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2022-08-31-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 2022

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 2022

Page
Report of the Trustees 1 to 11
Report of the Independent Auditors 12 to 13
Statement of Financial Activities 14
Balance Sheet 15 to 16
Cash Flow Statement 17
Notes to the Cash Flow Statement 18
Notes to the Financial Statements 19 to 27
Detailed Statement of Financial Activities 28 to 29

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2022

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 2022. 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 for 2021/22 The year 2021/22 began with 89 students across four programmes of study, a slight drop from last year’s numbers (91).

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

& Worship
Technology		 Songwriting
Level 4 22 17 2 3
Level 5 30 24 3 3
Level 6 32 32 - -
Level 7 5 - - -

Progression/Continuation

There were 3 deferrals/withdrawals, one from each level of undergraduate study. Progress was as follows. Of the 9 students originally enrolled on the one-year Cert HE, 4 converted to the full degree, progressing to Level 5 of the BA Hons.

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

& Worship
Technology		 Songwriting
Level 4 17 12 2 3
Level 5 29 24 2 3

Student Attainment

2021/22 saw 100% graduation rate with 90% gaining First Class or Upper second. This represents an increase on last year’s figures. We are pleased to see increase in this area and alongside that recognise that all degree passes are a success. The Trustees would also like to make clear that success can be found alongside and outside of academic achievement and that results determine neither character nor progression as the student journeys forward in life.

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NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2022

ACHIEVEMENTS AND PERFORMANCE (continued)

Emergency Regulations put in place by the University were still operational where a module had been started during that period in the previous year. Like many other Higher Education Providers, this ensured a pathway towards ‘no detriment’. The flexibility given in this regard was well received by students but did put a huge administrative burden on staff.

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NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2022

ACHIEVEMENTS AND PERFORMANCE (continued)

Graduation Celebration

The Graduation celebration of the 2020 and 2021 graduates took place at Twickenham Stadium in December of 2021, delayed due to the Pandemic. Hosted by our validating body, the University of West London it was a memorable occasion for all.

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 2020/21 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 commissioned and released in March 2022 , alongside making the application process clearer and more accessible.

The Exhibitions and Conferences stand was redesigned and relaunched with festivals and gatherings of other types opening up all across the UK.

We began working with local government and our validating body, The University of West London, to enable the safe passage of Ukrainian students to study at Nexus ICA from September 2022. We are hoping to accept 3 students who have shown interest in studying here, with more opportunities opening up in the future.

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NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2022

ACHIEVEMENTS AND PERFORMANCE (continued)

Communications

Social media followers

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

2020/21 2021/22 Growth
Facebook 3,891 4,130 6% increase
Instagram 2,591 2,797 8% increase

Website Visitors

There was a significant decrease in visitors to the website in 2021/22, the main decline being between June and August of that year.

Total Web Visits 2020/21 2021/22
33,425 11,686

This decline is attributable to problems with Google Analytics and website communication during a website redesign. At the time of writing this technical difficulty is in the process of being resolved.

Student Experience

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

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NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES

for the year ended 31 August 2022

ACHIEVEMENTS AND PERFORMANCE (continued)

Fundraising and Additional Streams of Income

RAG Week

Efforts this year were very much reduced due to staff capacity and buy-in. Two events were organised and 20% of all funds was diverted to supporting the refugee crisis in Ukraine, particularly through our friendship with UETS (Ukrainian Evangelical Theological Seminary).

Community Outreach Weekend - 1st and 2nd of April 2022

Students and staff gave up their weekends to volunteer for a number of charities and organisations in and around Coventry, including Betel in Birmingham, Feed the Hungry in Binley, and St Christopher's Church in Allesley.

Weekend Worship Session

Students had just over 24 hours to write, refine, and rehearse a collection of worship songs before filming the set in front of a live audience on the evening of Saturday 25th June. They were later mixed and edited ready for release to the public.

The 2 events together raised a little over £1,000, which was way below target for the fundraising year and not anyway near what we needed to bolster finances for the year. Discussions are already in process for next year’s fundraising efforts (see below in ‘Looking to the Future’) in conjunction with the Fundraiser and SLT at Nexus.

Personal Fundraising

One of the Cert HE students undertook a solo bike ride of 1,167km from Coventry to her home in Kleinaltdorf, Germany to raise money to support Ukrainian refugees studying at Nexus ICA. The total raised was £2000 + gift aid; double her target for the ride.

Fees

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.

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NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2022

ACHIEVEMENTS AND PERFORMANCE (continued)

Staff And Student Development

Student Development

After a break due to the Pandemic, students attended the NAMM show again in California, representing Nexus ICA and getting experience of serving and attending at a large scale music event. They were accompanied by 2 members of staff.

Staff Development

Staff presence at Festivals and Conferences saw un upturn this year, in particular with newly appointed Principal Matthew Cossey (Interim) connecting with Christian Leaders across the UK through worship and music.

4 additional members of staff – Hannah Hodges, John Conneran, Ashley Allen and Alex Hart - released original music in addition to the 3 already having released tracks in previous years.

Hannah Hodges continued study with her Masters Degree in Integrative Theology and expects to graduate in September of 2022.

Support for Coventry City Events maintained its previous level with events such as Genexis in the Cathedral, and Motofest in the City Centre, with Events Management Course leader Dan Meakin playing a key role in curating and managing the events. This also grew with the addition of supporting City Praise and Prayer in May (see below). NB: Motofest was cancelled in 2022 due to the death of Queen Elizabeth II

Creative Arts

Nexus Christmas Show

This year’s Christmas show was planned and executed by staff and students and was a mixture of original songs and originally arranged covers.

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NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2022

ACHIEVEMENTS AND PERFORMANCE (continued)

Nexus Music releases

Christmas music

Played and recorded as part of the Christmas 21 shows, this music was released on streaming platforms later on in the year featuring songs written and recorded by Nexus ICA students.

Weekend Worship Sessions

Students and staff had just over 24 hours to write, refine, and rehearse a collection of worship songs before filming the set on the evening of Saturday 25th June. The Music was released on streaming platforms in July of 2022.

City Praise and Prayer in Coventry Cathedral Ruins

May saw Nexus ICA and Alumni collaborating with Coventry City Praise and Prayer to resource a citywide event in the Cathedral. Nexus provided stage hands, technical services, welcome team, event management and security and musicians to contribute to what was a memorable event within the City.

Come From Away – London

Staff and students connected with Betel UK and students from Coventry University to watch alumnus Ricardo Castro performing in ‘Come From Away’ in the West End. An inspiring visit.

End Of Year Shows

Due to the Pandemic, these shows were the first end of year showcase since 2019.

These are off-timetable, voluntary participation from students, so it was encouraging to see how many gave their time and energy to make these great shows.

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NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2022

ACHIEVEMENTS AND PERFORMANCE (continued)

Updates to Facility

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 2022 general funds were £685,579 (2021: £729,779) and restricted funds were £2,686 (2021: £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.

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NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2022

PLANS FOR FUTURE PERIODS

A sober evaluation of the need for, and future of, Nexus continued to take place among the Trustees and SLT. With a change of leadership halfway through the year, there weas ample opportunity to assess the future direction of Nexus ICA and whether the new Principal was able to take it forward.

Alongside financial difficulties, the culture and raison d’etre of Nexus was at stake following 2 years of limited face-toface contact and a struggle to form a vibrant community in those circumstances. This needed to be addressed and the Board of Trustees were not willing to continue with a half-hearted version of what Nexus was called to be.

After prayer and consultation with key partners and stakeholders, we concluded that there was still a future to be pursued. This would be possible with ruthless elimination of aspects of culture that had grown up, key training for staff in certain areas of pastoral care and wellbeing and a re-launch of our flagship degree, Popular Music and Worship. Much of what Nexus ICA had built in the past needed to be mined and relevant ‘gold’ taken from that to give momentum to future building. Misunderstandings that had taken root in staff and students needed to be identified and eliminated, going forward with a much more cohesive approach between the Trustees and the SLT as a first building block.

October 2022 marks the 100th year anniversary of the Nexus building ‘Astoria House’ and the 25[th] Anniversary of the founding of Nexus. These 2 events combined are being used to give way to a fundraising campaign entitled ‘25&Beyond’ with a target of £100k which will begin in October 2022.

In addition to this, and very much alongside, the Board have requested that we engage key stakeholders, partners, church links, alumni and current students, being frank and transparent about the current position and future hope for Nexus ICA. Nexus ICA is not only its current student, staff and stakeholders, but a collective of partners, supporters and organisations that have invested in its past and will continue to benefit from its future.

As God leads us, so we will continue.

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 11. 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.

Our Board continues to work together strongly to achieve the desired outcome of a strong and healthy Christian community in Nexus ICA. This year we increased the regularity of meeting, adding informal meetings for discussion and prayer twice a month, in addition to formal and required meetings. This has strengthened our working relationship and given more time for discussion and thought around significant issues.

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.

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NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Leadership – Notable Developments

In December of 2021, the Principal, Dave Ashworth, handed in his resignation to the Board. This came as a surprise but we nonetheless accepted his resignation and began the process of working with him and the Senior Leadership Team to appoint a new Principal. After a period of consultation, and some interest shown from current staff, the role was advertised internally, with one applicant. A significant process of thought and prayer followed resulting the appointment of Matthew Cossey to a 6 month interim position from February to September 2022. A 3 month review was carried out in May and a decision was made to permanently appoint Matthew Cossey to the role in July of 2022.

From February to end of August, the Board have been very happy with the appointment and the working relationship with Matthew is proving to be transparent, strong and open to further developments.

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.

Mental Health

An advisor to Board in the area of Mental Health was appointed. This was in response to the growing number of mental health conditions at Nexus ICA among staff and students, and the Board’s recognition that support and advice for practitioners working in Higher Education in a Christian environment was minimal.

The Board asked Jenny Cavendish to look at provision at Nexus ICA, to meet with the leadership team and to make recommendations for further action. Her advice and comments so far have been constructive and insightful and will lead to bespoke training next year along with a written audit.

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 Highdown House 11 Highdown Road Leamington Spa Warwickshire CV31 1XT

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NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2022

REFERENCE AND ADMINISTRATIVE DETAILS (continued)

Bankers

National Westminster Bank 118 Walsgrave Road Coventry West Midlands CV3 4ZZ

Trustees

Kate Silber (Executive Chair) David Bertram Matthew Ling Rachel Dekam

Advisors to the Board

Jane Moffat (Safeguarding) Jenny Cavendish (Mental Health)

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 18 April 2023 and signed on its behalf by:

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

11

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 2022 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.

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:

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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

18 April 2023

13

NEXUS INSTITUTE OF CREATIVE ARTS

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 August 2022

Unrestricted
funds
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
34,242
Charitable activities
6
Tuition and performance
602,296
Other trading activities
4
345
Investment income
5
8
Total
636,891
EXPENDITURE ON
Charitable activities
7
Tuition and performance
681,091
NET INCOME/(EXPENDITURE)
(44,200)
RECONCILIATION OF FUNDS
Total funds brought forward
729,779
TOTAL FUNDS CARRIED FORWARD
685,579		 Restricted
funds
£
6,963
-
-
-
6,963
6,963
-
2,686
2,686		 2022
Total
funds
£
41,205
602,296
345
8
643,854
688,054
(44,200)
732,465
688,265		 2021
Total
funds
£
69,373
567,683
14,160
11
651,227
679,912
(28,685)
761,150
732,465

The notes form part of these financial statements

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NEXUS INSTITUTE OF CREATIVE ARTS

BALANCE SHEET 31 August 2022

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
£
670,483
76,012
227,864
303,876
(100,408)
203,468
873,951
(188,372)
685,579		 Restricted
funds
£
-
-
2,686
2,686
-
2,686
2,686
-
2,686		 2022
Total
funds
£
670,483
76,012
230,550
306,562
(100,408)
206,154
876,637
(188,372)
688,265
685,579
2,686
688,265		 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

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2022.

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.

The notes form part of these financial statements

15

continued...

NEXUS INSTITUTE OF CREATIVE ARTS

BALANCE SHEET - continued 31 August 2022

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 18 April 2023 and were signed on its behalf by:

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

The notes form part of these financial statements

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NEXUS INSTITUTE OF CREATIVE ARTS

CASH FLOW STATEMENT for the year ended 31 August 2022

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Net cash (used in)/provided by 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
Loan repayments in year
Net cash used in 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		 2022
£
(24,535)
(9,814)
(34,349)
(1,366)
546
8
(812)
(18,780)
(18,780)
(53,941)
284,491
230,550		 2021
£
18,676
(10,123)
8,553
(14,585)
3,567
11
(11,007)
(13,591)
(13,591)
(16,045)
300,536
284,491

The notes form part of these financial statements

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NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE CASH FLOW STATEMENT for the year ended 31 August 2022

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
(Profit)/loss on disposal of fixed assets
Interest received
Interest paid
(Increase)/decrease in debtors
Increase in creditors
Net cash (used in)/provided by operations		 2022
£
(44,200)
20,043
(546)
(8)
9,814
(37,412)
27,774
**(24,535) **		 2021
£
(28,685)
21,751
410
(11)
10,123
10,225
4,863
18,676

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.21 Cash flow At 31.8.22
£ £ £
Net cash
Cash at bank and in hand **284,491 ** (53,941) 230,550
**284,491 ** (53,941) 230,550
Debt
Debts falling due within 1 year (20,728) 3,250 (17,478)
Debts falling due after 1 year (203,902) 15,530 (188,372)
(224,630) 18,780 (205,850)
Total **59,861 ** (35,161) 24,700

The notes form part of these financial statements

18

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2022

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 10 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.

continued...

19

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2022

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 11. 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
Kickstart income
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		 2022
£
33,914
328
6,963
-
41,205
2022
£
345
2022
£
8
2022
£
558,606
1,445
29,198
9,775
3,272
602,296

continued...

20

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2022

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
9.
SUPPORT COSTS
Management
£
Tuition and performance
284,180
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
(Profit)/loss on disposal of tangible fixed
assets
Interest payable and similar charges
Auditors' remuneration
Legal fees
Carried forward		 Direct
Support
Costs (see
costs (see
note 8)
note 9)
£
£
375,676
312,378
2022
£
213,116
893
485
6,377
38,342
116,400
63
375,676
Governance
Finance
costs
£
£
10,134
18,064
2022
Tuition
and
performance
£
188,564
10,852
5,302
5,833
4,734
11,514
699
665
21,961
421
11,284
2,308
20,043
866
(546)
9,814
3,696
4,318
302,328		 Totals
£
688,054
2021
£
223,431
336
68
4,814
44,430
107,400
42
380,521
Totals
£
312,378
2021
Total
activities
£
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

continued...

21

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2022

9. SUPPORT COSTS - continued

2022
Tuition
and
performance
£
Brought forward
302,328
Accountancy fees
10,050
312,378		 2021
Total
activities
£
295,274
4,117
299,391

10. NET INCOME/(EXPENDITURE)

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

Auditors' remuneration
Depreciation - owned assets
Surplus/(deficit) on disposal of fixed assets		 2022
£
3,696
20,043
**(546) **		 2021
£
4,653
21,751
410

11. TRUSTEES' REMUNERATION AND BENEFITS

K S Silber, was an employee of the charity and was appointed as a trustee on 1 March 2019. £Nil remuneration was paid to K S Silber, in her occupational capacity in the year (2021: £707). 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 2022 nor for the year ended 31 August 2021.

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 £119,923 (2021: £138,765).

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2022 nor for the year ended 31 August 2021.

12. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2022
£
385,064
21,413
11,357
**417,834 **		 2021
£
381,292
21,686
12,357
415,335

continued...

22

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued

for the year ended 31 August 2022

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
67,123
Charitable activities
Tuition and performance
567,683
Other trading activities
14,160
Investment income
11
Total
648,977
EXPENDITURE ON
Charitable activities
Tuition and performance
679,912
NET INCOME/(EXPENDITURE)
(30,935)
Transfers between funds
2,250
Net movement in funds
(28,685)
RECONCILIATION OF FUNDS
Total funds brought forward
758,464
TOTAL FUNDS CARRIED FORWARD
729,779		 2022
9
16
25
Restricted
funds
£
2,250
-
-
-
2,250
-
2,250
(2,250)
-
2,686
2,686		 2021
8
16
24
Total
funds
£
69,373
567,683
14,160
11
651,227
679,912
(28,685)
-
(28,685)
761,150
732,465

continued...

23

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2022

14. TANGIBLE FIXED ASSETS

Improvements
Freehold
to
property
property
£
£
COST
At 1 September 2021
650,000
127,148
Additions
-
1,366
At 31 August 2022
650,000
128,514
DEPRECIATION
At 1 September 2021
52,000
40,285
Charge for year
13,000
5,118
At 31 August 2022
65,000
45,403
NET BOOK VALUE
At 31 August 2022
585,000
83,111
At 31 August 2021
598,000
86,863
15.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Bad debt provision
Other debtors
Prepayments
16.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loans and overdrafts (see note 18)
Trade creditors
Social security and other taxes
Other creditors
Accruals
Deferred income		 Equipment
£
56,547
-
56,547
52,250
1,925
54,175
2,372
4,297
2022
£
55,705
-
2,392
17,915
76,012
2022
£
17,478
18,053
4,833
12,074
8,220
39,750
100,408		 Totals
£
833,695
1,366
835,061
144,535
20,043
164,578
670,483
689,160
2021
£
40,729
(19,013)
5,194
11,690
38,600
2021
£
20,728
13,461
6,202
9,223
5,070
21,200
75,884

Deferred income comprises training and registration fees that have been received in advance of the forthcoming academic year.

Balance as at 1 September 2021
Amount released to income earned from charitable activities
Amount deferred in year
Balance as at 31 August 2022		 2022
£
21,200
(21,200)
39,750
39,750		 2021
£
17,600
(17,600)
21,200
21,200

continued...

24

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2022

17.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2022
£
Bank loans (see note 18)
188,372
18.
LOANS
An analysis of the maturity of loans is given below:
2022
£
Amounts falling due within one year on demand:
Bank loans
17,478
Amounts falling between one and two years:
Bank loans - 1-2 years
18,368
Amounts falling due between two and five years:
Bank loans - 2-5 years
55,009
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans more than 5 years
114,995		 2021
£
203,902
2021
£
20,728
20,728
61,741
121,433

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		 2022
£
5,976
3,984
9,960		 2021
£
7,213
9,959
17,172

25

continued...

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2022

20. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Property improvement grants
Restricted funds
Building fund
Bursary fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
Property improvement grants
Restricted funds
Kickstart fund
TOTAL FUNDS		 At 1.9.21
£
700,986
28,793
729,779
1,200
1,486
2,686
732,465
Incoming
resources
£
636,891
-
636,891
6,963
**643,854 **		 Net
movement
At
in funds
31.8.22
£
£
(40,900)
660,086
(3,300)
25,493
(44,200)
685,579
-
1,200
-
1,486
-
2,686
(44,200)
688,265
Resources
Movement
expended
in funds
£
£
(677,791)
(40,900)
(3,300)
(3,300)
(681,091)
(44,200)
(6,963)
-
(688,054)
**(44,200) **

Comparatives for movement in funds

Unrestricted funds
General fund
Property improvement grants
Restricted funds
Building fund
Bursary fund
Access all areas fund
TOTAL FUNDS		 At 1.9.20
£
726,371
32,093
758,464
1,200
1,486
-
2,686
761,150		 Net
movement
in funds
£
(27,635)
(3,300)
(30,935)
-
-
2,250
2,250
(28,685)		 Transfers
between
funds
£
2,250
-
2,250
-
-
(2,250)
(2,250)
-		 At
31.8.21
£
700,986
28,793
729,779
1,200
1,486
-
2,686
732,465

26

continued...

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2022

20. MOVEMENT IN FUNDS - continued

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

Unrestricted funds
General fund
Property improvement grants
Restricted funds
Access all areas fund
TOTAL FUNDS		 Incoming
resources
£
648,977
-
648,977
2,250
651,227		 Resources
Movement
expended
in funds
£
£
(676,612)
(27,635)
(3,300)
(3,300)
(679,912)
(30,935)
-
2,250
(679,912)
(28,685)

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.

The Kickstart fund represents government funding received to create a new job for a 16 to 24 year old.

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 £11,357 (2021: £12,357).

Included within creditors is a balance due to pension providers of £1,727 (2021: £4,184) 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 consultancy fees were paid to D Silber, spouse of K S Silber, totalling £14,552 (2021: £14,280).

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

27

NEXUS INSTITUTE OF CREATIVE ARTS

DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 August 2022

INCOME AND ENDOWMENTS
Donations and legacies
Donations and grants
Gift aid
Kickstart income
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
Carried forward		 2022
£
33,914
328
6,963
-
41,205
345
8
558,606
1,445
29,198
9,775
3,272
602,296
643,854
196,500
10,561
6,055
893
485
6,377
38,342
116,400
63
375,676
188,564
10,852
5,302
5,833
210,551		 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
197,808

This page does not form part of the statutory financial statements

28

NEXUS INSTITUTE OF CREATIVE ARTS

DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 August 2022

Management
Brought forward
Insurance
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
(Profit)/loss on disposal of tangible fixed assets
Bank loan interest
Governance costs
Auditors' remuneration
Legal fees
Accountancy fees
Total resources expended
Net expenditure		 2022
£
210,551
4,734
11,514
699
665
21,961
421
11,284
2,308
20,043
284,180
866
(546)
9,814
10,134
3,696
4,318
10,050
18,064
688,054
**(44,200) **		 2021
£
197,808
4,370
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)

This page does not form part of the statutory financial statements

29