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2023-03-31-accounts

Zinc Arts

Trustees Report for the year ended 31 March 2023

Registered Charity number: 1035444

Company number: 02866315

1

INTRODUCTION

The Trustees (who are also Directors of the charity for the purposes of the Companies Act) have pleasure in submitting their annual report together with the financial statements of Zinc Arts (the company) for the year ended 31[st] March 2023.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Directors/ Trustees

The Trustees, who are also Directors of the company who acted throughout the year, are Dr Daryn Hufton-Rees and Victoria Kaye. Jamie Macleod was appointed in November 2023.

STRUCTURE, GOVERNANCE AND MANAGEMENT

a. CONSTITUTION

Zinc (Company number 02866315) was incorporated on 27[th] October 1993 and is a charitable company limited by the guarantees of the members to a maximum of £10 each. The company is a registered charity (number 1035444). The company gained charitable status on 22[nd] March 1994 It changed its name from Theatre Resource to Zinc Arts with The Charity Commission and Companies House on 22[nd] November 2012.

b. SPECIFIC INSTRUCTIONS

There are no specific instructions relating to the operation of the charity, nor are there any specific investment powers.

c. GOVERNANCE

In 2022-2023 the Charity comprised a membership of 2 individuals committed to supporting the aspirations of the organisation. The constitution stipulates that Members are automatically elected to a Board of Directors/Trustees to run the affairs of the organisation. When an individual resigns their position on the Board of Directors/Trustees their membership of the organisation ceases.

The Trustees are responsible for formulating the strategy and policies for Zinc and may meet at such times and regulate its meetings as it sees fit. In 2022 - 2023, the Trustees met quarterly, to steer the organisation through the tough financial climate and support the CEO and the organization.

d. RECRUITMENT, APPOINTMENT AND ELECTION OF TRUSTEES

The Board identifies and regularly reviews the skills of existing Board Members and any needs of the Board which are not being met by the current membership.

Recruitment is through:

Recruitment is not limited to within the arts, education or social care field, but reflects the varied needs of the organisation. Whilst specific skills may be sought (for example in relation to regular skill

1

audits undertaken by the Board) enthusiasm and vision may also be considered equally valuable.

The Board has established procedures for recruiting and appointing Board members, including initial identification of potential candidates, informal visits or discussions, formal application and interview, consideration by the full board and, finally, election by a majority of votes.

In 2023-24 Zinc will continue to look to appoint new members to the board to increase the support to the organisation. This process started in 2022-23 and is progressing positively. A skills audit will be undertaken to identify areas for improvement and then Zinc will look to appoint members who can fill these gaps.

e POLICIES AND PROCEDURES FOR THE INDUCTION AND TRAINING OF TRUSTEES

Zinc is committed to a full induction and ongoing training of Trustees. A comprehensive induction pack and standing orders are in place and are regularly updated to ensure compliance with company and charity law.

f RISK MANAGEMENT

The Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.

OBJECTIVES AND ACTIVITIES

a. COMPANY OBJECTIVES

The objective of Zinc, as stated in the Memorandum and Articles of Association, is to 'advance education for the public benefit through the promotion of the arts, particularly but not exclusively for disabled and disadvantaged people'.

Whilst this is still relevant, following on from a post pandemic review, we feel Zinc offers so much more than this. Therefore, we are actively looking to update our constitution to encompass all the wonderful work we do.

We treat disabled people as a core part of the community, and feel it is inappropriate to have disability as a separate strand, as we offer services for the community as a whole without distinction.

b. ACHIEVEMENT OF OBJECTIVES

Zinc works to promote the creativity, culture and heritage of disabled people and sociallyexcluded groups for the benefit of all. In our work, we seek to:

2

c. OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT

In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission's guidance on public benefit, including the guidance on public benefit and fee charging. Whilst Zinc undertakes work funded by grants and commissions from funding agencies, fees are charged to individual beneficiaries to help cover operating costs. Where fees are charged, in setting the level of fees, charges and concessions, the trustees always consider accessibility of activities for those on low incomes and living on benefits.

The Charity's public benefit during the year is demonstrated by the activities undertaken in 20222023

d. ACTIVITIES UNDERTAKEN IN 2022-2023

Zinc's activities returned to pre pandemic levels during the 2022-23 financial year.

Zinc continued its current activities with core participatory groups, including D/deaf people, participants with mental health needs, physical and/or sensory impairments, multiple and profound learning difficulties and/or with experience of other forms of social exclusion.

In previous years Zinc suffered difficult financial outcomes, and as a result in 2022-23 continued to focus on those activities which would contribute to the delivery of its charitable objectives whilst at the same time generating funds to ensure the ongoing repair of the financial position.

Activities delivered include the following:

Tolpuddle House Programme

2022/23 saw the continued support to the service users of Tolpuddle House, the housing and associated employment and training programme for vulnerable adults living on site in accommodation managed by L&Q. Nine adults received supported living and associated education, training and volunteering opportunities.

Tenants gain skills and learn to live independently with the aim of being offered a flat of their own. They attend the Aspire Learning programme at Zinc to gain skills they will need to become more independent, such as Employability.

Health Wellbeing and Focus Centre

Working in partnership with Epping Forest District Council we offer accommodation to people who would otherwise be homeless.

These people are housed in our facilities on licence and we offer support, training and use of our services until permanent accommodation becomes available and they move into their new home.

Aspire Learning

Formally named AQA and The Biz but rebranded In January 2020, the courses delivered are Artbox, Stepping Stones, Perform, Reflect and Elevate.

The courses are designed for adults 16+ as an alternative to college for people who would struggle at a mainstream college

Participants gain an accreditation at the end of the course.

3

Respite Weekend

Groups of 6 - 8 participants usually with high dependency needs, who come to Zinc to have fun and interact with people of their own age, giving parents and regular carers a break whilst they are on respite.

In 2022-23 these have become monthly events and are hugely popular,

Ongar Youth Hub

Zinc runs the local Youth Hub in Ongar which is run in partnership with the Youth Service and Essex County Council. A range of activities are on offer including cooking, games, music, dance and the provision of a safe space for children to hang out.

e. OTHER ACTIVITES AT ZINC'S ARTS CENTRE BASE

Zinc uses its facilities to make possible a wide array of activities which are of direct benefit to the local community:

f. SIGNIFICANT CHANGES IN ACTIVITIES

There were no significant changes to activities of the charity during the year.

FINANCIAL REVIEW

a. RESULT FOR THE YEAR

Zinc incurs a substantial depreciation charge relating to improvements made to the centre in the years leading up to 2012. This amounted to £155,972 in 2022-23 (152,087 in 2021-22.) These are not cash costs, and the trustees consider it to be appropriate to exclude them from the review of the result for the year.

Excluding this depreciation charge, the result for the year is a deficit of £14,219.

b. GOING CONCERN

As explained in note 1(c) to the accounts, Zinc has the support of its principal loan funders.

c. RESERVES POLICY

The focus of the directors is currently on generating a pre-depreciation operating surplus, to repair the finances of the charity following the difficult years prior to 2017-2018. Accordingly, the organisation does not have a formal reserves policy in place, as an absolute

4

level of reserves is not currently the main priority. The establishment of a formal policy will be revisited when it is appropriate to do so.

PLANS FOR THE FUTURE

Zinc's priorities for the next 12 months are as follows:

5

TRUSTEES' RESPONSIBILITIES STATEMENT

The Trustees (who are also directors of Zinc Arts for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

signed on their behalf by

DK Hufton-Rees Trustee 23[rd] November 2023

6

Zinc Arts

Financial Statements for the year ended 31 March 2023

Registered Charity number: 1035444

Company number: 02866315

Zinc Arts

Financial statements for the year ended 31 March 2023

CONTENTS

Pages
Directors/Trustees* 2
Independent examiner’s report 3
Statement of financial activities 4
Balance sheet 5
Notes to the financial statements 6-15

Directors/Trustees*

Dr Daryn Kenneth Hufton-Rees Victoria Kaye

* Trustees of the Charity are also known as Directors of the Company.

The accompanying Trustees' Report includes the information required for the Directors' Report required by company law.

Page 2

Zinc Arts

Independent Examiner's Report - 31 March 2023

Report to the Trustees of Zinc Arts on the financial statements of the Charitable Company ("the Company") for the year ended 31 March 2023 set out on pages 4 to 15.

Responsibilities and basis of report

I report to the Charity's Trustees on my examination of the accounts of the Company for the year ended 31 March 2023.

As the Trustees of the Company (and also the Directors of the Company for the purposes of company law), you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ("the 2006 Act").

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 ("the 2011 Act"). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

The company’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of The Institute of Chartered Accountants in England and Wales.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in, any material respect:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Signed: DA EATON 23 November 2023

David A Eaton FCA Eaton & Co Chartered Accountants and Consultants

The Cedars, School Lane, Great Barton, Bury St Edmunds, Suffolk IP31 2RQ

Page 3

Zinc Arts

Statement of Financial Activities (including income and expenditure account) For the year ended 31 March 2023

Note
Income:
Donations, legacies and grants
2
Income from charitable activities
3
Other incoming resources
Total income
Expenditure on:
Charitable activities
4
Total expenditure
Net income (expenditure) before
depreciation and revaluations
Depreciation
Gains and losses on revaluations of
investment assets
Net (expenditure) and net movement in
funds for the year
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
Restricted
Funds
Total
Funds
Unrestricted
funds
Restricted
funds
Total
Funds
£
£
£
£
34,357
-
34,357
55,440
-
55,440
268,946
-
268,946
196,522
-
196,522
40,758
-
40,758
18,725
-
18,725
344,061
-
344,061
270,687
-
270,687
358,280
-
358,280
296,443
-
296,443
358,280
-
358,280
296,443
-
296,443
(14,219)
-
(14,219)
(25,756)
-
(25,756)
(155,972)
(155,972)
(152,087)
(152,087)
-
-
-
-
-
-
(170,191)
-
(170,191)
(177,843)
-
(177,843)
(603,135)
-
(603,135)
(425,292)
-
(425,292)
(773,326)
-
(773,326)
(603,135)
-
(603,135)
2023
2022

All of the above results are derived from continuing activities. There were no other recognised gains or losses during the year.

Page 4

Zinc Arts

Balance Sheet

For the year ended 31 March 2023

Note
Fixed assets:
Tangible assets
9
Current assets:
Debtors
10
Investments
11
Cash at bank and in hand
Liabilities:
Creditors: amounts falling due within one year
12
Net current liabilities
Total assets less current liabilities
Creditors: amounts falling after more than one year
13
Total net assets
The funds of the Charity:
Unrestricted funds
Total Charity funds		 £
£
2,522,400
2,522,400
18,889
1,157
9,207
29,253
239,609
(210,355)
2,312,045
(3,085,371)
(773,326)
(773,326)
(773,326)
2023		 2022 2022
£
£
2,678,372
2,678,372
21,345
1,157
1,252
23,754
187,292
(163,538)
2,514,834
(3,117,969)
(603,135)
(603,135)
(603,135)
2,514,834
(3,117,969)
(603,135)
(603,135)
(603,135)

The Directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.

The Members have not required the company to obtain an audit in accordance with section 476 of the Act.

The Directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees on 23 November 2023.

Signed: DK HUFTON-REES 23 November 2023

Dr Daryn K Hufton-Rees Chair of Trustees Zinc Arts Company Registered No: 02866315

Page 5

Zinc Arts Notes to the Financial Statements For the year ended 31 March 2023

1 Accounting Policies

Zinc Arts is a charitable company ('Charity') limited by guarantee and is incorporated in England and Wales. The registered office address and principal place of business is Great Stony, High Street, Chipping Ongar, Essex, CM5 0AD.

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the Trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. 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. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

The functional currency is the British Pound.

b) Public benefit entity

The Charity meets the definition of a public benefit entity under FRS 102.

c) Going concern

The financial statements have been prepared on the going concern basis, although the Charity has net current liabilities, excluding loans, of £63,746 (2022 - £123,613) and long-term loans of £3,085,371 (2021 - £3,117,969).

The going concern basis assumes that the Charity will continue in operational existence for the foreseeable future and reflects the Trustees' belief that the Charity will continue to generate sufficient cash flows to meet its liabilities as they fall due.

The financial viability of the Charity remains dependent on maintaining the current level of income, and on the forbearance of the lenders referred to in note 13 to the accounts. Whilst there are no formal agreements to this effect, the Trustees have a reasonable expectation that this forbearance will continue for a period of at least twelve months from the date of signing these accounts.

If for any reason the current level of income or financing was not available, the Charity would need to seek alternative sources of income to ensure its continuation as a going concern.

The financial statements do not include the adjustments which would result if the Charity was unable to continue as a going concern.

d) Income

Income is recognised when the Charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Donations, grants and funds received for specific projects and subject to specific wishes of the donors are credited to the relevant restricted fund. When donors specify that donations and grants given to the Charity must be used in future accounting periods, the income is deferred until those periods.

Building income is included in the period to which it relates and includes the renting of accommodation provided, hiring of facilities and other services available within the building to the public and project .

Page 6

Zinc Arts

Notes to the Financial Statements For the year ended 31 March 2023

e) Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the Charity has received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised.

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the Charity which is the amount the Charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

f) Fund accounting

Unrestricted funds are donations and other incoming resources received for charitable purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors. The aim and use of each restricted fund is set out in the notes to the financial statements.

g) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Charitable activity costs are those incurred directly in support of the objects of the charity.

In the view of the Trustees the charity has only one activity, as outlined in the Trustees' report.

h) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity, for Governance costs, one of the support costs, are the costs associated with the governance arrangements of the Charity. These costs relate to constitutional and statutory requirements and include any costs associated with the strategic management of the Charity’s activities as well as professional fees.

i) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

j) Realised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the SOFA.

k) Tangible fixed assets

Assets over £500 are capitalised at cost. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life.

Leasehold improvements 27.5 years (amended from 135 years at 31 March 2019) Fixtures, Fittings, Equipment 10% straight line

The depreciation charge is shown separately on the SOFA in view of its magnitude and the fact that it is a non-cash cost resulting from historical expenditure. This presentation has been adopted to give a fair representation of the charity's current financial performance.

l) Investments

Investments are stated at market value at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluations throughout the year.

Page 7

Zinc Arts Notes to the Financial Statements For the year ended 31 March 2023

m) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. They are held to meet short term cash commitments as they fall due.

n) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

o) Leasing and Hire Purchase

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Charity. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of Financial Activities in the appropriate year.

Rentals under operating leases are charged to the Statement of Financial Activities in the period to which they relate.

p) Financial Instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

q) Critical accounting estimates and judgements

In the application of the Charity's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

In the year ended 31 March 2019 the Trustees reviewed the depreciation policy relating to the leasehold improvements and concluded that a life of 27.5 years was more appropriate than the 135 years being employed. Appropriate adjustments were made in the 2018/19 accounts and subsequent depreciation charges reflect the revised estimate.

The Trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

Page 8

Zinc Arts Notes to the Financial Statements For the year ended 31 March 2023

2 Donations, legacies and grants

2
Donations, legacies and grants
Donations
Grants:
Covid related grants
Other grants
3
Contracts and Fees
Income from charitable activities		 Unrestricted
funds
Restricted
funds
Total
Funds
£
£
£
7,142
-
7,142
-
-
-
27,215
-
27,215
34,357
-
34,357
Unrestricted
funds
Restricted
funds
Total
Funds
£
£
£
268,946
-
268,946
268,946
-
268,946
2023
2023		 2022
Unrestricted
funds
Restricted
funds
Total
Funds
£
£
£
11,286
-
11,286
44,154
-
44,154
55,440
-
55,440
2022
Unrestricted
funds
Restricted
funds
Total
Funds
£
£
£
196,522
-
196,522
196,522
-
196,522

Page 9

Zinc Arts Notes to the Financial Statements For the year ended 31 March 2023

4. Analysis of expenditure on charitable activities

Staffing
Other direct costs
Support costs (note 5)		 Unrestricted
funds
Restricted
funds
Total
Funds
£
£
£
167,220
-
167,220
6,986
6,986
174,206
-
174,206
184,074
-
184,074
358,280
-
358,280
2023		 2022
Unrestricted
funds
Restricted
funds
Total
Funds
£
£
£
117,228
-
117,228
3,682
-
3,682
120,910
-
120,911
175,533
-
175,533
296,443
-
296,443

During the year the Charity had one class of activity, to promote the creativity, culture and heritage of disabled people and sociallyexcluded groups for the benefit of all.

5. Analysis of support costs

Governance (see below for analysis)
Interest
Other
Total
Governance costs are made up of:
Independent examination fees
Other legal and professional fees		 Unrestricted
funds
Restricted
funds
Total
Funds
£
£
£
4,726
-
4,726
28,710
-
28,710
150,637
-
150,637
184,074
-
184,074
3,500
-
3,500
1,226
-
1,226
4,726
-
4,726
2023		 2022
Unrestricted
funds
Restricted
funds
Total
Funds
£
£
£
9,966
-
9,966
26,403
-
26,403
139,164
-
139,164
175,533
175,533
9,000
-
9,000
966
-
966
9,966
-
9,966

Page 10

Zinc Arts Notes to the Financial Statements For the year ended 31 March 2023

6
Net income for the period
This is stated after charging:
Depreciation - annual charge
Independent Examination fee
7
Staff costs were as follows:
Wages and salaries
Social security costs
Pension costs
Analysis of staff costs, trustee remuneration and expenses, and the cost of key		 2023
2022
£
£
155,972
152,087
3,500
3,500
£
£
156,494
110,412
7,841
4,664
2,885
2,154
167,220
117,228

The average number of employees during the year was 8 (2022 - 6)

No employee received remuneration amounting to more than £60,000 in either year.

The cost of senior management personnel was £Nil (2022 - £Nil)

The Charity's Trustees were not paid and did not receive any benefits from employment with the Charity in the year (2022 - £Nil). During the year the Trustees received reimbursement of expenses of £21,600 (2022 - £22,061). No Charity Trustee received payment for professional or other services supplied to the Charity (2021 - £Nil).

8 Taxation

The Charity is exempt from Corporation Tax as all its income is charitable and is applied for charitable purposes.

Page 11

Zinc Arts

Notes to the Financial Statements

For the year ended 31 March 2023

9 Tangible Fixed Assets

Fixtures and fittings
£
Cost
At the start of the year
-
Additions during the year
-
At the end of the year
Depreciation
At the start of the year
-
Charge for the year
-
At the end of the year
Net book value
At the end of the year
-
At the beginning of the year
-		 Leasehold
improve-
ments
£
4,289,237
-
4,289,237
1,610,865
155,972
1,766,837
2,522,400
2,678,372		 Fixtures,
Fittings and
Equipment
Total
£
£
658,989
4,948,226
-
-
658,989
4,948,226
658,989
2,269,854
-
155,972
658,989
2,425,826
-
2,522,400
-
2,678,372

10 Debtors

Trade debtors
Other debtors
Prepayments and accrued income
Current asset investments
COIF Fixed interest fund		 2023
2022
£
£
18,889
21,345
-
-
-
-
18,889
21,345
1,157
1,157

11. Current asset investments

During the year there was no change in the fund value (2022 - £Nil).

Page 12

Zinc Arts Notes to the Financial Statements

For the year ended 31 March 2023

12 Creditors: amounts falling due within one year

Bank overdrafts
Trade creditors
Accruals and deferred income
Other taxation and social security
Other creditors
Bridging Loan S.I.B (see note 13)
Other loan (see note 13)		 2023
2022
£
£
6,319
6,319
39,876
38,755
20,984
25,412
18,369
8,483
7,451
10,183
-
-
146,609
98,140
239,609
187,292

13 Creditors: amounts falling due after more than one year

Futurebuilders Loan 1
Futurebuilders Loan 2
Bridging Loan S.I.B
Other loan		 2023
2022
£
£
1,714,866
1,714,866
1,313,005
1,313,005
57,500
57,500
-
32,598
3,085,371
3,117,969

The Futurebuilders and S.I.B. loans are secured by way of a fixed charge over the Charity's long leasehold property.

The loan agreement provides for the loans to be repaid over a period of 25 years at an interest rate of 6%. However, interest and repayment holidays have been formally granted until 31st May 2022 and the Trustees assume the repayment holiday is ongoing.

The amount shown under "other loans" represents a loan from an employee. The loan carries an interest rate of 19.9% and was repayable by instalments between 11 July 2019 and 30 May 2021. With the agreement of the lender, the repayment period has been significantly extended. The lender has indicated flexibility as to the repayment schedule in order to support the Charity's cashflow, and will cap the amount of interest chargeable on the loan.

Page 13

Zinc Arts Notes to the Financial Statements For the year ended 31 March 2023

14 Movements in funds

Current Year
General Funds
Designated fund
Total - unrestricted funds
Prior Period
General Funds
Designated fund
Total - unrestricted funds		 At the start
of the year
£
(604,291)
1,156
(603,135)
(426,448)
1,156
(425,292)		 Incoming
resources
£
344,061
-
344,061
270,687
-
270,687		 Outgoing
resources
At the end
of the year
£
£
(514,252)
(774,482)
-
1,156
(514,252)
(773,326)
(448,530)
(604,291)
-
1,156
(448,530)
(603,135)

The designated fund comprises amounts set aside for capital repairs and renewals and is held in the COIF Investment fund see note 11.

15 Reconciliation of net income to net cash flow from operating activities

Net income for the reporting period
Depreciation charges
Decrease (Increase) in debtors
Increase (Decrease) in creditors
Net cash provided by operating activities
16
Analysis of cash and cash equivalents
Cash at bank and in hand
Bank overdrafts
Total cash and cash equivalents		 2023
2022
£
£
(170,191)
(177,843)
155,972
152,087
2,456
(2,284)
19,718
25,055
7,955
(2,985)
£
£
9,207
1,252
(6,319)
(6,319)
2,888
(5,067)

Page 14

Zinc Arts Notes to the Financial Statements For the year ended 31 March 2023

17 Capital commitments

At the balance sheet date, there were no capital commitments (2022: £Nil).

18 Contingent assets or liabilities

At the balance sheet date, the there were no contingent assets or liabilities (2022: £Nil).

19 Related party transactions

Trustees received reimbursement of expenditure in respect of the Charity's activities during the current year - see note 7.

20 Legal status of the charity

The Charity is a company limited by guarantee and has no share capital. The company is incorporated in England and Wales - registration number 02866315. The liability of each member in the event of winding up is limited to £10.

The registered office of the Charity is Great Stony, High Street, Chipping Ongar, Essex CM5 0AD.

Page 15

Zinc Arts

Independent Examiner's Report - 31 March 2023

Report to the Trustees of Zinc Arts on the financial statements of the Charitable Company ("the Company") for the year ended 31 March 2023 set out on pages 4 to 15.

Responsibilities and basis of report

I report to the Charity's Trustees on my examination of the accounts of the Company for the year ended 31 March 2023.

As the Trustees of the Company (and also the Directors of the Company for the purposes of company law), you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ("the 2006 Act").

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 ("the 2011 Act"). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

The company’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of The Instiute of Chartered Accountants in England and Wales.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in, any material respect:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Signed: DA EATON 23 November 2023

David A Eaton FCA Eaton & Co Chartered Accountants and Consultants

The Cedars, School Lane, Great Barton, Bury St Edmunds, Suffolk IP31 2RQ

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