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← Nexus Institute Of Creative Arts

2024-08-31-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 2024

FOR

NEXUS INSTITUTE OF CREATIVE ARTS

HB&O Ltd 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 2024

Page
Report of the Trustees 1 to 8
Report of the Independent Auditors 9 to 10
Statement of Financial Activities 11
Balance Sheet 12 to 13
Cash Flow Statement 14
Notes to the Cash Flow Statement 15
Notes to the Financial Statements 16 to 25
Detailed Statement of Financial Activities 26 to 27

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2024

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 2024. 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 ACTIVITIES

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.

DECISION TO CLOSE

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. As we looked at the figures for the upcoming year, including projected student numbers, it was easy to see the downturn in uptake of student places and of applicants in general. Approaching this as always with faith, we scoured not only the numbers but also the possibilities of:

The result of those considerations led us to make the decision to bring Nexus ICA to a close.

Overview of Timeline

January 2024

Trustees and SLT meet to begin the process of final decisions about the future of Nexus ICA. All of the above elements were considered, including an ongoing application for a grant from Imagine the Day.

Page 1

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2024

DECISION TO CLOSE (continued)

February 2024

The trustees and SLT meet and make a decision to close. No staff, stakeholders or students are informed at this point due to the first consideration being informing and taking advice from our validating University, University of West London.

We recognised the need to move swiftly on contacting the relevant people and bodies due to our decision essentially meaning that recruitment for September 2024 was no longer viable.

Nexus building valued by Holt Commercial.

First look at redundancies including cost, implication and legal obligations.

March 2024

Trustees continue to meet with each other and the SLT for prayer and discussion throughout the month.

12[th] March 2024 – UWL informed of our decision and their advice and comments sought. A face to face was set for Thursday 28[th] March in London.

19[th] March 2024 – staff meeting held where staff were brought into the current thinking of SLT and trustees, and the upcoming meeting with UWL. Costings and financial implications.

28[th] March 2024 - meeting held with UWL in London. An option was presented to us of a ‘UWL take over’ in order for Nexus to continue. Decision to reject the offer from UWL and proceed with closure was formalised at the Trustees Meeting 28[th ] March 2024. Sections from the minutes of the meeting follow:

After careful consideration, detailed discussion and fervent prayer the Board of Trustees have made the decision to close Nexus Institute of Creative Arts.

At the start of 2024, the Senior Leadership Team presented a financial overview and projection into 2024/25 based on the current number of students and our projected intake for 2024/25. Looking at these figures it became clear that Nexus would be financially unsustainable, even if recent fundraising applications and future fundraising efforts were to return a positive result.

While much work needs to be done in the coming days and weeks, our resolution on this day is that we agree that Nexus Institute of Creative Arts is no longer financially viable and so we commit to engaging in the necessary processes to bring it to a close.

We acknowledge that the trustees are legally responsible for overseeing this process as custodians of this resource and as such would like to remain in close contact with the SLT regarding any decisions, communications or actions to be taken in regard to plans for the future. The trustees also acknowledged their part in supporting and upholding the SLT and staff and agreed to work and help to see this process through.

Advice sought from our HR Partner Peninsula regarding redundancies.

Date set to inform students and stakeholders (29[th] April 2024) and preparations made for instant sharing across our communication channels.

Closure Timeline of Actions

March 2024

Decision to close formalised University of West London informed Advice sought from Peninsula our HR partners

Trustees engage in research of legal requirements from the Charity Commission and Companies House

Page 1

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2024

DECISION TO CLOSE (continued)

April 2024

Students and stakeholders informed of closure Social media announcements made Building listed for sale with Holt Commercial Trustees and SLT explore private buyer options Solicitor appointed

August 2024

A buyer makes an offer on the building and Heads of Terms are drawn up

September 2024

Trustees meet early September to formally accept the offer The buyer withdraws his offer in late September Offer made from Nexus to 2[nd] interested party who accept.

ACHIEVEMENT AND PERFORMANCE

Student Numbers for 2023/24

In 2023/24 there were 51 students across three programmes of study, a drop from last year's numbers (72).

Total BA (Hons) Popular
Music & Worship		 BA (Hons) Event
Technology		 BA (Hons)
Songwriting
Level 4
Level 5
Level 6		 14
20
17		 7
17
13		 3
2
-		 4
1
4

Progression/Continuation

In total we had 3 withdrawals/deferrals, 1 from level 4, 1 from level 5 and 1 from level 6. Of the 4 students originally enrolled on the one-year Cert HE, 2 converted to the full degree and progressed to level 5.

Total BA (Hons) Popular
Music & Worship		 BA (Hons) Event
Technology		 BA (Hons)
Songwriting
Level 4
Level 5		 12
19		 5
17		 3
1		 4
1

Page 1

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES

for the year ended 31 August 2024

ACHIEVEMENT AND PERFORMANCE (continued)

Student Attainment

Recruitment

Since the decision was made to close Nexus ICA, recruitment for Level 4 entry in 2024 was also closed. Applicants and interested parties were notified and we spent some time answering the queries or worries of those who had hoped to come.

Page 2

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2024

ACHIEVEMENT AND PERFORMANCE (continued)

Communications

Social media followers

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

2023/24 2022/23 Growth
Facebook 4,124 4,118 0.1% increase
Instagram 2,855 2,844 0.4% increase

Page 2

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2024

ACHIEVEMENT AND PERFORMANCE (continued)

Student Experience

Student experience in the latter half of the 2023/24 year has been targeted to ensure stability in a phase of completion. This included a small grant for Ukrainian students studying with us which was set up from money given to Nexus ICA specifically for that purpose. In a addition a new ‘Cost of Living’ Grant was set up to help students whose personal finances represented hardship that was making it difficult for them to continue to study. Money given from friends and partners of Nexus ICA was specifically set apart for this purpose. Students apply in a similar way to the Hardship Fund at our validating University and the trustees make the final decision on allocation.

Fundraising and Additional Streams of Income

Rag Week

Rag Week was largely very successful, with around 70% of the student body involved.

We completed a 100km walk down the east coast of England (Norfolk and Suffolk) and raised £4,588.30 for Betel UK.

Staff and student moral was high for the whole week and the community dynamic was strong, helping to lead us into the year that was to follow.

Fundraising has continued to be a struggle, with factors such as the cost of living crisis, reduction in charity giving, lower student numbers and reduced capacity due to work all contributing. Despite this the amount raised for Betel was significant enough to make a difference to the charity.

Page 3

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2024

Fees

Fees were increased to £8,000 for 1st year students and remained at £7,500 for 2nd and 3rd year students.

Staff And Student Development

While no outside CPD was undertaken by staff, the SLT reported that due to the closure announcement there was a significant process of upskilling and growing in areas relating to HR in order to navigate redundancy processes and lead the staff through a period of change.

Creative Arts

Nexus Christmas and End of Year Shows

The Christmas Show of 2023 was a gospel showcase of cover and original festive songs. A lively performance which enabled strong participation across the student body.

End of Year Show 2024 showcased the work and effort that had taken place during the year, with participation from both staff and students.

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

Updates to Facility

With the lower number of students, there was less of a strain on use of the library, but due to the desire to be writing and making more music as an institute, we saw the need for another studio space. Therefore, we made space in the library to have a desk with speakers and an interface, alongside a sofa to give it a studio feel for the students.

In addition:

Remodelling of pipes underneath the staff kitchen sinks; separation of single waste pipe to two in order to help with waste flow.

Repair and remodelling of pipe work to one of the downstairs toilets.

A skip was hired for a proportion of the summer break in 2024 to begin the process of clearing out the building.

Page 3

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2024

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 2024 general funds were £538,637 (2023: £669,766) and restricted funds were £6,154 (2023: £6,438).

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.

Page 5

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2024

FUTURE PLANS

Having made the decision to enter this final phase of completion, we are choosing to remain diligent to the end. With the few students that will see out this phase, our commitment to excellent education and student support now needs to double to ensure that we do not simply fade away.

Opportunities for reflection have already presented themselves and will no doubt continue and increase as this completion era comes to a climax. Energy is being put into recording significant events of the past and ensuring that the legacy of Nexus ICA will continue through its Alumni and current students. Although our future contains the closure of Nexus ICA, our strength will not fade.

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 7. 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. This year has seen us making some weighty decisions about the future of Nexus so we have been diligent in communication, calling extra meetings when required. Aside from formal meetings, we have been meeting to pray, using Teams and Teams videos as a method for quick communication or urgent decisions and have upgraded our connection with the SLT. This has all helped to provide a secure and smooth transition into the next phase.

Induction and training of new trustees

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

Key management remuneration

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

Leadership - Notable Developments

The Senior Leadership Team have done a fantastic job of leading Nexus through what could have been a very unsettling time. Every detail has been covered and communicated well to the trustees. They have maintained a strong and supportive environment with staff and students, and been available for questions and discussion.

Health and Safety

Risk assessments, facility management, policies and protocols continue to be under constant review.

Page 6

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2024

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

Trustees

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

Auditors

HB&O Ltd 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

Advisers to the Board

Jane Moffat (Safeguarding) Jenny Cavendish (Mental Health)

Senior Leadership Team

Matthew Cossey (Principal) Matthew Donald (Assistant Principal)

Page 7

NEXUS INSTITUTE OF CREATIVE ARTS

REPORT OF THE TRUSTEES for the year ended 31 August 2024

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

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 6 May 2025 and signed on its behalf by:

K S Silber - Trustee

Page 8

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 2024 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:

Page 9

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 HB&O Ltd 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

6 May 2025

Page 10

NEXUS INSTITUTE OF CREATIVE ARTS

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 August 2024

Unrestricted
funds
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
3
38,179
Charitable activities
5
Tuition and performance
446,570
Investment income
4
-
Total
484,749
EXPENDITURE ON
Charitable activities
6
Tuition and performance
615,878
NET INCOME/(EXPENDITURE)
(131,129)
RECONCILIATION OF FUNDS
Total funds brought forward
669,766
TOTAL FUNDS CARRIED FORWARD
**538,637 **		 Restricted
funds
£
2,361
-
105
2,466
2,750
(284)
6,438
**6,154 **		 2024
Total
funds
£
40,540
446,570
105
487,215
618,628
(131,413)
676,204
**544,791 **		 2023
Total
funds
£
96,248
528,878
74
625,200
637,261
(12,061)
688,265
676,204

The notes form part of these financial statements

Page 11

NEXUS INSTITUTE OF CREATIVE ARTS

BALANCE SHEET 31 August 2024

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
£
634,125
13,743
185,655
199,398
(145,576)
53,822
687,947
(149,310)
**538,637 **		 Restricted
funds
£
-
-
6,154
6,154
-
6,154
6,154
-
**6,154 **		 2024
Total
funds
£
634,125
13,743
191,809
205,552
(145,576)
59,976
694,101
(149,310)
544,791
538,637
6,154
**544,791 **		 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

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2024.

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

continued...

Page 12

NEXUS INSTITUTE OF CREATIVE ARTS

BALANCE SHEET - continued 31 August 2024

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 6 May 2025 and were signed on its behalf by:

K S Silber - Trustee

The notes form part of these financial statements

Page 13

NEXUS INSTITUTE OF CREATIVE ARTS

CASH FLOW STATEMENT
for the year ended 31 August 2024
2024
Notes
£
Cash flows from operating activities
Cash generated from operations
1
(87,818)
Interest paid
(15,278)
Net cash used in operating activities
(103,096)
Cash flows from investing activities
Purchase of tangible fixed assets
(7,870)
Sale of tangible fixed assets
4,195
Interest received
105
Net cash (used in)/provided by investing activities
(3,570)
Cash flows from financing activities
New loans in year
100,000
Loan repayments in year
(17,870)
Net cash provided by/(used in) financing activities
82,130
Change in cash and cash equivalents in
the reporting period
(24,536)
Cash and cash equivalents at the
beginning of the reporting period
216,345
Cash and cash equivalents at the end of
the reporting period
191,809		 2023
£
11,305
(12,061)
(756)
-
5,647
74
5,721
-
(19,170)
(19,170)
(14,205)
230,550
216,345

The notes form part of these financial statements

Page 14

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE CASH FLOW STATEMENT for the year ended 31 August 2024

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

Net expenditure for the reporting period (as per the Statement of
Financial Activities)
Adjustments for:
Depreciation charges
Loss/(profit) on disposal of fixed assets
Interest received
Interest paid
Decrease in debtors
Decrease in creditors
Net cash (used in)/provided by operations		 2024
£
(131,413)
19,529
1,003
(105)
15,278
26,591
(18,701)
**(87,818) **		 2023
£
(12,061)
19,501
(5,647)
(74)
12,061
35,678
(38,153)
11,305

2. ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.9.23 Cash flow At 31.8.24
£ £ £
Net cash
Cash at bank and in hand 216,345 (24,536) 191,809
216,345 **(24,536) ** 191,809
Debt
Debts falling due within 1 year (18,032) (101,466) (119,498)
Debts falling due after 1 year (168,647) **19,337 ** (149,310)
(186,679) **(82,129) ** (268,808)
Total 29,666 **(106,665) ** (76,999)

The notes form part of these financial statements

Page 15

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2024

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 7 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.

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

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.

Page 16

continued...

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2024

2. ACCOUNTING POLICIES - continued

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.

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 7. 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

4.

5.

Donations and grants
Gift aid
INVESTMENT INCOME
Deposit account interest
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		 2024
£
36,266
4,274
40,540
2024
£
105
2024
£
395,352
6,795
32,074
11,197
1,152
446,570		 2023
£
87,629
8,619
96,248
2023
£
74
2023
£
479,177
1,600
31,860
8,622
7,619
528,878

continued...

Page 17

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2024

6. CHARITABLE ACTIVITIES COSTS

Direct
Costs (see
note 7)
£
Tuition and performance
306,650
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
269,475
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
Bad debts
Carried forward		 Grant
funding of
activities
Support
(see note
costs (see
8)
note 9)
£
£
2,750
309,228
2024
£
179,947
3,953
4,321
-
9,692
41,162
67,500
75
306,650
2024
£
2,750
Governance
Finance
costs
£
£
17,555
22,198
2024
Tuition
and
performance
£
167,249
8,157
4,103
6,222
5,103
15,462
241
907
17,416
9,623
234,483		 Totals
£
618,628
2023
£
180,929
1,457
1,250
3,197
10,157
39,815
90,000
84
326,889
2023
£
1,500
Totals
£
309,228
2023
Total
activities
£
180,685
8,446
3,825
7,493
4,949
14,383
787
326
21,441
-
242,335

continued...

Page 18

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2024

9. SUPPORT COSTS - continued

2024
Tuition
and
performance
£
Brought forward
234,483
Child protection costs
615
Repairs, maintenance and security
13,628
Subscriptions
1,220
Depreciation of tangible fixed assets
19,529
Finance charges
1,274
Loss/(profit) on disposal of tangible fixed
assets
1,003
Interest payable and similar charges
15,278
Auditors' remuneration
7,440
Legal fees
5,552
Accountancy fees
9,206
309,228		 2023
Total
activities
£
242,335
497
15,325
1,943
19,501
1,924
(5,647)
12,061
6,240
5,487
9,206
308,872

10. NET INCOME/(EXPENDITURE)

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

Auditors' remuneration
Depreciation - owned assets
(Deficit)/surplus on disposal of fixed assets		 2024
£
7,440
19,529
1,003		 2023
£
6,240
19,501
(5,647)

11. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2024 nor for the year ended 31 August 2023.

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 £83,054 (2023: £78,663).

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2024 nor for the year ended 31 August 2023.

continued...

Page 19

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2024

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
80,500
Charitable activities
Tuition and performance
528,878
Investment income
-
Total
609,378
EXPENDITURE ON
Charitable activities
Tuition and performance
624,561
NET INCOME/(EXPENDITURE)
(15,183)
Transfers between funds
(630)
Net movement in funds
(15,813)
RECONCILIATION OF FUNDS
Total funds brought forward
685,579
TOTAL FUNDS CARRIED FORWARD
669,766		 2024
£
335,755
15,746
7,955
359,456
2024
8
15
23
Restricted
funds
£
15,748
-
74
15,822
12,700
3,122
630
3,752
2,686
6,438		 2023
£
348,417
17,473
7,995
373,885
2023
9
16
25
Total
funds
£
96,248
528,878
74
625,200
637,261
(12,061)
-
(12,061)
688,265
676,204

continued...

Page 20

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2024

14. TANGIBLE FIXED ASSETS

Improvements
Freehold
to
property
property
£
£
COST
At 1 September 2023
650,000
128,514
Additions
-
-
Disposals
-
(655)
At 31 August 2024
650,000
127,859
DEPRECIATION
At 1 September 2023
78,000
50,544
Charge for year
13,000
5,114
Eliminated on disposal
-
(100)
At 31 August 2024
91,000
55,558
NET BOOK VALUE
At 31 August 2024
559,000
72,301
At 31 August 2023
572,000
77,970
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)
Other loans (see note 18)
Trade creditors
Social security and other taxes
Other creditors
Accruals
Deferred income		 Equipment
£
55,035
7,870
(30,277)
32,628
54,023
1,415
(25,634)
29,804
2,824
1,012
2024
£
9,850
(9,623)
1,472
12,044
13,743
2024
£
19,498
100,000
4,940
-
4,665
8,473
8,000
145,576		 Totals
£
833,549
7,870
(30,932)
810,487
182,567
19,529
(25,734)
176,362
634,125
650,982
2023
£
22,627
-
5,679
12,028
40,334
2023
£
18,032
-
7,229
4,648
3,886
7,815
21,200
62,810

continued...

Page 21

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2024

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued

Deferred income comprises training and registration fees that have been
2024
received in advance of the forthcoming academic year:
£
Balance as at 1 September 2023
21,200
Amount released to income earned from charitable activities
(21,200)
Amount deferred in year
8,000
8,000
Balance as at 31 August 2024
17.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024
£
Bank loans (see note 18)
149,310
18.
LOANS
An analysis of the maturity of loans is given below:
2024
£
Amounts falling due within one year on demand:
Bank loans
19,498
Other loans
100,000
119,498
Amounts falling between one and two years:
Bank loans - 1-2 years
20,425
Amounts falling due between two and five years:
Bank loans - 2-5 years
55,974
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans more than 5 years
72,911		 2023
£
39,750
(39,750)
21,200
21,200
2023
£
168,647
2023
£
18,032
-
18,032
19,369
55,860
93,418

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.

Other loans comprise an interest free loan repayable in the next academic year.

continued...

Page 22

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2024

19. LEASING AGREEMENTS

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

Within one year
Between one and five years		 2024
£
5,329
9,769
15,098		 2023
£
3,984
-
3,984

20. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Property improvement grants
Restricted funds
Bursary fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
Property improvement grants
Restricted funds
Bursary fund
TOTAL FUNDS		 At 1.9.23
£
647,573
22,193
669,766
6,438
676,204
Incoming
resources
£
484,749
-
484,749
2,466
487,215		 Net
movement
At
in funds
31.8.24
£
£
(127,829)
519,744
(3,300)
18,893
(131,129)
538,637
(284)
6,154
(131,413)
544,791
Resources
Movement
expended
in funds
£
£
(612,578)
(127,829)
(3,300)
(3,300)
(615,878)
(131,129)
(2,750)
(284)
(618,628)
**(131,413) **

continued...

Page 23

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2024

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 1.9.22
£
660,086
25,493
685,579
1,200
1,486
2,686
688,265		 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

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

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)

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.

continued...

Page 24

NEXUS INSTITUTE OF CREATIVE ARTS

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2024

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 £7,955 (2023: £7,995).

Included within creditors is a balance due to pension providers of £1,624 (2023: £1,605) 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 £8,820 (2023: £14,058).

23. POST BALANCE SHEET EVENTS

In January 2025 the charity sold the freehold property, Astoria House, for £800,000.

Page 25

NEXUS INSTITUTE OF CREATIVE ARTS

DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 August 2024

INCOME AND ENDOWMENTS
Donations and legacies
Donations and grants
Gift aid
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
Telephone
Carried forward		 2024
£
36,266
4,274
40,540
105
395,352
6,795
32,074
11,197
1,152
446,570
487,215
168,506
7,589
3,852
3,953
4,321
-
9,692
41,162
67,500
75
2,750
309,400
167,249
8,157
4,103
6,222
5,103
15,462
241
206,537		 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
787
220,568

This page does not form part of the statutory financial statements

Page 26

NEXUS INSTITUTE OF CREATIVE ARTS

DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 August 2024

Management
Brought forward
Printing, postage and stationery
Advertising
Bad debts
Child protection costs
Repairs, maintenance and security
Subscriptions
Depreciation of tangible fixed assets
Finance
Finance charges
Loss/(profit) on disposal of tangible fixed assets
Bank loan interest
Governance costs
Auditors' remuneration
Legal fees
Accountancy fees
Total resources expended
Net expenditure		 2024
£
206,537
907
17,416
9,623
615
13,628
1,220
19,529
269,475
1,274
1,003
15,278
17,555
7,440
5,552
9,206
22,198
618,628
**(131,413) **		 2023
£
220,568
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)

This page does not form part of the statutory financial statements

Page 27