REGISTERED CHARITY NUMBER: 1049259 REPORT OF THE TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 FOR N K THEATRE ARTS D Wilson & Co 21, Charnwood Avenue Denton Manchester M34 2WY
N K THEATRE ARTS REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 The trustee5 present their report with the fina ncial statements of the charity for the yea r ended 3 1 August 2024. The trustees have adopted the provisions of Accounting and Reporting by Charities.. Statement of Recommended Practice a pplicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the Ul( and Republic of Ireland IFRS 1021 (effective l January 20151. OBJECTIVES AND ACTIVITIES Activities The principal activity of the charity continues to be that of provid ing the opportunlty for people of all ages, irrespective of ability, d isability, status or culture to realise their full potential th rough the exploration of perform i ng arts. This will be u nderta l<en within an environment where individuals are not labelled and all members are given an equal opportunitytogrow and enjoy the conceptof artsfor all, Ouraim isto promote self-belief and dispel self-doubt, enabling people to be heard who might otherwise be overlooked, We provide 3 base for other local community organisations and performing arts socleties with a high quality space for cultural events, Our outreach programme delivers soclal and issue based presentations to children, young people and vulnerable adults delivering pertinent Issues in partnership with institutions such as The NSPCC and the police. In deciding which activities to undertake the trustees have paid due regard to the Charity Commission's guidance on public benefit. Policies and organlsation N K Theatre Arts has a board of Trustees ccnsisting of interested individ uals a nd volunteer representatives, The Trustees bring a broad ra nge of expertise to the organisation covering finance and banl<ing, strategic management, HR, Safeguardlng. The Board has specific sub-groups, which are mandated to plan and review certain a reas of worli, which report to the full board, ACHIEVEMENT AND PERFORMANCE enin Stat ment b the Trustee board. This has been an extremely difficult year for the Charity. Upon the DFES shutting schools With Reinforced Autoclaved Aerated Concrete IRAACI, all local authorities were advised to check their portfolio and it became apparent that The Forum Theatre, the home of our Charity had significant areas of RAAC in its roof structure, There then followed strong advice from Stockport Council to close the theatre immediately whllst assessment5 were made and repairs carried out. This meant from early September 2023 until mid june 2024, the use of the theatre for workshops and performances wa5 significantly impacted, The main auditorium of the theatre was closed throughout this period. With insura nce not able to cover the losses due to the lack of an insured event, the Charity ha5 made a significant and unforeseen loss for this financia I year which has massively impacted the reserves of the organisation. These losses have prevented the regular reinvestment we would expect to make on equipment and facilities and we will seek during the forthcoming year to secure a ppropriate funds for this. Page I
Lon term lannin With "temporary repairs" and not long term replacement made to the structure af the building, we will be working closely with the local a uthority in the coming year as we look to formulate specific plans to secure the long term future of the Forum Theatre as a base for our Charity. The current lease between Stockport Council and NKTheatre Arts finishes in 2033. Income and Ex enditure Summar The company accounts Show a significant Ioss for the year of £123,569 down from a surplus of £13,388 in the previous year. Our turnover dropped from £760,000 to £370,545 a drop of over 50Y.. Although expenditure also fell, it was not proportionate due to the additional costs Incurred in hiring alternative venues for workshop5 and productions. Grant5 and donations were slightly up on the last 12 months, essentially due to funding received for improvement5 to our sound equipment which was upgraded over the summer. We were however extremely disappointed that funding of over £90,000 awarded to us could not be claimed as we were not in a position to fulfil terms of the grant award due to our closure. Subscriptions and Membership rose to £79k and we were delighted that so many of our members remained with the company during such a difficult time. A large proportion of our incotlle this year arose from our Outreach projects which saw an income of over £50,000 for the company as we launched projects with prestigious partners such as the NSPCC, This level of income was welcome due to the income falls in so many other areas of the company such as productions, events, theatre hire and bar income. Membershi and Worl<sho We worked with 264 children and young people as part of our Performing Arts Workshop5 this year. Sessions were split over several different sites and it is a credit to the artistic team that so many members were attending despite the ongoing difficulties that the company faced. Forum Theatre The theatre was closed untll June '24 meaning only 18 events took place during the year September- August. We are lool<ing forward to welcoming our traditional partner5 for the coming 12 months as shows are postponed and re-arranged as opposed to cancelled. Page 2
FINANCIAL REVIEW Investment pollcy The charity places a ny surplus funds on deposlt i n a n interest bea ring ba nk account, Financial review and reserles The board of trustees a re respDnslble for the fina ncial management policies, Annual budgets are prepared and approved atthe commencementofeachyearand actual incomin8 and outgoing resources are monitored at regular intervals, The cha rity's funding stream is primarily subscriptions, sponsorship, grants and donations, bar taki ngs, show5 and theatre hire, Income fell significantly to £370.54512023- £773,661) with Expenditure at £494,14412023 - £760,283). Net loss for the year is £123,56912023 - £13,388 surpltjsl Unrestricted funds are £111,113 {2023 - £234,682) and the trustees accept that the company need to return to a surplus trading situation In the next financial year to enable the effective financia I management of its activities at their present level. Given the overall situation regarding the closure of The Forum for such a large period of time, such losses were predicted at the beginning of the year. It is also acknowledged that without the growth of our Outreach programme, developing key relationships with organisations such as The NSPCC in the process and the ongoing support of our members who remained loyal to the organisation, those losses would have been far greater. We also tha nk Stockport Council for find i ng the funding necessa ry to repair the public areas of the building, which allowed us to opErate events once again to see increase in income towards the end of the year. The Trustees would like to place on record their thanks to the staff and volunteers who have supported the company throughout this period of uncertainty. Page 3
N K THEATRE ARTS REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 PLANS FOR FUTURE PERIODS The board looks optimistically forward to the coming year with a busy prograrnme of events which should ensure a high level of turnover. We remain in discussion with Stocl<port MBC regarding the long-term future of The Forum Theatre which is key to the sustaina bility of our Charity. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document The charity is controlled by its governing document, a deed of trust, and constitutes an unincorporated charitv. Risks The trustees have identified the major risks that the charity may be exposed to in the next financial year and have established strategies to ma nage those risl<s. Page 4
N K THEATRE ART5 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 REFERENCE AND ADMINISTRATIVE DETAILS Reglstered Charity number 1049259 Principal address The Forum Theatre Compstall Road Romiley Stockport Cheshire SK6 4EA Trustees The Trustees who served durlng the year were as follows,. Stuart Dea n Icha irl Ann Wrigley (Vice Cha ir) Peter Curran (Secretary) Elizabeth Dunn Richard Hall Michael Lamont Wendy Meikle Leanne Thorniley Julian Stafford. The finances of the company are overseen by a Finance Committee comprising Stuart Dean, Michael Lamont and Darren Stannage. The day to day management of the Charity Is delegated by the charity trustees to Darren Stannage and the Managementteam. Approved by order of the board of trustees on and signed on its behalf by., S Dean {Chair of Trustee Board) Page 5
N K THEATRE ARTS STATEMENT OF TRUSTEES RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2024 The trustee5 are responsible for preparing the Trustee5' Report and the f inancial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the trustees to prepare financia I statements for each financial year whlch gives a true and fair view of the state of affa i rs of the cha rity and of it5 incoming resou rces and a pplication of resources for that period. In preparing these f i nancia I statements, the trustees are required to.. lal select suitable accounting policies and apply them consistently; Ib} observe the methods and principles in the cha rities SORP; Ic} make judgements and estimates that are reasonable and prudent; Id) state whether applicable accounting standards have been followed, Subject to any departures disclosed a nd expla ined in the fina ncial statements; lel prepa re the fi nancia I statements on a going concern basis unle5S It is inappropriate to presume that the charity wi I I continue in operation. The trustees are responsible for keeping accounting records that disclose with reasona ble accuracy at any time the f inancial position of the charity and them to ensure that the financial statements comply with the Charities Act 2011, the Charity IAccounts and Reports) Regulations and the provisions of the rules. They are also responsible for safeguarding the a55ets of the charity and hence for taking reasonable steps for the prevention and detection of fraud 8 nd other i rregularitie5. Page 5
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF N K THEATRE ARTS Independent examiner's report to the trustees of N K Theatre Arts I report to the charity trustees o n my examination of the accounts of N K Theatre Arts (the Trustl for the year ended 31 August 2024. Responsibilities and basis of report As the cha rity trustees of the Trust you are responsible fo r the preparation of the accounts in accordance with the req uirements of the Charities Act 20111'the Act'l. I report in respect Df my examination of the Trust's accounts carried out under section 145 of the Act and in ca rrying out my exarnination I have followed all applicable Directions given by the Cha rity Commission under section 14515llbl of the Act. Independent examlner's statement I have completed my examination. I confirm that no material matters have come to my attention in con nection with the examlnation giving me cause to believe that in any materia I respect: accounting records were not kept in respect of the Trust as required by section 130 of the Act,. Dr the accounts do not accord with those recDrds,' or the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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. I confirm that there are no other matters to which your attention should be drawn to enable a proper understanding of the accounts to be reached. D Wilson & Co 21, Charnwood Avenue Denton Manchester M34 2WY Date.. 2411/25 Page 7
N K THEATRE ARTS NOTES TO TNE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 ACCOUNTING POLICIES Basis of preparlng the financlal statements The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP IFRS 102} 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accorda nce with the Fi nancia l Reporting Standard a pplicable in the U K a nd Republic of I reland IFRS 1021 {effective l Ja nuary 20151,, Financia l Reporting Standa rd 102 'The Financia l Reporting Standa rd applicable in the UK and Republic of Ireland, and the Charities Act 2011. The financial statements have been prepared under the historica I cost convention. The charity has ta l<en advantage of the following disclosure exemptions in preparing these fln'ancial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,: the requirements of Section 7 Statement of Cash Flows; the requ irement of Section 3 Fina ncial Statement Presentation pa ragra ph 3.17ldl; the requirements of Section 11 Financial Instru ments paragraphs 11.41lbl, 11.41lcl, 11.41{el, 11.41{f), 11.42, 11,44,11.45, 11.47, 11.481allii il, 11.48{all',,I, 11.481 bl and 11.48lc); the requirement of Section 33 Related Party Disclosure paragraph 33.7. Incoming resources All i ncom ing resources a re included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracv. Contracts and grants are reflected in the accounts when receivable. Resources expended Expenditure has been charged to the income and expenditure account on the accruals basis. The irrecoverable element of VAT is included with the item of expense to whlch it relates. Cha ritable expend iture comprises these costs incurred by the charity in the delivery of its activities a nd services for its beneficiaries. It i ncludes both costs that ca n be allocated directly to such activities and those costs of an indirect nature necessary to support them. Governance costs include those costs associated with meeting the constitutional and statutory requirement5 of the charity and include the fees and costs linked to the strategic management of the charity. Page 8
Tanglble fixed assets Depreciation 15 provided at the following annual rates in order to wrlte off each asset over its estimated useful Ilfe. Land and buildings Plant and machinery Fixtures and fittings Stra ight line over 5 yea rs 200/0 reducing ba la nce basis IO¥o reducing ba lance basis Taxation The organisation is exempt from income tax by re350n of ils charitable status. Income tax suffered on investment income is reclaimed in full, Fund accountlng U n restricted funds can be used in accordance with the charitable objectives at the discretion of the trustees, Restricted fu nds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Fijrther explanation of the nature a nd purpose of each fund is included i n the notes to the financia slatements. Leasing comrni'tments Renta Is paid under operating leases are charged lo income on a straight line basis over the lease term. Penslon costs The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme a re cha rged to the Statement of Fina ncial Activlties in the period to which they relate. Page 9
N K THEATRE ARTS STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2024 Rèstriotèd Fijnds 2024 Unr8StriGted Funds 2024 Total Funds 2024 Total Funds 2023 Nots8 INCOMING RESOURCES Sponsorshlps Grants, donations and fundr3lslrrfJ Investment Incom In¢¢mtr r080urc8s from charflable acbvllles Other Incomg resDufc8S TOTAL INCOMING RESOURCES 4,171 48,427 4,171 48.427 2,408 298.935 16,804 370 545 2,2D4 39,398 1,832 704,189 26,048 773 671 298,935 16,604 RESOURCES EXPENDED Cost of gengrallng fund8 Overhèads in lurtheranc6 of Charliablo objoclivè5 Costs of activities in lurth8ranc8 01 ch8ritsblg objeclives Support and govemance costs Depreci£tion TOTAL RESOURCES EXPENDED 272,705 55,321 129,966 11,063 25,059 494114 272,705 55,321 129,966 11,063 25,059 494114 344,272 73,386 308,889 10,515 23,221 760,283 10 13 NET INCOME I IEXPENDrruREI 1123.5e91 1123,5891 13.388 RECONCILIATION OF FUNDS Tolal funds brought fOrard ConlrlbLrtlon Fund81¢ S8aling 234,682 234,682 221.294 TOTAL FUNDS CARRIED FORWARD 111,113 111,113 234,682 The not88 form part of these financial staiemenls Page10
N K THEATRE ARTS BALANCE SHEET AT 31 AUGUST 2024 2024 2Q23 Not85 FIXED ASSETS rangiblo assgls 13 88,8 79,670 CURRENT ASSETS Stocks Debtors Cash at bank and In hand 14 15 5,220 1,736 96,411 103,367 2,950 13,335 207,697 223,982 REDITORS Amounts falllng due wilhln one year 16 80.722 68 970 NET CURRENT ASSETS 22,648 155,D12 TOTAL ASSETS LESS CURRENT LIABILITIES 111 113 234 682 FUNDS Unr8slri¢led funds Rèstrlolgd funds 111,113 234,882 TOTAL FUNDS 111,113 234 682 Thè finsnclal slat8mènts w&re approved by the Trustees on 2411125 and wgr8 Signgd on Ih8lr behalf by: stuart D£an- Chair of Trustee Board Page 11
N K THEATRE ARTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 SPONSORSHIPS 2024 2023 Sponsorshlp Income- 1000 Club 4,171 2,204 GFiANTS, DQNATION5 AND FUNDRAtSlNG 2024 2023 Gr&nl$, donallons and fundralslng 48,427 39,389 INVESTMENT INCOME 2024 2023 Interest receiv8d 1,832 INCOME RESOURCES FROM CHARITABLE ACTIVITIES 2024 2023 Subscriptlons and m8rnberships Workshop8, shows and 8V8nts Theatre hi Extern81 Ticket Incorne Bar sales Merchandl8ing 79,853 97,476 4,427 87,900 28,739 540 298.935 71,700 126,836 27,258 329,017 148,072 1,306 704,189 OTHER INCOME RESOURCES 2024 2023 R8nt r8cèivèd- Café Managernent charges- BRCA Other Sundty Income 15.997 20.878 607 COSTS OF GENERATING FUNDS 2024 2023 staff salarles, natlonal ingurance and penslon costs Sell employed adminislralors Fr881ance praclilioners BRCA Costs Bar purchasgs Relre3hments Trav&lllng expenses 225,134 32,7é0 830 248,083 29,478 4,733 3,402 60,524 12,439 1,542 52 344,272 272,705 Page 12
N KTHEATRE ARTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 OVERHEAD8 IN FURTHERANCE OF CHARITABLE OBJECTIVES 2024 2023 Theatre hlre Gen6ral ratès Heal, light and water Training Repairs and equipment Cloaning Health and safety ctssts Telgphong gnd inlernel Sanitation and waste Sundry w8ns85 5,S47 10,994 21,e97 464 50,D63 4,081 11,039 534 858 1,681 3,443 787 73,386 6,375 753 1,289 2,983 5.203 80 COSTS OF ACTIVITIES IM FLIRTHERANCE OF CHARITABLE OBJECTIVES 2024 2023 Workshops, shows and event5 Extemal Promolor Exp$ M8rch3ndi$ing Publlcity and advertlslng Auditorium S83bng Prol8Ct Sale of Equipment Fundraising expenses 64,680 SS,5S2 728 4,144 62,571 234,643 895 4,435 6,345 308 889 129,966 10. SUPPORT AND GOVERNANCE COSTS 2024 2023 Insurances AGcounlancyfe?s Bank int8r&st and charg&s Credit card charg8S otrice Equuipnent Postage, prlnling and stationery Llc8nc$ fo¢s Bad dèbts 4,473 350 3,816 325 1,486 1.784 718 2,252 2,621 843 654 2,256 11,062 10,515 11. TRUSTEES. REMUNERATION ANO BENEFITS There was no Irusl¢es' remuneratlon pald in ye3r to 31 August 2024 IY.E. 31 August 2023 was nlll The wer8 no trust8es' expense5 paid for tha years ended 31 August 2024 8nd 31 Augus12023. 12. STAFF COSTS The average number of employaos during th• yèar was 2512023- 251, No employees r9]Ye emoluments in excess of £60,000. Page 13
N K THEATRE ARTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 13. TANGIBLE FIXEO ASSETS Land & Bulldlngg Plant & Equipment FlxtsJro$ & Flttln9S Total COST Al 1 S8Ptemb8r 2023 Addltlons Disposals Al 31 August 2Q24 216,710 33,855 103.733 320,443 33.855 250,565 1D3733 354,298 DEPRECIATION Al 1 Sgplember 2023 Charg& lor year Disposals Al 31 Augu312Q24 176,689 15,146 84,D83 9,912 240,772 25,058 191,836 265 830 NET BOOK VALUE At 31 August 2024 58,73D 88,468 Al 31 August 2023 40,021 79,671 14. STOCKS 2024 2023 Bar Morchandislng Ic8s 4,848 2,950 312 5,220 2,950 15. DEBTORS 2024 2023 Trade debtors Prepayment8 and accrued income Gift ald debtor 1,736 4,835 8,500 1,736 16. CREDITORS 2024 2023 Trade credltors Social security and oihertaxes Accruals and deferred income 67,136 3,747 59,758 3,887 5,325 80,722 17. RELATED PARTY DISCLOSURES There no rela19d party transacon$ for the year ended 31 August 2024 Page14