COMPANY REGISTRATION NUMBER: 04101324 CHARITY REGISTRATION NUMBER: 1093556
Zion Arts Centre Limited (T/A Z-Arts) Company Limited by Guarantee Consolidated Financial Statements
31 March 2021
BEEVER AND STRUTHERS
Chartered accountant & statutory auditor St. George's House 215 - 219 Chester Road Manchester M15 4JE
Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Financial Statements
Year Ended 31 March 2021
| Pages | |
|---|---|
| Trustees' Annual Report (Incorporating the Director's Report) | 1 to 6 |
| Independent Auditor's Report to the Members | 7 to 10 |
| Consolidated Statement of Financial Activities | |
| (Including Income and Expenditure Account) | 11 |
| Consolidated Statement of Financial Position | 12 |
| Statement of Cash Flows | 13 |
| Notes to the Financial Statements | 14 to 28 |
Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report)
Year Ended 31 March 2021
The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the group for the year ended 31 March 2021.
Reference and Administrative Details
Registered charity name Zion Arts Centre Limited (T/A Z-Arts) Charity registration number 1093556 Company registration number 04101324 Principal office and registered 335 Stretford Road office Hulme Manchester M15 5ZA
The Trustees
S Armitage A Lone A Gill J Longmore (Resigned 09 December 2020) S Hiscock (Resigned 09 December 2020) I Cecil G Lister R Fox E Ransome E Rowles (Appointed 08 June 2020) F Bennett-Nielsen (Appointed 11 March 2021) L Green (Appointed 11 March 2021) N Noor (Appointed 11 March 2021)
Company Secretary Elizabeth O'Neill Auditor Beever and Struthers Chartered accountant & statutory auditor St. George's House 215 - 219 Chester Road Manchester M15 4JE Bankers CAF Bank 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ Solicitors DWF LLP 5 Castle Street Liverpool L2 4XE
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Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 March 2021
Structure, Governance and Management
Governing document
The charity is a company limited by guarantee and is governed by its Memorandum and Articles of Association dated 2nd November 2000 and as amended by two special resolutions dated 5[th] August 2010 and 15[th] March 2016. It is registered as a charity with the Charity Commission.
Persons are admitted to membership by the unanimous approval of the existing members. Members may cease to be members of the company by serving notice of their intention to resign.
There are currently twelve members of the company, each of whom agrees to contribute a sum not exceeding £1 in the event of the charity being wound up.
Appointment of directors and trustees
The first directors of the company were appointed on incorporation. The directors, who are the trustees, have the power to appoint any person who is willing to be a director either to fill a vacancy or as an additional director. The number of directors should not be less than four or more than sixteen. In addition, Manchester City Council has the power to appoint one director, a City Director, for every three non-city directors subject to the upper limit on the size of the Board.
Following a resolution of the board in 2010, directors are appointed for a term of three years after which they may apply for re-election. No director may remain in office for more than two terms unless a serving director is elected as chair in which case he or she may serve for a maximum of three terms before stepping down. All other directors (except City Council appointed Directors) must step down after two terms for at least one year before they can be re-elected as directors. Directors may not be removed from office except if they are disqualified (under the company rules) from continuing to act, if they have been appointed for a fixed term that is expired or, if they are a nominee of Manchester City Council if the Council resolves to remove them. The directors have no beneficial interest in the company and are not remunerated for any of the services they provide as directors of the company.
Related parties
None of the trustees receive remuneration or any other benefits from their trusteeship. Each year trustees complete a Conflict of Interest Statement and a Declaration of Commitment Statement. Any connection between a trustee or a senior manager and a company, institution or artist that Z-arts engages with must be stated in this form, or at a meeting if it occurs during the year. In this year we have appointed four new trustees including Cllr Emily Rowles, appointed by Manchester City Council, who lease the building to Z-arts and provide strategic core funding. Cllr Rowles also sits on the board of One Manchester.
Objectives and Activities
The charity's objectives are: -
To promote, maintain, improve, develop and advance public education and training in the arts for the benefit of, but not limited to, young people, by operating a centre for the presentation for the public of music, opera, dance, drama, the visual arts, films, video, multimedia, sound, exhibitions of all kinds as are conducive to the promotion, maintenance, improvement and participation in and advancement of education or to the encouragement of the arts, whether on premises owned or leased by the Company or elsewhere.
The Charity's main activities are: -
- The promotion and facilitation of arts events and activities for children, young people and families.
In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance on public benefit and fee charging. The charity relies on the voluntary services of the trustees, and on grants and the income from fees and charges to cover its operating costs. In setting the level of fees and charges the trustees give consideration to the accessibility to activities for those on low income.
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Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 March 2021
Achievements and Performance
Z-arts offer in 2020/21 was predominantly moved online, with the building being closed due to the Covid-19 pandemic, following government restrictions, except for opening for five weeks for small socially distanced participation classes in the autumn, between lockdowns (note, Manchester had an additional lockdown in autumn 2020, compared to much of the rest of England). We were unable to open or provide classes again until April 2021.
Participation activities were offered online to all families who regularly attend Z-arts, as well as reaching more from further afield due to the lack of geographical restrictions. Over the course of the year over 16,000 people interacted with over 600 online activities, and we promoted 19 performances online with 1,182 audience interactions. We prioritised our support for independent artists, commissioning 17 new piece of theatre for young audiences and supporting 18 artists making new work for children in total. The Levi’s studio sponsorship from 2017/18 continued, enabling the organisation to run additional digital music programmes for young people alongside its regular activities.
2020 /2021 was Z-arts third year as an Arts Council England (ACE) Band 2 National Portfolio (NPO), (£255,000 p/a). This funding was guaranteed and extended until April 2023 due to the pandemic.
Core funding from Manchester City Council (MCC) has also been extended until April 2022, and a second term of two-year core funding from Greater Manchester Combined Authorities (GMCA) was also agreed. Government support from the Job Retention Scheme safeguarded 83% of jobs. This support, along with funding from the DCMA Culture Recovery Fund, sustains the long-term financial stability for the organisation.
Despite the pandemic, 2020/21 has strengthened Z-arts role as a national leader in creative practice for children and families. Alongside leading the Manchester Family Arts Network, which has twenty members throughout the city and the region-wide Big Imaginations network of twenty-one venues across the North West and Yorkshire who share a commitment to bringing brilliant children’s theatre to the region; this year has seen a growth in activity for MADE, the Manchester Cultural Education Partnership which officially launched one week before lockdown in March 2020. Managed as a Z-arts project, this partnership worked with 15 schools and 23 cultural organisations who make up the core partnership, delivering 27 participation projects and reaching hundreds of local young people.
Z-arts mission to make a difference to the lives of some of the most disadvantaged children in Manchester was even more urgent during the pandemic, and we used digital activity as well as creating Creative Care packs and working with Manchester Food Banks to reach some of the most disadvantaged children and young people in the city, thereby improving their lives through increasing their mental and physical health and well-being.
Covid secure measures and building improvements
Z-arts have undertaken a number of measures to ensure that visitors to the building can return as safely as possible.
We have installed mechanical ventilation in the exhibition space and also revealed and restored some large windows to allow for natural ventilation. We have invested in a new environmentally friendly cleaning system (toucan eco) which enables us to clean spaces in a way that is safe for children and environmentally friendly. We have installed hand sanitisers around the building, screens at box office and introduced a keep left system to allow visitors to move around the building safely and we have invested circa £90k in a new toilet block with individual cubicles (to be completed July 21)
Terms of occupation and sub-letting of premises
The company occupies premises owned by Manchester City Council. The company has benefited from its occupation through its own use of the premises and through sub-letting part of the premises. We provide an affordable base for emerging artists and Creative SMEs to base themselves and produce new work. Our primary tenant is Sustained Theatre Up North (STUN) who inhabit our studio theatre on a ten-year sub-lease, supported by Arts Council England, until 1[st] November 2023.
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Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 March 2021
Financial Review
The company has experienced a positive year financially, seeing total funds increase by 42% to £815,008 (2020: £573,458).
Total income fell by 13.5 % to £1,261,747 (2020: £1,458,944) . Donations and legacies increased as a result of ongoing support from Arts Council England, Manchester City Council and the GMCA along with support from the job retention scheme but earned income from box office, exhibition sales and venue hire fell to almost zero as the building remained closed for most of the year due to covid restrictions.
Total expenditure fell by 23.5% to £1,020,198 (2020: £1,333,802) Operational costs were lower as a consequence of the building remaining closed for most of the period although there were additional costs associated with making necessary alterations to make the building covid secure for reopening. Activities costs were much lower in the year with many activities suspended, however, the funds for creative activities have been protected and will take place in the coming year.
The restricted funding for the new theatre seats (purchased primarily through restricted grants from Renaker build ltd and the Foyle foundation) has been transferred to unrestricted funding in the year. This is because the funding terms have now been met, allowing the Charity to use the theatre seats on an unrestricted basis for charitable purposes.
Principle Risks and Uncertainties
The trustees have a risk management strategy which comprises a regular review of the risks the Company may face, the establishment of systems and processes designed to mitigate those risks and the implementation of procedures intended to minimise the impact on the Company should those risks materialise. This risk strategy has been updated to take account of the pandemic and is reviewed on a quarterly basis at board level.
This review has identified that financial sustainability could be an issue if another incident like the pandemic were to occur, as well as the previously identified risks such as if the Company lost one of its key income streams. Consequently, the Company has increased its contingency reserve to 8 weeks turnover, should the business no longer be viable (see ‘Reserves Policy’ below). Attention has also been focussed on non-financial risks, including building repairs and maintenance, which potentially impact the use of the building for revenue generating activities.
Whilst the Coronavirus pandemic resulted in the closure of the building and the associated loss of revenue, the Company has utilised all possible funding opportunities to ensure that we can continue to operate as a Going Concern.
Going Concern
Despite the impact of the Coronavirus pandemic on the 2020/ 21 operating plan, we have been able to continue to deliver to our objectives by moving all participation activities online, thereby reaching more people, as well as delivering craft packs to families by post and through food banks. During closure we have prioritized improving safety measures in the building, so that we were ready to reopen when government guidelines allowed.
The continued support of Arts Council England through NPO funding, MCC through its revenue grant funding and continued GMCA funding both this year and next, along with the Job Retention Scheme, backed by our current conservative budgeting and forecasting and substantial reserves has enabled us to maintain cashflow. After carefully considering the Company’s financial position and prospects, the trustees have concluded that it is appropriate to adopt the going concern basis of preparation.
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Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 March 2021
Reserves Policy
Z-arts has been well supported through the pandemic by both the arts council and MCC, however we cannot assume such a level of support should a similar unforeseen situation arise. As a consequence, we have decided to increase the reserves target to aim for a free reserves figure equal to 8 to 12 weeks pre pandemic turnover which will provide greater financial resilience moving forward. 8 weeks pre pandemic turnover is calculated at £224,452 based on the previous years turnover.
Having reached our free reserves target, 50% of any additional unrestricted reserves will be allocated to a future capital project. A maximum of 20% surplus unallocated reserves will go towards staff incentive and retention schemes to help retain key staff. 30% will remain in unrestricted reserves for future creative projects, building maintenance, technical, youth-led projects.
At the end of the current financial year Z-arts free reserves stand at £256,239, £31,787 over the free reserves target. Of the year-end free reserves some of this has already been committed to capital spend on a new covid secure toilet block.
Despite the current uncertain economic environment, Z-arts continues to prioritise diversifying its funding streams through earned income, public bodies and private sponsorship to reduce reliance on any single source of income.
Plans for Future Periods
Z-arts have created a new business plan for 2021/22, entitled “To rebuild, restore and refresh, with a focus on well-being and family-togetherness”. 2021/22 is a year in which to recover from the pandemic, research new models and rebuild the organisation for a new, sustainable and viable future.
Z-arts is widely acknowledged for the role it plays as a major contributor to the recovery of the cultural sector, by providing training and development for children, young people, and artists at the start of their career.
Taking the successes of the last year ten years operation, the learnings and the positives from a year of lockdown and online delivery, and time to understand the changes in our operational landscape, we will use this year to rebuild our programme, restore audiences and participants, refresh our operations by trialling new business models, new artist-led programmes and income generation activities.
In 2020 we identified areas of need in the creative sector, and where we are best placed to support the sector’s growth; building on our track record of nurturing creativity in young people and refining how we support creative facilitators, as the next generation of artists.
2022 will see further testing and implementation of new business models, a revitalised website to reflect new focus areas, ready to be embedded into the 2023/26 Strategic Plan.
Meanwhile, core activities have restarted, including the partnership with Discover Children’s Story Centre in London, which brings Z-arts an immersive exhibition for children each year. “Tiger & Mog” is now extended until February 2022, and we have two family offers for Christmas, as well as plans to extend opening hours to include Sundays. A “Summer of play” will take place across the summer holidays with four separate outside family events and our diverse and exciting children’s theatre programme will restart in September.
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Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 March 2021
Trustees' Responsibilities Statement
The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.
In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently.
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observe the methods and principles in the applicable Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a trustee at the date of approval of this report confirms that:
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so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and
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they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
Small Company Provisions
This report has been prepared in accordance with the provisions applicable to companies entitled to the small company’s exemption.
The trustees' annual report was approved on 31 August 2021 and signed on behalf of the board of trustees by:
Graham Lister Trustee
Elizabeth O'Neill Company Secretary
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Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Independent Auditor's Report to the Members of Zion Arts Centre Limited (T/A Z- Arts)
Year ended 31 March 2021
Opinion
We have audited the group and the parent charity group financial statements of Zion Arts Centre Limited (T/A Z-Arts) (the ‘charity’) for the year ended 31 March 2021 which comprise the consolidated statement of financial activities, the consolidated and charity statement of financial position, the consolidated and charity statement of cash flows and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the group’s and of the charitable company’s affairs as at 31 March 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for Opinion
We conducted our audit in accordance with International Standards on auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions Relating to Going Concern
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
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Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Independent Auditor's Report to the Members of Zion Arts Centre Limited (T/A Z-
Arts) (continued)
Year ended 31 March 2021
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees (who are also the directors of the group and parent charitable company for the purposes of company law) are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on Other Matters Prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the trustees' report, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the trustees’ report has been prepared in accordance with applicable legal requirements.
Matters on Which We are Required to Report by Exception
In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
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the parent charitable company financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees’ remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
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the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.
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Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Independent Auditor's Report to the Members of Zion Arts Centre Limited (T/A Z-
Arts) (continued)
Year ended 31 March 2021
Responsibilities of Trustees
As explained more fully in the Trustees' Responsibilities Statement set out on page 6, the trustees (who are also the directors of the group and parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:
The extent to which the audit was considered capable of detecting irregularities including fraud
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:
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We obtained an understanding of laws, regulations and guidance that affect the Charitable Company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws, regulations and guidance that we identified included the Companies Act 2006, tax legislation, health and safety legislation, and employment legislation.
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We enquired of the Trustees and reviewed correspondence and Trustee meeting minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed controls the Trustees have in place, where necessary, to ensure compliance.
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We gained an understanding of the controls that the Trustees have in place to prevent and detect fraud. We enquired of the Trustees about any incidences of fraud that had taken place during the accounting period.
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The risk of fraud and non-compliance with laws and regulations was discussed within the audit team and tests were planned and performed to address these risks.
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We reviewed financial statements disclosures and supporting documentation to assess compliance with relevant laws and regulations discussed above.
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We enquired of the Trustees about actual and potential litigation and claims.
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Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Independent Auditor's Report to the Members of Zion Arts Centre Limited (T/A Z-
Arts) (continued)
Year ended 31 March 2021
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We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud.
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In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report
Use of Our Report
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body for our audit work, for this report, or for the opinions we have formed.
Sue Hutchinson SENIOR STATUTORY AUDITOR
For and on behalf of Beever and Struthers, Statutory Auditor St. George’s House 215-219 Chester Road Manchester M15 4JE
Dated: 22 September 2021
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Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Consolidated Statement of Financial Activities (including income and expenditure account)
31 March 2021
| Unrestricted | Restricted | ||||
|---|---|---|---|---|---|
| funds | funds | Total funds | Total funds | ||
| 2021 | 2020 | ||||
| Note | £ | £ | £ | £ | |
| Income and endowments | |||||
| Donations and legacies | 5 | 797,070 | - | 797,070 | 577,355 |
| Charitable activities | 6 | 100,376 | 338,792 | 439,168 | 756,196 |
| Investment income | 7 | 1,348 | - | 1,348 | 2,489 |
| Trading activities | |||||
| Commercial trading operations | 8 | 24,161 | - | 24,161 | 122,904 |
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||
| 922,955 | 338,792 | 1,261,747 | 1,458,944 | ||
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| Expenditure | |||||
| Expenditure on charitable activities | 9,10 |
816,554 | 181,306 | 997,860 | 1,212,010 |
| Expenditure on raising funds: | |||||
| Commercial trading operations | 8 | 22,338 | - | 22,338 | 121,792 |
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| Total expenditure | 838,892════════════ |
181,306═════════ |
1,020,198════════════ |
1,333,802════════════ |
|
| Net income/(expenditure) and net | movement | ||||
| in funds | 84,064 | 157,486 | 241,550 | 125,142 | |
| Transfers between funds | 89,498 | (89,498) | - | - | |
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| Net movement in funds | 173,562 | 67,988 | 241,550 | ||
| Reconciliation of funds | |||||
| Total funds brought forward | 230,520 | 342,938 | 573,458 | 448,316 | |
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| Total funds carried forward | 404,082 | 410,926 | 815,008 | 573,458 | |
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The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 14 to 28 form part of these financial statements.
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Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Consolidated and Charity Statement of Financial Position
31 March 2021
| Group | Charity | ||||
|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | ||
| £ | £ | £ | £ | ||
| Fixed assets | |||||
| Tangible fixed assets | 15 | 232,202 | 261,615 | 231,227 | 259,731 |
| Investments | 16 | - | - | 100 | 100 |
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||
| 232,202 | 261,615 | 231,327 | 259,831 | ||
| Current assets | |||||
| Stocks | 17 | 1,855 | 4,890 | - | - |
| Debtors | 18 | 114,985 | 192,504 | 123,551 | 198,984 |
| Investments | 19 | 629,951 | 378,092 | 629,951 | 378,092 |
| Cash at bank and in hand | 19 | 100,918 | 64,533 | 93,695 | 59,643 |
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| 847,709 | 640,019 | 847,197 | 636,719 | ||
| Creditors: amounts falling due within | |||||
| one year | 20 | 264,903 | 328,176 | 264,753 | 323,566 |
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| Net current assets | 582,806 | 311,843 | 582,444 | 313,153 | |
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| Total assets less current liabilities | 815,008 | 573,458 | 813,770 | 572,984 | |
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| Net assets | 815,008 | 573,458 | 813,770 | 572,984 | |
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| Funds of the charity | |||||
| Restricted funds | 410,926 | 342,938 | 410,926 | 230,096 | |
| Unrestricted funds: | |||||
| General | 294,584 | 230,520 | 293,386 | 342,888 | |
| Spend on fixed assets | 109,498 | - | 109,498 | - | |
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───────── |
||
| Total charity funds | 21 | 815,008 | 573,458 | 813,810 | 572,984 |
═════════ |
═════════ |
═════════ |
═════════ |
The Trustees have prepared group accounts in accordance with Section 398 of the Companies Act 2006 and Section 138 of the Charities Act 2011. These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.
These financial statements were approved by the board of trustees and authorised for issue on ................... and are signed on behalf of the board by:
G Lister Trustee
The notes on pages 14 to 28 form part of these financial statements.
- 12 -
Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Statement of Cash Flows and Consolidated Statement of Cash Flows
Year ended 31 March 2021
| Group | Charity | ||||
|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | ||
| £ | £ | £ | £ | ||
| Cash flows from operating activities | |||||
| Net income/(expenditure) | 241,549 | 125,142 | 240,634 | 124,893 | |
| Adjustments for: | |||||
| Depreciation of tangible fixed assets | 56,913 | 45,296 | 56,005 | 44,434 | |
| Other interest receivable and similar income | (1,348) | (2,489) | (1,348) | (2,489) | |
| Changes in: | |||||
| Stocks | 3,035 | 2,357 | - | - | |
| Trade and other debtors | 77,519 | (38,298) | 75,583 | (37,025) | |
| Trade and other creditors | (63,273) | (110,157) | (58,813) | (108,849) | |
───────── |
──────── |
───────── |
──────── |
||
| Cash generated from operations | 314,395 | 21,851 | 312,063 | 20,964 | |
| Interest received | 1,348 | 2,489 | 1,348 | 2,489 | |
───────── |
──────── |
───────── |
───────── |
||
| Net cash used in operating activities | 315,743 | 24,340 | 313,410 | 23,453 | |
═════════ |
════════ |
═════════ |
════════ |
||
| Cash flows from investing activities | |||||
| Purchase of tangible assets | (27,499) | (127,431) | (27,499) | (126,865) | |
───────── |
───────── |
───────── |
───────── |
||
| Net cash used in investing activities | (27,499) | (127,431) | (27,499) | (126,865) | |
═════════ |
═════════ |
═════════ |
═════════ |
||
| Net decrease in cash and cash equivalents | 288,244 | (103,091) | 285,911 | (103,412) | |
| Cash and cash equivalents at beginning of year | 442,625 | 545,716 | 437,735 | 541,147 | |
───────── |
───────── |
───────── |
───────── |
||
| Cash and cash equivalents at end of year | 19 | 730,869 | 442,625 | 723,646 | 437,735 |
═════════ |
═════════ |
═════════ |
═════════ |
The notes on pages 14 to 28 form part of these financial statements.
- 13 -
Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Notes to the Financial Statements
Year ended 31 March 2021
1. General Information
The charity is a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 335 Stretford Road, Hulme, Manchester, M15 5ZA.
2. Statement of Compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Charities Act 2011.
3. Accounting Policies
Basis of Preparation
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Zion Arts Centre Limited (T/A Z-Arts) meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
Preparation of the accounts on a going concern basis
There are no material uncertainties about the charity's ability to continue, therefore, the accounts have been prepared on a going concern basis.
Going Concern
There are no material uncertainties about the charity's ability to continue.
Basis of Consolidation
The Statement of Financial Activities (SOFA) and balance sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.
The Charity has availed itself of Paragraph 4(1) of Schedule 1 of the Small Companies and Groups (Accounts and Directors’ Report) Regulations 2008 and adapted the Companies Act formats to reflect the special nature of the Charity’s activities. A separate Statement of Financial Activities and income and expenditure account for the Charity has not been presented because the Trust has taken advantage of the exemption afforded by Section 408 of the Companies Act 2006.
- 14 -
Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 March 2021
3. Accounting Policies (continued)
Fund Accounting
The charity has a number of restricted funds to account for in situations where a donor requires that a grant or donation must be spent on a particular purpose. All other funds are unrestricted income funds.
Designated funds are funds which have been allocated or designated for specific purposes by the company out of the unrestricted funds.
The funds held in each of these categories are disclosed in note 21.
Stock
Stocks are valued at the lower of cost or net realisable value, after making due allowance for obsolete or slow moving items.
Incoming Resources
All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
-
income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
-
legacy income is recognised when receipt is probable and entitlement is established.
-
income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
-
income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
Resources Expended
Expenditure is recognised when a liability in incurred.
Charitable activities include the expenditure associated with the operation of the charity, and include both the direct costs and support costs relating to these activities.
Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.
Support costs include the central functions that are not attributable to a single activity, rather providing the infrastructure that enables the activities to take place.
- 15 -
Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 March 2021
3. Accounting Policies (continued)
Tangible Assets
All fixed assets are initially recorded at cost. Any fixed assets costing less than £500 are not capitalised but written off to revenue in the year of acquisition.
Depreciation is provided on the cost of tangible fixed assets in order to write off the over the expected useful life of the assets life on a straight line basis.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery - 25% straight line Stun Studio - 10% straight line Static Equipment - 33% straight line
Investments
Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.
Financial Instruments
A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Debt instruments are subsequently measured at amortised cost.
4. Limited by Guarantee
The charity is a company limited by guarantee and is governed by its Memorandum and Articles of Association dated 2nd November 2000 and as amended by two special resolutions dated 5th August 2010 and 15th March 2016. It is registered as a charity with the Charity Commission.
Persons are admitted to membership by the unanimous approval of the existing members. Members may cease to be members of the company by serving notice of their intention to resign.
There are currently eleven members of the company, each of whom agrees to contribute a sum not exceeding £1 in the event of the charity being wound up.
.
- 16 -
Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 March 2021
5. Donations and Legacies - Charity
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2021 | |
| £ | £ | £ | |
| Donations | |||
| Monetary donations | 13,265 | - | 13,265 |
| Donation from Trading Subsidiary | 12,200 | - | 12,200 |
───────── |
─────── |
───────── |
|
| 25,465 | - | 25,465 | |
═════════ |
═══════ |
═════════ |
|
| Grants | |||
| Manchester City Council | 194,198 | - | 194,198 |
| Greater Manchester Combined Authority | 49,751 | - | 49,751 |
| Arts Council | 259,692 | - | 259,692 |
| Covid-19 furlough grant | 267,964 | - | 267,964 |
───────── |
─────── |
───────── |
|
| 771,605 | - | 771,605 | |
═════════ |
═══════ |
═════════ |
|
───────── |
─────── |
───────── |
|
| Total | 797,070 | - | 797,070 |
═════════ |
═══════ |
═════════ |
|
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2020 | |
| £ | £ | £ | |
| Donations | |||
| Monetary donations | 47,685 | - | 47,685 |
| Donation from Trading Subsidiary | 20,500 | - | 20,500 |
───────── |
─────── |
───────── |
|
| 68,185 | - | 68,185 | |
═════════ |
═══════ |
═════════ |
|
| Grants | |||
| Manchester City Council | 204,420 | - | 204,420 |
| Greater Manchester Combined Authority | 49,750 | - | 49,750 |
| Arts Council | 255,000 | - | 255,000 |
───────── |
───────── |
───────── |
|
| 509,170 | - | 509,170 | |
═════════ |
═════════ |
═════════ |
|
───────── |
─────── |
───────── |
|
| Total | 577,355 | - | 577,355 |
═════════ |
═══════ |
═════════ |
- 17 -
Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 March 2021
6. Charitable Activities
| Unrestricted | Restricted | Total Funds | ||
|---|---|---|---|---|
| Funds | Funds | 2021 | ||
| £ | £ | £ | ||
| Venue hire, shared BO and gallery | 4,930 | - | 4,930 | |
| Bar and catering sales | - | - | - | |
| Project grants | 47,247 | 338,792 | 386,039 | |
| Rents receivable | 48,199 | - | 48,199 | |
───────── |
───────── |
───────── |
||
| 100,376 | 338,792 | 439,168 | ||
═════════ |
═════════ |
═════════ |
||
| Unrestricted | Restricted | Total Funds | ||
| Funds | Funds | 2020 | ||
| £ | £ | £ | ||
| Venue hire, shared BO and gallery | 366,803 | - | 366,803 | |
| Bar and catering sales | 220 | – | 220 | |
| Project grants | 74,048 | 259,398 | 333,446 | |
| Rents receivable | 55,727 | – | 55,727 | |
───────── |
───────── |
───────── |
||
| 496,798 | 259,398 | 756,196 | ||
═════════ |
═════════ |
═════════ |
||
| Investment Income - Charity | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Bank interest receivable | 1,348 | 1,348 | 2,489 | 2,489 |
═══════ |
═══════ |
═══════ |
═══════ |
7. Investment Income - Charity
8. Commercial Trading Operations
Commercial trading operations relates to the trading subsidiary company Z-Arts Trading Limited, company number 8468095. The profit during the year ended 31 March 2021 was £1,823 (2020: £250).
- 18 -
Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 March 2021
9. Expenditure on Charitable Activities by Fund Type
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2021 | |
| £ | £ | £ | |
| Salaries and employer's NIC | 523,980 | 33,097 | 557,077 |
| Activities costs | 97,983 | 96,056 | 194,039 |
| Other direct costs | 11,812 | 358 | 12,170 |
| Promotional costs | 12,705 | 1,239 | 13,944 |
| Training, recruitment, travel and motor | 2,766 | 85 | 2,851 |
| Professional fees | 2,873 | - | 2,873 |
| Bank charges and subscriptions | 3,401 | 20 | 3,421 |
| Property costs | 135,872 | 11,664 | 147,537 |
| Depreciation | 18,127 | 38,786 | 56,913 |
| Support costs | 7,035 | - | 7,035 |
───────── |
───────── |
──────────── |
|
| 816,554 | 181,306 | 997,860 | |
═════════ |
═════════ |
════════════ |
|
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2020 | |
| £ | £ | £ | |
| Salaries and employer's NIC | 518,055 | 58,023 | 576,078 |
| Activities costs | 286,991 | 62,312 | 349,303 |
| Other direct costs | 19,347 | - | 19,347 |
| Promotional costs | 29,714 | 59 | 29,773 |
| Training, recruitment, travel and motor | 15,930 | 1,358 | 17,288 |
| Professional fees | 5,096 | - | 5,096 |
| Bank charges and subscriptions | 6,687 | - | 6,687 |
| Property costs | 131,519 | 24,473 | 155,992 |
| Depreciation | 16,008 | 29,288 | 45,296 |
| Support costs | 7,150 | - | 7,150 |
───────── |
───────── |
──────────── |
|
| 1,036,497 | 175,513 | 1,212,010 | |
═════════ |
═════════ |
═════════ |
10. Expenditure on Charitable Activities by Activity Type
| Activities | ||||
|---|---|---|---|---|
| undertaken | Total funds | Total funds | ||
| directly | Support costs | 2021 | 2020 | |
| £ | £ | £ | £ | |
| Salaries and employer's NIC | 557,077 | - | 557,077 | 576,078 |
| Activities costs | 194,039 | - | 194,039 | 349,303 |
| Other direct costs | 12,170 | - | 12.170 | 19,347 |
| Promotional costs | 13,944 | - | 13,944 | 29,773 |
| Training, recruitment, travel and motor | 2,851 | - | 2,851 | 17,288 |
| Professional fees | 2,873 | - | 2,873 | 5,096 |
| Bank charges and subscriptions | 3,421 | - | 3,421 | 6,687 |
| Property costs | 147,537 | - | 147,537 | 155,992 |
| Depreciation | 37,673 | 19,240 | 56,913 | 45,296 |
| Governance costs | - | 7,035 | 7,035 | 7,150 |
──────────── |
──────── |
──────────── |
──────────── |
|
| 971,585 | 26,275 | 997,860 | 1,212,010 | |
════════════ |
════════ |
════════════ |
═════════ |
- 19 -
Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 March 2021
11. Net Income/(Expenditure)
Net (expenditure)/income is stated after charging/(crediting):
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Depreciation of tangible fixed assets | 56,913 | 45,296 |
| Gains on disposal of tangible fixed assets | - | - |
| Operating Lease rentals | 46,028 | 46,263 |
════════ |
════════ |
12. Auditors Remuneration
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Fees payable to the external auditors for the audit of the financial | ||
| statements | 5,760 | 5,220 |
| Fees payable to the external auditors for other services | 1,110 | 1,095 |
──────────── |
──────────── |
|
| 6,870 | 6,315 | |
════════════ |
════════════ |
13. Staff Costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Wages and salaries | 535,343 | 592,654 |
| Social security costs | 39,730 | 38,241 |
| Pension costs | 8,797 | 9,091 |
───────── |
───────── |
|
| 583,870 | 639,986 | |
═════════ |
═════════ |
The average head count of employees during the year was 33 (2020: 43). The average number of full-time equivalent employees during the year is analysed as follows:
| 2021 | 2020 | |
|---|---|---|
| No. | No. | |
| Number of operations staff | 15 | 18 |
| Number of creative staff | 5 | 5 |
| Number of management staff | 5 | 5 |
──── |
──── |
|
| 25 | 28 | |
════ |
════ |
No employee received employee benefits of more than £60,000 during the year (2020: Nil).
Key Management Personnel
Key management personnel are the trustees, the chief executive, general manager and creative and development manager. The total compensation paid to key management personnel for services provided to the charity was £199,521 (2020: £179,285).
- 20 -
Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 March 2021
14. Trustee Remuneration and Expenses
No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.
15. Tangible Fixed Assets – Group
| Stun | Static | Portable | Theatre | Fixtures & | Plant & | ||
|---|---|---|---|---|---|---|---|
| Studio | Equipment | Equipment | Seating | Fittings | Machinery | Total | |
| £ | £ | £ | £ | £ | £ | £ | |
| Cost | |||||||
| At 1 April 2020 | 227,866 | 53,592 | 200,690 | 120,201 | 4,020 | - | 606,369 |
| Additions | - | 1,465 | 3,649 | - | - | 22,385 | 27,499 |
| Disposals | - | - | - | - | - | - | - |
───────── |
──────── |
───────── |
───────── |
───────── |
───────── |
───────── |
|
| At 31 March 2021 | 227,866 | 55,057 | 204,339 | 120,201 | 4,020 | 22,385 | 633,868 |
═════════ |
════════ |
═════════ |
═════════ |
═════════ |
═════════ |
═════════ |
|
| Depreciation | |||||||
| At 1 April 2020 | 143,104 | 48,345 | 150,668 | 501 | 2,136 | - | 344,754 |
| Charge for the year | 22,787 | 1,956 | 19,240 | 12,020 | 909 | - | 56,912 |
| Release on disposals | - | - | - | - | - | - | - |
───────── |
──────── |
───────── |
───────── |
───────── |
───────── |
───────── |
|
| At 31 March 2021 | 165,891 | 50,301 | 169,908 | 12,521 | 3,045 | - | 401,666 |
═════════ |
════════ |
═════════ |
═════════ |
═════════ |
═════════ |
═════════ |
|
| Carrying amount | |||||||
| At 31 March 2021 | 61,975 | 4,756 | 34,432 | 107,680 | 975 | 22,385 | 232,202 |
═════════ |
════════ |
═════════ |
═════════ |
═════════ |
═════════ |
═════════ |
|
| At 31 March 2020 | 84,762 | 5,247 | 50,022 | 119,700 | 1,884 | - | 261,615 |
═════════ |
════════ |
═════════ |
═════════ |
═════════ |
═════════ |
═════════ |
- 21 -
Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 March 2021
15. Tangible Fixed Assets – Charity
| Stun | Static | Portable | Theatre | Plant & | ||
|---|---|---|---|---|---|---|
| Studio | Equipment | Equipment | Seating | Machinery | Total | |
| £ | £ | £ | £ | £ | £ | |
| Cost | ||||||
| At 1 April 2020 | 227,866 | 53,592 | 200,690 | 120,201 | - | 602,349 |
| Additions | - | 1,465 | 3,649 | - | 22,385 | 27,499 |
| Disposals | - | - | - | - | - | - |
───────── |
──────── |
───────── |
───────── |
───────── |
───────── |
|
| At 31 March 2021 | 227,866 | 55,057 | 204,339 | 120,201 | 22,385 | 629,848 |
═════════ |
════════ |
═════════ |
═════════ |
═════════ |
═════════ |
|
| Depreciation | ||||||
| At 1 April 2020 | 143,104 | 48,345 | 150,668 | 501 | - | 342,618 |
| Charge for the year | 22,786 | 1,956 | 19,240 | 12,020 | - | 56,003 |
| Release on disposals | - | - | - | - | - | - |
───────── |
──────── |
───────── |
───────── |
───────── |
───────── |
|
| At 31 March 2021 | 165,891 | 50,301 | 169,908 | 12,521 | - | 398,621 |
═════════ |
════════ |
═════════ |
═════════ |
═════════ |
═════════ |
|
| Carrying amount | ||||||
| At 31 March 2021 | 61,975 | 4,756 | 34,432 | 107,680 | 22,385 | 231,227 |
═════════ |
════════ |
═════════ |
═════════ |
═════════ |
═════════ |
|
| At 31 March 2020 | 84,762 | 5,247 | 50,022 | 119,700 | - | 259,731 |
═════════ |
════════ |
═════════ |
═════════ |
═════════ |
═════════ |
16. Investments - Charity
Analysis of investments at 31 March 2021 between funds
| Unrestricted | Restricted | Total | Total | |
|---|---|---|---|---|
| Funds | Funds | funds | funds | |
| 2021 | 2020 | |||
| £ | £ | £ | £ | |
| Other Investments | ||||
| UK Group undertakings | 100 | - | 100 | 100 |
═════════ |
═════════ |
═════════ |
═════════ |
The investment represents 100% of the Ordinary Share Capital of 100 shares of £1 each of Z-Arts Trading Limited. Z-Arts Trading Limited is a wholly owned subsidiary of Zion Arts Centre Limited. The subsidiary company is incorporated in England and Wales. The principal activities during the year was the operation of a café bar.
17. S tock
| Group | Charity | |||
|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |
| £ | £ | £ | £ | |
| Stock in hand | 1,855 | 4,980 | - | - |
═════════ |
═════════ |
═════════ |
═════════ |
- 22 -
Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 March 2021
18. Debtors
| Group | Charity | |||
|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |
| £ | £ | £ | £ | |
| Trade debtors | 80,371 | 155,472 | 81,683 | 155,916 |
| Amounts owed by group undertakings | - | - | 7,204 | 6,036 |
| Other debtors | 34,613 | 37,032 | 34,663 | 37,032 |
───────── |
───────── |
───────── |
───────── |
|
| 114,985 | 192,504 | 123,551 | 198,984 | |
═════════ |
═════════ |
═════════ |
═════════ |
19. Cash and Cash Equivalents
Cash and cash equivalents comprise the following:
| Group | Charity | |||
|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |
| £ | £ | £ | £ | |
| Cash at bank and in hand | 100,918 | 64,533 | 93,695 | 59,643 |
| Short-term deposits | 629,951 | 378,092 | 629,951 | 378,092 |
───────── |
───────── |
───────── |
───────── |
|
| 730,869 | 442,625 | 723,646 | 437,735 | |
═════════ |
═════════ |
═════════ |
═════════ |
20. Creditors: amounts falling due within one year
| Group | Charity | |||
|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |
| £ | £ | £ | £ | |
| Trade creditors | 68,222 | 52,597 | 68,055 | 52,017 |
| Social security and other taxes | 11,936 | 19,343 | 11,953 | 15,213 |
| Accruals and deferred income | 184,745 | 256,236 | 184,745 | 256,336 |
──────── |
──────── |
───────── |
───────── |
|
| 264,903 | 328,176 | 264,753 | 323,566 | |
═════════ |
═════════ |
═════════ |
═════════ |
Deferred income
| £ | |
|---|---|
| Balance b/fwd at 1st April 2020 | 180,359 |
| Released in the year | (68,383) |
| Deferred in the year | 28,182 |
───────── |
|
| Balance c/fwd at 31 March 2021 | 110,158 |
═════════ |
- 23 -
Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 March 2021
21. Analysis of Charitable Funds Unrestricted funds- Group and Charity
| At | At | ||||
|---|---|---|---|---|---|
| 1 April 2020 | Income | Expenditure | Transfers | 31 March 2021 | |
| £ | £ | £ | £ | £ | |
| General funds | 210,520 | 922,955 | (838,892) | - | 294,584 |
| Theatre seating | - | - | - | 109,498 | 109,498 |
| Designated Fund: | |||||
| Big Imagination Festival | 20,000 | - | - | (20,000) | - |
───────── |
───────── |
───────── |
───────── |
───────── |
|
| 230,520 | 922,955 | (838,892) | 89,498 | 404,082 | |
═════════ |
═════════ |
═════════ |
═════════ |
═════════ |
Transfers of £109,498 from restricted to unrestricted funds represent the release of the restriction on Renakers and Foyle Foundation funds following purchase of the new theatre seating for the main auditorium.
Transfers of £20,000 to unrestricted general funds represent the release of the designation following purchase of the new theatre seating for the main auditorium.
Restricted funds – Group and Charity
| At | At | ||||
|---|---|---|---|---|---|
| 1 April 2020 | Income | Expenditure | Transfers | 31 March 2021 | |
| £ | £ | £ | £ | £ | |
| Stun Capital grant | 106,499 | - | (28,786) | 77,713 | |
| Paul Hamlyn | 67,651 | - | (7,050) | 60,601 | |
| ABRSM Generation Z | 6,376 | - | (469) | 5,907 | |
| Children in Need | - | 38,111 | (19,191) | 18,920 | |
| Curious Minds MCEP | - | 20,000 | - | 20,000 | |
| DCMS Recovery Fund | - | 119,162 | (63,753) | 55,409 | |
| D’oyly Carte | - | 3,500 | - | 3,500 | |
| FAC Here and Now | 2,600 | - | - | 2,600 | |
| Family Arts Network | 595 | 5,127 | (3,153) | 2,569 | |
| Foyle Foundation | 20,000 | - | - | (20,000) | - |
| MCEP | 17,469 | 5,000 | (7,657) | 14,812 | |
| Granada Foundation | - | 3,000 | - | 3,000 | |
| John Thaw | 810 | - | (800) | 10 | |
| Levis Music Project | 37,274 | 29,414 | (14,669) | 52,019 | |
| MCEP Manchester Venues | - | 67,500 | (23,242) | 44,258 | |
| UK Theatres Trust | 1,635 | - | - | 1,635 | |
| One Mcr – Tiger School | 4,880 | - | - | 4,880 | |
| One Mcr – Family Jam | 4,200 | - | (800) | 3,400 | |
| Renakers Seats | 66,165 | 13,333 | (10,000) | (69,498) | - |
| Santander Fund | - | ||||
| Thrive (Young Manchester) | 6,784 | 9,123 | (1,138) | 14,769 | |
| Youth Music | -───────── |
25,522───────── |
(600)───────── |
───────── |
24,922───────── |
| 342,938 | 338,792 | (181,306) | (89,498) | 410,926 | |
═════════ |
═════════ |
═════════ |
═════════ |
═════════ |
Transfers of £89,498 from restricted to unrestricted funds represent the release of the restriction on Renakers and Foyle Foundation funds following purchase of the new theatre seating for the main auditorium.
- 24 -
Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 March 2021
21. Analysis of Charitable Funds (continued) Unrestricted funds- Group and Charity
| At | At | |||||
|---|---|---|---|---|---|---|
| 1 April | 2019 | Income | Expenditure | Transfer 31 March 2020 | ||
| £ | £ | £ | £ | |||
| General funds | 169,263 | 1,199,546 | (1,158,289) | - | 210,520 | |
| Designated Fund | ||||||
| Big Imagination Festival | 20,000 | - | - | - | 20,000 | |
───────── |
───────── |
───────── |
───────── |
───────── |
||
| 189,263 | 1,199,546 | (1,158,289) | - | 230,520 | ||
═════════ |
═════════ |
═════════ |
═════════ |
═════════ |
||
| Restricted funds – Group and Charity | ||||||
| At | At | |||||
| 1 April 2019 | Income | Expenditure 31 March 2020 | ||||
| £ | £ | £ | £ | |||
| Stun Capital grant | 135,285 | - | (28,786) | 106,499 | ||
| Paul Hamlyn | 79,228 | - | (11,577) | 67,651 | ||
| ABRSM Generation Z | - | 10,000 | (3,624) | 6,376 | ||
| Children in Need 2017 | 741 | 34,723 | (35,464) | - | ||
| 1961 Charity | - | 4,000 | (4,000) | - | ||
| Future Arts Centre Here and Now | - | 5,000 | (2,600) | 2,400 | ||
| Family Arts Network | - | 3,060 | (2,465) | 595 | ||
| Start Funding | 4,389 | 3,450 | (7,839) | - | ||
| Foyle Foundation | - | 20,000 | - | 20,000 | ||
| Garfield Weston | - | 15,000 | (15,000) | - | ||
| Bauer Radio Cash 4 Kids | - | 1,500 | (1,500) | - | ||
| MCEP | - | 20,000 | (2,531) | 17,469 | ||
| Granada Foundation | - | 3,000 | (3,000) | - | ||
| John Thaw | - | 810 | - | 810 | ||
| Levis Music Project | 5,194 | 68,632 | (36,552) | 37,274 | ||
| UK Theatres Trust | - | 5,000 | (3,362) | 1,635 | ||
| One Mcr – World in a book | 4,880 | - | (4,880) | - | ||
| One Mcr – Tiger School | - | 4,880 | - | 4,880 | ||
| One Mcr – Family Jam | - | 5,000 | (800) | 4,200 | ||
| PRSF | 820 | 4,250 | (5,070) | - | ||
| Renakars Seats | 26,666 | 40,000 | (501) | 66,165 | ||
| Santander Fund | 1,850 | - | (1,850) | - | ||
| Thrive (Young Manchester) | - | 9,123 | (2,339) | 6,784 | ||
| Uni Construction Fund | - | 1,970 | (1,970) | - | ||
───────── |
───────── |
───────── |
───────── |
|||
| 259,053 | 259,398 | (175,513) | 342,938 | |||
═════════ |
═════════ |
═════════ |
═════════ |
Restricted funds – Group and Charity
Stun Capital Grant
To re develop the studio into a fully equipped theatre studio and refurbish associated office space.
Paul Hamlyn
To support the CEO and the organisation to develop, commission and produce new work that reflects the diverse nature of family experience today.
- 25 -
Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Notes to the Financial Statements
Year ended 31 March 2021
Restricted funds – Group and Charity (continued)
ABRSM Generation Z To run Generation -Z music project for young people from Manchester. Children in need Grant to enable the provision of free weekly after school activities. Curious Minds MCEP To facilitate the Manchester Creative Education Partnership. Diversifying Family Offer ACE G 4 Arts council grant to assist with audience development. DCMS Recovery Fund Grant to support the organisation through the pandemic. D’oyly Carte Grant to support the delivery of Z-arts Young Performers participatory arts activities. FAC Here and Now To fund a project with Company Chameleon in celebration of 25 years of the national lottery. Family Arts Network Grant to facilitate the running of a network of family arts organisations. Foyle Foundation
Grant to support the provision of new theatre seating in the main auditorium. MCEP A Grant from MCC to facilitate the Manchester Creative Education Partnership. Granada Foundation
Grant to support Big imaginations summer programme.
John Thaw
Grant to support creative facilitators.
Levis Music Project To support the running of the Levis music studio.
MCEP Manchester Venues Recovery
Manchester venues contributions to fund Manchester Creative Education partnership. UK Theatres Trust
To provide access and environmental improvements. One Mcr – Tiger School
To enable local school children to visit the Tiger who came to tea exhibition. One Mcr – Family Jam
To enable family music events in the café.
Renakers Seats
Grant to enable the provision of new theatre seating in the main auditorium. Santander Fund
To provide arts activities for young people with specific access needs. Thrive (Young Manchester)
Grant to fund a schools mental health project. Youth Music
Grant to facilitate young people music project.
- 26 -
Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Notes to the Financial Statements
Year ended 31 March 2021
22. Analysis of Group Net Assets between Funds
| Restricted | Unrestricted | Total Funds | Total Funds | |
|---|---|---|---|---|
| Funds | Funds | 2021 | 2020 | |
| £ | £ | £ | £ | |
| Tangible fixed assets | 84,359 | 147,843 | 232,202 | 261,615 |
| Current assets | 326,567 | 256,239 | 582,806 | 311,843 |
───────── |
───────── |
───────── |
───────── |
|
| Net assets | 410,926 | 404,082 | 815,008 | 573,458 |
═════════ |
═════════ |
═════════ |
═════════ |
| Restricted | Unrestricted | Total Funds | Total Funds | |
|---|---|---|---|---|
| Funds | Funds | 2020 | 2019 | |
| £ | £ | £ | £ | |
| Tangible fixed assets | 204,462 | 57,153 | 261,615 | 179,480 |
| Current assets | 138,476 | 173,367 | 311,843 | 268,836 |
───────── |
───────── |
───────── |
───────── |
|
| Net assets | 342,938 | 230,520 | 573,458 | 448,316 |
═════════ |
═════════ |
═════════ |
═════════ |
23. Operating Lease Commitments – Group and Charity
The total future minimum lease payments under non-cancellable operating leases are as follows:
| 2021 | 2020 | |
|---|---|---|
| Equipment | £ | £ |
| Not later than 1 year | 843 | 843 |
| Later than 1 year and not later than 5 years | 2,319 | 3,162 |
─────── |
─────── |
|
| 3,162 | 4,005 | |
═══════ |
═══════ |
|
| Land and Buildings | £ | £ |
| Not later than 1 year | - | 45,000 |
| Later than 1 year and not later than 5 years | - | - |
───────── |
───────── |
|
| - | 45,000 | |
═════════ |
═════════ |
24. Related Parties
The charity has a close working relationship with Manchester City Council: this body nominates directors (see trustees annual report) and provides funding to enable the charity to carry out its charitable objectives. Income totalling £203,753 (2020: £224,420) has been received during the year. Expenditure totalling £45,295 (2020: £23,523) has been incurred with the related party during the year. The balance outstanding at the year end was £48,426 (2020: £71,167).
All the above fundraising was received either as core or grant funding. This income has been included in the financial statements under voluntary income and incoming resources from charitable activities. The above expenditure reflects invoiced costs in the year; it has been included in the financial statements under charitable expenditure.
The charity trustees were not paid or reimbursed expenses during the year and no charity trustee received any emolument or payment for professional or other services.
- 27 -
Zion Arts Centre Limited (T/A Z-Arts)
Company Limited by Guarantee
Notes to the Financial Statements
Year ended 31 March 2021
25. Capital commitments
In 2021 the charity contracted to refurbish the basement toilets at the theatre at a total cost of £76,745. As at 31 March 2021 there was an outstanding capital commitment of £76,745 which will be financed through restricted funds. The final payment for the refurbishment works was made in august 2021.
26. Analysis of changes in Net Debt
| At 1 April | Cashflow | At 31 March | |
|---|---|---|---|
| 2020 | 2021 | ||
| £ | £ | £ | |
| Cash at bank | 63,764 | 37,154 | 100,918 |
| Short-term deposits | 378,092 | 251,859 | 629,951 |
───────── |
───────── |
───────── |
|
| Total Funds | 441,856 | 289,013 | 730,869 |
- 28 -