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2022-03-31-accounts

Registered number: 05465412 Charity number: 1115546

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Company, its Trustees and Advisers 1
Trustees' Report 2 - 11
Independent Auditors' Report on the Financial Statements 12 - 15
Consolidated Statement of Financial Activities 16
Consolidated Balance Sheet 17
Company Balance Sheet 18
Consolidated Statement of Cash Flows 19
Notes to the Financial Statements 20 - 41

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022

Trustees M Gregory, Trustee (appointed 4 January 2022)
R Jones, Trustee (appointed 4 January 2022)
C Sexton, Trustee
H N St Cyr, Trustee
P Gomes, Trustee (appointed 17 March 2022)
R Goldsmith, Trustee
L Earle, Trustee
A Buss, Trustee (resigned 31 October 2022)
A Venkatesh, Trustee
G Singleton, Trustee
K McLay, Trustee
K Donald, Trustee (resigned 20 March 2022)
B Walsh, Trustee (resigned 31 March 2022)
J West, Trustee (resigned 7 September 2022)
M Williams, Trustee (resigned 7 December 2022)
T Pooser, Trustee (appointed 7 September 2021)
B Udeh, Trustee (resigned 10 May 2022)
S Loates, Trustee (resigned 22 July 2022)
J Luke, Trustee (appointed 1 November 2022)
Company registered
number
05465412
Charity registered
number
1115546
Registered office
Quad Market Place
Cathedral Quarter
Derby
DE1 3AS
Chief executive officer
V Malhotra
Independent auditors
PKF Smith Cooper Audit Limited
Statutory Auditors
Prospect House
1 Prospect Place
Millennium Way
Derby
DE24 8HG
Bankers
Barclays Bank UK PLC
Leicester
LE87 2BB

Page 1

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022

The Trustees present their annual report together with the audited financial statements of the Company for the year 1 April 2021 to 31 March 2022. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the Group and the Company qualify as small under section 383 of the Companies Act 2006, the Group Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

a. Policies and objectives

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'. The Trustees believe that the Charity's aims, together with the activities outlined in this report, are demonstrably to the public benefit.

The principal activity of the charity is the promotion of, education in, development of, and appreciation of the arts. This is in accordance with the objects contained in the Memorandum and Articles of Association, the Charity's governing document.

b. Strategies for achieving objectives

QUAD reviews its strategic approach to its objectives annually and believes in an inclusive approach to developing these solutions which improve all staff, directors, and key stakeholders.

Page 2

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Objectives and activities (continued)

c. Activities undertaken to achieve objectives

Investment in staff: a salary benchmarking exercise was undertaken that resulted in a pay increase award for every member of staff, which is significant as some had not seen any increases for 7 years.

A wellbeing survey was developed, which staff completed, and this was followed by several wellbeing focus groups meeting to review outputs from the survey and come up with a QUAD staff engagement action plan.

A staff wellbeing area was created in the main office to provide staff with a pleasant open space where they could sit comfortably and take time away from their workstations to enhance their wellbeing.

The implementation of a revised staffing structure defined team roles and responsibilities and provided more accountability and clarity.

Following the Covid pandemic, hybrid working was developed and introduced to encourage staff to return to work and to provide an added level of flexibility that enhanced work-life balance.

d. Volunteers

The use of volunteers enhances the charity's ability to deliver high quality services to participants and audiences by expanding its work in a cost-effective manner and by bringing new skills, enthusiasm, and a fresh perspective to the organisation. Volunteers are accepted from:

New volunteers must be able to demonstrate a commitment to the aims and objectives of the charity and will be always expected to discharge their duties in accordance with the charity's procedures and policies.

Achievements and performance

a. Review of activities

QUAD like all organisations continued to suffer significant challenges brought on by the Covid-19 pandemic. The venue reopened in May 2021 and experienced further challenges through the Omicron infection during the year. As an organisation that generates a significant proportion of its income from earned sources, QUAD is exponentially affected compared to other charities by a drop off in visitor numbers, that have not yet returned to pre pandemic levels.

The levels of public investment have remained steady, and these are crucial to QUAD’s long-term success. QUAD recognises the challenges all public bodies face and will continue to work in partnership to find the best value and high impact solutions possible with stakeholders and partners in meeting these challenges and providing public benefit through programmes and activities.

QUAD continues to deliver an excellent programme of exhibitions, cinema, education, and digital media activities and is grateful to its highly committed and dedicated staff, advocates, partners, and Board members for their work and support.

Page 3

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Achievements and performance (continued)

b. Key performance indicators

QUAD reopened on 17 May 2021. The related figures for programme activities reflect the closure of the QUAD main building from 1 April – 19 May 2021 (when the main Gallery programme restarted), and the gradual return of customers to in person attendance.

Page 4

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Achievements and performance (continued)

c. Programme highlights

QUAD continued to present a minimum of three exhibitions per year in the main gallery, plus three exhibitions in the extra gallery spaces and several external and touring shows each year. As can be seen from the list of highlights below, it more than fulfilled KPI outcomes in delivering at least two main gallery exhibitions per year that were stated to include artists from black and ethnically diverse, LGBT+ and disabled backgrounds. An effective gender/diverse identity balance was maintained across all exhibitions.

The QUAD Programme Team continued to deliver ground-breaking digital and creative new media exhibitions and commissions, as well as FORMAT Off Year and digital outputs:

Page 5

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Achievements and performance (continued)

d. Fundraising activities and income generation

QUAD raises funds through donations, sponsorship, room hire and events. This also incorporates:

This work is undertaken and overseen by the Senior Management Team at QUAD and direct delivery of activities is managed by QUAD staff. Currently, individual giving activity is focused through online donations via our ticketing website (additional donations can be made as one-off payments as well) and in person in the building.

We monitor progress of funding applications and campaigns through regular meetings that review the status and success/failure of current funding applications.

QUAD has an overarching data protection policy which ensures all activity is compliant with current legislation including GDPR regulations. All fundraising activity is compliant with this policy.

Funds previously raised from Garfield Weston Foundation and Children in Need continued to be applied to the identified project works until their completion.

A further tranche of cultural recovery funds was received during the year.

During the year, TECH:SQUAD, QUAD’s team of artists and technicians, worked with several organisations including Coventry Transport Museum, Herbert Gallery, Lichfield Cathedral, and The National Trust, on contracts that generated over £100,000 income for the organisation. The type of work included outdoor cinema, exhibition installations, augmented reality, hires, and protection mapping. TECH:SQUAD also received funding to purchase projectors and lighting equipment.

The Café Bar reopened on 17th May 2021 under restrictions to capacity and operating table service only until restrictions were relaxed. This limited the number of covers and impacted income that continued an upward trajectory.

The hire of rooms, cinemas and other spaces in the building provided a source of regular income.

Donations and event income was limited.

e. Investment policy and performance

The Trustee' investment powers are governed by the Memorandum and Articles of Association, which permits the charity's funds to be invested in or on such investments, securities, or property, as may be thought fit.

Page 6

DERBY QUAD LIMITED (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Financial review

a. Going concern

In preparing the financial statements the Trustees are required to assess the Company’s and Group’s ability to adopt the going concern basis of accounting. The year has been one of recovery following the various Covid-19 lock downs that impacted the previous periods and the start of the financial year.

The Trustees are satisfied with the way the Group responded to Covid-19 and are thankful to the dedicated staff team for the work done and the public funding provided during this time allowing the Group to be well prepared to return to a more normal environment during the financial year 21/22. Due to the careful management, and the support received from its stakeholders, the Group has maintained its target of an unrestricted reserves balance more than 3 months cost in line with the reserves policy throughout the year. The Charity has also recently received confirmation that it has been successful in securing funding from Arts Council England of £1.4m over the 3-year period to March 2026 which is testament to the hard work of the dedicated team and the quality of the work QUAD delivers across all its activities and programmes.

As at March 2022 and in the period subsequently the attendance and trading activities are not yet back to the levels achieved pre Covid which was the target but there have been steady improvements since the Group could fully re-open.

The economic environment has become challenging with significant levels of inflation putting pressure on the cost of living. The Trustees recognise that the economic environment will impact on the disposable income of the Group’s customers and members and is likely to result in a reduction in future attendance and returns from trading activity. The inflationary pressure on the cost base of the organisation also requires careful management, particularly energy costs, when the organisation comes out of the current energy cap agreements over the next 12 months, and they are expected to increase significantly.

The Trustees have prepared trading forecasts for the period to March 2024, being 15 months from the date the financial statements have been approved and detailed cash flow forecasts for the 12 months to December 2023. These forecasts take account of the current economic conditions and factor in inflationary cost increases and assume funding levels consistent with those achieved historically, with sensitivity applied to the trading income in light of the cost-of-living pressures. The forecasts show that the Group has sufficient funds to discharge its liabilities when they fall due throughout the forecast period.

However, as is common in the charitable sector, the reserves and cash headroom are not of a level that could withstand significant downside sensitivity such as:

Downside sensitivities to the base case forecasts, such as the ones set out above, could require additional funding to be provided by the stakeholders of the Group over and above that is currently agreed or assumed, based on historic levels, or further fundamental changes to the business model will be required. Should such a scenario arise, the Trustees anticipate that such funding would be available given the relationship with stakeholders and support provided to date. However, they recognise that this is not guaranteed, and therefore have concluded that there are matters that indicate the existence of material uncertainties which may cast significant doubt about the Company’s and or Group’s ability to continue as a going concern.

Notwithstanding this material uncertainty, having assessed the likely downside scenarios and the options available to the Group, the Trustees have formed the judgement that it is appropriate to prepare the financial statements on a going concern basis.

Page 7

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

b. Reserves policy

The reserves policy of the charity is to maintain three months net operating costs in unrestricted reserves. Based on the reported results three months operating costs based on staffing, premises and other overhead costs amount to approximately £303,975. The current unrestricted undesignated reserves balance is £353,340 (2021: £411,847).

c. Principal risks and uncertainties

A risk assessment continues to be carried out and monitored during the year by the Board of Trustees who receive a risk matrix at every meeting, and it is anticipated that this process will continue in the future. Key risks are discussed at Board meetings.

The charity will continue to develop systems to monitor and control risks to mitigate any impact they may have on the charity. The Trustees will examine the major risks that the charity faces each financial year when preparing the strategic plan.

d. Principal funding

The directors are satisfied that the charitable company's assets attributable to each of its individual funds are available and adequate to fulfil its obligations in relation to those funds. All funding sourced is managed according to the requirements of the grant application and regulations of the funding body.

Structure, governance and management

a. Constitution

Derby Quad Limited is based at Quad Market Place, Cathedral Quarter, Derby, DE1 3AS. This is also the company's registered office. Derby Quad Limited is a company limited by guarantee (Company Registration No 05465412) and Registered Charity (No 1115546). The Charity was originally incorporated on 27 May 2005 as Derby Visual Arts and Media Centre Limited and changed its name to Derby Quad Limited on 22 November 2005. The Charity's governing document is the Memorandum and Articles of Association as amended by special resolutions dated 27 February 2006 and 13 April 2006. The company registered as a charity on 24 July 2006.

The principal activity of the group was that of running a charity with the aim to promote the education, development, and appreciation of the Arts.

b. Methods of appointment or election of Trustees

The management of the Group and the Company is the responsibility of the Trustees who are elected and coopted under the terms of the Memorandum and Articles of Association.

c. Organisational structure and decision-making policies

The business of the charity is managed by a Board of Trustees consisting of a minimum of six members including not more than one member nominated by Derby City Council. Board Members are elected at the Annual General Meeting and the Board has powers to appoint Board Members at any time. Board Members so appointed hold office until the following AGM, when they become eligible for re-election as follows:

At the time of the third AGM, and at each subsequent AGM, one third of the Directors must retire and are eligible for re-election. However, a director may not serve for more than 9 years in succession nor be reappointed within 1 year thereafter. Trustees who served in the Board of Trustees during the financial period are listed on page 1.

Page 8

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Structure, governance and management (continued)

d. Policies adopted for the induction and training of Trustees

Whenever new Trustees are required, QUAD seeks persons who demonstrate a commitment to the aims and objectives of the charity and who have the specific skills and experience already identified. Following widespread publicising of the posts and receipt of written applications, an informal, first stage selection process is conducted. After a short list procedure, formal interviews will be held.

If the person is then invited to become a trustee and accepts the invitation, they will receive an introduction pack which will include a description of the organisation and its management structure, a description of the duties and responsibilities of Trustees, copies of all the charity's policies and relevant procedures. Trustees will also be offered access to relevant training opportunities both within and outside of the organisation.

e. Pay policy for key management personnel

The Trustees consider the Board of Directors, who are QUAD’s trustees, and the senior management team comprise the key management personnel of the charity in charge of directing and controlling, running, and operating the QUAD on a day-to-day basis.

All Directors give of their time freely and no Director received remuneration in the year. Details of Directors’ expenses and related party transactions are disclosed in the accounts.

The pay of the senior staff is reviewed annually through the appraisal system and any increases, although not regularly made, will be based on significant change to job roles. In view of the nature of the charity, the Directors benchmark against pay levels in other multi artform venues of a similar size with similar income levels.

f. Financial risk management

The Trustees have assessed the major risks to which the Group and the Company are exposed, in particular those related to the operations and finances of the Group and the Company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

Page 9

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Plans for future periods

During these challenging economic times the impact of art and culture on the wellbeing of the population cannot be underestimated. QUAD’s strategic importance to Derby’s cultural offer and the role it plays in the wider cultural life of the UK is highly regarded.

QUAD was delighted to receive confirmation that it has been successful in securing funding from Arts Council England of £1.2m over the next 3 years to March 2026. We will continue to build on our increased profile as a leader in the exploration of digital media in the Midlands. An underlying focus of this is to improve the lives of our audiences through art, film and digital media in a variety of ways with a particular emphasis on deepening the experience that users have with us. Inspired by the world around us, our seasons and vision for our programme will look at community, people and the environment. QUAD’s 2023 – 2024 activities are informed by a world still emerging from the COVID19 pandemic. We will seek to interrogate a ‘new normal’, providing platforms for audiences, artists, creatives, technologists, and educators to share inclusive ways to experience culture. The core of our programme through to March 2026 will focus on education and wellbeing, world-class exhibitions and events programme, with environmental responsibility at the core.

Each year from 2023 to 2026 our programme will pivot around a ‘Summer Season’, with summer 2023 laying the foundations with a ‘Season of Worldbuilding’. These themes will influence and inform each year-long programme, through our Main Gallery and Extra Gallery Spaces exhibitions; Artist Residency/ CPD training; Health & Wellbeing offer; Education engagement, and socially engaged practice elements, to provide an intertwining offer to a broad community of audiences, stakeholders, investors, QUAD staff team and local, national and international creatives.

Key objectives for the Charity over the next year include:

  1. Increase diversity amongst our audiences and enhance our cultural offer;

  2. Continue to increase visitors and audience numbers;

  3. Increase and focus on depth of experience through the programme;

  4. Continue to grow national and international reputation;

  5. Utilise our strengths relating to wellbeing activities to fit in line with City principles and maintain an engaged, motivated and skilled team; and

  6. Evolve the business model to respond to the challenges of the current economic environment.

These will be measured against agreed KPI’s year on year and monitored by the Board of Trustees working closely with the CEO and the executive team. The business plan objectives will be agreed with all stakeholders to ensure they meet the needs of key funders. A full risk register is in place to monitor against risk relating to these areas and this will be reviewed and updated on an ongoing basis. A significant amount of this activity is based on existing best practice and partnerships that can be further developed through this period, including those with Derby City Council, the British Film Institute, Arts Council England and the University of Derby.

Page 10

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Company 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 Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Company 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 Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

Auditors

The auditors, PKF Smith Cooper Audit Limited, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees on 22 December 2022 and signed on their behalf by:

M Gregory

(Chair of Trustees)

Page 11

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DERBY QUAD LIMITED

Opinion

We have audited the financial statements of Derby Quad Limited (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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:

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.

Material uncertainty related to going concern

We draw attention to note 1.2 in the financial statements, which indicates that there remains significant uncertainty around the long term effects of inflation pressures on the global economy and the knock on affect this will have on the Group. As stated in note 1.2, these events or conditions, along with the other matters as set forth in note 1.2, indicate that a material uncertainty exists that may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Page 12

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DERBY QUAD LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in 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:

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the 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's and the 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 Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Page 13

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DERBY QUAD LIMITED (CONTINUED)

Auditors' 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 Auditors' 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Auditors' Report.

Page 14

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DERBY QUAD LIMITED (CONTINUED)

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, and to the charitable company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 Auditors' 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

James Delve (Senior Statutory Auditor)

for and on behalf of

PKF Smith Cooper Audit Limited

Statutory Auditors Prospect House 1 Prospect Place Millennium Way Derby DE24 8HG

22 December 2022

Page 15

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022

Note
Income from:
Donations and legacies
3
Charitable activities
4
Other trading activities
6
Other income
7
Total income
Expenditure on:
Raising funds
Charitable activities
8
Total expenditure
Net income/(expenditure)
Transfers between funds
20
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Restricted
funds
2022
£
-
374,729
-
-
374,729
-
246,754
246,754
127,975
21,075
149,050
17,088
149,050
166,138		 Unrestricted
funds
2022
£
11,894
1,540,272
538,464
7,427
2,098,057
516,622
1,618,867
2,135,489
(37,432)
(21,075)
(58,507)
411,847
(58,507)
353,340		 Total
funds
2022
£
11,894
1,915,001
538,464
7,427
2,472,786
516,622
1,865,621
2,382,243
90,543
-
90,543
428,935
90,543
519,478		 Total
funds
2021
£
25,500
2,058,530
154,325
276
2,238,631
321,062
1,617,114
1,938,176
300,455
-
300,455
128,480
300,455
428,935

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 20 to 41 form part of these financial statements.

Page 16

DERBY QUAD LIMITED (A Company Limited by Guarantee) REGISTERED NUMBER: 05465412

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2022

Note
Fixed assets
Intangible assets
14
Tangible assets
15
Current assets
Stocks
17
Debtors: amounts falling due after more than
one year
18
Debtors: amounts falling due within one year
18
Cash at bank and in hand
Creditors: amounts falling due within one
year
19
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Restricted funds
20
Unrestricted funds
20
Total funds		 10,271
142,732
227,933
345,984
726,920
(437,252)		 2022
£
9,115
220,695
229,810
289,668
519,478
519,478
166,138
353,340
519,478		 7,554
149,866
241,981
542,547
941,948
(635,836)		 2021
£
14,187
108,636
122,823
306,112
428,935
428,935
17,088
411,847
428,935

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees on 22 December 2022 and signed on their behalf by:

M Gregory

(Chair of Trustees)

The notes on pages 20 to 41 form part of these financial statements.

Page 17

DERBY QUAD LIMITED (A Company Limited by Guarantee) REGISTERED NUMBER: 05465412

COMPANY BALANCE SHEET AS AT 31 MARCH 2022

Note
Fixed assets
Intangible assets
14
Tangible assets
15
Investments
16
Current assets
Debtors: amounts falling due after more than
one year
18
Debtors: amounts falling due within one year
18
Cash at bank and in hand
Creditors: amounts falling due within one
year
19
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Restricted funds
20
Unrestricted funds
20
Total funds		 142,732
245,561
241,365
629,658
(339,217)		 2022
£
9,115
212,552
1
221,668
290,441
512,109
512,109
166,138
345,971
512,109		 149,866
236,704
512,775
899,345
(563,561)		 2021
£
14,187
103,009
1
117,197
335,784
452,981
452,981
17,086
435,895
452,981

The Company's net movement in funds for the year was £ 59,128 (2021 - £328,110) .

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees on 22 December 2022 and signed on their behalf by:

M Gregory

(Chair of Trustees)

The notes on pages 20 to 41 form part of these financial statements.

Page 18

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 20 to 41 form part of these financial statements		 2022
£
(52,297)
708
(144,974)
(144,266)
(196,563)
542,547
345,984		 2021
£
395,244
1,042
(9,792)
(8,750)
386,494
156,053
542,547

Page 19

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.

Derby Quad Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.

1.2 Company status

The Company is a company limited by guarantee. The members of the Company are the Trustees named on page 1. In the event of the Company being wound up, the liability in respect of the guarantee is limited to £10 per member of the Company.

1.3 Going concern

In preparing the financial statements the Trustees are required to assess the Company’s and Group’s ability to adopt the going concern basis of accounting. As explained in the Trustee’s report the year has been one of recovery following the various Covid-19 lock downs that impacted previous periods and the start of the financial year presented.

The Trustees are satisfied with the way the Group responded to Covid-19 and are thankful to the dedicated team for the work done and the public funding provided during this time allowing the Group to be well prepared to return to a more normal environment during the financial year 21/22. Due to the careful management and support received from its stakeholders the Group has maintained its target of an unrestricted reserves balance in excess of 3 months cost in line with the reserves policy throughout the year. The Charity has also recently received confirmation that it has been successful in securing funding from Arts Council England of £1.4m over the 3 year period to March 2026 which is testament to the hard work of the dedicated team and the quality of the work QUAD delivers across all of its activities and programmes.

As at March 2022 and in the period subsequently the attendance and trading activities are not yet back to the levels achieved pre Covid which was the target but there have been steady improvements since the Group could fully re-open.

Page 20

DERBY QUAD LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. Accounting policies (continued)

At the time the financial statements are being approved the economic environment is challenging with significant levels of inflation putting pressure on the cost of living. The Trustees recognise that the economic environment will impact on the disposable income of the Group’s customers and members and is likely to result in a reduction in future attendance and returns from trading activity. The inflationary pressure on the cost base of the organisation also requires careful management, particularly energy costs which come out of the current energy cap agreements over the next 12 months and are expected to increase significantly.

The Trustees have prepared trading forecasts for the period to March 2024, being 15 months from the date the financial statements have been approved and detailed cash flow forecasts for the 12 months to December 2023. These forecasts take account of the current economic conditions and factor in inflationary cost increases and assume funding levels consistent with those achieved historically with sensitivity applied to the trading income in light of the cost of living pressures. The forecasts show that the Group has sufficient funds to discharge its liabilities when they fall due throughout the forecast period.

However, as is common in the charitable sector, the reserves and cash headroom are not of a level that could withstand significant downside sensitivity such as:

Downside sensitivities to the base case forecasts, such as the ones set out above, could require additional funding to be provided by the stakeholders of the Group over and above that is currently agreed or assumed based on historic levels or further fundamental changes to the business model will be required. Should such a scenario arise, the Trustees anticipate that such funding would be available given the relationship with stakeholders and support provided to date, however, they recognise that this is not guaranteed and, therefore, have concluded that there are matters that indicate the existence of material uncertainties which may cast significant doubt about the Company’s and or Group’s ability to continue as a going concern.

Notwithstanding this material uncertainty, having assessed the likely downside scenarios and the options available to the Group the Trustees have formed the judgement that it is appropriate to prepare the financial statements on a going concern basis.

1.4 Income

All income is recognised once the Group has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Consolidated Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

Page 21

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. Accounting policies (continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

1.6 Taxation

The Company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

1.7 Intangible assets and amortisation

Intangible assets costing £NIL or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life.

Amortisation is provided on the following basis:

Website - 5 % years

1.8 Tangible fixed assets and depreciation

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Page 22

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. Accounting policies (continued)

1.8 Tangible fixed assets and depreciation (continued)

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

Long-term leasehold property - Over the life of the lease Motor vehicles - 25% Straight Line - Fixtures and fittings 10% - 20% Straight Line - Office equipment 20% Straight Line

1.9 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated Statement of Financial Activities.

Investments in subsidiaries are valued at cost less provision for impairment.

1.10 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

1.11 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.12 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.13 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Statement of Financial Activities as a finance cost.

Page 23

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. Accounting policies (continued)

1.14 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.15 Operating leases

Rentals paid under operating leases are charged to the Consolidated Statement of Financial Activities on a straight-line basis over the lease term.

1.16 Pensions

The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.

1.17 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

2. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions used by the Group are not deemed to have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

3. Income from donations and legacies

Unrestricted Total
funds funds
2022 2022
£ £
Donations 11,894 11,894

Page 24

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

3. Income from donations and legacies (continued)

Unrestricted Total
funds funds
2021 2021
£ £
Donations 25,500 25,500

4. Income from charitable activities

Derby City Council
Derby City Council (rent in kind)
Project grants
Arts Council England
Coronavirus job retention scheme
COVID response funding
Other charitable activities (Note 4)		 Restricted
funds
2022
Unrestricted
funds
2022
£
£
-
100,000
-
260,000
293,971
65,751
-
466,176
-
68,242
-
208,000
80,758
372,103
374,729
1,540,272		 Total
funds
2022
£
100,000
260,000
359,722
466,176
68,242
208,000
452,861
1,915,001
Derby City Council
Derby City Council (rent in kind)
Project grants
Arts Council England
Coronavirus job retention scheme
COVID response funding
Other charitable activities (Note 4)		 Restricted
funds
2021
£
-
-
128,880
-
-
-
106,384
235,264		 Unrestricted
funds
2021
£
100,000
260,000
60,000
466,176
451,053
432,572
53,465
1,823,266		 Total
funds
2021
£
100,000
260,000
188,880
466,176
451,053
432,572
159,849
2,058,530

Page 25

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

5. Income from other charitable activities

Cinema takings
Other fees and commissions
Advertising income
Membership
Workshop/training
Cinema takings
Other fees and commissions
Advertising income
Sponsorship
Membership
Workshop/training		 Restricted
funds
2022
Unrestricted
funds
2022
£
£
-
219,788
80,758
118,471
-
5,570
-
26,173
-
2,101
80,758
372,103
Restricted
funds
2021
Unrestricted
funds
2021
£
£
-
20,078
106,384
20,578
-
508
-
700
-
10,218
-
1,383
106,384
53,465		 Total
funds
2022
£
219,788
199,229
5,570
26,173
2,101
452,861
Total
funds
2021
£
20,078
126,962
508
700
10,218
1,383
159,849

Page 26

DERBY QUAD LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

6. Trading activities

The wholly owned subsidiary, Derby Quad Enterprises Limited (company number 06643908), is incorporated in the UK and distributes all of its profits to the Charity under the gift aid scheme. The Company operates the cafe, bar and hire activities at the Quad. The Charity owns 100% of the ordinary share capital of the Company. A summary of trading results pre distribution to the Charity is shown below. The amount of gift aid from the subsidiary was £13,968 (2020: £Nil).

Unrestricted
funds 2022
£
Cafe bar income
309,646
Advertising
1,100
Room hire
88,319
Tech Squad and Game Time
56,783
Sponsorship
10,680
Workshop/training
55,889
Shop income
16,047
538,464
Marketing costs
(110)
Premises costs
(6,709)
Other trading costs
(247,118)
Professional fees and board expenses
(48)
Wages, national insurance and pension
(260,590)
Depreciation
(2,047)
Interest payable
-
(516,622)
21,842		 Total funds
2022
£
309,646
1,100
88,319
56,783
10,680
55,889
16,047
538,464
(110)
(6,709)
(247,118)
(48)
(260,590)
(2,047)
-
(516,622)
21,842

The trading subsidiary also received government grants totalling £23,541 (2020:£139,082) which is included in Note 3.

Page 27

DERBY QUAD LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Unrestricted
funds 2021
£
Charity trading income
-
Cafe bar income
44,688
Room hire
2,266
Tech Squad and Games Time
91,682
Sponsorship
13,542
Workshop/training
(600)
Shop income
2,747
154,325
Charity trading expenses
-
Marketing costs
(276)
Premises costs
(943)
Other trading costs
(90,750)
Professional fees and board expenses
(48)
Wages, national insurance and pension
(226,917)
Depreciation
(1,985)
Interest payable
(143)
(321,062)
(166,737)
2022
£
The assets and liabilities of the subsidiary are:
Assets
185,951
Liabilities
(178,585)
Total net assets
7,366		 Total funds
2021
£
-
44,688
2,266
91,682
13,542
(600)
2,747
154,325
-
(276)
(943)
(90,750)
(48)
(226,917)
(1,985)
(143)
(321,062)
(166,737)
2021
£
84,828
(108,877)
(24,049)

Page 28

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

7. Other incoming resources

Other income
Other income		 Unrestricted
funds
2022
£
7,427
Unrestricted
funds
2021
£
276		 Total
funds
2022
£
7,427
Total
funds
2021
£
276

8. Analysis of expenditure on charitable activities

Summary by fund type

Charitable activities
Charitable activities		 Restricted
funds
2022
Unrestricted
funds
2022
£
£
246,754
1,618,867
Restricted
funds
2021
Unrestricted
funds
2021
£
£
265,285
1,351,829		 Total
2022
£
1,865,621
Total
2021
£
1,617,114

Page 29

DERBY QUAD LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

9. Charitable activities expenditure

Other direct costs
Arts programme & activity
Brochures and materials
Support costs (Note 9)
Governance costs (Note 9)
Wages and salaries
National insurance
Pension costs
Interest payable		 2022
£
53,241
451,772
-
1,167,265
48,636
115,232
25,130
4,345
-
1,865,621		 2021
£
124,143
262,594
720
1,013,907
42,246
135,241
30,844
4,364
3,055
1,617,114

10. Analysis of governance and support costs

Office costs
Premises costs and insurance
Professional fees and board expenses
Wages and salaries
National insurance
Pension
Depreciation and amortisation		 General
support
2022
£
27,075
513,151
15,036
549,778
16,559
17,425
28,241
1,167,265		 Governance
function
2022
£
1,128
21,381
627
22,907
690
726
1,177
48,636		 Total
funds
2022
£
28,203
534,532
15,663
572,685
17,249
18,151
29,418
1,215,901

Page 30

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

General
support
2021
£
Office costs
(698)
Premises costs and insurance
420,576
Professional fees and board expenses
12,461
Wages and salaries
533,088
National insurance
7,524
Pension
17,977
Depreciation and amortisation
22,979
1,013,907
11.
Auditors' remuneration
Fees payable to the Company's auditor for the audit of the Company's
annual accounts
12.
Staff costs
Group
Group
2022
2021
£
£
Wages and salaries
932,660
907,005
Social security costs
53,304
45,217
Contribution to defined contribution pension
schemes
27,418
27,008
1,013,382
979,230		 Governance
function
2021
£
(29)
17,524
519
22,212
314
749
957
42,246
2022
£
7,500
Company
2022
£
687,917
42,379
22,496
752,792		 Total
funds
2021
£
(727)
438,100
12,980
555,300
7,838
18,726
23,936
1,056,153
2021
£
7,500
Company
2021
£
690,541
38,682
23,090
752,313

In addition to the amounts disclosed above the Company and Group also incurred £74,806 (2021: £80,267) of wages costs that are included in Arts programme and activity costs.

The average number of persons employed by the Company during the year was as follows:

Charitable activities
Management and administration		 Group
2022
No.
64
9
73		 Group
2021
No.
76
7
83		 Company
2022
No.
45
9
54		 Company
2021
No.
53
7
60

Page 31

DERBY QUAD LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

12. Staff costs (continued)

No employee received remuneration amounting to more than £60,000 in either year.

The key management personnel of Derby Quad Limited comprise of the CEO, Artistic Director, Marketing Manager, Accounts Manager, Technical Services Manager, Format Director, Programme Manager, HR Manager and two Visitor Services Managers. The total amount of employee benefits received by key management personnel is £229,197 (2021: £191,727).

13. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL) .

During the year ended 31 March 2022, no Trustee expenses have been incurred (2021 - £NIL) .

14. Intangible assets

Group
Cost
At 1 April 2021
At 31 March 2022
Amortisation
At 1 April 2021
Charge for the year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Website
£
25,360
25,360
11,173
5,072
16,245
9,115
14,187

Page 32

DERBY QUAD LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

14. Intangible assets (continued)

Company
Cost
At 1 April 2021
At 31 March 2022
Amortisation
At 1 April 2021
Charge for the year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Website
£
25,360
25,360
11,173
5,072
16,245
9,115
14,187

15. Tangible fixed assets

Group

Cost
At 1 April 2021
Additions
Disposals
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
On disposals
At 31 March 2022		 Long term
leasehold
property
£
266,434
-
-
266,434
198,086
3,107
-
201,193		 Cinema and
other
equipment
£
395,296
11,083
(5,641)
400,738
367,433
12,312
(5,641)
374,104		 Fixtures and
fittings
£
195,921
14,112
-
210,033
193,643
1,144
-
194,787		 Office
equipment
£
372,400
119,779
-
492,179
362,253
16,352
-
378,605		 Total
£
1,230,051
144,974
(5,641)
1,369,384
1,121,415
32,915
(5,641)
1,148,689

Page 33

DERBY QUAD LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

15. Tangible fixed assets (continued)

Group (continued)

Net book value
At 31 March 2022
At 31 March 2021		 Long term
leasehold
property
£
65,241
68,348		 Cinema and
other
equipment
£
26,634
27,863		 Fixtures and
fittings
£
15,246
2,278		 Office
equipment
£
113,574
10,147		 Total
£
220,695
108,636

Page 34

DERBY QUAD LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

15. Tangible fixed assets (continued)

Company

Cost
At 1 April 2021
Additions
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Long term
leasehold
property
£
266,434
-
266,434
198,086
3,107
201,193
65,241
68,348		 Cinema and
other
equipment
£
370,173
7,688
377,861
347,937
10,321
358,258
19,603
22,236		 Fixtures and
fittings
£
180,265
12,945
193,210
177,987
1,089
179,076
14,134
2,278		 Office
equipment
£
372,400
119,779
492,179
362,253
16,352
378,605
113,574
10,147		 Total
£
1,189,272
140,412
1,329,684
1,086,263
30,869
1,117,132
212,552
103,009

Page 35

DERBY QUAD LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

16. Fixed asset investments

Company
Cost
At 1 April 2021
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Investments
in
subsidiary
companies
£
1
1
1
1

Principal subsidiaries

The following was a subsidiary undertaking of the Company:

Name Company Registered office or principal office or principal Class of Holding
number place of business shares
Derby Quad Enterprises 06643908 Quad Market Place, Cathedral Ordinary 100%
Limited Quarter, Derby, DE1 3AS
The financial results of the subsidiary for the year were:
Name Income Expenditure Profit/(Loss) Net assets
£ £ / Surplus/ £
(Deficit) for
the year
£
Derby Quad Enterprises Limited 562,005 (516,622) 45,383 7,366
17. Stocks
Group Group
2022 2021
£ £
Shop and cafe stock 10,271 7,554

Page 36

DERBY QUAD LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

18. Debtors

Due after more than one year
Other debtors
Due within one year
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income
Grants receivable		 Group
2022
£
142,732
Group
2022
£
74,677
-
23,299
40,876
89,081
227,933		 Group
2021
£
149,866
Group
2021
£
81,473
-
70,151
40,270
50,087
241,981		 Company
2022
£
142,732
Company
2022
£
22,341
80,550
23,295
30,294
89,081
245,561		 Company
2021
£
149,866
Company
2021
£
62,966
36,602
55,551
31,498
50,087
236,704

19. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 Group
2022
£
115,461
33,495
10,887
277,409
437,252		 Group
2021
£
147,826
69,343
12,308
406,359
635,836		 Company
2022
£
95,506
13,283
6,712
223,716
339,217		 Company
2021
£
140,511
37,186
11,198
374,666
563,561

Page 37

DERBY QUAD LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

20. Statement of funds

Statement of funds - current year

Unrestricted funds
Reserves
Restricted funds
Other projects and grants
FORMAT Festival
Capital grants
Total of funds		 Balance at 1
April 2021
£
411,847
-
-
17,088
17,088
428,935		 Income
£
2,098,057
251,945
52,784
70,000
374,729
2,472,786		 Expenditure
£
(2,135,489)
(177,869)
(63,091)
(5,794)
(246,754)
(2,382,243)		 Transfers
in/out
£
(21,075)
10,768
10,307
-
21,075
-		 Balance at
31 March
2022
£
353,340
84,844
-
81,294
166,138
519,478

Page 38

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

20. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
Reserves
Restricted funds
Other projects and grants
FORMAT Festival
Capital grants
Total of funds		 Balance at
1 April 2020
£
110,579
-
-
17,901
17,901
128,480		 Income
£
2,003,367
148,828
86,436
-
235,264
2,238,631		 Expenditure
£
(1,672,891)
(148,828)
(115,644)
(813)
(265,285)
(1,938,176)		 Transfers
in/out
£
(29,208)
-
29,208
-
29,208
-		 Balance at
31 March
2021
£
411,847
-
-
17,088
17,088
428,935

The specific purpose for which the funds are to be applied are as follows:

Unrestricted funds represent those resources which may be used towards meeting any of the charitable objectives at the discretion of the Trustees.

Restricted funds comprise of grants for specific projects or capital purchases and will only be used for the purpose that the grants were intended.

The transfer out of other projects and grants is for the allowable project expenditure that is included in unrestricted expenditure such as wages and other overheads.

The transfer in to the FORMAT fund is the Charity's contribution to the festival from unrestricted reserves.

Page 39

DERBY QUAD LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

21. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Intangible fixed assets
Debtors due after more than one year
Current assets
Creditors due within one year
Total		 Restricted
funds
2022
Unrestricted
funds
2022
£
£
81,294
139,401
-
9,115
-
142,732
84,844
513,312
-
(451,220)
166,138
353,340		 Total
funds
2022
£
220,695
9,115
142,732
598,156
(451,220)
519,478

Analysis of net assets between funds - prior year

Tangible fixed assets
Intangible fixed assets
Debtors due after more than one year
Current assets
Creditors due within one year
Total		 Restricted
funds
2021
£
17,088
-
-
-
-
17,088		 Unrestricted
funds
2021
£
91,548
14,187
149,866
792,082
(635,836)
411,847		 Total
funds
2021
£
108,636
14,187
149,866
792,082
(635,836)
428,935

22. Pension commitments

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £27,418 (2021: £27,008). Contributions totalling £9,254 (2021: £6,553) were payable to the fund at the balance sheet date and are included in creditors.

Page 40

DERBY QUAD LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

23. Operating lease commitments

At 31 March 2022 the Group and the Company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 Group
2022
£
8,031
3,168
11,199		 Group
2021
£
8,031
11,652
19,683		 Company
2022
£
8,031
3,168
11,199		 Company
2021
£
8,031
11,652
19,683

24. Related party transactions

Information about related party transactions and outstanding balances is outlined below:

University of Derby Theatre Limited (a
company with a director in common)
- At 31 March 2022
- At 31 March 2021
Derby Museums (a company with a director in
common)
- At 31 March 2022
- At 31 March 2021
B M Walsh (director)
- At 31 March 2022
- At 31 March 2021
Geldards LLP (a partnership with a director in
common)
- At 31 March 2022: None
- At 31 March 2021
H Herve-Petts (Key management)
- At 31 March 2022: None
- At 31 March 2021		 Income
£
9,339
5,000
4,000
4,000
400
-
400
-
23,139		 Expenditure
£
-
-
-
-
-
-
1,200
-
1,200		 Debtors
£
9,339
-
-
-
-
400
-
-
9,739		 Creditors
£
-
-
-
-
-
-
1,200
23
1,223

25. Company limited by guarantee

Derby Quad Limited is a company limited by guarantee and accordingly does not have share capital.

Every member of the Company undertakes to contribute such an amount as may be required not exceeding £10 to the assets of the charitable company in the event of it being wound up while he or she is a member, or within one year after he or she ceases to be a member.

Page 41