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2021-08-31-accounts

REGISTERED COMPANY NUMBER: 05907385 (England and Wales) REGISTERED CHARITY NUMBER: 1121751

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

FOR

NEXUS INSTITUTE OF CREATIVE ARTS

Harrison Beale & Owen Limited Chartered Accountants and Statutory Auditor Highdown House 11 Highdown Road Leamington Spa Warwickshire CV31 1XT

NEXUS INSTITUTE OF CREATIVE ARTS

CONTENTS OF THE FINANCIAL STATEMENTS for the year ended 31 August 2021

Page
Report of the Trustees 1 to 9
Report of the Independent Auditors 10 to 11
Statement of Financial Activities 12
Balance Sheet 13 to 14
Cash Flow Statement 15
Notes to the Cash Flow Statement 16
Notes to the Financial Statements 17 to 25
Detailed Statement of Financial Activities 26 to 27

1

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2021

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTVITIES

Vision and objectives

To be Europe’s leading Christian institute for vocational arts and technology training.

Nexus is called to be a premier, global Christian institute known for the integration of faith, discipleship and vocational training in the service of God’s people, His Church and society.

Our mission

Through excellent training programs and comprehensive discipleship, Nexus leads Christian musicians and technicians from diverse background into an understanding of the full gospel of Jesus Christ; builds spiritual and musical foundations into individuals, essential for realising their full potential in life; and releases students into active participation in the building of God’s Kingdom across the whole Earth.

Public benefit

The trustees of the charity have had due regard to the Charity Commission guidance concerning public benefit.

ACHIEVEMENTS AND PERFORMANCE

Student numbers

The year 2020/21 began with 92 students across four programmes of study. The MMus number represents 5 full-time and 5 part-time students.

Total
BA (Hons)
BA (Hons) Event
BA (Hons)		 Total
BA (Hons)
BA (Hons) Event
BA (Hons)		 Total
BA (Hons)
BA (Hons) Event
BA (Hons)		 Total
BA (Hons)
BA (Hons) Event
BA (Hons)
Popular Music &
Worship
Technology
Songwriting
Level 4 34
28		 3 3
Level 5 32
32		 - -
Level 6 16
16		 - -
Level 7 (MMus) 10
-		 - -

Progression

Of those 92 students 88% of Level 4 and 100% of Level 5 progressed to the next year of their studies.

Total
BA (Hons) Popular
BA (Hons) Event
BA (Hons)		 Total
BA (Hons) Popular
BA (Hons) Event
BA (Hons)		 Total
BA (Hons) Popular
BA (Hons) Event
BA (Hons)		 Total
BA (Hons) Popular
BA (Hons) Event
BA (Hons)		 Total
BA (Hons) Popular
BA (Hons) Event
BA (Hons)

Music & Worship
Technology
Songwriting
Level 4
 30 24 3 3
Level 5
 32 32 - -

Continuation

100% of part-time students continued with their studies.

Total

Level 7 (MMus) 5

2

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2021

ACHIEVEMENTS AND PERFORMANCE (continued)

Student attainment

2020/21 saw a 100% graduation rate, 87% of which with a ‘Good Degree’ (Upper Second or First).

This was a particularly strong year compared to previous years. It should be noted that even though the number of Lower Second or Ordinary degrees being awarded is low, this number is made up of 100% Ordinary Degrees, that is degrees awarded without Honours, a qualification to those who have not completed the full diet of study for an BA (Hons).

By way of comparative data, this academic year demonstrates a significant improvement in student attainment from previous years.

3

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2021

ACHIEVEMENTS AND PERFORMANCE (continued)

Student attainment (continued)

Our results in this academic year track nicely ahead of the national average in HE for this same year.

Please note, the student numbers on this academic year were particularly low, which impacts the comparative figures .

Graduation celebration

Thanks to the pandemic restrictions lifting, a graduation ceremony was held by UWL in December for students from this and the previous academic year. It was a particularly special occasion to celebrate two years of achievement and many of the graduating students from the year before we had not seen for a long time.

Due to an outbreak of Covid-19 within the Nexus ICA community an in-person celebration was cancelled but we joined together online.

Recruitment

With uncertainty continuing around Covid 19, recruitment continued to be an area of difficulty. The Higher Education Sector came under scrutiny from the press and did not necessarily emerge in a good light. At Nexus ICA, the student experience was wholly different to that reported in the press, we nonetheless suffered the impact of that and received a higher than average number of withdrawals and deferrals from students accepted to study in the 20-21 academic year.

Engagement on socials and website saw an increase, and further spending was allocated towards the area to try to boost recruitment. A new website was planned for release in the academic year 21-22.

Social media followers

The figures below are as of August in each academic year.

2019/20 2020/21 Growth
Facebook 3,663 3,891 6.2% increase
Instagram 2,342 2,591 10.6% increase

4

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2021

ACHIEVEMENTS AND PERFORMANCE (continued)

Recruitment (continued)

Website Visitors

The target of 5,138 visitors for 2020-21 was achieved by November 2020. In the previous year this target wasn’t reached until April.

reached until April.
2019/20 2020/21 Growth
Total web visits 22,160 33,425 51% increase

Our intended goal of increasing recruitment was not met, and discussions started in August 2021 at Board and Senior Leadership level regarding the future sustainability of Nexus ICA as an ongoing business.

Student experience

Despite discouraging recruitment figures, student feedback concerning experience remains strong, and staff response to feedback remains consistent in application.

Fundraising and additional streams of income

For the second year in a row, fundraising activities were curtailed but not the extent of the 2019-20 academic year.

In consultation with students and stakeholders, a fundraising ‘RAG’ week took place in June 2021. Three events took place:

Yorkshire Three Peaks Hike Coast to Coast Cycle Heart of England Way Walking Relay

Our fundraising target was £15,000 . Our total fundraising revenue from the three events was £14,234.96. After expenses this was £11,401.66

We did not achieve our target for fundraising but the final total of £11k was a good amount to reach after a complete break in the previous year. Trustees and Senior Leadership Team began discussions on employing a fundraiser and beginning a high profile fundraising event in the near future.

It was agreed that fees for students would be increased in line with the University’s procedures and policies, from September 2021. The fees were set at £7,500 for Undergraduate study and £8,000 for Post Graduate.

Staff and student development

Staff development

As ever Nexus ICA staff continue to push themselves academically and creatively and this year was no different.

Daniel Meakin presented his conference paper ‘The wireless handheld microphone as a symbol of spiritual authority: a comparison between western and African church practice’ at Birmingham University in October.

Assistant Principal Hannah Proudfoot completed her undergraduate degree in Management & Leadership in November with a first.

Daniel Johnson continues to grow as voice in the faith-based academic community with several presentations, publications or panels in his name during this year.

Lecturer Joel Payne and his worship organisation Resound released their album Doxecology. Thirteen new, congregational worship songs that celebrate the wonder of creation, acknowledge our failures, and anticipate a glorious restoration in Christ.

5

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2021

ACHIEVEMENTS AND PERFORMANCE (continued)

Creative arts

Nexus Christmas show

Although we were hoping to host an onsite and online Christmas show, guidance for the Higher Education Sector recommended no extra curricular events should take place. Instead, the Director of Creative Arts organised a selection of online Christmas collaborations which included Alumni members. This made an excellent contribution to the strategy of strengthening relationships with Nexus Alumni.

The Nexus Virtual Christmas Overture featured students and staff past and present from all around the globe, including South Africa, USA, Germany, the Netherlands and the UK.

End of year show

Extensive preparations were made for an End of Year Show, but it was cancelled due to a Covid case in the staff body. The safety of our guests and students was considered greater than the opportunity of running the show. Requests were sent out to guests to ask for a donation of their previously purchased tickets since plans for fund-raising announcements were curtailed.

Staff continued to encourage creativity within allowed boundaries as they had done in the previous year:

Updates to facility

During the Academic year 2020-21 we were able to complete several larger projects. Right at the beginning of the year we were able to replace the back door, rework the disabled toilet and add a power assisted door mechanism from reception to the corridor to improve accessibility around the building.

Early on in the year we also removed the old built in stage and replaced it for a new steel deck platform to help improve our performance area. We were then able, over the summer, to reconfigure the reception area, moving the admin office into the old female toilet, allowing us to add a more suitable meeting room off the reception area.

In addition to these projects, we continued with ongoing upkeep and decoration to the building throughout the year.

Impact of Covid-19 pandemic

Although a situation that was managed very well by Senior Leadership Team and staff, this continued to have an impact. Face to face sessions were restored where appropriate, and social distancing remained in place for the whole year. Remote lectures and remote support continued, and an extensive review of online provision was carried out, resulting in some changes to the teaching approach. The gradual return to face to face classes was planned and executed while ensuring boundaries and the preference of students was maintained. Classes and other sessions continued to be streamed online until the end of the academic year for those isolating or who needed a gradual return for personal reasons.

Virtual Open Days continued, with a hope that in person Open Days will commence in September of 2021.

The Leadership Team and Site Management team did an excellent job keeping up with changes, recommendations and requirements. A full daily cleaning schedule continues.

Extra-curricular activity was again either curtailed or cancelled for a second year. Since these opportunities form a vital part of the student-centred learning environment we provide, it has been increasingly difficult to maintain a sense of community and to track growth and developing maturity in students.

Although a business case was re-written and put forward for the Postgraduate Degree in Contemporary Worship Studies it was agreed by the Trustees and by the University that this should be indefinitely paused until a greater level of financial stability and student numbers is achieved.

6

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES

for the year ended 31 August 2021

FINANCIAL REVIEW

Reserves policy

In line with Charities Commission guidelines, Nexus ICA keep a minimum of 3 months operating costs in strategic reserve. Funds in excess of three months operating costs have been held to mitigate against delays in the receipt of student fees payment from The University of West London for Quarter 1 of the financial year where cash flow is historically at its lowest point. At 31 August 2021 general funds were £729,779 (2020: £758,464) and restricted funds were £2,686 (2020: £2,686).

Principal risks and uncertainties

The trustees have conducted their own review of the major risks to which the charity is exposed and systems have been implemented to mitigate those risks.

General considerations of risk and student numbers:

The main risk to sustainability is student numbers not hitting target or a number of students dropping out. The risk analysis factors in a 10% shortfall in student recruitment year on year plus a small percentage of students who leave the course early. It also includes a consideration for bad debt.

This can be mitigated by monitoring student numbers and staying on target with business plans to ensure targets are hit. The recruitment process involves reporting back on levels of applications, interviews and acceptances throughout the year as well as tracking it in relation to previous years.

As part of the management process, reports are prepared and presented to the Board ahead of each meeting throughout the year where adherence to the budget is monitored. These reports include historical data as well as forward cash flow projections which enable the board to make decisions on expenditure and, where necessary, instruct revised budgets to be drawn up.

Insufficient fund raising

After staffing costs, the biggest expenditures are facilities upgrades and updates. The Board’s Fundraising Strategy addresses the need to raise funds for such expenditure; however the Board reserve the right to recommend a delay in facilities expenditure except where necessary upgrades or repair are unavoidable.

If CAS allocation is withdrawn or Tier 4 license revoked

Currently, levels of international students are low enough not to impact the budget in an unmanageable way should Tier 4 be removed. Since Nexus ICA is a franchised partner of UWL, the students are UWL students and transfer onto a UWL course would be available within the 60-day time frame. This is low risk because we have successfully operated our license for several years. The small number of international students’ currently attending means the impact is relatively low and investment decisions can be deferred.

In the event of other business interruptions or financial difficulties

As part of the provision within the franchise agreement, UWL receives the fees from the Student Loan Company. Since 50% of fees are not paid out till May of the academic year it allows them to make provision for continuation should Nexus ICA cease trading for any reason. UWL would then deliver the course from London or transfer students onto one of their other courses. Nexus ICA’s insurance policy also includes Business Interruption cover in the event of Force Majeure.

PLANS FOR FUTURE PERIODS

While we have seen many successes, personal stories of transformation and a continuation of excellent pastoral support, the year has not been without its challenges. A decreasing student body naturally means decreased income and we have spent much of the year looking for ways that this can be mitigated, while still continuing with our vision to offer distinctively Christian, and distinctively different education within the Higher Education Sector.

Alongside many other Higher Education providers, we are considering our current situation with sober assessment. Plans for the future will include continuing to discuss business cases with our validating University, re-examining our business plans and recruitment strategy and strengthening current courses.

We continue to celebrate the achievements and highlights of the year, which all revolve around the growth and development of our staff and students.

7

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

The charity is a company limited by guarantee, incorporated on 16 August 2006, governed by its Memorandum and Articles of Association and became registered as a charity on 29 November 2007. The charity was formerly known as 'Nexus Trust' before officially changing its name to 'Nexus Institute of Creative Arts' on 19 February 2014.

Organisation and structure

The trustees who have served during the year and since the year end are shown on page 9. The trustees are appointed by the existing board of trustees and meet on a regular basis in order to oversee the work of the charity. The trustees delegate the day to day running of the organisation to a senior leadership team who are in turn responsible to the body of trustees. The trustees have the power to invest the resources of the organisation in such assets as they see fit.

Recruitment of trustees

With one resignation and one appointment, the Board has remained small but continues to be effective. Communication between Board members is frequent and transparent and working relationship with the Principal remains strong, with frequent meetings and discussions.

Induction and training of new trustees

New trustees are appointed by the existing trustees. The trustees are given an introduction to the Charity and are given the guidance from the Charity Commission on the roles and responsibilities of trustees. All trustees are reminded to monitor the Charity Commission's website for any updates of these responsibilities on a regular basis.

Key management remuneration

Remuneration for key management personnel is set as part of the annual budget process with reference to benchmarking of pay and benefits for similar organisations.

Health and Safety

Risk assessments, facility management, policies and protocols continued to be under constant review due to the Pandemic. The Board were kept updated on the developments and face to face classes were resumed in part towards the end of the year.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

05907385 (England and Wales)

Registered Charity number 1121751

Registered office

Astoria House 71 Albany Road Coventry West Midlands CV5 6JR

Auditors

Harrison Beale & Owen Limited Chartered Accountants and Statutory Auditor 11 Highdown Road Leamington Spa Warwickshire CV31 1XT

8

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES

for the year ended 31 August 2021

REFERENCE AND ADMINISTRATIVE DETAILS (continued)

Bankers

National Westminster Bank 118 Walsgrave Road Coventry West Midlands CV5 6JR

Trustees

Kate Silber (Executive Chair) David Bertram Jet Jones (resigned 24 May 2021) Matthew Ling Rachel Dekam (appointed 24 May 2021)

Senior Leadership Team

Matthew Cossey (Interim Principal) Hannah Proudfoot (Assistant Principal) Matthew Donald (Assistant Principal)

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Nexus Institute Of Creative Arts for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

Approved by order of the board of trustees on 12 May 2022 and signed on its behalf by:

........................................................................ D Bertram - Trustee

9

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF NEXUS INSTITUTE OF CREATIVE ARTS

Opinion

We have audited the financial statements of Nexus Institute Of Creative Arts (the 'charitable company') for the year ended 31 August 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, 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 (United Kingdom Generally Accepted Accounting Practice).

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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

However not all future events or conditions can be foreseen. The COVID-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the charitable company and the wider economy. The trustee's views on the impact of COVID-19 are disclosed in note 2 of the notes to the financial statements.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

10

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF NEXUS INSTITUTE OF CREATIVE ARTS

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, 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 charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 a Report of the Independent Auditors 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.

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

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 Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with 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 trustees 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 the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

for and on behalf of Harrison Beale & Owen Limited Chartered Accountants and Statutory Auditor Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Highdown House 11 Highdown Road Leamington Spa Warwickshire CV31 1XT

12 May 2022

11

NEXUS INSTITUTE OF CREATIVE ARTS

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 August 2021

Unrestricted
funds
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
67,123
Charitable activities
6
Tuition and performance
567,683
Other trading activities
4
14,160
Investment income
5
11
Total
648,977
EXPENDITURE ON
Charitable activities
7
Tuition and performance
679,912
NET INCOME/(EXPENDITURE)
(30,935)
Transfers between funds
20
2,250
Net movement in funds
(28,685)
RECONCILIATION OF FUNDS
Total funds brought forward
758,464
TOTAL FUNDS CARRIED FORWARD
729,779		 Restricted
funds
£
2,250
-
-
-
2,250
-
2,250
(2,250)
-
2,686
2,686		 2021
Total
funds
£
69,373
567,683
14,160
11
651,227
679,912
(28,685)
-
(28,685)
761,150
732,465		 2020
Total
funds
£
38,706
638,371
75
17
677,169
712,510
(35,341)
-
(35,341)
796,491
761,150

12

NEXUS INSTITUTE OF CREATIVE ARTS

BALANCE SHEET 31 August 2021

Notes
FIXED ASSETS
Tangible assets
14
CURRENT ASSETS
Debtors
15
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
16
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one year
17
NET ASSETS
FUNDS
20
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Unrestricted
funds
£
689,160
38,600
281,805
320,405
(75,884)
244,521
933,681
(203,902)
729,779		 Restricted
funds
£
-
-
2,686
2,686
-
2,686
2,686
-
2,686		 2021
Total
funds
£
689,160
38,600
284,491
323,091
(75,884)
247,207
936,367
(203,902)
732,465
729,779
2,686
732,465		 2020
Total
funds
£
700,303
48,825
300,536
349,361
(65,941)
283,420
983,723
(222,573)
761,150
758,464
2,686
761,150

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2021.

The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.

The trustees acknowledge their responsibilities for

These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011.

13

NEXUS INSTITUTE OF CREATIVE ARTS

BALANCE SHEET - continued 31 August 2021

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

The financial statements were approved by the Board of Trustees and authorised for issue on 12 May 2022 and were signed on its behalf by:

............................................. D Bertram - Trustee

14

NEXUS INSTITUTE OF CREATIVE ARTS

CASH FLOW STATEMENT for the year ended 31 August 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Net cash provided by/(used in) operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of tangible fixed assets
Interest received
Net cash used in investing activities
Cash flows from financing activities
New loans in year
Loan repayments in year
Net cash (used in)/provided by financing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2021
£
18,676
(10,123)
8,553
(14,585)
3,567
11
(11,007)
-
(13,591)
(13,591)
(16,045)
300,536
**284,491 **		 2020
£
(44,862)
(10,542)
(55,404)
(12,336)
300
17
(12,019)
25,000
(12,729)
12,271
(55,152)
355,688
300,536

15

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE CASH FLOW STATEMENT for the year ended 31 August 2021

1. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net expenditure for the reporting period (as per the Statement of
Financial Activities)
Adjustments for:
Depreciation charges
Loss/(profit) on disposal of fixed assets
Interest received
Interest paid
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash provided by/(used in) operations		 2021
£
(28,685)
21,751
410
(11)
10,123
10,225
4,863
18,676		 2020
£
(35,341)
20,639
(300)
(17)
10,542
(32,457)
(7,928)
(44,862)

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.20 Cash flow At 31.8.21
£ £ £
Net cash
Cash at bank and in hand 300,536 (16,045) **284,491 **
300,536 **(16,045) ** **284,491 **
Debt
Debts falling due within 1 year (15,649) (5,079) (20,728)
Debts falling due after 1 year (222,573) 18,671 (203,902)
(238,222) **13,592 ** (224,630)
Total 62,314 **(2,453) ** **59,861 **

16

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

1. GENERAL INFORMATION

Nexus Institute of Creative Arts is a company limited by guarantee and is incorporated in England. It is also a registered charity as regulated by the Charity Commission for England and Wales. The address of the registered office is given in the administrative information on page 13 of these financial statements.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The trustees are aware of the possible impact of COVID-19 and are confident sufficient steps have been taken to mitigate these impacts. The trustees believe that the charity can meet its liabilities as they fall due and the charity shall remain a going concern. As such the financial statements have been prepared on this basis

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Allocation and apportionment of costs

Direct costs attributable to a single activity are allocated directly to that activity. Costs which contribute to more than one activity are apportioned on the basis of staff time incurred on each activity. Support costs which are not attributable to a single activity are apportioned between the activities being supported on the basis of staff time incurred on each activity.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property - straight line over 50 years Improvements to property - 4% on cost Equipment - 25% on cost

Assets are capitalised when they cost £1,000 or more and have a useful life of more than one year.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

17

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued

for the year ended 31 August 2021

2. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Company status

The charity is a company limited by guarantee, which was incorporated on 16 August 2006. The members of the company are the trustees named on page 9. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.

3. DONATIONS AND LEGACIES

Donations and grants
Gift aid
Coronavirus Job Retention Scheme
4.
OTHER TRADING ACTIVITIES
Fundraising events (Rag Week)
5.
INVESTMENT INCOME
Deposit account interest
6.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Training fees
Tuition and performance
Merchandise and tuck sales
Tuition and performance
Hall and equipment hire
Tuition and performance
Events income
Tuition and performance
Other income
Tuition and performance		 2021
£
28,974
2,831
37,568
69,373
2021
£
14,160
2021
£
11
2021
£
562,148
267
3,624
-
1,644
567,683

18

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2021

7. CHARITABLE ACTIVITIES COSTS

Tuition and performance
8.
DIRECT COSTS OF CHARITABLE ACTIVITIES
Staff costs
Merchandise and tuck costs of sale
Equipment costs
Events
Training and activities
Validation fees
CAS number fees		 Direct
Costs (see
note 8)
£
380,521		 Support
costs (see
note 9)
£
299,391
2021
£
223,431
336
68
4,814
44,430
107,400
42
380,521		 Totals
£
679,912
2020
£
227,683
20
-
10,091
57,856
114,150
-
409,800

9. SUPPORT COSTS

Management
£
Tuition and performance
274,837
Support costs, included in the above, are as follows:
Administration salary costs
Social security
Pensions
Water and rates
Insurance
Light and heat
Telephone
Printing, postage and stationery
Advertising
Child protection costs
Repairs, maintenance and security
Subscriptions
Depreciation of tangible fixed assets
Finance charges
Loss/(profit) on disposal of tangible fixed
assets
Interest payable and similar charges
Auditors' remuneration
Legal fees
Carried forward		 Governance
Finance
costs
£
£
10,988
13,566
2021
Tuition
and
performance
£
179,786
7,980
4,138
5,904
4,370
9,829
703
170
29,443
515
7,705
2,543
21,751
455
410
10,123
4,653
4,796
295,274		 Totals
£
299,391
2020
Total
activities
£
185,589
7,452
6,727
5,882
4,169
11,805
781
1,221
25,151
381
8,543
1,970
20,639
519
(300)
10,542
3,933
4,160
299,164

Support costs, included in the above, are as follows:

19

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2021

9. SUPPORT COSTS - continued

2021
Tuition
and
performance
£
Brought forward
295,274
Accountancy fees
4,117
**299,391 **		 2020
Total
activities
£
299,164
3,546
302,710

10. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Auditors' remuneration
Depreciation - owned assets
(Deficit)/surplus on disposal of fixed assets		 2021
£
4,653
21,751
410		 2020
£
3,933
20,639
(300)

11. TRUSTEES' REMUNERATION AND BENEFITS

K S Silber, an employee of the charity, was appointed as a trustee on 1 March 2019. £707 remuneration was paid to K S Silber, in her occupational capacity in the year (2020: £13,084). The remuneration was paid under the legal authority of the charity's Memorandum and Articles of Association. K S Silber resigned as an employee of the charity on 30 September 2020.

There were no other trustees' remuneration or other benefits for the year ended 31 August 2021 nor for the year ended 31 August 2020.

The key management personnel of the charity comprise the trustees and the senior leadership team. The total employee benefits of the key management personnel of the charity were £138,765 (2020: £134,370).

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2021 nor for the year ended 31 August 2020.

12. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2021
£
381,292
21,686
12,357
415,335		 2020
£
391,237
21,194
15,020
427,451

20

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2021

12. STAFF COSTS - continued

The average monthly number of employees during the year was as follows:

Training
Administration
No employees received emoluments in excess of £60,000.
13.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
38,706
Charitable activities
Tuition and performance
638,371
Other trading activities
75
Investment income
17
Total
677,169
EXPENDITURE ON
Charitable activities
Tuition and performance
712,510
NET INCOME/(EXPENDITURE)
(35,341)
RECONCILIATION OF FUNDS
Total funds brought forward
793,805
TOTAL FUNDS CARRIED FORWARD
758,464		 2021
8
16
24
Restricted
funds
£
-
-
-
-
-
-
-
2,686
2,686		 2020
9
19
28
Total
funds
£
38,706
638,371
75
17
677,169
712,510
(35,341)
796,491
761,150

21

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2021

14. TANGIBLE FIXED ASSETS

14. TANGIBLE FIXED ASSETS
Improvements
Freehold
to
property
property		 Equipment Totals
£ £ £ £
COST
At 1 September 2020 650,000 120,518 52,569 823,087
Additions - 6,630 7,955 14,585
Disposals - - (3,977) (3,977)
At 31 August 2021 650,000 127,148 56,547 833,695
DEPRECIATION
At 1 September 2020 39,000 35,272 48,512 122,784
Charge for year 13,000 5,013 3,738 **21,751 **
At 31 August 2021 52,000 40,285 52,250 144,535
NET BOOK VALUE
At 31 August 2021 598,000 86,863 **4,297 ** 689,160
At 31 August 2020 611,000 85,246 4,057 700,303
15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£ £
Trade debtors 40,729 44,081
Bad debt provision (19,013) (19,013)
Other debtors 5,194 6,859
Prepayments 11,690 16,898
38,600 48,825
16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£ £
Bank loans and overdrafts (see note 18) 20,728 15,649
Trade creditors 13,461 10,595
Social security and other taxes 6,202 5,945
Other creditors 9,223 8,880
Accruals 5,070 7,272
Deferred income 21,200 17,600
75,884 65,941
Deferred income comprises training and registration fees that have been received in advance of the forthcoming
academic year.
2021 2020
£ £
Balance as at 1 September 2020 17,600 35,815
Amount released to income earned from charitable activities (17,600) (35,815)
Amount deferred in year 21,200 17,600
Balance as at 31 August 2021 21,200 17,600

22

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2021

17.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2021
£
Bank loans (see note 18)
203,902
18.
LOANS
An analysis of the maturity of loans is given below:
2021
£
Amounts falling due within one year on demand:
Bank loans
20,728
Amounts falling between one and two years:
Bank loans - 1-2 years
20,728
Amounts falling due between two and five years:
Bank loans - 2-5 years
61,741
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans more than 5 years
121,433		 2020
£
222,573
2020
£
15,649
20,233
60,698
141,642

Bank loans comprise a 2.5% p.a. Bounce Back loan repayable in July 2026 and a 5 year fixed rate 3.67% p.a. over Base Rate bank loan repayable in October 2032.

The bank loan is secured by a first legal charge over the charity's freehold property.

19. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year
Between one and five years		 2021
£
7,213
9,959
17,172		 2020
£
2,508
1,237
3,745

23

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2021

20. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Property improvement grants
Restricted funds
Building fund
Bursary fund
Access all areas fund
TOTAL FUNDS
Net movement in funds, included in the above are
Unrestricted funds
General fund
Property improvement grants
Restricted funds
Access all areas fund
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
Property improvement grants
Restricted funds
Building fund
Bursary fund
TOTAL FUNDS		 At 1.9.20
£
726,371
32,093
758,464
1,200
1,486
-
2,686
761,150
as follows:		 Net
movement
in funds
£
(27,635)
(3,300)
(30,935)
-
-
2,250
2,250
(28,685)
Incoming
resources
£
648,977
-
648,977
2,250
651,227
At 1.9.19
£
758,412
35,393
793,805
1,200
1,486
2,686
796,491		 Transfers
between
At
funds
31.8.21
£
£
2,250
700,986
-
28,793
2,250
729,779
-
1,200
-
1,486
(2,250)
-
(2,250)
2,686
-
732,465
Resources
Movement
expended
in funds
£
£
(676,612)
(27,635)
(3,300)
(3,300)
(679,912)
(30,935)
-
2,250
(679,912)
(28,685)
Net
movement
At
in funds
31.8.20
£
£
(32,041)
726,371
(3,300)
32,093
(35,341)
758,464
-
1,200
-
1,486
-
2,686
(35,341)
761,150

24

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2021

20. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Property improvement grants
TOTAL FUNDS		 Incoming
resources
£
677,169
-
677,169
677,169		 Resources
Movement
expended
in funds
£
£
(709,210)
(32,041)
(3,300)
(3,300)
(712,510)
(35,341)
(712,510)
(35,341)

The general fund represents the free funds which are not designated for particular purposes.

The property improvement grants fund represents monies set aside by the trustees in recognition of grants received to assist in financing the rebuilding of the front steps and the new heating and air conditioning installations. The improvement costs were capitalised and included within tangible fixed assets.

The building fund represents monies received to enable improvements to be made to the building.

The bursary fund has been set up to aid students in financial difficulty cover their fees.

The access all areas fund represents monies received to improve access to the building for users who are physically impaired.

21. EMPLOYEE BENEFIT OBLIGATIONS

The charity operates a defined contribution pension scheme in respect of certain employees. The scheme and its assets are held by independent managers. The pension charge represents contributions due to the scheme and amounted to £21,686 (2020: £15,020).

Included within creditors is a balance due to pension providers of £4,184 (2020: £2,431) representing contributions owed to the fund.

22. RELATED PARTY DISCLOSURES

Several trustees, and members of the senior management team, are regular supporters of the charity's activities. The regular donations made are less than £1,200 per contributor.

During the year remuneration was paid to D Silber, spouse of K S Silber, totalling £Nil (2020: £14,861). In addition, during the year consultancy fees were paid to D Silber totalling £14,280 (2020: £11,760).

Tuition fees totalling £6,165 were received from the son of M Ling in the year.

25

NEXUS INSTITUTE OF CREATIVE ARTS

DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 August 2021

INCOME AND ENDOWMENTS
Donations and legacies
Donations and grants
Gift aid
Coronavirus Job Retention Scheme
Other trading activities
Fundraising events (Rag Week)
Investment income
Deposit account interest
Charitable activities
Training fees
Merchandise and tuck sales
Hall and equipment hire
Events income
Other income
Total incoming resources
EXPENDITURE
Charitable activities
Salaries - training
Social security
Pensions
Merchandise and tuck costs of sale
Equipment costs
Events
Training and activities
Validation fees
CAS number fees
Support costs
Management
Administration salary costs
Social security
Pensions
Water and rates
Insurance
Carried forward		 2021
£
28,974
2,831
37,568
69,373
14,160
11
562,148
267
3,624
-
1,644
567,683
651,227
201,506
13,706
8,219
336
68
4,814
44,430
107,400
42
380,521
179,786
7,980
4,138
5,904
4,370
202,178		 2020
£
29,228
4,678
4,800
38,706
75
17
611,688
30
15,409
8,519
2,725
638,371
677,169
205,648
13,742
8,293
20
-
10,091
57,856
114,150
-
409,800
185,589
7,452
6,727
5,882
4,169
209,819

26

NEXUS INSTITUTE OF CREATIVE ARTS

DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 August 2021

Management
Brought forward
Light and heat
Telephone
Printing, postage and stationery
Advertising
Child protection costs
Repairs, maintenance and security
Subscriptions
Depreciation of tangible fixed assets
Finance
Finance charges
Loss/(profit) on disposal of tangible fixed assets
Bank loan interest
Governance costs
Auditors' remuneration
Legal fees
Accountancy fees
Total resources expended
Net expenditure		 2021
£
202,178
9,829
703
170
29,443
515
7,705
2,543
21,751
274,837
455
410
10,123
10,988
4,653
4,796
4,117
13,566
679,912
**(28,685) **		 2020
£
209,819
11,805
781
1,221
25,151
381
8,543
1,970
20,639
280,310
519
(300)
10,542
10,761
3,933
4,160
3,546
11,639
712,510
(35,341)

27