Zinc Arts Trustees Report for the year ended 31 March 2024 Registered Charity number: 1035444 Company number: 02866315
NTRODUCTION The Ti'iistees (who are also Directors of th¢ ¢hai'ity for the piirposes of th¢ Coinpaiiies Act) liave pleasuit Ill 511binitting their annlial report logetlier with tli¢ financial statements of Zii)c Arrs (the compai)y) for tl)e year ended 31 Marcli 2024. The financial stateimeiits comply with the Cliariti¢s Act 2011. the Companies Aci ?006, the Memorandiiin lind Aiticles of Association, <liid AccoLinting aiid Reportiiig by Cliarities= Statement of Recomineiid¢d Pi?ctice 4ipplicable to cliarities prepariiig tlieir accoLlllts in accordanee with the Financial Repoitiiig Staiidard appli¢abl¢ in Il)¢ UK and Republi¢ of Irelai)d (FRS Io:). Directors/ Trustees The Tnistees, who are also Dtrectors of the coinpany who acted tl)i"ouglioiit the year, are Dr Daryn Hufton-Rces ond Vietoi'ia Kaye, Jamie Macleod Wl1 s appoiiited in Noveii]ber ?0?3. STRUCTURE, GOVERNANCE AND MANAGEMENT CONSTITUTION Zinc (Company number 02866315) Wds incorporated oi) ?7 October 1gJ3 aftd is a cliaritable company li1111ted by tlic guaratktccs ot. tlie iiiembers to a maximiiin of £1 O each. The conipany is a r¢gistered cliarity (numbLI 1035444). Tli¢ ¢ompaiiy gairted cliaritable %tdtiis on )2] March 1994. It changcd it5 iiamc froin Theatre ResoLirce to Zinc Art5 Wlth The Charity Cominission ii nd Companie5 Hoiisc on 22" Noveniber ?0 l ? SPECKFIC INSTRUCTIONS There re no specific inslructi017s rclating to tlie operatioii of the cliarity, nor are there any specific investinent powers. GOVERNANCE In 2023-?0?4 tlie Charity compiised a meinbersliip of 3 individiials cominitted to sllpportino the aspii'ations OF the oig2l)558tion. The ¢onstilutioii stipulatC5 that Meinbcrs al-e Mlltoinatically clcctcd to a Board of Dircctor&ryrustee5 lo nin tlie 2ffai1s of the orgaiiisation. Wlien an iiidividiial resigns theii. position on tlie Board of Directorsrrrustees their iiiembei'ship of the organisation ceases. The Tn15tces are respoiisible for fonnulating the stiitegy and policie5 for Zinc and may meet at such tiine5 and regiilate its meetings as it s¢es fil. In 2023 2024. tlie Ttustecs spoke regiilarly, to steel th¢ organi58tion tlii'ougli the toiigli financial cliinate and 5UPPOrt the CEO and the organizatioii. RECRUITMENT, APPOINTMENT AN'D ELECTIOTs' OFTRUSTEES Tlie Board ideiitifies and regiilarly reviews tlie skills of ¢xisiiiig Board Meinbers and any needs of the Board M,Iiicli al'e not being met by the ciin.cnt Inembership. RecrLiitinent is tliroiigh.. Targetiiig individuals known to Ziiic. Adveitising foi. applicaiits tlii'ouglJ the media and other sol1C5. and Utilising board'banks,. etc. maintained by support bodie5. Recrititment is not liinited to within tl)e arts, ediication or 50¢ial ¢are field, biit reflects tlie varied needs of the orgaiii5ation. Wliilst specific skills may b¢ sought Ifor example in relation io regular skkll
aiidits und¢rtak¢n bytlie Board) enthiisiasin and vision inay also be Considered equ1< Ily valuable. The Board l)as established procedures for recniiting and appointing Board membeis, inclLidiiig initial identification of potential candidates. infonnal visits or disciissions, forn1 ppliclltion and interviemi considcration by thc fiill board and, flnally, election by a Imajoi'ity of votes. Iii ?0?4-?5 Zinc will continue to look to ¢ippoint new members io the board lo in¢rease the suppoit io the orgil11isation. This process srarted iii 20?2-?3 aiid caine to fruition with J£linie Mcloed proving a valiiabl¢ addition. A skills aiidit will be iindeilaken to identify ar&is for iinprovenient and tlien Zinc iyill look lo appoii)I Inembcis wlio Cali fill ili¢s¢ gaps. POLICIES AND PROCEDURES FOR THE INDUCTION AN TRAlh'lh'G OF TRUSTEES Zinc is cominitted to a full indLlCtion ii nd ongoing training of TrLlStees. A coinprehensive indu¢tioii pack and standing ordcr5 are in place and ai"e regiil<1rly iipdated to cnsui'e compliance willi coinpany and chariry law. RISK fvIANAGENqEh'T The Trustees liave assessed the major risks to ivhi¢h tlie company is cxposed, in particular tliose related to ihc opeiations and fiftaiices of the company aiid are satisfied that systems aijd procedui'es are ii? place to miiig<lte oiir exposiire lo tlie major risks. OBJECTIVES AND ACTIVITIES COI4IPAhTY OBJECTIVES The obj¢ctive of Ziiic. as stated in thc McJnor3t]dum and Articles of Association, is to 'advance educatioii foi- tlie public benefit tlirough thc proinolion of thc arts. particiilarly but not eK¢lusivcSy for disablcd and disadvantaged pcople,. Whilst tliis is Still relcvant, following on from a post pandemic review, we feel Zinc offer5 so Inuch more than this_ Therefore. we are actively looking to updatc our constitLItIOLI to cncompas5 all the wondcrfLiI work we do. We treat dis8bled people a5 a core part of the community. and feel it is inappmpriate to have disability as 3 separate strand. as we offer services for the community as 8 whol¢ without distinction. b. ACHIEVElE'T OF OBJECTIVES Zinc works to promote the creativity, culture and heritage of di5ablcd pcople and so¢ially- excliid¢d groups for the benefit of all. In our work. we Seek to-. G¢nerate pathways within the arts. Stimulate high-quality. diverse and experimerttal piDjecl work. Provide lifelong learning, tt'aining and einploymenl opportunities- Create plaifoi-ms for the exploration and representation of the culilires and neglected hisiories of excluded groups; Celebrate Diversity Chainpion Wellb¢ing Initiate infonned debate and influence policyinaking. Foster enablii)g enviToninent5' and Advan¢¢ incliisiven¢ss, accessibility aiid equality iii the wider arts environmenr. nd in th¢ communities ii) which Mie live. Provide accominodation for bot]i respite aiid short term tenancics.
e. OBJCCTIVES AND ACTIVITIES FOR THE PUBLIC BEf*EFET In sliaping oiir objectives for tlie year and planning OLir activities, the trustees have coiisidei'ed tli¢ Charity Cominissioii's giiidance 01) public beiiefil. incliiding tlie gLiidance oil public benefit aiid fee cliargin<F Wliilst Zinc iindertakes work ftinded by grants Ilnd coinniissioiis froir fiiiiding 8geiicits, fees ale cliarged to individual beiieficiaries to lielp covei. ope¥aliiig costs. Wlicre fees are charoed, in settiiig tlie level offees, c111< rges aiid concessions. tlie Iiiistee5 always coiisider aecessibility of activities for Iliose on low ificoines and living oli benefits. The Cliarity's piiblic benefit dui'ins the year is deinoiistrated by the activities undertakeii iii ?02?_ 2023 d. ACTIVITIES UNDERTAKEN IN 2023-2024 Zinc coiltiniied its ciirrent activities with core P1& rticipatory oroups, iiicluding Dldeaf people, participants with 11)cn¢al health nccds. pliysical andlor seiisory iinpainn¢nls, Enultiple ¥Jnd profoiind leaiiiing difficiilties ndloi. with experience of otlier fonns of social exclusion. In previoLlS ycars Zinc siiffered difficiilt fiiiancial oiitcoines. and as a result in 2023-24 coiiIiiiLicd to fociis oil tliosc activities wliicli WOLild contribiite to tlie delivciy of its cliaritable objectives whilst dt the saine tiinc generating fiinds to ensure the ongoiiig IEpair of the financial position. Activities deliveied iiiclude tlie follmving". Tolpuddle House Progranime ?023ll4 saw the £ot]tiniied support to tlie seivice iisers of TolpLiddle Hoiise, the housing and assotiated eiy)ploym¢i)t and training progE71ntne for VLiliicrablc adult5 living on site iii accoininodation inaiiaged by L&Q. Niiie adiilts received supported living aiid associated educatiOE], traiiiing and vollinteeriiig opportiinities. Tenants gain skills and le2rii to live indepeiidently with the aim of bein¢F offered a flat of tlieir owii. Tliey attend rhe Aspire Learning prograinme at Ziiic to gaiii skills they will need to become more independent, siich as Employability. Health Wtllb¢iDg and Focus Centr¢ Working iii partnersliip with Epping Forest Distt-ict Coiiiicil we offer accoinmodation to pcoplc who would othenvise bc hoillclcss. Thesc pcoplc are housed in OLir facilities oli liccnce and we offci. SLlPPOrt, trainzng and Lise of our selvices until pennaiient accommodation becoine5 available and tliey Inove into their new home. Aspire Learnino Fonnally named AQA and Tlie Biz but IEbi'anded In January 20?0. the coiirses delivered are Artbox, Stepping Stones: Perfomi, Reflect and Elevate. The courses are designed for adults 16+ as an alternative to college for people who ivould struggle at a maiiistreain college Pirticipants gain an accreditation at the eiid of tlie course.
Respite Weekend Groiips of 6 - 9 Pic rticipaiits usiially with hi£li d¢pendency needs. Ivl)o coine to Zine lo liavc fun and interact willi people of tlieii. owi) age. giving parents aiid regular ¢ar¢rs a break wlJilsl tliey are oli respite. In 20?3-?4 tliese have become Inonthly events and are hugely popiilar. Ongor Youth Hub Ziiic rLlI)S tlie local Yoiith 14ub iii Ongar wl)icli is iiin in pai1iicrsliip iviih Ihe Youth Service and Essex Colinty Council. A i"ai)oe of activities ar¢ oli offci- iiirludiiig cooking. gaiMCS, Inusic. dance and th¢ provision Of a safe SP<iee foi. children to hang out. OTHER ACTIVITES AT Zth'c's ARTS CENTRE BASE Ziiic LEses its facilities to m4ik¢ p055ible a wide array of actiyilics wliicli are of diiECt beiicfit to the local coinilliinity.. Regular hiirrs of rooms delivei a rnnge of services. incliiding excrcise ¢lass¢s of various types, baby. 5iiiging lind cookery classes, and counselling gi'oups. The gym (not run by Ziii¢) is availabl¢ lo local coininunity groups and participailts of Zinc. Academy Arts rnn a Theotre School, dcliver showca5C5 tlirouglioiit Ilie yeai. and run a paiitoiiiiiiic at Ch175tsJ)as in Zinc. V1c rious worksliop5, holÈday cliibs and other so¢ial a¢tivittes are delivered wkthin ihc building. f. SIGN'IFICANT CHANGES tN ACTlVtTIES There were no si£nificant chaiiges to activities of the charity diiring tlie year. FINANCIAL REVIEW RESULT FOR THE YEAR ZiTrc inciirs a substantial d¢preciatioii Chai'ge relatiiig to iinprovements made to the centre in the Yea leading up 10 201? This aiiioiinted to £155,792 in 2023-24 (155.972 in 2022-23.) Th¢se arc Iioi cash cost5, and tlic tnistees consider it to be appropriate to exclude thein from the review of the result for the ycer. Excliiding tl)is d¢preciaiion charge, the resiilt for the year is a deficit of £48,733.
b. GOING COhTCERN As explained in note Ilc) to the accounts, Zinc has the support of its principal loaii thndet5. ¢. RESERVES POLICY The focus of the direetors is CUTrently on generating 2¢ pre-depreciation operatinu surplus. lo repair the finances of the charity followincj the difFiclllt years prior 10 2017-2018. Accordin>lrly, the organisalion does not have a fortll1£ I resetves policy iii place, as ttii absolul¢ level of reserves is not LlltLlY the niain priorily. The e5tablishinent of a fonnal policy wtll be revisitcd wlien it is appropri£11e 10 do so. PLANS FOR THE FUTURE Zinc's prioriti¢s for the nexi 12 inontlis are as folloivs.. Continueto incr¢a5¢¢XP05ure andawarenessboih in the local area and widercommunity. This would increase fooifall. bookings and partioipaJkt5 on our Urs¢5. Continue tu (Jrow our A5PLre learning proui'llminc. Thc last 12 moni115 have seen iy]odcrntc gtoivih. but we ivould like to expand furtherand ieacli cven more participants to Iielp (hem develop their ski115 2nd confidence_ If the fiist two points are achieved this would provsde an opportunity to incr¢a5e 5UPPOrt l ad¥ninislrdtion staff levels. Coiitinue our relatioiisliip wirh Issex Counly Council dnd ihe Youth Service making sure Ongar l)as a variety ofactLVities foi. tlie local £hiSdrcn to access. Support the local community by being a vibrant. welcomrng and forward-thinking organisation with initiative% such #s being a wwm hub. Rcduce the amounl owed io creditors and 5e¢ur¢ th¢ financial posilion. Look to build a r¢serv¢ fund to fall back on in case of financial uncertainty.
TRUSTEES, RESPONSIBILII'IES STATEMENT Tlie Trtislees Iivho gre also directors of Zinc Arts for the purposes of coinpllny law) are i-esponsible for prcparii)g the Triisiees, Report aiid Ilie rtnancio1.stateiiia)Is li) 4iccord#iic¢ will) applicabl¢ law and Uniled Kiiigdotn A¢countiiig Standai'ds {Uniied Ktiigdoin Geiierally A¢eepted Accoiinting Pra¢iice}. Company law requires ilie Trustee5 to prepai'e fiiiaiicial sLatcinenlS for ¢a¢li financial year. Under coinpany law lh¢ TYi2stees inLisI not approve the finaiicial slateinenls Linless tl)ey arc satisfied that tliey nive a true and fair view ol. Ihe of tlie charitable eoinpai)y aiid of the incoimiiits resources and applici1(ion of r¢soiLrces: iiiclLidiiiTr ihe incon)e and ¢xpenditure. of tl)e ch&rilable coinpany for that period. In preparin¢F Ihesc finaiicial st¥l¢m¢nts, tlie Truslees are reqLiired 10.. sel2¢l suilable accountin policies aT]d then apply Ihctn coi)sistently; observ¢ thc metl)ods and principle5 Tii Lhe CharitlC5 SORP: Inakc jydgTn¢ii15 ajid <lCCOUI)ljiiu e5tlLiiales thaL Jre rcasotlciblc ¢111d prudent; Prepare thc fjnancial stateinents on tlie concerii basis uiiless it is inappi"opriate to presuine th¥tt the cliaritable Lomparty will Continue in operation. Thc Trustees are responsible for kecpiiig adequate accoiinting recoi.d5 that arc siifficieiit to sl)ow and explaiii the charit£2ble company's Iran5acti0115 and disclose with reatsoiiable ccuracy at any tiine the fiiiaiJ¢ial p051tion of the cliai'itable coimpaiiy and ¢n&ble thcin to ensiire th91 thc financial stateineiits ¢oLnply willi tlie Coinpaiiies Act 1006_ They are J150 r¢spoTtsible for Sdfeguardiiig tlie assets of Èhe cliai'itable coinpaiiy aiid hence for taking reasoiiable stcps for the prevention and dete¢lioii of fi?iid and other inEgularities. signed on their bchalf by DK Hufton-Rees Tru5tce 26, '0eMber 2024
Zinc Arts Flnancial Statements for the year ended 31 March 2024 Reglstered Charlty number: 1035444 Company number.. 02866315
Zinc Arts Financial statements for the year ended 31 March 2024 CONTENTS Pages Directorsnrustees Independent examiner's report Statement of financial activities Balance sheet Notes to the financial statements 6-15 Directors Trustees Dr Daryn Kenneth Hufton-Rees Victoria Kaye Jamie Macloed - Appoiftted 23 November 2023 Trustees of the Chority are also known as Directors of the Compony. 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 2024 Report to the Trustees of Zinc Arts on the financial statements of the Charitable Company ("the Company") for the year ended 31 March 2024 set out on pages 4 to 15. Responsibllttles 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 2024. As the Trvstees of the Company land also the Dirertors ofthe Company forthe purposes of company lawl, you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 20061"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 Art 2011 {"the 2011 Art"). In carrying out my examination I have followed the Directions given by the Charity Commission under section 14515) Ibl of the 2011 Act. Independent examiner's statement The company's gross income exceeded £250,000 and l am qualified to undertake the examination by bein8 a qualified member of The Institute of Chartered Accountants in England and Wales. I have completed my examination. I confirm that no material matter5 have come to my attention In connection with the examination giving me cause to believe that in. any material respect-. l. accounting records were not kept in respect of the Company as required bysertion 386 of the 2006 Act,. or 2. the accounts do not accord with those records,. or 3. the accounts do not comply WFth the accounting requirements of section 396 of the 2006 Act other than anv requirement that the account5 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 RepOrtinR Standafd applicable in the UK and Republic of Ireland IFRS 102)]. I have no concerns and have come across no other matters in connettion with the examinatlon to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Slgned.. DA EATO 26 November 2024 David A Eaton FCA Eaton & Co Chartered Accountants and Consultants The Cedars, School Lane, Great Barton. Bury St Edmunds, Suffolk IP312RQ Page 3
Zinc Arts Statement of Financial Activities lincluding Income and expenditure account) For the year ended 31 March 2024 2024 2023 Unrestrirted funds Re5trlcted Funds Total Funds Unrestrlrted funds Restrirted funds Total Funds Note Income: Donations. legacies and grants Income from charitable actlvitles other incomlng resources 17,826 306,797 47.340 17,826 306,797 47,340 34,357 268,946 40,758 34,357 268,946 40.758 Total income 371.963 371.963 344,061 344,061 Expenditure on: Charitable activitie5 420,696 420,696 358,280 358,280 Total expendlture 420.696 420.696 358,280 358,280 Net Income {expendlturel before depre¢lation and revaluatlons {48,7331 148,7331 114,2191 114,2191 Depreciation 1155,9721 1155,9721 {155,9721 1155,9721 Gain5 and losses on revaluations of investment a55ets Net (expenditure) and net movement in funds for the year 1204.7051 {204,705 1170,191) 1170.1911 Re¢on¢lllatlon of funds: Total funds brought forward 1773,3261 1773.3261 {603.1351 1603,1351 Total funds carried forward 1978,0311 1978,0311 1773.3261 {773,3261 All of the above results are derived from continuing activitie5. There were no other recognised gain5 or losses during the year. Page 4
Zinc Arts Balance Sheet For the year ended 31 March 2024 2024 2023 Note Fixed assets: Tangible assets 2,366,428 2,522,400 2,366,428 2,522,400 Current a55ets: Debtors nvestments Cash at bank and in hand io li 31,134 1,157 10,157 18,889 1,157 9.207 42,448 29,253 Liabilities: Creditors.. amounts falling due within one yeaf 12 301,536 239,609 Net current Ilabilities 1259,088) 1210,3551 Total assets less current liabilities 2,107,340 2,312,045 Creditors.. amounts falling after more than one year 13 13.085,3711 {3.085,3711 Totsl net assets 1978.031 1773,3261 , The funds of the Charity: Unrestricted funds 1978,0311 1773,3261 Total Charity fvnds 1978,031 773,326 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 Att. The Directors acknowledge their responsibilitie5 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 provision5 applicable to companies subject to the small companies regime. The financial statements were approved by the Board of Trustees on 26 November 2024. Signed: DK HUFYON-K 26 November 2024 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 2024 l Accounting Policies Zinc Arts is a charitsble company I'charity'l limlted by guarantee and is incorporated in England and Wales. The registered office address and principal place of busit)ess is Great Stonyi High Street, Chipping Ongar, Essex, CM5 OAD. The principal accounting pollcles adopted• judgements and key sources of estlmatlon uncertainty in the preparation of the financi31 statements are as follows: al Basls of prÈparation The financial statements hove been prepared In accordance with Accountlng and Reporting by Charlties- Statement of Recommended Prartice ISORPI applitable to charitie5 preparing thelr accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffective l January 20151- (Charities SORP FRS 1021, the Financial Reporting Standard applicable In the UK and Republic of Irelènd IFRS 1021 and the Companies Act 2006. Assets and liabiltties are initialty recognised at historical cost or transartion value unles5 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 historicol experience and other fartors. incl¥Jdlng 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 signrficant estimates and judgements affertlng these financial ststtments are detailed within the relevant accounting policy below. The functional currency is the British Pound. b) Publlc benefit entkty The Charity meet5 the definition of a public benefit entity under FRS 102. cl Golng concern The financial statement5 have been prepared on the going concern basis. although the Charity has net current liabilities, excluding loans. of £97.87612023- £63.9261 and long-term loans of £3,085,37112021- £3,085,3711. The going Concern basis assumes that the Charity wlll continue in operational existence for the foresèeable future and reflects the Trustees, belief that the Charity will continue to generate sufficient cash flow5 to meet its liabilkties 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 account5. 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 month5 from the date of signing these accounts. If for any reason the current level of income or financlng wa5 not available, the Charity would need to seek alternative 50urce5 Qf Income to ensure it5 continuation as a golng concern. The financial statements do not include the adjustments which would result if the Charity was unable to contlnue as a going concerft. d) Income Income 15 recognlsed when the Charlty has entitlement to the fund5. any performance conditlons attached to the income have been met, it is probable that the income will be received and that the amount can be measured rellably. Donations, grant5 ond fund5 received for Specific project5 and subject to speclfic w15hes of the donors are credited to the relevant restrlcted fund. When donors specify that donation5 and grant5 gtven to the Charity must be used In future accounting periods. the Income Is deferred until those period5. Bullding Income is Included In the period to whlch it relates and includes the renting of accommodation provided. hlring of facilitles 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 2024 e) Donations of glfts. services and facllitie5 Donated professional setvices 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 IFRS 1021, volunteer time 15 not recognised, On receipt, donated gifts, professional services and donated facilities are recognised on the basls of the value of the glft 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 correspondin8 amount is then recognised in expendlture in the period of receipt. fj Fund accountlng 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 15 set out in the notes to the financial statements. g) Expendlture 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 followinR activity headinRs- 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 attivity, as outlined in the Trustees, report. h) Allocatlon of support costs Resources expended are allocated to the particular activity where the c05t relates directly to that activity. for Governance costs, one of the support costs, are the costs associated with the Eovernance arrangements of the Charity. These costs relate to constitutlonal and statutory requirements and include any costs associated with the Strategic management of the Charity'5 activities as well as professional fees. il Operating leases Rental charges are charged on a straight line basis over the term of the lease. J} Reallsed gains and losse5 All gains and losse5 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 iain5 and losses are combined in the SOFA. kl Tangible fixed aet$ Asset5 over E500 are capitalised at cost. Assets are reviewed for impairment if circumstance5 indicate their carrying value may exceed their net realisable value and value in use. Depreciation is provided at rate5 calcylated to write down the cost of each a55et to its estimated residual value over its expected useful life. Leasehold improvements 27,5 years (amended from 135 year5 at 31 March 20191 Fixtures, Fitting5, Equipment 10% Straight line The depreciation charge is shown separately on the SOFA in view of its magnitude and the fart that it is a non-cash C05t resulting from historical expenditure. This presentation has been adopted to give a fair representation of the charitV'5 current financial performance. 11 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 2024 m) Debtors Trade and other debtors are recogni5ed at the settlement amount due after anytrade 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 provlsions Creditors and provision5 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 recogni5ed at thelr settlement amount after allowing for any trade discounts due. ol Leaslng 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 ollocated to future periods. The finance element of the rental payment is charged to the Statement of Financial Activities in the appropriate year. Rentals under operatin£ lease5 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 transattion value and subsequently measured at their settlement value with the exception of bank loan5 which are subsequently measured at amortised cost using the effective interest method. q} Crltlcal accounting e5tlmates 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 factor5 that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumption5 are reviewed on an ongoing basis. Revision5 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 year5 wa5 more appropriate than the 135 years being employed. Appropriate adjustments were made in the 2018119 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 causlng a material adjustment to the carrying amounts of a5set5 and liabilities within the next reporting period. Page 8
Zinc Arts Notes to the Financial Statements For the year ended 31 March 2024 2 Donation5. legacles and grants 2024 Totsl Funds 2023 Total Funds Unrestricted funds Restricted funds Unrestricted funds Restrlcted funds Donations Grants 796 17,030 796 17,030 7,142 27,215 7,142 27.215 17,826 17,826 34.357 34,357 3 In¢orne from charitable artivities 2024 Total Funds 2023 Total Funds Unrestricted funds Restrlcted funds Unrestrlrted fvnds Restrlcted funds Contract5 and Fees 306.797 306,797 268.946 268,946 306,797 306.797 268.946 268,946 Page 9
Zinc Arts Notes to the Financial Statement5 For the year ended 31 March 2024 4. Analysis of expendlture on charitable activities 2024 Total Fund5 2023 Total Funds Unre5trlcted funds Restricted funds Unrestricted funds Restricted funds Staffing Other dirett costs 195,388 9,600 204,988 215.708 195,388 9,600 204,988 215,708 167,220 6,986 174,206 184.074 167,220 6,986 174,206 184,074 Support costs (note S) 420,696 420,696 358,280 358,280 During the year the Charity had one class of activity, to promote the creativity, culture and heritage of disabled people and socially- excluded groups for the benefit of all. S. Analysis of support ¢ostS 2Q24 Total Funds 2023 Total Fund5 Unrestricted funds Restrlcted funds Unrestricted fund5 Restricted funds Governance (see below for analysis) Interest Other 4,393 30,678 180,637 4,393 30,678 180,637 4.726 28.710 150,638 4.726 28.710 150,638 Total 215,708 215,708 184.074 184.074 Governance costs are made up of: Independent examination fee5 Other legal and professional fees 4,000 393 3,500 1,226 3,500 1,226 393 4,393 4.393 4.726 4,726 Page 10
Zinc Arts Notes to the Financial Statements For the year ended 31 March 2024 Net income for the period 2024 2023 This is stated after charging: Depreciation annual charge Independent Examination fee 155,792 4,000 155,972 3,500 Analysis of stsff costs. trustee remuneration and expenses, and the cost ot key management personnel Staff costs We as follows.. Wages and salaries Social security costs Pension costs 183.087 8,778 3,523 156.494 7,841 2,885 195,388 167,220 The average number of employees duringthe year was 9 {2023- 8} No employee received remuneration amounting to more than £60,000 in eitheryear. The cost of senior management personnel was £Nil12023 - £Nil) The Charity's Trustees were not paid and did not receive any benefits from employment with the Charity in the year12023- £Nill. During the year the Trustee5 received reimbursement of expenses of £21,64912023 - £21,600). No Charity Trustee received payment for professional or other services supplied to the Charity {2023 - £Nill. Taxatlon The Charity is exempt from Corporation Tax as all its income is charitable and is applied for charitable purposes. Page 11
Zlnc Arts Notes to the Financial Statements For the year ended 31 March 2024 Tangible Fixed Assets Leasehold impTOVe- ment5 Flxtures. Ftttings and Equipment Total Cost At the start ofthe year Addition5 during the year 4,289,237 658,989 4,948.226 At the end of the year 4,289,237 658.989 4.948,226 Depreciation At the start of the year Charge for the year 1.766.837 155,972 658.989 2.425.826 155.972 At the end of the year 1,922,809 658,989 2,581,798 Net book value At the end of the year 2,366,428 2,366,428 At the beginning of the year 2,522,400 2,522,400 10 Debtors 2024 2023 Trade debtor5 Other debtors Prepayments and accrued income 31,134 18,889 31.134 18,889 11. Current asset Investments Col F Fixed interest fund 1.157 1,157 During the year there was no change in the fund value12023 - £Nill. Page 12
Zlnc Arts Notes to the Financial Statements For the year ended 31 March 2024 IZ Creditors: amounts falling due within one year 2024 2023 Bank overdrafts Trade creditors Accrua15 and deferred income Other taxation and soclal security Other creditors Other loan (see note 13) 6,319 55,462 35,384 35,980 7,179 161.212 6,319 39.876 20,985 18,369 7,451 146,609 301.536 239,609 13 CredStors: amounts falling due after more than one year 2024 2023 Futurebuilders Loan I Futurebuilders Loan 2 Bridging Loan S.l.B Other loan 1,714,866 1.313,005 57,500 1,714.866 1,313.005 57,500 3,085,371 3,085.371 The Futurebuilders and S.l.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" represent5 a loan from an employee. The loan carries an interest rate of 19.9% and was repayable by in5talments between 11 July 2019 and 30 May 2021. With the agreement ofthe lender. the repayment period ha5 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
Zlnc Arts Notes to the Financial Statements For the year ended 31 March 2024 14 Movements In funds At the start of the year Incomln8 resources Outgolng resource5 At the end of the year Current Year General Funds Designated fund 1774,4821 1,156 371,963 {576,6681 1979,1871 1,156 Total - unrestricted funds 1773,326 371.963 576.668) 1978,0311 Prior Perlod General Funds Designated fund 1604,2911 1,156 344,061 {514,2521 1774,482) 1,156 Total - unrestricted funds 603.1351 344,061 1514,252 1773,3261 The desi8nated fund comprises amount5 set aside for capital repairs and renewals and is held in the COIF Investment fund see note 11. 15 Reconclllatlon of net income to net cash flow from operatlng activities 2024 2023 Net income forthe reporting period Depreciation charges Decrease {Increasel in debtors Increase (Decrease) in creditors 1204.705} 155,972 {5.2441 54.928 (170,1911 155,972 2,456 19.718 Net cash provided by operating activities 951 7,955 16 Analysls of cash and cash equlvalents Cash at bank and in hand Bank overdraft5 10.157 16,3191 9.207 16,319) Total cash and cash equivalents 3,838 2,888 Page 14
Zinc Arts Notes to the Financial Statements For the year ended 31 March 2024 17 Capftal commitments At the balance sheet date, there were no capital commitments12023'. £Nil}. Contin8ent asset5 or Ilablllties At the balance sheet date. the there were no contingent asset5 or liabilltles {2023: £Nill. 19 Related party transactions Trustees received relmbursement 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 OAD. Page 15
Zinc Arts Independent Examiner's Report - 31 March 2024 Report to the Trustees of Zinc Arts on the financial statements of the Charitable Company ("the Company") for the year ended 31 March 2024 set out on pages 4 to 15. Responsibllttles 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 2024. As the Trvstees of the Company land also the Dirertors ofthe Company forthe purposes of company lawl, you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 20061"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 Art 2011 {"the 2011 Art"). In carrying out my examination I have followed the Directions given by the Charity Commission under section 14515) Ibl of the 2011 Act. Independent examiner's statement The company's gross income exceeded £250,000 and l am qualified to undertake the examination by bein8 a qualified member of The Institute of Chartered Accountants in England and Wales. I have completed my examination. I confirm that no material matter5 have come to my attention In connection with the examination giving me cause to believe that in. any material respect-. l. accounting records were not kept in respect of the Company as required bysertion 386 of the 2006 Act,. or 2. the accounts do not accord with those records,. or 3. the accounts do not comply WFth the accounting requirements of section 396 of the 2006 Act other than anv requirement that the account5 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 RepOrtinR Standafd applicable in the UK and Republic of Ireland IFRS 102)]. I have no concerns and have come across no other matters in connettion with the examinatlon to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Slgned.. DA EATO 26 November 2024 David A Eaton FCA Eaton & Co Chartered Accountants and Consultants The Cedars, School Lane, Great Barton. Bury St Edmunds, Suffolk IP312RQ Page 3