UNITY THEATRE INDEPENDENTLY EXAMINED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 March 2023 Company Number. 03333987 Charity Number. 1[2463 Unty Theatre 1 Hope Place Liverpool L198G Illlllllllll ACICMPGI4 1411212023 COMPANIES HryJSE
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UNITY THEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 TRUSTEES Mr L Clark Ms E Ethvards Mr D Fletcher Ms S Jones Ms A Marshall Mr G Millar Ms L Mconey M5 A Perera Mr D Sebuyange Ms G Buttoo (resigned February 2023) SECRETARY Ms E Manson-sawko (apwinted 6th t)ecember 2022) Ms R Palmer {resigned 6 December 2022) CHIEF EXECUTIVE OFFICER Mr G Millar REGISTERED OFFICE Unity Theatre 1 Hope Pla Liverpool L19BG COMPANY NUMBER 03333987 CHARITY NUMBER 1062463 BANKERS The Co-operative Bank INDEPENDENT EXAMINER Matthew Brown, CPFA Adding Value Consullancy Ltd studio 6. Bluecoat Chambers School Lane Liverpool L13BX
UNITYTHEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 CONTENTS Page Chairs Report Report of the Trustees 5-17 Independent Examinerfs Statement 18 Statement of Financial Activrties 19 Balan Sheet 20 Notes to the Accounts 21-29
UNITY THEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 CHAIR'S REPORT Reflectin9 on the last 12 months. l am incredibly proud of the hard work and commitment that has gone into ensurirvJ Unity's resilien in vthat has continued to be eXtmelY challenging circumstances. The economic crisis and long tail of the pandemic has had a crushing effect on many combined arts venues like our own. yet our eXP110nal1Y dedicated and skilled team of staff, freelanors and trustees have remained stea¢Jfast in their commitment in delivering on Unity's core charitable aims to benefit and enrith the lives of our local audien$. creatives and communities. Despite the challenges in the sedor. we have been able to deliver a diverse and exciting programme, that upholds crtjr value of promoting an accessible and supportive society. with a string of new successful projects and initiatives supporting our communrty in Liverpool. and beyond. HhlIghts of these ir)cluded the ever growng susS of our Youth Theatre in association with 20 Stones High, acclaimed national touring produdions. ¢prOduCtIonS with local companies and our critical partners Disabled Artist led festival. DadaFest, and Queer Arts Festival, Homotopia. Our Talent Develowient programme. 'Crealive Pool. funded by Esmée Fairbaim Foundation has proved rapidly successful desprte the devastats.ng impaGt of the pandemic upon touring crealive productions. The aim of the programme is to train crea.ves in producing skills $0 as to enable them to tour their work nationally. To date 85% of supported artists have embarked upon national tours. Our communrty arb.st programme Open Call again supported over 20 indtyidual companies. each receiving a guaranteed income. rehearsal space. technical support and mentoring from our team. All of these have had their work filmed so as to appear on Unity's sector leading 'ProPortal' database for venues lo programme work from. l am most pleased that we are the only known theatre to make all of their programme 100% accessible either through BSL interpretalion. captioning. audio description or streamed production. This is a commrtment we set OLrt to athieve two years ago and one we have steadfaslly held onto. I want to give personal thanks to Liz Edwards our fonner stand in Chair. who I sUCeded at Ihe 2022 AGM. Liz MaInS a valued member alongside other outstanding board members who make a signfficant contribution to Unty. I would like to extend my thanks to thern all for their increased their support as we navigate a financial mrtigalion plan, and new slrategy to ensure we strengthening our reputation as a national theatre with a safe arKI creative space to vrk. Unity could not survive without its Members arKI supporters, we are extremely gratefvl for your continued support and donations which has enabled us to build on our programme. I want to give particular thanks to those that have continued to fund Unity's work in an increasingly challenging environment, most signthcantty Arts Council Eng5and for their ontinued commitment to Unity's ambrtions for the future and regular fvnding and Cultural Recovery Funds. Liverpool Cty Counal. Esmée Fairt)aim Foundation, The Garfield Weston Foundation and The Granada Foundation. 31Page
UNITY THEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 Unity has a bright future ahead. The past two years have been the most economically drfficult we have sustsined, alongside many of our sector partners. But the board has develoFed a revolutionary and robust strategy, that will lead to an eGonomically stable future, that will best serve Liverpool's audiences, participants. communtties and artists. Sarah Jones Chair 41 Page
UNITY THEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 TRUSTEES REPORT The trustees present their report and finanal statements of the charity for the year ended 31 March 2023. The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply wilh the charity's memorandum and articles of association. the Companies Act 2006 and 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to chanb.es preparing their aount$ in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (as amended for accounting periods commencing from 1 January 20161" The charity is a Public Benefit Entity as defined by FRS 102. Oblecllves and activitSes The charitable objectNes are: 'To advance the education of the public in all aspects of the art of drama. dance. mime and music and to develop the public appreaation of such art and to provide and manage a theatre within the postal district of Liverpool without distinction of age. sex. race. political or religious or other opinions, by associating wth statutory aLrthoriti"es, voluntary organisations, institutions and inhabitants and to promote all or any objects for the benefit of the community which now or hereafter may be deemed by law to be charitable." Unity Theatre aims to= Advance the educ*i¢)n of the public in all aspects of the art of drama, dan. mime, and music. Provide and manage a theatre. to promote all other obj'ects for the benefit of the communty which now or hereafter may be deerned by law to be charitable. Our purpose is to share the stories of diverse individuals, working acros5 three core Providing high quality cTratbve experiences Developing and supporting local artists Platforming and celebrating local communities The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the chanty should undertake. Public benefit Unity exists for the communities of Liverpool diversity 15 part of our history and remains at th8 heart of our ambrtions to creale exlIent creatr¥e exFerIens. We have an industry- leading reputation for high-quality programming that is fully informed by the experien of our communities. Our approach to atIOn is dynamic and responsive. This in turn ensures relevancy for a broad range of audiences both in Merseyside and nationwide, who represent cultural, geographic. and SOCiOwecorK)mic dpiersity. 51Pa8e
UNITY THEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 TRUSTEES REPORT (continued) All of Unity's artistic offerings are designed in dose consumation with Merseyside creatNe communities. with strong feedback loops built in at all levels of planning. Close partnership work with organisations speoalising in diversity and access ensures that our aim to see 70 % of creatives involved in our programmes come from diverse backgrounds. is consistently met and exceeded. l•Ve remain committed to making our programme accessible to audienGes, through.. Low ticket pri$, with 15% given free via partners. supported by our online streaming platfom that allows anyone to access Unity wherever they live Develoyng integrated partnerships with those working with artists from diverse backgrounds A commitment lo 100% accessible productions inffrson (BSI- captionedlrelaxedlaudio-described) and online (captionedlaudio4escribed) Inlegrated community advocacy. running targeted adivty wrth key partners (TP Spider Project, IAfjrral, Knowsley Carers). The trustees have been consulted in compliance with the Charity Cornmi$sion guidance on public benefrt, in detennining the fees for perfomiances Achiavements and performance Unity remains integral to the communiti'es, artists, aUdIenS and partiupants of Liverpool. We have upheld our reputation as the region's leading combined performing arts organisation, promoting an accessible and supportive society- Post pandemic has left the sector is a stale of crisis. Unrty has not been immune to the challenges faced across the economy but is proving SI11enI and has adapted lo a new partnership model vthich will ensure thè future of the venue moving forward. Our creative programme welcomed aUdIenS to our building to celebrate diverse storytelling from talented companies from across the County. Creatives featured in our programme this year have included David Hoyle. Leo and Hyde. and numerous popular comedians that thallenge the status quo. With a sharp post pandemic dedine in national touring work. we had a greater emphasis on local artists. This was uple with collaboration wilh Liverpool-based acdaimed festivals Homotopia and DaDa Fest. We also collaborated on 20 Stories High's tounng production of. 'Touchy'. charting the joumey of six characters as they navigated young aduhood. which won the 2022 Oncomm Award "Acces5 and excellen for all rna1n the pillars of our operation and we continued a range of initiatives desgned to grow equalrty of opportunfy for artists and audnCeS.. 61Page
UNITY THEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 TRUSTEES REPORT Icontinued) 100% of our perfomiances. both in person and online, were made accessible through BSL interpretation arml captioning. This is a commitment we strive to continue as we welcome back full-capacity audiences to our building Gave 15Oh of our tickets away for free via communrty partners" 96% of those on our 'Community Ticket Programme, were first-time attendees Integraled communty advocacy a(Yoss our programmes, running tar9eted activity with key partners (The Spider Projed, Wrral, Knowsley Carers) We grew 'Unty Online., our digital performance attOrm which features all our locally produced work, filmed in our spaces. and hosted online to bring Merseyside talent to a national audience. 30%+ of those engaging with paid online content were from outside north-west England, and S+% were watching intemationally Our seGorKI 'Associate Producer, (funded by the Esmée Fairbaim Foundation) George Soave joined Unty in January 2022 and has been integral in building our programme of support for artists, as well as strengthening relationships with creatives and organisations across the city. Through Open Call. we ensured the continued support and sup4ival of 80+ local artists Working with Unty has bèen a revelation. They always go the extra mile to make theatre npore accessible to underseNed communities and we canl wait to come back to Merseyside.°_ Matt Wo¢>Jhead, LUNG INhilst the programme was still seriously hampered by Covid, the programme that emerged from the pandemic has matured and led to some excellent outwmes for artists. community members, audiences and participants.. Our annual Open Call season opened our stages to the very best perfOnanCe talent from across all six boroughs of Mefseyside Our long-term partnership wrth 20 Stories High co-provided their hugely successful Youth Thealre at Unity. inviting young people aged 14-21 to make plays Ihal mash up dance. spoken word. music. song. Stet dan and puppetry Together with RAWD, a company who shares our dedution to providing opportunities in the arts. we CO&provided a year rear-round weekly creative sessions for leaming disabled parts"cipants, leading to an annual perforrnar on our main stage Our talent development programme Creative Pool comprised over 120 workshops and events for creatives wants.ng to increase their woducing skills. These have ranged from 1'.1's held with our team and nefvrkIng sessions involving over 20 loGal producers. Over 600 artists from across Metseyside have engaged so far, with 560 being new to the creative industry 71PaBe
UNITY THEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 TRUSTEES REPORT Icontinued) Provided ProPortal, our free-to-access online library of touring Yrk (Wise Children, Complicite, emerging companies) promoted to 200+ wogrammers nationwide IV&A Museum. Slung Low, Manchester Royal Exchange). Over the year, Creative Pool and ProPortal have directly supported over 20 tours including: Multidisaplinary artist Dorcas Seb's WI Versa (ttpproduced with HOME and Eclipse Theatre) Physical theatre company Ugly Bucket's Good Grief (supported by Slung L¢)w) Dance artist Fabiola Santana's A Home for Grief (CprodUCed with Contaci). The Impact of the economic downturn Despite an abundance of successful projects and initiatives to support our communrties, creatives, and audiences this period has continued to be an unprecedented thallenge off the back of the pandemic arKI the economic impact of higher costs and k)wer income experienced across many industries and households. We have attracted 45% fewer audiences as a resuft of the economic uncertainty. This is slowly rising. but the loss of licket income and secondary spend at the bar has been substantial. More noticeably, because other charities are facing significant drops in income, we are facing greater competition for attracting grants from Trusts and foundations than ever before arKd this has caused the largest dent to our funds. Such is the case that the board of Trustees has fashioned a new model to be more appealing Ixrt less lIant on Trusts and Foundations. and to grow audiences. through partnerships. Despite these challenges. the structural changes we had made in 2020 alongside our serves levels have allowed us to continue with our commitment to deliver a high-quality artistic experience and truly acSIble communty work that speaks lo the people of Liverpool. Our outsourced finance function continues to strengthen our work in this area. wrth current processes across budget setting. bookkeeping and payroll. More transparent finanGial reporting has allowed members of our team from across the business to feel mtjre empowered in making financial decisions, supported by robust checks and balances. IAle have had to adapt our business model in light on the last few years and are confident that our bu&ness model is fully sustainable. wrth the hard work put in plaGe over the last bNo years meaning that our reputation for presenting and SUPPOfting ground-breaking creative experiences only continues to grow. Imiat's more we a proud that this work has empowered a new generation of diverse Merseyside artists to develop ambitious work that tells their own unique stories. seen by an increasingly national audience. 81Page
UNITY THEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 TRUSTEES REPORT Icontinued) Ensurlng Financial and Business Sustsinability Unity's Board of Trustees meets quarterly with separate financial and risk management quarterly meetings. Our cuffent Chair, Sarah Jones, stsrted her tenure in 2022. replacing LE Edwards. who has remained a valued member of the board. Apart from a Commitlee Chair. memberslNp is rolling with all trustees attending lce annually at minimum to govem and interrogate the core operations. Addilional Wofking groups are formed when required (Major policy change, funding applications, business planning etc). FINANCIAL REVIEW Overvi•w Unity has a successful future ahead bui is temporarily experiencing financial challenges, alongside nearly every building-based arts organisation in the Gountry, this is due to continuing Unpcedented economic. societal and sector change. Resullantly, Unity will adapt 2023124 plans for a consKlered, Insng and sustainable model from 2024125 onwards. In the midst of ongoing unprecedented economic times. Unity. like many organisations has suffered serious finanoal setbacks. Unity ended the 2022123 finanual year with an unrestricted general fund deficit of £40.948. We are experiencing the challenges of radically increased-. o operats.ng costs production costs whilst simultaneously incorne is lower due to= haritable sector giving to venues of our scale has decreased o individual giving has decreased due to the cost crisis secorKlary spend has decreased due to the cost crisis o sector standstill ACE funding City wide reduction in Local Authority fvndirKJ. So. the board has dynamically reacted now to generate a new model fit for these economic times, to ensure we remain vilal and rekvant to participants. audiences and artists. We are capable of Ihis. We achieved it with our pandemic response to the extent that we were acknowledged as Liverpool City Region Cultural Organisation of the Year. We can achieve it again. Details of the plan are outlined in future plans below 91Page
UNITY THEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 TRUSTEES REPORT {Gontinued) Rlsk management The risks faced by the organisation are reviewed regularly throughout the year. A comprehensive risk lster encompassing all areas of the business is kept and upjated regularty by the CEO aThJ Executive Director and is scrutinised at every Risk and Compliance SUCoMMittee before going to Board each quarter. Our risk management policy is supported by wider organisational policies including finance. fundraising, HR. and safeguarding. Risk management is factored into all organisational decisions including business planning. art15tic programming, audit, finance management arKI commercial and fundraising opportunities. Risks are splrt into fve key categories." Artistic Reputation - induding consideration of Unty's standing within the sector regarding programming ar¢d participation activities" the continued understanding of trends in Ferformance and presentation,. the standard and risks associated with artistic partnerships. Flnanclal Dlverslty - induding the range and variety of income streams coming into the organisation.. Unity's relationships with key funders,. strength of financial controls.. progress against reserves policy; extemal factors such as current govemment policy. Audience Development- considering qualty of communications and strength of brand., strength of engagement with current audien and participants.. size and growlh of engaged database: audience engagement in the face of extemal factors such as the pandemic and a cost-of-living crisis. Staffing and Governance- including regular review of expertise held within Board of Trustees, Senior Management. and wider staff base. staff retention rates., review of diversity of Board and stsff team ensuring they refiect organisation equality and diversty policies. Organisational - encompassing wider business considerations such as health and safety and data managemenL Principal funding sources Key fvnders for our core activity in the period were Arts Council England and Liverpool City Council. We have secured funding from the Esmée Fairbaim Foundation to support the development of our Creative 'Pool talent develownent tKogramme untsl December 2023. IOIPage
UNITYTHEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 TRUSTEES REPORT (continued) The Senior Management team are working to further diversify our income streams in the coming year through private fundraising and commercial opportunities. Invoslment pollcy and review Due to the current percentage of income reIVed from ststutory sources and fundraising, the appetite for investment risk is judged as low. This appetite is reviewed annually by the Board and may change as incorne streams continue to diversify. All future investments will be agreed beeen the ADICEO and Chair of Finance Committee. signed off at Board level. Unity cuffently holds all funds in accounts connected wrth HSBC, split between standard Cuent accounts and a deposrt account. To aid with petty cash spending. the leam have introduced purchasing cards to key budget holders., individual debit cards have a fixed monthly spend cap, imbursed frorn the aniSatIon.S main bank account. Rtserves Unity has sel a tar for free reserves (unrestrided funds not invested in fixed assets or otheNise designated) for the charty of 12 weeks operating costs, judged to be £103k. This takes account of the funding and trading environment in which the chanty operates. and of its stralegic plans. The unprecedented circurnsiances of 2020 - 2023 . wtth the sector crisis and ongoing fragility of the economy. have been severely challenging to trade in. As of March 2023, free resep4es were at a deficit level of £40.948 equivalent to 40.10 of the target level. Going concern These financial statements have been prepare on a going COnM basis. Unity has a successful future ahead bui has experienced considerable financial challenges. due to continuing. unprecedented economic, social and sector change. The sector is experiencing an existential crisis unlike any in memory. Unty no longer has reserves, is in a deficit position and would be at risk were it to have continued with a previously successful but now defunct operating model. So, the trustees have reacted dynamically to build back reserves by.. Undertaking a financial mitigation plan Reducing overheads to sustainable levels Shaping a programme model that is" o not reliant on Trusts and Foundation bui rather partnerships. whbch have been secured Can fiex up or down Seeking working capital to assist with the cashflow Acquiring funds to cover essential building works Unity retains sizeable funding arKI support from Arts Council EnglarKI and Liverpool Crty Council. IIIPage
UNITY THEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 TRUSTEES REPORT {continued) The Trustees have considered the level of deficit held and the expected level of income and expenditure for the twelve months from authorising these accounts. The Trustees assess the charrty to be a going concem based on review of financial performance of the 23124 year to date, the management accounts forecast for the remainder of 23124. the rolling cash fl¢)w forecast. future funding commitments. the financtal mtligation plans, the levels of existing funding and the implementation of a sustainable mcwJel. As a result. the trustees are onfident about the financial fulure of the chanty and satisfied that these accounts and prepared on a going concem basis. FUTURE PLANS Our team and Board have interrogated a new model for implicalion in 2024 onwards that speaks to our core aims of-. Promoting an accessible and supportNe society through High quality creative exreriences Developing and supporting local artists Plaffomiing and celebrating local communities Ensuring financial arKI organisation viabilty- To achieve this the Board believe a new model is required that still delivers on the aims of our core fundef. Arts Council England and Liverpool City Council but can attract new funding and unlock new possibilities across our aims. NEW MODEL The Board is most confident that the following new model delrvers financial certainty. is considerably more appealing to all those we already serve with distinction. and has capacity to benefit the lives of people we do not currently engage. For 24125 onwards, On exists'ng programming commitrnents have been honoured, Unity requires a new model. 24125 will be divided into 7 seasons, that are based on a theme, containing programme of 34 weeks each. Each 'season' will have various streams that would deliver all aspects of our programme. This model will deliver Unity's inclusNe, dIVee programme for audiènces, artists and participants, be sustainable from the outset. It will enable Unity to build bath a secure level of reserves. It combines aspects of our programme into fundable groupings. The model is dynamically flexible and allows Unty to deliver its programme but not over commit when finance is not available. It will not assume funding but will attract funding ahead of time. Unity's Output is appealing to fvnders. but the exists'ng model needs to change from sporadic and divergent programme to a collated model that matches funder reqLtirements in a competitive market. This model ean respond when new funds emerge. e.g.. City Council project funds or monies raised by the new Liverpool City Region Culture Network 121Page
UNITY THEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 TRUSTEES REPORT (continued) The work will be much more appealing and marketable to audiences and participants, with cross over opportunities throughout each season Ben seasons the venue is available to hire for commercial and community purposes. 24125 Flnancial Model Fixed Cosls Fixed Annual Income Arts Council England and Local Authority Commercial Income (nel of costs) Sub Total Amount £340.000 £50,0 £390.000 Flxed Annual Expenditure Operational and Salaries Sub Total Amount £351.CQO £351,000 Total £39,000" Yhe surplus would contribute to the rebuilding of reserves until such time as this is met. All costs of the programme would be secured through other income sources outlined below. 24125 Programme The creative programme will be six or seven seasons of three to four vekS each. focussing on a theme of importan. The streams will be.. Comblned Arts Our diverse and inclusive perfomance programme of lo1 and national touring work, onsrte, offsite and online Artists of the Future Comprised of local Children aThJ Young People, local Universittes. Open Call for tocal creatives and our producerftalent development programme °Creative Pool. Unity Community o This will provid8 opportunrties for the groups we rrentlY work wsth on a weekly basis to be deeper embedded in Ihe organisation by perfOing or programming or hosting workshops in each season. These groups are: RAWD (Dldeaf Disabled company) 20 Stories Hwh (with whom we partner on Youth Theatre) 131Page
UNITY THEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 TRUSTEES REPORT (continued) We Mll host community events around perfonan$ that encourage interaction belween dNergent groups. The annual cost of the programme would be £160,950. These costs would be covered by the f(Alowing income sources. Stream Annual I long temi Income One off grant I sponsorship £12,¢J)O Ticket Income Donations (in- venue l online) £1,200 Combined Arts Artists of thè Future cyp Higher Education Open Call Creative Pool Unity Community Community Experiences Dldeaf Disabled Programme Youth Theatre TOTAL £28,51XI £36,000 £1,500 £450 £450 £15.000 £3,750 £3.750 £3,gJO £450 £36.000 £3.250 £450 £6.500 £2,750 £450 £1.500 £32.250 £2.750 £37.900 £450 £3.900 £87,000 Annual l Long temi Income is in the Pro5$ of being completed through combination of HE funding and TrustslFoundations One off grants and sponsorship are in the process of being secured Ticket Income has been set conservatively in line wrth Current sales trends Donations in venue l online viill indude 'pay extra if you Gan, and the introdudion of digtsl donation stations in the venue 141Page
UNITY THEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 TRUSTEES REPORT Icontinued) STRUCTURE GOVERNANCE AND MANAGEMENT Governing document The charity is a company limited by guarantee govemed by its Memorandum and ArtiGles of Association dated 11 March 1997, as amended by special resolutions dated May 1 1997 and September 27 2016. It is a registered chartty with the Charity Commission. Members of the company The members of the company are the directors and any other persons or organisations adrnitted to membership by the directors. Currently the only members of the company are the directofs. Appointment of trustees The directors, who are the trustees of the charty. are appoinled by the members in general meeting. The Directors have the power to Co-opt to fill a casual vacancy and such persons hold office unts"I the next AGM. The directors are appointed inilially for a three-year term arKI are eligible for r&election for a second consecutive three-year term. In extraordinary circumstan5 a direGtor may be, with the Board's approval. appointed for a third onseGutive three-year term but not beyond that. Only retsring directors or those woposed by the Board are e1ible for election at the general meeting unless due notice has been given by a member of their Intent)n to propose someone. Trustee Induction and training All new Trustees receive an induction prior to stsrting their first tenn, led by a member of the Risk and Compliance Commrttee andlor Executive Director. This induction covers the history of the organisation. its current work and the rote and expectats.ons required of a Trustee. Shortly after the election of a new group of Trustees. a training session is arranged covering governance and current charity legislation. run by an extemal consultant. We have meaningfully improved dr¥ersty in the last 5 years, particularfy around disability arKJ cultural representation. and age has dropped significantly wrth ages spanning 2649- meaning lived experiences fully reflect our communrties. Though core skillsets of creative industry, HR. finance. fundraising and drtaI are all represenled, we prioritise curating a diverse range of viewpoints and experience, wrth our Chair creating a supportive culture to aid collective problem-sotving. 151Page
UNITY THEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 TRUSTEES REPORT (continued) Oryanisallon The Board, which musl be no less than three and not rn0 than 15 peopte. meets as required and nornially 4 times per year. Day to day management of the charity is delegated lo Ihe Chief Executive and the other members of the Senior management team who together with diredors constrtute the key management personnel of the charity. Pay and remuneration for senlor staff All roles are formally reviewed prior lo each vacancy being advertised. wifft adjustments made to ensure our Structure meet5 the business. current and future needs. ere there is a vacancy in our senior team. pay and remuneration packages are benchmarked against a minimum of three regional peer venues arKI advertised within a range to remain competitive. Staff pay at all levels of the organisation is reviewed annualFy to achieve fair salary bands and avoid discrimination. Co-operation with other organisationslcharities Unity is regularfy fvnded by Arts Council England and Liverpool City Council. Across our neorkS Y foster a commÈtment to divetsty and the employment of local creatives within communrties. Wle are core members of the Liverpool Arts Regeneration Consortium and Shift sustainatxlity network, plus Big Imaginations, Dan Consortium Northwest and Venues North. Regular local creative partners indude Homotopia. DaDa Fesl and 20 Storie5 High. We work closely with LiverpooS's Everyman and Playhouse and Royal Court to strenglhen the rity's CatiVe ecology. 161Page
UNITY THEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 ststement of Trustees, Responsibilities The trustees, who are also the 1ClOrS of Unrty Theatre for the purpose 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 which give a true and fair view of the state of affairs of the charrty and of the incoming resources and appliCatn of sources, induding the in¢(xne and expenditure, of the charitable company for that year. In preparing these financial statements, the trustees are required to.. select suitable accounting wlicies and then apply them consistently.. - observe the methods and principles in the Charities SORP.. - make judgements and estimates that are reasonable and prudent.. -state whether applicable UK Accounting Standards have been folbwed, subject to any material departures disck)sed and explained in the financial statements,. and prepare the financial statements on the going concem basis unless it is inappropriate to PsUme that Ihe charity will continue in operakn'on. The trustees are responsible for keeping adequate accounting records that disclose wilh reasonable aGwracy at any time the financial FQSition of the tharity and enable them to ensure that the financial stslements comply with the Companies Act 2006_ They are also responsible for safeguarding the assets of the charty and hence for takn.ng reasonable steps for the pventIon and detection of fraud and other irregularities. Small company provisions This report ha5 been prepared in accordance with the special provisions relating to srnall companies within Part 15 of the Companies Acl 2006. The trustees. report was approved by the Board of Tmstees. ones Trustee 171Page
UNITYTHEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES I report to the trustees on our examination of the accounts for the year ended 31 March 2023. Responsibilities and basis of report As the charity trustees of the Trust you are responsible for the weparation of the accounts in accordance with the requirements of the Charities Act 2011 (Ihe Act.) The trustees consider that an audit is not required for this year under section 144{2} of the Act and that an independent examination is needed. I report in respect of my examination of the Trust's accounts camed out under section 145 of the Art and in carrying out my examination I have followed all the applicable Directions gNen by the Charity Commission under section 145(51(b) of the Act. Independent examinevs statement I have completed my examination. I confimi that no matenal matters have come to my attention in Gonnertion with the examination giving me cause to lieve that in any material respecl. . accounting records were n(A kept in respect of the Trust as required by SeCtn 130 of the Act.. or 2. the accounts do not accord wth those records.. or 3. the accounts do not comply with Ihe applicable requirements conceming the form and conlent of accounts set out in the Charities (Accounts and Reports} Regulations'2008 other than any requirement that the accounts give a and fair view which is not a matter considered as part of an irKleFendent examir)ation. I have no concems and have come across no other matters in connection wtlh the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Matthew Brown, CPFA Adding Value consuanCY Ltd Accountants and Finanaal Management Consultants D*e: 181Page
UNITYTHEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 STATEMENT OF FINANCIAL ACTIVITIES T•t•llw 1023 2023 2023 Oonètwlhs •hd lews a694 68.445 "24.7&5 77 384,814 6B.44S 24.?66 77 4JB.968 63HI 9J09 164 OiherTradir A¢ikdit Other Incw T•tal lTrr•n• 463.103 478.103 492m2 . Ralwo Fund# ChJriiJblEkttrdits 37.931 37.931 610.485 1&484 612.152 347.567 24563 3B.356 T•tsl W•nd*4re 585.498 24J63 38.356 648.416 630.636 .112W51 P>.J56J . T[Sle¥S betY•een ILW)ds 14J20) ' 14•tlll•¥•lll•llllnknds jk2721$1 119.7431 1233561 11703111 1138.6141 Indban5 brj&hil0rwafrt 86J61 L741975 L894A 2.033.462 140J l714JJ2 1724sa4 The statement of financial activities includes all gains and losses recognised in the year. All income and.expenditure derive from continuing actiw'ties. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. 191Page
UNITY THEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 BALANCE SHEET AS AT 31 MARCH 2023 FIXEDASSETS Tan&ble Asseis 1,724.230 1.743.973 CURRENT ASSETS Stocks Debtors Cash at Bank and in harKI 1.647 26.123 57.158 84328 1.811 85.656 105,892 193.359 14 CREDITOILS ArrKJunts fallin8 wittsn0 year 84.6241 42,484 NET CURRENT ASSETS 150A75 TOTAL NET A55ET5 L72453S IiY,848 FUNDS Restricted Funds Unrestricted Fd5- deswated unStrICted Fun(ts- eeneral TOTAL FUN[6 41.250 1.724.232 140.9481 1.724,535 1,743,97S 86.267 1394.848 For Ihe year erKling 31 March 2023 the company was entitled to exempti¢)n under section 477 of the Companies Act relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. The directors acknowledge their responsibilrties for complying with the requirements of the Act with respect to accounting records and the preparalion of accounts. These accounts have been ppared in aCrdan wtth the provisions applicable to companies suty.ect lo the small cornpanies, regime. Approved by the board of trustees on and signed on their behalf.. Jones rustee Date:...... 2r £kw4. tot3 20IPage
UNITY THEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 NOTES TO THE ACCOUNTS 1. Accounting Policies Charity infomiation Theatre is a private company limited by guarantee incorporated in England and Wales. In the event of the chanty being wound up, the liability in respect of the guarantee is limrted to El per member of the charity. The registered office is 1 Hope Place. Liverpool. Ll 9BG. 1.1 Accounting Convenllon The account5 have been prepared in accordance with the chaiivs goveming document, the Companies Act 2006 and 'Accounts'ng and Reporting by Charities. Statement of Recommended Pradice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (a5 amended for accounting periods commenGing from 1 January 20161. The charity is a Public Benefit Entity as defined by FRS 102. The finanaal statements are prepared in sterlin9, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. 1.2 Going Concern At the time of approving the accounts and as detailed in the Trustees, report the Trustees have considered the recent economic environmental challenges on the charity and the TTUStees have a reasonable exFeclation that the chanty has adequate resources to continue in operational existence for the foreseeable fLrture. Thus. the Trustees continue to adopt the 'going concern. basis of accounting in preparing the accounts. 1.3 Charitable funds Unrestricted funds are available for use at the discretion of the trustees in furtherance of their tharitsble objeclives. Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in Ihe notes lo the financial statements. Restricted fvnds are suty'ect to SFecAfi¢ condrtions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. 211Page
UNITYTHEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 NOTES TO THE ACCOUNTS 1. Accounting Policies (continued) 1.4 Ineorne Income is recognised when the charity is legally entitied to li after any perfomiance conditions have been met. the amounts can be measured reliably, and. rt is probable that income be received. Cash donations are rerngnised on reipt. Other donations are recognised once the charity has been notified of the donation, unless perfOnan Condrtions require deferral of the amount. Income tax reGoverable in rdation to donations received under Gift "d or deeds of covenant is COgnIsed at the time of the donation. Legacies are cogniSed on receipt or otherwise rfthe charity has been notified of an impending distribution, the amount is knovm, and receipt is expecled. If the amount is not kn¢)wn, the legacy is treated as a contingent asset. Income from trading activities include5 income earned from fundraising events and trading activities to raise funds for the chanty. Income is received in exchange for supplying goods armd servi$ in order to raise fvnds and is recognised when entitlement has occurred. 1.5 Expenditure Expenditure is recognised once there is a legal or constructive otl9atIon to make a payment to a third party, it is probable that the settrnent will be required. and the amount of the obligation can be measured rellay. Expendrture is classified under the following activity headings= Costs of raising funds.. induding those assouated wilh fundrai8ing actNities. Charitable activities.. costs of undertaking the work of Charty. The Charity is registered for VAT and can recover all inpLrt tax charged. Costs are stated exclusive of VAT where tharged. Support costs are those that assist the work of the chanty but do not direcuy represent charitable activities and indude office costs, govemance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charlty and include project management &irried out at Headquarters. bltrere support costs cannot be direcily attributed to particular headings they have been allocated to cost of raising funds and expenditure on chantable activrties on a basis consistent with use of the resources 22 |Pège
UNITY THEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 NOTES TO THE ACCOUNTS 1. Accounting Policies Icontinued} 1.6 Tangible fixed assets Tangible fixed assets a initially measured at cost and subsequently rneasured at cost or valuab"on, nel of depreciation and any irnpairnent losses. Oepreciation is recognised so as to write off the (¥)st or valuation of assets less their fesidual values over their useful lives on the following bases.. Leasehold land arbd buildirrfJs Over the period of the lease Fixtures & fittings 25% straighl line basis Computers Over 7 years The gain or loss arising on the disposal of an asset is detemiined as the difference between the sale proceeds and the carying value of the asset and is recogntsed in net incomel(expenditure) for the year. 1.7. Impaimient of fixed assets At each rewting end date. the charty revMvs the carying am¢)unts of fls tangible assets to determine whether the is any indication that those assets have suffered an impaimient loss. If any such indication exists. the recoverable amount of the asset is estimated in order to detemine the extent of the impaimient loss (rf any)- 1.8. Sto¢ks Stocks are stated at the lower of cost and ests'mated selling price less Gosts to complete and sell. Cosl comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the loVr of replacement cost and cost. Net realisable value is the estimated selling price less all estimaled costs of completion and costs to be incurred in markeling. selling and distribLrtion. 1.9. Cash and cash oquivalents Cash and cash equivalents indude cash in harKI. deposits held at call with banks. and bank ovefdrafts. Bank overdrafts are shown wrthin borrwingS in Current liabilrties. 1.10 Financial instruments The charity has elected to apply the provisions of Section 1 1 'Basic Finala1 Instwments. and Section 12 '0ther Financial Instruments Issues. ot FRS 102 to all of its financial instruments. Financial instruments are reMgnised in the chanty's balance sheet when the charity becomes party to the contractual provisions of the instrument. 231Page
UNITY THEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 NOTES TO THE ACCOUNTS 1. Accounting Policies (contlnued) Financial assets and liabilities are offset, with the net amounts presented in the financial statements. when there is a legally enforable tight to set off the recognised amounts arKI there is an intention to settle on a net basis or to realise the asset and setue the liabilty simultaneously. Derecognrfion of financial liabilities Financial liabilities are derecognised when the tharity's Gontradual obligati¢)ns expire or are discharged or cancelled. 1.11 Employee bonefits When employees have rendered services to the charity. short temi employee benefits to vthiGh the employees are entrtled are recognised at the undiscounled amount expected to be paid in exchange for that service. 2 Critical accounting estimates and judgements In the application of the chanty's accounts'ng policies. the trustees are required to make judgements, estimates and assumptions atx)ut the carying amount of assets and liabilities that are not readily apparent from ¢)ther sources. The estimates and assoriated assumptions are based on historical experien and other faciors that are considered to be relevant. Actual results may drfFer from these ests"mates. The estimates arKI underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in vthich the estimate is revised where the revision affects only that period, or in the penod of the revision and future periods where the revision affects both current and future periods. 241Page
UNITY THEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 NOTES TO THE ACCOUNTS 3. Donations and legacies IW115 373.M• 4>4 375.] ArtIClEr Liwetyo¢llityctyry4.WP Cutturè5PEcovoryFund 271 271.r IL244 ty) .4J&m6 4. Charitsble activilies Lknre5trktEd T+xal Funds FdS F5 BDXOHI Illary HO5tIl5S 43JW& 25385 68.M5 43J 25J85 6&445 43.437 20.244 63.681 43.437 20.244 63.681 S Other trading activities Unrestricted funds general 2023 Unrestricted funds general 2022 Trading actswty Income 24.766 9,209 Included within these balances are commercial hire sales income for £24,566 (2022.. £8,627). 251Page
UNITYTHEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 NOTES TO THE ACCOUNTS 6 Other Income Unrestricted Unrestricted funds fund5 general general 2023 2022 Other Income 7 Raising Funds Uniestiicted nds Unrestrided funds general 2022 2023 OiredC05ts Support Cosls Fundraiwnv PMDDiJty 9.933 27.998 37.931 3.75S 14.729 8 Charitable activilies Totsl tre Totsl ThEatre Fund5 Fwds X+23 20 5talFcosts Dlrectcosts 19.15 14.527 33.SlZ 221.733 91.503 313.316 212.577 133A03 345BO 77.056 279.701 ShDreoFsupportC05ts (set note91 Share oFKty4ernan¢tcosts Ix¢ n¥*91 24.563 4.744 29).1 234,7>) 31.532 Z66,3ZZ $47567 24563 3B.356 610,415 261Page
UNITYTHEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 NOTES TO THE ACCOUNTS 9 Support costs Costs 2023 C05 2022 sr•llC¢srs 01.910 24.563 12.2)) 81,940 .24,563 12.233 68.967 30.174 5.571 72.751 30.322 10.228 8.495 10.942 3.118 30,174 5.571 72.751 srallrdaied¢ots ¥¥¥r Mathebr•J costs Sy5tern & Irb$ IhAuiane• Offire & other 5VgOrtM515 Banh & other¢harGes Trttstet Xpse5 7.498 12.791 450 7.49B 12,791 49) 8.49$ 10,912 3.118 8.762 B,762 29.415 I7 31A 1375 34.182 4.625 29.415 2,17 Le9al and wolesoThal 318 188 281 OD1 IndraI 27.938 297.170 -14.729 14.729 286.2n 2W.170 31. 249 S19 Governance costs includes payfflents for independent examination fees of £2.375 (2022: £4,500 for audit fees). 10 Trustees and related party transactions None of the Irustees (or any persons connecled wilh them) receNed any renumeration durtng the year for their role as trustee. Trustees were reimbursed for expenses to the value of £260 during the year {2022-. £189) The key management of the charity comprise of the tristees and senior staff. The renumeration of key management personnel is as follows: 2023 2022 Aggregate remuneratson 108 052 127028 On February 4th 2020 the Chied Executive Officer G Millar was appointed as a trustee and director of the company. He did not receive any remuneration for acting as a trustee. His employment benefits in the year We £51.555 (2022.. £53.618) 271Page
UNITY THEATRE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023 NOTES TO THE ACCOUNTS 11 Employees The Average monthly.number of emptoyees during the year was: 2023 Number 2022 Nufflber Average no. of employee5 25 27 2022 2021 Employment cimts Wages and salaries Socia] security costs Other pension eosls 248.429 21.854 6.372 276.655 328,319 22,T13 5.480 356.ST2 There were no employ8es whose annual rellum8ration was £60.000 or moT•. 12 Tanglble fixed assets land and". .buildingS' .FlxDire5 and * D¥r *'fvi.1 ppril 2022-: jAd'd.0n$ s.At 1 April 2023.. . 2,057,677 262,470 2,329.097 ' 2,057 677 267 290 ¥.8 950 2,333 917 Depreciation ond impairnient .ri1 2022 i Depreciation'ciiarged.forlhe yeaF- 5"At 31 Marcii 2023; 321,960:. 201,885 ..585.i24-. 4.341537.: 262.888 4.262 .,609.687,. Carrying amollnt", IAt 31 March.2023= 1.715.140 1-.724,230 At 31".M8ieh'2022": ,1.735.717 .7.671 ,1.743.973 . 13 Stocks 2023 2022 Finistied goods and goods for sale 1,647 1,995 281Page
UNITY THEATRE ACCOUNTS FOR THE YEAR ENDED 31 hlARCH 2023 NOTES TO THE ACCOUNTS 14 Debtors 2023 2022 Amounts falllng due *lthln one year. Trade debtors Other debtors Prepayments and accrued Incon 9.046 17,077 26.123 83.367 85.656 15 Creditors: amounts falling due within one year 2023 20 othertaxab.on and soaal seajnty Tra(fe Credrtors Other CreOrtors Accwals and deferred income 21.620 59504 910 2.5Bg 84,624 9302 12243 20,939 42,484 16 Regtricted Funds 31 klarEh 2•2¥ al.21Q 10210 E(JiF2 15X 41 12Q Esme Fairbaim Foundation.. This funds "Creatwe Pool.. Unty's programme for development of uealive opportunities. The trustees have agreed to fund part of the expenses from the general fund. Culture Liverpool.. The Cutture Liverpool Grant vms to deliver the Eurovision programme in May 2023. where Unty hosted perfomances from Ukranian artists. 17 Analysis of net assets between funds Fund balances at 31 March 2023 are represented by: Tthal I.724) I.IZ4.2>J 1.74I9T3 I.74313 369 IT174 61W 1894846 291Page