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2023-08-31-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 2023

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 2023

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 29
Detailed Statement of Financial Activities 30 to 31

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2023

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 2023. 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 2022/23

In 2022/23 there were 72 students across three programmes of study, a drop from last year’s numbers (89).

Total BA (Hons) Popular Music
BA (Hons) Event		 BA (Hons)
& Worship Technology Songwriting
Level 4 25 21 2 2
Level 5 18 14 - 4
Level6 29 24 2 3

Progression/Continuation

In total we had 4 withdrawals/deferrals, 2 from level 4, 1 from level 5 and 1 from level 6. Of the 6 students originally enrolled on the one-year Cert HE, 4 converted to the full degree with 3 progressing to level 5 and 1 looking to repeat level 4 in the 2023/24 academic year.

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

& Worship
Technology		 Songwriting
Level 4 19 16 2 1
Level 5 17 13 - 4

Student Attainment

At the time of the last trustees report, we hadn’t yet received the final results of the 2021/2022 level 7 cohort. There was a 100% pass rate with all 5 of them achieving Distinction. It’s worth noting that 2022/2023 saw our first cohorts from the Event Technology and Songwriting courses graduate.

1

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2023

ACHIEVEMENTS AND PERFORMANCE (continued)

Graduation Celebration

The Graduation celebration of the 2021/22 graduates took place at Twickenham Stadium in November of 2022. Hosted by our validating body, the University of West London, it was a memorable occasion for all.

Recruitment

As before, recruitment continues to be on the downward trend, causing us to continue to ask questions about the sustainability of Nexus ICA. Higher Education has continued to lose popularity and has never gained its former strength since the Pandemic. With student population decreasing across the sector we are not seeing the numbers of applications we need to sustain us into future years, despite our courses being robust, well supported and unique.

Festivals and Face-to-face recruitment

While there has been a slow return to festivals after Covid, the downturn in interest in the Higher Education sector continues to affect recruitment even when given a face-to-face opportunity. Costs for space and festivals have also increased significantly meaning our presence at festivals is much reduced compared to previous years.

2

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2023

ACHIEVEMENTS AND PERFORMANCE (continued)

Communications

Social media followers

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

2021/22 2022/23 Growth
Facebook 4,130 4,118 0.3% decrease
Instagram 2,797 2,844 1.7% increase

----- Start of picture text -----
Social Media Followers
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
2020/21 2021/22 2022/23
----- End of picture text -----

After a drop in 2020/21 period the communications team have seen an increase in the 2022/23 outcomes.

Digital Advertising

A change in Meta’s rules regarding targeted ads means that Nexus ICA is no longer able to target their main audience –Christians. This has significantly affected our recruitment process and the communications team are working hard to find alternative measures.

Student Experience

Despite discouraging recruitment figures, student feedback concerning experience remains overall strong. The leadership team and the staff are diligent in applying any improving measures that can be made from the student feedback in consultation with the Student Reps.

3

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2023

ACHIEVEMENTS AND PERFORMANCE (continued)

Fundraising and Additional Streams of Income

25&Beyond

This major fundraising initiative was launched as planned in October 2022 with the aim of raising £100k. After a rather slow start the campaign did gain momentum with fundraising events towards the end of the year being much more successful.

Changes in staffing around fundraising midway through the year helped to bring a boost and some momentum to the campaign, including an in-depth look at funding through grants and trust funds.

Despite the encouraging finish, we raised £50,000 of our intended £100,000 by August 2023. This amount was still enough to make a significant difference to the 2022/23 academic year, but will not impact the years beyond that to a sufficient level.

Rag Week

Staying with our 100 years of Astoria House theme, students and staff took part in a 100k Walk in the Peak District. Spread over 4 days of 25k each, participants stayed in a church building and fundraising was managed centrally rather than each student being responsible for a personal target. The total raised was added into our £50k overall fundraising total for the year.

Night on Broadway

Hopefully the first of an annual fundraiser, Night on Broadway was an incredibly successful event. Not only was the cast and entertainment of top quality, the event itself set a precedent for future fundraisers that we hope to continue in the coming years.

Fees

Fees have continued at their 2021-22 rate but we are looking at the possibility of increasing all fees to £8k per student.

Staff And Student Development

The yearly trip to NAMM was undertaken with great success. Students in particular experienced real world experience in the music industry. We are thankful to Nord and American Music and Sound for continuing to provide this opportunity.

Principal Matt Cossey continues to be active in the gigging world, setting an example for students in balancing career opportunities without compromising any area.

Creative Arts

Nexus Christmas and End of Year Shows

All of our shows are off-timetable and rely on voluntary participation from students. The educational and community value is high and these shows are often the highlights of the year. This year’s Christmas show ‘Rejoice!’ featured original and cover material and focussed on gospel choir style performances.

The End of Year show was a marvellous showcase not only of the talent of our staff and students but also of the way in which all worked together to produce the show. As usual, many valuable lessons learnt about how to participate in a community project.

Friday Nights In continued as a student-led monthly evening featuring local musicians and students.

4

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2023

ACHIEVEMENTS AND PERFORMANCE (continued)

Updates to Facility

5

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES

for the year ended 31 August 2023

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 2023 general funds were £669,766 (2022: £685,579) and restricted funds were £6,438 (2022: £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.

6

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2023

PLANS FOR FUTURE PERIODS

The trustees, leadership Team and staff continue to be amazed and grateful at the transformative work of Nexus ICA. We continue to be convinced, having seen the fruit, that there remains a need for places of refuge, discipleship and learning within the HE sector. Our observation is that while some of our larger Higher Education Institutes are managing to offer a place of community and an opportunity for maturity and growth within that broad system, many are not. Our young people are being fed to the lions of outcomes over character, unrealistic life and financial expectations being set and extreme loneliness in the midst of crowds, often emerging from University broken, disenchanted and without the necessary skills to journey forward in a complex and crisis-ridden world. This only strengthens our resolve to battle against the lack of support for smaller HE Institutes and in particular for those of the Christian faith which we believe offers genuine security and hope in days where these qualities seem to be diminishing. This conviction needs funds to exist and a way forward in a system that shamelessly prefers the larger money-making institutes without acknowledging the work of the smaller ones.

Our validating body, the University of West London, has consistently and unequivocally supported our work and public thanks should go to the leadership and management of UWL for the work they have done on our behalf.

Our data tells us this: having ridden the wave of the Covid years and an expected drop in student numbers, intake for 2022 – 2023 has remained low. The result of the downward trend in applicants and students is being felt across Higher Education in general; the result specifically for Nexus ICA is that we may be moving towards financial unsustainability. Our resolve tells us this: should we be given the opportunity to continue to offer undergraduate and postgraduate study we will do so with the strength, determination and conviction that has been the hallmark of Nexus since its inception in 1998. With such low numbers of applicants we will need a miracle to survive but we remain thankful for the miracle of having offered a genuine place of learning, sanctuary and safety for students who have chosen to study with us.

We remain committed to our vision of Higher Education that strengthens, prepares and encourages students to springboard into the rest of life, whatever that may offer.

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 8. 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 to achieve the desired outcome of a strong and healthy Christian community in Nexus ICA. We continued to meet regularly outside of the structured trustees required meetings. We make full use of Teams as a communications channel, including being able to connect with the Senior Leadership Team easily and quickly.

As previously reported, the financial pressures of continuing to run a high quality offering with increasingly small student numbers is proving to be challenging. As trustees we are committed to finding a way forward that will enable high-quality provision or not at all. High quality for us is equal as much to contact hours with students as it is to curriculum, thus making staff cutbacks a possibility but not a straightforward one.

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.

7

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Leadership – Notable Developments

Matthew Cossey has continued to grow in strength as Principal of Nexus ICA. Along with his fellow Senior Leader Matt Donald, Nexus is led firmly, with transparency and with increasingly good communication between leadership level and staff.

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 continue to be under constant review.

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

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 (Principal) Matthew Donald (Assistant Principal)

8

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2023

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 21 May 2024 and signed on its behalf by:

K Silber - 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 2023 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).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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:

12

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

21 May 2024

13

NEXUS INSTITUTE OF CREATIVE ARTS

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 August 2023

Unrestricted
funds
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
80,500
Charitable activities
5
Tuition and performance
528,878
Investment income
4
-
Total
609,378
EXPENDITURE ON
Charitable activities
6
Tuition and performance
624,561
NET INCOME/(EXPENDITURE)
(15,183)
Transfers between funds
20
(630)
Net movement in funds
(15,813)
RECONCILIATION OF FUNDS
Total funds brought forward
685,579
TOTAL FUNDS CARRIED FORWARD
669,766		 Restricted
funds
£
15,748
-
74
15,822
12,700
3,122
630
3,752
2,686
6,438		 2023
Total
funds
£
96,248
528,878
74
625,200
637,261
(12,061)
-
(12,061)
688,265
**676,204 **		 2022
Total
funds
£
41,206
602,640
8
643,854
688,054
(44,200)
-
(44,200)
732,465
688,265

The notes form part of these financial statements

14

NEXUS INSTITUTE OF CREATIVE ARTS

BALANCE SHEET 31 August 2023

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
£
650,982
40,334
209,907
250,241
(62,810)
187,431
838,413
(168,647)
669,766		 Restricted
funds
£
-
-
6,438
6,438
-
6,438
6,438
-
6,438		 2023
Total
funds
£
650,982
40,334
216,345
256,679
(62,810)
193,869
844,851
(168,647)
676,204
669,766
6,438
**676,204 **		 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

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2023.

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 2023

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 21 May 2024 and were signed on its behalf by:

K Silber - Trustee

The notes form part of these financial statements

16

NEXUS INSTITUTE OF CREATIVE ARTS

CASH FLOW STATEMENT
for the year ended 31 August 2023
2023
Notes
£
Cash flows from operating activities
Cash generated from operations
1
11,305
Interest paid
(12,061)
Net cash used in operating activities
(756)
Cash flows from investing activities
Purchase of tangible fixed assets
-
Sale of tangible fixed assets
5,647
Interest received
74
Net cash provided by/(used in) investing activities
5,721
Cash flows from financing activities
Loan repayments in year
(19,170)
Net cash used in financing activities
(19,170)
Change in cash and cash equivalents in
the reporting period
(14,205)
Cash and cash equivalents at the
beginning of the reporting period
230,550
Cash and cash equivalents at the end of
the reporting period
216,345		 2022
£
(24,535)
(9,814)
(34,349)
(1,366)
546
8
(812)
(18,780)
(18,780)
(53,941)
284,491
230,550

The notes form part of these financial statements

17

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE CASH FLOW STATEMENT for the year ended 31 August 2023

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 on disposal of fixed assets
Interest received
Interest paid
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash provided by/(used in) operations		 2023
£
(12,061)
19,501
(5,647)
(74)
12,061
35,678
(38,153)
11,305		 2022
£
(44,200)
20,043
(546)
(8)
9,814
(37,412)
27,774
(24,535)

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.22 Cash flow At 31.8.23
£ £ £
Net cash
Cash at bank and in hand 230,550 (14,205) 216,345
230,550 **(14,205) ** 216,345
Debt
Debts falling due within 1 year (17,478) (554) (18,032)
Debts falling due after 1 year (188,372) 19,725 (168,647)
(205,850) 19,171 (186,679)
Total 24,700 4,966 29,666

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 2023

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 8 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 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.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

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.

continued...

19

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2023

2. ACCOUNTING POLICIES - continued

Fund accounting

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

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 8. 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
4.
INVESTMENT INCOME
Deposit account interest
5.
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		 2023
£
87,629
8,619
-
96,248
2023
£
74
2023
£
479,177
1,600
31,860
8,622
7,619
528,878

continued...

20

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2023

6. CHARITABLE ACTIVITIES COSTS

Direct
Costs (see
note 7)
£
Tuition and performance
326,889
7.
DIRECT COSTS OF CHARITABLE ACTIVITIES
Staff costs
Sundries
Merchandise and tuck costs of sale
Equipment costs
Events
Training and activities
Validation fees
CAS number fees
8.
GRANTS PAYABLE
Tuition and performance
9.
SUPPORT COSTS
Management
£
Tuition and performance
279,601
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
Carried forward		 Grant
funding of
activities
Support
(see note
costs (see
8)
note 9)
£
£
1,500
308,872
2023
£
180,929
1,457
1,250
3,197
10,157
39,815
90,000
84
326,889
2023
£
1,500
Governance
Finance
costs
£
£
8,338
20,933
2023
Tuition
and
performance
£
180,685
8,446
3,825
7,493
4,949
14,383
787
326
21,441
497
242,832		 Totals
£
637,261
2022
£
213,116
-
893
485
6,377
38,342
116,400
63
375,676
2022
£
-
Totals
£
308,872
2022
Total
activities
£
188,564
10,852
5,302
5,833
4,734
11,514
699
665
21,961
421
250,545

continued...

21

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2023

9. SUPPORT COSTS - continued

2023
Tuition
and
performance
£
Brought forward
242,832
Repairs, maintenance and security
15,325
Subscriptions
1,943
Depreciation of tangible fixed assets
19,501
Finance charges
1,924
Profit on disposal of tangible fixed assets
(5,647)
Interest payable and similar charges
12,061
Auditors' remuneration
6,240
Legal fees
5,487
Accountancy fees
9,206
308,872		 2022
Total
activities
£
250,545
11,284
2,308
20,043
866
(546)
9,814
3,696
4,318
10,050
312,378

10. NET INCOME/(EXPENDITURE)

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

Auditors' remuneration
Depreciation - owned assets
Surplus on disposal of fixed assets		 2023
£
6,240
19,501
(5,647)		 2022
£
3,696
20,043
(546)

11. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2023 nor for the year ended 31 August 2022.

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 £78,663 (2022: £119,923).

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2023 nor for the year ended 31 August 2022.

continued...

22

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2023

12. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
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
34,243
Charitable activities
Tuition and performance
602,640
Investment income
8
Total
636,891
EXPENDITURE ON
Charitable activities
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		 2023
£
348,417
17,473
7,995
373,885
2023
9
16
25
Restricted
funds
£
6,963
-
-
6,963
6,963
-
2,686
2,686		 2022
£
385,064
21,413
11,357
417,834
2022
9
16
25
Total
funds
£
41,206
602,640
8
643,854
688,054
(44,200)
732,465
688,265

continued...

23

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2023

14. TANGIBLE FIXED ASSETS

Improvements
Freehold
to
property
property
£
£
COST
At 1 September 2022
650,000
128,514
Disposals
-
-
At 31 August 2023
650,000
128,514
DEPRECIATION
At 1 September 2022
65,000
45,403
Charge for year
13,000
5,141
Eliminated on disposal
-
-
At 31 August 2023
78,000
50,544
NET BOOK VALUE
At 31 August 2023
572,000
77,970
At 31 August 2022
585,000
83,111
15.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
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
(1,512)
55,035
54,175
1,360
(1,512)
54,023
1,012
2,372
2023
£
22,627
5,679
12,028
40,334
2023
£
18,032
7,229
4,648
3,886
7,815
21,200
62,810

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

Balance as at 1 September 2022
Amount released to income earned from charitable activities
Amount deferred in year
Balance as at 31 August 2023		 2023
£
39,750
(39,750)
21,200
21,200		 2022
£
21,200
(21,200)
39,750
39,750

25

continued...

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2023

17.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023
£
Bank loans (see note 18)
168,647
18.
LOANS
An analysis of the maturity of loans is given below:
2023
£
Amounts falling due within one year on demand:
Bank loans
18,032
Amounts falling between one and two years:
Bank loans - 1-2 years
19,369
Amounts falling due between two and five years:
Bank loans - 2-5 years
55,860
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans more than 5 years
93,418		 2022
£
188,372
2022
£
17,478
18,368
55,009
114,995

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		 2023
£
3,984
-
**3,984 **		 2022
£
5,976
3,984
9,960

26

continued...

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2023

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		 At 1.9.22
£
660,086
25,493
685,579
1,200
1,486
2,686
688,265
as follows:		 Net
movement
in funds
£
(11,883)
(3,300)
(15,183)
(1,200)
4,322
3,122
(12,061)		 Transfers
between
funds
£
(630)
-
(630)
-
630
630
-		 At
31.8.23
£
647,573
22,193
669,766
-
6,438
6,438
**676,204 **
Unrestricted funds
General fund
Property improvement grants
Restricted funds
Building fund
Bursary fund
Marketing fund
TOTAL FUNDS		 Incoming
resources
£
609,378
-
609,378
-
5,822
10,000
15,822
625,200		 Resources
Movement
expended
in funds
£
£
(621,261)
(11,883)
(3,300)
(3,300)
(624,561)
(15,183)
(1,200)
(1,200)
(1,500)
4,322
(10,000)
-
(12,700)
3,122
(637,261)
(12,061)

continued...

27

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2023

20. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
Property improvement grants
Restricted funds
Building fund
Bursary fund
TOTAL FUNDS		 At 1.9.21
£
700,986
28,793
729,779
1,200
1,486
2,686
732,465		 Net
movement
in funds
£
(40,900)
(3,300)
(44,200)
-
-
-
(44,200)		 At
31.8.22
£
660,086
25,493
685,579
1,200
1,486
2,686
688,265

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

Unrestricted funds
General fund
Property improvement grants
Restricted funds
Kickstart fund
TOTAL FUNDS		 Incoming
resources
£
636,891
-
636,891
6,963
643,854		 Resources
Movement
expended
in funds
£
£
(677,791)
(40,900)
(3,300)
(3,300)
(681,091)
(44,200)
(6,963)
-
(688,054)
(44,200)

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

continued...

28

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2023

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 £7,995 (2022: £11,357).

Included within creditors is a balance due to pension providers of £1,605 (2022: £1,727) 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 £14,058 (2022: £14,552).

Tuition fees totalling £Nil were received from the son of M Ling in the year (2022: £6,165).

23. POST BALANCE SHEET EVENTS

In April 2024 the trustees have taken the decision to close the charity after the end of the 2025/26 academic year. The charity will not recruit any new students, however it will remain fully operational until the end of the 2025/26 academic year to complete the education of the current students.

29

NEXUS INSTITUTE OF CREATIVE ARTS

DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 August 2023

INCOME AND ENDOWMENTS
Donations and legacies
Donations and grants
Gift aid
Kickstart income
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
Sundries
Merchandise and tuck costs of sale
Equipment costs
Events
Training and activities
Validation fees
CAS number fees
Grants to individuals
Support costs
Management
Administration salary costs
Social security
Pensions
Water and rates
Insurance
Light and heat
Carried forward		 2023
£
87,629
8,619
-
96,248
74
479,177
1,600
31,860
8,622
7,619
528,878
625,200
167,732
9,027
4,170
1,457
1,250
3,197
10,157
39,815
90,000
84
1,500
328,389
180,685
8,446
3,825
7,493
4,949
14,383
219,781		 2022
£
33,915
328
6,963
41,206
8
558,606
1,445
29,198
10,119
3,272
602,640
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
4,734
11,514
226,799

This page does not form part of the statutory financial statements

30

NEXUS INSTITUTE OF CREATIVE ARTS

DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 August 2023

Management
Brought forward
Telephone
Printing, postage and stationery
Advertising
Child protection costs
Repairs, maintenance and security
Subscriptions
Depreciation of tangible fixed assets
Finance
Finance charges
Profit on disposal of tangible fixed assets
Bank loan interest
Governance costs
Auditors' remuneration
Legal fees
Accountancy fees
Total resources expended
Net expenditure		 2023
£
219,781
787
326
21,441
497
15,325
1,943
19,501
279,601
1,924
(5,647)
12,061
8,338
6,240
5,487
9,206
20,933
637,261
(12,061)		 2022
£
226,799
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)

This page does not form part of the statutory financial statements

31