff Costs 2 Other Operating Expenses 3 Depreciation Interest and Other Finance Costs 4 Total Expenditure Surplus before Tax Taxation 5 Surplus and Total Comprehensive Income for the year Represented by: Unrestricted income for the year Restricted income for the year Endowment income/(expenditure) for the year	2023 Consolidated £ 10,334,804 1,648,808 471,628 606,241 42,404 13,103,885 27,135 13,131,020 8,386,508 3,443,585 989,730 - 12,819,823 311,197 - 311,197 292,452 - 18,745 311,197	2023 Institute £ 10,334,804 1,648,808 471,628 606,241 42,404 13,103,885 27,135 13,131,020 8,386,508 3,443,585 989,730 - 12,819,823 311,197 - 311,197 292,452 - 18,745 311,197	2022 Consolidated £ 10,573,344 908,579 431,882 910,814 6,999 12,831,618 25,879 12,857,497 8,173,526 3,009,629 945,990 2,601 12,131,746 725,751 - 725,751 720,449 7,500 (2,198) 725,751	2022 Institute £ 10,573,344 908,579 431,882 910,814 6,999
				12,831,618 25,879
				12,857,497
				8,173,526 3,009,629 945,989 2,601
				12,131,746
				725,751 -
				725,751
				720,449 7,500 (2,198) 725,751

All amounts relate to continuing operations.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Consolidated and Institute Statement of Changes in Reserves For the year ended 31[st] July 2023

Income and Expenditure Account Endowment Restricted Unrestricted £ £ £ 267,009 - 18,802,681 (2,198) 7,500 720,449 - (7,500) 7,500 (2,198) - 727,949 264,811 - 19,530,630 18,745 - 292,452 - - - 18,745 - 292,452 283,556 - 19,823,082 267,009 - 18,802,681 (2,198) 7,500 720,449 - (7,500) 7,500 (2,198) - 727,949	Income and Expenditure Account Endowment Restricted Unrestricted £ £ £ 267,009 - 18,802,681 (2,198) 7,500 720,449 - (7,500) 7,500 (2,198) - 727,949 264,811 - 19,530,630 18,745 - 292,452 - - - 18,745 - 292,452 283,556 - 19,823,082 267,009 - 18,802,681 (2,198) 7,500 720,449 - (7,500) 7,500 (2,198) - 727,949	Income and Expenditure Account Endowment Restricted Unrestricted £ £ £ 267,009 - 18,802,681 (2,198) 7,500 720,449 - (7,500) 7,500 (2,198) - 727,949 264,811 - 19,530,630 18,745 - 292,452 - - - 18,745 - 292,452 283,556 - 19,823,082 267,009 - 18,802,681 (2,198) 7,500 720,449 - (7,500) 7,500 (2,198) - 727,949	Total £ 19,069,690
			725,751 -
			725,751
			19,795,441
			311,197 -
			311,917
			20,106,638
			19,069,690
			725,751 -
			725,751
264,811 18,745 - 18,745 283,556	- - - - -	19,530,630 292,452 - 292,452 19,823,082	19,795,441
			311,197 -
			311,917 20,106,638

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Consolidated and Institute Balance Sheets

Registered number: 02511501

Notes Non-Current Assets Intangible Assets 6 Fixed Assets 7 Assets Held in Trust 8 Investments 9 Current Assets Stock 10 Trade and Other Receivables 11 Cash and Cash Equivalents 12 Less: Creditors Amounts Falling Due Within One Year 13 Net Current Assets Total Assets less Current Liabilities Less: Creditors Amounts Falling Due after more than One Year Total Net Assets Restricted Reserves Income and Expenditure Reserve – Endowment Reserve 14 Income and Expenditure Reserve – Restricted Reserve 15 Unrestricted Reserves Income and Expenditure Account - Unrestricted Total Funds	As at 31st July 2023 Consolidated Institute £ £ 154,698 154,698 15,987,378 15,987,378 1,273,562 1,273,562 2,377 2,477 17,418,015 17,418,115 8,573 8,573 684,688 684,688 3,892,273 3,892,273 4,585,534 4,585,534 (1,896,911) (1,897,011) 2,688,623 2,688,523 20,106,638 20,106,536 - - 20,106,638 20,106,638 283,556 283,556 - - 19,823,082 19,823,082 20,106,638 20,106,638	As at 31st July 2022 Consolidated Institute £ £ 202,014 202,014 16,020,063 16,020,063 1,291,647 1,291,647 2,377 2,477 17,516,101 17,516,201 9,287 9,287 567,649 567,649 4,061,464 4,061,464 4,638,400 4,638,400 (2,359,060) (2,359,160) 2,279,340 2,279,240 19,795,441 19,795,441 - - 19,795,441 19,795,441 264, 811 264,811 - - 19,530,630 19,530,630 19,795,441 19,795,441	As at 31st July 2022 Consolidated Institute £ £ 202,014 202,014 16,020,063 16,020,063 1,291,647 1,291,647 2,377 2,477 17,516,101 17,516,201 9,287 9,287 567,649 567,649 4,061,464 4,061,464 4,638,400 4,638,400 (2,359,060) (2,359,160) 2,279,340 2,279,240 19,795,441 19,795,441 - - 19,795,441 19,795,441 264, 811 264,811 - - 19,530,630 19,530,630 19,795,441 19,795,441
			17,516,201
			9,287 567,649 4,061,464
			4,638,400
			(2,359,160)
			2,279,240
			19,795,441 -
			19,795,441
			264,811 - 19,530,630 19,795,441

Approved by the board on 24 November 2023 and signed on its behalf by:

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Independent Auditor's report to the Council of The Liverpool Institute for Performing Arts For the year ended 31st July 2023 continued

G. Goodwin – Chair of Council

S. McNamara – Director

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Consolidated Statement of Cash Flows

For the year ended 31[st] July 2023

Cash Flow from Operating Activities Surplus / (Deficit) for the year ended 31stJuly Adjustment for Non-Cash Items Depreciation (Increase) / Decrease in Stock (Increase) / Decrease in Debtors Increase / (Decrease) in Creditors Adjustment for Investing or Financing Activities Investment Income Interest Payable Net Cash Inflow from Operating Activities Cash Flows from investing activities Investment Income Payments made to Acquire Fixed Assets Donated Assets Write back of liability for purchase of fixed assets Cash flows from financing activities Interest Paid Loan Repaid (Decrease) in Cash and Cash Equivalents in the year Cash and Cash Equivalents at beginning of the year Cash and Cash Equivalents at end of the year	2023 £ 311,197 989,730 714 (117,039) (462,149) (42,404) - 680,049 42,404 (884,644) (7,000) - (849,240) - - - (169,191)	2022 £ 725,751 945,990 (5,287) (49,220) (373,490) (6,999) 2,601
		1,239,346
		6,999 (814,260) (12,232) 603,733
		(215,760)
		(2,601) (395,682)
		(398,283)
		625,303
	4,061,464 3,892,273	3,436,161 4,061,464

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Accounting Policies For the year ended 31[st] July 2023

1. Basis of Preparation

These financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting for Further and Higher Education (2019 edition) and in accordance with applicable accounting standards. LIPA is a public benefit entity and therefore has applied the relevant public benefit requirement of the applicable accounting standards. The financial statements are prepared in accordance with the historical cost convention.

1.1 The financial statements have been prepared under FRS 102.
1.2 The financial statements are presented in sterling (£).
1.3 Going Concern - After a thorough review of the Group’s status as a going concern, the Council has agreed that the Group has sufficient resources to continue to meet its obligations as they arise over the next 12 months. The Group has a five-year financial forecast that is cash positive. Student numbers for the September 2023 intake are broadly in line with expectations and, up to the time of signing these financial statements, student withdrawal levels are not out of line with previous years. The Group has undertaken stress testing on the assumptions within its financial forecasts and believe that the risk of significant adverse performance is very low.

2. Basis of consolidation

The consolidated financial statements include the company and its subsidiary for the financial year to 31[st] July 2023. Intra-group transactions are eliminated on consolidation. In the financial year to 31[st] July 2023, the subsidiary was dormant and therefore there were no transactions within it.

3. Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions

The Institute makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. There are no estimates or assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Critical areas of judgement

There are no areas of judgement that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

4. Income Recognition

4.1 Income from the sale of goods or services is credited to the Statement of Comprehensive Income and Expenditure when the goods or services are supplied to the external customers or the terms of the contract have been satisfied.
4.2 Fee income is stated gross of any expenditure which is not a discount and credited to the Statement of Comprehensive Income and Expenditure over the period in which students are studying. Where the amount of the tuition fee is reduced by any discount, income receivable is shown net of the discount.
4.3 Bursaries and scholarships are accounted for gross as expenditure and not deducted from income.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Accounting Policies continued For the year ended 31[st] July 2023

4.4 Funds the Institute receives and disburses as paying agent on behalf of a funding body are excluded from the income and expenditure of the Institute where the Institute is exposed to minimal risk or enjoys minimal economic benefit related to the transaction.
4.5 Government grants, including funding council grants are recognised within the Statement of Income and Expenditure over the periods in which the Institute recognises the related costs for which the grant is intended to compensate. Where part of a government grant is deferred it is recognised as deferred income within creditors and allocated between creditors due within one year and due after more than one year as appropriate.

Other grants and donations from non-government sources are recognised within the Statement of Comprehensive Income and Expenditure when the Institute is entitled to the income and performance related conditions have been met.

4.6 Income received in advance of performance related conditions is deferred on the balance sheet and released to the Statement of Comprehensive Income and Expenditure in line with such conditions being met.
4.7 Other grants and donations from non-government sources are recognised within the Statement of Comprehensive Income and Expenditure when the Institute is entitled to the income and performance related conditions have been met. Income received in advance of performance related conditions being met is deferred on the Balance Sheet and released to the Statement of Comprehensive Income and Expenditure in line with such conditions being met.
4.8 Non-exchange transactions without performance related conditions are donations and endowments. Donations and endowments with donor-imposed restrictions are recognised within the Statement of Comprehensive Income and Expenditure when the Institute is entitled to the Income. Income is retained within the restricted reserve until such time that it is utilised in line with such restrictions at which point the income is released to general reserves through a reserve transfer.
4.9 Investment income and appreciation of endowments is recorded in income in the year in which it arises and as either restricted or unrestricted income according to the terms applied to the individual endowment fund.
4.10 Donations with no restrictions are recorded within the Statement of Comprehensive Income and Expenditure when the Institute is entitled to the income. Donations and endowments with restrictions are classified as restricted reserves with additional disclosure provided within the notes to the accounts. There are four main types of donations and endowments with restrictions:
Restricted donations - the donor has specified that the donation must be used for a particular objective; 2. Unrestricted permanent endowments - the donor has specified that the fund is to be permanently invested to generate an income stream for the general benefit of the Institute;
Restricted expendable endowments - the donor has specified a particular objective other than the purchase or construction of tangible fixed assets, and the Institute can convert the donated sum into income; and
Restricted permanent endowments - the donor has specified that the fund is to be permanently invested to generate an income stream to be applied to a particular objective.

5. Capital grants

Capital grants are recorded in the Statement of Comprehensive Income and Expenditure when the Institute is entitled to the income subject to any performance related conditions being met.

6. Accounting for retirement benefits

For eligible employees, the Institute contributes to a defined benefit plan, the Teachers’ Pension Scheme, a superannuation scheme that provides benefits based on final pensionable pay. For other staff the company also

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Accounting Policies continued For the year ended 31[st] July 2023

operates the LIPA Staff Pension Schemes, a range of defined contribution pension plans providing benefits additional to those from the State.

Defined Benefit Plan

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. Under the definitions set out in Section 28 of FRS102, the Teachers’ Pension Scheme is a multi-employer pension scheme. LIPA is unable to identify its share of the underlying assets and liabilities of the scheme. Accordingly, LIPA has taken advantage of the exemption in Section 28.11 of FRS102 and has accounted for contributions to the scheme as if it were a defined contribution scheme.

Defined Contribution Plan

A defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the Statement of Comprehensive Income and Expenditure in the periods during which services are rendered by employees. The assets of the LIPA’s schemes are held separately from those of the Institute in independently administered funds.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Accounting Policies continued For the year ended 31[st] July 2023

7. Employment benefits

Short term employment benefits such as salaries and compensated absences are recognised as an expense in the year in which the employees render service to the Institute. Any unused benefits are accrued and measured as the additional amount the Institute expects to pay as a result of the unused entitlement.

8. Operating leases

Costs in respect of operating leases are charged on a straight-line basis over the lease term. Any lease premiums or incentives are spread over the minimum lease term.

9. Foreign currency

Transactions in foreign currency are accounted for at the sterling equivalent (net of charges) on the date of receipt or payment. Monetary assets and liabilities are translated into sterling at year end rates. The resulting exchange differences are dealt with in the determination of income and expenditure for the financial year.

10. Intangible assets

Intangible assets are stated at cost less accumulated amortisation. Intangible assets are amortised over between three and 10 years, representing their remaining estimated economic lives. Intangible assets are subject to periodic impairment reviews as appropriate.

11. Fixed assets

Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Where parts of a fixed asset have different useful lives, they are accounted for as separate items of fixed assets.

Land and buildings

Costs incurred in relation to land and buildings after initial purchase or construction, and prior to valuation, are capitalised to the extent that they increase the expected future benefits to the Institute.

Freehold land is not depreciated as it is considered to have an indefinite useful life.

Freehold buildings are depreciated on a straight line basis over 50 years.

Leasehold land is depreciated over the life of the lease up to a maximum of 50 years.

Assets in the course of construction are included at cost. Depreciation on these assets is not charged until they are brought into use.

Furniture and equipment

Items of furniture and equipment costing less than £1,000 per individual item or groups of the same items are written off in the year of acquisition. All other equipment is capitalised.

Capitalised furniture and equipment is stated at cost and depreciated over its expected useful life as follows:

Computer equipment 3 years; and
Furniture and other equipment up to 10 years.

12. Assets held in trust

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Accounting Policies continued For the year ended 31[st] July 2023

Assets held in trust include additions to the Liverpool Institute building. These assets are depreciated over a period of up to 25 years.

Art works represent historic assets used by the institution and corporate art and are not, therefore, accounted for as a heritage asset.

13. Investments

Investments are shown at cost less any provision for impairment.

14. Stock

Stock is held at the lower of cost and net realisable value, and is measured using an average cost formula. 15. Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

16. Creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

17. Cash and cash equivalents

Cash includes cash in hand, deposits repayable on demand and overdrafts. Deposits are repayable on demand if they are in practice available within 24 hours without penalty.

Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash with insignificant risk of change in value.

18. Borrowing costs

Borrowing costs are recognised as an expense in the Statement of Comprehensive Income and Expenditure in the period in which they are incurred.

19. Provisions, contingent liabilities and contingent assets

Provisions are recognised in the financial statements when:

(a) The Institute has a present obligation (legal or constructive) as a result of a past event;
(b) It is probable that an outflow of economic benefits will be required to settle the obligation; and
(c) A reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is determined by discounting the expected future cash flows at a pre-tax rate that reflects risks specific to the liability.

A contingent liability arises from a past event that gives the Institute a possible obligation whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the Institute. Contingent liabilities also arise in circumstances where a provision would otherwise be made but either

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Accounting Policies continued

For the year ended 31[st] July 2023

it is not probable that an outflow of resources will be required or the amount of the obligation cannot be measured reliably.

A contingent asset arises where an event has taken place that gives the Institute a possible asset whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the Institute.

Contingent assets and liabilities are not recognised in the Balance Sheet but are disclosed in the notes.

20. Taxation

The Institute is an exempt charity within the meaning of Part 3 of the Charities Act 2011, and, as such, is a charity within the meaning of Section 506 (1) of the Income and Corporation Taxes Act 1988. The Institute is recognised as a charity by HM Revenue & Customs. It is therefore a charity within the meaning of Para 1 of schedule 6 to the Finance Act 2010 and accordingly, the Institute is potentially exempt from taxation in respect of income or capital gains received within categories covered by section 478-488 of the Corporation Tax Act 2010 (CTA 2010) or section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied to exclusively charitable purposes.

The Institute receives no similar exemption in respect of Value Added Tax. Irrecoverable VAT on inputs is included in the costs of such inputs. Any irrecoverable VAT allocated to fixed assets is included in their cost.

The Institute’s subsidiary is liable to Corporation Tax in the same way as any other commercial organisation.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Accounting Policies continued For the year ended 31[st] July 2023

21. Reserves

Reserves are allocated between restricted and unrestricted reserves. Restricted endowment reserves include balances which, through endowment to the Institute, are held as a permanently restricted fund as the Institute must hold the fund to perpetuity.

Other restricted reserves include balances through which the donor has designated a specific purpose and therefore the Institute is restricted in the use of these funds.

22. Financial Instruments

LIPA only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities and their measurement basis are as follows:

Financial assets – trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.

Cash at bank – is classified as a basic financial instrument and is measured at face value.

Financial liabilities – trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts

For the year ended 31[st] July 2023

1. Income 1.1 Tuition Fees Full Time UK Undergraduate Fees Full Time Overseas Undergraduate Fees Postgraduate and foundation self-funded fees Other Fees 1.2 Funding Body Grants OfS Recurrent Grants OfS Capital Grant OfS Hardship Funding Research England Kickstart 1.3 Project Income LIPA 4-19 Other Projects 1.4 Other Income Catering, Bar and Venue Hire Projects and Performances Service Level Agreement Income Sundry Income 1.5 Investment Income Interest Receivable 1.6 Donations and Endowments New Endowments Donations with Restrictions Unrestricted Donations	39 2023 Consolidated £ 6,591,625 3,225,667 516,411 1,101 10,334,804 1,337,126 100,000 12,300 193,548 5,834 1,648,808 455,142 16,486 471,628 282,117 263,126 18,380 42,618 606,241 42,404 42,404 16,000 3,107 1,028	2023 Institute £ 6,591,625 3,225,667 516,411 1,101 10,334,804 1,337,126 100,000 12,300 193,548 5,834 1,648,808 455,142 16,486 471,628 282,117 263,126 18,380 42,618 606,241 42,404 42,404 16,000 3,107 1,028	2022 Consolidated £ 6,907,722 2,783,201 871,346 11,075 10,573,344 394,196 294,500 3,716 200,000 16,167 908,579 415,619 16,263 431,882 246,610 128,460 224,883 310,861 910,814 6,999 6,999 2,000 10,500 1,147	2022 Institute £ 6,907,722 2,783,201 871,346 11,075
				10,573,344
				394,196 294,500 3,716 200,000 16,167
				908,579
				415,619 16,263
				431,882
				246,610 128,460 224,883 310,861
				910,814
				6,999
				6,999
				2,000 10,500 1,147

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts continued For the year ended 31[st] July 2023

Donated Assets	7,000 27,135	7,000 27,135	12,232 25,879	12,232 25,879

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts continued For the year ended 31[st] July 2023

1.7 Grant and Fee Income

The sources of grant and fee income included in notes 1.1 to 1.3 are as follows:

Staff Costs 2023 Consolidated Aggregate amounts for staff and directors paid in respect of: £ Wages and Salaries 6,750,564 Social Security Costs 611,798 Other Pension Costs 1,024,146 8,386,508 Emoluments of the Chief Executive: Remuneration Pension contributions 2023 Consolidated £ Grant income from the OfS 1,449,426 Grant income from other bodies 199,382 Fee income from non- qualifying courses 989,140 Fee income for taught awards 9,817,292 12,455,240	2023 Institute £ 6,750,564 611,798 1,024,146 8,386,508 2023 £ 151,500 35,875 187,375 2023 Institute £ 1,449,426 199,382 989,140 9,817,292 12,455,240	2022 Consolidated £ 6,626,845 557,578 989,103 8,173,526 2022 Consolidated £ 692,412 201,688 1,312,614 9,690,923 11,897,637			2022 Institute £ 6,626,845 557,578 989,103 8,173,526 2022 £ 138,167 30,823 168,990 2022 Institute £ 692,412 201,688 1,312,614 9,690,923 11,897,637

2. Staff Costs

No other employees received remuneration more than £100,000.

The emoluments of the Principal and CEO are set by LIPA’s Remuneration Committee and reflect the operational structure operated by LIPA, the complexity of the role, the performance of the CEO and the rates of pay of others in similar roles both locally and nationally. The Principal and CEO received a remuneration that was 4.76 times the remuneration for other substantive staff at LIPA (2022: 5.34 times).

Key Management Personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Institute. The team comprised six (2022: four) individuals led by the Chief Executive.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts continued For the year ended 31[st] July 2023

Remuneration of key management personnel, other than the Chief Executive, including pension contributions Average number of persons (including the Principal and CEO) employed during the year was: Administration Teaching and Teaching Support Catering, Bar, Conference and Venue	2023 £ 570,973 2023 number 54 92 5 151	2022 £ 386,135
		2022 number 62 90 6
		158

The number has reduced between years due to the cessation of support service arrangements with the LIPA Multi Academy Trust.

In addition to the numbers above, LIPA also employed students and graduates on a number of specific projects, such as working on Open Days and LIPA 4-19. These figures are not included in the staff numbers above.

2023
2023
Consolidated
Institute
The aggregate amounts for staff and
directors can be split into the following
categories:
£
£
Teaching
4,724,854
4,724,854
Productions
502,400
502,400
Projects
202,453
202,453
Canteen, Bar and Venue
155,075
155,075
Information Systems and Technical
Support
587,964
587,964
Marketing and Student Recruitment
797,915
797,915
Facilities
447,598
447,598
Administration
968,249
968,249
8,386,508
8,386,508
2023
No.
Number of directors accruing retirement benefits
2

2022
2022
Consolidated
Institute
£
£
4,665,767
4,665,767
492,005
492,005
190,166
190,166
154,195
154,195
545,359
545,359
760,310
760,310
483,067
483,067
882,657
882,657
8,173,526
8,173,526
2022
No.
1

The Institute’s Council Directors are the trustees for charitable law purposes. Excluding the remuneration and reimbursement of expenses of the Chief Executive and the Chief Operating Officer, one other Council Director received payment for services totalling £12,750 (2022: £0). This related to a specific initiative which involved time commitment in excess of that usually expected from a Council Director. The only other payments to Council Directors related to the reimbursement of expenses. In the year to 31[st] July 2023 the total expenses paid to Council Directors, other than the Chief Executive and the Chief Operating Officer, were:

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts continued For the year ended 31[st] July 2023

2023
£
Reimbursement of travel and accommodation
expenses to three directors (2022: three directors).
1,356
3a.
Analysis of Operating Expenditure by Activity
2023
2023
Consolidated
Institute
£
£
Teaching Related
429,227
429,227
Productions
319,818
319,818
Projects
94,826
94,826
Cafe, Bar and Venue
149,220
149,220
Information Services and Technical
Support
684,896
684,896
Marketing and Student Recruitment
487,021
487,021
Facilities
736,316
736,316
Administration
542,261
542,261
3,443,585
3,443,585
Operating Expenditure includes
2023
£
Financial Statements Auditors’ Remuneration
Audit
22,200
Other
3,510
Internal Auditors’ Remuneration
18,827
Operating Lease Rentals
9,455
3b.
Access and Participation
2023
Consolidated
£
Total access activity investment
-
Access (pre-16)
173,180
-
Access (post-16)
107,957
-
Access (adults and the community)
16,922
-
Access (other)
Financial support
117,000
Research and evaluation
21,670
£436,729

2022
£
623
2022
2022
Consolidated
Institute
£
£
429,915
429,915
292,925
292,925
148,711
148,711
122,295
122,295
601,919
601,919
419,651
419,651
678,579
678,579
315,634
315,634
3,009,629
3,009,629
2022
£
18,900
1,260
15,844
9,455
2023
Institute
£
162,232
87,017
12,396
-
129,440
10,897
401,982

£213,892 of these costs are already included in the overall staff costs figures included in the financial statements, see note 2. In addition, LIPA spent £87,524 in support for disabled students in the financial year to 31[st] July 2023.

The Access and Participation expenditure needs to be understood in conjunction with LIPA’s Access and Participation ' Plan 2020-21 to 2024-25, which is located on LIPA s website. The differences between the planned spend as per the Access and Participation Plan relate to changes in activity during the year, some linked to the COVID-19 pandemic, which meant that activities had to be altered.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts continued

For the year ended 31[st] July 2023

4. Interest Payable Interest on bank loan Other finance costs Total	2023 Consolidated £ - - -	2023 Institute £ - - -	2022 Consolidated £ 2,601 - 2,601	2022 Institute £ 2,601 - 2,601

5. Taxation

LIPA is a charitable company as stated in Accounting Policies note 20. There is no tax charge arising for the year (2022: £nil) in respect of subsidiary undertakings.

6. Intangible Assets (software) Consolidated and Institute Cost At 1stAugust 2022 Additions Disposals At 31stJuly 2023 At 1stAugust 2022 Charge for the Year Eliminated on Disposal At 31stJuly 2023 Net Book Value At 31st July 2023 At 31stJuly 2022	Total £ 465,893 6,732 -
	472,625
	263,879 54,048 -
	317,927
	154,698 202,014

Tangible Fixed Assets
7. Consolidated and Institute

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts continued For the year ended 31[st] July 2023

Cost At 1stAugust 2022 Additions Donated Assets Disposals At 31stJuly 2023 Depreciation At 1stAugust 2022 Charge for the Year Disposals At 31st July 2023 Net Book Value At 31st July 2023 At 31st July 2022 Freehold Land and Buildings	Freehold Land and Buildings £ 15,702,327 213,146 - - 15,915,473 1,720,773 295,451 - 2,016,224 13,899,249 13,981,554	Fixtures, Fittings and Equipment £ 5,779,314 558,272 7,000 (545,062) 5,799,524 3,740,805 515,652 (545,062) 3,711,395 2,088,129 2,038,509	Art Works £ 197,092 - - - 197,092 197,092 - - 197,092 - -	Total £ 21,678,733 771,418 7,000 (545,062)
				21,912,089
				5,658,670 811,103 (545,062)
				5,924,711
				15,987,378
				16,020,063

The freehold buildings relates to the property at 68 Hope Street, Liverpool.

Freehold land includes land amounting to £1,000,000 which is not depreciated.

8. Assets held in Trust Consolidated and Institute Cost At 1stAugust 2022 Additions At 31stJuly 2023 Depreciation At 1stAugust 2022 Charge for the Year At 31stJuly 2023 Net Book Value At 31st July 2023 At 31stJuly 2022	Total £ 2,050,772 106,494
	2,157,266
	759,125 124,579
	883,704
	1,273,562 1,291,647

The assets held in trust represent the cost of capital works on the Liverpool Institute building .

Interest in Liverpool Institute building

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts continued For the year ended 31[st] July 2023

LIPA has no ownership rights to the Liverpool Institute building. It occupies the building in its role as sole corporate trustee of The Liverpool Institute Charity. LIPA was appointed corporate trustee of The Liverpool Institute Charity on 8[th] October 1993. The Liverpool Institute Charity has no assets, other than the Liverpool Institute building, and no liabilities. It generates no income and incurs no expenditure. LIPA may continue in its role as corporate trustee of The Liverpool Institute Charity, and thereby occupy the Liverpool Institute building, provided it continues to use the building for educational purposes.

In the event that LIPA no longer operates the trusteeship of The Liverpool Institute Charity, and thereby loses its rights to occupy the Liverpool Institute building, trusteeship would revert to the former trustee, Liverpool City Council; failing acceptance by them of the trusteeship the Charity Commission would seek an alternative trustee.

As LIPA cannot sell the Liverpool Institute building, which was redeveloped specifically for LIPA’s programmes and may only be used for educational purposes, the directors do not consider that any market value can be attributed to it and that a valuation would not be in the best interests of the Institute.

9.

Non-Current Investments Consolidated At 1stAugust 2022 Additions Disposals Impairment At 31st July 2023 Institute At 1stAugust 2022 Additions Disposals Impairment At 31st July 2023	Subsidiary Companies £ - - - - - £ 100 - - - 100	Chattels and Memorabilia £ 2,377 - - - 2,377 £ 2,377 - - - 2,377	Total £ 2,377 - - - 2,377 £ 2,477 - - - 2,477

Please refer to note 24 for additional details relating to the investment in the subsidiary company.

10.

Stock	2023	2022
Consolidated and Institute	£	£
Canteen and bar stocks	8,573	9,287

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts continued For the year ended 31[st] July 2023

11. Trade and Other Receivables Amounts due within one year Tuition and Other Fees Other Debtors Amount owed by subsidiary undertakings Amounts owed by related undertakings Prepayments and Accrued Income	At 31st July Consolidated £ 16,506 288,366 - 5,098 374,718 684,688	2023 Institute £ 16,506 288,366 - 5,098 374,718 684,688	At 31st July 2022 Consolidated £ Institute £ 41,099 41,099 184,220 184,220 - - 882 882 341,448 341,448 567,649 567,649

12. Cash and Cash Equivalents Cash and Cash Equivalents 13. Creditors: Amounts falling due within one year Trade Creditors Taxation and Social Security Accruals Other Creditors and Deferred Income	At 31st July 2023 Consolidated Institute £ £ 3,892,273 3,892,273 At 31st July 2023 Consolidated Institute £ £ 226,029 226,029 165,155 165,155 307,234 307,234 1,198,493 1,198,593 1,896,911 1,897,011		At 31st July 2022 Consolidated Institute £ £ 4,061,464 4,061,464 At 31st July 2022 Consolidated Institute £ £ 470,098 470,098 204,410 204,410 287,126 287,126 1,397,426 1,397,526 2,359,060 2,359,160

Deferred Income

Included in other creditors and deferred income are the following items of income which have been deferred until specific performance related conditions have been met.

Donations Grants	At 31st July 2023 Consolidated Institute £ £ - - - - - -	At 31st July 2022 Consolidated Institute £ £ - - 3,072 3,072 3,072 3,072

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts continued For the year ended 31[st] July 2023

14. Endowments Balances at 1stAugust 2022 Capital Accumulated Income New Endowments Investment Income Expenditure At 31st July 2023 Represented by: Capital Accumulated Income Analysis by type of purpose Bursary and Prize Funds Culture Graduate Business Support Analysis by Asset Cash	Restricted Permanent Endowments £ - - - - - - - - - - - - - - -	Unrestricted Permanent Endowments £ - - - - - - - - - - - - - - -	Expendable Endowments £ 232,460 32,351 264,811 16,000 9,545 (6,800) 283,556 243,842 39,714 283,556 76,563 188,332 18,661 283,556 283,556	2023 Total £ 232,460 32,351 264,811 16,000 9,545 (6,800) 283,556 243,842 39,714 283,556 76,563 188,332 18,661 283,556 283,556	2022 Total £ 235,372 31,637
					267,009 2,000 1,022 (5,220)
					264,811
					232,460 32,351
					264,811
					60,918 181,995 21,898
					264,811
					264,811

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts continued

For the year ended 31[st] July 2023

15. Restricted Reserves

Reserves with restrictions are as follows:

Balances at 1st August 2022 New Grants New Donations Investment Income Capital Grant Utilised Expenditure At 31st July 2023 Analysis of Other Restricted Funds and Donations by type of purpose Buildings Other	Capital Grants £ - - - - - -	Other Restricted Funds and Donations £ - 3,107 - - (3,107) -	2023 Total £ - 3,107 - - (3,107) - 2023 Total £ - - -	2022 Total £ - - 10,500 - - (10,500)
				-
				2022 Total £ - -
				-

Other restricted funds include donations and restricted expendable endowments.

16. Reconciliation of Cash Flow to Statement of Financial Position

Consolidated Cash at Bank and on Deposit Other 17. Consolidated reconciliation of net credit Net credit at 1 August 2022 Movement in cash and cash equivalents Other non-cash changes Net credit at 31 July 2023 Change in net credit Analysis of net credit: Cash and cash equivalents Borrowings: amounts falling due within one Secured loans	At 1st August 2022 £ 4,061,464 - 4,061,464 year	Cash Flows At 31st July 2023 £ £ (169,191) 3,892,273 (169,191) 3,892,273 31 July 2023 £ 4,061,464 (169,191) - 3,892,273 (169,191) 31 July 2023 £ 31 July 2022 £ 3,892,273 4,061,464 - -

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts continued

For the year ended 31[st] July 2023

Borrowings: amounts falling after more than one year Secured loans Net credit 18. Capital and Other Commitments Consolidated and Institute at 31st July Capital works authorised but not contracted Commitments contracted for refurbishment of estates Other capital additions Capital commitments are funded from cash reserves. 19. Contingent Assets and Liabilities Consolidated and Institute at 31st July Guarantees	- 3,892,273 2023 £ 420,771 100,007 34,619 555,397 2023 £ -		-
			4,061,464
			2022 £ - 330,066 88,997
			419,063
			2022 £ -

20. Lease Obligations Consolidated and Institute

Total Rentals payable under Operating Leases

Payable during the year Future minimum Lease payments due Not later than one year Later than 1 year and not later than 5 years	Plant and Machinery £ 9,455 - - -	31st July 2023 Other Leases £ - - - -	Total £ 9,455 - - -	31st July 2022 Total £ 9,455
				- - 9,455

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts continued For the year ended 31[st] July 2023

21. Financial assets and liabilities

Financial assets measured at amortised cost Financial liabilities measured at amortised cost	31st July 2023 Consolidated Institute £ £ 3,517,555 3,517,555 1,092,981 1,092,981	31st July 2022 Consolidated Institute £ £ 4,287,665 4,287,665 1,418,807 1,418,807

22. Events after the Reporting Period

There were no significant events after the after the reporting period that impact the results for the year or the balance sheet at 31[st] July 2023.

23. Subsidiary Undertaking

During the year ended 31[st] July 2023, LIPA had one wholly owned subsidiary, LIPA Enterprises Limited (which is registered at the same address as LIPA).

LIPA Enterprises Limited is registered in England and Wales and is dormant, resulting in the cost of investment of £100 having been written off. The principal activity of the company was the provision of training courses.

24. Connected Charitable Institutions

24.1 The LIPA Multi Academy Trust (MAT), previously LIPA Sixth Form College

Salaries and third-party costs paid by LIPA on behalf of The LIPA MAT have been recharged directly to it without uplift. In the year to 31st July 2023, LIPA charged The LIPA MAT £18,380 for support services (2022: £153,966). The significant reduction is due to the cessation of Service Level Agreements with the LIPA MAT as of 31 August 2022. In addition there were other intercompany sales of £5,187 in relation to room hire.

At 31[st] July 2023 The LIPA Multi Academy Trust owed LIPA £5,098 (2022: £882).

24.2 The LIPA Primary School

The activities of The LIPA Primary School were transferred to The LIPA Multi Academy Trust with effect from 1[st] May 2022. Salaries and third-party costs paid by LIPA on behalf of The LIPA Primary School were recharged directly to it without uplift. In the year to 31[st] July 2023, LIPA recharged no costs to The LIPA Primary School for support services (2022: £70,917). There were no other intercompany sales.

At 31[st] July 2023 The LIPA Primary School owed LIPA £nil (2022: £nil).

25. Related Party Transactions

During the year, LIPA undertook the following transactions with related parties defined by Financial Reporting Standard 102.

25.1 The Liverpool Institute Charity

LIPA is the sole corporate trustee of The Liverpool Institute Charity. LIPA occupies the Liverpool Institute Building, held in The Liverpool Institute Charity, under terms at £nil rent.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts continued For the year ended 31[st] July 2023

25.2 LIPA Enterprises Limited

Transactions with the subsidiary, LIPA Enterprises Limited, have not been disclosed under the exemption allowed in FRS102 Section 33.

25.3 LIPA Members

Mr J Dimmock, a Member of the company received no remuneration in the year (2022: £2,777). K. Dimmock, a close family member of J. Dimmock is also employed by the company. R Grey, another Member of the company, is a consultant with Swan Turton LLP, who received no payments in the year (2022: £6,837).

No travel or other expenses were reimbursed to Members in the year (2022: £nil).

26. Pension Commitments

26.1 Defined Benefit Scheme

As stated in Accounting Policies note 6, for eligible employees the company contributes to the Teachers’ Pension Scheme (TPS). The scheme is sector wide and the Department Education has provided the information below in order to meet the requirements of Financial Reporting Standard 102 Section 28.

The Teachers' Pension Scheme (TPS or scheme) is a statutory, unfunded, defined benefit occupational scheme, governed by the Teachers' Pensions Regulations 2010 (as amended), and the Teachers’ Pension Scheme Regulations 2014 (as amended). These regulations apply to teachers in schools and other educational establishments, including academies, in England and Wales that are maintained by local authorities. In addition, teachers in many independent and voluntary-aided schools and teachers and lecturers in some establishments of further and higher education may be eligible for membership. Membership is automatic for full-time teachers and lecturers and, from 1 January 2007, automatic too for teachers and lecturers in part-time employment following appointment or a change of contract. Teachers and lecturers are able to opt out of the TPS.

The Teachers' Pension Budgeting and Valuation Account

Although members may be employed by various bodies, their retirement and other pension benefits are set out in regulations made under the Superannuation Act (1972) and Public Service Pensions Act (2013) and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and members contribute on a ’pay as you go ‘basis – contributions from members, along with those made by employers, are credited to the Exchequer under arrangements governed by the above Acts.

The Teachers' Pensions Regulations 2010 require an annual account, the Teachers' Pension Budgeting and Valuation Account, to be kept of receipts and expenditure (including the cost of pension increases). From 1 April 2001, the Account has been credited with a real rate of return, which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that real rate of return.

Valuation of the Teachers' Pension Scheme

As a result of the latest scheme valuation employer contributions were increased in September 2019 from a rate of 16.4% to 23.6%. Employers also pay a charge equivalent to 0.08% of pensionable salary costs to cover administration expenses.

The next valuation is expected to take effect in 2024.

’ A copy of the latest valuation report can be found by following this link to the Teachers Pension Scheme website.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Notes to the Accounts continued

For the year ended 31[st] July 2023

The pension costs paid to TPS in the year amounted to £689,617 (2022: £657,177) and the total amount outstanding as at 31[st] July 2023 was £80,067 (2022: £71,385).

26.2 Defined Contribution Scheme

The employer’s contributions payable in respect of defined contribution scheme arrangements were £334,529 (2022: £331,926). The amount outstanding at 31[st] July 2023 was £nil (2022: £nil).

The member and the company make contributions to the LIPA Staff Pension Schemes. Currently contribution rates for the main scheme are 7.4% to 11.7% of pensionable salary by the member and 16.48% of pensionable salary by the employer. Employees may choose to join a default scheme introduced as part of the Government’s auto enrolment programme. Under this scheme both the member and the company make contributions of 3% of pensionable salary. Employees may elect to join neither the main nor the default scheme.

27. Legal Form

LIPA is a company limited by guarantee in the United Kingdom, with registration number 02511501. The company is a registered charity, number 1001565. The registered office is: Mount Street, Liverpool, L1 9HF.

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

ANNUAL REPORT

Annual Report

CONTENTS

Status

Registered Office

Advisors

Bankers

Solicitors

Financial Statements Auditors

Internal Auditors

1. Constitution and Objectives

2. Organisation and Decision-Making Structure

3. Background

Operating and Financial Review

For the year ended 31[st] July 2023 continued

4. Strategic Report

5. Review of Activities and Achievement

(a) Higher Education

Undergraduate and Postgraduate Programmes

Foundation Certificate

(b) LIPA 4-19 Part Time Academy

6. Results for the Year

Operating and Financial Review

7. Capital Expenditure

8. Cash Flows

9. Subsidiary Undertakings

10. Unrestricted Reserves

11. Endowment Reserves

12. Treasury Policies and Objectives

13. Pensions

Operating and Financial Review For the year ended 31[st] July 2023 continued

14. Policy on the Payment of Creditors

15. Accessibility and Widening Participation

Operating and Financial Review For the year ended 31[st] July 2023 continued

Operating and Financial Review For the year ended 31[st] July 2023 continued

16. Public Benefit

Operating and Financial Review For the year ended 31[st] July 2023 continued

17. Strategy and Risk

18. OfS Funding

19. Estates

Operating and Financial Review For the year ended 31[st] July 2023 continued

20. Immediate Prospects

21. The LIPA Multi Academy Trust

Operating and Financial Review For the year ended 31[st] July 2023 continued

22. Stakeholder Relationships

23. Equal opportunities and employment of disabled employees

24. Fundraising

25. Going Concern

26. Financial Statements Auditors

BY ORDER OF THE BOARD

Corporate Governance Statement For the year ended 31[st] July 2023

Operating and Financial Review For the year ended 31[st] July 2023 continued

Operating and Financial Review For the year ended 31[st] July 2023 continued

Operating and Financial Review For the year ended 31[st] July 2023 continued

Operating and Financial Review For the year ended 31[st] July 2023 continued

Trustees’ Responsibilities Statement For the year ended 31[st] July 2023

Trustees’ Responsibilities Statement For the year ended 31st July 2023 continued

Independent Auditor's report to the Council of The Liverpool Institute for Performing Arts For the year ended 31[st] July 2023

Opinion

Basis for opinion

Conclusions relating to going concern

Other information

Independent Auditor's report to the Council of The Liverpool Institute for Performing Arts For the year ended 31st July 2023 continued

Opinions on other matters prescribed by the Companies Act 2006

Opinion on other matters prescribed by the OfS accounts direction (issued October 2019)

Matters on which we are required to report by exception

Independent Auditor's report to the Council of The Liverpool Institute for Performing Arts For the year ended 31st July 2023 continued

Responsibilities of trustees

Auditor’s responsibilities for the audit of the financial statements

Independent Auditor's report to the Council of The Liverpool Institute for Performing Arts For the year ended 31st July 2023 continued

Use of our report

THE LIVERPOOL INSTITUTE FOR PERFORMING ARTS

Consolidated and Institute Statement of Comprehensive Income and Expenditure For the year ended 31[st] July 2023

Consolidated and Institute Statement of Changes in Reserves For the year ended 31[st] July 2023

Consolidated and Institute Balance Sheets

Registered number: 02511501

Consolidated Statement of Cash Flows

For the year ended 31[st] July 2023