Company registration number.. 4101324 Charity registration nufftber.. 1093556 Zion Arts Ceiitre Limited known as Z-Arts (A conipany limited by guarantee) Anniial Report and Financial StaleAnents for tli¢ Year Ended 31 Malrh 2024
Zion Arts Centre Limited known as LArts Contents Referencc and Admini.qlrative Details TTUStees' Annual Report (Incooitirtg the Directo, Rcport) 2tolO Independent Auditors, Report 11 to 14 Consolidated Stalem¢nt of Financial Activities 15 Consolidated Balarnce Sheet 16 Balance Sheet 17 Consolidated Sialement of Cash Flows 18 Notes lo the Financial Statements 19to37
Zion itrts Centre Limited known as Z-Arts Reference 2nd Administrative Details Ti'ustees A Barkatali F Bennett-Nielsen Coombs A Gill E Kane R Kapoor M Kunda N Noor J Pickett E Ransomc L Wallwein Seei'etary E Oweill Charlty Reglstradon Number 1093556 Company Reg15ti'atlon Number 4101324 The charity is incOrrated in England and Wale8. 335 Streiford Road Hulme Manchestei. M15 5ZA Reglstered Offlce Auditoi. Beever and Strutliers Cliartered accounlant & statutory auditor Suite 9b Tlie Beebive Lions Drive Blackbiirn BBI 2QS DWF LLP S Castle Street Liverpool L2 4XE Sollcltors Bartkel's CAF Bank 25 Kings Hitl Avenue Kings Hill West Malling Kent ME19 4JQ Page I
Zion Arts Centre Limited known as &Arts Trustees, Annual Report (Incorporating the Dxrectors, Report) Tt)e trustees, who are dii'ectors for the purposes of wiiipany law, prasenl Ilie annual repoi't togethei. wid) tlie financial stateniettls and awlilors, report of the charitable coinpany for the year ended 31 March 2024. Objectlves aiid aetLvities Objecls uiid aiiiis Z-arls is the UK'S only dedicated arts cents'e for childL'en gJ]d families. an arts oi'gaiiisatioi) willi national significance whilst still Iiolding a rol¢ as the cultural epicenlre of Ilie Hulme comniunity. In 2023-24 we welcon)ed 73,275 visitors to the building, and delivered 70,314 creative ititeractioi)s. The Charity's objectives are: _ To pi'omole, maintain, irnprove, develop and advance piibli¢ educatitsn and training in the arts foi. tlie benefii of, bul not IiT)iilcd to, young people. by op6rating a centre for tlie prescntation for the public of music. opei'a, dancc, drama, the visual aits, films, video, multimedia, soiind. exhibilions of 811 kinds as aie conducive to tlie proinolion, maiiitenance, improvement and participation in and advaiiceinent of ediication oi. to tl)e encoui'agement orth¢ art8, whether on premises owned or le&sed by Ihe Company oi. elsewliere. Z-arts uses ci'eativlty to iiispire, enricli and enable children, young people and faniilies to reach Ilieir pot¢ntial and be the agents of change in their own lives. In Our Arts Centre in Hulme, in education, in comniunitics, at honie and across networks Developing Cliildren, Young People, Educator& Artis18 and Fainily-togetherness Objeclives, sli'alegi&s' aiid ficlivilies The Charity's main activities are: _ 'Tlie promotiott and facililalion of arts evenls and aetivities for cl)ildren, young p¢opl¢ and families. Page 2
Zion Arts Centi"e Limited known as ArtS Trusteesl Annual Report (Incorporating the Directors, Report) Achievements and pei'foymance arts mission is lo make a differeiice to tbe lives of some of tlie most disadvaiitaged cliildren in Mancliester, Iliereby iinproving tlieir lives through inciEasing tlieir mentsl ai)d pliysical healtli and well-being. We do this tiii'ougli.. P&rticlpotlon: In 2023124 we i'etumed close to pit-paThd¢mic numb¢rs. with 29,798 participation eiigagements in the following pix)gratTlln¢s: • Bi'lght Sparks Aftei'.school, weekend, lioliday activities across all art fonns for ages 5-12+, plus pre-scliool aiid faiiiily activities. with over 10,000 engagements from 697 individual nieinbers accessing a choice of 1635 sessions. • External participatioii In¢ludlng seliool8 11,083 participation engagements outside of our buildTng, delivering creative eurriculurn and enrichnient activities in schools, we work closely with tlie 5 piimary schools and nuiE¢iy school in the wArd, as well as local secondaiy scliools, NHS s¢lioo18 prO2M1]leS and Manchester Metropolilaii Ui)iversity, on our doorstep; in a tolal of 81 schools acL'OS8 th'eatei. Manchesler and over l 0,000 engagements. Strategic Lead foi. MADE Cultural EducAtlon Partner$hlp MADE is a coll8boratioi) between Culre aiid education or8anis&lions from across Mancliester, including ait galleries, museunis, theatres. seliools, collcgcs and many n)ore. All ac¢iviti¢s focus on foul. pillai's.. a ci'eative cun'iculuin for Maneliesl¢r' Healili & wellbeing. youd) voice. eniployability, In Noveinber 2023 MADE becanie an independent coinparjy liinited by guarnntee. but reinains based at Z-arts. Childi'en's Ilbrary Oui. new libi'ai'y (opened in October 2022), designed by Children. who also cliose tlie kind of books they'd like it to hold, lias becoine 8 miieh_loved part of our offer, with I'eprescntative diverse books and carly-yeai's events ply)aMnie to support literacy and a love of readil I stories: 393 membeiE witlldiiwllig almost 4,000 books, &nd reaching a iecoi'd 6,000 vxsiloi's in tile last quarier. Perfoi'mance Childi'ett's Theatre A l)igli quality diverse, rcpitsentalive programnie mix of popular naines and experinienlal work foi. childn and families in £-arts th¢alre ages 0-12+. Tlie qiiality of tbe piDgramme and the markcting tean) has led to 11,283 audiences, oiu. most sue¢essful year in tlieatre attendance. Blg ImaginAtlons This year we also ¢elebrated ten year8 of managing tlic Big ID]aginations childirii's theatrc nctwork, supportiiig Illld facilitattng a cliildren's theatre '0ryme across some of die iiiost reniote areas in tlie Noitliwesl, helpinE fiu'lher 13,892 people see theatre for faniilies in areas wheie it wouldn't noi]llally be available (niore than double the audientts we liad ill the pi'evious year). Page 3
Zion Arts Centi'e Limited known as LArts Trustees, Annual Report (Incorporating the Directors, Report) 4 Discover exliibition This year saw a change-over in our annual inmiersive. interactive exliibilion based oil children's literatuie, for ages O-8+. Faiiytales ended in Deceniber. aftei. almost two years in place, and was followed by Rob Biddulpb's 100 Sioly Hotel, whicli opened in February. In kntal we I'eceived over 9,000 publxc And schoul visitors, with niany returners, showing how popular and higli quality the offer is. F4mfily Escape Rooiii Our Family EscApe Room Op]ed in Api'il 2023, with the rst year proving veiy popular, and attracttnE 1,445 visitors froni as fai. away as Austs'alia as as local families. Community engagement: •Con8ultation groups Tlie Z-arts Fan Club {made up of faniilies who attend oft a regular basis) illeet to offer advice on mAny aspc¢ts of our woi'k, including designing the ¢afé menu, selecting shows for tlie tIltre, oi. feeding ideas into new classes, proj¢¢ts or ai'eas. .Communlty Events woi'king with cuttuiiunity groups and other local chai'ities and 01.8anisations e.g. Hulrnc is Wherc Tlie Ait is and the Wijiler Festival ¢8ch widi an eslimaled 500 people attendii)g. •Communlty nettvoi'ks,. Teengaging with diverse conu)iunity networks in Il)¢ area Artist Developmeiit: An Arts Council England NPO (Natioi)al Portfolio Organisation) uplift specifically to support and grow oui. ai'¢ist devclopnient prograinme lias gone from strengtli lo slrengtli. •Performers dLVLlopiiient pi'ogrgnime Siippoited by a n¢w pi'odu¢¢r on the team, our newly regained studio tlicatrc (previoiisly sub-let) lias been busy witli artists making woik foi. young audiences foi. 170 days. Wilh a focus on diverse artists, d)is ycar we invested in 14 new picces of work, working with 77 artists or companies. •Crellve F#elllt%tor Trining pro£r*mme The second year of our training and developnient pro8ramme has seen I l enliy level artists gain skills and begin einploynienl as an artist 11)rougl) supporting our participalioii prograinme. Tlie cohoit runs SeptembeA' Jiine, with successful graduates coiitiiiuing einploylnent withi'n tlie creative teain. .Mountvi¢)v TlioRtI'e School: Foundation dlplomA Tiiis yeai. we eulered the second ycar of a new relationship, hosling tl)c Man¢liestei' branch of Mountview Tlieatre's School's foikndation, incrcasing to a 2-form y¢ai'" suppoiting new (alenl wliilst at th¢ sam¢ liine i'eplacing room Iiire income, previously lost aftei the pand¢mic. Page 4
Zion Arts Centre Limited known as Z-Arts Trustees, Annual Report (Incorporating the Directors, Report) In sl)aping In objeetives for the year planning our activities, tl)e trustees liave considcred the Cbaiity Coniinissiofj's guidance on public benefit, including the guidance on public benefil and fee cliarging. The cl)aiity relies on the voluntary 5etvices of the trustees, and on grants and the illcoii)e fiDin fees and cl)arges to cover ils operating c04ts. In setting the level of fees and cliarg&s th¢ tsu$e8 give consideration to the accessibility to activities for those on low iMcom4 ensuring that tliei'e is always a range of fl'ee activities and ci'eative CllEageni¢nts for local famili&8, alongside p8id activities tbat help develop inconie. Based in Hulme, we eonunitted to supporting our local COiTununities as well as redching out acros8 Greater Manchest. and tlie Noitiiwest. We operate from a large Edwardiaii building wbicb includes a 230-seat tlieatsE, gallery, I'ecoi'ding studio, music ID01 danee studio, café and numerous other rchcarsal I meeting rooms. But tliere is niuch more to wl)at we do tliat is outside of the building. We lead netwoi'ks., Big linaginations cliildren's theatre iietwoi'k, bringing brillianL cliildren's dieati'e to all ai'cas of the Noi-Ihwe$l, MADE {Manchester Cultural Educaiion partnership) witl) a vision lo make Manchesler a beacon foi. creative education, where the ails add Inagic lo life expeiiences and leaming for eveiyone. Manchestei. Family Arts Network, improving family provision across Cul1 venues in Man¢hes¢er, We engage with Communities: • Scliool communities act'OSS Breatei. Manchester, bringing creativity into education in boil) creative subjects and STEM subjects . In our coinmunity, with large scale outdoor events like Hulme Is Where The Art is and the Wint¢i' Festival Hulme Pai'k Our values Lut through everytl)ing that we do, with our children, young people, families, visitors ud staff teain., Welcoming, Inclusive, Vibi'ant, FoNard-Il)inking, Engaging and Fwi. aim Prlmary Aim: Clilldren Cliildren, yOVllE peoi)le and families attoss Greater Manchester and the wider North will have Biuler influetice ovei., and gain more creative skills through 8 wide-reathing niulti-art-form eniicliiiient progrunmie, Secondary alms: Per(orm*nces More, excellent perfoiinances for cliildr¢n and fAmilies will be available for audientts aeross the Nortli Audieiices and P%R'ticlp8nts Wc will rebiiild and gl'ow cxisling aLidiences, with a greal¢i' nuinber of diverse audienccs engaging witli and benefiting from our wide-ranging programmc Ai'ti$ts Mol'e divei'se arlL8ls wAll be nurtured and supported to niake excellent contemporaiy thcatre, pei'formance and ar15 actiVLties for children and families, willi moit opportunities to sliare tlie work and leAming regionally, hationally and intentIOnally. Organisation To grow as A Yesilien( nationally respecte4 strategic lead dclivering best practice in performancc and parlicipatoi'y arts activiti and cvcnts for children and fAniiiics. Page S
Zion Arts Centre Limited knowtt as LArts Ti'ustees, Annual Repoi't {Incox'poratiiig the Directoi'sl Report) Ah Arts Council Eiigland (ACE) National Portfolio (NPO) uplift was granted in diis year. totalliiig £401,853 pla for three years (now extended until 2027), an it)CKease froni tlie pi'evious grant of £255,000 pla. We also received £184,488 pla core funding froill Manchester City Cour)eil (MCC) and £54,725 froin Gi'ealei. Manchester Combined Autliorities (GMCA). Terms of occupation aiid sub-lettlng of preni5se8 Thc company occupies premiscs owned by Manchester City Council. Tliere are tell yeai's itiiiainiiig of a 25 year lease. Negotiations l)av¢ begun to extend the lease, with landlords collfwming a letter of assurance in Ibe tneantime. Piihlic beiiefil The tiustees confirn) tl)at they have complicd with tlie reqUientS of section 17 of tlie Charities Act 2011 to ave duc regard lo tli¢ public nefit guidan¢¢ publisl)cd by Ilie Charity CoInmissioii for Eiiglalld and Wales, Financi41 revlew The Con)pany has cxperienced a positive yeor financially, largely in line with budget expectations 8et out 4t tlie slai't of Ilie year. Total funds increased by £99,935 to £859,828 {2023.' £759,893) Uni'eslricled funds de¢r¢ased by £18,947 10 £433,961 {2023: £452.459) This decrease was due to capital depreci81ion of £34,561. Fl-ee reseives increa8ed in Ilie yeai. by £14,952 10 £268,865. Restricted fuiids increascd by £118,433 primarily because of an Arts council capital grant whicl) will be offset by depi'eciation ovei. Uie ¢oniing yeai'8. TolRI inconie incitased by 12 0/0 to £1,618,528. Donations and legacics were higher partly as a i'esult of tl)e ACE capital grant but also tlirough an uplift iii the ACE NPO fvnding. Iiicome fi'om charitable activities fell by 16.90/0. Eained income Ilii'ough box office, venue l)ire and rentals reniained tlie saiThe as tlie previous year, but the fall in restricted project grant in¢ome is indi¢alive of the currenl cliallenging envÉroMnent foi trusts and foundations fiEi)ding. l.lighei' interest ffdtes Conli'ibutcd lo an increase of £11,940 In invesuiient inconie. Tlie trading subsidiary incoine increased by 31.90/• 10 £105,799 (2023.. £87,217) Tliis increase was driven by tlie opening of our faniily friendly escape rooni wliicli sold out for the whole year. Tolal expenditu increased by 3.5•/0 to £1,518,593 {2023: £1,466,612) Trnding company costs inci'eased iij line willi incon)e as the additional profits from Ilie trading subsidiary were donated to ilie Cliarity. Cliai'iLable activity costs increased by 2.1 O/ but this was lai'gely driven by increased depreci21ion cliai'ges. Prop¢Jty costs Irduced as the cost of ulililies fell slwply as cxpcetcd. Page 6
Zion kn.ts Centre Limited known as Z-Arts Trustees, Annual Report Uncorporating the Directors, Report) Policy oil ieserv¢s Z-arts fi'ee I'eserves target figurc should fall between 8 and l2 weeks of annual turnovei. (excluding any capital gi'ant income). The target figure and this policy will be reviewed annually at boai'd level. Free ieserves al'e calculated as um'eslLiGlcd LeseLwes minus Unrestricted fixed assets book value minus any other slated designated Yeseives Z-ai'ls Reseive Policy priorilises the closure contingency of £218.090 ringfencing this amount fLt%t. A fvrtbeT reseive contiiigency of £50,000 should be held as a) L eolllingen¢y in case of unforeseei) loss or reduction of any revenue stream, b) funding being lost for any kcy projects 10 allow ihat pi'oject to continue for 6 montl)s wliilst aliei'native fuiiding is sou81)t and c) a suiii to be used as matcli fijnding to advantage of any funding oppoi'tunities that may al'is¢ tl)At would allow future creative projects. Thcse figur give a iotal reserve tai'get of £268,090. It is deemed necessaiy to hold a closure contingency to allow for the winding down of the chai'ity should tlic org&nisation bc forccd lo close for unseen circiiinslances. Wind down staff Calculations have been calculated at x3 moiiths commitment to 5eiiior inanagcment statT SaI1eS aiid slatutoiy i'edundancy payI)ients for otliei. staff. A furthei. figw'c accouuts for 3 1)ioiiihs of Ilie annual ovei'heads budget (excluding salaries) lo allow the building to reinain open to facilitace an ordei'ly wind down, Any reserves held over tlie target figure will allow for a negative budget lo be set for d)e following yeai. allowing niorc spend on key creative projects wliicli furtlier tlie cliariÉi¢s chai'itable aims. Z-arls conliniie to diversify their fiinding streanis ihroiigh earned inconie, public bodies and private sponsorship to rediice i'eliance on any singlc source of income. Following a positive financial perfoiniancc our free reserves now stand at £268,865, in line witii oui. i'cscivc tai'get figure. Tlie budget for the year 2024-2025 anticipates a nall {£6k) reduction iii oui. frcc i'escrves. Plans for futui'e periods Aittis diid key objecilvesfoi'fuliiie periods We receiv¢ strategic fiinding from Mancheslcr Cily Council, to lead on bul pi'actice for engaging children and young people in aits and cultw'e. Wc are an Arts Council England N81ional Poitfolio Oi'ganisation, leading and dclivering the Big Im8gin8tions i'egional network of childi'en's theatre, progi?Inming and ¢oimmissioning rclevanl, diverse theatre fnr d)c inodcrn rainily. Our GMCA funding enables us lo conttibute to the GM Cultui'al Str&tegy. In the previous year we had reached engagcrnent figw'es comp&rable to PLE-pandemic, so we sel a 3-ye. tat.get of achieving 70k in 2026. We acliieved tliis in the fll'51 year I, so we have i'evised our targets yet again will) an aggregated increase target of 90/0 in 2024125. Our priorities are to offer ¢realive opportunities lo children and fainilies who need it inost, iticluding i'eflectillg and represenLing tlie diverse conlllliTnitics Il)at surround us. As well as continuing to offei. all activities mentioned above under 'aclllevemenls and peifoiinance,. Page 7
Zion Arts Centre Limited lthown as LArts Ti'ustees, Annual Report (Incorporating the Directors, Report) A¢ilvltiesploiined io ochieve uiiiis .An Early Years programme in partnersliip with Creative Healtli Greater Manchester, pioviding training and essential eaily Yea support across Manchester's family hubs and librarAes. .Cliildren's libi2ry piDgr8mtiie continues to grow. with a new Stoiyteller in Residence. Jan Blake .Ai'tisls Developiiient Progi'ainme. Em'oviding n)ore training, developinent aod perfom]ance opportuntties for divetEe artists iJ)aking work for young audiences. •Crea¢ive educa¢ion supporting the cultural and educalioll Secto to use creativity aci'oss Ihe cun'iculum, to niaximi8e leai'ning and employment potential 4Environmental Awareness Advocacy, by pyograinming and profiling an Environnienlal Awat¢nw we¢k aimed at oui. childi'en and families, and starting to exploiz plans to create a outdooi. learning spocc, .Improving access and inclusion by programmlng mol'e Z-a¢58 fnlY arts eveiils foi. families with additional needs, and working with landlords Manchester City Council lo idettlify access improvements for the building, Z-ails will continue to play a role as a niajor contributor to tlie cultural sector, by f8ciliiatiiig creative and Culra1 networks and partne1111p models. ai)d by providing training and developinent for cliildi'en, young people, and artists at tlie slait of their Career. Golng concerii Tlie ts'LlStees Iiavc considered current rtsks including inflationary pi'essiires on w8ges and and th¢ effect the ongoing cost of living cl'isis could liave on future audiences, wllcn considering whediei. the Coinpany is able to operate as a going concern, After car¢fully consideiing tlie Coinpany's financial position and foircasts, the stees liave ¢oncluded that il is appiDpriate to adopt the going concern basis of preparation. This position lias been infonned by a nurnber of facto, including: . Tile eontinued support of Arts Council England tIough NPO fijnding, MCC tl)tDugli ils revenue grant fundiiig and continued GMCA funding. Tlie ongoing parlnersliip willi Mounlview theatre school wllich is increasing in size tliis yeai.. Ii)creased ongoing inconie from the li'ading company priniarily Ihrough sales of tli¢ escape room. Robiist and appi'opi'iate cost control measui'es in place to CDsure annual costs delivered in linc with aiinual budgcl, wliilst continlially itvicwing oppo]nitieS to reduce c(*sts sucli as energy efficiency measurcs to itdiice enei-gy usage. A i'eserves policy which has enabled rcscwes to increase to allow for any short-terni downtynis iii incollie oi. Support. P&B¢ 8
Zion Arts Celltre Limited known as &Arts Trustees, Annual Report (Incorporating tlie Directorsl Report) Sti'uctui'e) govei'n8Dce and mAnvdgement Noliire ijfgoveriiiiig ddciiiiient Z-arls is governed by a board of voluntary trustees, WI employ a Chief Executive. Tliere is a Senioi. Management Team of four. Decisions ait made at Bxecutive level, with decisions tliat bave an iinpact on the busincss or a financial cost of ovei. £2,1i00 being taken to tllJ8tee level. Tlie CEO Reports to tbe tLlJStees on a qiiaL'tei'ly basis, in addition tliere is a quarterly finance sub_eoiiuniltee and focus groups rcpoi1ing to the tivs'lees on specific initiatives as required. All tswtee and staff roles follow safe and inclusive i'ecivitilleiit pi'ocedui'es and underlakc DBS ¢he¢ks. All saI.1¢S have been benchniarked against otber Arts organisations to ensure that they are coiiipaiible and appl'opriale for the organisation. Tlicre is a thorough Terms of Reference for trnstees and an induction procedure wluch was updated in April 2024. Relatlonshlps wlth related pfirtles None of tlie trustees receive reniuneration or any other benefits fiDm their ttwsteeship. Eaclj year InLStees complete a Conflict of Intei'est Statement and a Decltion of Commitment SiatemenL Any connection between a trustee oi. a senior maiiag¢i' and 8 company, institution ort artist that Z-arts engages with inust be stated in this forn, or at a rneetitig if it occurs duriiig the year. In Ihis year we l)ave appointed two new tsuslecs. Clli. Einily Rowles, appointed by Manchestei. City Couneil, who lease the building to Z-arts provide sti2tegic core funding, resigiied for personal i'easons and is not replaced until Septeinbei. 2024. Mftlor rl$ks aiid iiiaiirtgeiiieiit of ilio$e i'isks The trustees liave a i'isk nianagement slralegy which comprises a regular review of the risks tlie Conipany nydy face, the establishment of systems and processes designed to mitiga¢e those risks and the iinplemenlation of pi'ocedures intended lo minimise the inipact oft the Con)pany should those illsks niatei'ialise. This i'isk sliatesy is reviewed on a quai'lerly basis al board level. Tlie latest i'eview higiili8hted.. a) LA)ss uf funding, reccssion and i'educed eamed income - miligated by protecting serveS where possible, focus fundt7ising oil core costs. operate project budgets at fu51 cost recovery. niaintsin affoidability options foi. those facing socio-economic disadvantage. b) The buildit)g Still has some areas which al'e high iisk - such as collapsed dr8ins ddiiip ingius causing damage lo walls aiid floors, and occasioijal power outa8es, bul these risks are mitigated by close liaison with Coi'poi'ale Property and having an MCC Exec on the board of truslees, StAlement of trustees, J'espoll8Abilltles The trustees (wlio 8re a150 the directors of Zion Arts Celltrc Limited for the putpoges of coinpany law) are responsible for preparing Ilie Tiuslee.q' Annual Repoit (Ineoworaling tl)e Dii.eclo, Report) and the financial statemenls in &ccoi'darkee with applicable law and United Kingdotn Accounting Standai'ds (United Kingdom Generally Accepted Accounting Piacticc), incliiding FRS 102 "Thc Financial Reporting St8ndard applicable die UK and Republic of Ircland" The repoit and accouiits have been prepared in accoixlance willi the pi'ovisions in Ibe Companies Act 2006 relating lo small companies. Pag¢ 9
Zxon Arts Centre Limited known as LArts Trustees, Aniiual Repoi't (Incorporating the Dll'ectorsl Report) Company law requit'es Ilje tiustees to pitpare flnancial statements for cacli financiRI year. Under coinpany law the trustees inust not approve the financial slatenients unless Il?ey are satisfied that they give a li'ue and fair view of Ilie statc of affairs of tlie pai'cnt cliarilable eompany and the group and of tlie inconiing i'csouices and application of L'CSOUif&q, including its inconie and expenditure, of the charitable group for thaL period. In prepai'ing the8¢ financial statements. the trnslee% are reqiiired to: sclecl suitable accounting policies and apply Ihen] consistentLy- observe the methods and pi'inciples in the Cliarities SORP. nke judgements and cstimates that are reasonable and prudent. slate wl)ether applicable accounting siandards. coinpi'ising FRS 102 liave been followed, subject to any n]aterial depat'tuirs disclosed and explain¢d iti the finai)cial slaleinents. and prepai'e the financial statements on Ihc going concern basis unless it is inappropriate to pi'esunie that tlie pai'ent charitable company will conlillue in business. The trustees al'e i'esponsible for keeping proper accounling records that cAn disclose witli i'easonable accuracy at any tiine tli¢ financial position of Ilie parent cliarilable coii)pany and Ilie group and enable tl)eni lo ¢nsui'e tl)at Il)e fiiiancial siaieiiiciits coiiiply willi Il)e Coi)Ipanies Act 2006. Tliey al'e 8150 I'esponsible for safeguarding Ilie assets of the pairnt cliarilablc company and 11)e group and hence (or laking reasonable steps for tlie pi'eveiilion and detection of Iraud and oilier irregularities. The tswtee5 are i'esponsible for thc maintlanCe and integrity of the corpor8te and fillancial infoiThalion included on Ilie charitable company's website. L£gislation governing the pirparation and dissemination of finfincial statenients n18y differ from legislation in othei. jurisdictions. Dise105uI'e of informatlon to auditor Eacli trustee lias taken steps dial tliey ought to havc taken as a trustee in order to inake theinselv¢s aware of any relcvant audit inforniation and to establisli thal Ihe cllarity's auditoi. is awarc of that informaiion. The tteeS confiini that there is no relevant information that Ihey know of and of wl)icli il)ey know the auditor is unawaiE, Tl)e annual i'eporl was appiDved by the tntstees of the chaillty on ... ned oil its bel)alf by: E O'Neill CompAny 8c¢r¢tary A Barkalali Trustee Pqge 10
Zion Arts Centre Limited known as ArtS Independent AudAtorls Repol't to the Members of Zxon Arts Centre Limited Opinion We have audited tlle financial stalemettts of Zion Arts Centre Limited (tlie 'cliarilable parent conipany,) and ils subsid1leS (tbe 'groiip') for the year ended 31 March 2024, whieli coinpi'ise tlie Consolidated Statement of Financial Activities, Consolidated Balance Sheel, Balance Sheet, co1011d&1ed Statenieiit of Cash Flows and Notes to tlie Finaiicial Slateinenls, including a suinniary of significant accountii)g policies. Tlie financial reporting fratnewoi'k Iliat lias been applied in ibeir preparation is United Kingdom Accoiinling Slandai'ds, compi'ising Charities SORP - FRS 102 'Thc Financial Reporiing Stsndai'd applicable in the UK and Republic of Ireland, and applicable law (United Kingdom GeDeTaUy Aeeepted Accounting Practicc). In our opillion the financial slaternents.. give a tnie and faii. view of the slatc of the group's and parent charity's affairs a8 at 31 Mai'cli 2024 and of ils iiiconiing resoui'ces and application of resources, including its in¢orn¢ and expenditsire, for the yeai. then ended; have been piDp¢i'ly prepared in accordancc with United Kingdom Generally Accepted Accounting PractLCe' and have been prepared in accordance with the requirenients of Ilie Companies Act 2006. BASIS for oplnlon We conducted our audit in accordance with Internatiotial Staiidards on Auditing (UK) (ISAS (UK)) and applicable law. Oui. spOnSIbl11t1eS under those standards are fw'tl)ei- desci'ibed iii Ilie auditor responsibTlilies for the audit of the financial slalements sectioii of ow report. We independent of the group in accoi'dance with the ethical requirements that are relevant to our audit of the financial slalenients in the UK, ii)¢luding the FRC'S Eiliical Slartdai'd, and wo liave fijlfilled our otlier eilii¢al responsibiliiies in accordance witli tliese requireinenls. We believe tliat Ili¢ Audit evidenee we have obtaii)ed is si1]¢1eTht and appropriate to provide a basis foft. oui. opinion. CoThcluslon$ i'elatlng to golng eon¢ern Til auditing the financial slateinents, we have concluded that Ihe trnslees use of the going coiicern b&sis of a¢counling in Ilie preparation of tlie financi&l stslemenls is appropriate. Based on Ilie work we have peifornied, we liave not identified any matei'ial unceitainlies rclating to events oi. conditions that, individillY or ¢vll¢ctively> may cast signific&n¢ doubt on the '0p,S ability to continue as going concein for a pei'iod of at least twelve irK)nths from when th¢ original financial 8tatements wci'c authoi'is for i&8ue. Our i'espot)sibilities and tl)e responsibililiGs of d)e trustees with respect to going conc¢rn are desci'ibed in the relevant Sections of this report. Otlier liiforiijlltlon The ts'ustees al'e responsible for the otlier infomi&tion. The other iOrMation compiises the ionnatIon included in the onnual report, othei. than the flljancial staternents and our auditol 8 report thereon. Oui. opinion on the financial statenients docs not covth. the other infomiation and, except to the extent otheiwise explicitly stated ill Oul. Tepoit we do not express any form of assuronc¢ conclusion theieo Pagell
Zion Arts Centre Limited known as LArts Independent Auditor's Report to the Members of Zion Ai'ts Ceiitre Limited In connection with our audit of the fillancial slaleinents, our respoi)sibility is to read tlie othei. infoi'llialioii aiid, in doing so, consider wli¢tl)er Ihe otl)er infomiation is inaterially inconsisten¢ willi Ilie finai)cial s121einents or Oui. kiiowledge obtained in Ilie audit or otheNise appears to be niaterially misstated. If wc idelitify sucl) lllitlerial inconsistencies or aPp.ent maleiial nllsstslements, we are required ts detemiine wlietlier tliere is a inaterial niisslalement in tlie financial sthtenienls or a n]aterial misstatement of the otlier inforiiialion, If, based on tlie woi'k we liave peifoiThed, we concludc that theie is a matcriai misstaleinent of this othei- infoin]alffion, we 2re requiied to ieport that tact, We Iiave noil)ing to repoit in Iliis rcgard, Oplnlon on other matter prescribed by the CompAnles Act 2006 In our opinion, based on tli¢ work undertaken in Ilie course of Ihe audit: tlie infonnalion given in the and TsteeS, Annual Report {IncorporAting thc Directors, R¢port) foi. tlie tinaiicial year for wliicli d)e financial 8l&leiiienls 81r pi'epwEd is Co11Stent witli Ille fin8n¢ial slaleinents. and the and Ti'ustees, Annual Report (IncoTporaling Ilie Direelors, Report) have been prepared in accordance with applicable legal requireinents. MAtters on ivhi¢h we are requlred ta i'eport by excepllon In the liglit of OUT knowledgc and understanding of the group and the paiEnt charitable company and its ciivii'oi)meiit obtained in the course of Ilie audi¢ we have not ideiilified maleri81 misstateinents in t1 aiid the Trustees, Annual Report (Iiicorporating the Dilecto, Repoit). We Iiave noiliing to repoil in respecl of the followii)g Inatlers where the Coinpanies Act 2006 reqiiires us to report to you if, iii our opinion: adeqLte accounting i'ecords have not been kept by the parent charilablc coinpany, or i'etuii)s adequate foi. our audit have not been received froiii bl'anches not visited by us. or the parent ¢liaritablc conipany financial statements are not in agffeineiit with tl)e accountiiig recoi'ds and retuiY)s', oi. certain disclosuies of trustees remuneration specified by law are not made. or we liave not received all tlie information and explanatioiis we require for Qui. audit. Re$ponslbllitles of trustees AS explained more fully in the Sialement of tswslees, responsibiliti (set out on pages 9 and 10), the trwtees al'e i'esponslble for Ilie pi'eparation of the financial stateincnis and for being satisfied that tliey give 8 true aiid f811. view, and for such internal contLoI a.s the trustees deterniine is necessaiy to enible the prepai'ation of financial Staleinents tliat are free from niatei-ial niisslatement. wl)etEier due to fraud or error. In prepaiing tbe financial Statements, Ilie tmstees air rcsponsible for assessing the cliarity's ability to continue as a going coneen), disclosing, &$ applicable, matters irl8tcd to going concan aiid using the going coucern basis of accoiinting Linlcss the tnistees eithth. ititend to liquidate thc cllatity or to cease operations. or have no realistic Iteinative bul to do so. Page 12
Zion Arts Centre Limited known as &Arts Independent Allditor's Report to the Members of Zion Ai"ts Centi'e Limited Auditor responsibilities for the audlt of tlie finaiicial stateinents Oui. objectives are to obtain reasonable Surance alxjul wlieiher tlie financial sta¢en)ents as a wliole are free froin material misslatemenl, wljether due lo fraud or error, and to issue an auditor's i'epoi't that includes Oui. opinion. Reasonable assurance is a high level of uranc4 but is iiot a guarniitee that an audii conducted in accoi'dance witli LSAS (UK) will always detect a material tnisstateinent whei) it exists. Misstalcmcnts ean arise froin fi'aud or error and air considered material if, individually oi. in the aggregate. tliey could reasonably be expected to influence Ilie enomiC decisions of users taken on Ilie basis of these financial statements. The extent to wl)ich our procedures Ore Capable of detecting iegUla1711eS, including fi'aud is detailed below.. Identify and assess the risks of material misslalement of the financial statenients, wlietliei. due lo fraud oi. eiTor, design and pei'fonn audit procedures responsive tliose risks, and obtain audil evidence tliat is sufficient and aypropi'iRte to provide a basis for our opinion. The risk of noL deiecling a malci'ial niisstatement resulting from fraiid is higher tlian for one resulting froni crror, as fi'aud may involve collusion, fOrgy* intentional omissions. misrepresenl8tions, or the ovenide of intern81 control. Obtain an iiiiderstanding of intemal control relevant to tile audit in order lo design audit pYo¢edui'es tlial are appropi'iate in Ilie cii'cum8lanC, but not for tl)e purpose of expressing an Opillion on tlie effe¢liveness of tlie internal control. Evaluate the appi'opiiateness of accounting policies used and the reasonableness of accounting estimates and i'elated disclosuit8 niade by the ttvstees, Conclude on tlie &ppropriateness of the trnslees, Se of the going concern basss of a¢¢ounling and, based on 11)e audit evidei)ce obiaiiied, whetlier a itiaterial uncertainty exists related to eveiits or conditioiis Il)at ii)ay cast signifi¢anl doubt on the charity's abilily to conlinue as a go&ng concei'n. If we wnclude iliat a in&leri&l uncci'iainly exis18, we are I'equired lo draw altenlion in our audiloi s reporl lo the related disclosurcs in the financial staternenls or, if sucl) disclosures are inadequatc, to modify our opinion. Our conclusions al'e based on Ilie audit evidencc obtained up lo the date of oui. aiiditor's report. However, thi.e cvents ot. conditions niay eause tlie charity to cease to coiitinue as a going concein. Evaluate Ilie overall presentation, structhre and content of the financial statenients, includlng the disclosui'es, and wheilier the fjnancial statements repi'esent tlic underlying ts'ai)sactioiis and events in a iiiaThiiei' tl)at acliieves fair pr¢8¢ntalion. We commuiiicate with those charged witl) governance regarding, among other matters, the planned scope and liming of the audit arAd significant audit findings¥ including any significant deficicncies in inteinal conts'ol tliat we ideiitify during OUL. audit. Page 13
Zion Arts Centre Lxmited known as &Arts Independent Auditor's Report to the Members of Zion Arts Centre Limited Use of oui. i'epoi't This report is made solely to tlke cliaritable parent coinpany's Iruslees, as a body, in accordance willi Cl)&pter 3 of Part 16 of tlie Coimpanies A¢1 2006. Ow- audil wot* lias been undertaken so that we miglit state to the group's 'uslee5 Iliose mattel's we ai'e requii'ed to slate to tliem in an auditoi s i-eport and foi. no oi]iei' PULyose. To tlie fullest extent pemiitled by law, we do not accepl oi. assume responsibility to anyone olhci. than tlie cliai'itable pai'ent conipany and its tISteeS as a body, for our audii wojk, for ibis report, oi. foi. tl)e opinions we liave foiined. Mark Bixdley BA BTP fcA (Senioi. Statutory Audilor) For and on behalf of Beever alld Slnjthers, Stalutory Auditoi. Siiite 9b The Beehive Lions Drive Blackburii BBI 2QS Date.. 05.11.24 Page 14
Zion Arts Centre Limited known as &Arts Consolidated Statement of Financi21 Aetivities for the Year Ended 31 Mai'ch 2024 {Ineluding Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Ullrcstrieted funds Restrleted funds Totgl 2024 Tot#R 2023 InLonie and Endoivmenls from: Donations and Icgacics Chai'Élable activities Investment income Other income 673.820 365,559 18,085 105,799 227.834 227,431 901,654 592,990 18,085 105,799 638,309 713,318 6,145 87,021 Total An¢ome 1,163,263 455,265 1,618,528 1,444,793 Eypendlture on; Raising tunds Charitable activities (102,852) 1,078,909) (102,852) 1,415,741) (80,112) 1,386,500 (336.832 Total expendityre Net (expenditLireyincome (1,181,761 (336,832 1.518,593) {1,466,612 18,498 118,433 99,935 (21,819 Net iiiovenient in fjjnds (18,498) 118,433 99,935 (21,819) R¢¢on¢lllatlon of fuiid8 Total fiinds brought foiward 452,459 307,434 759,893 781,712 Total fund8 can'ied forward 21 433 961 425,867 859,828 759 893 All of the 0up'S activities derive froin contiiiuing operations duriiig the above two peiiods. The fid8 breakdown for 2023 is sliown in note 21. The notes on pages 19 to 37 forni an integral part of these financial staiements. Page 15
Zion Arts Centre Limited known as Z-Arts (Registration number: 4101324) Consolidated Balance Sheet as at 31 March 2024 2024 2023 Note Flxed assets Tangible assets 14 438,062 514,168 Cui'reknt assets Sto¢ks Debt015 Cash at bank and in hand 16 17 18 6,776 170,644 417,437 594,857 4,814 78,418 359,936 443,168 Creditors: Amounts falllnE due withln one yeai. Net CUl'l'Lnt assets 19 173.091 197,443 421,766 245.725 Net Rssets 859.828 759,893 Funds of the group: Restrlcted Income fllnds Restricted ndS 425,867 307,434 Uni'csti'ictcd income funds Designalcd FLinds General Funds 158,171 275,790 192,732 259,727 Total unreslricled fijnds 433,961 452,459 Total funds 21 859,828 759,893 ancial slateinents on page$ 15 10 37 were approved by the trustees, and aulhorised for i8su¢ on and signed on Ilieir behalf by: A Barkatali Truslcc The notes on pages 19 to 37 fomi an iniegral part of these fmancial slatements. Page 16
Zion Arts Centre Limited known as Arts (Registi'ation numbei": 4101324) Balaiice Sheet Yds At 31 mai.ch 2024 2024 2023 Note ri ixed assets Tangible assets Investsnents 14 15 436,952 100 514,121 loo 437,052 514,221 Current assets Stocks Debtoi's Cash at bank and in Ir4nd l6 17 18 2,881 173,066 405,035 88,992 347,120 436,112 192,050 580,982 Cj'editoi's: Amouiits falling due withfin one yegr 19 159,984) Net curi'eD¢ %s3ets 420,998 244,062 Net assets 858,050 758,283 Funds of the ch81'1ty: Restrlcted Income funds Restricted fvnds 425,867 307,434 Unrestricted Income funds Designated Funds Genei'al Funds 158,171 274,012 192,732 258,117 Total unrestri¢led fi]nds 432,183 450,849 Total funds 21 858.050 758,283 These fittai)¢ial slateinents Iiave been prepared in accordance with the special provisions relating to cornpanies subject lo the sniall coinpanies regime willlin Part 15 of tbe Companies Act 2006. The cial slatenienls on pages 15 to 37 were approved by Ihe tnjstees, and Authorised foi issue on A Barkalali Tnjslee The not on pages 19 10 37 forni 3n integ[71 part of these financial stateinents. Page R7
Zion Ai'ts Centre Limited known as LArts Consolidated Statement of Cash Flows for the Year Ended 31 March 2024 2024 2023 Note Cash flows from opei'#ting activltles Net niovement ID funds 99,935 (21,820) Adjustments to eAsh (]oivs from non-eash Items Depi'eciation Invesliment income 14 148.079 18,085 75,894 6,145 229,929 47.929 Worldng capltAI adjustments (Increase)Idecrease in stocks (Increase)/decrea8e in d¢btor8 Decrease in ci'editors 16 17 19 (1.962) (92,226) 24,350 1,766 7,686 121669 Net C8sh flows froin opei-ating activitie8 11 L,391 64,288 Cllsh flows froin Invesllng actlvitles Interest re¢eivablc and similar income Purchase of tangible fixed a88¢ts 18,085 71,975 6,145 331,148 14 Net Cash flows froin inv¢sling activities Nel inciYasel(decrca8e) in casli and cash eqiiivalenls Cash and cash equivalents. at l April Cash and c&8h equivolenls at 31 March 53,890 325,003 57,501 (389,291) 749,227 359,936 417,437 359,936 All of the cash flows are dei'ived fiDrn continuing operalioiis duyirng the above hvo periods. Tjie notes on pages 19 to 37 fi)m) an integral part of these flllancial statements. Page 18
Zion Ai"ts Centre Limited known as LArts Notes to tlie Fillancial Statements for tlie Year Ended 31 Marcli 2024 I Cliarlty status The cliarity is liinited by guarantee, incorporated in England and Wales, and consequently does not have 81iare capital. Eacli of the trustees is liable to conti-ibule an aiiiount nol exceediiig £1 towards tl)e assets or Ihe charity in the event of liquidation. The addtrss of its registered office is.. 335 Ststtfoid Road Flulnie Maiicl)ester M15 5ZA 2 Aceountlng policies Summary of slgiilfleant accoujidng pollefies And key 4e¢ountlng estimgles Tlie pi'in¢ipal accoiinting policies applied in tiie preparation of iliese fjnancial 8lalements are set oiit below, Tliese policies have been consislenily applied to 811 the year8 Presented, unless otl)envise stated, Stlltemont of compliance Tlie financial slalemenls have been prepared in 8ccoirfance with Accounting and Repoiling by Chai'ities: Staleniei)l of Recommended Pracli¢e (applicable to charities preparing Iheii. aceounts in accordancc witli the Financial Reporting Standard applicable in Ilie UK and Republi¢ of Ireland {FRS 102)) (issued in Octobei- 2019) (Cllai'ities SORP (FRS 102)), tlie Financial Reporting Standai'd applicable in tlie UK and Republic of Ireland (FRS 102) and the Coiiipanies Act 2006. Bq$ls of pi'eparAtlon Zion Arts Centre Limited meets tlie definition of a public benefit entity under FRS 102. Assets aiid liabilities ale initially recognised at histoillcal cost or transa¢tion value unless othenylse Stated in the relevant accounting policy notcs. Basls of con801idAtion The Stateinenl of Financial Activities {SOFA) and balance sheet consolidate tlie finaiicial statement8 Of the Cllarity and 118 subsidiary undertaking. The i'esults of the subsidiary are consolidated on a liiie-by-liiie basis. T]ie Charity has availed itself of Paraeraph 4{1) of Schedule l of tbe Sinall Coinpanies and Groups (A¢¢ounls and DireGloi's' RepoLt) RcgulatiOn5 2008 and adapted the Companies Act forinats io reflect tlie special natw'e of the Charity's activities, A scparate Statement of Financial Aclivities and itkcome and expenditure accoiinl. for t]ie Cliarity has not been presented because the Trust has taken advantage of tbc exemption affoirfed by Section 408 of the Companies Act 2006, Goiiig concei'n The tsusle COlde1 that there ore no materi21 uncertainties about the giDup's ability to continue as a going concei'n nor arty significant areas of wjcertointy that affect the carryAng value of assets held by the group. Page 19
Zion Arts Centre Limited known as &Arts Notes to the Financial Statements for tbe Year Ended 31 March 2024 Signlflcant accouiiting estimates and judgements In the api)licalion of tlie entity's accouIiting policies the Trustees are required to make judgements, estimates and assuniptions about Ilie cairyirtg value of assets and liabilities lliat not i'eadily appai'eiit from other souires. The egliillates and underlying &ssuniplions are based on liisiorical expei'ience and otiier factors that are considei'ed lo be relcvant. Actual irsults tnay differ from these estimates. The estim&tcs and undei'lying assumptions are reviewed OD an on-going basis. Revisions to accoimting estiinates al-e ircognised in the period in which die eslimaie is revised if the revision affccts onty that pthiod or in tlie period uf the i'evision and future pcriiKls if the i'evision affects the cunTnt And futuiE pei'iods, In the vicw of the Trnslees no sun]plIOnS ¢on¢erning tlie future or estimation uncertaiiity affecting assets and liabilities at the balan¢e sheet date are likely to result in a material &djustment to their Crying amounts in Ilie Iiext financial year Income t)nd ondoiYmei)ts All incoine is Itcognis¢d once the charity has entiilement to the inconie, it is probable diat the inconie will be received and the amouiit of tlie in¢ome i'eceivable can be mcasiired reliably. Doiialioii&' aiid lega¢i¢s Donalions are recognised wl)en the charity has been notified in writing of both Ihe amount and settlcinent date. In Ilie ev¢nl tliat a donation is subject to conditioi)s IhAI require a level of perforniance by t]ie cl)ai'ily before Ilie cl)ai'ily is entitled to the funds, tlie income is defeiTed and not reeognised unlil eitliei. Il)os¢ conditions al'e fully niet, oi. the fLilfilinent of thosc conditions is wholly within the control of the chai'ily and it is piobable Iliat thesc conditions will be fulfilled in the reporttng period. Gr4iils receivnble Gi'ants al'e rewgnised when tlie )up has an entitlement to the funds and any conditions linked to tlie gi'aii l)ave been met. Wlieie performance eonditions are attaclicd to tlie gi'ant and are yet to be inel, Ihe income is i'ecogni8ed as a liability and included on the balan¢¢ sh¢et as defeiird incoine to be A'eleased. Iiives'fniEiiI incoiiie Dividends are ircognised once tbe dividend lias been declared and notification Iw been received of the dividend due. Exptndltui'e All expendilurc is reColSed oiice there is a Icgal or Collstruclivc obligation io that expeiiditui'e, il is pi'obablc settlement is i'equired and the aniount cali be nieasured reliably. All costs are alloc&t¢d to the applicable expenditure heading that aggregate Simil costs lo that calegoiy. Whei'e costs cannot be diiectly attributed to paiticular headings they have been allocated on a basis consistent with the use of resources, with central staff costs gllocalcd on the basis of tiiiie spent, and depitciation charges allocated on the portion of Ilie asset's us¢. Otliei. support costs are allocated based on the spread of staff costs. Ralsiiigfuitds These al'e costs incutted in attracting voluntary iiicome, the managemeni of investments those Incurred in trading aclivilies that raise funds. Page 20
Zion Ai"ts Centre Limited known as &Arts Notes to the Financial Statements for the Ye21" Ended 31 March 2024 Cliai'iliible aclivirfxes Charitable expenditui'e coniprises those costs incuTred by ihe charity in tl)c delivery of activities and SCL'vices roi. ils bencficialies. It includeg both costs that can bc allocated directly to such activities and those costs of an indii'ect nattii'e neeessaiy to suppoi't tlien). Suppoitt eosts Suppoi'l ¢osls include central functions and have been allocaled to activity cost cat¢gories on a basis consisteiil willi Ilie use of resources, for exainple, allocatRThg property costs by floor areas, or per capita, staff costs by tbe tinie spent and ot]ier costs by their usage. Taxatlon Tlie chai'ity is consided lo pass tlie lests set out in Parngi'aph I Scliedule 6 of the Finan¢¢ Act 2010 and th¢irfotE it meets thc defiDltion of a charitable company for UK corpoi'alion 18x purposes. Accordingly¥ tbe cliarity IS Potcntially exeiiipt froni taxation in respcct of inconie or capital gains received within c8tcgoi'ie8 covered by Clwpler 3 Pal't I l of Ilie Corporation Tax Act 2010 oi. Section 256 of Ilie Taxatioii of Chargeable Gains Act 1992, to the extlt that such iiicome or gains ale applied exclusively lo cl1#i'itabl¢ puiyoses. Tangible flxed assets All fixed assets are initally Tecorded al cost. Any fixed assets wsting less than £500,00 are not capitalised but wi'ilten off lo revenue in the year of acquisition. Depi'etlation Olld Amoi'lis#tlon Depi'ecialion is piDvided on tangible fixed assets so as to write off tlie cthst oi. valuation, less any cstimated Lesidual Vf41uc, ovei. Ihe&r expccted use1 economic life as follows,, Asset Llgss Major capital itiipi'ovemenls and Iliealre seals Cornputer equipment and escupe l'oon) All other fixed assets Depi'ecialion niethod and vate 100/0-25 % straigl)I line 33 /• straiglit line 250/0 Straigtst line Stock Stock is valued at the lower of eosl and estimated selling price IS costs to Complete and sell, aftei- due regai'd foi. obsolete aiid slow moving stocks. Cost is deteimiined usiijg tlie firsl-in, f113t-OUt (FIFO). Ti'ade debtors Trade d¢btor8 are amounts duc from customers for merchandise sold or Services peifonned in tl)e oi'dinary coiirse of business. Trade debtors 8rc i'eeognised initially at the transaction price. They are subsequently measured at amoi'lised cost using the effective tlllerest melhod, less provision for impairmellt. A provisioii for tlie impaiinient of li-ade debtois is established wheii there is objective evidence that the Ch.itY will not be able lo collect all amounts due accordiJ]g to the original ternis of tlie i'eceivables. Page 21
Zion Arts Centre Limited known as LArts Notes to the Financial Statements for the Year Ended 31 Mydrch 2024 Cash and cash equivaleiits Cash and c&qli ¢quivaleIits comprise cash on hand and call deposits, and other short-term liiglily liquid inveslii)eLILs tliat are readily eoiivertible lo a known amount of casb aiid are subject to an insignificant i'isk of chdnge in value. Trade ci'editoi's Trade ci'editors are obliglltions to pay for goods oi. s¢Nices tliat have been acquired in tb¢ ordinary coiirse of biisincss tiom suppliers. AcwuThts payable are classified as cun'ent liabilities jf thc cliarity does not have an uncoIiditional light, al the end of the reporting period. to defer settlemeiit of dic creditoi- for al least twelve niond)s after Ibe repoiiing date. If there is an unconditional right to defer Settl11¢nt for at least twelve illoiitlis after the repoi'ling date, tliey are pres¢nied as non-G.[ent liabilities. Trade credit013 are recognised initially at tlie Iransaclioii pi'ice and subsequently measui'ed al ainoitised cost using the effective interest nielliod. Fund $ti'uctui'e Uni'estt'icled income ndS are general funds that ar¢ availablc for use at the trustecs discretion in fuithei'ance of the objectives of tlie gioiip. Designated fijnds are fimds which have been allo¢ated or designated for spe¢ifJc pujposes by the company out of the unrestricted funds. The cliai'ily has a number of reslricted fun(ts to account for in sithations where a donor requiits tIt a grant or donation must bc spent on a parti¢ular pUoSe. Flnanclal instrunientS Classijic'alioii Financial assets and financial liabilities are recognised when Ilie group bec01n a party lo the contractual pj'ovisions ofihe instruinent. Financial liabilities and equity instrumenis are classified according the substanee of tl)e conttBctual arrangeinents entered into. An equity instrument IS 8ny contract Uiat evidences a residual interest in tlie asset8 of the gi'oup after dediicting all of its liabilities. Recogitilioii aiid iiieasiirtiiieiit A financial asset OT a financial liability is recognised only when the cliarily bOlneS a pai'ty lo tlic conti'actual provisions of thc instruinent. Basic tinancial instrumellts are Initially TOgnIsed at the amount receivable or payable including any i'elated ?nsaction costs. Cw'rent assets and cuirent liabilities ore subsequently nie&Sud at the cash or othei. conskderation expected to be paid or re¢eived and Thol discounted. Debt instruments al'e subs4uently measured at amortised cost. Page 22
Zion Arts Centre Linjited knoivn as LArts Notes to the Financial Statements for the Year Ended 31 Mareh 2024 3 Income from donations alld legacies Unreslrlcted funds Genei'al Restricted fuiids Total 2024 Donations and legacies- Monetary donation8 Donation fj'om Trading Subsidiary Grants, includiiig capital gi'ants. Manchester City Council Gj'ealer M&ncliestei' Colnbincd Auihority Aits Council l9,754 13,000 19,754 13,000 184.488 54,725 401.853 184,488 54,725 629,687 227,834 227 834 673.820 901,654 Uni'esti'ieted funds General Resti'lcled funds Total 2023 Donations and legacies; Monelaiy doi)alions Donalion fi'om Tradin8 Subsidiaiy Granls, including capital grants,. Manchcster City Council Gi'eater Manchester Coinbined Authority Aits Council 12,630 4,200 12,630 4,200 184,488 49,750 259,692 A84,488 49,750 387241 127 549 510,760 127 549 638,309 4 Incojiie from cliaiitable Actlvitles Unrestt.leted fund$ Ceneral Restrlcted funds Total 2024 Venue hire, shared BO and gallery Project gi'ants Rents receivdble 217,399 62,995 85,165 217,399 290,426 85,165 227.431 365,559 227,431 592,990 Page 23
Zion Arts Centre Limited known as LArts Notes to the Financi21 Statements for the Year Li nded 31 March 2024 Unrestricted funds Geneyal Restricted funds Total 2023 Venue IIiiE, sliared BO and gallery Project grants Rents receivable 222,066 75,450 81,313 222,066 409,939 81,313 334,489 378,829 334,489 713 318 5 Investinent liieome Unrestiieted funds General Total 2024 Total Interest receivable and siiiiilar income. Baiik inlei'est receivable 18,085 6 Other Income Uni'estrlcted funds General Total 2024 Income frojn li'ading subsid1Y 105,799 105,799 Uni'estricted (uiids GeiierAI TotAI 2023 Incoine froni Irttding subsidiai'y Covid insuraiice claii Consultancy 80,217 3,500 3,304 80,217 3,500 3,304 87,021 87.021 Page 24
Zion Arts Celltre Limited known as &Arts Notes to the Finaiicial Statements for tbe Year Ended 31 March 2024 7 Expendltui'e on i'afislng funds R) Costs of ti'ading gctivities Unrestrleted funds Genei'*l Total 2024 Total 2023 Ti'8ding subsidiary costs 102,852 102,852 80,112 80,112 102.852 102 852 8 Expeiiditure on ehai'ltAble actlvltles Unresti'icted funds Ceiieral ResÉrlcted funds Total 2024 Staff costs A¢livities costs Oilicr direct cost,8 Proinotional costs Trainii)g, i'ccruilment, travel and inotor Professional fe¢s Bank cliarges and subscriptions Piopeity costs D¢pr¢ci&lion Allocatcd support costs 531,940 253,677 7,106 34,686 10,771 7,156 7,485 169,072 41,705 15,311 1,078,909 80,996 115,378 336 612,936 369,055 7,442 34,686 11,562 7,156 7,485 201,158 147,950 16,311 791 32,086 106,245 1,000 336,832 1,415,741 Page 25
Zion Arts Centre Limited knoivn as Z-Arts Notes to the Financial Statements for the Yeai. Ended 31 Marcli 2024 Unrestricted fuiids General Restricted funds Total 2(b23 Activities costs Other diTecl costs Promotional costs Trainiiig, i'eciuitinent, travel and motor Professional fees Bank Gliw'gcs and subscription8 Pi'opeity costs Depi'ecialion Staff costs Allocated support costs 196.466 11,104 36,709 7,303 8,362 8.178 160,764 35,375 488,530 12,759 147,253 4,466 13,278 833 343,719 15,570 49,987 8,136 8,362 8,178 230.946 75,656 632,187 13,759 1,386,500 70,182 40,281 143,657 1,000 965,550 420.950 Acttvlty undei'taken dii'ectly Aclivity suppoi't costs 2024 Charitable aclivitic8 1,399 430 Aclivlty underl4ken dlrectly 16,311 1,415,741 Actlvi(y suppoi-t eosts 2023 chilable activities ,372,741 13,759 1,386,500 9 Net inconilngl(outgoing) resources Net incomingl(outgoing) resources for the Yc. include, 2024 2023 Operating Lease reiitals Depi'eciation of fixed assets 45,843 148,079 45,790 75,894 10 Trustees veinuneratlon and expenses No trustees, noi any persons conllected with them. have received any munei?tion finm die group dut'ing tlie yefti.. No trLTSte¢s have received any reimbui%ed expenses or any other benefits fro the cliarity dui'ing tlie year, Page 26
Zion Arts Centre Limited Iinown as Z-Ai*s Notes to the Fillanci21 Statements for tlie Year Ended 31 March 2024 ii staff costs The aggregate payloll costs were as follows: 2024 2023 Staff costs durlng the yeRI' Ivere: Wages and salai'ics Social security costs Pension costs 631,904 49.440 10,582 643,275 51,174 10,933 691,926 705,382 Tiic averaEe liead count of petsons (including senior manageinent I lead¢rshTp teaiii) eiiiployed by the group dui'iiig the year was 48 (2023: 45) Tlie avei'age nuinber, expressed as full liine equivaleiits, was as follows., 2014 2023 Opei'ational staff Creative slaty Manageiiient staff Adniinistration slaff io 23 25 No eniployee received emoluments of more than £60,000 during the year, Key managenient personnel are The Cliief Executive, Head of Finance and operatio1, Head of Preii)ises and Teclinical, Head of Pi'ogramniing and Head of Crealive Developinent. The lolal employee benefits of Ilie key managenient personnel of the group were £236,974 (2023 - £226,354). 12 Audltors, reillunei'atlon 2024 2023 Fees payable to the exterjial audltors Tl)e audilitig of tlie financial statenients Preparation of financial slalemenLs 8,000 7,625 2,065 9,690 10,100 Page 27
Zion Ai"ts Centre Limited knoivn as Z-Arts Notes to the Financial Statements for the Year Ended 31 March 2024 13 T#xatioD Tlie gi'oup is a registered ¢liai'ity. The income gains of the charity are exeiiipl froLn taxation lo the extent tliat they al'e applied to Its charilable objectives. 14 Taiigible fixed assets Gi'oup Stgtlc & Portgble TheAtrÈ Flxtures PIAnt & Equlpment Impi'ovements & Fittliigs MAehRiiei'y Total Stun Studio Cost Ai l April 2023 Additions 227,866 222,656 3,748 443,824 60,922 4,020 ,245 114,938 1,013,304 6,060 71,975 At 31 Marcli 2024 227 866 226,404 504,746 5,265 120.998 1,085,279 Depreciatioii Al l April 2023 ChaT8e for (lie year 211,465 16,401 209,766 10,830 46,851 104,187 3,973 182 27,083 16,479 499,138 148,079 At 11 March 2024 227,866 220,596 151.038 4,155 43,562 647 217 Nel booli value At 31 Marcli 2024 5,808 353,708 77,436 438,062 At 31 March 2023 16,401 12,890 396,973 47 87.855 514,l66 Page 28
Zion Arts Centre Limited known as &Arts Notes to tlie Financial Statenlents for the Year Ei nded 31 mai.ch 2024 Charity St&tic & Poi'table quipment Theati'e Jmprovements Plant & Machillery Stun sthdio Total Cost At l Apiil 2023 Additions 443,824 60,922 114,938 6,060 227.866 222,656 3,748 1,009,284 70,7JO At 31 Marcli 2024 504,746 120,998 227,866 226,404 1,080,014 Deprec14tiJn At l Api'il 2023 Charge foi. th¢ year 46,851 104,187 27,083 16,479 211.465 16,401 209,766 495,165 147,897 At 31 Marcli 2024 151,038 43,562 227,866 220,596 643,062 Net book value At 31 Maich 2024 353,708 77,436 436,952 At 31 Marcli 2023 396 973 16,401 514,119 Is rts¢d Rsset Investments Charity SlIAI'os fln 81'oiip undertAklngs and pArtlclpAtlng Interests Subsidi41y undei'taklng5 Cost At l April 2023 loo loo At 31 March 2024 loo 100 Net book value At 31 Marcli 2024 100 loo A¢ 31 March 2023 100 100 Tlie investment i'eprcsenls l OOYO of ihe Ordinary Share Capitsl of l 00 sliaiu of £1 each of Z-Arts Trading Limited. Z-Arts Ti'ading Limited is a wbolly owned 8ubsidiary of Zion '1S Centre Limited. Thtt siibsidiaiy company is inCOorated in England and Wales. The principal activities during the yeai. werc tl)¢ operation of a cafe bar, Page 29
Zion Arts Centre Liniited known as LArts Notes to the Financial Statements for the Year Ended 31 MaA"cb 2024 16 Stock Group Cliatt'ity 2024 2023 2024 2013 Stocks 6,776 4,814 2,881 17 Debtors Group ChArity 2024 2023 2024 2023 Trade debloi Due fi'om 0Up Undtaki1]SS Otliei. debtors 101,035 53,680 101 131 4,806 67,129 53,680 10,574 24,738 69,609 24,738 170644 78,418 173,066 88,992 18 Cash and cash equlvalents Gi'oup Chg1'Sty 2024 2013 2024 2023 Cash at bantc and in liaftd Shoj'l-tei'm deposi18 88,465 328,972 417,437 53,112 306,824 76,063 328,972 40,296 306,824 359,936 405,035 347.120 Page30
Zion Arts Cenh'e Limited knojvn as Z-Arts Notes to the Financial Statements for the Year Ended 31 mai.ch 2024 19 Ciedltors: umounts falling due within one yenr Gii)up Cliai'ity 2024 2023 2024 2023 Trade creditors Due to group undertakings Trllding subsidiaiy corporation payable Olliei. taxation atid social secwity Ollier creditoi's ACCalS 37,991 38,879 35,923 37,519 (289) 18,640 6,608 110,141 (225) 7,507 2,271 149,011 13,920 5,515 110,141 159,984 149,011 173,091 197.443 192,050 Deferi'ed Ineonie 2024 2023 DefetTed income at l April 2023 Resourees deferred in the pcriod Ainounts rclcased fi'om previous periods Defei'red incoine at year end 70,125 (75,429) 71,296 157,891 (121,110) 33,344 65,992 20 Obllgatloiis under leases OperAtlllg lease eommltments Total fiJ1.e minimum lease paynjents under non-cancellable operating le&8es are as follow.. Gj'oup 2024 2023 othei. Within one year Between Olle and five years 632 843 632 632 1,475 Page31
Zion Arts Centre Limited known as LAI'ts Notes to the Financigdl Statements for the Year Ended 31 March 2024 21 Funds Gi'(bup Balance at I April 2023 Ineomillg resoui'ccs Resources expended BAlance llt 31 mai.cb 2024 Uni'esti'leted funds Geiieral General 259,727 1,163,263 (1,147,200) 275,790 J)esigiiftted Majoi. capital depreciation reseive 192,732 34,561 158,171 Total unresti'lcted funds 452,459 1,163,263 A,181,761 433,96 I Restrlcted fulld8 ACE Capital Cargill Ci'eativc Scotland 4 nalioiis project Children In Need D'oyly Cal'le ERF Danish Cities Esme Fairburn Faiiiily Arts Network Foyle Capilal Garfield Weston GL'ouiid Woi'ks Tesco Cominunity Fund Granada Fnllndation 14atmony Horizons Intenialional Womens NIF Jolin Tliaw Longsigl)l Fainily Hub MCC MADE Fund MCEP Manchestei. Venues Recovery NatioIial Lottery Reach Paiil 14amly Stul) Capital UK Theatres Trust Torevell Pai'Lners 102,940 227,834 12,000 (97,799) {I,000) 232,975 i 1,000 1,020 (1,020) 14,730 14,730 3,000 13,628 3,0(M) 5,979 40,000 (3,000) {10,579) (3,000) (7,872) 3,049 6,825 4,932 40,000 20,000 (20,000) 996 3,000 19,990 462 (996) (3,000) 19,990 (462) (900) (400) (35,734) 900 9,809 10,000 9,409 2,866 28,600 47,189 25,320 25.000 77,300 (32.238) {24,188) {72,125) {20,140) 40,271 812 39,645 34,470 20.I40 1,635 4,600 1,635 4,553 2,000 (2,047) Page 32
Zion Arts Centre Limited known as Z-Arts Notes to the Financial Statements for the Year Ended 31 Mai'ch 2024 B#l2nee at I April 21)23 Incoming i'esources Resources expended Balanee at 31 mai.ch 2024 Youth Music 332 332 Total resti'ieted funds 307,433 455,266 336,832 425,867 Total funds 759,892 1,618,529 1.518,593 859,828 Balonee at 31 Marcli 2023 BAl#Jice at I Api'il 2022 Resouree$ expended resources TrAnsfei's Uni'estricted funds Geiieyftl Geijei'al 300.568 982,755 (1,019,225) (4,371) 259,727 Deslgitftleil Fainily fiiendly escape room Majoi. capital depreciation reseive 20,000 (20,000) 194.799 {26,438 24,371 192,732 214,799 (26,438 4,371 192,732 Total uni'estrlcted funds 515,367 982,755 1,045,663 452 459 RListrieted funds ACE Artist development 57,059 11,715 127,549 (68.774) (24,609) (1,600) ACE Capital BJMM Creative Scotland 4 nations pi'ojecl Curious Minds MCEP D'oyly Cai'te ERF DanislL Citics Esme Fairbui'n Faiiiily Arts Network Foyle Capitsl Gi'ound Works Tesco Community Fund HAF Mcr Active Harold Hyam Wingate fund John Thaw Levi's Music Project MCC MADE Fund MCC Hiwtai 102,940 3,943 4,800 3,500 26,828 {2,923) (14,800) {3,500) (15.700) (12,000) (2,273) ,020 i0,Lo 3,000 2,500 15,000 5,904 40.000 3,000 13,628 3,000 5,979 40,000 2,348 500 (500) (20,962) (2,770) (100) (51,447) (36,400) {2,170) 4,452 2,770 16,510 1,000 29,413 65.000 2,170 900 22,034 28,600 Page 33
Zion Ai'ts Celltre Limited known as LArts Notes to the Financial Statements for the Year Ei nded 31 March 2024 Balance at 31 M41'ch 2023 Balance at I April 2022 Ineoming resourees Resoui'ces expeiided Traiisfers 11,946 (11,946) MCEP Mancliester Venue5 R¢covci-y Mind tlie gap acce8S MCC Play day One McT- Faniily Jam One Mcr- TigeT School Paiil Hanilyn Stuii Capital UK Thcalres Trust Uni Aberstywyth Placement Torev¢ll PathieiB Thi'ive (Young Manchester) Youth Music Winter Festival 49,708 500 (2,519) (500) (2.000) (1,950) (2,999) (80,530) (28,786) 47,189 2,000 1,950 2,999 115,000 34,470 20,140 1,635 48,926 ,635 1,139 5,000 (1,139) {400) (I I,233) (11,717) 4,600 11,233 9,213 2,836 332 TotAI I'esti'lcted funds 266,344 460,038 418,949 307,433 Total funds 781.711 1,442,793 ,464,612 759,892 Fund Restrletions ACE Capital Capital grant to upgi'ade theatre ligbting, improve digitsl infi'astnicture and to build a new cliildi'ei)s libi'ary Cai'gill- Gi'ant to facilitate bright sparks after school programine and to iinprove ¢at¢tin¥ facilities. Children in Need - Gi'ant to eiiable Z-access fun days and &cce&q facilitation in classes. Creative Scotlatld 4 nations project- Fund to support digital perfoiman¢e research D'oyly Carte - Gi'ant to 8UPPOrt Ille delivery of Z-arts Young PerfomieiB participatory arts activities. EPS Danish Cities - Gi7nt to facilitate cultural cxchaiige between Manchesler and Dcnmark Bsme Fall'biirn - Grnnt f. tl]e development oe'knticlioke bearts" xnd a ¢ontribution to tlie childrens libraiy. Family Arts Nctwoik - Giwit to facilitate tIK of a network of family arts organisations. Foyle Capital - Capital grant to upgrade theatre lighiing to digital and build a new chilth'ens libiwy Gaifield Weston- Grant towards Z-arts coir cost and to assist with increased utility costs. Granada Foundation - Gianl to support Big imaEinalions festival. Page 34
Zion Ai'ts Centre Limited known as LArts Notes to the Financial Statements for tIAe Year Ended 31 March 2024 QiY)und Works- Grant to f&¢ilitate environmenlal thed worksbops HAF Mci. Active - To provide Holiday activities to Manchter School children FIarmony Horizons - Grant lo enable provision of early years n]lC PromMe. John Thaw - Contribution towards little itads sessions in the library Longsiglit Conllnunity Hub- Grant to support satellite afterschool clubs MCC Made fijnd - Gran¢ to facilitate projects will)in MADE ManchterS cultural and education paitnei'ship Maiichester LIt.ature Festival - Grant lo support scllools perfomiances of I believe in UnicJ)ms MCEP Mancliestei. Veiiiics Recovery - Mancliesier venues contributions lo fund MADE i8nCheSte1'S cultural aiid education partnership NIF Wintei. Lights - Gi'ant to 8iipport festivc lights switch on event MCC MADE Fund - MCC contribution towards the MADE project MCC Nif Hiwtai - Neighboui'liood investment grant towards Ilulme is where the Arts 16 sumnieifestival MCC Nif Inteinational Wonien's Day - Grant to pi'ovide worksliops and activities to cel¢brat¢ inl¢i'national woinen's day. National Lotteries Reacliing Communilies - Granl to support tlie Briglitsparks cliilditns after school project Paul Hamlyn - 3-yeai' 'arnt for Teni and the Time machine schools Project Stui) Capital - To i'edevelop the Studio iiito a fijlly equipped theatre studio aiid rcfui'bisli the associated offi¢¢s Torevell Partners - GLWlt to suppoit the childrens librAry UK Tlieatr¢8 trus¢- To provide access and enviromncntal improveinents. Youth and Play- Grant to suptK)rt tlle BrAg])tsparks ehildrens after school project Youth Music Grant to facilitate young people niusic project. Page35
Zion Arts Cellti'e Limited knoTrvn as LArts Notes to the Financial Statejnents for the Year Lnded 31 Mai'ch 2024 22 AnAlysi$ of net *$sets behvcen fullds Group Unrestricted funds Genei'al Total funds at 31 March 2024 Restricted flldS Tangible fixed assets Curi'ent a58ets 2,219 431,742 435,843 9,977 438,062 421,765 Total n¢t assets 433,961 425,866 859,827 Unresli'icted funds Gelleral Total funds at Re.sti'icted funds 2023 Tangible fixed assets Current a&8ets 351,083 101,374 163,080 144,354 514,163 245,728 Total net asscls 452,457 307,434 759,891 23 Analysls of chAnges in Net Debt Gi'oup At l Apiil 2023 At 31 March 2024 CAsh floiv Cash at bank and in hand Slioi't-tenn deposits 53,114 306,824 35,351 22,148 88,465 328,972 Net debt 359,938 At l Api%1 2022 417,437 At 31 M#r¢h 2023 Caslifloiv Cash at bank and in harAd short-tli7 deposits 155,419 593,808 {102,305) 286,984) 389 289 53,114 306,824 Net debt 749,227 359,938 Page 36
Zion Arts Centre Limited knoTrvn as &Arts Notes to the Financial Statements for the Yeai. Ended 31 mai.cli 2024 24 Rclattd pai'ty transactions Tlie cliai'ity has a close working relationsliip wilh Maiicliester City Council= this body noininates directoi's (see trustee8 annual i'eport) and provides fundiIig to enable Ilie cliai'ily to cany out its charitable objectives. Income totalling £214,378 (2023., £278,007) has been received during Ihc year. Expellditure lotalling £47,905 (2023.. £52,307) lias beei) incun'ed with Ille related pai'ty during the Y.. Thc balancc outstanding at tlie yeai. end was £45,972 (2023.. £46.122). All the above fvndizising was Teceived either as core or grant funding. This incollJ¢ has bccll included in the financial statements uiider voluntary iiicorne and incoming resources from ehArilable 8Ctivilies. Tlie above expetiditui'e refl¢¢ts invoi¢ed costs in the year. it has been included in the financial statements undei. charitable expenditure. rhe ehai'ity IteeS were not paid or reAmbsed expellses dw'ing the yeai. iii Ilieii. capacity as tiustees. One Irustee was paid £nAI {2023'. £300) for perfoi'mance as a poet. No other cllai'ity tstee received any iiolun)ent or paynienl foi. professional or otlier services. Elizabed) Ransonie As co-cliair of tlie cl)arity and also a leaclier al Cliorltoii High Scljool. Chorlton Higli hired tlie tliealre at Z-ai'ts foi. afternoon scljools pttrfoi'mancc for a fee of £780. Page 37